REPORT TO

MAYOR AND COUNCIL

PRESENTED: APRIL 6, 2009 – SPECIAL MEETING REPORT: 09-41

FROM: CORPORATE ADMINISTRATION DIVISION FILE: 8400-01
SUBJECT: LANGLEY REGIONAL AIRPORT – LOT 10 LEASE AGREEMENT

RECOMMENDATION(S):
That Council give approval to the surrender of lease on Lot 10 effective June 15, 2009 held by
Tundra Helicopters Ltd. due to the sale of its office building and hangar on the property to Can
West Component Services Inc.; and further

That Council give approval to enter into a new lease agreement on Lot 10 effective June 15,
2009 with Can West Component Services Inc. for a term of twenty (20) years, with a five (5) year
option to renew, for the purpose of establishing a business for helicopter component repair and
overhaul and a separate business for avionics installation and engineering.

EXECUTIVE SUMMARY:
Lynn Harrison, President of Tundra Helicopters Ltd., has requested in a letter (ATTACHMENT
B) that the company’s lease agreement with the Township for Lot 10 be terminated effective
June 15, 2009. Mr. Tom Jackson, owner of Can West Component Services Inc. and Rivers
Edge Avionics Ltd., confirms in a letter (ATTACHMENT C) that his offer to purchase the office
building and hangar on Lot 10 has been accepted subject to approval of a new lease. He
requests a new minimum lease term of twenty (20) years to enable financing of purchase,
demolition of the old hangar, and construction of a much larger replacement.

PURPOSE:

The purpose of this Report is to seek Council direction regarding the requested surrender of an
airport property lease and the subsequent establishment of a new lease agreement.
LANGLEY REGIONAL AIRPORT – LOT 10 LEASE AGREEMENT
Page 2 . . .

BACKGROUND (HISTORY):

Tundra Helicopters Ltd. has leased Lot 10 since 1989 for the purpose of heli-logging and
helicopter fire suppression within the forest industry. The company is ceasing operation. It has
accepted a purchase offer from Can West Component Services Inc. pending a closing date of
June 15, 2009 subject to Council approval by April 9, 2009 to terminate its lease and allow
establishment of a new lease with the purchaser.

The current lease with Tundra Helicopters Ltd. expires June 30, 2009. The office building facing
216 Street was constructed in 1995 and is in very good repair. The attached hangar, however,
is 26 years old. Can West Components Inc. intends to demolish the hangar and construct a
9,500 square foot replacement. It will also modernize and repair the office structure, repair the
drainage system, re-landscape the property, re-surface all asphalt areas, and upgrade the hydro
from single to 3-phase. It is intended that renovation be completed by December 2009 and
business commence in January 2010. Twenty new high-tech jobs will be created on the site as
a result of consolidating existing operations from Vancouver and Pitt Meadows airports and Port
Kells. To carry out the purchase, construction, and refurbishment, a lease term of at least twenty
years has been requested to obtain suitable financing.

Under Clause 5.1 of every lease agreement, established under Council policy, the lessee
cannot make any assignment of a lease or sub-lease of a leased area without Township
approval (ATTACHMENT D).

Council Policy 05-210 states that Council should consider new leases of up to 20 years with
renewal option for further five-year periods at the anniversary date.

There are no arrears on the Lot 10 lease. A schematic of the lease area is shown at
ATTACHMENT A.

DISCUSSION/ANALYSIS:
The 2009/10 fiscal year lease rate for Lot 10 is $0.2571 per square foot which includes a 2.4
percent increase over the 2008/09 rate to account for adjustment in the Vancouver Consumer
Price Index as provided by Stats Canada and applied under Council policy and reflected in the
lease agreement.

Should approval be granted, annual lease for Lot 10 will commence at $6,832, plus GST, for the
26,575 square foot lot.

Respectfully submitted,

George Miller
AIRPORT MANAGER
for
Laurenda Rebelato
CORPORATE SERVICES MANAGER
CORPORATE ADMINISTRATION

ATTACHMENT A Langley Regional Airport maps showing Lot 10

ATTACHMENT B Letter from Tundra Helicopters Ltd.
ATTACHMENT C Letter from Can West Component Services Inc.
ATTACHMENT D Standard Langley Regional Airport Lease Agreement