CITY OF

ADMINISTRATIVE REPORT

TO: City Manager DATE:

FROM: Brian Glavin, FILE NO: Manager, Economic Development, Land & Web Management

SUBJECT: Airport Commission Direction

1. RECOMMENDATION That the Mayor send a letter to the Airport Commission advising them of City priorities for the airport.

2. BACKGROUND

Airport Owned Land (NE-28-71-6-6): The Airport Commission purchased this quarter section to facilitate runway expansion and its future eastern access. The quarter section to the South of this parcel is currently serviced and houses a number of businesses including the Petro Truck Stop, Service Canada, CDN Controls, Hampton Hotel (under construction), among others. To the north of this parcel is the Westgreen Outline Plan area that is intended to be a mix of Commercial Arterial and General Industrial zoning. The quarter section is also designated to house a portion of the 116 St. sewer trunk that will service development along the 116 St. corridor.

Air Freight: The region’s current capacity for air freight shipments to and from Grande Prairie is very limited. Currently, parcels up to 300 lbs can be shipped to Grande Prairie through WestJet, however WestJet does not offer outbound shipment service from Grande Prairie. Air Canada allows for next day shipments of up to 250 lbs for both inbound and outbound customers. No other scheduled air freight options currently exist. For packages larger than 300 lbs, deliveries require a minimum to 2-3 days transit time, trucked to/from Edmonton.

Passenger Service: There are currently 15 scheduled flights offered at the Grande Prairie Airport. Passenger service to and from Grande Prairie is limited to nonstop flights between Edmonton and Calgary. The lack of nonstop flights from Canada’s largest international airports increases the cost of doing business in and outside of Grande Prairie by requiring travelers to incur additional costs of hotels, rental cars, meals, lost productivity and other associated travel costs. Increased access to national and international markets would increase opportunities for businesses and open up new opportunities for leisure for residents.

3. ALTERNATIVES • Accept the report for information • Amend the recommendation • Refer the report back to Administration for amendment • Take no action

4. ANALYSIS

1. Legislative Responsibilities None at this time. 2. Strategic Implications a. Airport Owned Land Developing the airport land would allow for contiguous development along the 116 th Street corridor and reduce costs for developers further upstream. The development of the land could be part of a broader strategy for developing opportunities for air freight and other logistics services. b. Air Freight Air freight is the fastest and most secure method of shipping. Access to air freight gives companies the opportunity to have critical packages shipped or received within 24 hours of the need arising. The current offerings significantly limit the weight and dimensions of packages. c. Passenger Service Increased passenger service is a benefit for both business and leisure travelers. Nonstop flights to major centres reduces the burden of travel on both families and investors. A significant amount of Grande Prairie residents have relocated to Grande Prairie from outside of the province, often from Eastern Canada and Lower Mainland . Toronto and Vancouver act as the major hubs that connect those residents to their families. Toronto and Vancouver are also home to many Grande Prairie investors. It is currently very challenging to complete a day trip from either city, which leads to higher costs and less convenience for current and prospective investors. 3. Financial Considerations None at this time. 4. Staff Implications None at this time. 5. Community Impact 1. Environmental Impact None at this time. 2. Economic Impact Developing airport land and enhancing air service will create more opportunities for residents, businesses and investors. 3. Social Impact Increasing the region’s capacity for air travel will make the city a more attractive place to live and do business. 4. Infrastructure Impact The development of the airport owned land would contribute the City’s asset base and require typical services such as snow removal, road maintenance, etc. 5. Governance Impact This report was written from an economic perspective and did not investigate governance impacts. 6. Communication Strategy Deliver letter to the Chair of the Airport Commission 5. SUMMARY/CONCLUSION

The City wishes to see the Grande Prairie Airport build on its successes and strive to provide enhanced service offerings to its current and prospective customers through the development of their recently purchased quarter section, expanded air freight options and new non-stop flights to Toronto and Vancouver.