From the Western Investor:
Moose in motion
Moose Jaw now ranks as the most cost-competitive
municipality in the midwest
Downtown Moose Jaw: military payrolls, construction
and agriculture fuel the economy.
Moose Jaw is a southern Saskatchewan urban centre with historic charm that is experiencing record-setting construction and, perhaps, the strongest housing market in Canada.
"The future continues to be bright for Moose Jaw," said Mayor Dale McBain. "2008 was a good year for construction. Our population has risen to 34,156, our retail sales have been good, and we are ranked as one of the best cities in North America in which to do business."
The Moose Jaw mayor was referring to the 2008 KPMG Competitive Alternatives Study, which listed the city first for cost competitiveness in the North American Midwest, fourth in Canada and 12th overall among the 136 cities studied in 10 countries.
For the second consecutive year, Moose Jaw also set a construction record. The value of 366 building permits issued in 2008 was $54.3 million, surpassing the previous all-time record high for the city set in 2007 of $40.8 million.
"In the past year, we opened a new subdivision in South Hill called West Heath and have already sold 23 of the 35 lots," McBain said.
These lots were partially serviced in 2008 and will be completed by installing streetlights and paving this year. Lot prices ranged from $40,500 to $54,000. Moose Jaw received $3.6 million in interest-free loans from the Saskatchewan Infrastructure Growth Initiative to assist in developing the first two phases of the West Heath subdivision.
"We have also sold the land for a new 600-lot West Park subdivision to a Saskatoon developer, Moutney Homes," the mayor said.
Housing
The residential vacancy rate is 1.6 per cent, according to Canada Mortgage and Housing Corporation. Saskatchewan has no rent controls. Housing prices parallelled the rise across Saskatchewan over the past few years.
"The average house price in 2008 was $176,000, compared with $129,043 in 2007, which was up 28 per cent over 2006," said Amber Tangjerd, president of the Moose Jaw Real Estate Board (MJREB).
"The sale price for residential homes has increased dramatically over the last three years. Multifamily homes have also experienced a major increase in price and sales. Our condo market increased during the same period, but slowed down during late 2008."
She said there were several reasons for the strong real estate market.
Coming home
"People are returning 'home' from out of province," Tangjerd said. "Saskatchewan is seen as the place for investment right now, and Moose Jaw offers a stable market. We're a smaller city with a lower crime rate and good infrastructure."
Jim Millar, executive officer of MJREB, said people also find the city's location, 75 kilometres west of Regina, desirable.
The city, 175 kilometres from the U.S. border, is nestled in a picturesque valley where the Moose Jaw River and Thunder Creek River meet. Its location on the Trans-Canada Highway, between Calgary and Winnipeg, provides easy trucking access to Canadian markets and ports serving international markets.
The city is also the CP Rail Canadian terminus of the Soo Line to Minneapolis and Chicago and home to the largest main-line refuelling facility on CPR's North America Network.
Yara Belle Plaine Inc. (formerly Saskferco), Mosaic Company, Canadian Salt Company Ltd. and Terra Grain Fuels operate in the corridor, with many of their employees calling Moose Jaw home.
Costly projects
Work has begun on a new hotel and retail enterprise on River Street that will have a 1920s theme. Local entrepreneurs have assembled the property and have started demolition of existing buildings. But it is the new sports centre that is generating interest, not all of it positive.
The city is trying to replace its 40-year-old Civic Centre, affectionately known in hockey circles as the Crushed Can because of its inverted roof. Soaring costs, however, may crush the plans.
"The new multiplex is very important to the city. This is the largest project that the city has undertaken," said McBain.
The project has fractured rather than united the community, yet the mayor remains optimistic about the outcome.
City residents were to vote February 25 in another referendum on the project. This was the result of a petition calling for another referendum last fall. Local resident Larry Hunt submitted 4,280 petition signatures during an October 2008 city council meeting. He needed only 3,213 signatures to force a referendum. Under provincial law, Moose Jaw city council was required to submit a referendum question to voters.
Hunt had organized the second petition on the multiplex, with the aim of giving residents the vote on whether they want to spend an additional $19.5 million, on top of the $15 million already approved by citizens.
A 2006 referendum had asked voters if they wanted the city to commit to a $15 million multiplex, which the majority of voters approved. Hunt believes council violated that referendum result when voting for a $61.3 million project, of which the city was paying $34.5 million.
(Results of the Moose Jaw referendum will appear in the April edition of Western Investor.)
Meanwhile, city council has approved a $19.3 million expansion to the Moose Jaw Union Hospital. The province is completing a feasibility assessment of the hospital to determine where best to spend the money.
Primary industries in the Moose Jaw area include agriculture, including cereal and special crops, cattle and hogs; manufacturing and processing; mining; service; and retail.
Tourism is boosted by the popularity of attractions such as the soon-to-be-expanded Temple Gardens Mineral Spa, nearby Chaplin Nature Centre and Casino Moose Jaw. The city's unique historic tunnel system reflects illicit activities of the past as it continues to draw tourists keen to explore "The Chicago Connection." (Legend has it that gangster Al Capone once hid out here.)
Military link
The military has already discovered the advantages of conducting business in Moose Jaw.
The $2.85 billion 20-year NATO Flying Training in Canada (NFTC) program is based at the 15 Wing Moose Jaw airbase.
The NFTC is a joint venture between the federal government and Bombardier Military Aviation Training, providing basic and advanced pilot training and fighter pilot training to NATO and its allies, including European air crews. A significant employer, the base is also home to the famed Snowbirds aerial acrobatic team.