Red Deer Regional Airport’s ambitions to become a transportation and aviation service hub got a $30 million boost from the provincial government.
Alberta’s 2023-2026 capital budget unveiled on Tuesday sets aside $30 million in 2023-24 for the airport.
Last year, the main runway was widened to 45 metres from 30 metres as part of a $15-million project that allows larger planes, such as 737s to land and positions the airport to attract a low-cost air carrier along the lines of Swoop Airlines, Flair Air or Lynx Air. It would also allow larger planes to land cargo, heavy aircraft maintenance businesses and other aviation-related services.
New paving planned for the taxiway and apron will be completed this spring. There are also plans to build a $3-million 12,000-square-foot terminal able to handle nearly 200 passengers at a time.
Red Deer and District Chamber of Commerce CEO Scott Robinson said the airport funding is a significant economic development investment that is expected to allow the airport to expand north to connect with Township Road 374 and provide a second access to the airport, which will be key for its future growth.
“That’s big news. They were hoping for that,” he said. “That’s a big win.”
The capital budget also includes $321 million over the next three years for the Red Deer Regional Hospital Centre expansion. The $1.8 billion project is not expected to be completed until 2020-31 and will increase the number of beds to 570 from 370.
Also included is $108.2 million over three years for the ongoing $120 million project to twin Highway 11 from Sylvan Lake to Rocky Mountain House. The first phase of the project, a four-km stretch with two roundabouts south of Sylvan Lake has already been completed and construction on the next phase to twin the highway from two kms west of Highway 781 to Benalto is expected to begin this year.
The budget also includes $83.4 million over two years for the nearly completed Red Deer Justice Centre, which is expected to cost $207 million.
Also in the budget is $7.5 million for Sundre’s wastewater treatment plant.
Robinson gave the province’s budget positive reviews, saying the government has continued to reduce the debt and is taking a conservative and wise approach to estimating future revenues.
He also supports the creation of the Alberta Fund, which was set up with $1.2 billion. The money can be used to pay down debt, to be added to the Alberta Heritage Savings Trust Fund or for one-time funding initiatives that do not lead to permanent increases in government spending.
Robinson also liked the government’s move to once again allocate the money generated by the heritage trust fund’s investments back into the fund, instead of earmarking them for general revenues.
“It’s the first time in quite a while that they’ve done that and that’s good.”
He was also pleased to see the government is continuing to invest in labour attraction and training programs.
“As we know, labour is an important issue for our business community in central Alberta.”
The government also does not appear to have changed the amount they provide municipalities through Municipal Sustainability Initiative funding and there is increased spending in health care.
Overall, the government seems to have taken a conservative and stable approach and has created a level of certainty since 2019, despite the pandemic which had everyone changing their business game plans.
“They have presented some continued certainty in their budgets, with some tweaks here and there. That’s what the business environment is looking for.
“Clearly, our province is very well positioned for investment, ” he said, noting the corporate tax rate remains at eight per cent. Last year, the province saw a record $729 million in new investment.
Red Deer Mayor Ken Johnston is expected to talk about the impact of the budget on the city on Wednesday afternoon after staff have reviewed the details.