CALGARY DEVELOPMENT - Media Article Repository

[atlas_inc]

$550M tunnel plan skirts reserve
Cut-and-cover route could spare Weaselhead
Kerry Williamson Calgary Herald Tuesday, July 03, 2007

Proposed connector routeA $550-million option to solve the city's southwest gridlock problems will be taken to the public in the fall, a plan pitched as a saviour for close to 100 homes as well as benefiting the pristine Weaselhead delta.

The plan includes the construction of a sub-surface road through a narrow section of the Glenmore reservoir, extending from 37th Street in the north to Anderson Road in the south, and a separate road beneath a service right-of-way connecting up with Crowchild Trail. It replaces an older plan to build a tunnel under the Weaselhead natural area, a proposal that had been officially shelved because of high costs and concerns over damage to the wetlands. It is one of four options being looked at by officials uneasy about any deal with the Tsuu T'ina band and the province, a deal which has yet to be ratified by either side.

It has been developed privately, with the support of Ward 11 alderman Barry Erskine. "In the absence of any deal with Tsuu T'ina, we have to look at other options. There are a number of options and they need to be explored," said Erskine. "We are facing severe gridlock. We can't leave this in limbo, doing nothing is not a solution. "We must find a solution that respects the residential housing and the environmental issues." The proposal will be taken to the public at an open house in September. The open house is expected to include other plans, including the long-discussed road through Tsuu T'ina land, a bridge across the Weaselhead, and the new proposal, called the Ultimate, which itself has several variations.

The Ultimate proposal would involve an eight lane "cut and cover" road or causeway with connectors to Glenmore Trail both east and west. A second cut and cover road would be built on an electrical service lane near 66th Avenue S.W., connecting with Crowchild Trail, enabling the burial of utilities and the development of a green space. The plan would allow the development of a constructed wetland, and stay well away from the Weaselhead, a point of contention with residents and environmentalists. Proponents say the wetland would improve the quality of Calgary's drinking water, putting off the need to expand the city's water treatment plant. Engineers involved in the project peg the cost at about $550 million, and claim it would protect 99 homes and about 200 condo units near 37th Avenue S.W. that could be lost if the road is developed in other ways.

Members of the Lakeview Community Association were given a 90 minute briefing of the proposal last month. It comes six months after several aldermen called for a detailed review of alternatives to the Tsuu T'ina ring road. Talks between the band and the province continue. The two sides are waiting for a land appraisal, something that was expected to be completed six months ago. Morten Paulsen, spokesman for the band, said talks "are fruitful and continuing, but it's a complicated process." Scott Blasken, president of the Lakeview Community Association, told the Herald that a ring road through Tsuu T'ina land remains the preferred route, however a sub-surface road would be the next best alternative. "Our stance is that the provincial/Tsuu T'ina ring road is still the priority way to go," said Blasken, who hopes to meet with Erskine about the plan. "But compared to a surface road, we would much rather prefer having something underground. In that regard, we would prefer to have a trench and cover."

Blasken said consultation with all communities involved is key to getting the job done properly, "but ideally, we'd like a ring road." Blasken said his community would jump at the chance to take part in an open house to discuss all possibilities for the route. "I have no idea where this thing is sitting at this point. Whoever it is that's planning this or financing this, they need to drive that fact and keep the constituents involved," he said.
"We are sleeping with the elephants -- if they roll over in the middle of the night, we are going to feel it." Maurice Tims, of the Better Way to Go association -- formed in 1995 to combat the city's plan to widen 14th Street S. -- supports the new proposal. He said it will save houses and benefit the environment through the constructed wetlands. "A surface route and a bridge would impact a lot of people, especially in Lakeview and this one they won't even see," said Tims. "And the crossing of the delta would put in a little dam which would effectively give you a wetlands."

kwilliamson@theherald.canwest.com
© The Calgary Herald 2007

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Towers, hotel to rise on Eau Claire landmark
Nearly seven blocks to be reshaped
Colette DerworizCalgary Herald Wednesday, July 25, 2007

Blaise McNeil, owner of the 1886 Cafe at Eau Claire for 22 years, says he was left out of the loop on planning for redevelopment of the area.A bold plan to demolish the beleaguered Eau Claire Festival Market and replace it with several new buildings -- including up to six highrise towers -- is drawing some anxiety from its neighbours. City council signed off this week on the sale of 2.85 hectares of municipal land to Harvard Developments Inc. of Regina. The deal, worth $12.4 million, will kickstart the redevelopment of nearly seven blocks with a hotel, residential units, restaurants, retail outlets and a grocery store.

"A lot of people have had high expectations for the Eau Claire Market, and it never really delivered," said Ald. Druh Farrell, whose ward includes the area. "But we still have those high expectations." When the city agreed to sell the land, it included a clause that allowed council to sign off on the drawings for the redevelopment. "They have to be of extraordinary quality," Farrell said. "It can't just be an ordinary development."

A Herald review of the plans -- part of a land-use amendment before the city's planning commission on Aug. 9 -- show the redevelopment saves only the historic smokestack and a building from the Eau Claire Lumber Co.
The building, which has been home to a trendy cafe for nearly 30 years, will likely be relocated closer to the Bow River and its busy pathways.
"We're going to be here," said Blaise McNeil, owner of the 1886 Cafe. "That's all we've heard. . . . It's stressful, it's stressful for everyone." The plans show a pedestrian-friendly environment with tree-lined streets and outdoor patios, with underground parking lots and bicycle stalls. All of the buildings, which include everything from apartment units to a high-end hotel, are covered in modern glass and light-coloured finishes. McNeil, who has owned the 1886 Cafe for 22 years, said he's been left out of the planning loop. "It'd be nice to know what is going on," he said as he sat on the patio outside his historic cafe, across the street from the brightly coloured market, which he agrees wasn't designed well. "It's a beautiful big space, but it's wasted," McNeil said.

Another business owner who leases two spots inside Eau Claire Festival Market said he's looking forward to the redevelopment. "Having a high-end living environment in the area will bring better revenues into the businesses and a better environment to the downtown core," said Nino Acosta, owner of Latin Corner Dance Studio and NA Dance Wear. But he worries the long-term gain will come with some short-term pain for businesses during the construction phases, which must be finished within 11 years or the developer risks losing the land back to the city. Harvard Developments told the Herald this week that, with all of the proper approvals, they plan to start development between December and June 2008. Visitors to the market Tuesday said they're concerned the area will lose its charm once highrise towers and underground parking lots replace the festival market building. "It's quiet, it's not like Chinook (Centre). It's a more peaceful environment," said Calgarian Wayne Bennett. "It's an artsy environment."

Bennett and his wife, Joyce, said the developer shouldn't tear down the market. An out-of-town visitor, however, said that while it has character, the building definitely needs work. "There's not much in there," said Ottawa resident Gae Taller. "But I would hate to see more highrises. "I think you have enough." Farrell, however, said the redevelopment plans have the potential to create a vibrant urban village in Eau Claire. "That was a concern -- that they would build the residential towers, and the market would stay as it is," she said. "But the market needs to be redeveloped for it to contribute and be what it should be." The Ward 7 alderman added that the community has never had the amenities to allow it to thrive.

On Monday, city council also approved changes to the land use for a controversial redevelopment proposal on the corner of 4th Avenue and 8th Street S.W. The changes will allow the city to apply for a development permit for a 220-unit apartment building, which includes 88 units of affordable housing and a fire station.
cderworiz@theherald.canwest.com

© The Calgary Herald 2007

[atlas_inc]

Population to rocket 225,000 in a decade
staggering growth strains infrastructure
Kim GuttormsonCalgary Herald Tuesday, July 31, 2007

It will cost Calgary more than $7 billion over the next decade to build enough roads, fire halls, police stations and rec centres to keep up with the rapid pace of a city expecting to grow by another 225,000 people during that time, a civic report says. More critically, two-thirds of that future bill remains unfunded, while another $4.4 billion is needed for maintenance and upgrades to existing infrastructure, the annual accommodating growth report states. In the next five years alone, Calgary's population is projected to hit 1.1 million people, requiring another 31 square kilometres of land to house them -- the majority in new communities on the city's edges. Those 100,000 people, equivalent to a city larger than Lethbridge, will need five new park spaces, nine pathway projects, three more police stations, nine rec centres and nine additional fire stations, states the report. "The numbers speak for themselves," said Mayor Dave Bronconnier, who asked that a price tag be attached to the infrastructure deficit outlined in the report. "Critical, strategic decisions need to be made. "It may be a reality check or a wake-up call for some people to realize the cost of growth."

David Watson, the city's general manager of planning, said the accommodating growth report, a snapshot of the challenges the city faces over the next five to 20 years, has been put together every year since 2002. "It gives a really good sense of where the priorities are and, perhaps, where the shortfalls are," he said. "It doesn't say how we're going to solve it." Bronconnier has been waging a war with the province over Calgary's boomtown needs, and says this report simply underscores the point he's long made. "We know what the cost of growth is, we know how much money's going to be needed in the future, what we don't have is the identifiable funds in terms of a long-term funding agreement with the province," he said. While the Stelmach government, in its April budget, unveiled a municipal infrastructure deal that will provide $400 million to Alberta communities this year, the mayor and others have argued too many strings means it can't be spent on local priorities. It will ramp up to $1.4 billion by 2010-2011. But more than three months after the money was announced, the province is still finalizing guidelines for how the first-year money can be spent.

A spokesman for Municipal Affairs Minister Ray Danyluk -- who was attending a session in Vermilion on Monday on what rules municipalities would like to see in future years -- said the first-year guidelines are expected by early August. The city maintains that it needs a commitment on how long it can expect the funding -- set to be the equivalent of what the province collects in education property taxes -- to continue. Funding individual projects as they come up, rather than putting money in place that can be drawn upon for longer-term programs, would be a "recipe for disaster," Bronconnier said. Alex Broda, the city's director of transportation planning, said major projects -- whether the Glenmore-Elbow-5th Street interchange or the proposed west leg of the LRT -- need time to plan before the first shovel goes in the ground. "These things don't happen overnight," he said. "With any funding, as long as it comes through in a manageable fashion, we can plan for it and so can the industry plan for it."

And while much of the attention gets focused on what's missing and needs to be built, it's also costly to maintain what's already here, recreation director Kurt Hanson said. "I think we've got a mutual challenge in keeping up with what we already have and meeting growth demands," he said. The recreation department needs $153 million in new infrastructure over the next five years, while only $30 million of that is funded, the report says. The existing rec centres and pools require $139 million in maintenance and upgrades, while just over a third of that has financing. Broda said buses and LRT cars are a good example of the need to balance between new and what's here. As the city tries to move the tens of thousands of new people around the city, it purchases more buses and light rail vehicles. "More buses means more mechanics are needed," Broda said. "We need maintenance facilities to accommodate LRT cars. Currently some are stored outside, it's not good for the vehicle. They don't last as long, they need to be replaced sooner. "It's a snowballing effect. The more and more infrastructure we have, the more and more maintenance it needs."

kguttormson@theherald.canwest.com

City Growth Fast Facts
- Population: Calgary is expected to grow by 225,000 people over the next decade.
- Infrastructure: More than $7 billion will be needed for new roads, fire halls, police stations and rec centres.
- Land: In the next five years, another 31 square kilometres will be needed for housing.

© The Calgary Herald 2007





Calgary's suburban development 'unethical'
Urban sprawl expected to grow 40% by 2026
Deborah TetleyCalgary Herald Tuesday, July 31, 2007

Moving to the 'Burbs: In the four years between 2002 and 2006, new suburban communities exploded by about 137,000 people -- representing nearly 120 per cent of the city's population growth. Those numbers are expected to continue to soar along the outermost fringes of Calgary until 2026, when the suburbs' population will spike by 40 per cent to 577,000 people.; Dark areas on map of Calgary represent areas of expected growth in each segment of the city.; Source: Accommodating Growth 2007, Monitoring Growth and Change Series
Photograph by : Darren Francey, Calgary Herald

From the front step of her new home in Evanston, Tassy Gavet looks out onto a brown, barren and dusty scene. While she awaits someone from the city to grade her property, she is kept from laying sod or planting trees, leaving the dust flying through her screens during the season's hottest and driest month. For Gavet, a dusty home during construction in her cul de sac comes with buying "more house for less money" in a new community -- and the only downside she sees to living in the sprawling suburbs. That, and the constant teasing from her downtown-dwelling sister. "She jokes that I live in Evanston, Alberta, because I live so far from downtown Calgary, it's like I'm in another city," Gavet said. Gavet, her husband, Nigel, and their two children number four of the 145,230 people living who are living in new suburban Calgary communities in 2006 -- representing 15 per cent of the city's population of 991,759 last year.

In the four years between 2002 and 2006, new suburban communities exploded by about 137,000 people -- representing nearly 120 per cent of the city's population growth. And, according to an annual report on growth released by the city, those numbers will continue to skyrocket along the outermost fringes of Calgary until 2026, when the suburbs' population will spike by 40 per cent to a staggering 577,000 people. The figures are contained in a report entitled: Accommodating Growth 2007, Monitoring Growth and Change Series. The northwest, where Gavet moved in December, is one of the city's fastest-growing and most heavily populated areas.

While the population is a little more than 170,542 in new and established neighbourhoods combined, it's expected to grow by more than 9,000 over the next two decades. An urban planner with the University of Calgary calls the march to the fringes "unethical." The mayor and other city officials call it "necessary." The ward alderman vows the planning will be "complete and thoughtful." Helen Larocque said while the massive growth is predictable, yet unavoidable, steps are being taken to build higher-density areas and put appropriate infrastructure in place. "Unlike in the past, when we built communities in the north before amenities, fire halls and libraries, we are taking a very thoughtful approach to planning," Larocque said Monday.

To the east, west, north and south, new suburban developments and established communities are filling out and will continue to do so for the next two decades. In the north, for instance, the new community of Sherwood in Symon's Valley is encroaching on the MD of Rocky View toward Airdrie. Bev Sandalack, co-ordinator of the urban design program at U of C, said "it's a shame that we're gobbling up all of Calgary's gorgeous landscape" to accommodate growth, rather than building more mixed-use, high density communities. "It is unethical to be continuing to develop the way this city is," Sandalack said.

Mayor Dave Bronconnier said that while the city is trying to put more people into established areas, with the rate Calgary is growing, there are no real alternatives to growing out. "With as much intensity as we're putting on the existing communities, people still want the ability to live in the suburbs, raise their families, so that puts other pressures, whether it be on rec facilities, schools, on extensions of LRT lines," he said. But the city is also increasing the density of those new suburbs. "What we've done, as a policy decision, is force the density to go almost double that of suburbs that were built 20 years ago," Bronconnier said. "Double the density, but it still means that growth will occur." The mayor said the city is also lobbying the province to make legislative changes that would make it easier for growth to pay for itself, such as applying development charges.

While the city now negotiates with the development industry about what new communities should pay toward their new roads, police stations and rec centres, Bronconnier would like to see it legislated, so the fees better reflect the actual cost. Gavet said despite the number of people living in her northwest corner of Calgary, her neighbourhood has retained a small-town feel. "I can go the park with my kids and meet up with 15 other moms," she said. "It's definitely a big city, and we are really far from the heart of it, but we have everything we need."

dtetley@theherald.canwest.com.

© The Calgary Herald 2007

[atlas_inc]

Toronto, Calgary next targets for Opus boutique hotels

Room rates at Vancouver site average $329 to $339 per night

With Vancouver and Montreal now covered, Opus Hotel owner John deCourcey Evans has his sights on Toronto and Calgary to complete a Canadian quartet of upscale boutique hotels bearing the Opus brand.

Evans' Trilogy Properties bought the three-year old Hotel Godin in Montreal last month and changed the 136-room property's name to Opus Montreal -- five years after the first 96-room Opus Hotel opened in Yaletown.

Evans said new Opus hotels in Toronto and Calgary are the next obvious goals because those are the markets that can afford the rates Opus needs to run five-star boutique properties. He expects Opus Vancouver will achieve average room rates of $329 or $339 this month.

"The top-performing properties in the hotel industry today are boutique properties," Evans said in an interview. "It's an entirely different business when you fill just 90 rooms a night, rather than 400. It's all about rate so we won't sacrifice rate for revenue."

Trilogy entered the hotel management business almost by accident in 2002 because the Yaletown property was supposed to be a limited partnership operated by U.S.-based Kimpton Hotels.

But the units didn't sell out so Trilogy scrapped those plans and took over the property ownership and management itself. Five years later, it sees itself as a national brand.

"In the U.S., many one-off boutique hotels have become global brands and expanded their operations," Evans said. "Given the awareness of our brand, we have an opportunity to do the same thing."

He mentioned the 60 Thompson Hotel in New York -- which recently bought the Roosevelt Hotel in Los Angeles -- and the Mondrian Hotel in Los Angeles as examples of individual hotels that have expanded into national brands.

Evans prefers to build new hotels but made an exception with Montreal because it was a unique opportunity to expand quickly into a vibrant market. He said the hotel suffered from not having liquor licences in place from the outset and it was taken over last year by its lenders -- the Caisse de depot et placement du Quebec.

Evans wouldn't reveal a purchase price but said it was less than the estimated hotel replacement cost of $35 million. Opus Vancouver was a $24-million project and Evans said future Opus hotels will likely be financed by non-Canadian lenders.

"It's hard to finance hotels in Canada because chartered banks here are quite risk averse and only in the market in a limited way," he said. "U.S. lenders are more open to getting involved in the Canadian hotel industry."

Evans feels true boutique hotels can't have more than 150 rooms because they lose their intimacy if they become any bigger. He also feels they should be stand-alone properties, not 10 floors of a 40-storey highrise, and he has scoured the Calgary market unsuccessfully for two years now looking for a great building site.

Evans said four Opus hotels in Canada would be enough because he's not looking for economies of scale. Each property has to work on its own.

He feels it's a great time to expand in the Canadian hotel sector because the economy is strong and the country continues to attract many high-end international travellers. The high Canadian dollar has hurt U.S. traffic to Canada, but Evans feels that trend can be overcome.

"We have to change the thought that you only come to Canada because it's a good deal," he said. "You have to come to Canada because it's a world-class experience and we're going to charge for it because we're not a discount destination."

So could there ever be an Opus property in the U.S.? "I guess you never say never," Evans said.





Building permit values down
June figures still second highest ever after May's

Geoffrey Scotton, Calgary Herald
Published: Saturday, August 04, 2007


Building permit values in Calgary and Alberta dipped in June -- in the wake of a massive permit issued in May for EnCana Corp's new headquarters -- but construction intentions continue to climb in both jurisdictions, paving the way for annual records.

In fact, June's $697 million of permits in Cowtown was the second-highest level ever after May's $1 billion-plus, an all-time record was set in Edmonton at $402.8 million and, province-wide, residential permit values surged 46.4 per cent from May to a record $983 million.

Statistics Canada said Friday the value of permits issued in Alberta in June was $1.5 billion in June, off 15 per cent from the $1.7 billion recorded in May. However, on a year-to-date basis, the record $8 billion in permits issued in the first half of the year was 27.6 per cent higher than the first six months of 2006.

May's figures included a $600 million-plus permit for EnCana's The Bow building in downtown Calgary and the lack of a repeat in June was felt in numbers locally, provincially and even across Canada, where permits edged down 0.4 per cent in June to $6.9 billion. Nonetheless, it was the second-strongest month ever (after May), with non-residential permits off 10 per cent to $2.8 billion while residential climbed 7.4 per cent to $4.1 billion.

Analysts were unanimous in their assessment that despite the decline June's figures were incredibly strong, further evidence that Canada's construction industry is going full-out and more fodder for advocates of raising interest rates to soothe a frenzied Canadian economy that is operating above capacity.

"This is in fact an incredibly strong report and yet more evidence that the construction sector is absolutely on fire," said BMO Nesbitt Burns Inc. deputy chief economist Doug Porter. "That permits were basically unchanged in June is an impressive show of strength."

Most forecasters had expected a 9.7 per cent decline, said RBC Financial Group senior economist Dawn Desjardins.

"The firm tone in permit demand in the second quarter underlines the economy's strong momentum and supports the case for the Bank of Canada to keep pushing the overnight rate higher," said Desjardins.

In Alberta, a 166 per cent increase in multiple-unit residential permit value lifted the overall Alberta residential figures to a record and elevated national residential permit value above $4 billion for only the second time.

gscotton@theherald.canwest.com






Average home price surpasses $500,000
Market has likely hit plateau, say analysts

Geoffrey Scotton, Calgary Herald
Published: Saturday, August 04, 2007


A flurry of sales of million dollar-plus homes in July pushed Calgary's average monthly single family home price above $500,000 for the first time, the Calgary Real Estate Board said Friday, as other indicators suggest broader prices may have plateaued.

The board said the average price of a single family home in metropolitan Calgary rose more than 1.8 per cent from June and nearly 21 per cent from July, 2006 to $505,920.

"I don't think it will represent a psychological barrier to buyers at all," said Canada Mortgage and Housing Corp. senior analyst Richard Corriveau of the half-million-dollar marker.

He noted longer-term mortgages are keeping higher-priced homes manageable for many, while "those people that don't need a mortgage and have the luxury of paying in cash, that $500,000 milestone isn't going to make them blink."

Ron Stanners, president of CREB, said the $500,000-plus figure is an "anomaly" caused by 59 $1-million-plus homes changing hands in July versus 45 in June.

Still, Stanners, who predicted earlier this year that the average monthly price would not surpass $500,000 in 2007, was somewhat chagrined Friday.

"They say eat (crow) when it's warm, it's a lot easier to swallow," Stanners said, nonetheless standing by his belief prices generally are set for a slowdown. "I think it will bear out over the balance of the year. If we see the million dollar sales drop off in August, that average will drop down."

Sales volume in July was 1,495, down from the 1,757 recorded in June and roughly comparable to the 1,425 seen in July 2006.
However, the average days on market has mushroomed to 35 from 29 days in June and 18 in July 2006.

Stanners noted that Calgary's median price slipped by more than $4,000, or nearly one per cent, in July to $435,000. The price, which indicates the level at which an equal number of homes sold above and below the figure, was still up 13.25 per cent from July 2006.

"My guess is that prices are actually levelling right off and they may even slightly decline a bit. I think we'll see it next month and at the end of the year we still will be below $500,000.

"If the crow gets bigger I'll just have to swallow more," Stanners said.

He also argued that the median price is a far better benchmark for measuring the level and tone of the market than average price, which can be thrown off by high-priced sales and has a bias upward due to market structure.

"It's more realistic, it's more telling of what's really going on out there," said Stanners.

Amongst condominiums, the average price fell to $318,582 from $323,269 in June, a decline of 1.4 per cent, but still more than 15 per cent higher than July, 2006. The August median condo price was $297,900, up nearly 14 per cent from July 2006, but down 2.3 per cent from the $304,900 recorded in June of this year.

The CREB noted that inventory hit a peak for the year, rising to 8,972, however, new listings were waning, falling more than 23 per cent from June to 2,548 in July, a level 6.25 per cent below the additions made in July 2006.

In marked contrast to Stanners, Corriveau doesn't see much of a slowdown on the horizon.

"There's a lot of talk about price stabilization, but they're still up quite strongly and still increasing on a month-to-month basis," said Corriveau.

"There's no question that the market has softened and we've seen modestly weaker sales and a steep escalation in active listings -- but nonetheless, prices are still climbing. Month-to-month, we just saw a $10,000 increase."

gscotton@theherald.canwest.com

[atlas_inc]

Barron Building to get Platinum touch
Refurbished tower will still be home to Uptown theatre
Mario Toneguzzi Calgary Herald Tuesday, August 14, 2007

CREDIT: Leah Hennel, Calgary Herald
Mark St. Pierre, vice-president of Platinum Equities, says the company is redeveloping Calgary's first skyscraper, the historic Barron Building, which includes renovations to the Uptown theatre.Calgary's first office skyscraper will be transformed into prime downtown office space as part of a multi-million dollar restoration of the Barron Building.

The 11-storey office tower, which includes the Uptown Theatre, at 610 8th Ave. S.W., was built as a speculative investment to accommodate the needs of a booming oil industry following the Leduc discovery in 1947, says the Calgary Public Library, and the building played a significant role in establishing Calgary as the provincial capital of the oil industry. Platinum Equities Inc., which recently purchased the building, says it will undergo interior and exterior renovations "restoring the property to its former glory." Over the next 18 months, Platinum will oversee a $19-million redevelopment -- the building will include more than 80,000 square feet of office space and more than 4,500 square feet of main floor retail. Mark St. Pierre, vice-president of acquisitions and leasing for Platinum, said the downtown office market is short on space.

"New buildings will not be ready for another three to four years," said St. Pierre. "Buildings that are coming out prior to that have already been spoken to. So our market needs office space and the building can be delivered early and it can fit a need." Shariff Chandran, director of Platinum, said the vendor of the property has agreed to "lease the theatre (Uptown) back and he's renovating the whole theatre. We've got a long-term lease in place for the theatre. They want to preserve that." "This building has been sitting around for about 15 years. . . . We thought it was a good asset to purchase," said Chandran. "Timing was right. We could deliver a space before the new construction, the new product, was coming on line. So there was an opportunity there. . . . This building was existing. We didn't have to pour concrete. We didn't have to dig the hole in the ground."

St. Pierre said the main building redevelopment will include new elevators, mechanical and duct runs, and the current single-pane glass on the exterior windows will be replaced with double-pane, reflective glass. There will also be a full restoration and repair of the building's exterior. The general contractor is Kent Construction. The engineering firm for the project is AD Williams and the architectural firm is Marshall Titemore. Inside demolition has begun, including asbestos removal. Chandran said it will take about 18 months to complete the project with space ready for occupancy July 2008. The Barron Building doesn't have any parking, but Platinum is working with the city to come up with a parking plan for the renovated site. The Barron Building was built between 1949-1951 at a cost of $1.25 million. It incorporated office and retail space, a movie theatre (the Uptown on the ground floor) and the 11th floor penthouse residence of owner J.B. Barron, a lawyer, developer and theatre impresario, according to the Calgary Public Library.

Darryl Cariou, senior heritage planner with the City of Calgary, said the building was the first major one constructed here after the depression and "it's one of the few examples of an art deco, modern style office building we have in Calgary." "After the oil strike in Leduc in 1947, there was a need for oil companies to have office space and there was not very much office space anywhere -- Edmonton or Calgary," said Cariou. "It would have seemed more natural that the head offices would have been up in Edmonton. So Barron seized the chance and he built this office building as a speculative office building targeted to the oil companies. And they'd been spread all over the city in basements, in little offices. "This became the first site of the oil companies' head offices in Alberta and some people would say that's the reason we're all living in Calgary now and not up in Edmonton." Maggie Schofield, executive director of the Calgary Downtown Association, called the Barron plan "a great project." "It's always interesting to see people take what I would call an historical building . . . and really revive it," said Schofield. "We saw that with Flames Central taking the Palace. It's a lot of work. You really have to commend the people for taking those kinds of ventures on because it's a lot easier to build something new."

mtoneguzzi@theherald.canwest.com
Barron Building
- 610 8th Ave. S.W.;
- Built 1949-1951;
- Original cost $1.25 million;
- Original owner J.B. Barron, lawyer, developer and theatre impresario;
- 11-storey office tower built to accommodate a booming oil industry following Leduc discovery in 1947;
- Tower incorporated office and retail space, a movie theatre (the Uptown) and the 11th floor penthouse residence of owner J.B. Barron;
-- Source: Calgary Public Library

© The Calgary Herald 2007

[atlas_inc]

Comparing Calgary With New York


Taking a bite out of the Big Apple comparison

Calgary's footprint has recently been compared to that of New York City's, yet there are eight times more people living in New York. This comparison is meant to illustrate that Calgary is growing uncontrollably; however, the simple equation of dividing population by land area is simply incorrect when you consider Calgary's varied land use. For instance:

New York City: 8.2 million people / 830 sq. kms = 9,879 ppl per sq. km
Calgary: 1 million people / 745 sq. kms = 1,342 ppl per sq. km
By this logic, New York City is 7.4 times denser than Calgary.

The reality of the Calgary/New York comparison

While New York City is the most densely populated municipality in North America, it is only one small part of Metropolitan New York whose population of approximately 22 million people occupies 30,000 square kilometres and straddles three states.

The City of Calgary adheres to the UniCity form of municipal government. The premise of the UniCity model maintains that urban development is most efficiently and fairly achieved under one municipality, as opposed to the metropolitan form of government, such as New York's, comprised of multiple municipalities. The advantages of UniCity over the metropolitan form of government are the equity of service provision, standards and taxation, reduced fragmentation of municipal services and the efficiency of administration including seamless planning and development, and the protection of long term growth corridors.

View a graphical comparison between Calgary and New York City
With the exception of Staten Island, all the other boroughs that constitute New York City are experiencing dramatic out-migration. In fact, Manhattan's population in 1910 was almost double its present population. Most boroughs reached their peak population in the 1950s and 1960s.

Conversely, Calgary is a city with significant in-migration, as it continues to increase density in future developments. Existing neighbourhoods such as Bridlewood, Mackenzie Towne and Tuscany, as well upcoming communities like Seton, already reflect recommendations made in The City's Sustainable Suburbs Study (1995) to build more complete new communities. There are also extensive redevelopment plans for the Beltline as well as inner-city communities, such as Bridgeland, East Village and Garrison Woods.

Other examples include developing high-density projects around priority C-Train stations, changing the scale of neighbourhoods in terms of their land use, and dedicating more resources to purchase of additional LRT cars, buses, extending LRT lines and building more platforms. Transit statistics show, specifically during peak hours, we are starting to implement strategies that are getting people out of the car.

A more reasonable comparison

There are several ways to measure Calgary's built up area, depending on what areas are included. Calgary is unique from other cities in that it contains within its boundaries many areas not developed for housing or industry such as a reservoir, a provincial park, large regional parks (Nose Hill), landfill sites, an airport and other features which contribute to the overall perception of the city's size. Stretching 19 sq. kms, Fish Creek Park is one of the largest urban parks in North America, as compared to New York City's Central Park which spans 3.4 sq. kms.

[atlas_inc]

Now or never for East Village project
Richard White, For The Calgary Herald
Published: Saturday, September 01, 2007

Talk about "paralysis by analysis."

It's been more than 20 years since city officials bought up properties in East Village, knocked them down and turned them into parking lots, as in the song by Joni Mitchell.

Since then, there have been an endless number of studies, open houses, workshops and development plans on what should be done and how it should be financed.
Chris Ollenberger, president and CEO of Calgary Municipal Land Corp., inside the 1912-era Simmons Building in the East Village.

One of the plans was associated with Calgary's bid to host the 2005 World's Fair.

It is too bad we weren't awarded the fair, because if we had, the East Village, Victoria Park and Stampede revitalization would have been completed by now.

The current plan is for the city to form the arm's-length Calgary Municipal Land Corp. (CMLC) to develop city-owned land, not only in East Village but in the entire Rivers area from Manchester to the Calgary Zoo.

It is an ambitious plan, but not without controversy. Several aldermen, along with many investors and developers, have questioned why the city is involved at all.

They feel the city should sell their land to the private sector and let them do it.

There never is a perfect plan. The biggest mistake made over the past 15 years with the East Village is trying to create the perfect plan that will meet everyone's expectations.

What we need is a vision that is linked to reality, one that is flexible to adjust to changing markets and opportunities.

The current plan combines residential development at different price points with office development, a post-secondary campus and new public spaces animated with retail amenities.

Personally, I think this plan has the diversity and density needed to make the new East Village a very attractive place to work, live and play.

It is the financing of the infrastructure improvements -- now estimated at $50 million -- that is the controversial part.

The city is using Tax Increment Financing (TIF), which means the city will borrow money to fund the improvements today and pay it off with the new tax revenues generated by the new projects that get developed.

The risk is that there is not enough development to support the borrowing cost.

However, given that the billion-dollar Bow office tower is included in the TIF area, this risk has been minimized.

Oh, yes -- it isn't called TIF anymore, but is now known as the Community Revitalization Levy.

Leadership is vital to urban revitalization. Certainly, Mayor Dave Bronconnier and Ald. Druh Farrell have carried the torch for the past five years.

Now it will be up to Chris Ollenberger -- the new president and CEO of the Calgary Municipal Land Corp. -- with the support of the board of directors to deliver on the plan.

I recently met with Ollenberger, who is the former president of the ambitious Three Sisters Mountain Village development in Canmore, to chat about his vision for the East Village.

Ollenberger is both confident and ambitious. He sees the East Village as a great opportunity to demonstrate how large-scale densification can create a vibrant, livable and sustainable urban community.

Ultimately, he hopes it will be a place where one doesn't have to own a car, if you don't want to.

He also emphasized that the East Village revitalization is not only important to the downtown residents, but to all Calgarians.

His vision is to link Calgary's past to the present and make the new East Village a template for future mixed-use developments.

Yes, we have all heard this before, but somehow when Ollenberger says it, I believe him.

When I asked him about the challenges he faced, he didn't talk about the social issues.

Rather, he spoke of the diversity of opinions and ideas on how the East Village should be developed.

He also mentioned the challenge will be connecting with surrounding communities, including the downtown core, Inglewood/

Ramsay, Stampede and Victoria Park.

I was pleased to learn work has already begun on renovating the Simmons Building on the river bank to become the Calgary Municipal Land Corp. office.

Work begins this fall on the development of a stormwater retention pond and landscaping improvements in Fort Calgary Park, marking the beginning of the infrastructure improvements needed to allow for future development.

It's perhaps not the most exciting projects, but this work is needed to allow for the fun stuff.

Enmax's funky "see-through" District Energy Plant was approved recently on 9th Avenue at 4th Street, and is scheduled for completion in two years.

Ollenberger is also hoping to move quickly on plans to enhance the river pathway from East Village to the Stampede grounds.

An advisory group representing more than 10 different stakeholder groups has been assembled to produce a master plan.

The group envisions the Riverwalk as a destination for all Calgarians and tourists to learn more about the important history of the founding of Calgary, as well as to enjoy new public art, improved river banks and landscaping, all of which will create a wonderful pedestrian/recreation-friendly atmosphere.

The idea of starting with restoring the river bank and creating a popular recreational amenity to bring more people to the area is a great one.

I am a firm believer that recreational amenities are the best catalyst for urban revitalization in Calgary.

We need to look no further than Prince's Island Park, Eau Claire Promenade, Eau Claire YMCA, Lindsay Park/Talisman Centre and Shaw Millennium Park -- all are surrounded by new vibrant residential communities.

I questioned Ollenberger on why this plan will work while others have failed. He believes the timing is right, given the magnitude and number of east-side City Centre developments under construction.

He also indicated there is a will of the city and the development community to address issues like transportation, affordability, sustainability, promoting healthy lifestyles, and reducing infrastructure costs in more creative ways.

The East Village is a key opportunity for the city to showcase to Calgarians and others that we value the environment through building sustainable urban communities.

For those new to Calgary, the last major plan died with the retirement of then-Mayor Al Duerr and Ald. Bev Longstaff's loss to Bronconnier for mayor in 2001.

I expect the only thing that will stop this plan from being executed is if Bronconnier and Farrell don't get re-elected (like that's going to happen.)

A cautionary note: we will have to be careful not to rebuild East Village too quickly. We cannot instantly create a sense of place. Rapid development leads to everything looking the same, no matter how hard we try to make it look different.

To paraphrase the late Jane Jacobs, guru of urban revitalization and author of the Death and Life of Great American Cities, the ideal building mix is one-third new, one-third established and one-third renovated.

The key is to plant the seeds for revitalization of the East Village over the next five years, allowing them to grow into something special over the next twenty.

I would have to say: It's now or never for East Village revitalization.

Richard White is the director of operations and communications at Riddell Kurczaba Architecture.






Condo residents disillusioned over delayed East Village revamp
Orange Lofts was supposed to signal change

Joel Kom
Calgary Herald


Tuesday, September 04, 2007


When the first residents moved in to the Orange Lofts, it was heralded as a sign that the East Village was starting to rise from the ashes of the empty lots that lined the streets.

But the neighbourhood's pulse is still faint, subdued by failed ventures and stalled visions that have left the lofts virtually standing alone as a supposed harbinger of the community's next generation.

With the village once again in the spotlight, thanks mostly to the combination of a recent murder, plans for a university urban campus and an upcoming civic election, those who took a chance on the lofts say they're disappointed at how little has changed since they arrived.

And yet, just like when the building opened in 2003, there's still talk that East Village's day -- and the Orange Lofts' -- will come.

"The reason my landlady won't sell her apartment is because she believes the area will come along and the prices will go up," said Shauna Corbett, who's been renting a sixth-floor loft for a year.

The constant car break-ins and open drug use have started to wear on Corbett.

Like most who moved into the building, she was willing to deal with some of the area's downsides, but the lack of any progress is what irks her most.

"There's absolutely nothing happening development-wise," Corbett said.

A few floors down, Dwayne Norman plans to move out in the spring with his wife and eight-week-old daughter.

A recent family walk -- where they passed groups of drug addicts -- helped make up his mind; a tough decision because Norman has been a loft owner since the building opened.

Just like Corbett, it's the East Village's stagnancy that has left him disappointed.

"I totally believe in that area," he said Monday, "but it's an absolute joke. It's an embarrassment."

A slightly jarring mix of white, red, yellow and deep blues, the $15-million Orange Lofts were supposed to be part of the East Village's new era that included plans for a winding canal and boulevards filled with cafes and shops. (The Lego-like building doesn't actually sport any visible hints of orange.)

But a billion-dollar redevelopment deal between the city and private developers was soon scrapped over accusations of mismanagement, leaving taxpayers on the hook for $3 million despite nothing being done.

Today, the sights around the buildings look essentially the same as when it opened: empty lots sit beside a few old, tattered homes, while people sleep in parking lots and walk past the nearby seniors' residence with backpacks and duffel bags.

An eastward view down 8th Avenue S.E. beside the Orange Lofts shows the area's potential, the tree-lined street offering a stark contrast to the emptiness that abounds in every other direction.

The potential, most agree, is still there, just as it was when the lofts opened. It's just taken too long to be realized.

"(The loft owners) have a right to be discouraged," said Ald. Druh Farrell, whose ward includes the area and who spent a summer living in the building. "The situation in the East Village has deteriorated."

The recent slaying of Martin Arop Manyiel, who was found bleeding from a single stab wound at the corner of 5th Avenue and 6th Street S.E., only highlighted the problems in the neighbourhood.

The crime needs to be faced head-on by police before things will change, said Farrell.

As for the city, Farrell said the major difference with its plans this time is the infrastructure funding is in place, something that was arguably the biggest obstacle when the billion-dollar plans fell apart about four years ago.

Now private landowners are starting to talk about building, she said, and the University of Calgary's plans for an urban campus in the area will only make the East Village more dynamic.

People are also still interested in moving to the lofts despite the area's history of failed promises.

Akbar Nimji, a real estate agent for Re/Max, recently sold two lofts in the building in the $330,000 range. Each was gone in less than a week.

Nimji said people will only believe the East Village hype for so long, noting many of the lofts' first owners have since moved out.

"You tried to convince them before that it was up-and-coming, but people would say it never up-and-came," he said. "Some of that's changing."

Nimji points to development in adjacent neighbourhoods, particularly near the Stampede grounds, as a sign things might be turning a corner.

But just like everybody else, he'll believe it when he sees it. He's already seen the Orange Lofts open to little effect.

"When it was done in 2003, it was supposed to change that whole area," he said. "Truthfully, it hasn't."

jkom@theherald.canwest.com

© The Calgary Herald 2007

[atlas_inc]

Condo-mania

Calgary's condo market enters record books with 274.5 per cent increase
Mario Toneguzzi, Calgary Herald
Published: Tuesday, October 09, 2007

Multi-family starts in the Calgary area skyrocketed in September to the second highest level on record, an indication that condominium construction continues to boom in the city.

Multi-family starts, which include semi-detached units, rows and apartments, increased by 274.5 per cent last month to 689 units compared to 184 units in September 2006.

"The combined total of multi-family starts reached the second highest level for a September in recent history," said Lai Sing Louie, senior market analyst in Calgary for the CMHC, adding "outside of 2005 you would have to go back to the early 1980's to see a higher level of production."

Louie said the increase in multi-family starts in the Calgary Census Metropolitan Area, which includes the city, Airdrie, the Municipal District of Rocky View, Chestermere, Cochrane, Irricana, Beiseker and Crossfield, was more than enough to counter a decrease in single-detached starts in September - an 18.4 per cent year-over-year decline to 697 units from 854 units in September 2006.

Total housing starts in September were up 33.5 per cent from a year ago to 1,386 units compared to 1,038 units in September 2006.

With the strong performance in September, year-to-date total housing starts are about 17 per cent behind the record pace set last year - 10,804 units in 2007 for the first nine months compared to 13,039 in 2006.

After three quarters of this year, multi-family starts reached 4,690 units, down less than one per cent from the 4,735 units done last year in the same period.

Meanwhile, year-to-date, single-detached starts are down over 26 per cent from the record pace of last year - 6,114 in 2007 compared to 8,304 during the same period in 2006.

"Single-detached starts during the last three months of 2007 are expected to be below the performance of the fourth quarter of last year, however, the gap between this year and last year's production is expected to narrow and be under 25 per cent by year-end," said Louie.

Provincially, starts in Alberta's seven largest centres totalled 4,134 units in September, over 33 per cent higher than the previous year. Nationally, urban starts in September totalled 22,031 units, an increase of 44 per cent from a year earlier.

mtoneguzzi@theherald.canwest.com


© Calgary Herald 2007

[atlas_inc]

$102 Million invested into Southcentre Mall Redevelopment

Shopping retail outlet to become the comfort shopping destination in
Calgary

CALGARY, Oct. 30 /CNW/ - Calgary's Southcentre Mall, co-owned and managed
by Ivanhoe Cambridge, announced today details of its $102 million
redevelopment at a groundbreaking event. The project, which will renovate and
add some 35,000 square feet of retail space to the centre, will also welcome
Crate & Barrel and Restoration Hardware to the Calgary market. Interior
renovations have already begun and the entire project is expected to be
completed by July 2010.
"Southcentre is one of Ivanhoe Cambridge's flagship properties in Western
Canada. As part of our business strategy, we are committed to investing in our
shopping destinations on a continuous basis in order to provide one-of-a-kind
shopping experiences to customers and ideal operating environments to
retailers," says Roman Drohomirecki, Senior Vice President, Western Region
(Canada) for Ivanhoe Cambridge.

Project to reinforce Southcentre's position as the comfort-shopping
destination in Calgary

The project will bring both interior and exterior improvements to the
centre including the relocation and renovation of the food court, a new
Customer Service Centre and themed zones - a Kid Zone for children to play in,
a Sport Zone for sports enthusiasts to stop and catch up on highlights from
the game and a Tranquility Zone for shoppers looking to take a peaceful break.
Southcentre also leads the way with its innovative ideas to meet the changing
and diverse needs of the community and its customers. As such, distinctive
additions have been planned including strollers with children's programming,
more comfortable soft seating areas and a community space for public use.
"Southcentre understands that shopping needs are changing. We want to
ensure we meet and even surpass those needs by providing a comfortable and
highly enjoyable experience," says Shawn Hanson, General Manager, Southcentre.
"Southcentre staff and retailers are very excited about this project. Every
effort will be made to minimize inconvenience to shoppers and retailers
throughout the project."

Crate & Barrel and Restoration Hardware to debut at Southcentre

Illinois-based Crate & Barrel will be bringing Calgarians its celebrated
selection of housewares, furniture (indoor and out) and home accessories in an
approximately 30,000 square-foot location at Southcentre, scheduled to open in
mid 2009.
"Crate & Barrel is excited that Southcentre will be home to our first
store in Western Canada," says Carol Sapoznik, Regional Vice President, East
Coast from Crate & Barrel. "Like the city of Calgary, Crate & Barrel has
experienced tremendous growth and we're looking forward to expanding our
family at Southcentre."
Also joining Southcentre is California-based Restoration Hardware, a
specialty retailer of high-quality home furnishings, bath fixtures and
bathware, functional and decorative hardware, gifts and related merchandise
which will occupy approximately 11,000 square-feet.
"This will be Restoration Hardware's first store in Alberta. We are
excited to share our commitment and passion for premium home furnishings with
Calgarians at Southcentre," says DeMonty Price, Senior Vice President of
Stores from Restoration Hardware. "Southcentre's commitment to quality and
comfort for their shoppers was instrumental in our decision to locate at
Southcentre. We're looking forward to our opening in late 2008."

About Southcentre
-----------------

Southcentre is a family focused shopping destination with a strong mix of
top national, regional and local fashion, children's, and jewelry retailers
combined with an array of services and eating establishments. Southcentre has
the advantage of being located in Canada's wealthiest province that has the
strongest GDP growth in the country and in a city boasting a strong and
vibrant economy. Southcentre is situated on a major traffic artery (MacLeod
Trail and Anderson Road) and is easily accessible from all parts of the city
and outlying rural areas. Marquee retailers including Aritzia, GAP, Tristan,
Guess, BCBG, Gymboree, American Eagle, Brown's Shoes, Children's Place,
Lululemon, Thomas Jeffery and Blu's Women's Wear further enhance the centre's
appeal and dominant draw. Perfectly positioned as the comfort shopping
destination in Calgary, Southcentre prides itself on delivering an enjoyable
shopping environment and superior customer service to shoppers, retailers and
community partners by making their experience easier and continually exceeding
customers' expectations.

About Ivanhoe Cambridge
-----------------------

Ivanhoe Cambridge is a pre-eminent Canadian-based global property owner,
manager, developer and investor, focusing on high-quality shopping centres
located in urban areas. Beyond its strong Canada-wide presence, the Company is
also active in the United States, Brazil and Europe, where it owns a number of
properties either by itself or through joint ventures with prominent real
estate partners. Abroad, Ivanhoe Cambridge also holds interest in several
shopping centre development and management companies and maintains offices in
Europe and Asia.
Its real estate portfolio consists of almost 46 million square feet of
retail space and includes some 70 regional and super-regional shopping
centres. As at December 31, 2006, the market value of Ivanhoe Cambridge's
assets reached CAD $12.2 billion.
Headquartered in Montreal, Quebec, Canada, Ivanhoe Cambridge is a
principal real estate subsidiary of the Caisse de dépôt et placement du
Québec, one of the largest institutional fund managers in Canada. Amongst its
shareholders, the Company also counts four prominent Canadian pension funds.
The Company's Internet address is www.ivanhoecambridge.com.


For further information: Krista Moroz, Public and Community Relations
Manager, Southcentre, kmoroz@ivanhoecambridge.com, (403) 225-5348 (w), (403)
462-6782 (c)

[atlas_inc]

Despite US housing woes Canadian real estate remains upbeat:
PwC survey
Toronto, November 5, 2007

—Leading real estate experts are predicting the US commercial real estate market will slow in 2008 and follow a similar pattern as the current residential market. However, according to the annual Emerging Trends in Real Estate® 2008 report, released by PricewaterhouseCoopers (PwC) and the Urban Land Institute (ULI), their Canadian counterparts are much more upbeat.  
Now in its 29th year, Emerging Trends is the oldest, most highly regarded annual industry outlook for the real estate industry. The report reflects interviews with and surveys of more than 600 of the industry’s leading real estate experts, including investors, developers, property company representatives, lenders, brokers and consultants in both Canada and the US. Emerging Trends in Real Estate Europe and Emerging Trends in Real Estate Asia Pacific are also published each year addressing the outlook for these real estate markets.
According to Chris Potter, PwC partner and leader of the firm’s Canadian Real Estate Tax practice, Canada benefits from a more conservative investment environment than the US. “In Canada, institution-dominated markets appear to be avoiding ‘transaction mania’, but real estate values have reached record highs and a strong economy has accelerated tenant demand for space.”
According to American respondents, a healthy correction south of the border will likely bypass long-term investors but penalize late-to-the-game speculators and overleveraged buyers. Canadian respondents to the survey remain positive about sidestepping any serious impacts of this possible US correction. Close to 36% view their prospects for profitability in 2008 to be very good and a further 22.4% say they’re excellent.
The strongest areas of real estate business activity for Canadian respondents are predicted to be within real estate services, followed by commercial/multifamily development and homebuilding/residential land development. All property sectors share positive prospects across the country especially industrial and retail with respondents, on average, stating development prospects are expected to be modestly good to good. The residential for-sale market is also expected to fair well, but might need to take a breather as homebuilders cannot keep up with the current pace and single-family housing looks overpriced.
Office stock is seeing limited inventories and dated product fill up with tenants. Except for Montreal, where office vacancies are nearing 9%. Canadian metropolitan areas boast below 5% vacancies, and rents have room to push higher. The survey is also showing that costs and land scarcity is limiting new development. Hotel investment and development prospects are modestly good, and most respondents rate this sector either a buy or a hold. Rental apartments are doing well in major cities with high immigration flows. Primary western cities—Vancouver, Calgary, and Edmonton—are veering toward housing shortages as workers, attracted by a plethora of well-paying jobs, pour into the energy zone. Apartment occupancies are soaring in these areas. Development in other regions remains difficult because of costs and land scarcity.
Canadian Markets to Watch
The report comments on how Canadians like to live and work in central cities, as long as they can afford it. If housing is too pricey in 24-hour neighbourhoods, people move to inner-ring suburbs or beyond and commute back into the cores. Investors, especially the institutions, are concentrated in downtown areas too. Planners and developers focus on infill and more vertical projects, which reinforce the urban cores. The hot-growth energy cities out west—Calgary and Edmonton—score the highest ratings for investment prospects, development, and for-sale housing, although it is not certain whether Alberta’s recent announcements on oil and gas royalties will have any effect on this. Toronto—Canada’s premier global pathway city—and Vancouver also have high ratings. Ottawa and Montreal follow, with Halifax lagging.
Calgary/Edmonton
Calgary is the Canada’s resource capital and North America’s number-one boomtown. Survey respondents foresee strong buys for all sectors: 53.5% give a buy recommendation for hotel property, 52.8% for industrial/distribution, 48.1% for retail and apartment residential and 44.6% for office property. Furthermore, on average the majority of respondents see Calgary for-sale homebuilding prospects as very good. Edmonton is closely mimicking the Calgary-style growth wave and as long as demand for energy resources stays strong, this market will continue to do well.
Vancouver
Vancouver’s diversified economy is roaring, the mining industry is booming and the city provides a large port and a high-tech center. Outrageous real estate prices frustrate homebuyers and commercial investors and the market is extremely hard to crack. The 2010 Winter Olympic Games is also a growth driver and accordingly 44.7% of respondents give Vancouver a buy recommendation for hotel property. A further 43.5% give a buy to retail, 41.3% for industrial/distribution and 36.7% for office property followed by 34.1% for apartment residential property. Vancouver also ranks in the good to very good mark for for-sale homebuilding prospects.
Toronto
Toronto ranks as a major global pathway destination, 24-hour city, and manufacturing hub. Compared with other national financial centers, the city is relatively inexpensive. However, the rising loonie is hurting manufacturing industries, and clouds over the US economy threaten to stall out momentum.  Three new office towers are under construction, adding 3 million new square feet of office space. Notably, office (49.1%), industrial (46.2%) and apartments (40.8%) are given solid buys.
Montreal
Montreal continues to face concerns about market stability and overall growth prospects as major companies no longer choose it as a place to set up shop. But, plenty of government offices fill space. Of the larger cities in Canada, Montreal ranks lowest as a buy recommendation in all real estate sectors. However, respondents generally rated all Montreal real estate sectors higher as a hold recommendation.
The report notes that best bets for investors for the coming years include a focus on all property sectors in the high-growth western energy markets, hold on central business district office space, develop infill condos near subways stops in Toronto, buy infill sites wherever you can and invest overseas. Potter concludes, “Domestic opportunities are too limited at current prices.”
A copy of Emerging Trends in Real Estate 2008 is available at www.uli.org or www.pwc.com/imre.
About PricewaterhouseCoopers
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 140,000 people in 149 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice. Now celebrating 100 years of excellence in Canada, PricewaterhouseCoopers LLP (www.pwc.com/ca) and its related entities have more than 5,200 partners and staff in offices across the country.
“PricewaterhouseCoopers” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership, or, as the context requires, the PricewaterhouseCoopers global network or other member firms of the network, each of which is a separate and independent legal entity.
About the Urban Land Institute
The Urban Land Institute (www.uli.org) is a nonprofit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in sustaining and creating thriving communities worldwide. Established in 1936, the Institute has more than 38,000 members representing all aspects of land use and development disciplines.

Contact: Carolyn Forest        
PricewaterhouseCoopers LLP        
(416) 814 5730
carolyn.forest@ca.pwc.com

[atlas_inc]

Deerfoot Meadows weighs future
Brookfield hired to assess inquiries for new development
Mario ToneguzziCalgary Herald
Saturday, November 10, 2007

A commercial real estate firm has been hired to "assess various inquiries and proposals" for the massive Deerfoot Meadows mixed-use project, the Herald has learned.
Developer Ken Mariash said that, over the past two or three years, the project has received a number of inquiries and proposals and, because of that, Brookfield Financial Real Estate Group was hired to assess them.
By some time next year "we'll figure out what the destiny" of some of the components of the project will be, added Mariash.
But Mariash said plans for the high-end retail component, the Meadows Collection, continue for the project with discussions on an ongoing basis with prospective tenants.
"We got all kinds of inquiries and proposals from different people over the last two or three years," said Mariash, managing partner of Heritage Partners LP, which is building the $2-billion-plus retail, hotel, commercial and residential complex at Deerfoot Meadows.
"Basically, what we did to figure out what the best thing to do with the property is we hired Brookfield Financial to work with us in talking to various parties that have made inquiries. So we don't know what's going to happen . . . We'll see what the world looks like in regards to all of that over the next two or three months."
The overall Deerfoot Meadows project is a 3.5-million-square-foot, multi-use integrated retail and luxury residential development situated along Alberta's busiest freeway -- Deerfoot Trail -- bordered by Blackfoot Trail and Heritage Drive.
Mariash's vision is to create a world-class destination out of the 145-hectare site where big-box stores such as IKEA, Wal-Mart and Superstore exist alongside the Meadows Collection, billed as Canada's first luxury centre with big-name international retailers.
Commercial real estate industry sources have told the Herald word on the street says the project, except for land owned by some retail users, is up for sale.
But when asked if that was the case, Mariash replied: "I don't think there's such a thing as up for sale. We're trying to evaluate different proposals that range from, (in) some cases outright purchase to in some cases partnering, to in some cases different forms of venture.
"We're trying to assess that over the next three months and it's better to have a financial adviser than to try and figure this out on your own. It's a huge property . . . It's very difficult for us. We're not in that business."
The Meadows Collection concept consists of about 500,000 square feet. Marvin Traub, president of Marvin Traub Associates and former CEO and chairman of Bloomingdales, was hired as a consultant on the project.
In June, representatives of some of the world's top luxury retailers were scouting the Calgary market and the Meadows Collection.
"We're continuing with the tenants. We're working away and we're having lease discussions with all the different parties in New York," said Mariash.
Tying in the retail sector are The Bluffs, on the ridge along Blackfoot Trail, which would include a number of highrise, high-end residential condominium towers combined with a clubhouse, spa and various other amenities as well as office development.
In the past, Richard Pootmans, business development manager of real estate for Calgary Economic Development, said the Deerfoot Meadows project is an important part of the dynamic growth of the city.
"It wasn't so long ago -- it seems kind of amazing, actually -- that this was an abandoned, industrial blight on our landscape, and look at what it is today," he said. "It's really an incredible achievement."
And Grant Kosowan, regional director for Orange National Retail Group Inc., in a previous interview with the Herald, said the Deerfoot Meadows project has a "ton of potential."
"There are few better located sites around," he said.
"Accessibility is fantastic. It's tough to beat. Not many retail projects are perched on Deerfoot Trail. The corner of Glenmore and Deerfoot -- man, it's right in the crosshairs."
mtoneguzzi@theherald.canwest.com




Buyer vows to breathe new life into landmark
Sandstone building will be preserved
Sarah McGinnisCalgary Herald
Saturday, November 10, 2007

New life is coming to King Edward School now that a private developer has purchased the historic building.
The Calgary Board of Education announced Friday it sold the 95-year-old school and 1.25 hectares surrounding it to Lake Placid Group for $14.1 million.
"We're very excited. This is a 1912 landmark. Lake Placid is really looking forward to continuing that historic opportunity and to build something that's going to be retained for another hundred years," said company CEO Michael Lobsinger.
He would not indicate whether the firm plans to build condominiums, homes or a commercial project on the site.
The property, zoned residential, will probably face rezoning as converting the existing school into condos, stores or mixed-use space would violate current city building bylaws.
Much of the fields surrounding the sandstone school could also see new construction as part of a number of plans Lake Placid has for the property.
King Edward School isn't a designated heritage site and is not protected from demolition. The property is, however, included in the city's inventory of potential heritage buildings and has considerable historic value.
Neighbours and community groups are taking a wait-and-see approach to the project.
There are concerns about the loss of green space in the neighbourhood and apprehension over developments that may not fit into the largely residential area, said South Calgary Community Association spokeswoman Robin McLeod.
"Because King Edward has played a public role in our community since 1912, we're hoping that there will be some public component to it so it will be forever open in some capacity to the public," said McLeod.
The preservation of King Edward School was one of the main conditions of the sale, said CBE board chairwoman Pat Cochrane.
"We know our sandstone schools are very important to the history of Calgary and are some of the very few historical buildings still existing in Calgary. It was very important to us that whoever was the successful bidder would maintain this facility," said Cochrane.
The $14.1 million sale price for the school is $3.2 million more than expected.
smcginnis@theherald.canwest.com



Downtowns attracting 'ruppie' buyers
Stands for Retired Urban Professionals
Richard WhiteFor The Calgary Herald
Saturday, November 03, 2007

Could you be a ruppie?
"What's a ruppie?," you ask. It's an acronym for Retired Urban People, kind of like yuppies (Young Urban Professionals).
Many yuppies have become ruppies, says a book called Retire Downtown by American city planner Kyle Ezell.
It's a quick read and it has plenty of information on the downtowns of various American cities that have morphed into fabulous places to retire.
Many have become "urban playgrounds or resorts" and include waterfront parks as well as major cultural and sports complexes, it says.
Downtown condos in these cities have become vertical, gated retirement villages.
Think about it -- such new luxury condos not only include 24/7 concierges in the lobby, they also have workout rooms, party rooms, places to wash your car in the parking garage, a workroom for handymen, and even a wine cellar for "cork dorks."
In Calgary, the Eau Claire area along the river's edge is quickly becoming such an upscale retirement village.
Eau Claire 500 has long been a haven for the retired, or the soon-to-be retired. The Princeton has been a huge success as a hip retirement village.
Phase one of the new Waterfront development, which recently sold out in a day, seems to be attracting the same market.
I expect the new Concord Pacific's project west of Princeton will continue this trend.
It will also be interesting to see if the Rivers redevelopment, which includes East Village near city hall, will become a ruppie or a yuppie village.
I love the chapter in Ezell's book called Living It Up Downtown.
It talks about why the downtowns of the cities he surveyed are an attractive place to retire, not only in terms of culture, dining, festivals and other activities, but also in more abstract ways.
Did you know that retiring downtown will help keep you young?
Yes, the thinking is that by living downtown, you will naturally interact more with young people, who will provide you with a more vibrant, active outlook on life.
Retiring downtown increases your exposure to a wider diversity of cultures, expanding your horizons and keeping you worldly.
It results in a lifestyle that is about not only living and playing, but about learning in ways that people in the suburbs find harder to do.
You will find yourself taking in a lecture at the museum, attending wine-tasting classes or going to more theatre and music events, when they are in your backyard.
Some people find living downtown is exotic compared to a life spent in the suburbs.
All of a sudden, you are walking more, taking transit, visiting galleries and museums, dining out in ethnic restaurants and participating in multi-cultural festivals.
You will exchange the drive-through culture of the suburbs with a more adventurous lifestyle, becoming a tourist in your own city.
A sense of community exists in the downtown that doesn't exist in the suburbs. Contrary to conventional thinking, you actually interact more with people in the downtown.
Your condo or apartment becomes more of a community than in the suburbs, where a car-based culture and fenced-off property prevent even next-door neighbours from interacting much with each other.
Downtowners are often more involved in the community because it offers so many different volunteer opportunities -- everything from churches, social agencies and theatre groups to galleries, museums and tourist information centres.
Of course, there seems to be a growing worry these days about downtown crime in Calgary.
But in reality, downtown is quite safe and the crime stats support this.
Sure, there are crime hot spots and there are certain situations you would want to avoid -- but for the most part, living downtown is as safe as living in the suburbs.
I have experienced this personally, with my mother moving two years ago into an apartment in downtown Hamilton, Ont.
For someone who had lived in the same house for 53 years in the suburbs, it was a life-changing experience.
She now walks to the market as well as to her church and the library, and she rides her bike through the downtown streets to Hamilton's waterfront park and pathway.
She attends free concerts at various churches and street festivals all summer long.
This has resulted in her becoming more adventurous and interested in traveling the world.
So far, she's visited Eastern Europe, Israel, Rome and New Zealand. She has travelled with just a backpack, staying in a hostel on Vancouver Island.
Urban planner Ezell's book also talks about different general categories of ruppie neighborhoods -- from downtown cores and warehouse districts, to historic neighborhoods and entertainment areas.
There is practical information in his book on determining which type of neighborhood is right for you.
You can also get some insights into the different types of accommodations, ranging from condos, apartments and townhouses to hotel living and single-family homes.
The book has detailed information about retiring in the dynamic downtowns of major cities like New York, Chicago, Philadelphia, San Francisco and Seattle, as well as smaller centres such as Asheville, N.C, Austin, Tex., Madison, Wis., and Providence, Rhode Island.
There is also information on Sunbelt downtowns, four-season downtowns, and downtowns to watch.
Whether you are contemplating retiring to one of these American cities, or you are interested in urban tourism, all this is quite useful.
There is some information on Canadian cities, but the website (www.retiredowntown.com) mostly just includes the addresses of downtown associations.
However, Calgarians considering purchasing retirement homes in downtown Victoria, Vancouver, Kelowna or even Calgary would be well-advised to read Ezell's chapter, Retire Downtown.
White is a Calgary-based writer who has written on art, architecture and urban culture for more than 20 years. He is also an associate at Riddell Kurczaba Architecture and can be reached at richardw@riddell.ca.

© The Calgary Herald 2007




Calgary defies Canadian housing trend
Marty HopeCalgary Herald
Saturday, November 03, 2007

Not in Calgary, you say? Interesting.
The 20- and 30-somethings here who continue to jump into the resale housing market
in huge numbers are bucking a trend that has taken hold in Canada's three largest metropolitan areas.
A study by Statistics Canada shows that in 2006, young adults in rural and small towns were more likely to be homeowners than their urban counterparts living in Vancouver, Toronto or Montreal.
Just to get some hard numbers out of the way, the study published in Canadian Social Trends says that six out of 10 people (60 per cent) in Canada ages 25 to 39, who have left the family homestead, were the owners of their own digs in 2006.
It seems, though, that 71 per cent of this group of owners were in rural areas or small towns outside the brights lights of the big cities.
By contrast, 54 per cent of those living in Vancouver, 53 per cent of Torontonians in this age bracket and 48 per cent of Montrealers could afford to buy.
StatsCan says the reasons for the lower percentages within the boundaries of these big cities is housing costs -- along with a "relative scarcity" of rental housing in the smaller centres outside.
But the urban-rural ownership gap just doesn't exist in Calgary -- at least not at the time the General Social Survey was taken.
"The case of young adults in Calgary is worth noting because it is an exception," says StatsCan in releasing the survey results. "These young people are just as likely to be homeowners as those living in more rural settings, even when the different factors in the statistical model are taken into account."
The gap, or rather the lack of any gap, can't be explained by the fact the number of young people still living with their parents is higher, says the survey.
"When all young adults are considered in the analysis, whether they live with their parents or not, Calgary residents are just as likely to own their own home as those who live in rural areas," it says.
It comes as no surprise these young people are more likely to own a home if they're married and have kids -- and have a high household income.
"Holding other factors such as age, level of schooling, living arrangements and place of residence constant, the odds of being a homeowner were 1.7 times higher for young adults with a household income over $100,000 than for those with an income of between $50,000 and $80,000," says the federal agency's survey.
It only makes sense, I guess. It's kind of obvious that if a family doesn't have sufficient money coming in, chances are home ownership will be shunted aside, particularly in the larger cities across the country.
For purposes of this survey, September 2006 figures from the Canadian Real Estate Association were used.
At the time, the average price of a home in Calgary was listed at $415,311.
Assuming a 10-per-cent down payment and a five-year mortgage rate of 5.99 per cent amortized over 25 years, the qualifying income at the time would have needed to be slightly more than $90,000.
Belated thanks to Alix Halpen of United Communities for her contribution to my high-heel stroll on Stephen Avenue a while ago -- done in support of Cardel Group of Companies' Walk a Mile in
Her Shoes event to provide housing for women and children in need.
mhope@theherald.canwest.com

© The Calgary Herald 2007

[atlas_inc]

Remax Condo Report 2007

CALGARY

Despite an increasingly competitive real estate
environment, affordability, location, and lifestyle
continue to bolster condominium sales in Calgary.
The number of units sold year-to-date are up slightly
over 2006 levels, rising from 7,260 to 7,350 units
in the fi rst 10 months of the year. Th e average price
for a condominium apartment—up close to 22 per
cent to $317,228 in 2007—represents an increase
of more than $50,000 over one year ago but pales
in comparison to single-detached housing values,
which now sit at $474,000. Rapidly rising prices for
freehold homes have greatly contributed to the
upswing in demand for condominium apartments and
town house units in recent years. Condominiums now
account for approximately one in every four home sales in Calgary. Entry-level buyers have entered the market en masse, fuelling demand for aff ordable
product priced from $200,000 to $300,000. Home
ownership has been particularly attractive to those
renting accommodations, given tight vacancy rates.
Th e cost of renting a one-bedroom, 550 to 680 sq. ft.
unit runs about $1,350 to $1,650 per month versus
$1,450 to $1,950 per month (with taxes and condominium
fees) to own. With inventory levels climbing,
purchasers now have greater selection and more time
to make decisions. There are currently over 2,300
active condominium listings. Th e most popular area,
the inner core of the city, is also home to the highest
concentration of condominiums. Most purchasers
are prepared to pay a premium for an inner-core
location—especially in communities like Connaught,
Mission, Victoria Park, Lower Mt. Royal, Bridgeland,
Crescent Heights, Downtown West End and Eau
Claire—where condominiums off er many amenities
and are typically within a quick walk, bike or drive
to work. Homebuyers at the top-end of the condominium
market have been active, with 26 condominiums
priced over $1 million dollars sold this
year, compared to 23 one year ago. Average price
for a luxury condominium unit continues to rise,
up from $1,415,000 one year ago to $1,450,000
at present. Days on market have dropped, falling
from 48 in 2006 to 35. Th e benchmark has increased
yet-again on high-end condominium sales, with the
most expensive sale to date occurring at $3.7 million,
up from $3.05 million in 2006. Affl uent baby boomers
are behind the push for upscale product, prompting
a trend toward more luxury-appointed units.
Size is still an issue, as developers choose to build
high-rise condominiums with smaller, luxuryfi
nished units, priced at a substantial $500 to $750
per sq. ft. High-end condominium town home units
are especially coveted, but supply is limited. As baby
boomers age, the demand for larger fl oor plans, better
security, and central location is expected to soar.
Building amenities such as exercise facilities,
concierge service, storage rooms, and guest suites
are also top of mind.

[atlas_inc]

Retail and office inventory to rise in 2008
by Dan Leahul (CREN)

Record low vacancy rates in Calgary’s retail and office real estate markets will see some much needed relief over the next few years as newly completed inventory begins to make its way into the market.

Pent-up demand is fuelling massive retail development in the city with 900,000 sq. ft. of retail space under construction, in the same year where 856,000 sq. ft. of retail space has already been completed; this means a 5.8% growth of current inventory levels.

Looking ahead, an additional 6.6 million sq. ft. of retail space is already in the design phase.

“The massive retail projects are reacting to the pent-up demand,” said Darryl Schmidt, director of leasing for the Cadillac Fairview Corporation. “There’s far too much retail demand for the inventory in the market today.”

Schmidt was part of a panel of real estate senior executives who spoke at the Buildex conference last week at the RoundUp Centre. Their seminar focused on what the city’s retail and office real estate sector will likely look like next year.

Calgary has a retail vacancy rate of 1.3%, which is exceptionally low, according to Schmidt. Compared to retail vacancy rates in the United States at 7% and other centres in Canada at Edmonton and Vancouver at 3.4% and 3.2%, respectively, it’s clear that Calgary is strained for retail locations across the city.

Traditionally, Canadian mega-malls generate approximately $500 per sq. ft. in sales annually. Nearly all of Calgary’s malls top that number with Chinook the highest, at $900 per sq. ft. for sales.

Because of Calgary’s young demographic and the large amount of disposable income floating around the city, big name retailers are fighting for their chance to stake their claim in Calgary malls. Luxury names like Gucci, Louis Vutton and Tiffany’s are some of the retailers looking to enter the Canadian market through Calgary over the next couple of years.

Currently there are 10 projects underway in the city, making up just under one million sq. ft., including large projects in Beacon Hill and Aspen Hill. There are also 23 projects proposed to combine a total of 6,652,653 sq. ft., including the mega-mall and horse track facility being built near Balzac.

In Calgary’s downtown office market the story is much the same, with record low vacancy rates and a large amount of inventory expected to relieve the vacancy crunch over the next two years.

This year was the first time Calgarians have seen any relief in downtown office space, said Chris Howard, vice president of Aspen Properties Ltd. Over 1.5 million sq. ft. of downtown office space was added this year, including the newly constructed buildings Opus 8, Homburg Harris building and Centrium Place.

Next year, half a million sq. ft. in office space will be opened up with the completion of the 8 West office tower and Bankers Court. In 2009, Palliser South and Homburg Harris II will add an additional 400,000 sq. ft. of office space. In 2010, Centennial Place I and II along with Jamieson Place will add over two million sq. ft. and in 2011 the completion of Encana’s large project, The Bow, will add 1.7 million sq. ft. to the market.

In total, there is currently 5 million sq. ft. in office space being constructed in Calgary, nearly half of all the office space construction in the country and an additional 3.7 million sq. ft. proposed.

“The market is very dynamic,” said Howard.

Relief is on the way for low vacancy rates in the downtown core, he added, and by 2011 Calgary will have a 9% vacancy rate in office space in the core, much more sustainable than the near-zero vacancy rate posted in 2006.

The office retail market in Calgary will remain strong for a number of years, said Howard, even though the city is currently going through an “uncertain period” due to the recent royalty review strategy enacted by the provincial government.

The “uncertainty” is short-term, said Howard, and the new inventory makes it way into the market will even out any of the disparity.

[atlas_inc]

City's robust economy still 'far from cooling off'
Third-quarter report shows continued growth

Geoffrey Scotton
Calgary Herald
Tuesday, November 27, 2007
There's been little substantial slowing of overall economic activity in Calgary -- or the city's contribution to Alberta and Canada's growth performance, according to a new report.
In its third quarter 2007 review, Calgary Economic Development said Monday the Calgary area accounted for almost half of all new jobs created in the province during July, August and September.
That translated to a 5.7 per cent increase in employment between the third quarter of 2007 and the same period a year earlier.
"Calgary's share of job creation in Alberta significantly outpaced its proportion of the province's working population," said the CED report, compiled jointly by the agency and City Of Calgary's department of corporate economics. Employment in the Calgary region was nearly 41,000 positions higher in the third quarter of 2007 compared with the same period of 2006, and almost all of that growth was full-time.
CED noted that in October there was in excess of $24 billion in projects underway in the Calgary area, including the $1.3-billion Calgary Health Region South Health Campus, EnCana Corp.'s $1.1-billion Bow office tower, a $1.1-billion mixed-used development in the Calgary neighborhood of Ramsay and the $1-billion Penny Lane twin tower office complex in the city core.
Adam Legge, CED's director of research and business information, said the stamina of Calgary's economy -- it has led all Canadian cities in growth for years -- is truly remarkable.
"It's a pretty strong report in a year that we thought would be slowing more than it has," said Legge. He noted that along with extraordinarily-strong job creation, Calgary has achieved record-low unemployment rates in 2007, while capital spending, construction and demand for office space has remained sky-high.
"I thought some of the pressure points in the economy -- whether it's a labour shortage, whether it's a space shortage -- would have exerted more of a brake on the economy," said Legge. "The resilience and the robustness of the economy is still incredible."
Other experts are also in awe of Calgary's ability to continue to grow at pace the Conference Board of Canada expects to be the fastest or second-fastest in all of Canada in 2007. Most estimates peg Calgary's growth well above four per cent in 2007, down from 7.7 per cent in 2006, but still well above the provincial average and a multiple of the Canadian average.
A reflection of the pace of growth can be seen in residential real estate prices, which were 15.9 per cent higher in the third quarter of 2007 than a year earlier, fuelled in part by a 4.5 per cent increase in the region's working-age population to just under one million people.
"It's a matter of perspective," said Canada West Foundation senior economist Brett Gartner. "(It's) not as hot as last year, but still by all accounts strong, and that's an important thing to keep in mind. It's bringing a little sanity back to the situation."
Gartner noted Calgary continues to perform above expectations despite some unsettling influences that include low natural gas prices, the provincial resource royalty review and new royalty regime, and the increase in the value of the Canadian dollar.
"When you're talking about a growth rate for a city economy well over four per cent, this is far from a cooling off," said Gartner.
gscotton@theherald.canwest.com
© The Calgary Herald 2007

[Innersoul1]

Campus projects scaled back
Soaring costs force delays, alterations

Deborah Tetley
Calgary Herald


Monday, December 03, 2007



CREDIT: Herald Archive
Students at SAIT

Ballooning costs have forced the University of Calgary and SAIT to cut back major construction projects.

To cope with inflationary pressures -- punctuated by soaring construction costs and a trade worker shortage across Alberta -- the university has altered plans for its Institute for Sustainable Energy, Environment and Economy project, and has delayed its digital library.

The university's executive has also hired an engineering expert to review all the projects in its $1.5-billion expansion, including its urban campus.

As well, in the coming months a new vice-president's position will be created to focus exclusively on capital expansion.

"It's a departure for us," said U of C provost and academic vice-president Alan Harrison, "but the industry is really frenetic. Costs are going up so quickly and we began to realize the enormity of what we were confronted with."

Barry Lester, the engineer retained by the U of C to review the expansion, said it's frustrating for those who design the academic plans and programs -- based on the community's demand and need -- to be forced to revamp before a shovel hits the ground.

Lester points to the university's Institute for Sustainable Energy, Environment and Economy project as the most recent example on campus of a building redesign due to budgetary pressures.

Although the province announced $260 million for the project in July, the price tag had already ballooned to more than $400 million from $283 million.

Lester said while the number of student spaces will remain the same at 1,000, much of the original floor plans were axed, and labs and other spaces will now be shared.

"When you add about 40 per cent to the cost of the building for inflation, how can you build the same building with only 60 per cent of the funds?" asked Lester.

Indeed, Harrison said, government made it clear to the university over the summer that taxpayers would not cover the inflationary costs on the institute's building.

"For the first time . . . (we were told) we will not get inflation adjustments from government," Harrison said.

"Whether that's a sign of the times we don't know because that's the only project so far."

It's a similar situation at SAIT, where officials were recently forced to reduce the size of the once 1.1-million-square-foot Trades and Technology Complex by half, to keep the project on budget.

Advanced Education Minister Doug Horner says with all the capital requests on the table, it's up to post-secondary planners to stay focused.

"It's not a change in policy," Horner said.

A spokeswoman from his office explained there is an increasing emphasis on inflationary pressures.

"One of the efficiency discussions right now is how to manage risks around inflation," Donna Babchishin said.

When the SAIT trades complex was announced in 2005, the price tag was set at $107 million. Since then, the proposed cost ballooned to $298 million, then $335 million and finally to today's estimate of $400 million, according to Guy Mallabone, vice-president of external relations at SAIT Polytechnic.

In the meantime, Mallabone said, officials recently "took a hard look at the numbers" and decided to downsize the building to 650,000 square feet from 1.1 million.

None of the proposed 3,000 student spaces planned by 2015 will be affected, Mallabone said.

Instead, like some elements of the U of C project, floor plans have been tightened up, "bells and whistles eliminated" and adjoining facilities renovated.

"Obviously, that's not the ideal scenario, but we need to advance our planning," Mallabone said.

The school is still awaiting word on a 2006 request to the provincial government for $281 million to partly fund the project.

"With 2008 approaching, the dollars we requested will buy less space than they would have two years ago," Mallabone said.

Roughly $35 million will allow the school to get a shovel in the ground.

A number of projects in the U of C's capital plan -- such as the digital library -- have been delayed by several years, either because of funding, finding workers or both.

Lester said he will advise the university against stalling projects in the future.

"The knee-jerk reaction is to slow things down, but then you end up chasing your tail and it's more expensive in the long run," he said. "In today's market there needs to be more partnering."

Because Lester has only been with the university one month, he said it's too early to tell what the capital expansion plan will look like following his review.

"Some of the major elements will unfortunately have to be reviewed to determine whether they still fit," he said. "The programs will trump the design of the building every time."

dtetley@theherald.canwest.com

© The Calgary Herald 2007

[atlas_inc]

Project to reinvigorate abandoned Mission site
David Parker, Calgary Herald
Published: Thursday, December 06, 2007

People who live in the Mission community will be pleased to know that workers will be back on the site of a construction project that has been abandoned on land between 20th and 21st Avenues.

The site has been purchased by Strategic Group, and William Smith, the vice-president of development and construction, says the new design by Gibbs Gage Architects is pleasing to the eye. It's a six-storey mixed-use development of 140,000 square feet, which will revitalize the neighbourhood profile and help attract vibrant businesses to the area.

The design fits in well with the ambience of 4th Street S.W. -- it makes the structure look like several small buildings with the office tower set back from the street. The strong curb appeal that wraps around from the street front along both avenues complements the pedestrian-friendly shopping area.

In the heart of Calgary's most eclectic district surrounded by affluent and densely populated neighbourhoods, it will feature 20,000 square feet of main-floor retail space on each side of the lobby area facing 4th Street.

The five floors above will provide 120,000 square feet of state-of-the art office space and include amenities such as showers and a fitness centre, indoor sunrooms and common areas, as well as interior and exterior fireplaces and fire pits with fully landscaped patios.

Development and building permits are in place and, as soon as contracts have been signed, work will begin on demolishing the existing structure. Smith says the concrete and re-bar will all be recycled. Then crews will begin work on the three levels of underground parking, which will provide 273 stalls, with the expectation of completing the project for occupancy in the fall of 2009.

Strategic Group has become one of Alberta's largest private owners of commercial real estate with a diverse portfolio of office buildings, retail centres, industrial facilities, residential units and development projects in both Calgary and Edmonton.

It has done exceptionally well with its Sundance properties, where it has in excess of 400,000 square feet of office space under construction.

[atlas_inc]

Calgary most 'attractive' Canadian city: study
Eric Beauchesne, CanWest News Service
Published: Wednesday, December 12, 2007

Calgary also ranked high when compared with 27 major cities in the U.S., according to the report.

OTTAWA -- Calgary is the most economically dynamic and attractive city in Canada, followed in order by Toronto, Vancouver, Edmonton, Victoria and Ottawa-Gatineau, according to a report released on Wednesday.

Meanwhile, Montreal lags well behind other large centres with a ranking of 14th out of 27 cities, according to the assessment from the Conference Board of Canada.

And being a city that is attractive to people and dynamic is becoming increasingly important, the think-tank said in releasing its report card on Canadian cities. It grades them on the seven criteria of economy, innovation, environment, education, health, society and housing. "Labour shortages are already beginning to affect some Canadian cities,"said Mario Lefebvre, director of the board's new Centre for Municipal Studies. "Attracting highly skilled workers and the business investment they encourage is crucial to Canada's economic competitiveness in the decades ahead."

It's becoming more a case of businesses going where the people with skills and talent want to live than people going to where the jobs are, he said.

"In other words, places attractive to people will also attract business investment," he said.

Calgary also ranked high when compared with 27 major cities in the U.S., the report said.

"Thanks to its red-hot economy, robust employment growth and young labour force, Calgary ranks just behind first-place Washington and second-place Austin (Texas) as the only overall A cities," it said.

"In general, Canadian cities trail their U.S. counterparts on key economic measures and on higher education, but offer more affordable housing, better commuting options, healthier lifestyles and better student-teacher ratios," it said, adding that the stronger employment growth recorded by many Canadian cities over the past five years is a promising sign.

Overall, the results show that size matters, with five of the top six rankings in Canada going to big cities, all of which were given an A grade.

Montreal, which was ranked in the bottom half of the cities that were given a B grade, "has a lot of catching up to do," the report said.

"Montreal's sub-par economic performance and poor environmental results proved too difficult to overcome, despite stellar results in the society domain," the report said, explaining why it was the only large city in Canada not to get an A grade.

Also, Montreal's multicultural mix is not as diverse as others, it added.

Five mid-sized cities appear in the top half of the overall rankings, including three provincial capitals: Victoria, Halifax, and Quebec City, as well as the Ontario cities of Kitchener, which is a centre for high technology and research, and Oshawa, which posted strong economic results during the past five years and outperformed all but three other Canadian metropolitan areas in terms of growth.

In the bottom half of the rankings were seven Ontario cities, which have been hampered by a shrinking manufacturing sector, including last-place Thunder Bay, hit by no employment growth, low income growth, and a low health score.

The B cities in order of their ranking were Halifax, Oshawa, Kitchener, Abbotsford, B.C., Quebec City, Sherbrooke, Que., Saskatoon, Montreal, Hamilton, St. John's, N.L., and Regina.

Those with a C grade in order of their ranking were London, Ont., Winnipeg, Kingston, Ont., Greater Sudbury, Ont., Trois-Rivieres, Que., Windsor, Ont. and St. Catharines-Niagara, Ont.

The D cities were Saguenay Que., Saint John, N.B., and Thunder Bay.

[atlas_inc]

Calgary is the Most Economically Dynamic & Attractive City.
GEOFFREY SCOTTON
CALGARY HERALD
Calgary is the most economically dynamic and attractive city in Canada, says a new report from the Conference Board of Canada.

The Ottawa-based economic research and policy organization says money and businesses go where highly skilled people go — and that’s Calgary.

“Calgary stands tall among Canadian census metropolitan areas as the city that is most attractive to people,” said Mario Lefebvre, director of the board’s Centre for Municipal Studies.

“Attracting highly skilled workers and the business investment they encourage is crucial. Places attractive to people will also attract business investment,” Lefebvre added.

“Calgary is blowing everyone away with its economy, but doesn’t rank low with any other measures — and that makes the city very attractive to people.”

Mayor Dave Bronconnier said the report reflects the stature and reputation Calgary has achieved in recent years.

“Calgary has been the beacon of the country and a magnet for people moving here,” said Bronconnier.

“It lines up with what Alberta’s all about and particularly Calgary — and that’s opportunity.”

Along with ranking head and shoulders above other Canadian cities, Calgary ranks third overall in all of North America, trailing only Washington, D.C., and Austin, Texas.

The seven criteria used in the analysis — the board’s first-ever report on Canadian cities’ attractiveness — were economy, innovation, environment, education, health, society and housing.

“It wasn’t the economy domain alone that propelled Calgary to the top,” says the report, to be released today. “Calgary was the only (metropolitan area) to earn A or B grades across all seven domains.”

Large cities dominated the upper tier of attractive places to live in Canada, with Toronto, Vancouver, Edmonton and Victoria rounding out the top five. The lowest-ranked of 27 cities studied was Thunder Bay, Ont., with Saguenay, Que., and Saint John, N.B., not far behind.

Analysts said Tuesday the new report confirms what mobile Canadians have known for years: Calgary is a place where almost anyone can be successful.

“It’s funny how economic growth will do that,” said Tsur Somerville, director of the Centre for Urban Economics and Real Estate at the University of British Columbia’s Sauder School of Business.

“People foremost move for jobs. The best predictor that somebody is going to move to your city is that your economy is doing well and there are jobs,” Somerville noted.

In both 2004 and 2005, based on its size, Calgary attracted more migrants than any other Canadian city and between July 2005 and July 2006, it set a record for interprovincial migration. Between 2001 and 2006, Calgary was Canada’s second fastest growing large city, according to figures from Statistics Canada and between 2002 and 2006 Calgary attracted more arrivals on a per capita basis than any other city.

The conference board report emphasized that Calgary sits in the top echelon of cities across North America because of its youthful population, strong labour market and rapidly expanding economy, which has led all Canadian cities in three of the last four years and is expected to lead again in 2008.

“Canada’s star (metropolitan area), Calgary, sits comfortably near the top of the list, just behind first-place Washington and second-place Austin,” says the 96-page report. “The good news is that Calgary held its own among the field of 54 cities, thanks to its league-leading employment rate, robust employment growth and young labour force.”

Adam Legge, director of research and business information for Calgary Economic Development, said the conclusions of the conference board report aren’t surprising.

“It reaffirms a lot of the research that we do that demonstrates that Calgary is a national leader across virtually every economic indicator,” said Legge.

[atlas_inc]

Slower growth healthy for city
Economy hit 'sustainable' level in 2007, says report
Geoffrey Scotton, Calgary Herald
Published: Sunday, December 16, 2007

Amid energy sector uncertainty, skyrocketing inflation, a reversal in real estate, a soaring loonie, U.S. economic weakness and credit market turbulence, Calgary's economy in 2007 has achieved the remarkable: The fabled soft landing.

In a report to be issued Monday, Calgary Economic Development concludes that Calgary's economic growth slowed from a nearly eight per cent pace in 2006 to about half that tempo this year.

"It has slowed to a very healthy and very sustainable level," says Adam Legge, a director with Calgary's economic development agency, who wrote the report -- Calgary's State of the Economy.

"Things are decelerating. We started off 2007 extremely strong and by the end of the year we're seeing an economy that has moderated," Legge adds. "But it's a level that is the envy of any city, anywhere in the world, in terms of growth." Slowing does not mean a stop. A recent CIBC World Markets Inc. analysis concluded that even with its elevated and extended period of nation-leading prosperity, Calgary's economic pace remains top-tier.

"If you are at the top and you continue to lead in terms of momentum, this is impressive," argues CIBC economist Benjamon Tal.

"After such a long boom, it is very difficult to continue to build on this momentum," Tal added.

Calgary's estimated growth of four to 4.5 per cent in 2007 places it in the upper echelon of Canadian cities, second only to Saskatoon.

And Calgary's forecast growth for 2008 of 3.3 per cent to 4.3 per cent is expected to return our city to the top spot among Canadian municipalities for the third time in four years. Similarly, Calgary is expected to be the country's fastest-growing city until at least 2011.

Although Calgary's economic leadership is clear -- on Wednesday it was selected the country's most attractive destination for migrants by the Conference Board of Canada -- the economic development agency's report reveals that there are growing blemishes on Cowtown's economic miracle.

"Things are not without some strain, there's no question about it," Mayor Dave Bronconnier told the Herald. "But when you look at it, Calgary sizes up as one of only three places with this kind of economic growth in the world. The others are Shanghai and Dubai."

Bronconnier noted consistently high growth presents huge planning and building challenges.

"Look at how much more work we need to do," said Bronconnier. "We're trying to play catch-up plus accommodate the new growth that's en route. Prosperity comes with challenges."

Inflation has skyrocketed in 2007 to run well above five per cent, by far the highest in any Canadian city. Job creation -- the engine of much of the city's prosperity and a magnet for newcomers -- has slowed to 1.3 per cent in the first 11 months of 2007. It was 8.1 per cent in 2006.

And some sectors of the Calgary economy, particularly manufacturing, have faced a series of hurdles, including rising costs, worker shortages and a highly valued Canadian dollar, that are decimating their returns from U.S. sales.

Those hurdles have chopped employment in the sector by more than 20 per cent this year alone.

"The labour market definitely hurts," says Gunnar Manufacturing Inc. founder Ron Quigley. "It's very difficult to bring qualified people in."

gscotton@theherald.canwest.com

[atlas_inc]

Lifestyle perks draw people to city's core

Lifestyle perks draw people to city's core

Michelle Magnan, Calgary Herald

Published: Tuesday, January 01, 2008

There are many aspects about inner-city condo living that appeal to Nick Rowe.

First, there's the view of the city's skyline that he enjoys every morning while sitting at his breakfast bar.

Then, there's the fact that he can walk to his office in Mission. The 20-minute stroll not only lets him cut the amount of pollution he creates -- a contribution he feels good about -- but it also gives him time with his thoughts, a chance to plan his workday. And he's already looking forward to next summer's Stampede, when he'll be able to walk to the grounds.

But it's not just convenience that he's after.

Rowe, 28, recently moved into Arriva, one of the new inner-city condo buildings, which will be decked out with premium offerings such as two restaurants, an outdoor park, a wine boutique and an executive medical concierge service once construction is completed in the spring.

Luxuries, convenience and lifestyle perks appeal to more than just Rowe -- the new year is set to see thousands of people looking for an upscale life move into the city's core.

The City of Calgary estimates that 8,500 new residents will move to the Beltline in the next two to five years, pushing the population in the area to 25,000.

There are approximately 3,400 units under construction and plans for another 2,100, according to Thom Mahler, co-ordinator of Centre City planning and design policy with the city.

And according to the Centre City Plan, published in June 2007, officials expect up to 40,000 new residents and more than 60,000 new employees to invade the inner city by 2035.

"The biggest surprise from the planning department's standpoint is the strength of demand for residential development," says Mahler. "With the in-migration of people from other cities, it's a different type of demographic than was living in Calgary before. The demographic has certainly gone upscale." Mahler says the influx of people with money from other cities such as Toronto and Vancouver means the demand for condos with amenities has soared, and developers are meeting it with buildings that include retail services such as restaurants and grocery stores.

"That's what (people from other cities) are used to, that's what they're looking for," says Mahler.

Christina Hagerty, a real estate saleswoman who's been in the Calgary market for 16 years, says she too has noticed a shift in what people are looking for.

Beyond the demand for high-end, quality condos, she believes that people here are looking for a certain type of lifestyle.

"Part of that has to do with the city growing up and (having) such a large community of 30-somethings that has been able to travel to other destinations other than just hick-town Calgary," she says.

She believes the European way -- being within walking distance to your favourite wine, bread, and flower shops, for example -- is gaining ground in Calgary.

"I think people are looking for that kind of lifestyle, where they can walk and there's more people they run into and know," she says.

"Communities like Mission and Bridgeland are able to deliver that lifestyle, that European flair, even if it's a small taste of that -- work to live, not live to work." According to Hagerty, Rowe, who splits his time as owner/operator of calgaryrestaurants.ca and an interior designer, represents the main group of people buying downtown condos: young, urban professionals. They may be single or married, but they don't have kids.

"The main demographic we're going after is early 20s to late 30s, people who are out of university and working on their careers rather than working on starting a family," says Chad Hanas, director of sales for Cove Properties Ltd., the company developing the condominium buildings, named Nuera, Sasso and Vetro, along Macleod Trail.

Beyond that, another demographic group is moving into the new condo buildings: empty nesters.

Whether they're looking for a smaller home in the heart of the city, for low-maintenance living, or for nearby amenities such as great restaurants and theatres, empty nesters see value in moving closer to the core.

The motivation (to move downtown) was so that I could be close to my job, but we're also close to everything else," says Tracy McKee, a 46-year-old human resources professional.

She and her husband, Wilf, 59, moved into their one-bedroom condo on the 15th floor of the Sasso building in June 2006.

"We love it. It's very convenient to our lifestyle because we're out a lot," she says.

Their lifestyle includes frequent jogging on the city's pathways, eating out at restaurants such as Fiore Cantina Italiana and Brava Bistro on 17th Avenue, and working out at the downtown YMCA.

Tracy says of all the couples they socialize with, she and Wilf are the only couple that lives downtown. But that's because most of their friends still have university-age kids who live at home.

"If I still had the kids at home, we wouldn't be downtown," she says.

Downtown is a hotspot for another type of person moving into the new condos: the part-time Calgarian.

"There's a surprising amount of people that I cross paths with like that, where they live in Calgary Monday to Thursday and they have another home in Canmore or Kelowna," says Hagerty.

Nick Clark, a 62-year-old professional, has spent many years living only part-time in Calgary. When work would draw him here, he'd stay at his condo in Eau Claire. When he wasn't here, he'd be travelling between Singapore, India, Seattle, his other home in Kelowna or his resort property in Whistler.

"It was ideal to have a residence here rather than to be living in a hotel," he says.

His company has grown and become more settled in Calgary, so Clark lives here on a more regular basis these days, spending about 20 to 25 nights a month in the city, as opposed to just 10.

He appreciates being close to everything from sushi and dim sum restaurants to Kensington and the YMCA, but he's disappointed the city's core seems to vacate on the weekends.

"The city's vibrant Monday through Friday, but Saturday and Sunday it's like a ghost town," says Clark.

It is a common perception, but it seems to be changing.

"Although Calgary has sort of a stigma for being a sleepy town, especially on the weekdays in the inner city, I find quite the opposite," says Rowe, the young professional.

"I think there's a lot of activity, a lot of draw to the inner city. Of course with the (city's) new developments comes a whole bunch of new, primarily young people to the inner city. So you're going to see the expansion of services like restaurants, nightclubs and retail. It's really going to enliven Calgary's downtown core." Rowe and Clark agree that downtown's atmosphere will continue to improve as more people move into the area.

And as for the atmosphere in Rowe's own condo, he'll rely on arriVa's help in that department. He's looking forward to the building's wine boutique opening in the spring.

"I mean, imagine having bottle service to your condo. You call down and say 'I'm having fettucine alfredo. Would you mind bringing up a bottle for me that perfectly pairs with that?' And they'll do that," he says.

Living in one of the city's new condos, it seems, has its perks.

"As soon as I heard about that, it really got me excited," says Rowe. "It's the added touches." mmagnan@theherald.canwest.com

© The Calgary Herald 2008