Airport taps feds for $4M distribution centres plan
Mon, December 8, 2008
EXPANSION PROPOSAL
By JONATHAN SHER
London's airport has asked the feds for $4 million to build distribution centres it hopes will be stepping stones to making this the only airport north of Mexico where goods could zip through tax- and duty-free.
The pitch comes as Ottawa plans a stimulus program that would include money for public works during a time of global economic crisis.
With competition fierce for that money -- thousands are expected to apply -- airport president Steve Baker will turn this week to city hall for a letter of support.
"It's important for the city to act as soon as possible," Baker said yesterday.
While other public works will create construction jobs, airport expansion also would provide ongoing employment, he said.
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"It's not just about pipes and potholes," Baker said.
Baker also wants council to support his request to make the new buildings essentially exempt from London property taxes for 10 years --forgoing a few hundred thousand dollars in revenue.
As many as eight distribution centres, each with 100,000 square feet of space , are needed to make use of a new authority granted to the airport last week by the federal government.
London International Airport was named an export distribution centre that can receive and send cargo around the world. Until now, the airport could receive only cargo that was destined for the city.
But that approval means little if the airport can't build the distribution centres, Baker said.
The new centres are only the first step. Baker also wants the airport to become a free-trade zone where goods from around the world would not attract taxes or duties.
A free-trade zone would allow the airport to do more than receive, sort and send goods -- companies would be allowed to receive parts and assemble or finish them before sending them elsewhere.
If the airport doesn't move aggressively, it risks losing cargo business that has already begun to slip because of tough economic times, Baker said.
The airport also has asked Ottawa for $5 million to build a flight training centre Baker believes would help that business grow. By January, there will be five flight-training schools and one aircraft-maintenance program drawing students from around the world.
[sorry about the bananas, they have become tradition]