In our discussions with the City of Ottawa in 2021 and 2022, it was clear that providing direct financial assistance to Y-O-W, comparable to that received by other mid-sized Canadian airport peers, was not an option. The City of Ottawa told us that an Airport CIP was the best way and only way it was willing to provide assistance.

Many of you around this room endorsed the Airport CIP in July 2022. From our perspective, an airport hotel is the exact type of project for which the CIP was created. Moreover, Y-O-W has been trying to attract a project like this for the last seven years.

There are several reasons why it is important that you support this CIP application.

First, the project meets every requirement under the CIP framework and the program's original intent.

Second, the City acknowledged the airport's role in creating prosperity for the Region when it designated it as an economic development zone in the Official Plan. Support for this project, in the form of a CIP, is a meaningful and tangible demonstration of the designation.

Third, the project represents an upside for the City with net new revenues upon completion, as identified in the Staff Report.

As you know, Porter Airlines is investing substantially in our City and airport, making Ottawa a primary maintenance base for their new fleet of 50 Embraer jets – a number that will likely grow. It confirms their confidence in our market and ensures that Y-O-W figures in their aggressive growth plan. Air France's new non-stop service to Paris shows the potential for additional international and Trans-Atlantic service. A terminal hotel will enhance our prospects for achieving similar success in the future.

The City will benefit from additional municipal tax equivalents with the increase in connecting passengers and the current construction of the 14,000 square meter hangar for Porter I mentioned. The incremental tax revenue of these two examples alone will significantly exceed the value of the annual grant provided by supporting this CIP application.

We do not come to the City with cap in hand. On the contrary, we committed to cover the cost of the now completed 16-million-dollar LRT airport terminal station because we believed it was vital for the City. We helped secure nearly 150 million dollars in provincial and federal funding to cover the entire construction cost of the airport link. We pay nearly 5 million dollars annually for the Ottawa Police Service to provide policing in the terminal. That amount is above the annual PILT of 5 million dollars.

We continue to invest funds generated by leases such as the one with Alt Hotel and other commercial activities into new initiatives like the Porter hangar development. All of these projects provide new tax streams to the City coffers and help Y-O-W grow and offer new routes.

There is no question that these projects, coupled with more connecting passengers, will accelerate our recovery. Our conservative forecasting suggests 2.0 million more passengers in the next five years or sooner with more connecting passengers. We pay the City one dollar and eight cents in payments in lieu of taxes for every arriving and departing passenger that uses our airport. That amount doubles when a passenger connects through Y-O-W. These passengers also contribute revenues to Y-O-W that help us meet our goals as an economic engine for the City.

We have a fantastic project that is shovel-ready. Thanks to the Council-approved CIP, we were able to breathe life into the project last summer. The company is ready to start in May or as soon as this CIP is approved. The sooner we start, the sooner we can offer passengers the amenities they expect in a hub airport and in airports that aspire to become hubs. The time to build is now. Approving this CIP application before you is critical to achieving our shared goals for the Ottawa International Airport and the City of Ottawa.

Thank you for your consideration.

Mark Laroche
President and CEO, Ottawa Airport Authority