LSRA fund aims to land aerospace companies to the region

Quebec-based drone company first to receive $100,000

Simcoe County Council approved The Lake Simcoe Regional Airport (LSRA) Aerospace Development Fund on Tuesday which will provide $100,000 a year to a company that invests in the facility, creates jobs and sets aside at least $1 million in their project, among other criteria.

At the same time, the first funding was approved for Volatus Aerospace Corporation, a Quebec-based firm that describes itself as a ‘vertically integrated group of aviation companies dedicated to drive the full potential of unmanned technologies throughout the Americas and around the world.’

Volatus is proposing to develop a $1.4 million Aerospace Centre of Excellence (ACE) with a 5-year lease on an existing hangar at the LSRA beginning in April, and be fully operational and manufacturing in September with 17 to 20 employees in the assembly/integration of drone components.

Eligibility Criteria

To be eligible, businesses need to:

  • make a new investment at LSRA through development of a new facility, or lease of existing facility (minimum 5 year lease)
  • have a least 3 years of operations/financial statements
  • commit to creating at least 10 new full-time jobs at LSRA
  • invest at least $1 million in their project
  • complete project within two years of funding approval

Some councillors expressed concern that approving the fund’s creation and awarding the first dollars was being done back-to-back.

“My initial concern is developing a grant then not having anyone else be able to apply for it because we completely depleted the $100,000 contribution in the 30-seconds after we’ve approved the allocation of the fund,” said Steffen Walma, Deputy Mayor of Tiny Township.

Simcoe County Warden George Cornell acknowledged it was not the usual way of doing business, but said the proponent was excited about nearby developments at the airport and wanted to act on their proposal.

“They are on a decision point about coming to Lake Simcoe, so this is a time-sensitive matter,” said Rob Elliott, the County’s General Manager of Engineering and Planning.

He said the ACE would include research and development, remote operation control centres, and a technology data management and processing centre.

Elliott said the unmanned aerospace sector is regulated under Canadian aviation regulations and has a very green footprint compared to current technologies in aerospace.

“The technology being developed by Volatus is used for numerous purposes including wildlife tracking and management, environmental monitoring, infrastructure and assessment,” Elliott explained.

He said Volatus would not be conducting many drone flights at the airport itself.

The fund has been established through 2023.

Bradford-West Gwillimbury Deputy Mayor James Leduc felt the money being offered was too small.

“I think we should have went bigger here,” Leduc said.

“I believe that $100,000 was way short. Bradford started out at $250,000 a year for these, and this is small-town Bradford.”

The staff report said the fund was needed to attract private sector investment and stimulate job creation and innovation at the LSRA, while supporting COVID-19 recovery.

The report noted the effects of the pandemic on the aerospace industry have been devastating.

“This (fund) will help kickstart private investment and assist in achieving the vision council had in mind when the Lake Simcoe Regional Airport was acquired by the County.” said Elliott.

In January 2020, the County took over a 90 per cent stake in the LSRA, while the remainder is held by the City of Barrie.

The LSRA is located off Highway 11 on Line 7 North in Oro-Medonte.

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