The Moose Jaw Municipal Airport will be receiving a $1 million line of credit from JGL Livestock in order to complete renovations.
The item came to city council on Monday night as JGL required that the city provide a guarantee for the line of credit.
The project is expected to cost $3.2 million with the Investing in Canada Infrastructure Program (ICIP) covering $2.2 million, the City of Moose Jaw paying $500,000, and the airport stakeholders covering $500,000.
“The ICIP funding which pays us for construction pays on the basis of a paid invoice on a cheque that's cleared the bank. So, what that does for us is it gives us 30 days to pay an invoice and then they take approximately 30 days to return the funds to us,” said airport authority vice-chair Jarrett Johnson.
The airport authority estimates that the interest would be between $2,000 and $3,000, which would be borne by the airport authority and not the city. Because the city is guaranteeing the loan, it will go against the city’s debt limit. Currently, the city has used $70.2 million of its $95 million debt limit.
Airport Authority chair Greg Simpson said the city’s assistance is appreciated as the airport plays a big economic role in Moose Jaw.
“It's important I think to also mention at this time that people who are out there are using the airfield for business purposes as well. So, it's 85 to 90 per cent of the landing and takeoffs out there are all related to business,” Simpson said.
Construction got underway last fall and the earthwork was completed in late October to expand the taxiways and add 1,000 feet for the runway. Upgrades have been done to the pilot lounge and washrooms and four new hangars have been approved to be built.
Construction is expected to begin on June 1 to complete paving, line painting, and completing the hangar access road.