Stephenville mayor says money transferred for sale of airport, but rest of board mum on details

The mayor of Stephenville says another milestone has been reached toward the long-delayed sale of the local airport to a company led by Ottawa businessman Carl Dymond.

At a public town council meeting on Thursday night, Mayor Tom Rose said "everything is in line" for the acquisition to proceed.

"As of this past Monday, the money has transferred from the Dymond Group for the purchase of the airport, meeting the terms of that agreement, to a trust account with the Stephenville Airport Corporation's lawyers to fulfill all the obligations of the terms," Rose said.

"For example, paying off the line of credit, which is approximately $1 million plus other requirements, legal, GST, severances, everything. So it's great news for the town of Stephenville. Here's an opportunity for us."

In making the comments, Rose noted that he sits on the board of directors of the airport corporation as an ex-officio member, due to his role as mayor.

CBC News spoke to all of the other members of the board, except one. They would not comment on the mayor's statement.

Interim chair Willie McNeil, when reached by phone Friday morning, declined an interview. He indicated that the money has been transferred to a lawyer, but didn't specify which one. He said the board will know more when it meets with its lawyer Tuesday.

One of the financial hurdles that must be cleared is the airport corporation's longstanding line of credit, which is guaranteed by the Newfoundland and Labrador government up to a cap of $900,000.

Provincial officials told CBC News last year that taxpayers won't be on the hook for that liability as part of any sale of the airport, and the financial backstop "will not be extended to other entities."

In an emailed statement Friday, the department said that position remains the same.

It noted the airport corporation has advised the department that the line of credit will be paid in full and closed through proceeds of the sale of the airport when all conditions for closing are satisfied. 

Dymond has not yet responded to requests for comment.

He first publicly announced plans to acquire the airport back in September 2021.

Dymond's vision for western Newfoundland includes a manufacturing facility for giant futuristic cargo drones and the return of scheduled passenger service to Stephenville.