An initiative is underway to supply commercial aviation fuel at Powell River Airport.
At the City of Powell River Council meeting on April 2, director of properties, development and communications Scott Randolph said the city entered into a three-year lease agreement with J3 Holding Corp on August 1, 2017, for property at Powell River Airport that includes a hangar structure. The lease expires on July 31, 2020.
“In late 2019 the tenant came to staff about negotiating a new lease agreement for a longer term, in trade for investing in a commercial aviation fuel service,” said Randolph. “The city’s airport has been operating for a number of years without commercial aviation fuel services. It has been identified in the draft airport master plan as a service that should be reinstituted to support the future viability of the operation. Staff consider the proposal to provide a longer-term lease to support an investment in establishing the service and operating the service a fair trade-off.”
Randolph said the draft lease provides a 10-year term beginning May 1, 2020, and terminating April 30, 2030, and provides the option of four renewal terms at the same length if terms of the agreement are not broken.
He said other than changes in term and the lease area being resurveyed, the lease is virtually the same as the previous agreement. According to a report by Randolph to council, the lease rate per year amounts to $2,240.04 per year and the tenant is responsible for all taxes, utilities and insurances.
“The city leases the land to the tenant. The tenant owns the facilities,” said Randolph. “He owns the building and whatever assets that go along with it and we own the land.”
Randolph said the city will continue to generate revenue from the lease and the addition of fuel services at the airport will make it a more attractive stop for private aircraft operators and generate more visits, it is hoped.
Mayor Dave Formosa said the airport has been without fuel for a long time and it has been a black eye on this community. He said when city representatives go to municipal government conventions, many times there are booths from local airports, and he’s heard questions on a number of occasions about what is going on in Powell River. He’s heard comments such as Powell River is a great city but there is no fuel.
“It’s right in the pilot catalogue that tells them where airports are and where fuel is, et cetera,” said Formosa. “This is good news. We’ve been trying to do this for years. The gentleman is doing this as a service for the community and probably so he can fuel his own aircraft. We thank him and I support giving a longer-term lease so he has the opportunity to pay some of this back.”
Council gave unanimous consent to bring the issue to the April 9 council meeting to vote on the initiative.
