The provincial government hopes the purchase of Slemon Park will help grow its aerospace industry and bring jobs to Summerside.

The province purchased the 1,400-acre property, once home to CFB Summerside, from Slemon Park Corporation for $2.39 million.

It will be run as a Crown corporation, and as sole owner the province will begin looking for ways to improve the airport runway and other facilities, said Economic Development and Tourism Minister Heath MacDonald.

Economic Development and Tourism Minister Heath MacDonald says the acquisition will allow the province to make capital improvements to Slemon Park. (CBC)

"Having control of Slemon Park will accelerate our planning and we want to maximize our potential in the area of aerospace," MacDonald told CBC News on Friday. "It's a very big industry, a very important industry to Prince Edward Island."

MacDonald said the acquisition will allow the province to make capital improvements and create jobs for Islanders.

He said the purchase made sense because more than 44 per cent of the shares were owned by off-Island interests.

"Sometimes when negotiating or trying to negotiate contracts or bring new business and you have to deal with other entities that may not have an effect on Prince Edward Island as much as us living here … it takes more time and there are more issues involved," he said.

Premier Wade MacLauchlan (centre) poses in June 2015, when the government announced $5 million in funding for Vector Aerospace, an anchor tenant in the Slemon Park. (Krystalle Ramlakhan/CBC)

A good deal for taxpayers?

Summerside Mayor Bill Martin is thrilled, saying the aerospace industry provides good jobs for the area.

"All of these people essentially are highly trained and highly paid are well paid," he said. "It's huge for Prince County, not just Summerside."

But the PC Opposition on P.E.I. is questioning how the MacLauchlan government's decision will lead to more jobs and economic growth.

"On the one hand the MacLauchlan government says the private sector needs to lead the way on economic growth but now government is getting into the airport business," Opposition Economic Development Critic Matthew MacKay said in a written release.

"Slemon Park Corporation has been a well-run engine of economic growth for 25 years so how is government owning and managing it going to be more efficient than the private sector? Is this about growing the economy or controlling the economy? Without more details it's hard to say whether this is a good deal for taxpayers."

The Slemon Park Corporation, a private for-profit corporation, had been operating the park since 1992. It has been the centrepiece of the province's aerospace sector since that time, hosting Vector Aerospace and Honeywell Aerospace as its anchor tenants.

According to government, aerospace companies generate $149 million to the provincial economy and employ more than 1,360 Islanders. The sector has grown steadily, particularly in international exports which have increased by 300 per cent over the past five years.