RE/MAX Advantage
#116 - 150 Chippewa Rd., Sherwood Park, Alberta
P: 780-464-4100
F: 780-467-2897
Edmonton Property Report
- January 27th, 2010
Cold Lake Wants to Collect Oil Revenue Taxes, or Fold
The City of Cold Lake is threatening to disappear. No, aliens are not going to swoop down from a hovering space craft and beam everyone into orbit. The city may just request to be absorbed back into the Municipal District in Bonnyville and it will just cease to exist. It all comes down to oil revenues and how they are shared within the province of Alberta.
Right now Cold Lake is broke. They have roads that need serviced, an arena that needs built and a sewer system that is in need of an upgrade, not to mention the millions of dollars in debt on the books. The city’s mayor Craig Copeland is concerned that though the nearby oil development has brought more traffic to Cold Lake, the city is not getting adequate compensation for the taxing of its facilities.
The mayor is asking the province to implement a revenue sharing plan to benefit his 13,000 town that serves as a retail hub for north eastern Alberta and its oil industry. This goes entirely against the grain of existing policies, even considered a “taboo” in the province. But, if such a plan is not put into action, Cold Lake’s city council wants to dissolve the city.
Reaction in the town is mixed. While most retailers appreciate the increase in business the oil companies have brought to Cold Lake, the disparity between the money municipal districts collect from energy industry outfits and the cash resources available to incorporated cities is worrisome.
All Cold Lake can do is increase taxes and decrease their budget, neither of which is beneficial to the town. Last year Cold Lake shaved $1 million from its annual budget and increased taxes by 5.5 percent. There is still not enough cash to effectively operate the town.
Copeland either wants to dissolve the town or see 25 percent of the taxes paid by the oil industry funnelled into Cold Lake’s empty coffers. No doubt the outcome will be very much rooted in the political climate in Alberta. This should be interesting.
Edmonton Property Report
- January 14th, 2010
Urban Village Life in Canada Still In Its Infancy
Urban village life is struggling to catch on in Canada. Edmonton’s Terwilligar Towne is the area’s first foray into this green type of community and is getting mixed reviews. The concept is a series of smaller apartments, condominiums and semi-detached homes all built around central open spaces. All the units in the community are connected by walking trails that lead to parks and stores encouraging residents to stay out of their cars.
Those who live in the development seem to be happy with their eco-friendly community. But the concept is proving to be a hard sell for most of the city. Terwilligar Towne also suffered a bit of a set back when Edmonton approved a major commercial development on an arterial roadway near the urban village. Businesses were opting to lease in the larger setting rather than in commercial space within the community.
St. Albert is also considering the urban village concept for some of its recently annexed lands. City council has approached some local developers about the concept but though most liked the idea, they feared the market isn’t there yet. People move to the city because of its large lots and homes and open spaces and trying to reverse that mind set will take time.
One urban village has been under development by Genstar. Called the Northwest Urban Village Centre it envisions roughly 900 people living in low-rise apartment structures and compact semi-detached houses all with their own commercial hub offering shops and services. The village is designed to be pedestrian friendly and have easy access to public transit. It has been four years since council approved the project and there have been delays due to a re-alignment of Ray Gibbon Drive but the development is slowly coming together.
Edmonton Property Report
Stelmach Speaks about Climate Change Summit in Copenhagen
Premier Ed Stelmach recently acknowledged that Alberta will be centered around a debate about climate change, but there will not be any ground-breaking international agreements, he says.
He explained that the environment minister, Rob Renner, and Prime Minister Harper will be part of the Canadian contingent attending the summit.
The premier is steadfast in his opposition to a cap-and-trade system in order to reduce carbon emissions. He swears that no one is going to put an additional price on the cost of energy in the province.
He also proclaimed that there would be no increase in taxes through the recession for Albertans. He reminded listeners that no jurisdiction has ever solved the problem of a recession through higher taxes, and he just won’t have it for his province.
Stelmach believes that leaving the money in the pockets of the consumer is the best route to economic recovery. He also reminded the crowd that the only jurisdiction in North America with no debt is Alberta. He also plans to work more with the federal government to gain more money for each person for health care costs.
Edmonton Property Report
LRT Expansion Plan Draws Strong Public Opposition
Dozens of citizens showed up at the public hearings for the LRT expansion project to protest the plans. Seventy people showed up to debate the project, and over 50 of them spoke against the proposed new routes.
The new project would be Edmonton’s largest expansion to the city’s transit system since the 1970s. LRT wants to build 25 kilometres of new track at a combined cost of more than $2 billion, but the project has not been approved yet. It would almost double the size of the existing system.
People in the area seem to be absolutely opposed to changing the street scape for a new transit system. Not only would the project have a negative effect on the physical layout of the city, business owners claim that the project would drastically cut down on vehicle traffic by almost 60%, which would be a devastating blow to businesses in the area. Also, people are opposed to it because it would demolish large areas of parking.
Citizens are claiming that the project would devastate the area and create horrible safety conditions for travelers, but the West Edmonton Business Association thinks the project would bring more shoppers to west Edmonton.
Bob Boutilier, transportation general manager is confident in the plans that the city development experts have recommended, and he says the city will be working with residents to address concerns over the detrimental impact of the project.
Edmonton Property Report
Real Estate Report Predicts Weak Demand Could Slow Market Recovery
Although the Canadian real estate market did not suffer setbacks as those experienced in the United States, real estate experts predict a generally slow recovery from the 2008 economic slump. Per a report issued by PricewaterhouseCoopers in conjunction with the Urban Land Institute, Canadian real estate losses are ten to twenty percent below values achieved two years ago.
PricewaterhouseCoopers spokesman Chris Potter advises that his firm will give most real estate-related investments a fair rating at most. He cites weak demand as a factor in dampening cash flow in all real estate segments. Stricter banking regulations in Canada prevented the housing meltdown seen in the U.S. However, data from the 2009 Emerging Trends in Real Estate report indicate that Canadian realty experts are still concerned about the aftershocks of the U.S. recession. This report predicts a continuing buyers’ market, and expects relative stability in the condominium and hotel sectors.
Lori-Ann Beausoleil, also employed at PricewaterhouseCoopers, advises that many condo developments, particularly in large cities such as Vancouver and Toronto, will be put on hold until pricing is more stable.
Of the major markets in the Emerging Trends survey, Vancouver ranks the highest in potential for investment and development. Toronto comes in third in the study, with concerns issued over the city’s numerous new and unoccupied condo and office towers. Ranking at the bottom end of the study is Calgary, which is still suffering from overbuilding in both the residential and commercial spheres.
Edmonton Property Report
Airports Authority Sued Over City Centre Redevelopment
Efforts by the Edmonton Regional Airports Authority to redevelop City Centre Airport have been challenged by a regional carrier. Airco Aircraft Charters, a City Centre tenant for 22 years, has filed a lawsuit, asserting that the authority is violating a 25-year lease. Airco also alleges that the authority’s decision not to renew Airco’s operating license constitutes oppression, and bears no relation to Airco’s overall performance. The airline signed its latest license agreement with City Centre Airport in 2008.
Airco is seeking to protect its sublease by filing a temporary injunction, which would prohibit the authority from altering its lease until 2054. A permanent injunction is also sought to prevent such activity on the part of the authority until 2054.
Airco Aircraft Charters was established in 2008 following the 2007 bankruptcy of Peace Air. It is the only carrier with scheduled flights and charter services from City Centre to Grande Prairie.
The airline’s owner, Mary Anne Stanway, chairs the Kingsway Business Association, which has been lobbying against a reduction of services at City Centre. Following a referendum in 1996, a majority of scheduled flights were relocated from City Centre to Edmonton’s International Airport.
Edmonton Property Report
Not Enough Homes for Sale in Many Canadian Locations
According to a survey by Royal LePage there are not enough homes available for sale in southern Ontario and other Canadian locations. Since the recession has loosened its grip, home prices are normalizing and sales are up due to low interest rates and affordable pricing.
A two storey home in Canada goes for an average of $409,335, up 0.1 percent over the same period last year. Bungalows averaged a 0.06 percent increase, pricing out at an average of $341,146 and condos rose 0.09 percent to price out at $243,748.
Because of the shortage in available houses bidding wars have started in such locations as Toronto, Montreal, Moncton, Calgary, Edmonton, Victoria, Vancouver, St. John, N.B. and St. John’s N.L.
The price corrections in 2008 were more significant in Western Canada, and British Columbia and Alberta have seen a slower recovery than in the Atlantic Provinces. Quebec and Ontario’s recovery even produced a slight gain over the previous year.
Edmonton Property Report
Canada’s Growing Real Estate Market
Canada’s housing market should see considerable growth in the final quarter of 2009, according to reports released by real estate firm Re/Max. The report cites low interest rates, suppressed demand, and greater affordability as reasons for the recovery that is now underway in the Canadian real estate market.
Vancouver, with housing sales up 14 percent from last year, is leading the way in the Canadian real estate market recovery. Re/Max contributes much of the activity in Vancouver to first-time buyers, who previously could not afford housing. The average housing prices in Victoria are down about 5 percent from 2008.
In Alberta the housing market is recovering as well, despite continuing economic concerns from the uncertainties in the oil and gas industry. Housing sales in Calgary are on par with 2008 levels while in Edmonton they are up by 6 percent. Average housing prices in Alberta are down 5 to 7.5%.
In Saskatchewan, Manitoba, and Ontario as well as in the Atlantic Provinces the average prices of homes have actually increased. The greatest increases are being seen in the Atlantic Provinces, boosted by recent successes in the oil industry, they are seeing average prices up as high as 18 percent.
Edmonton Property Report
Canadian Housing Turning Around
The Canadian Real Estate Association is reporting that the housing market in Canada is turning around and last July showed the largest year-to-year increase in two years. This group is based in Ottawa and they represent over 100 boards from coast-to-coast.
The actual numbers reported for last July amounted to 50,270 units sold, an 18.2% increase from the same time last year. This was also the first time sales had broken 50,000 units in the month of July ever. This trend is due to the popularity of a five-year, fixed-rate mortgage that can still be had for less than 4%. Variable rate mortgages are also still holding at 3% and expected to stay there until at least next summer.
Dale Ripplinger, president of The Canadian Real Estate Association, was quoted as saying, "The difference in the resale housing market now, compared to the beginning of the year, is night and day and nowhere is this more evident than in the West.” He continued with the fact that, “Homebuyers recognize that interest rates and prices have bottomed out, and are taking advantage of excellent affordability before prices and interest rates move higher."
Some cities are faring better than others. At the top is Vancouver, whose sales were 90% up from last year while Toronto and Edmonton were at 28%. Ottawa, as a whole, saw growth at 11.5%.
