YLW expansion cost rises, user fees going up

Sep 1, 2023 | 5:00 AM Pete McIntyre

Kelowna council has approved an extra $17.5 million to cover increased costs for the terminal building expansion at Kelowna International Airport.

The city said the extra cost will be funded by the airport reserve, with no impact to taxation.

The total cost of the expansion is now $108 million, the largest infrastructure project in YLW’s history.

“The increased cost of construction for the expansion is due to cost escalation, supply chain issues, and the extent of local and regional construction projects resulting in limited trade and labour availability,” a staff report to council stated.

Council also approved increasing the Airport Improvement Fee (AIF) to $28 per enplaned passenger effective January 1, 2025, up from the current $25.

To fund the capital investment, the Airport’s AIF is anticipated to remain at $25.00 per enplaned passenger in 2024, and increase to a maximum of:

$28 per enplaned passenger effective January 1, 2025,
$31 per enplaned passenger effective January 1, 2026,
$35 per enplaned passenger effective January 1, 2033.

Phase 1 of the expansion begins in September 2023, and will add approximately 5590 m2 of new space to the terminal building and 1200m2 of renovated space to the existing terminal building. This will include:

expanded departures lounge to improve passenger experience and provide improved food and beverage options
expanded security screening area to increase capacity and allow for increased efficiencies through new technology
new direct access on several gates for departing and arriving passengers
improved wayfinding

Construction for phase 1 of the terminal building construction is planned to be complete in 2026.

This month passengers will see changes to parking in long-term lot A, restricted access into the terminal building from the south end of the building (departures), and demolition work will start in the security screening area.

Throughout the three-year construction project, there will be additional temporary impacts to existing amenities in the departures lounge.