After several years of negotiations, the City of St. John’s has signed an 11-year Municipal Authority Agreement with the St. John’s International Airport Authority, ending a long-standing dispute over taxes and other money matters.
The city says over the years discussions surrounding important topics such as development of airport property, water supply for the airport and the assessed value and taxation of the authority and its tenants have been hindered by the lack of a framework to guide the discussions.
The new agreement will provide such a framework and guide future interactions between the city and the Airport Authority.
Some of the highlights of the agreement include the airport being permitted to connect to the city water supply and the city being granted access to airport land for the extension of Hebron Way.
As well, all taxes to be paid by the airport have been agreed upon back to 2013, meaning all appeals have been dropped. Taxes for 2019 will be $1-million adjusted for inflation on a go-forward basis.
Highlights of the Municipal Authority Agreement:
- The agreement is for an 11-year term with the option to renew for another 10 years.
- Both parties agree to consult with each other on development, especially those which have a direct impact on the other.
- The St. John’s International Airport Authority will be permitted to install double left turning lanes exiting the airport property at their cost.
- The St. John’s International Airport Authority will be permitted to connect to the city water supply, fed from the Autumn Drive reservoir at their cost.
- Taxes to be paid by the St. John’s International Airport Authority have been agreed upon back to 2013, meaning all appeals are dropped.
- Taxes for 2019 will be $1-million, adjusted for inflation on a go-forward basis.
- The city will be provided with access to the land to allow for the extension of Hebron Way to Major’s Path at the city’s cost.
- The city will commit a maximum of $100,000 per year into an airline attraction/retention fund to promote the economic development of the region. This is pending on the agreement of federal, provindial governments and the SJIAA to contribute as well.