Stephenville council says airport sale imminent, as board raises possible need for more cash

Stephenville town council continued this week to publicly tout potential benefits from a private-sector proposal to buy the airport in western Newfoundland and revitalize it, even as the airport says it needs to dip into the public purse to stay afloat.

The deputy mayor has indicated the deal could be days from closing, but CBC News has learned that the board running the Stephenville Airport Corporation recently informed councillors they may soon need more financial support from the town to help keep the operation running.

Meanwhile, the new chair of the airport board won't discuss what due diligence has been carried out since the ambitious Dymond Group purchase and development plan was announced 15 months ago.

A recent CBC News investigation raised questions about Ottawa businessman Carl Dymond's financial plans and corporate capabilities.

Dymond has indicated he has investors on board and "significant interest" from new business partners.

• CBC INVESTIGATES | He has a $500M plan for an N.L. airport. But his companies and finances have faced turbulence

In the town's 2023 budget speech Tuesday night, Deputy Mayor Susan Fowlow suggested the deal may be done very soon.

"We additionally look forward to finalizing the Dymond Group's planned acquisition of Stephenville Airport, which will create significant opportunities in green aviation, sustainable aviation fuels, research, development and cargo drone manufacturing and operations, to name but a few opportunities," Fowlow said.

"The acquisition process is currently underway and expected to be finalized any day. Significant investments are anticipated in the coming four to five years, along with between 2,000 and 3,000 new direct jobs and many secondary jobs in support, engineering, airline sector, tourism and construction."

Mayor Tom Rose said Stephenville is about to experience an economic renaissance that will see new needs created for local health-care services.

Town officials had a meeting scheduled with the health minister this week.

Rose said he's looking to start building up an obstetrics and gynecology unit for the town now, to prepare for things to come.

"We're going to end up with a lot of young families living in Stephenville, because of the jobs created by these sectors, green and aerospace, that are coming in," Rose said during the public council meeting.

"With these new sectors and young families, the birth rate is really going to go up."

Financial ask from board may be pending

Sources told CBC News the airport corporation board and the town council met last week to discuss the status of the Dymond transaction.

At that meeting, the board floated the idea of further financial support from the town, while the deal remains pending.

According to sources, that could take the form of guaranteeing a loan to fund continued operations at the airport, or providing cash grants.

The town provided just over $200,000 in 2022 to fund airport operations and the costs of a contract for a Winnipeg company to help run it.

Council approved the last payment this fall, and the management contract has expired.

Dearth of due diligence details

This week, airport board members wouldn't discuss the current status of the sale with CBC News.The mayor and deputy mayor also declined interview requests.

Earlier this month, interim chair Willie McNeil declined an interview request on what due diligence was done as part of the process, saying he wouldn't discuss internal workings of the board.

In late November, Rose who, as mayor, serves on the board in an ex officio role told CBC News that work was carried outbut did not provide details.

"I think the board played some of the role on the due diligence with the Greater N.L. Partnership, or the Carl Dymond group of companies," Rose said at the time.

"I think there was some validation on the financial side. I can't really speak to what it was, but I do know that there was some from the airport side."

Last week, CBC News reported that the sole director overseeing two Dymond companies says he didn't actually know he was still listed as serving in that role, after having cut ties with Dymond nearly a year ago.

CBC journalists visited three Ottawa locations listed as business addresses for Dymond companies and couldn't find any evidence they currently operate there.

In a statement at the time, Carl Dymond noted that "we are functioning like a startup," and categorized the changes as routine during the initial years of operation.

"With the additional unsuspecting change of the pandemic, our employees and myself have been working remotely from home, our offices have not been occupied and some leases have expired," Dymond wrote.

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According to the company and the airport board, a 17-year-old insolvency proceeding involving the airport has been holding up the final sale.

In June, Dymond's company said it has "paid the required sums to the trustee involved and we are currently following the established discharge process."

Neither side has given a definitive timeline on when that process will wrap up.

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