Coffs Harbour Airport

Operation of the airport

City of Coffs Harbour secured Palisade Investment Partners to lease, operate and grow Coffs Harbour Airport with an agreement signed on 31 May 2021. 

Palisade is one of Australia’s leading regional airport investors with Sunshine Coast Airport, Darwin Airport, Alice Springs Airport and Tennant Creek airport as part of its aviation portfolio. 

The term of the lease is 50 years with an option to extend for 49-years subject to a range of legal and commercial requirements being met. 

The long-term lease encourages our partners to become an active part of the community, supporting tourism growth and other local industries and community organisations.

Benefits for the community

The deal is forecast to be worth an estimated $500 million to the community over the term of the 50-year lease and 49-year option.  

The agreement includes $81.5 million in fixed payments over an initial period including an upfront payment of $25 million and an additional $56.5 million over seven years including contributions to the development of the Airport Enterprise Park.

City of Coffs Harbour will also receive a share of revenue earned from both the Airport and Enterprise Park, forecast to be in excess of $400 million over the term of the lease and option.

This revenue stream will allow the Council to fund strategic community projects and to invest in improved services for current and future generations.

While the airport has proven commercially viable, continual investment is required to fund future upgrades and maintenance. Under the airport lease model, all expenditure is the responsibility of the airport lessee. This limits the Council’s financial exposure and allows us to focus on investment in core Council functions.

In addition to a very positive financial result, the deal will also see Council’s continued involvement in the airport with the contract conditions requiring that Council will be consulted on the master planning and strategic direction of the airport.

Development of the Airport Enterprise Park 

The Coffs Harbour Airport Enterprise Park (AEP) is shaping up to be another leading development for the Coffs economy.  The 43-hectare subdivision has been brought forward a number of years through significant grant funding, generating construction and ongoing jobs for the city and region.

The development site, accessible via Dakota Drive off Hogbin Drive, is ideally situated in close proximity to the CBD, Jetty Precinct, Coffs Harbour Education Campus and the Health Campus. The AEP development is also in close proximity to road, rail and air connections.

Funded effectively in equal thirds by the three tiers of government, this enterprise park will further cement this region as an economic powerhouse of the future.

The forecast end cost for the project is approximately $30 million to be funded through:

• $10 million Federal Government grant (Regional Growth Fund)
• $10 million State Government (Restart NSW Fund)
• $10.5 million Council Internal Loan (Sewer Fund).

Construction underway 

The AEP construction has been divided into three major works portions.

• Work Portion A (completed in early 2021) provided 10 early access lots for incoming tenants along with substantial lot filling, service relocations, new services, road works and drainage works.
• Work Portion B (scheduled for completion early 2022) includes lot filling, the construction of the new Hogbin Drive intersection, 26 fully serviced lots, road works, drainage and the reconstruction of Christmas Bells Road.
• Work Portion C (scheduled for completion mid 2022) includes 34 fully serviced lots and associated roadways and services.

Progressing concurrently with the construction of the project, Council has also resolved to seek a rezoning of the AEP.  The rezoning application has been submitted and an independent assessment of the application is underway. 

It is anticipated that the site will attract a mixture of business enterprises as well as new aviation related enterprises to the area. This in itself will boost employment for the long term and provide significant economic benefits to the Coffs Harbour region.

View of Airport Enterprise Park under development, taken October 2021

Visit the Coffs Harbour Airport website