A report going to city council recommends granting a 20-year rent-free lease for a private building as a condition of securing the airport’s operator until 2027.
City council will vote next week on a deal to secure the operation of Sarnia Chris Hadfield Airport until 2027, but past reports suggest the city has little room to negotiate.
Staff are recommending that council approve a 20-year rent-free land lease for a private building owned by Clare Webb, the airport’s current operator, as a condition of the deal.
While the private lease for the structure known as the "Oil Shed" has raised eyebrows, the 2022 Airport Master Plan revealed years ago that the city is bound by a 1997 agreement with "lack of exit clauses."
That document warned that if the city attempted to terminate the current operating agreement unilaterally, "penalties may be incurred" due to the restrictive terms signed decades ago.
To avoid potential damages, the city needs a mutual agreement with Scottsdale Aviation to bridge the gap until a new Municipal Services Corporation (MSC) can take over operations on July 1, 2027.
The proposed solution involves granting Webb an exclusive 20-year lease for the land beneath his privately owned storage building, with an option to extend for another 10 years.
Webb would pay no rent for the land in recognition of his past service, though he would remain responsible for property taxes and utilities.
The staff report explicitly notes that the broader deal to keep the airport running is "contingent upon Council approving and executing the lease agreement".
The "Oil Shed" is a 200-square-metre structure built by Webb’s company in 1987 and is used for personal storage rather than airport operations.
Beyond the lease, the new agreement would extend the city’s operating subsidy to Scottsdale Aviation, which has been necessary since the loss of scheduled air service in 2020.
The 2022 Master Plan highlighted that the transition to a municipal corporation is critical, as the current private operator model "did not remain viable" after the collapse of passenger revenues.
Council will vote on the package of agreements at the December 15 meeting.
