Page 1 TO: Chair and Members Planning and Economic Development Committee FROM

TO: Chair and Members Planning and Economic Development Committee FROM: Samantha Hastings Commissioner of Planning and Economic Development DATE: November 19, 2015 SUBJECT: Muskoka Airport - Economic Impact Study and Long Term Plan REPORT NO: PED-14-2015-3 _______________________________________________________________________________ RECOMMENDATION This report is provided for information. ORIGIN At the Planning and Economic Development Committee meeting on March 25, 2015, Staff Report No. PED-5-2015-3 was presented to the Committee with the following recommendation: “THAT the firms of Explorer Solutions Limited and Tetra Tech EBA Limited BE RETAINED to prepare an Economic Impact Assessment and Long Term Plan for the Muskoka Airport, at a cost not to exceed $54,715, excluding HST.” The Committee deferred a decision on the matter and requested that staff prepare a report for Committee’s consideration at the November, 2015 Committee meeting to outline options regarding how to proceed with the two projects and to ensure that appropriate funds would be presented during the 2016 budget deliberations. ANALYSIS In response to the issuance of Requests for Proposals for an Economic Impact Study and a Long Term Plan for the Muskoka Airport, three submissions were received. The firms of Explorer Solutions Limited and Tetra Tech EBA Limited made a strong combined submission that demonstrated extensive experience with the preparation of these types of documents for a variety of airports across Canada, including Brooks Regional Airport in Alberta, the Campbell River Airport on Vancouver Island, and the Greater Sudbury Airport and the Stanhope Airport in Ontario. They have also worked with a number of other airports on capital projects (terminal building expansions, runway expansions, zoning regulations, etc.). As a result, staff recommended that Explorer Solutions Limited and Tetra Tech EBA Limited be selected to complete both projects. Page 1 Although our research concluded that consultants have generally undertaken these projects for other airports, since the Committee meeting in March, staff have considered alternative options to complete such a study. The first option includes completion of the study by District staff. However, Committee members have previously expressed concern about the methodology followed in the 2009 Economic Impact Study as well as a desire to have a new study undertaken by a firm that specializes in this field. In addition, current levels of staffing are insufficient to complete such an extensive study, including discussions with other airports across Canada and engagement with Muskoka Airport business and other community stakeholders. Another option includes working with a group of college or university students to undertake this project. However, a significant amount of staff time would still be required to coordinate such a study. In addition, students would likely not have the variety and depth of expertise and experience required to address the complex nature of this project, or the resources to conduct appropriate community engagement. This, combined with the controversial nature of this topic in the past, makes a student project an unsuitable option, in staff’s opinion. A further option considered includes the formation of a working group of community members to undertake a study. This could potentially include a group of community volunteers with experience and knowledge in matters such as airport management and development, the airline and aviation industry, tourism and economic development, business development, etc. Again, this initiative will require strong project management skills, an unbiased perspective and extensive airport long term planning experience to navigate the variety of strong opinions that will likely emerge through this project. Staff would also not recommend this option. It is worth noting that since Committee last considered this matter, significant interest has been expressed in the Muskoka Airport by a variety of business interests, all of which would require significant investment in the airport by the District. For example, attracting a flight school will likely require upgrading the grass runway. Development on lands across Gravenhurst Parkway may require relocation of this road and the construction of additional taxiways, and any commercial passenger service will require upgrades to the terminal building in order to accommodate passengers and the related security and baggage handling facilities. Whatever future path is identified in a long term plan, in order to achieve continued success at the airport, political and community support will be required to drive a collective, focused effort. Staff continue to recommend that in order to ensure that Committee and Council receive independent, unbiased and credible advice from a team of experts in the areas of airport management, airport development, the airline industry, and tourism and economic development, and to support any future capital funding applications, a qualified consultant with a broad range of experience and expertise is required. Staff have contacted the consultant recommended previously, and they have confirmed that, providing the scope of work remains the same, the previously quoted price will be honoured in 2016. As a final note, staff advise that no responses were received to the Request for Expressions of Interest for the two parcels of land at the north end of the airport. The existing Long Term Plan Terms of Reference already include a requirement to outline potential uses for these lands so no further changes are required at this time. Page 2 FINANCIAL CONSIDERATIONS Funds in the amount of $60,000 have been included in the Draft 2016 Tax Supported Capital Budget and Forecast for the completion of the Economic Impact Study and Long Term Plan (Project 360022) for consideration during the budget process. Staff will also investigate potential funding opportunities to assist with the completion of this study, including the Tourism Development Fund through the Ministry of Tourism, Culture and Sport, and other funds through agencies such as FedNor and the EODF. The completion of a long term plan for the airport will also facilitate the preparation of an asset management plan and the development of a more comprehensive capital budget and forecast. COMMUNICATIONS Engagement with key stakeholders, as described in the previous staff report and in the project Terms of Reference, will be an important component of this project. STRATEGIC PRIORITIES This initiative would fulfill, in part, the following District of Muskoka’s Strategic Priority: “3. … Develop the Muskoka Airport as an economic development tool that supports the social and business needs of Muskoka...” Respectfully submitted, Original signed by Original signed by Samantha Hastings, MCIP, RPP Michael Duben Commissioner of Planning Chief Administrative Officer and Economic Development S:\AIRPORT\Studies & Info\2015 EIS and Long Term Plan\EIS and Long Term Plan Committee Reports\PED-14-2015-3-Airport EIS and LTP2.docx Page 3 .

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