By IAN ROSS
The drivers behind the creation of North Bay’s aerospace sector are widening their scope to attract new business to the Gateway City.
Air Base Property Corporation (ABPC) has purchased 26 acres of city land at the Birch’s Road Industrial Park and is twinning with the Mayor’s Office of Economic Development to jointly market the east end property.
“Don’t let the name Air Base Property Corporation fool you,” quipped ABPC chairman Dave Butti. “We’re not putting a runway inside the industrial park.”
The all-volunteer group is out to attract qualified light to heavy industry in the city’s largely vacant 20-year-old industrial park and plan to sell off lots for $1 an acre.
“The only way we’ll create some movement is to create some excitement,” says Butti.
He says their private, not-for-profit organization is merely fulfilling its mandate to bring new investment, develop industry and create well-paying jobs for North Bay.
They’re hoping to duplicate the success they had with the creation of the Aerospace Centre at North Bay’s Jack Garland Airport.
“The model worked before and we figured why can’t we do it again?”
ABPC was formed in 1996 with appointees from the city, the business community and labour working together to stop the destruction of hangars by the Department of National Defence at the former Canadian Forces Base.
They secured the assets and succeeded in attracting Bombardier Aerospace, Florida aircraft repairer Wood Group Turbopower and their anchor tenant, Voyageur Airways, to set up shop in three renovated hangars.
Mayor Vic Fedeli, a former ABPC chairman, vowed in his election platform to create a community development corporation (CDC) to take over and market industrial properties in his ‘Buck-an Acre’ program.
But restrictions under the Municipal Act do not allow the City of North Bay and its economic development corporation to provide incentives. However, outside agencies like CDC’s can “bonus” land.
Fedeli says rather than create a CDC ,North Bay already had a successful, ready-made agency with a history of selling airport hangars for $1.
“It gives our concept of selling land for a dollar even more credibility. And it was an easier way to doing it rather than establish a new one.”
Both Butti and Fedeli say the industrial land was sold at fair market value at more than $14,000 per acre.
The purchase offer was based on a generous swap of about $1.2 million spent by ABPC for upgrades to city-owned water, sewer and communication infrastructure at the airport.
Butti wouldn’t rule out acquiring more land in the 115-acre industrial park. “If we can get the model to work again we would look at further acquisition, but right now this is within our budget.”
Already some prospects have shown interest in the property, but Butti was unable to reveal any details because of non-disclosure agreements.
“We just don’t turn title over for a buck in a heartbeat,” says Butti. “It’s a phased-in process over a period of time. But we’re obviously looking for new business and new industry that would help the city.
“We just tell our prospective purchasers they have to be realistic in their business plan and we’ll determine whether it’s a fit or not. And we have final say as owners of the property.”
