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City of Quesnel CITY OF QUESNEL AGENDA QUESNEL MUNICIPAL COUNCIL SPECIAL OPEN COUNCIL MEETING NO. 8 COUNCIL CHAMBERS - CITY HALL April 30, 2013 6:00 P.M. Page A. CALL TO ORDER: MAYOR SJOSTROM B. APPROVAL OF AGENDA (Late Items): C. DELEGATION 2 - 51 1) All-West Crane & Rigging Ltd. - Proposed Airport Development - Jerry and Barb van Halderen, Owners/Operators [Addenda] D. ADJOURNMENT: Page 1 of 51 2538 Bouchie Lake Road, Quesnel, B.C. V2J 7C7 Ph. (250) 249-5151 Fax (250) 249-5101 April 25, 2013 City of Quesnel 410 Kinchant St Quesnel, BC Dear Mayor Sjostrom & Council Please find attached our completed Feasibility Study as provided by SNC Lavalin. We find this study to be comprehensive and includes recommendations for the furtherance of this project. Timing for this project is critical, as we wish to have the building and improvements “substantially” completed for the 2013 Airshow weekend Aug. 3rd and 4th. This will provide maximum exposure for the new facility, as well the airport as a whole. This window of opportunity is further enhanced with the presence of a television film crew that will be filming the entire event for a new television series set to air this coming fall or spring. The tremendous benefit of this exposure will be lost if a common goal is not pursued. With the attendance of our Canadian Forces Snowbirds, and F-18 Jet Demo team at this year’s show, it is clear to see our airport and community will be in the spotlight. As stated during preliminary meetings, this project is conditional on expansion of the current apron (approx. 150 ft. X 350 ft.) in order to allow adequate access to the proposed hangar complex. We are suggesting the apron to be increased by an additional 150 ft. X 150 ft. which is in line with a phased approach to the apron expansion plan drafted for the city in recent years. This expansion would not only allow for access to the new hangar complex, but also additional manoeuvring and parking space needed with increased usage. At a minimum, a 75 ft. X 150 ft. extension would be required. We have acquired budgetary quotations for an apron expansion for both asphalt and concrete surfaces. Ground preparation and surfacing will cost in the range of $250,000 to $300,000 for an apron with a PLR rating (pavement load rating) of 6. This load rating has been suggested by SNC Lavalin to be more than adequate for current and future aircraft types utilizing our airport. It is our understanding the current apron has a PLR of 10, although it is not confirmed if the asphalt portion carries the same rating. We suggest a All-West Crane & Rigging Ltd. - Proposed Airport Development... Page 2 of 51 P a g e | 2 core sample could be taken from the current asphalt portion to determine the actual load rating for that portion. The apron expansion can either then be matched to that load rating or one specified at that time. We would recommend SNC Lavalin as the engineering firm to oversee the expansion as they are already familiar with this development proposal and were directly involved with some 20 airport apron/taxi/runway improvements last year in BC alone. The budgetary quotations do not include drainage or electrical at this point. The ground and apron expansion is higher in elevation than the surrounding area and therefore drainage improvement costs should be minimal if required. Additional apron marker lights will be required, but again this should be a simple extension of the current lighting in place and therefore minimal as well. If the city is in favour of this proposal, we suggest a budget be allocated for apron expansion with final terms to be worked out in the near future. Furthermore, NDI funding is available for infrastructure improvements covering up to 70% of project costs to a maximum contribution of $250,000. This can leverage a $107,000 investment by the City to a $357,000 project budget easily allowing for the proposed expansion. The report produced by SNC Lavalin suggests this project is not without risk, and will require effort to promote and secure tenants for the facility, and therefore recommends provisions to allow “non-aviation” related businesses or uses at this facility if needed. This would be conditional so as not to interfere with day to day operation, safety, or appearance of the current airport. All-West Crane & Rigging is in agreement with these conclusions, but is of the opinion that with promotion, there are sufficient tenant and usage opportunities for this complex to be not only viable, but also act as a catalyst for further economic development at the airport. It is for these reasons All-West is willing to make investment in this project. In summary, this project is conditional upon expansion of the current apron and other recommendations outlined in section 5.2 of the report. We recognize the timeline is ambitious, but feel the benefit derived by the opportunities stated above, outweigh the effort required to meet the objective. All-West Crane is committed to this project and looks forward to working with, and or partnering with the City of Quesnel. Sincerely, Jerry van Halderen All-West Crane & Rigging Ltd. All-West Crane & Rigging Ltd. - Proposed Airport Development... Page 3 of 51 SNC-Lavalin Inc. Transportation Division, Airport Group 1800-1075 W Georgia St Vancouver, BC, V6E 3C9 Telephone: (604) 662-3555 Facsimile: (604) 662-7688 April 25, 2013 Jerry and Barb van Halderen All-West Crane and Rigging Ltd. 1891 Campbell Crescent Quesnel, BC V2J 5Z8 Re: QUESNEL HANGAR FEASIBILITY STUDY Thank you for selecting SNC-Lavalin as a partner in completing a feasibility study for a multi-use hangar at Quesnel Regional Airport. We have enjoyed completing the study and trust you will find the information useful in your deliberations. As outlined in the report this feasibility analysis is based on information gathered through interviews as well as official Transport Canada forecasts. We have also provided comparative information for similar multi-use hangar projects at other airports as well as providing example hangar development scenarios at similar airports. We wish you success in working with Quesnel Regional Airport and with the City of Quesnel in completing the final business plan for this project. Again thank you for the opportunity and let us know if you require any further information or assistance. Sincerely, Mark Duncan Senior Advisor Airport Group SNC-Lavalin Inc. All-West Crane & Rigging Ltd. - Proposed Airport Development... Page 4 of 51 DRAFT REPORT QUESNEL HANGAR FEASIBILITY Table of Contents 1.0 Executive Summary .................................................................................................................................... 2 2.0 Background ................................................................................................................................................ 4 2.1 SNC-Lavalin .................................................................................................................................................... 4 2.2 Project Background ........................................................................................................................................ 4 3.0 Hangar Alternatives .................................................................................................................................... 5 3.1 Example Hangars and Development Examples.............................................................................................. 5 3.2 Example Hangar costs.................................................................................................................................... 6 3.3 Example Hangar Lease Rates ......................................................................................................................... 7 4.0 Hangar Feasibility Analysis ......................................................................................................................... 8 4.1 Hangar Project Scope ..................................................................................................................................... 8 4.2 Hangar Demand Analysis ............................................................................................................................... 9 4.3 Demand Forecasts and Revenue Projections ............................................................................................... 20 4.4 Meeting City Objectives ............................................................................................................................... 24 4.5 Meeting Airport Objectives .......................................................................................................................... 25 5.0 Recommendations and Findings ............................................................................................................... 26 5.1 Hangar Construction .................................................................................................................................... 26 5.2 City and Airport Requirements ..................................................................................................................... 26 5.3 Economic Considerations ............................................................................................................................. 27 6.0 Next Steps ................................................................................................................................................ 28 All-West Crane & Rigging Ltd. - Proposed Airport Development...Page
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