Council approves airport tax exemption, storage facility in old Sears outlet

A partial property tax exemption for the Regina Airport Authority could mean direct flights to the United States again.

Regina city council unanimously passed the five-year exemption at its meeting Monday night — under three conditions: The airport retains an airline to commit to daily year-round U.S. hub service by the end of 2020; the annual increases to airline fees charged to service providers don’t exceed Statistics Canada’s consumer price index; and, the airport has no outstanding taxes owing to the city.

Being exempt from $311,400 in municipal property taxes, along with the library and education portion of the mill rate, the airport authority is set to save roughly $500,000 each year.

James Bogusz, the Regina Airport Authority’s president and CEO, said that means more money to attract U.S. airlines to the Queen City.

“What it helps us with is to add fuel to our incentive program. Getting an airline to fly non-stop to a U.S. hub — it’s more than just asking them nicely, we have to literally put money on the table,” he explained.

On top of having the cash to offer the American airlines, Bogusz said the airport needs to work with its marketing team to create campaigns to attract them to the city; the money they’ll save in property taxes will also, in part, go to that.

In 2015, the Regina International Airport (YQR) lost United Airlines. A year later, in 2016, Delta Air Lines quit flying out of the city as well, leaving no direct flights down south. Since then, Bogusz said the airport has been looking to fill that void.

“It’s critical to our community,” he said. “For the past 18 months I’ve been (in Regina), that has been the No. 1 thing that people in the Queen City tell me about — that we need to restore a flight to a U.S. hub.”

Over the last year and a half, Bogusz said he has been in talks with both Delta and United. As of right now, he noted the “most likely” hub would be Denver, Colo., via United; however, no commitment has been made.

Mayor Michael Fougere called the partial property tax exemption “a no-brainer” for council to approve, saying it needs to be easier for residents to get to the States via YQR.

“We hear all the time in the business and tourism industries that it’s just harder to get to our city than it should be. Having an airline coming from the U.S. will make it so much easier to conduct business, to have people move here and have tourists come here,” Fougere said, noting the city’s tourism industry is growing.

“If we can get a (U.S.) airline back here, we will all benefit from that.”

The airport authority has until the end of next year to lock down a year-round U.S. hub service.

Zoning bylaw amended to allow storage facility in old Sears outlet

Over the next couple of years, a U-Haul public storage facility is expected to move into the historic Sears outlet building on Broad Street that’s currently home to the Centennial Market.

On Monday night, council unanimously approved amending the zoning bylaw in the area to allow for it.

Leasa Gibbons, executive director of Regina’s Warehouse Business Improvement District, was one of three delegations speaking before councillors in favour of bending the bylaw.

She argued that in allowing U-Haul to take over the space, the century-old building will be able to undergo the required repairs to remain standing.

“The long-term picture is to keep a historic building around,” Gibbons said. “If you look at the track record that U-Haul has with the adaptive reuse of historical buildings, they don’t tear them down — they maintain them, fix them and give them life at least for another 100 years.”

Despite some of the market’s vendors feeling bittersweet about their new roommate and eventual eviction, Gibbons said there will be a community effort in finding them a new space — and preferably in the Warehouse District.

“This doesn’t mean we don’t support the Centennial Market, but that we may need to work together to find them a new home,” she said.

In a Facebook post Tuesday, the Centennial Market said it was staying put for some time.

“No, the market isn’t closing,” the post read. “We have 1 to 3 years at our current location. New locations are currently being sited for the future.

“Spread the word,” the post added. “Be positive.”

Ryan Babey is a realtor with Colliers International, which is selling part of the building. He also spoke before council in support of the change, emphasizing that the realty industry will help the market “find a permanent solution in a property the right size for it to remain in Regina.”

Fougere said the community planning to work together to help find the market a more suitable space likely played a role in council’s unanimous vote.

“What I like in particular is the commitment by many of the partners to find locations for many of the (vendors) that are there today, and get them a place to thrive and operate,” Fougere said. “I think that’s really important.”

Right now, Babey said the building is sitting mostly empty and the present financial status is “currently not viable” with the market only occupying roughly half of the main floor.

“It’s a large facility with a high cost of upkeep in order to keep the lights on and the building heat going,” he explained. “When (U-Haul) occupies the building, they do have the ability to maintain it, to upgrade it, to revitalize it.

“It’s a 100-year-old asset with aging walls, aging boilers; it’s going to require a full refresh. They’re looking into how to renovate it and bring it up to market standards.”

Fougere noted the revitalization aspect said to be put forward by U-Haul is also appealing.

“This is a building that could be at risk. Right now, the business model is not sustainable — the rent being paid by the tenants is not sustaining the building, so this is a way to overcome that problem,” said the mayor.

U-Haul currently operates a retail store and truck hitch install centre at the site.

Over the next year or two, the personal self-storage facility is expected to undergo the design phase, followed by permitting and construction, Babey noted. The market has until then to find a new home.

Council one step closer to approving rail relocation on Ring Road

Council agreed Monday night to move on to its next phase in the relocating of the train tracks on Ring Road between Winnipeg Street and McDonald Street.

The recommendation includes city administration reaching out to “secure the co-operation of CN Rail and CP Rail by way of Memorandum of Understanding or Letter of Intent.”

After that, the city will be able to move forward with the design stage of the relocation in co-ordination with the rail lines.

According to Fougere, the city plans to spend about $2 million on the design, which would eventually circle back to council for approval. He said, likely, it would see the tracks moved north around Regina.

Funding discussions with the provincial and federal governments are also in the works, he noted.

Fougere said the city will reach out the rail lines for money as well, but “it’s not a deal-breaker.”

At this time, Fougere said the estimated total cost for the relocation is roughly $107 million, and after talks it could be either 50 per cent less or 30 per cent more.

Zoning bylaw gets the go-ahead

Council also approved a new zoning bylaw.

It has to be approved by the Ministry of Government Relations before it can be implemented.

The bylaw will take effect 30 days after the ministry’s approval is received. The city’s new sign bylaw — which was approved at council’s Aug. 6 meeting — will take effect at the same time.

The zoning bylaw was available for public comment starting in January and, after consultation sessions and online feedback, amendments were made. The updated bylaw was the one approved Monday night.