Airport tenants set to sign new deals
By Medicine Hat News on March 22, 2019.
Two major tenants at the Medicine Hat Regional Airport are set to renew leases, a city committee heard Wednesday. Air Canada has reached a tentative deal for its operating space at the city-owned facility for the next five years, and rental car agency Avis has worked out a two-year term with administrators, according to information presented to the development and infrastructure committee. Both deals need to be approved by city council, though the agreements are essentially renewals. Air Canada has operated at the facility for 25 years, and a new five-year deal would have it pay $23,400 in the first year, then see the amount adjusted for inflation in future years. The amount is comparable with other carrier at the airport, WestJet, and both are subject to landing and passenger fees that, in Air Canada’s case totalled $276,000 in 2018. Avis opened an outlet at the airport in 2016 and the new two-year lease would see them pay $4,800 per year in rent and property tax, plus variable amount as a concession fee. They also would pay $4,000 per year to reserve parking stalls at the facility, or about $500 each. Home Lotto discount The 2020 Kinsmen Home Lotto could be returning to the city subdivision of Saamis Heights, but with a smaller subsidy from city council. Negotiations to place the 2017 annual fundraising raffle in the community, where sales were sluggish, resulted in the city covering about $48,400 in lot costs for the club’s purchase of land. This week a potential deal was unveiled for the city to cover the difference between land and the servicing cost, about $22,800, on the land held by the city’s land development office. It mimics a deal made on the current raffle house that is located in Southlands. Councillors have previously argued that help for the lottery was important but the department should not be put out of pocket by covering servicing costs. The difference covers the land cost to the city, and would be made up in the department’s budget with a transfer from the Community Capital Reserve. The lot in question is located on Sierra Road, south on the same block as the 2017 Kinsmen Home. 15-14
