Lease negotiations underway for YSJ land development

Announcements are expected soon as the Saint John Airport (YSJ) looks to develop 650 acres of unused land.

Officials unveiled the ambitious plans back in January, saying the land has been divided into four areas.

The largest, about 450 acres, is for a logistics park which could include “air-related service and manufacturing,” along with “freight and logistics operations” and “light industrial.”

In addition, another 105 acres have been set aside for airside development, including the potential for air cargo operations.

The airport is also proposing to add more amenities such as a hotel, food and beverage services and covered parking.

There is also a piece of land in the area of Loch Lomond Road and the Airport Arterial Road for additional “local services” such as a gas station and convenience store.

Following the airport’s annual general meeting last week, president and CEO Sandy Ross said three lease negotiations are well underway.

“It’s pretty certain we’ll have a couple of announcements in the next few months about some commercial services that we’re going to get going,” Ross told reporters, adding they hope to break ground before the year is out.

The redevelopment plans come as Transport Canada recently extended the airport’s land lease through the year 2079.

Ross said the airport is in the process of getting a revised and new land lease plan to the federal agency, which is the first step in the process.

The airport president said developing the land will diversify their revenue streams, which is one of their four goals.

With 95 per cent of the airport’s current revenue coming from passenger-related activities, Ross said they are looking for more consistent sources of funding.

“Nobody ever imagined a world where all the passengers would go away, but when they did go away [during COVID], the revenue went with them,” he said.

“Transport Canada has been very straightforward with Saint John and other airports that a strategy in the next few years should be to harden your finances against those types of circumstances and tof find new revenue streams.”

In the long term, Ross said the additional revenue will allow the airport to lower its passenger fees, which are currently at $42.

It will also give the airport an opportunity to attract new airlines and routes to Saint John, he said.

“A lot of airlines that operate are expecting incentives or some sort of risk deferral options — in other words, cash in one form or another — in order to start new airline services,” said Ross.

“The thinking is that the revenue we’ll make as a function of the land could be used to underwrite new routes and new carriers coming to YSJ.”

Ross has said the full build-out of the development-ready land is likely at least 10 years out.