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Airport support questioned by councillors

Red Deer Airport will get almost $170,000 from Red Deer County this year, a level of support questioned by some councillors.

Red Deer Airport will get almost $170,000 from Red Deer County this year, a level of support questioned by some councillors.

Under the terms of a new five-year agreement, the county agrees to provide a grant equivalent to 65 per cent of the Springbrook airport’s property tax bill up to $200,000.

Based on the airport’s 2012 tax bill of $260,515, the grant would be $169,335.

Coun. Don Nesbitt questioned why the county with a population of 20,000 was providing $170,000 when the City of Red Deer with a population over 90,000 was giving the airport $179,000 annually.

“It just seems disproportionate to me,” said Nesbitt, who was the lone vote against the agreement.

Mayor Jim Wood said the county is playing a large role because the airport is located within its jurisdiction.

It’s important that the airport flourishes, he said.

Coun. Dave Hoar said he shared Nesbitt’s concerns.

But he can justify the county support because it looks like it’s paying off by helping drive economic growth at the airport. “Should these facilities develop, of course, our tax base will go up.”

Hoar said as the airport develops economically, the county will have to “cut some purse strings.”

The start-up of additional scheduled service shows things are picking up at the airport, said Coun. Penny Archibald. Northwestern Air announced last month that service between Red Deer and Kelowna will begin on April 20 with Friday and Sunday flights. On Tuesday, it announced service to Edmonton and Dawson Creek.

“Some day we won’t be having to give back part of the money we take (in taxes).”

The deal revives a previous five-year arrangement that expired in 2009, and renewed under one-year extensions in the following two years at $149,000 annually.

In a report to council, assistant chief administrative officer Ric Henderson says the airport is important to the region’s economic development.

“With the substantial growth that has taken place at the airport, and the increase in property taxes, additional funds are required in order to maintain the employee base and to provide for maintenance and capital projects,” says Henderson.

The airport authority continues to pursue federal and provincial funding.

pcowley@www.reddeeradvocate.com