Title
SALE OF SHARES OF THE LAKE SIMCOE REGIONAL AIRPORT
1. That in order to divest the City of Barrie’s (“City”) remaining 10% investment in the shares of the Lake Simcoe Regional Airport Inc. (“LSRA”) and subject to the approval of the County of Simcoe (“County”), which currently owns 90% of the shares in the LSRA, the Mayor and City Clerk be authorized to execute a Share Purchase Agreement as well as any related or ancillary documents that would reflect:
a) The County’s purchase of LSRA shares from the City, such that the City’s share ownership would be decreased from 10% to 0% and the County would become the sole shareholder as of January 1, 2024;
b) A reduction in the City’s apportioned contribution for maintenance, operation, capital or borrowing charges to the LSRA from 10% to 0%;
c) The elimination of the number of Directors appointed to the Board of the LSRA by the City to reflect the City’s 0% equity in the LSRA;
d) The Management Services Agreement between the City and the LSRA be terminated as of January 1, 2024;
e) First right of refusal/compensation if the airport ceases to operate and the lands are to be disposed of by the County; and
f) Further amended provisions that may be appropriate to reflect the changes in shareholdings in the LSRA, with any such provision to be in keeping with the existing agreement terms and subject to the satisfaction of the Chief Administrative Officer, Chief Financial Officer/Treasurer and Director of Legal Services.
2. That staff consult with the County and the LSRA regarding other transitional matters between the City and the LSRA which will be concluded as at the date of the share purchase by the County.
3. That the proceeds associated with the County’s purchase of shares, with an approximate value of $1.303 million, be applied to the LSRA’s outstanding capital budget requests to the end of 2023, with the remaining balance of $1.211 million to be allocated to the County Capital Reserve.
4. That the $3.361 million balance in the Airport Infrastructure Reserve be transferred to the County Capital Reserve. (FIN017-23)