City releases economic impact of CentrePort’s Airport Area West

The City of Winnipeg will see a net present value of its investment in CentrePort Canada’s Airport Area West of $115 million, most coming from the utility operations.

That was among the prime findings of an analysis of the municipal fiscal and economic impacts of providing city services to the AAW region.

The analysis, released at City Council February 25, noted that this conclusion must be considered with the fact there is uncertainty in both revenue and expenses.

“The break-even year for the City’s investment is expected to occur in 27 years after development begins,” the report says. Prior to that, “existing municipal tax and utility ratepayers will be responsible for carrying the capital and operating cost associated with the development.”

However, cost-sharing from the province and federal government to offset infrastructure costs would result in an earlier break-even year.

The other economic impacts include:

• AAW represents a strategic area for the expansion of local employment lands and contains CentrePort Canada South, which is located near tri-modal transportation networks and access to Canada’s Foreign Trade Zone programs.
• The land is anticipated to accommodate about 16,000 jobs, which in turn will generate up to $787 million in wages (2020 dollars) annually resulting in the following revenues to government
  • $129 million to the federal government
  • $107 million to the province
  • $80 million to Winnipeg

The findings of the City’s analysis was assessed by a third-party consultant, who found that it was robust and thorough.

The executive summary said the “report demonstrates that the fiscal and economic impact of the Airport Area West is positive for the City of Winnipeg, the Province of Manitoba and Canada.”