Plans to develop an aviation industrial park were announced at City of Powell River’s regular council meeting on August 16.
Throughout his second term, mayor Dave Formosa, along with councillors and economic development staff, has been working on airport development and building a small aviation industry. This opportunity is the closest the city has come.
“We’ve been keeping this under wraps for a year and a half and quite frankly we’re optimistic we’ll see small aircraft manufactured here,” said Formosa.
The city has accepted an offer to enter into a 99-year lease with Gaoshi Holdings (Canada) Limited on a 4.6-hectare parcel of land within the city-owned Powell River Airport for $600,000.
The deal also includes a 10-year tax revitalization bylaw “to help him build his industry,” said Formosa.
The tax structure would see Gaoshi pay nothing in the first year and then graduate each year by 10 per cent to 100 per cent after 10 years.
Formosa said he believes the public will accept the tax break.
“There’s been nobody knocking on our door,” said Formosa. “There’s been no interest. We’ve tried and tried to get someone here to do development.”
Formosa said he and council are trying to create an aviation industry.
According to the announcement from city manager of economic development and communications Scott Randolph, Gaoshi intends to develop an aviation industrial park, which will include maintenance and repair operations, accredited pilot and maintenance technician programs and possibly aviation manufacturing of small aircraft.
“It's huge; it's big,” said Randolph. “Bottom line is this helps us take a further step in diversifying our economy. It also secures an anchor tenant at the airport, which gives us a business case for further development there.”
While the city has accepted the offer, the deal is not done, yet.
A lease and tax revitalization bylaw are being drafted and will be brought back to council for review and approval.
“Now it’s just a matter of fulfilling our end of the deal and doing the revitalization bylaw,” said Randolph.
According to Randolph’s report, the offer includes a commitment by Gaoshi to begin construction within two years and obtain occupancy permits by the fourth year of the lease.
If either deadline is not met, the city will have the option to buy the lease out at the original price.
