While one Pelham councillor is pushing for greater financial accountability at the Niagara Central Dorothy Rungeling Airport (NCDRA), there are signs that the Region may be considering a takeover of the facility’s operational costs and responsibilities.
If it happens, the plan would ease the tax burdens on Welland, Pelham, Port Colborne, and Wainfleet, which current share funding of the NCDRA, and spread it amongst all 12 lower-tier municipalities.
But it’s not wheels-up yet, not by a long shot. That flight plan has yet to be filed.
The airport is located at the far south of Pelham’s borders, on River Road, and is entirely within the municipality. It is managed by the NCDRA Commission, whose seven members are elected councillors from each of the four municipalities—three from Welland, two from Port Colborne, one from Wainfleet, and one from Pelham. Councillor Lisa Haun is Pelham’s representative.
Erik Acs, a project manager for the Region, and Greg Ballentine, a project manager for the aviation consulting firm WSP, spoke at commission’s most recent meeting, last week, via Zoom, about an economic impact study and master plan for the airport currently underway, with projected release in April.
Contacted by the Voice in December 2020, Pelham Regional Councillor Diana Huson recalled past discussions of an upload of Niagara airport costs to the Region (involving both the NCDRA in Fenwick, and Niagara District Airport in Niagara-on-the Lake). She believed that a feasibility study was underway, amidst concerns that the venture might not be profitable, and would create a significant tax burden.
“The Region has made significant investments in long term care home construction, transit expansion, infrastructure repairs, and reinvestment,” said Huson. “With the South Niagara wastewater treatment facility proposed for our current budget, and stuck as we are in the middle of a pandemic, I’m not convinced Regional Council will see an airport takeover as being on the list of priorities.”
I’m not convinced Regional Council will see an airport takeover as being on the list of priorities
Meanwhile, Pelham Town Councillor Wayne Olson, a retired chartered accountant, has voiced concern about the economic management at NCDRA, and the absence of detailed financial statements and a comprehensive business plan. At last week’s Pelham Town Council meeting, a motion by Olson to discuss the airport’s financial arrangements was deferred to a future date. Olson requested detailed financial statements on the airport’s operation be made available, and Councillor Haun agreed to relay the request to the commission.
“I have arrived at the belief that the commission has been asked to do the impossible, running an airport on the basis of funding from four small, relatively indifferent, communities,” said Olson, who comes from a family of aviators. He said that the airport has the potential to be a huge cash drain.
“The Region predicts $15 million in capital is required between now and 2040, with about $7.5 million over the next three years. Pelham’s share of the capital would be $2.7 million to 2040, with just under $1 million for the first three years. The operating costs including financing would be $840,000 per year, with Pelham’s share being $150,000 per year.”
Pelham’s municipal contribution to NCDRA in 2020 was just under $28,000, with the same amount being budgeted for 2021. Welland contributes $86,000 annually, while Port Colborne pays $29,000, and Wainfleet chips in with $11,000.
Olson openly questioned the legality of the Niagara Central Airport Commission applying for, and receiving, a COVID-related federal emergency business grant. He asserted that the grant was improper, given his contention that the commission is a government body, which would disqualify it from receiving such funding. Furthermore, according to Olson, the commission has the authority to operate, but not to borrow money from any source.
Asked for his opinion, David Siegel, Emeritus Professor of Political Science at Brock University, said that it's a complicated legal issue.
“Airport commissions are emanations of government, but they're created to be separate from the government apparatus,” said Siegel. “Everything depends on the precise wording of the legislation related to CERB and the airport. This is the sort of thing that keeps judges and lawyers busy.”
Unlike Niagara Regional Airport, which is classified as an international airport, NCDRA has “aerodrome” status. Security is provided by cameras, not personnel. There is no control tower. NCDRA has a total annual budget of approximately $340,000, with about 45 percent of this amount contributed by the four sub-municipalities.
By comparison, Niagara District Airport, in the northeastern corner of the peninsula, has a budget of about $1.6 million, subsidized by St. Catharines ($245,000 annually), Niagara Falls ($162,000), and Niagara-on-the-Lake ($32,000). The airline FLYGTA offers daily flights to Billy Bishop Airport on Toronto Island, with plans for expansion. There is no commercial passenger service operating from NCDRA.
The 416-acre Niagara Central Dorothy Rungeling Airport’s roots date back 80 years. The main hanger is an original structure, erected in the early 1940s, when WWII pilot training was conducted. The field has two paved runways (3500 and 2670 ft.), one 2300 ft. turf runway, and also has seaplane landing access on the Welland River, across River Road. NCDRA can accommodate glider training and parachuting for its user groups, which include the 87 Eagle Squadron Air Cadets, Niagara Skydive Centre, the Canadian Owners and Pilots Association (COPA) Flight 149, and the St. Catharines Flying Club.
The airport also serves a number of clients requiring inside hangar space, outside tie-downs, and private hangars, including Fonthill’s Accipiter Radar (which has the newest hangar on site).
A 2014 economic impact study by consultant Archbold Leclerc and Associates asserted that the NCDRA provided economic activity of approximately $4.5 million per year, far outweighing the annual municipal financial support. The study anticipated growth by 2018 estimated at over $8 million per year.
If we want to make Niagara a primary destination for business and tourism, you pretty much need a nearby airport
The airport is administered by a seven-member appointed commission, with Welland City Councillor Leo Van Vliet as chair. The airport used to have a full-time general manager, but day-to-day operations are currently being directed by the commission. Van Vliet said that they are considering a part-time manager role.
Given competition from proximal airports in Hamilton, NOTL, Buffalo, and Niagara Falls NY, some Niagara politicians think a small aerodrome like Niagara Central can’t achieve profitability.
“Yeah, I've heard all of that from the naysayers,” said Van Vliet. “Quite frankly, I haven't got a strong opinion on it. But Niagara has a lot of businesses that need someplace where they can fly their parts and people in...and if we want to make Niagara a primary destination for business and tourism, you pretty much need a nearby airport.”
Van Vliet said that many pilots were complaining about the high cost of fuel, and the pumps closing at 5 PM.
“In response, we’ve dropped the price, and have installed a new pump with 24-hour access as long as you have a credit card.”
Jim Morrison is a COPA member and pilot flying out of NCDRA. He said that part of the problem is that local municipal governments funding the airport view it as an expense, not an asset. Morrison also thought that up until now, airport stakeholders like the pilots have had very little input as to matters at the airport. With the recently proposed establishment of a new “advisory panel,” this may change.
Knowing that some view the airport as the purview of a small group of privileged pilots, Morrison noted that, “over the years, we have taken numerous charity group children for free flights, and our pilot group has volunteered numerous times to assist other groups who may wish to use the field.”
He cited the example of the 2019 Air Race Classic, which involved 180 female aviators completing a five-day race across the United States, which finished at NCDRA.
“The ladies spent several days here in Niagara, and local restaurants and hotels benefited.”
The unfortunate reality is that Niagara’s two airports have been perennial money-losers, and the political debate has been heated at times over whether the Region should step in to ramp-up development and ignite profitability.
In a 2019 St. Catharines Standard article, Niagara Falls Mayor Jim Diodati came out as a cheerleader for a Region takeover, commenting that, “Yes, the airports currently do not make money, but neither do ice arenas, soccer pitches, ball diamonds, or transit buses. We are not in the business of making money. We are in the business of creating services and economic development.”
Welland Mayor Frank Campion was also supportive, advocating financial investment by the Region for both airports.
"If we get into the airport business, we should do it as one system," he told The Standard. "There is a need to protect these assets. If we lose an airport, we won't be able to assemble the land for a new one. We have to be smart and think 25 years down the road."
Lincoln Regional Councillor Rob Foster was opposed to a takeover, saying, "We are $350 million in debt, and will spend $1.3 billion on other transportation in the coming decades. Zero airports in the hands of the Region is the way to go." Similarly, Fort Erie Mayor Wayne Redekop considered an upload of the airports to the Region as “pure politics,” and with competition from bigger and busier airports in Hamilton and Buffalo, added he couldn’t see a business case for pumping millions of dollars into air services in Niagara.
