Calgary Economy
 

Thread to talk about the Calgary economy.

Sign o' the Times
 

John Torode's house looks to be up for sale. This can't be a good sign for the East Beltline.

Looks like Cardel's feeling the pinch--the east-side luxury boxes at McMahon Stadium have been hastily re-branded as the "Executive Clubhouse"...

Bit of a gong show right now at Genesis Land Development, based on a couple of recent releases:

Genesis Land Development Corp. - Appointment of Interim Chief Operating Officer and Interim Chief Financial Officer (17 Apr 2009)

Genesis Land Development Corp. - Appointment of Interim Chief Executive Officer (24 Apr 2009)

Nortel/Flextronics Calgary Closure
 

Nortel and Flextronics are all but gone from Calgary now. The former manufacturing facility, offices and property have been sold to the City of Calgary. The City will be taking the site over from Nortel on June 15th. The Calgary Police Service is taking the 300 000 sq. ft. place over. We had a reunion this afternoon for all those who worked for Nortel and Flextronics in Calgary from the 1980s to today. It was really great to see folks that I worked with over the past 6 years. I won't necessarily miss the work, but the people I worked with are irreplaceable. :cheers:

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Office furniture maker closes Calgary plant: 600 jobs lost

CHQR Newsroom
8/18/2009

600 jobs are being lost in Calgary as U.S. based office furniture maker Haworth Incorporated is closing its Calgary plant and moving the operations to Michigan.
100 jobs will be maintained in Calgary at a local showroom and office.
Calgary's loss will be Michigan's gain, as the company says 500 people will be hired at its Holland, Michigan campus.
One of the reasons for the move is that haworth is expecting a 13-year, $22-million tax incentive from the state of Michigan.
The move is expected to be complete by 2010.

Dude, these four guys without heads just rode by my window on flaming horses,

I'd hope this was the right spot for this:

Former Calgary Flame sets new real estate record in Calgary

A mansion built for former Calgary Flames goalie Mike Vernon has sold for $10.3 million, setting a new residential real estate record in the city.

The beautiful home is in Elbow Park and is a stunning 12,700 square feet.

It has custom inlay hardwood, limestone and marble floors, antique fireplaces, and even French doors that lead to river vistas.

Despite the hefty price tag, Vernon's property sold in just six weeks and came down only slightly from the listed price of $10.5 million.

The realtors who sold the home had a number of offers, and tell the Calgary Herald they think the market is quite strong right now.

A local economist says this may be an indication the housing market in Calgary is still relatively healthy.

The previous record sale in Calgary came in June 2008.

It was a six bedroom house in Crescent Heights and went for $7.5 million.

source

With Michigan facing 20%+ unemployment in many areas, I'm not surprised the government is basically buying jobs for its residents.

They'll probably also chop their wages budget in half or more.

This is where Flextronics manufactured Blackberries for RIM right?

I can't understand what financial benefit moving the bulk of this operation to MIchigan! I understand their probably getting some form of tax break, but are they also saying that they don't have confidence in the economy of the western half of this continent. To me, and stats would prove it, that is were future growth is, not the east... IMO... I just hate seeing these jobs go.

Millions of dollars in tax breaks, and much reduced employee wages. It's a pretty simple calculation. The company will save tens of millions of dollars.

Imperial's talking about an oilsands expansion that they figure will be profitable at $30 oil.

What ever happened to all the doomsayers that claimed oilsands only work with $100+ oil?

If Imperial is anywhere close to correct on this, expect another oilsands boom in short notice once capital markets finish with their shakeup.

$30 to be profitable? Wow, with the kind of money Imperial will start to make they can build a 1000' tower :D

Natural gas prices have a lot to do with how profitable an oilsands project is. Assuming they use gas for fule (which a lot, if not all of them do) then the current state of $3 to $4 gas makes a huge difference. Compare that to last year when gas was at least double what it is now.

haha sick. that would be cool.
heres a question, how far south of downtown would they have to build a '1000 foot tower (or how far away i guess) in calgary with the shadow by-law? i guess they could build it across the river, but there isn't any downtown on that side so it would be silly at this point.

Yup. It offsets the doomsayers who complain about natural gas prices being so low as to ruin our economy. If gas is low enough, oilsands become VERY profitable. And vice-versa. It's a nice balance in the end.

There are spots in downtown where 1000' would work just fine (I believe Wooster or someone has actually ran the math on this). Including Imperial's lot on 6th Ave.

Freeweed; I acknowledged the tax breaks, but I don't think the labor is that much less. Also, future transportation cost to get the product back to the western US or Canada. Or, as I stated before, does the company think the potential for growth won't be in certain goegraphical areas? Sounds like Imperials' 1000 footer is taking center stage for now.... I wish.

It would be nicer if gas prices found a happy medium. The province is getting absolutely killed right now by the current prices. Drilling is way off, and I read an article last week estimating 25 000 direct job losses in the drilling sector this year alone, and that's not ocunting indirect spinoff jobs that have been lost. Plus, Alberta makes the bulk of it royalties from gas. So while it may breathing a little life into some oisands projects, it is coming at a very heavy cost to the 'other side' of the industry (the conventional side).