- Hub staff

Acording to a report to be presented at Owen Sound City Council on November 1, the Owen Sound Billy Bishop Airport will continue to operate but will no longer be owned by the City as of December 10 this year. The report reads in part:

"Staff received an Agreement of Purchase of Sale (APS) from Lennard  Commercial Realty on behalf of their client, Mr. Clayton Smith, to purchase
the Billy Bishop Regional Airport with an offer of $1.5 million.

The City also received an appraisal for the property as per the City’s Disposition of Land By-Law that gave an appraised value of $2.2 million as of  September 29, 2021.

Staff is satisfied with accepting the Agreement of Purchase and Sale offer of  $1.5 million with an appraised value of $2.2 million due to the intangible
value of having an owner with a proven track record of airport ownership,  has a desire to expand and improve CYOS and provide for the uninterrupted
and ongoing operations, including; hangar ground leases and medical patient  transport by ORNGE for residents of Owen Sound and the surrounding area.
In addition, Staff note that with a closing date scheduled for December 10,  2021, the City will immediately avoid 2022 operating costs of more than
$250,000, additional capital and maintenance costs, and any costs, including legal fees or claims that could have been associated with potentially ceasing operations in December 2022.

Due diligence was completed with regard to requirements in the Agreement  of Purchase and Sale, and both the seller and buyer have waived conditions.

The transaction closing date is December 10, 2021. As of that date, the City  will no longer own or operate the Owen Sound Billy Bishop Regional Airport  (CYOS). All assets including current agreements with hangar leases and Owen Sound Flight Services transfer to the new ownership. The current  operations contract with Loomex has a 90-day termination clause and will  not transfer to the new owner at his request.

About the Buyer
Mr. Smith has an extensive background in aviation as a pilot, airport owner,  and operator. His knowledge of the aviation industry and marine ownership have also given him a unique strength in building a successful business and  tourism brand."

The full report, including details of Mr. Smith's experience and history, can be found here.

source: Staff report CM-21-028