"Airport businesses a roadblock to redevelopment"

Monday, June 23, 2008

Airport businesses a roadblock to redevelopment
Compensation may be due to all leaseholders
By Steve Lillebuen
Canada - The Edmonton Journal


EDMONTON - Some companies based out of the City Centre Airport could be
poised for a financial windfall if the city closes the airfield before the
lease is up.

The city could earn more than $500 million by selling the airport, a city
report says, but the cost of obtaining the land is tied to huge legal
burdens.

Even if the leaseholder, Edmonton Airports, gave the property back to the
city for free, the airport's "subtenants would continue to enjoy the right
to possession under the subleases and the city would become liable," says
the report, made public last week.

The implications are enormous because it means the city is responsible for
relocation costs and compensation for every impacted airport business, Coun.
Tony Caterina said Sunday. "To buy out all these other leases and
businesses, I'd venture to say it's in the billions."

If the land is contaminated, clean-up costs could also reach the
billion-dollar mark, he said. Most of the land isn't serviced either, and
the cost of installing utilities has not been examined, the report said.

Edmonton Airports says it's open to handing over the airport. "We don't own
that land. The citizens of Edmonton do," Edmonton Airports spokeswoman Traci
Bednard said. "If they provide us with a different direction in terms of
land use, that's their decision and we respect that."

The airports authority has a lease on the property until 2052, but NAIT
officials and the Downtown Business Association are endorsing efforts to
close the airport, making room for a neighbourhood of over 32,000 people.

Premier Ed Stelmach suggested Sunday that the airport may be an important
link to development in northern Canada.

He added that the decision is ultimately up to city council, however.

Northlands is not interested in closing the airport since it interferes with
their drive towards becoming a car-racing capital. Indy Racing is holding
the first of three races set for July 24 to 26.

"We expect this race to be here in the long term," Northlands director Brian
Leadbetter said.

The airport debate has been referred to city council's executive committee.
A public hearing will be held this fall.


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