Sturgeon County and Morinville could spend just under $470,000 in the next three years to help bring more flights to the Edmonton International Airport — but only if that cash gets results.
Sturgeon County and Morinville councils voted June 22 to support the Regional Air Service Opportunity Fund.
In early June, the investment group Edmonton Global, the Edmonton Metropolitan Region Board, Edmonton International Airport, and other groups announced the creation of a Regional Air Service Opportunity Fund to support the airport as it came out of its pandemic-induced recession.
Sturgeon and Morinville councillors heard the airport dropped to just 13 international flights during the pandemic from its usual 52, and saw passenger demand drop by up to 95 per cent. If those flights did not return, the region would have more difficulty in attracting international investment (as investors value direct flights), less ability to ship and receive cargo, and longer flights to vacation destinations, and could lose billions of dollars in economic value.
Edmonton Global and the airport had proposed a three-year $15-million incentive fund to lure those flights back. Edmonton International Airport would supplement this by waiving up to $12 million in operating fees. These efforts, should they work, were projected create up to 7,000 jobs and add $415 million to the region’s GDP.
Edmonton Global is now asking its member governments to chip in cash in proportion to the group’s cost-sharing formula. That worked out to $342,780 for Sturgeon County and $122,750 for Morinville.
Strings attached
Sturgeon County council supported the contribution unanimously, with the caveat that the cash not be released until the county received clear metrics and outcomes for the fund. The money is to come from the county’s economic development reserve and future budgets.
Coun. Kristin Toms said the airport is a major asset for Sturgeon, and hoped this fund would bring more businesses to the region.
“It’s extraordinarily important that we have direct connections into the region for business investment.”
Coun. Wayne Bokehnfohr agreed, saying the county would need the face-to-face talks direct flights could provide if it wanted to see its carbon capture and hydrogen industries flourish. Mayor Alanna Hnatiw said support for the Edmonton International meant support for Villeneuve Airport, which the county had made considerable investments into lately.
Morinville council was more skeptical of the fund, especially since it intended to leave Edmonton Global by 2023. In a 4-3 vote (councillors Rebecca Balanko, Stephen Dafoe, and Scott Richardson opposed), council committed to just one year of funding worth $28,194, with the remaining $94,556 over two years contingent on the fund meeting certain performance metrics. The cash for this contribution would come from unused economic development and visitor information centre funds.
Balanko said council had already made many budget cuts due to tight finances this year, and had previously decided to leave Edmonton Global, as it felt it was not worth the money. Dafoe and Richardson said it should be up to the provincial and federal governments to support the airport.
Mayor Barry Turner said fewer international flights would lengthen travel times for vacationing families and reduce the town’s ability to retain and attract businesses. This fund would be overseen by Edmonton Global and would not expend cash unless the airport drew more flights.
“We need to move this forward and stand with our regional partners and do what we can to support our own economic recovery,” Turner said.
Coun. Sarah Hall noted that the Morinville and District Chamber of Commerce supported this fund, and that council could decide to pull out of it next year if it didn’t meet expectations.
“The bottom line is (the airport) affects our business community,” Hall said.
“By supporting EIA, we’re supporting our future.”
Edmonton Global members had contributed some $14.85 million to the airport fund as of June 24, chief executive officer Malcolm Bruce said in an email. Gibbons, Morinville, and St. Albert had signed on for one year, while Beaumont, Devon, Edmonton, Fort Saskatchewan, Leduc County, City of Leduc, Strathcona County, Sturgeon County, and Parkland County had committed to three. Spruce Grove and Stony Plain were set to vote on the issue June 28. Bon Accord was not contributing as it is leaving Edmonton Global in October.
