Ottawa commits up to $22.4M to service Kelowna airport employment lands
Kelowna International Airport is seen from the airside in a YLW media file photo. Ottawa has conditionally committed up to $22.4 million toward utility infrastructure for the airport’s East Lands.
Photo credit: Kelowna International Airport (YLW)
KELOWNA — The federal government has conditionally committed up to $22.4 million to install utilities at Kelowna International Airport, opening the way for development of more than 165 acres of aviation and industrial land east of the airport’s runway.
The YLW Economic Enabling Infrastructure Project would add water, sanitary sewer, stormwater, electrical and communications infrastructure to the airport’s East Lands. An initial phase is expected to service about 90 acres of development-ready land.
The money is being offered through the Direct Delivery stream of the federal Build Communities Strong Fund. The Sept. 28 announcement says the funding remains subject to a contribution agreement between Ottawa and the recipient, along with federal requirements that can include Indigenous consultation and environmental assessment obligations.
The announcement does not give the total cost of the project, the amount YLW will contribute or a procurement and construction schedule. It also does not say when the first serviced parcels could be available for development.
YLW currently markets East Lands parcels ranging from one to 40 acres for aviation and industrial uses. The airport lists hangars, warehouses, manufacturing and distribution among the possible developments, while the federal announcement identifies aerospace, aviation, logistics, advanced manufacturing, technology and training facilities as sectors the new infrastructure could support.
The airport is owned and operated by the City of Kelowna but is self-funded through airport revenues, user fees and charges rather than property taxation. YLW says its broader 2024-to-2033 expansion program will invest about $422 million in airport infrastructure, including fully serviced lots for light-industrial and commercial businesses, with the program funded through airport revenues and Airport Improvement Fees. The Sept. 28 announcement does not specify how much of the East Lands project will be paid from those sources.
The federal commitment comes as the City and airport are pursuing additional aerospace development around YLW. FireSwarm Solutions announced Sept. 15 that it had signed memorandums of understanding with the City of Kelowna and Okanagan College as it works to expand its operations in the Interior. The company said it expects the collaboration to create jobs at YLW, but that announcement did not identify an East Lands lease or specific parcel.
Okanagan College is also building a new aerospace training hangar at YLW for aircraft-maintenance and related programs. That facility is being funded separately through the BPL Legacy Association and the college and was not identified as part of the federally supported East Lands servicing project.
The federal government has conditionally committed up to $22.4 million to install utilities at Kelowna International Airport, opening the way for development of more than 165 acres of aviation and industrial land east of the airport’s runway.