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Old Posted Oct 3, 2006, 4:08 PM
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CALGARY DEVELOPMENT - Media Article Repository

The purpose of this thread is to keep a repository of all Newspaper Articles, Editorials, Press Releases and any other pertinent information regarding Calgary development.

If you see an article, please post it here in addition to whatever thread you want (such as the "Calgary Construction" thread)

I believe this is a good way to keep us all in the loop when it comes to media releases and to also take a look into the past as to what people were saying months ago.

Remember, this is a repository only. Try and keep the postings related to articles only.
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Old Posted Oct 3, 2006, 4:10 PM
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Site of pharmacy shooting to become sleek property
Strip mall to become $30M mixed use facility
Mario Toneguzzi Calgary Herald Saturday, September 30, 2006

Almost 20 years ago Calgary pharmacy owner Steven Kesler shot and killed a robber on a busy street in Marda Loop that made national headlines and became an infamous chapter in the city's history. Now, the pharmacy where the action took place is slated for the wrecking ball as part of an ambitious redevelopment plan for the block in the popular and growing southwest neighbourhood.

Ronmor Developers Inc., and the Intergulf Cidex Group of Companies plan to build a mixed-use project in the heart of Marda Loop, consisting of six floors with two levels of commercial use (retail and office/professional) and four floors of residential units. There are also plans for a main floor anchor tenant -- a major national grocery store -- and underground parking.

"Marda Loop is an evolving area," said Doug Porozni, vice-president of development for Ronmor. "It's evolving in Calgary where we're getting these mixed-use developments -- the residential, the office, and the commercial retail all fitting into one building and you've got a very strong pedestrian connection available here now as you can tell Marda Loop has always had that strength. We're just building upon it. This will be a catalyst for many things that will happen here. "There's huge demand from retailers who want to be here."

Porozni said the project includes four levels of residential condominiums on top of a commercial office floor and at the base of the building will be a "green grocer in a commercial setting." "It's not a typical grocery store. It will be one that will have more than three entrances to the space. It will have a bistro built into it, a flower shop, etc. It will be able to come out into the streetscape with a very wide sidewalk and on top of that is a two-level parkade," said Porozni.

The 90,000-square-foot project will cost about $30 million.
The anchor tenant is a nationally-known big name grocer. The grocer will be located at the corner of 20th Street and 33rd Avenue S.W. Further down the block there will a fashion retail store. "The retail will be very, very, what I would call, animated to the sidewalk. There will be a tremendous amount of glass," said Porozni. "It won't be just dark walls. It will be glass with entrances and people will be able to enter in a number of different locations."

The commercial office space will likely include four or five tenants.
Abed Itani, president of Intergulf Cidex Group of Companies, said the project can have up to 55 residential units. "We will be building the whole project and Doug will own the commercial. We'll own the residential," said Itani. Itani said construction will start in the spring with an 18-month time span for completion.

Neta Howard's Room Therapy store has reached an agreement with the developer to vacate the premises by Oct. 31 -- the last store open on the block that once included the pharmacy, Super Loonie Stores, Marda Loop Medical Clinic, Olga's Fabric Lane, Bloom Hair & Esthetics, and Living on 33rd. "I'm disappointed that I have to move but I mean the writing was on the wall," said Howard, owner of the store. "As soon as you're the only retailer left in a strip mall, not only does the place start to look a little run down, but people aren't coming down this end. Although my customers were very good as far as continuing to support me, it just became evident that you're not going to be able to carry on for a long time. "We finally came to a decent agreement with the developer so we'll move on." Her store has been at that location for the past three years.

Before Christmas, the pharmacy, which has been there since 1949, and the rest of the current buildings on the site will come down, eliminating the last visible sign of an infamous Calgary legacy. On Nov. 8, 1986, two masked men entered the South Calgary IDA drugstore at 2039 33rd Ave. S.W. just before 3 p.m. One of them carrying a loaded gun, went to the back of the pharmacy where Kesler's wife Mary was dispensing drugs in her job as a pharmacist. Kesler was confronted by another robber at the counter in the front of the store. He chased the bandit out of the pharmacy and down the street where he fired a single shotgun blast into the man. Timothy David Smith, 27, fell to the street unconscious still clutching $115 from the robbery. He later died in hospital. Kesler then returned to the store, where the second bandit remained. There was an exchange of gunfire inside the store, the culprit fled to his car nearby, where Kesler began clubbing him with a shotgun as police arrived.
Kesler was charged by city police with second-degree murder. But a jury acquitted the Calgary man.

Jon Lord, owner of Casablanca Video across from where the new development will be built, said the demise of the drugstore brings an end to a chapter of Calgary's history. "That was back in 1986. Actually I still have the clippings from then. It brings back some memories," said Lord, a former city alderman and former Alberta MLA. "But it's all going the way of new buildings these days. Certainly a changed district from what it was back then."
mtoneguzzi@theherald.canwest.com

© The Calgary Herald 2006
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Old Posted Oct 7, 2006, 4:05 AM
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Fri, October 6, 2006
House plan for former Forces site
UPDATED: 2006-10-06 01:10:41 MST


By SHAWN LOGAN
The vacant Currie Barracks site could soon be home to a major residential community after the Calgary Planning Commission yesterday signed off on plans to develop the former Canadian Forces base.
The 78.7-hectare property in the city's southwest is being developed by the Canada Lands Company and will include a mix of residential areas alongside some commercial development, similar to the nearby Garrison Woods community.
The commission agreed to allow a flexible zoning approach that will allow the developer to implement unique architectural and landscaping features on an experimental basis.
The new zoning and changes to the area's master plan must still be approved by council before the developer can seek permits and begin construction.
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Old Posted Oct 18, 2006, 5:21 PM
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Alberta real estate an investor's dream
Report ranks Edmonton No. 1 in nation; Calgary third
Mario Toneguzzi, with files from Shaun Polczer, Calgary Herald
Calgary Herald
Wednesday, October 18, 2006

If you want to invest and make money in residential real estate, Alberta is the place to do it.
The Real Estate Investment Network released its top 10 Alberta investment towns report on Tuesday, with Edmonton heading the list -- Calgary was third overall.
The report noted the top investment opportunities in Ontario and British Columbia would only rank eighth on Alberta's list.
"Alberta is the place right now to be putting your money for long term. Yes. Absolutely," said Don Campbell, president of the network and co-author of the report.
The report says Alberta's strong economy makes it the obvious place to invest in real estate in the country, despite recent large increases in values.
"Fundamentally speaking, Alberta's economy is as good as it gets," says the report.
"High energy prices, rapid population growth, low unemployment, an abundance of jobs, improved infrastructure and affordable housing costs translate into Alberta being the No. 1 region in Canada -- if not the world -- in which to invest."
Edmonton topped the list again this year followed by Grande Prairie and Calgary, with Red Deer, Sturgeon County and Strathcona County tied in fourth.
Calgary was third in the previous list as well, while Grande Prairie jumped from eighth place.
The report analyzes the current and future prospects for real estate investment and identifies the best towns for long-term real estate investing.
"Edmonton is No. 1 again due to the marketplace fundamentals all being in place for a strong, long run," said Campbell.
"Up in Edmonton, the potential for positive cash flow is still there for investors," said Campbell. "It means rents can still cover all of the operating costs of property. In Calgary, that is getting much, much more difficult from an investor's point of view.
"From a homeowner's point of view, Calgary and Edmonton homeowners are going to do incredibly well over the next five to eight years. The only reason Edmonton is a little ahead of Calgary is that Edmonton always follows Calgary 18 to 24 months behind. So, generally, whatever is happening in the Calgary region economically, housing market, etc., generally ripples up to Edmonton in the next 18 or 24 months. We've seen what's happened in the last crazy 15 months in Calgary and we expect a strong ripple from that to hit Edmonton in the next 18 months or so."
In September, the average residential MLS sale price in Calgary was $369,928 -- an increase of 45.7 per cent from September 2005. In Edmonton, the average residential MLS sale price was $278,732 -- an increase of 46.3 per cent from September 2005.
Alan Tennant, president of the Canadian Real Estate Association, said Alberta realtors and investors have known for some time that the province is a great place to invest in real estate.
"I guess this last several months has been our coming out party," said Tennant. "It's no secret that there's lots of great places to invest in Canada, but for Alberta to elbow its way up the line is very interesting."
He said the national residential MLS average sale price in major Canadian markets was $294,245 in the third quarter of this year -- a 10.1 per cent increase from the third quarter in 2005.
Kevin Clark, president of the Calgary Real Estate Board, said real estate has "always maintained itself as a strong investment within the economy of investments."
"Now is probably one of the best times this year to be in a position as a buyer to enter the investment marketplace if they can . . . and long-term real estate should maintain itself as an investment," said Clark.
"An investment is going to be driven by the outside economy upon it. So if all the economic factors occurring in a given geographical area are strong then, yes, real estate is going to be a very good investment within that marketplace."
Campbell said Alberta will outperform the rest of the country this year, with a conservative estimate of a 10 to 15 per cent increase in the average price of residential real estate across the province.
"In Calgary, the market can't sustain the 40 per cent increases we've been seeing," added Campbell.
"It has to come back to reality in the next 18 months. But the Alberta reality will be records anywhere else."
The top investment places in Alberta also include Okotoks, High River and Cochrane.
"Lots of stuff in the Calgary region. The ripple from Calgary once again is pushed out. The in-migration, I think, is going to be the No. 1 thing for the region," said Campbell. "They're talking 250,000 new people (will move) into Calgary in the next decade, and I believe that's going to be low.
"On top of that, when Calgary starts to get more expensive . . . that pushes out into the surrounding areas and you could almost start including Black Diamond, Turner Valley."
Vic Pasay, a lifelong Redwater resident and Sturgeon County councillor who sits on its Economic Development Board, said: "I'm surprised to hear it, word has gotten out" of its fourth place ranking, tied with Red Deer.
"Sturgeon has always been very open to investment and so has the community. We're positioned strategically between Fort McMurray and Edmonton to make these projects happen," he said.
In addition to three heavy oil upgraders, Sturgeon is the proposed site of a hog processing plant and a bio-diesel facility to turn canola oil into fuel.
The county implemented an economic development department seven years ago to attract more industry to the community.
mtoneguzzi@theherald.canwest.com
Best Places to Sink Your Money
Top real estate investment areas in Alberta, according to the Real Estate Investment Network
1. Edmonton: Market poised for "a strong, long run"
2. Grande Prairie
3. Calgary
4. Red Deer*
*Tied with Sturgeon County and Strathcona County
5. Sylvan Lake*
*Tied with Lacombe
6. Okotoks*
*Tied with High River
7. Fort Mcmurray*
*Tied with Devon
8. St. Albert
9. St. Albert
10. Lethbridge
This story features a factbox "Best Places to Sink Your Money".
© The Calgary Herald 2006
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Old Posted Nov 6, 2006, 4:28 AM
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FFWD Mag.

Boom gone bad?
Calgary’s supercharged economy is making life worse for many CalgariansLiving in Calgary is a surreal experience these days as the economic boom continues to accelerate like a Hummer roaring down a freeway. As Albertans we are in the middle of what feels like a vast sociological experiment — a super boom that Statistics Canada describes as "China-like" in proportion. In a September report Statistics Canada stated that Alberta is in the middle of the strongest period of economic growth ever recorded by any Canadian province. The economy has grown by an annual average of 12.7 per cent between 2002 and 2005 and our GDP has grown by 43 per cent in the same time period. That’s not far behind China — the world’s hottest economy — that is growing at an annual average rate of 14.8 per cent. Corporate profits in Alberta doubled to $53.1 billion from $23.5 billion between 2002 and 2005. Consumer spending is 17 per cent higher than in 2005 and is "on track for the best year of any province ever," says Statistics Canada. Average hourly wages in the province are the highest in Canada at $21, we have the lowest unemployment in North America and the province’s population has grown at a faster rate than any other province every year since 1996.
There’s no question the boom has been good for some Calgarians. However, an increasing number of people are in danger of being flattened by the city’s racing economic vehicle, and some have already been run over.


THE DARK SIDE
"This boom is just great for the people wanting to buy $1 million dollar houses and who don’t know what to do with all their stock options," says Gord Christie, executive secretary of the Calgary District Labour Council. "The boom is doing fabulous things for 20 per cent of our population, but for the other 80 per cent, the average, it’s sad. Eighty per cent of our population isn’t really and truly benefiting from our boom."
Calgary is rapidly becoming less affordable for people whose incomes are not keeping pace with cost of living increases. Housing prices increased by 49.6 per cent between August 2005 and August 2006. The average combined residential sale price of a home in Calgary in October was $374,269. Calgary’s inflation rate is currently running at 5.1 per cent, much higher than anywhere else in the country. According to the Mercer Human Resource Consulting 2006 Worldwide Cost of Living Survey, Calgary is now the 71st most expensive city in the world, moving up 27 spots since 2005.
While some Calgarians and many corporations are getting rich, a surprising number of citizens are just scraping by. Almost one in four (36 per cent) of employed Calgarians made less than $15 an hour in the first six months of 2006. They will make less than $30,000 before taxes this year. Fourteen per cent of Calgarians made less than $10 an hour – less than $20,000 a year before taxes.
There’s also a growing income gap between rich and poor. In 2004, the most recent statistics available, the lowest 20 per cent of income earners made an average of $13,100 a year while the top 20 per cent made an average of $152,800. The homeless population increased by 32.3 per cent between 2004 and 2006 and is now a whopping 3,436 people. This winter the City of Calgary is scrambling to come up with more space for hundreds of homeless people because existing shelters are crammed to capacity.
"There are a lot of people who are continuing to fall behind and who are not benefiting from the economic boom," says Ramona Johnston, manager of Vibrant Communities Calgary. "We see a growing income gap with people who are well off making even more and people who are not doing so well doing about the same. Maybe they’re making a dollar or two more an hour but that doesn’t outweigh the dramatic increase in the cost of living," she says.
Johnston says there’s a "mental and emotional downside" to the boom for those not benefiting.
"People feel that they’re inadequate because they’re not fully experiencing the benefits of the boom. They are struggling and on this treadmill trying to keep up with their neighbours and the wealth that they see around them."
Johnston says the economic disparity is beginning to have "a real negative impact on our sense of community."
Affordable housing is fast becoming not just an issue for low-income Calgarians, but for the middle class as well. The rental vacancy rate is currently estimated at 0.6 per cent. According to the Calgary Mortgage Housing Company there were 919 fewer apartments in 2005 than 2004, and it predicts Calgary will continue to lose apartment buildings to condo conversions and few new apartment buildings will be built. Meanwhile, the high cost of condos and houses is making ownership impossible for many.
Carrie Neilson, chair of Homeless Awareness Calgary, says Calgary’s "supercharged market" is "quickly outpacing the capacity of the average middle class to participate."
"We’ve already closed out the poor. Now we’re squeezing out the middle class. So are we going to end up with this society of absolute haves and absolute have-nots with no middle class in between? That’s my fear," she says.
Activist Brian Pincott, who is a member of Calgary Housing Action Initiative, a grassroots group addressing the housing crisis in Calgary, agrees with Neilson.
"Suddenly what used to be a good, middle class income just doesn’t cut it anymore," he says. "It’s not just a homelessness issue or a housing issue for the people at the bottom end. When you start squeezing out people who are making $40,000 a year and they can’t find housing they can afford, we’ve got a problem."
Other negative aspects of the boom aren’t as easy to quantify but are causing concern.
"I think we’re losing civility and kindness," says Neilson.
She says as an increasing number of Calgarians move into "more and more isolated enclaves or designer communities" people are becoming less empathetic and compassionate towards the down and out.
Johnston says Calgarians are also feeling an increasing amount of pressure to keep up with the richer members of the community.
"When I look at my friends, my acquaintances, I see a growing need to have more material things and a bigger house, a bigger yard and more than one car," she says.
"People who five years ago would’ve considered themselves to be very well off now look at what people around them are earning, what they’re driving and the kinds of houses they’re living in. All of a sudden they feel quite poor. It’s extraordinary, because they’re not at all poor."
Pincott recalls a comment his real estate agent made when he moved to Calgary 10 years ago.
"She said, ‘I really hope we don’t get another boom because when Calgary is in a boom the first thing that goes out the window is civility and caring for each other.’ In our rush to make hay while the sun shines, to grab onto this boom, we do have a tendency to not think much about our fellow Calgarians. We have a tendency not to think long-term," says Pincott.
Dean Neu, co-director of the Centre for Public Interest Accounting at the University of Calgary, says it would be interesting to study what the boom is doing to Calgarians’ psyches.
"Do we become more individualistic? Do we have less of a sense of community because we’ve become greedy, figuring how much money we can extract because everyone is talking about how good the economy is?" he asks.
Neu says Calgarians are avidly watching house prices and economic growth like people monitor sports scores, giving no thought to the negative consequences of the boom.
"We close our eyes to the fact that some people are actually losing. There are winners and losers in a boom," he says.

THE ANECDOTAL EVIDENCE
Fast Forward interviewed random Calgarians in late October, receiving a wide range of opinions on the boom.
Joanne Nakaska, the manager of a retail store and lifelong Calgarian, is loving the boom and says it’s "just giving people more opportunities." Nakaska has had several headhunters try to recruit her to work for other companies. She says she and her husband have been profiting from real estate investments over the last year.
Rob Rothstein says Calgary’s boom is making it a much more interesting place with a strong film festival, folk festival and better restaurants and more bands coming to town. He’s also happy with the rate of downtown revitalization.
"The city is way more vibrant, less dead," he says.
Kevin Boyce, who works at 7-Eleven and as a bartender, says he’s finally making enough money to take a vacation for the first time in two years. He says the job market is ideal for anyone willing to work.
"I’ve met a lot of people who have just moved here and have gotten several job offers. It’s an employees’ market out there," he says."(The boom) is the best thing that’s happened in this province for 20 years."
He says the only problem is the lack of rental accommodation, adding his friend just had to move to Edmonton because he couldn’t find anything in Calgary.
But many others Fast Forward talked to were less enamoured with the boom.
John Kuchera, a lifelong Calgarian aged 53, says the boom is "making everything harder."
"Everything costs more. Roads are crowded. Customer service sucks," he says.
John and his wife Beth are thinking about moving to a cheaper place in Saskatchewan or British Columbia.
A 75-year-old senior, who wouldn’t give his name, says he’s concerned about increased property taxes, crime, drugs and traffic. He’s finding the higher cost of living a challenge.
"It’s starting to squeeze me a little bit," he says, adding he still has to work to get by. "I wouldn’t break even if I had to rely on the Canada Pension Plan. I’m still falling behind even though I’m still working."
Richard, a construction worker from Nova Scotia who’s been in Calgary five years, says affordable housing is the biggest problem. He currently has three friends sleeping in his living room because they can’t find anywhere to stay.
He’s unimpressed with the mentality of some Calgarians. If he’s wearing his work clothes in Calgary, he explains, even if he has $2,000 in his pocket, security guards will approach him at grocery stores or malls and ask him to leave because they think he’s "a bum."
"There’s an attitude of snobbiness in this city. Here there’s the stigma of ‘he has dirt on his hands,’" he says.
Richard’s friend Stuart is currently living on the street while working as often as he can at temporary labour jobs. He lived in his car for five years until it was stolen. He’s also disturbed by some of the treatment he receives.
"There are a lot of arrogant people, a lot of people walk around thinking they’re better than anyone else," he says.
Both men say they feel exploited because they’re getting paid less than $10 an hour by temporary labour companies.
"They’re abusing and taking advantage of the workers," says Stuart, who jokes such companies should be called "Slaves R Us."

OBJECTIVE HERESY
Questioning the positivity of Calgary’s boom is almost heretical. There’s so much hype around its wonders. However, Todd Hirsch, economist at the Canada West Foundation, is one of the growing number of people questioning whether Alberta’s voracious boom is good for the province.
"I think it’s too carried away now. I would like to see the economy cool off," says Hirsch.
Hirsch says Alberta is growing at "breakneck speed," making it very challenging to keep up with infrastructure needs such as new hospitals, schools, public transit and roads. He’s also concerned the boom is increasing urban sprawl.
"One of the dangers in a city like Calgary (is that planners) might just say we need more roads, more subdivisions and they don’t take time to properly plan smart growth. I don’t think they stop to consider we need higher density up rather than growing out," says Hirsch.
"We’re accustomed to saying a growing population is terrific. But at the same time it leads to some growing pains when you’re welcoming this number of new Albertans into the province every year."
Calgary’s footprint is currently 480 square kilometres. Land use ecologist Brad Stelfox predicts that Calgary could grow to be more than 2,000 square kilometres, meaning that in 50 years it would push up against Kananaskis Country if it continues its current rate of growth.
However, Hirsch says Calgary’s current situation is still preferable to a faltering economy.
"We would rather have this than what was happening in Calgary in 1982 with people walking away from their mortgage because there was no hope — plummeting real estate prices, massive unemployment, people leaving the province. You don’t want that," he says.
"We are facing some problems. There’s crunches and certainly there are people whose wages are not keeping up, but I think we’d still rather be here and hoping the economy will slow a little than being (in) a recession. A lot of people in Alberta are homeless but there’s a lot more who are enjoying some really prosperous times."

TURN DOWN THE SUCK
For Albertans who are hoping that the boom will slow down there may be hope on the horizon. In an August report on housing the TD Bank Financial Group said that "recent dramatic price gains" in Calgary are "unsustainable" and the market is vulnerable to price moderation or even a drop in prices. In a September provincial economic forecast report, the TD Bank Financial Group stated that the possibility of a bust in the economy has risen to 20 to 25 per cent and the peak of Alberta’s boom has passed.
"There is no doubt that many of the ingredients of an overheated economy appear to be in place in Wild Rose Country," says the report. Report authors predict "the mood of euphoria that is pervasive in Alberta will die down significantly." For the people currently feeling left out of the positive impact of the boom that’s likely good news.
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Old Posted Nov 6, 2006, 10:47 PM
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Calgary's economic outlook good for 2007
by Angela Anderson
Calgary Real Estate News| Vol. 24 No. 41 | October 12, 2006


Business and community leaders gathered Oct. 5 to hear Adam Legge, director of research and business information at Calgary Economic Development, and Don Drummond, senior vice president and chief economist at TD Bank Financial Group share their insight into the state of the local and national economy for the coming year at the 2007 Economic Outlook luncheon at the Westin Hotel in Calgary.

While 2007 is forecasted to be a strong year, it was dully noted that the booming growth of 2006 would not likely be equaled.

“Alberta’s economy is red hot at the moment,†said Drummond. “The interesting question is whether it will repeat the more traditional boom-to-bust cycle. TD Economics believes growth will slow but the bust will be avoided because of a number of positive economic and policy developments.â€

Legge agreed, and in his presentation outlined the forecasted numbers relating to growth, the business sector, housing and immigration. And while he said they wouldn’t likely reach the same heights as in 2006, healthy growth shall still occur.

He explained that there are numerous external drivers that will impact the opportunities for economic growth in Calgary over the next year.

These include falling commodity prices in the U.S. and the overall U.S. economy performance.

“There is a generally widespread consensus that the U.S. economy is heading for, if not already into, a slowdown,†Legge said.

The main contributor to that includes a cooling down of the U.S. housing market.

While it’s slowing down, Legge said general thoughts are that the slowdown will likely rebound by the end of 2007.

Because the U.S. economy accounts for over 20% of the world economy, it impacts everywhere else, especially Canada.

In Calgary, key sectors are expected to continue to perform strongly, Legge said.

The energy sector will do well with major projects in the north, and energy prices are forecasted to remain elevated by the end of next year.

Construction will continue in both residential and non-residential markets, he noted.

And Calgary’s location should continue to drive the transportation and logistics sector.

While gross domestic product numbers will fall from 2006 from 6.6% to 3.9%, Legge assured that the latter is still very healthy growth, adding that 2006 was a record year for Calgary in many senses, so anything will likely appear less prosperous.

Inflation is estimated to grow by 2.7% for 2007, while it was 3.7% this year.

As for population growth, Legge said it would be difficult to bypass the 2006 numbers, as this year was a record year especially for net migration.

In total, the population of Calgary grew by nearly 36,000 people, with almost 26,000 net immigrants.

In 2007, it’s expected to be a total of around 20,000 with about 10,000 to 12,000 net immigrants.

“With healthy in-migration, continued low interest rates and wage gains, housing demand in Calgary should still be significant,†Legge said.

The Conference Board of Canada forecasts 15,000 housing starts in 2007, down from 17,500 forecasted in 2006, but that’s still within the upper range of the five-year historical.

Legge said that while the future remains bright, there are a few economic pressures that are causing economists to be cautious when forecasting the next year.

“The level of optimism about Calgary, both by the local community and by analysts of our economy, remains high into 2007,†he said. “Calgary will lead Canada in performance of urban economies in 2007 as forecasted by the Conference Board of Canada.

“While the outlook for Calgary is positive, the slower sustainable growth allows for more breathing room. However, we remain cautious due to the three pressure points.â€

Those pressure points, Legge outlined during the conference — none of which “appear to be near resolution or mitigation in any significant way in 2007†— are labour shortages, office space shortages, and affordable housing.

Legge explained that while the unemployment rate is expected to increase slightly in 2007, labour shortages are not likely to improve significantly in the next year.

“Some may say that the claims that the sky is falling have come true, and while the sky is not falling, talk to any business person or HR person about their labour situations, and I’m sure that you’ll hear they’re experiencing difficulty in retention and attraction.

“Anybody who drives down Macleod Trail or walks through a mall and doesn’t see the labour shortage isn’t reading the signs,†he told luncheon attendees.

The Conference Board of Canada forecasts Calgary’s employment growth for 2007 to be by 1.9% overall, down from the 7% forecasted for 2006.

However, Legge assured that 1.9% is still a healthy level of growth.

The unemployment rate is predicted to rise up to 3.7%, slightly above the 2.4% forecasted for 2006.

While numerous office space projects are scheduled for completion in 2007-2008, and many more announced or underway, Legge said the demand remains strong with “few options, particularly in the downtown high quality contiguous segment.â€

CED’s Office Market forecast, released in June 2006, estimated a need for an additional 5.4 million sq. ft. of office space to satisfy demand by 2010.

“At present, it does not appear that Calgary will reach this figure with all the new projects under construction,†Legge said, adding that it will likely take three to five years before the pressure is eased in this area.

The third pressure, and according to Legge, a critical point, is the issue of affordable housing.

“Entry level home prices are now a step above, making it difficult for first time homebuyers to get into the market,†he noted.

“The prices are unlikely to drop and with no new rental units scheduled in 2007 this ultimately becomes a competitive issue and a quality of life issue.â€

Legge explained that the lack of affordable housing affects the City’s ability to attract new workers, and therefore makes it difficult to address the labour shortage.

However, even taking in account the pressure points, 2007 looks to be a very strong year for the City’s economy.

“Calgary will lead Canada’s major urban centres in 2007 from an economic performance perspective,†Legge said.

Angela Anderson is a Calgary Real Estate News reporter.

Last edited by Surrealplaces; Nov 6, 2006 at 10:56 PM.
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Old Posted Nov 6, 2006, 10:52 PM
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Calgary's space race
by Angela Anderson
Misc | Vol. 24 No. 43 | October 26, 2006

While Alberta is currently experiencing the strongest period of economic growth ever registered by any province in the country—a growth of 43% over the last three years, making the province’s annual growth on par with China—the lack of space is leaving little choice for businesses wanting to move their offices to the city.

GVA Devencore Worldwide, a commercial real estate research firm with offices across the globe released its fall 2006 report analyzing and comparing the markets of each of Canada’s major cities, and is warning that the business community must prepare strategies for the long term.

While major players in the commercial development industry have addressed the market, with numerous projects on the go around the city, the space is getting snapped up fast by tenants, mainly before projects enter the market.

There are a number of large building projects nearing completion throughout the city by major developers Bentall, Opus Building Corp., Tonko Realty Advisors and Homburg-Centron, which will collectively bring approximately 1.7 million sq. ft. to the market by their completion dates, which range from mid-2007 to early 2008.

And Opus announced last week that they would begin construction of Opus Campus this spring, which will be one of Calgary’s largest suburban office developments—about 800,000 sq. ft., but that project will not be complete until 2010. Opus Campus will be located on Horton Rd. SW at the corner of Macleod Trail and Heritage Drive and will include three buildings of 12, 10 and six storeys.

The report by Devencore says that in the meantime, the projects under construction are being fully pre-leased within weeks of the commencement of their marketing periods.

Jacquelyn Laflanne, a leasing assistant from Opus confirmed that the Opus 8 project, scheduled to be completed in the summer of 2007, is sold out except for about 10,000 sq. ft., which is already completely pre-leased.

It’s the same story with the Centrium development by Tonko Realty Advisors, located downtown and totaling 225,000 sq. ft. According to the developer’s web site inventory, it is completely leased and scheduled for occupation early next year.

There are a number of other major projects being considered for the downtown core, however, it will still be some time before they have an impact on the current space shortage, the report notes.

In the second quarter of 2003, approximately 11.5% of commercial space in the city was available for lease or sublet and since then, vacancy rates have steadily, and dramatically, decreased.

Six months ago, office vacancy rates stood at 1%. Today, that number has dropped to 0.1%, meaning only 38,000 sq. ft. is currently available for lease or sublet.

Calgary has by far the lowest office space vacancy rate in the country and in North America.

This is compared with Ottawa’s vacancy rate of 3%, Vancouver’s vacancy rate of 4.2%, Toronto’s rate of 7.5% and Montreal’s rate of 8.9%.

The severe shortage of space is having an impact on companies trying to reduce cost and boost profitability, says the report by Devencore.

“Faced with five to ten year lease commitments, tenants need to ensure that their lease agreements are flexible and allow for future expansion,†the company said in its Spotlight on Vancouver and Calgary Markets, also in the Fall 2006 report.

However, the squeeze for space is not supporting that, and leaving companies scrambling to find space.

“For the time being, tenants seeking space in the Calgary area will find more extensive options in the outlying areas of the city, where some space still exists and rents are lower than those currently being demanded in the downtown district,†the report says.

Over the short term, Devencore warns tenants who wish to locate or expand in downtown Calgary will find their options extremely limited.

The report concludes, “Tenants and their real estate representatives will have to be very alert to any new opportunities and prepare strategies for the long term.â€

—Angela Anderson is a Calgary Real Estate News reporter.
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Old Posted Dec 3, 2006, 9:05 PM
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Sat, December 2, 2006
City takin' care of business
UPDATED: 2006-12-02 03:36:14 MST

Job market working overtime at just 2.8% unemployment

By IAN WILSON, BUSINESS EDITOR

Calgary's unemployment rate slipped below 3% last month -- the lowest level in the country -- as workers flooded into the province to find work.

The city's jobless rate dropped from 3.2% in October to 2.8% in November and Edmonton posted a 3.8% rate last month.

Alberta's unemployment figure edged up from the previous month, rising slightly to 3.1%, but the province's jobless rate was half the national level.

"Alberta continues to fuel employment growth in the country, accounting for 40 percent of the national increase so far this year," said Statistics Canada.

StatsCan's labour report said employment in the province has increased by 112,000 positions over the course of the year.

Canada's natural resource sector recorded the greatest rate of employment growth, up 11.8%, with Alberta and B.C. providing the biggest boost in that area.

Alberta has also driven the country's jump in construction jobs in 2006, as the province added 19,000 positions in that sector.

Across Canada, 22,400 new net positions were created and the unemployment rate came in at 6.3%.

"In contrast to previous months, November's gain was concentrated entirely in part-time positions which more than compensated for a decline in full-time employment," said David Tulk, economist with TD Bank Financial Group.

"The stellar performance of Canada's labour market has also enticed more people to enter the labour force in search of work."

Tulk said 2006 is expected to yield the labour market's best performance in three years with the anticipated addition of 300,000 new net jobs.
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Old Posted Dec 3, 2006, 9:09 PM
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Highrises put city in the shade
Richard White For The Calgary Herald Saturday, December 02, 2006

Designing buildings and public spaces in winter cities like Calgary is very different from cities like Barcelona or Vancouver. In his 1995 book, Northern Cityscapes: Linking Design to Climate, Norman Pressman illustrates how too often, designers and architects have a perpetual state of summer in mind when they design public spaces (the spaces work well when it is warm outside, but expose people to chilling winds and cold shadows in the winter).

Calgary's Plus-15 system is our most obvious adaptation to winter.
It allows downtown workers and their clients to move from offices to hotels, retail shops and parkades without having to deal with the harsh winter climate. People who criticize the Plus 15 system for destroying the vitality of city streets don't appreciate how the Plus 15s add vitality by allowing people from the edges of downtown to get to places like Bankers Hall or Stephen Avenue when the weather is poor. It is common knowledge that when the weather is nice, people walk outside; when it isn't, they walk inside.

Nobody ever says Montreal's underground system destroys the street life on St. Catherine's Street. The creation of Calgary's Devonian Gardens in 1977, as a wonderful tropical oasis, is another adaptation in Calgary to our winter climate. It created a wonderful year-round park space for all Calgarians to enjoy. Our indoor water slides and our wonderful recreation centres are also examples of adapting to winter.

Not all adaptation needs to bring people inside. Calgary is fortunate to have plenty of sunshine in the winter that can turn a cold day into a very pleasant one. To do so, we design buildings that allow the sun to shine on our sidewalks, pathways or plazas in the winter months. While we have taken some steps to protect and capitalize on our sunshine, we can do better.

Building heights in the downtown are restricted to allow more light on the Bow River pathway, Stephen Avenue and Olympic Plaza. But there is pressure to allow for exemptions as the demand for more and taller office buildings increases. The sun along 8th Avenue in the winter will be less when Bankers Court, Penny Lane and the Homburg developments along 9th Avenue are completed. Bright sunshine currently warms up the skating rink at Olympic Plaza in the middle of winter, but what happens if tall buildings are built on the neighbouring blocks?

As Calgary builds more highrises, the amount of sun that will reach the sidewalks and public spaces of our city centre will be less and less. James Short Park -- already in shade most of the time due to the TransCanada PipeLines, Petro Canada and Sun Life towers -- will be totally engulfed in shade when Encana's new building is constructed. The courthouse park will be in shadow due to the new courthouse complex, Penny Lane and the proposed new ESSO tower.

Calgary needs to rethink if taller is better. Probably the best example of poor winter design is the First Canadian Centre. For some reason, the developer oriented the building to the northwest and not the southwest.
As a result, there is no plaza on the sunny southwest corner, while the northwest plaza is in shade almost year-round. Bankers Hall has a multi-million-dollar plaza on its southwest corner that is always empty because it is in shade all the time. What a waste.

The importance of sun can be seen along 17th or 11th avenues, where the majority of the shops are located on the north side of the street. Why? Because pedestrians love to walk in the winter sun. The Ship and Anchor patio is used year-round. Why? Because it gets sun in the winter.
We have to let the sun shine down on our urban sidewalks, plazas and parks. What we also need are more pocket parks and plazas -- small spaces that get lots of sun and need only 10 to 20 people to animate them.

The best example is the indentation next to the Roasterie on the east side of 10th Street N.W. It is full of people year-round. There are no special banners, benches, decorative bricks or other enhancements, just coffee and sunshine. Creating large parks and plazas becomes problematic in winter cities because they need hundreds, if not thousands, of people to make them animated. This just isn't going to happen for six months of the year.

For years, Calgary has given developers a density bonus (additional floors) if they build arcades (covered walks) like the one at The Bay on Stephen Avenue. In warmer climates, such areas work great and are often used as patio areas, allowing people to get out of the summer sun. In Calgary, they are always cold and gloomy places. They often become shelters for the homeless and panhandlers, and the pillars in the middle of the sidewalk make walking more difficult.

Why are we still giving a bonus for creating negative urban spaces? Even the planting of trees and types of trees needs to be carefully planned in a winter city. A row of large pine trees planted too close to the sidewalk can cast a shadow on the sidewalk or a pathway for several months in the winter, creating cold icy conditions that nobody wants to use. While a row of elms creates a canopy that is inviting to walk under, it still allows the sun to shine on the sidewalk in the winter.

The positioning of buildings, gaps between buildings, and building shapes must be taken into account to avoid the creation of wind tunnels. The Nexen building, placed at an angle to Calgary's predominately west winds, creates a wind tunnel that sometimes is so bad, the wind actually creates a whistling sound. Good design that is appropriate for Calgary's climate, and sensitive to the site, is critical to creating good urban places where people want to work, live and play. It doesn't require innovation, but it does require insight and investigation.

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

Some ideas for winter city design:
- Ensure sun shines on sidewalk and plaza areas;
- Avoid creating wind tunnels;
- Create more pocket parks and plazas;
- Avoid arcades;
- Plant trees carefully.
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Old Posted Dec 12, 2006, 6:36 AM
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The proposed merger of Trammell Crow Co. and CB Richard Ellis Inc. has been given the green light by the Federal Trade Commission.

The combination of Dallas-based Trammell Crow (NYSE: TCC) and CB Richard Ellis (NYSE: CBG) in Los Angeles will create a company with about $4.4 billion in annual revenue and more than 10 percent of the commercial real estate market.


The $1.79 billion deal is set to close Dec. 20, provided Trammell Crow shareholders approve the merger during a Dec. 18 special meeting.
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Old Posted Dec 23, 2006, 6:56 PM
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Boom and bust?: This time around, much is different
Kathy McCormick Calgary Herald Saturday, December 23, 2006


CREDIT: Leah Hennel, Calgary HeraldA condo tower under construction in downtown Calgary helps reshape the inner city."The Calgary housing market-- is it deja vu all over again?"
So asks a Toronto real estate research firm in its latest report.
The Clayton Housing Report is referring to the boom and bust that happened in this city in the late 1970s and early 1980s.
Construction starts of multi-family housing are expected to reach 6,750 units this year -- the best performance since 1981.
But when the market soared to similar heights in the early '80s, it was followed by a bust that sent home equity spiralling downward.
By 1984, construction starts had plummeted to less than 2,000 units. "Can we expect a similar boom/ bust story in post 2007 Calgary?" asks the report.
The answer is there are several similarities with the '80s, but there is also much that is different.
As in the past, rising world oil prices have spurred energy sector investment; job seekers are flocking to Calgary; and housing affordability is becoming a concern.
But the Clayton report says Calgary is still considered relatively affordable and that as far as the economy goes, any adjustments to the price of oil are expected to be muted this time around.
Interest rates are also expected to stay in check and Calgary's economy is better positioned to weather any energy industry slowdown.
In the early 1980s, "affordability became so bad that many walked away from their homes (which they acquired with low down payments) which frightened lenders off for many years," says the report.
This year, housing prices in both the resale and new sectors rose dramatically as demand soared.
Many people turned to the condo market because they could no longer qualify for a single-family home mortgage, but even the multi-family sector spiralled upward.
Resale condos prices grew an average of 41 per cent compared to last year -- up to $259,600 by the end of 2006. "That compares to our last oil boom, where the largest price increase was 34 per cent in 1976," says Calvin Buss, president of Millennium Realty, which specializes in downtown condo developments as well as investment and recreational properties.
Investors and speculators jumped into the market, pushing demand even higher. Supply couldn't meet demand, so prices rose even more.
Add on factors such as the increasing costs of materials and labour shortages for homebuilders, as well as delays in getting approvals from the city, and the industry faced huge challenges this year, says Barry Chow, president of Resiance Corp.
"Both prices and construction costs were reaching such heights that there was no predictability and no stability in what we were trying to do," he says.
High-rise construction was especially susceptible because such projects take up to two years or more to build.
In a more traditional market, bankers would ask builders to pre-sell a certain percentage of the units before getting financing for construction.
But in this hectic market, prices for those pre-sales were almost impossible to forecast -- and prices rose so dramatically that, for some companies, their project was no longer viable.
Some builders pulled their developments off the market; some actually gave back deposits that people had put down in pre-sales, then re-priced units and put them up for sale later; and still others only released a small number of units at any one time in an effort to get a handle on costs.
Resiance was one developer affected by the price escalations. Earlier this year, its Midtown high-rise in the downtown core was closed, with deposits returned to customers.
"Our whole strategy was to re-price the units and not bring them on until a time that I could establish prices with some certainty," says Chow. "At this point, we continue to have progress, but I'm not prepared as yet to say that we are going ahead with the project."
The two-tower Midtown complex will have 650 units in total and sales are continuing, with most of the original buyers buying back in, he says. "Today, people are more sensitive to the fact that these are risky projects, but they are well-informed," says Chow.
"People are taking the time to ask the right questions and to make an educated decision. Going forward, it's a much more rational market."
Some builders have started construction without any pre-sales, says Naum Shteinbah, general manager of Streetside Developments, one of the larger multi-family builders in the city.
"We have stopped pre-selling because it has become risky," he says. "We now bring a building to the finishing stage, then sell."
So, will the market end up a bust, as happened in the early 1980s?
Not likely, say the experts.
"Several 'giant killers' of the mid 1970s/early 1980s boom -- like escalating interest rates and plunging oil prices -- are unlikely to come into play this time around," says the Clayton report.
The five-year mortgage rate averaged 6.67 per cent this year and it's expected to stay close to that or even lower next year, says Canada Mortgage and Housing Corp.
Such rates compare to the early '80s when interest rates were in the high teens, even creeping into the 20 per cent range or more.
Employment growth this year will likely be in the range of 40,000 new jobs by the end of this year and CMHC predicts it will be 15,000 next year -- compared to 7,150 in 2005.
Net migration of people to Calgary will remain in the range of 26,000 this year and next, it says.
Oil prices will remain high, in part because of the emerging demand from China and Asia, which together accounted for almost half of the world's GDP growth from 2004 to 2006, says Benjamin Tal, senior economist with CIBC World Markets.
"Combining this with potential OPEC production cuts to sustain oil prices and there seems to be support for oil prices at least not declining in the next few years," says the Clayton report.
At the same time, there doesn't appear to be anything on the horizon that would kill the Alberta economy the way the Ottawa's hated National Energy Program did in the early '80s.
Other indicators of the current situation include the latest rental market report from CMHC.
While it mirrors the early 1980s in some respects, it's decidedly different, says the report.
Although October's vacancy rate of 0.5 per cent, which matches the record set in October 1997, compares to those of the latter 1970s, governments during that era introduced programs to stimulate housing starts in Calgary.
Among them was the federal Multiple Unit Residential Building (MURB) program, which provided a tax incentive for investment in rental housing.
The Alberta Family Home Purchase Program and the Alberta Rental Incentive Program were two other provincial incentive programs.
Hence, much of the multi-family starts were construction of rental units.
Because there are no such programs in place today, new rental unit development is not likely to take place in any large numbers, says the Clayton report. "There are no incentive programs that are artificially stimulating housing starts or bringing forward demand in the short-term, which should cushion any potential downside adjustment should the economy turn."
Meanwhile, housing prices have somewhat stabilized -- not going down, but remaining flat -- and that's a good thing, says Chow.
"Every builder has a genuine concern with the price of housing in Calgary," he says.
"Affordability is affecting a large segment of the population. Even so, you have to temper that with an understanding that for decades, Calgary housing has been underpriced."
The Clayton report agrees: "House price increases have been substantial over the past year, and have negatively impacted affordability. But in relative terms, affordability so far remains good, with the current ratio near the national average.
"House prices in Calgary have been low in relative terms compared to other major markets for many years and the increases this year were in part a 'catch-up.'"
That means the multi-family sector will continue to grow. Some builders have expanded their product lines to include condominiums.
Morrison Homes recently announced the addition of a new multi-family division called Vertical.
"Builders are starting to look toward multi-family row housing projects to bring in product at a lower price," says Al Morrison, president of Morrison Homes.

© The Calgary Herald 2006



Projects changing face of inner city
2006 was year of consolidation for Calgary
Richard White For The Calgary Herald Saturday, December 23, 2006


CREDIT: Grant Black, Calgary HeraldJohn Torode of Torode Residential Ltd. stands near a model of the arriVa condo complex.From an urban living perspective, this past year has been one of consolidation for both the city and private developers.
The City of Calgary planning department has focused on getting the Beltline plan approved and drafting the new Centre City plan.
Both of these documents will be catalyst for creative, new mixed-use urban development during the next 10 years.
The city has also been busy putting together its TIF policy (Tax Increment Financing) for East Village and implementing Phase Two of The Bridges in Bridgeland.
The Beltline Plan is notable as it encourages densification rather than discourages it.
Kudos to the Beltline Community Association and the business revitalization zones (BRZs) in the area who have championed this plan for the past several years.
Finally, after several years of negotiation, Canada Lands Co. received approval from the city for the development of Currie Barracks.
This ambitious project will create a self-sustaining, mixed-use work/live/play community in the inner city. It will have features never before seen in Calgary.
From the private developers' perspective, this year of consolidation has meant adapting to the new economic realities of construction costs in Calgary (with increases of one to 1.5 per cent per month).
This has resulted in some condo developers giving back to potential buyers deposits on their buildings, as well as looking at refinancing the projects.
There have even been some casualties, such as the planned 4th Street condo project, which has since been converted into an office building.
One of the most amazing developments of 2006 was the emergence of East Victoria Park as downtown's hottest place to live.
Who would have thought this could happen, even two or three years ago?
Kudos to Cove Properties and Torode for being the pioneers responsible for revitalization of this area with Arriva, Sasso, Vetro and now Nuera condos.
The new Keynote project also promises to add another dimension to the area.
It includes office, residential and retail components -- even an urban grocery store -- on one block.
Together with the groundbreaking of Stampede Park's expansion, East Victoria Park's revitalization is a reality. I thought I would never live to see this happen.
Other major new urban developments in 2006 include Anthem Properties' plans for a major condo development on the old Greyhound Bus Terminal site, linking Eau Claire and Chinatown along the Bow River.
This upscale development, along with the completion of phase two and approval of phase three of the Princeton condominiums, will help create the critical mass needed for the Eau Claire Market redevelopment to take place in the near future.
I have also been amazed at the infill housing development taking place in all inner city communities.
Altadore seems to have more in common with a new suburb than an established community, with construction activity on almost every block.
Montgomery is quickly becoming a hot spot to live due to its easy access to downtown, the new Children's Hospital, the Bow River, the university and Market Mall.
On a recent drive along Bowness Road through Montgomery, I counted 12 "for sale" signs. Watch for some interesting new projects in this undervalued community during the next couple of years.
Next year is shaping up to be a year of construction, with several major new projects ready to break ground.
I expect people driving to work from the east along Memorial Drive will soon see construction begin on phase two of The Bridges in late spring. It will include more than 700 condo units on five parcels of land near the LRT station.
Apex City Homes, Sandalwood Developments and Assured Developments are preparing plans for submission for mid-rise condos, each eight to 12 floors high.
I am very excited by the KAI Towers on the 1200 block of 11th Avenue by Homburg.
This Poon McKenzie design combines retail and townhouses in its ground-level podium -- the ground level with retail and townhouses -- two towers of 26 and 30 floors above.
It will be a wonderful addition to the emerging west Beltline community that surrounds the Midtown Co-op store. Think Stella, Nova and Vantage Pointe.
Union Square will also be in full construction mode on First Street S.W. along with the Haultain Park restoration.
Together with the recently completed Chocolate and the proposed Colours, the "First Street Strip" is well on its way to being transformed from an area of seedy bars to an upscale place to live, shop and dine.
Think Formans, O'Connors, Raw Bar and St. Germain.
In the downtown, I expect construction to begin on phase one of Anthem's 1,000 condo project on the Greyhound site -- and hopefully on Pointe of View's Riverfront Pointe Project next to the Harry Hayes Building in 2007.
Construction of the Churchill Estates across from the Shaw building will be completed in 2007 and, just around the corner, phase two of Five West will be nearing completion by the end of next year.
One of the projects I am looking forward to learning more about is Renoir's Lausanne (51 floors) and Monteux (46 floors) at the corner of 10th Ave and 14th Street S.W. along the railway tracks.
I hear a 15,000 square foot penthouse that takes up the entire 49th, 50th and 51st floors of the Lausanne is being proposed.
The views of downtown, the river valley and mountains should be amazing. It will be interesting to see if this project becomes a reality.
The big question is: "Will we see any construction in East Village in 2007?"
The optimist that I am says YES!
It may just be infrastructure work and some marketing of the new projects, but I predict 2007 will be the turning point for East Village and, in fact, for the entire east side of the Centre City, with significant new projects on both sides of the tracks (see sidebar).
From an infill perspective, watch for the northeast communities of Mountview, Regal Terrace, Renfrew, Highland Park and Greenview to emerge as hot, new inner-city communities.
These communities have easy access to downtown, Deerfoot Trail, the airport and northeast industrial parks, as well as amenities like the Calgary Zoo and Nose Creek Valley pathway, Elks and Fox Hollow golf courses, and the future new Science Centre.
What will be the big condo announcement for 2007?
Look for a major new multi-tower development to be proposed on the old Co-op land across from the Mustard Seed.
Torode should be announcing their plans for an innovative new mixed-use development on the parking lot around the Arts Hotel.
Probably the first and most creative project to be announced for 2007 is the office, hotel and condo project on the northwest corner of 9th Avenue at the base of the Calgary Tower, just a block off Stephen Avenue Walk.
Next year should, indeed, be one of mega condo construction.
Richard White is the director of operations and communications at Riddell Kurczaba Architecture
In Short:
New eastside projects in 2007:
- Keynote phase one.
- Arriva phase two.
- Nuera phase one.
- Riverfront Pointe phase one.
- The Bridges phase two.
This story features a factbox "In Short".

© The Calgary Herald 2006



Record breaker: Housing construction sets new highs in 2006
Marty Hope Calgary Herald Saturday, December 23, 2006


CREDIT: Dean Bicknell, Calgary HeraldFuelled by a strong economy, the migration of people to Calgary is boosting housing construction.Facing shortages of labour, land and materials, it would seem impossible Calgary builders would set construction records this year -- but it has happened, says a federal agency.
By the time the ledgers are closed for 2006, Canada Mortgage and Housing Corp. says
there will be 17,250 construction starts of homes of all kinds, obliterating the previous high of 14,339 set in 2002.
It says another record of 10,500 starts will be set for single-family houses, up from 9,413 in 2002.
At the beginning of this year, CMHC had called for a total of 14,000 starts, including just over 8,700 single-family homes.
Such records will be achieved despite things like labour and land shortages affecting the housing industry, which forced builders to impose sales limits to try to maintain construction schedules.
But because house-hungry consumers found themselves with little to choose from on the resale market, even more pressure was placed on the new homes side.
"We deliberately slowed sales halfway through the year," says Bill Beattie, president of Beattie Homes. "We wanted to get within 60 days of construction starts with our sales."
Builders found themselves having to make adjustments to their internal systems and processes to deal with the new marketplace. Buyers were facing possession dates as far ahead as a year.
As 2006 winds to a close, president Ryan Ockey of the Cardel Group of Companies says it has been a year of unprecedented demand and cost hikes. "We saw construction times increase 50 per cent and we had to deal with serious shortages of serviced lots in most communities," he says.
Some developers were increasing land prices by 50 to 75 per cent, while construction costs were moving up as much as 30 per cent, says Ockey.
The industry was not only struggling to deal with unprecedented demand, maintain schedules and control construction costs, it was also working in an environment in which a record number of people were arriving in Calgary to grab their share of the tasty economic pie.
Strong oil and gas prices helped fuel the city's economy.
The industry has never seen a year that compares to 2006, says Don Davies, president of the Calgary Region Home Builders Association.
Population growth -- which helped keep demand high -- also drove up real estate and land costs at a time when the shortage of skilled tradespeople boosted labour costs, he says.
"We had unprecedented levels of sales and (construction) starts within an economy that analysts couldn't stop calling supercharged," says Davies. "We had what amounted to a perfect storm -- rising oil prices, a humming economy and record in-migration to the city and the province."
CMHC had called for an increase in migration due to elevated energy prices and massive levels of major construction projects going on around the city.
"Indeed, net migration was strong and, as it turned out, set a new record," says senior market analyst Lai Sing Louie of CMHC. "For the 12 months ended April 2006, net migration to the city doubled the previous year's performance, reaching a record of 25,794 people."
The influx of people boosted the labour force and resulted in healthy job creation.
CMHC has predicted employment growth will reach 6.6 per cent this year, including 45,000 new full-time jobs in various segments of the city's economy.
That, along with record growth in earnings, has provided an "additional thrust" for home ownership demand, says Louie.
While the industry had to deal with these factors during 2006, some of the issues facing the industry were a spillover from last year.
Heavy, constant rain in June and August 2005 threw construction
schedules out of whack, while the impact of builder capacity constraints pushed much of that year's activity ahead to this year.
A severe shortage of resale listings earlier this year also turned buyers' attention to the new home market, while a sharp decline in new home inventories provided further rationale for builders to ramp up production, says Louie.
"Meanwhile, record upward price pressures did not result in weaker demand, as introductory economic theory would indicate," he says. "Rather, demand increased in unison with the escalation in prices as buyers rushed to get into the market before prices advanced further."
CMHC predicts the average price of new single-family homes will reach $355,000 this year before vaulting another 37 per cent in 2007 to $487,500.
After struggling to boost its severely depleted inventory of homes earlier this year, the resale industry will also establish new records this year, including an estimated 32,500 sales.
The average selling price of detached homes will likely top $385,100 -- an increase of 39 per cent from 2005, while condos will fetch an average of $259,600, up 41 per cent from a year ago, says CMHC.
Don Campbell, author of 97 Tips for Canadian Real Estate Investors, says fundamentals in the local resale market "conspired to make the Calgary marketplace this year outperform even the most optimistic predictions" -- while at the same time handily besting all other major markets in the country.
"With an average sale price increasing by over 36 per cent, this market has made many a Calgarian wealthier than they imagined possible back in January," says Campbell.

© The Calgary Herald 2006

'Brilliant city' requires nurturing
Jim Dewald and Bev SandalackFor the Calgary Herald
Saturday, December 23, 2006


The Epcor Centre for the Performing Arts, led by outstanding Calgarian Colin Jackson, sees Calgary as a "brilliant city" -- a logical outcome of the centre's mission to be a place "where the creative spirit of all Calgarians will be enriched, engaged and delighted," as it states on its website.
In order to be a catalyst for celebrating that idea, the centre has organized events involving a wide spectrum of groups.
This includes its recent Raise A Joyful Noise event, in which different religious groups came together in music and dance so that Calgarians could gain a broader understanding of the many spiritual traditions that shape our community, and what links them together.
Brilliant city -- what a marvelously positive image for Calgary.
As Toronto Poet Laureate Pier Giorgio Di Cicco recently described to a Calgary audience (as part of a Brilliant City initiative): "These kinds of events advertise commonality and break down the silos of commerce and culture. Simply, creativity must be seen as a way of life, and the wonder and excitement of it stylize a city into a habitable and attractive place."
But in terms of its wider implications for Calgary as a whole, the concept of the "brilliant city" is not a fixed state of being that can be passively counted upon.
It needs nurturing, constant attention, hard work and dedication.
It demands our trust in, and passion for, brilliance in our people, the beauty of their spirit, and full celebration and respect of our traditions, rites and rituals.
While the place or setting of a city is physical and fixed, the notion of a brilliant city is more malleable, dynamic and ever-changing.
As such, it is a realization of what we call the programming and trends/fashion layers of the urban design pyramid.
The diagram at right illustrates how urban design can be adopted as a methodological approach to city planning.
The pyramid begins with an assessment of the unique physical characteristics of the land, followed by a focus on the public realm and the built form (such things as infrastructure, parks and buildings).
The physical dimensions of land, public realm and built form provide a platform for programming concepts such as the "brilliant city" that are products of, and influenced by, the prevailing ideology.
"Ideology" refers to a unified system of beliefs, attitudes and values that conform to the overall cultural setting.
The brilliant city concept is derived from a very positive ideology reflective of a belief in the inherent good nature of people.
This stands as a beacon that contrasts with the programming of most North American cities, which is based on a pessimistic, negative ideology fixated on rules and policing intended to address the negative elements of society.
In Calgary, as well, we are pre-occupied with the negative impacts of a segregated focus on crime, homelessness and so on at the expense of celebrating the spirit of all
Calgarians, including the less fortunate. As Toronto's second Poet Laureate, Di Cicco has extended his role beyond arts advocacy into the realm of "civic esthetic" -- a term that defines the building of a city by citizenship, civic ethic and urban psychology.
Di Cicco is a knowledgeable and passionate advocate for embracing a positive city spirit, infusing our urban environments with the key elements that make what American professor Richard Florida (author of the Rise of the Creative Class) calls "creative cities."
Florida argues that the most successful cities in North America are ones that appeal to creative people.
Among the many important points made during his visit to Calgary, Di Cicco noted that in North American cities, "mutuality and allowance are countermanded by surveillance, suspicion, distrust, privacy laws, protocol and excessive proceduralism.
"When this happens, we have a sanitized city, not a creative city."
Is this what we want -- a sanitized city? We know what we would prefer, but how do our civic leaders, planners and others engaged in celebrating the spirit of Calgary make sure that we do not become a sanitized city?
If our ideology is a pessimistic view of people -- that by nature, they are untrustworthy, unreliable, self-interested and opportunistic -- we will ultimately shift to a design model that is grounded in exclusive, protective, locked-down and walled environments.
We don't believe that this is what Calgary should be.
Conversely, if our ideological beliefs support the notion that people are inherently good-natured, trustworthy, reliable and caring, our urban designs will focus on open and inclusive environments, with places to gather such as public parks, squares, benches and gazebos.
In the end, the three-way link among ideological predispositions, physical design and city programming are inescapable.
So, we have to make a choice between positive or negative ideology, and then select the physical and programming components that make a match.
There is, unfortunately, one other outcome -- an outcome that recognizes that this linkage is not linear and not as simple as described.
As the physical environment is more permanent, it is possible for the ideology of programming to change and go out of sync with the ideology of physical design.
Indeed, Di Cicco argues that we are at the precipice of the false positive.
Renewed efforts to create urban designs that support the positive ideology are mismatched with aggressive programming that is grounded in the pessimistic ideology.
In the end, if this is allowed to continue, our precious public realm will be sanitized by both the rules and limitations of a restricted environment, and gentrification of exclusive neighbourhoods where closed doors, private yards and underground locked parking define our soul.
More is needed. We need more brilliant city initiatives, and more trust in the spirit and soul of our city and our people.
In Di Cicco's words, "physical construction may give the illusion of a dynamic city, an illusion that may stimulate citizens and create 'buzz' -- but the soul of citizenship is what makes a city stand head and shoulders above others."
Bev Sandalack, PhD, is co-ordinator of the Urban Design program in the Faculty of Environmental Design at the University of Calgary, director of the Urban Design Lab and deputy chairwoman of the Calgary Urban Design Review Panel. Jim Dewald, PhD, is Assistant Professor, Strategy and Global Management at the Haskayne School of Business at the University of Calgary, and a partner with Peters-Dewald Land Co.

© The Calgary Herald 2006
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Downtown going up: Condo projects planned for inner city
Marty Hope and Kathy Mccormick Calgary Herald
Saturday, January 06, 2007


CREDIT: Ted Jacob, Calgary HeraldIrvin Wolftail of Supply Install Services works on a fourplex.Hang on, folks. The condominium ride might not be over yet.

There could be a massive injection of condos in the city core this year, says Calvin Buss, president and CEO of Millennium Realty. "A snapshot of 2007 has 100 new buildings being completed or proposed for the downtown, 38 of which are slated to be high-rise condominium towers featuring more than 10,000 units," he says. But Buss, who has been involved exclusively with the downtown real estate market for 29 years and has operated Millennium for 16, admits there's little likelihood of that much product coming to market that quickly. "Tell you what, though, if we were to get 4,000 units this year, 4,000 more in 2008 and another 2,000 the year after that, it would be a very active market," he says.

There are several developers, well-known to the Calgary marketplace, that are finalizing plans to break ground on projects this year, including Pointe of View, Apex Limited Partnership, Cove Properties and Qualex-Landmark. But there is also a major player from Toronto who is scooping up land in or close to the core with plans for major developments. Buss is currently working with Giffels Design Build of Toronto on several sites, including the old Co-op store site at Macleod Trail and 11th Avenue S.E. that could hold towers of 30, 41 and 75 storeys.

The company also has three other sites designated for development.
"Last year was one of the wildest rides Calgarians have ever seen, with condo prices up 46 per cent year over year compared to our last oil boom, when the largest annual price increase was 34 per cent in 1976," says Buss. But despite what's happening in other Canadian and American markets, there is no reason to worry about a real estate bubble bursting in Calgary, he says.

Overwhelming opinion shows a "very strong 10-year horizon" for Calgary because of its powerful economy that is stimulating migration of people and job growth in the city, he says. "Let's face it, if nobody is moving to Calgary, then demand for housing softens and so do prices -- one follows the other," says Buss. "But 2006 saw net unemployment drop to 3.6 per cent against a national average of 6.4 per cent and that supported in-migration, which was up more than 88 per cent -- and those numbers will remain healthy this year."

Paul Battistella of Battistella Developments also sees a strong year for condo development both downtown and in the Beltline area. It's partly because career condo residents who want to stay close to the core area are moving to Calgary from other cities, he says. Other factors include urban professionals who want to be close to their jobs and the condo lifestyle, as well as an increasing number of empty-nesters looking to the downtown and Beltline as second-home options, he says. "As to the number of units, I'd be guessing that there's around 1,500 under construction in some form," says Battistella, adding he has no idea how many others are being planned or considered for those same areas.

The following is a list of individual builder-developer sales projections for 2007, along with comparisons with last year:
Assured Developments
- 2006 sales projection: 230.
- 2006 sales: 200.
- 2007 sales projection: 200.

"We had projects delayed because of the approvals process, so getting to the construction stage was difficult," says Chris Wein, vice-president of sales and marketing. "As for this year, we will be continuing to progress with the second and third phases of Paintbrush Ridge at Three Sisters Mountain Village in Canmore, and we will move along with planning for two major projects in Calgary's inner-city."

Avalon Master Builder
- 2006 sales projection: 80.
- 2006 sales: 60.
- 2007 sales projection: 100.

Company president Christine Scott-Nyuli says 2006 was a year in which salespeople weren't needed. But that will change this year because of added competition, she says. "There's going to be a need for a show home again and for salespeople," she says. "Everyone has to be on the ball to achieve what they forecast."
Hawthorne Homes
- 2006 sales projection: 125.
- 2006 sales: 100.
- 2007 sales projection: 200.

"Last year, like most others in the industry, we had production problems related to shortages of skilled workers with our trades and suppliers," says general manager Ian Nash. The doubling of sales for 2007 will result from the the start of construction of 231 units under the Mosaic name in Aspen Hills, he says.
Resiance Corp.
- 2006 sales projection: 500.
- 2006 sales: 500.
- 2007 sales projection: 400.
"For us, 2007 will not be anything close to the number of sales we had in 2005 and 2006 -- and we don't want a repeat of last year," says executive vice-president Barry Chow. "We look at 2007 as actually being a year when we buckle down and get construction and deliveries under our belt." Resiance continues to sell its Gateway Midtown project, which was repriced and brought back to the market after being temporarily postponed.
Streetside Development Corp.
- 2006 sales projection: 288.
- 2006 sales: 161.
- 2007 sales projection: N/A

"In 2006, we had to hold off selling about 100 units ... we weren't comfortable selling too far ahead because construction costs rose so fast," says general manager Naum Shteinbah. For this year, the company will continue to control sales, although prices won't jump as far and as fast as they did last year, he says.

© The Calgary Herald 2007
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Old Posted Jan 28, 2007, 5:33 PM
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Feeling the pinch: No new rental buildings despite low vacancy rate

Marty Hope and Kathy McCormick, Calgary Herald
Published: Saturday, January 27, 2007

About 71 people per day are expected to move to Calgary this year --and for some of them, it will mean the start of a frustrating search for rental accommodation, says a federal agency.

Potential tenants not only face a second straight year of overall vacancy rates below one per cent, there is no new rental housing planned at a time when 26,000 people are expected to migrate to Calgary this year, says Lai Sing Louie of Canada Mortgage and Housing Corp.

"There just isn't any new market rent projects being started or completed -- and besides, the rental universe continues to shrink," he says.

Construction started on 148 rental unit starts last year, but 88 were destined for the seniors' market and the other 60 were for social housing.

In the past two years, the number of rental units dropped by 2,000, says CMHC. By the end of last year, the total was 40,333.

"The decline in the rental stock can mostly be attributed to the continuation of conversion of units from rental tenure to condominium," says Louie.

Last year, the number of condo conversions totalled 946. That pace is expected to continue this year as property owners capitalize on their rental investment.

Besides low vacancy rates, potential tenants have also faced rising rents.

But that situation might just stimulate some rental construction, says Gerry Baxter, executive director of the Calgary Apartment Association.

"Previously, investors have not seen any reason to construct new rental property because the economics of doing so just weren't there," he says, adding he has heard of a couple of companies who are "closely examining" the feasibility of construction.

"However, the fact remains that the high cost of construction will most likely result in very high rents to justify the cost of building," he says.

Partially offsetting the loss to condo conversions is investors renting out condos, says Louie.

Of the 26,689 apartments purchased, nearly 18 per cent were being rented out, says CMHC.

But renting a condo doesn't come cheap. The average rent for a two-bedroom condo is $1,257 per month, more than 31 per cent higher than the average for a two-bedroom unit in a rental building, says CMHC.

Rents will likely be going up this year in response to the strong demand and low inventory, says Louie.

Baxter agrees. "Because these are new or completely renovated to near new condition, they usually command much higher rents than conventional apartments.

Abed Itani, president of Intergulf-Cidex, is developing the comprehensive high-rise and townhouse project called Westgate Park at bow Trail and 33rd Street S.W.

While less than a dozen suites in the 149 apartment condos in his Brava tower have found their way to the sublease market, moving them to the rental market makes good economic sense, he says.

"Those people are smart," says Itani. "If they bought two years ago, the value of that purchase has gone up 50 per cent or more and they are letting rent rates pay the mortgage."

He has heard reports that rent for suites in Brava is running between $1,700 and $2,500 a month, depending on the size of the unit and its location in the building. Those renting out the suites have plans to some day move into the units, themselves, or have purchased for their children to live in, he says.

"I'm not surprised so many condos are being rented out," says Itani. "It just makes good economic sense."

During the past two years, Calgary's vacancy rate has tightened dramatically, falling from a 10-year high of 4.4 per cent in 2003 to equal a record low of 0.5 per cent in 2006, says Louie.

While the rate will likely go up marginally this year, it will remain below one per cent, he says. "As a result, the period of high vacancy rates which caused landlords to provide incentives and keep rents flat is long behind us."

Part of the increase in rents is simply catch-up, says Louie. "The increased operating and maintenance costs that landlords were absorbing in the past are to some extent being recouped this year."

Largely because of the period when there was little in the way of rent hikes in Calgary, the percentage gap between house prices and rents is extremely wide.

Between 2003 and 2006, house prices soared by 71 per cent while rent rates gained only 19 per cent, says a report from Toronto-based Clayton Research.

In Edmonton, the numbers were 61 and 12, respectively.

"While pronounced rent increases would normally be met with resistance from tenants, increases in average rents in Calgary and Edmonton in the past few years pale in comparison to increases in house prices," says the report.

By the end of last year, the average rent for all bedroom types -- from bachelor pads to suites with three or more bedrooms -- in Calgary was $851, says CMHC.

But the federal agency expects the average to climb another $60 this year.

Rising home prices also mean more Calgary renters will be delaying the dream of home ownership in 2007, putting further pressure on vacancy rates, says Louie.

"Last year, we saw condo prices go up even faster than single-family homes," he says. "Moreover, the high cost of housing will keep some potential first-time homebuyers in the rental market as the spread between monthly payments between renting and owning increased in 2006 -- and is expected to widen again in 2007."

The average price of resale condos hit $261,009 last year, an increase of nearly 42 per cent compared to 2005.

That's expected to climb about nine per cent to reach an average of $286,500 by the end of this year, says CMHC.

The average price for single-family resale homes, which increased 39.2 per cent last year, is expected to grow a further 9.5 per cent this year.

"Those apartments vacated by new home buyers will likely be filled in a very short period of time," says Louie. "The average rental apartment vacancy rate in 2007 will be low, somewhere around 0.5 per cent."

That rate remains largely unchanged from last year, and with net migration expected to be slighter ahead of last year's total of 25,794, people will be looking for somewhere to live. Net migration refers to the inflow of people minus the outflows.

"Demand for rental accommodation will remain vigorous due to continued arrival of people from other parts of Canada and foreign countries," says Louie.

© The Calgary Herald 2007
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Old Posted Jan 28, 2007, 5:34 PM
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Gridlock a peril to prosperity
Transit upgrades could help thriving cities be more efficient

Calgary Herald
Published: Saturday, January 27, 2007

A soon-to-be-released Conference Board of Canada report on the importance of cities in this country's prosperity stresses four cornerstones for success: "a strong knowledge economy; connective physical infrastructure linking people, goods and ideas; environmentally sound growth; and socially cohesive communities."

The issue of transportation connects at least the first three cornerstones. And it's clear that gridlock is an increasing cost.

"Traffic congestion, a major problem in many urban areas, results in time lost and increased energy use, air pollution, greenhouse gas emissions and accident risk," the report says. "It harms the competitiveness of urban centres and the national economy by delaying the movement of goods and people and increasing transportation costs."

Investment in public transit and inter-city rail travel would certainly strengthen Canadian cities' economy, infrastructure and environment.

Public transit systems in urban centres "are struggling to attract riders," the report finds, but this is not the case in Alberta. Ridership on buses and LRTs in Calgary and Edmonton increased 10 and 5.5 per cent respectively in 2006.

Calgary is not struggling to attract transit riders, but to meet the demand. With the popularity of public transit apparent in this province, all levels of government should provide more funding to this service. To alleviate overcrowding, Calgary Transit is providing an additional 40 LRT cars and 43 buses this year, and plans to hire up to 130 more drivers and mechanics. But, as the city spreads ever outward, additional transit service will be required in newly developed areas in Calgary. "People are interested in more convenient and environmentally friendly transportation alternatives to cars, but inter-city travel in Canada has long been underfunded and underdeveloped," the report says. "High-speed services in the Calgary-Edmonton and Windsor-Quebec City corridors must be part of an improved national passenger rail system."

In a September 2005 editorial, the Herald questioned the economic viability of a high-speed train between Calgary and Edmonton. However, in light of the Conference Board's findings and continued growth of the two cities, the province should take a hard look at the feasibility of inter-city rail travel.

As opposed to a widened Queen Elizabeth II Highway, a high-speed rail service would ease problems associated with traffic congestion. A high-speed train reduces the level of traffic on the highway, and consequently, accident risk. It takes less time to travel to each city, thereby increasing the movement of people and goods, which is important in stimulating the economy. And like the C-Train, which supports wind-powered electrical generation, it is environmentally friendly.

The Conference Board report recommends improvement to everything from education to research and development, housing to immigrant settlement.

But it is in transportation that lies the greatest strengthening of Canada's major cities.
© The Calgary Herald 2007
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Ottawa plans military unit for Calgary
Troops to deliver crisis response in 14 major cities

David Pugliese, Sarah McGinnis, CanWest News Service; Calgary Herald
Published: Thursday, February 01, 2007

The Harper government plans to boost military presence across the country with new units in 14 cities -- including Calgary -- as well as to shift 5,000 regular-force personnel to training and front-line missions, from support and desk jobs.

Before 2016, the army would establish "territorial response battalions" in Victoria, Vancouver, Calgary, Edmonton, Regina, Winnipeg, Niagara-Windsor, Toronto, Ottawa, Montreal, Quebec City, Saint John, N.B., Halifax and St. John's, N.L. The units would react to domestic emergencies such as natural disasters or a terrorist attack.

The details are outlined in the Conservative government's Canada First Defence Strategy, which was leaked to the Ottawa Citizen. No date has been set for the strategy to be released publicly. The report outlines the direction the military would follow over the next 15 years.

During the election, the Conservatives promised to create territorial battalions -- each unit to be 100 regular troops and 400 or more reservists -- but the strategy paper does not contain details on the size of the units.

Canadian Defence and Foreign Affairs Institute president Bob Millar is intrigued by the idea that could see a battalion of full-time soldiers posted in Calgary again.

"It means (the government is) taking seriously the idea of both man-made and natural threats that are going to be present in the near future in Canada. It could be ice storms or terrorist opportunities. They're obviously getting ready for that kind of untoward event," Millar said.

CFB Calgary was once a major base for the Canadian Armed Forces, housing military personnel and offices, and acting as a staging area for troop deployments.

But in 1998, Calgary fell victim to military reorganization. The base was officially decommissioned and full-time personnel were transferred to CFB Edmonton, leaving mostly reservists in the city.

Restoring some full-time troops to Calgary would mean that armed forces personnel are on hand to respond immediately to local natural disasters or terrorist threats, said Millar.

"It only bodes well with (the military) connecting with Canadians by letting taxpayers see where their money is going," he said.

But the plan could fail if there isn't enough work for full-time soldiers or if they aren't equipped properly, Millar said.

Canadians for Military Preparedness spokeswoman Corrie Adolph was thrilled by the proposal.

"There's a lot at stake with global affairs and with terrorism," said Adolph, who is the mother of a Calgary Highlander. "This is an opportunity for every Canadian to have a sense there is a military presence here to protect us."

In addition to territorial battalions, Harper's defence strategy calls for the regular force "footprint" to be increased across the country.

The plan calls for the regular forces to increase to 70,000 by 2011 and then to 75,000 by 2016. The reserves would be increased in size to 30,000 over the next five years and then to 35,000 "over the long-term."

But there would also be shifts in military personnel to better support training of new recruits, as well as bolster front-line units.

The regular force currently has about 63,800 members. The reserve force is around 24,000, according to Defence Department figures.

According to the strategy, the army reserves would undergo a fundamental transformation to be able to respond more effectively to domestic emergencies in both rural and urban areas.

Liberal Senator Colin Kenny, chairman of the Senate's national security and defence committee, said the Conservative plan falls short because it takes too long to increase the size of the regular and reserve forces. "If they said last year that their increase would take until 2016, they would have been laughed out of" Parliament, Kenny said.

University of Calgary defence analyst Rob Huebert said the government has no choice but to stretch out the increase in numbers of Canadian Forces personnel over a nine-year period. That's because previous cuts to the military and the ongoing war in Afghanistan are limiting the number of skilled personnel available to train new recruits.

"There's no shortage of volunteers," he said. "It's just that the system is not set up to deal with them."

smcginnis@theherald.canwest.com
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Towns delay decision on amalgamation

A decision about whether the towns of Turner Valley and Black Diamond will move toward amalgamation has been put off.
...
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^(could use the rest of this story *winK wink*)

City studying ways to improve tax system
Calgarians log on to check house values

As homeowners flood the city's website to check out the value of their properties in a booming economy, a city council advisory group continues to study whether market value assessment is the best system for Calgary.
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^(this one too)

Calgary's airport straining to expand
Transborder travel shows fastest gain

Tamara Gignac, Calgary Herald
Published: Thursday, February 01, 2007

More than eleven million passengers passed through Calgary International Airport in 2006 -- and the traffic is putting the squeeze on the facility's already straining infrastructure.

A combination of booming economic times, a healthy airline industry and higher overall demand saw a record number of business and leisure travellers flying in and out of Canada's fastest-growing airport. The terminal has doubled in size since 1992 but still faces a crunch during peak periods, especially when it comes to customs, security and parking.

And with a number of new carriers adding Calgary to their list of destinations -- British Airways and U.S. low-cost carrier Frontier Airlines among them -- the airport is gearing up for renovations it says will help ease congestion.

For a second straight year, the rate of growth in transborder traffic outpaced domestic numbers as the airport recorded 2.2 million passengers going to and from the U.S. -- an increase of about 15 per cent. Air Canada launched several new U.S. destinations in 2006, while WestJet and other carriers have added transborder links from the city.

Domestic travel rose about 10 per cent to 8.1 million passengers, while international traffic was up eight per cent for a total of 897,540 travellers.

If the airport's rapid growth continues at the same pace -- 43 per cent in four years -- by next year it is expected to eclipse Montreal's Pierre Elliott Trudeau International Airport in size to be the country's third largest aviation facility.

"Our growth has not only exceeded our wildest forecasts, it shows no sign of slowing down or going into the negative," said Garth Atkinson, chief executive of the Calgary Airport Authority.

"It means we're going to keep on building and adding capacity where we need to. Our approach is to make incremental, sequential, cost-effective additions to the facility, which it was designed to accommodate."

Unlike airports in Toronto, Ottawa and Winnipeg -- forced to gut existing infrastructure and rebuild from scratch -- the Calgary airport plans to "add pieces as it needs to, a more convenient and ultimately less expensive option for passengers, said Atkinson.

Construction is to begin in the next three years on a multi-floor extension to concourse B/C, used to connect passengers to U.S. cities, Europe, Mexico and Caribbean holiday destinations.

It is the largest single project ever undertaken inside the terminal, and is part of a 10-year plan to overhaul the airport. Future upgrades include a $300-million north-south runway, thousands of extra parking stalls and an expansion of the airport's air cargo and freight facilities.

"Going forward, our international transborder activity is probably going to grow faster than domestic. It's already constrained at certain times of the day so it will be our biggest push in the next five to seven years," said Atkinson.

The airport said it has no immediate plans to cover the costs of upgrades and renovations by way of increased terminal and landing fees -- an expense typically passed on to consumers through higher fares.

"We're maintaining our low fee status and for the second year in a row there will be no increase to the airlines," Atkinson said.

Since assuming responsibility for the facility in 1992, the Calgary Airport Authority estimates it has spent $800 million on expansion projects.

tgignac@theherald.canwest.com
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Alberta housing hotter than ever

Mario Toneguzzi, Calgary Herald
Published: Thursday, February 01, 2007

Alberta led the country in 2006 in the rate of growth for sales in the resale housing market, average sale price and total dollar volume of sales through MLS, says a national report released on Wednesday.

The Alberta numbers were staggering.

The Canadian Real Estate Association report said total dollar volume of sales in the province rose by 47.3 per cent from the previous year to $21.2 billion compared with $14.4 billion in 2005. The number of sales increased by 12.6 per cent to 74,189 units compared with 65,866 the previous year. And the average sale price jumped by 30.8 per cent to $285,497 from the $218,266 in 2005.

All were Alberta records.

"I'm not surprised. This is just one additional indicator of inventory of many that confirm that Alberta is the strongest economy in the entire country," said Richard Corriveau, regional economist for the Prairies and Territories for Canada Mortgage and Housing Corporation in Calgary.

"We have never seen that level of price growth at 30 per cent. It's more than doubled the highest rate of price growth ever in Alberta's history . . . So at 30 per cent we've blown that out of the water."

Corrieveau said the previous record for price growth was established in 2005 at 12 per cent.

On a national level, the overall dollar volume rose by 11.1 per cent to $133.9 billion from the previous year. Total sales dropped slightly -- 483,609 in 2006 compared with 483,789 in 2005. The average sale price increased by 11.1 per cent as well to $276,974 from $249,201 the year before.

"The housing market is forecast to remain tighter in Western Canada than for other areas in Canada," said CREA's chief economist Gregory Klump. "Price increases this year are forecast to be smaller on a national basis, but will remain biggest in western markets."

Corriveau said the CMHC is forecasting sales in the province to dip slightly this year to 69,000, but the average price will increase by about 12 per cent to $320,000 "with some upside."

"We're still quite bullish on price growth. If buyers are waiting for prices to decline, I think they'll be shooting themselves in the foot because we expect them to continue to rise and quite strongly," he said.

Nationally, the number of sales fell shy of setting a fifth consecutive annual record, according to CREA.

Activity surpassed all previous annual records in Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick and Newfoundland.

"Seasonally adjusted sales activity in the fourth quarter of 2006 rose by 1.3 per cent compared with the previous quarter to reach 199,769 units -- the sixth highest level on record," said the report. "The quarterly increase was driven by a rise in activity in Alberta and Ontario. Gains in those provinces more than offset fewer transactions in British Columbia.

"Actual activity in the fourth quarter of 2006 surpassed all previous quarterly records in Manitoba and New Brunswick. It also posted the highest level for the fourth quarter period nationally and in Alberta, Saskatchewan, Ontario and Quebec."

MLS residential new listings also set a record, posting an increase of 5.8 per cent over the previous record set in 2005. New listings eclipsed previous annual records in Alberta, Ontario, Quebec, New Brunswick and Newfoundland.

"The resale housing market became more balanced in 2006 due to an increase in new listings, but it was still a seller's market -- particularly in western provinces," said CREA's report.

"In keeping with that trend, prices rose fastest in all provinces west of Ontario."

mtoneguzzi@theherald.canwest.com
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Condo prices to reach new heights
Report predicts steady increases for several years
Mario Toneguzzi Calgary Herald Wednesday, January 31, 2007

Strong demand will drive steady price increases in the Calgary and Edmonton condominium real estate markets through the rest of the decade, says a national report released Tuesday. Genworth Financial Canada's Metropolitan Condominium Outlook report forecasts Calgary condo price growth to average 12.3 per cent in 2007 then 4.5 per cent annually through to 2010. The report says Edmonton will average 18.3 per cent this year and 4.1 per cent annually to 2010. The average price of a Calgary condo is forecast to rise from $262,456 in 2006 to $335,885 in 2010 while in Edmonton the average price of a condo is forecast to increase from $180,367 in 2006 to $240,875.

Looking at the future, the report says Calgary will be just behind Vancouver ($349,409 in 2010) in the country for average condo prices.
The report doesn't surprise Calgary Real Estate Board president Ron Stanners, who earlier this month released the board's 2007 forecast, saying condo prices in the city will rise by nine per cent this year and total sales will increase by three per cent. "One of the things is affordability," said Stanners of the growing interest in the condo market here, "but it's also a lifestyle thing. There's a lot of young people who prefer to buy a condo. There's a lot of first-time buyers that are actually looking for condos. They're not interested in the single family. Their lifestyle is such that they're not going there.

"There's always, of course, empty-nesters and seniors that are moving that way as well because of lifestyle. I think (the report's) numbers are fairly accurate. The difference between nine and 12 is not that much." Stanners predicted the condo market will become an increasing choice of housing for people in Calgary in the next few years as more become empty-nesters and seniors who "just don't want to look after the house anymore, cut the grass and shovel the walk." "It's becoming an accepted lifestyle," said Stanners. "If we go back a few years, you're sort of buying a condo because you can't afford a house whereas people today are saying 'No, no, this is what I want. This is the lifestyle I want. It suits my life.' "

Lai Sing Louie, senior market analyst at Canada Mortgage and Housing Corp. in Calgary, said the agency is forecasting average price growth in Calgary's condo market to be about 10 per cent this year. "There's just a strong demand for housing here in Calgary," said Louie. "Looking at the month of January -- it hasn't gone through completely -- but there's a tremendous demand right now for housing in Calgary. It may even go to a record high for January. That's how strong it is. The month's not over, yet, but it's way up. It's around 2,300 sales now. That's high. . . . At first we thought the prices would back it off a bit, but it isn't happening. "With condos, for someone looking for a place, lots of first-time buyers are not going to be able to move into a single-detached home, so the whole flow of people moving from the rental market or first-time buyers is really at the condo market now."

Total residential combined sales (single family, condo and mobile home) for January 2006 was 2,408. According to the Calgary Real Estate Board, the average sale price of a Calgary single-family home rose by 38.29 per cent in 2006 from the previous year's average of $278,393. The average sale price of a Calgary condo rose by 41.91 per cent in 2006 from 2005's average of $183,714. In its 2007 forecast, the real estate board said Calgarians in the market to buy a new home this year will increasingly turn to condominiums as an alternative to single-family homes. The organization said the single-family average sale price will hit $411,948 this year, while the average sale price for condos in 2007 will rise to $284,175.

The latest statistics from CREB show the average sale price of a single-family home in December was $396,870, while the average sale price of a condo was $281,459 in the month. Last year, condos represented 27.42 per cent of residential sales in Calgary and that number, according to the real estate board, is expected to increase to 30.85 per cent this year. The Genworth report reviewed new and resale condo markets in Montreal, Ottawa, Toronto, Calgary, Edmonton and Vancouver based on data from the Conference Board of Canada. New condo prices were not included. The study looked at all existing condominium types in Calgary and Edmonton while surveying only condominium apartments in Vancouver, Toronto, Ottawa and Montreal. In percentage terms, Edmonton is forecast to have the strongest growth in condo prices from 2006 to 2010 with prices rising 33.5 per cent followed by Calgary (28 per cent), Vancouver (20.8 per cent), Montreal (17.8 per cent), Toronto (16.8 per cent) and Ottawa (16.5 per cent).

mtoneguzzi@theherald.canwest.com

© The Calgary Herald 2007
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Old Posted Feb 3, 2007, 10:29 PM
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Homebuyers set record despite surging prices
40 $1M-plus homes sold in January
Mario Toneguzzi Calgary Herald Saturday, February 03, 2007

Calgarians are buying resale homes in record numbers, indicating the pace of activity in the residential real estate market isn't slowing in 2007 despite a continued escalation in average sale prices. An indication of how strong the market remains is the fact that a staggering 40 homes sold for more than $1 million in January, said Ron Stanners, president of the Calgary Real Estate Board. The overall number of homes sold in January was a record for the month, according to data released Friday by the board, while the average residential combined (single family, condo and mobile home) sale price jumped by 29.83 per cent from a year ago to $375,646. The average sale price of a single-family home in January was $419,324 -- a 29.92 per cent increase from January 2006.

"Sales are good and strong," said Stanners, adding that rising average prices are not deterring people from buying homes in Calgary at a record pace.
"We don't see any indication of it yet that's for sure." The number of sales in the luxury home market during the month "just astounded me -- absolutely astounded me," said Stanners, explaining that in January 2006, 24 luxury homes sold in the Calgary real estate market. "Last year, between $700,000 and $900,000, we sold 20 (single-family homes) and this year we sold 45. That's quite a jump," said Stanners. "People are still buying. Sales are up, but listings are up even more which really adds stability and I think it speaks to that we're not going to go into that hyper-drive market that we had last year. At least there's no indication that that's going to happen, yet."

January combined residential sales totalled 2,631, a 9.63 per cent increase over January 2006 when sales were recorded at 2,400, and a 30.57 per cent increase from December 2006 when the sales were 2,015. The breakdown of the January 2007 combined sales was 1,787 single-family residences, 834 condominium, and 10 mobile homes. January 2006 sales in the same categories were 1,762; 624; and 14, respectively. Lai Sing Louie, senior market analyst for Canada Mortgage and Housing Corporation in Calgary, said the January numbers were "pretty strong." "There's a tremendous demand for housing in Calgary. I think that's the biggest sign," said Louie. "We thought they would pull back a little bit here in January because of the rise in price, but that doesn't seem to be the case." January 2007 saw 4,010 new listings coming to the market, an increase of 34.56 per cent from January 2006 when the new listings were 2,980.

The average combined residential sale price for January 2007 was a 3.87 per cent increase over the December 2006 average price of $361,640. The average sale price in January 2006 was $289,328. "When we go back last year a few months ago, we hit a high of $374,067 (in October)," said Louie, adding that average prices then moved down a bit with more supply hitting the market. "But now this year this is the highest average that we have on record. . . . That's incredible that the market has come back so quickly. We thought that this supply would hold prices down until maybe the second quarter before they (prices) would start to move. But this is already at a new record high on a monthly average."

The following is a comparison of single-family, condominium, and mobile home average sale prices for the month of January 2007 over 2006: single-family $419,324 / $322,764; condominium $285,918 / $200,668; mobile home $53,710 / $32,778. Condominium sales in January maintained a steady pace with 834 condominiums changing hands. This is a 33.65 per cent increase over January 2006 when the condominium sales were 624 and a 40.64 per cent increase over last month's sales of 593. The average price of a condominium in January 2007 was $285,918, an increase of 42.48 per cent from the same period last year when the average price was $200,668, and a 1.58 per cent increase over December's average price of $281,459. The combined residential median price for January 2007 was $337,000 -- up 32.16 per cent from January 2006 when the median price was $255,000 and up 0.90 per cent from last month's median of $334,000.

mtoneguzzi@theherald.canwest.com


Towers on the rise
Kathy McCormick Calgary Herald Saturday, February 03, 2007

Thirty-five new office buildings in Calgary, either proposed or already under construction, represent 44 per cent of the commercial construction in Canada, says a realtor.

Of these, "11 will be downtown and 24 are being built in the suburban area," says Ron Stanners of the Calgary Real Estate Board.
The result: "(Office) rents will increase by as much as 20 per cent as supply diminishes and demand remains high," he says.

© The Calgary Herald 2007


Resale value soars to third in Canada
Marty Hope Calgary Herald Saturday, February 03, 2007

At more than $11 billion, the value of resale home transactions in Calgary was the third highest in the country in 2006, says a national report. The Canadian Real Estate Association (CREA) pegged the dollar volume of Calgary's record-setting 33,027 sales at $11.45 billion -- an increase of more than 44 per cent from 2005. With nearly 85,000 sales, Toronto totalled $29.9 billion, up less than four per cent from the previous year.
Vancouver was second on the list with a final volume of almost $18.6 billion, up 3.5 per cent from 2005.

But Calgary led the country in terms of the percentage increase in the average selling price, closing the year at $346,675 -- up a whopping 38 per cent from the year before. Edmonton had the second-highest jump with a 29.4 per cent hike to $250,915. But overall, the rate of price increase declined, including markets in Western Canada, says CREA chief economist Gregory Klump.

He expects the trend to continue through 2007, but will continue to be largest in the West. He expects the same scenario for sales. "One market that stands out is Calgary, where a spike in sales activity late in 2006 caused the resale housing market to tighten dramatically," he says. "If sales activity in Calgary gains further momentum, price increases there may again heat up unless new listings pick up additional steam.

For the first month of 2007, the Calgary Real Estate Board has reported nearly 2,500 sales at an average price of more than $374,000. "Sales are up from January of last year, but we anticipated that," says board president Ron Stanners. "But at the same time, we have a greater inventory than we had then, which is helping to maintain a more stable market."

At the national level, the total dollar volume closed in on the $100-billion mark in 2006, finishing the year at $98.95 billion -- up 10.5 per cent from the previous year. The national average price hit $294,270, an increase of 10.6 per cent compared to 2005. Although the average price and dollar volume topped that of 2005, it wasn't the case for sales. Across Canada, there were 336,271 sales, which was slightly below the record total of 336,513 in 2005. Strong gains in sales activity in Calgary and Edmonton helped to offset fewer transactions in Vancouver, says Klump.

Canadian resale housing in 2006:
Dollar volume % change Sales % change Average price % change
- Calgary $11.45 billion 44.6 33,027 4.6 $346,67 38.2
- Edmonton $5.52 billion 52.6 21,984 18.0 $250,915 29.4
- Vancouver $18.6 billion 3.5 36,479 13.6 $509,876 19.8
- Ottawa $3.6 billion 9.2 14,003 5.3 $257,481 3.7
- Toronto $29.89 billion 3.8 84,842 -1.0 $352,388 4.8
This story features a factbox "Canadian resale housing in 2006".; Also See: American expert to speak to realtors, I4

© The Calgary Herald 2007
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Old Posted Feb 7, 2007, 5:30 PM
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Alberta, B.C. give boost to building permit data
Without the two, increase would have been 1%
Geoffrey Scotton Calgary Herald Wednesday, February 07, 2007

Frenzied construction in Alberta, and to a lesser extent in neighbouring British Columbia, pushed the value of planned new building in Canada in 2006 deep into record territory, as national building permit values soared by nine per cent to more than $66.2 billion. Statistics Canada said Tuesday that with permits of $5.4 billion in 2006, the growth in permit value in the Calgary region eclipsed all other major Canadian cities with an expansion of almost 40 per cent, while Alberta's stunning economic boom boosted 2006 permit values ahead more than 36 per cent to nearly $13 billion. B.C. experienced 13.2 per cent growth to $11.5 billion in permits, with particular growth on the non-residential side.

Local observers don't expect the pace in Calgary and across Alberta to slow much as 2007 unfolds. "The key here is that the vacancy rates are still low, so you can only expect further building activity," said Patrick Walters, manager of corporate economics for the City of Calgary. "The conditions are right for construction in '07. Whether we'll have the record performances of last year is a question, but the conditions are right." While the federal agency noted there were records set in every province except Prince Edward Island and Ontario in 2006, StatsCan emphasized that it was Alberta, in particular, and the West generally that fuelled the record performances seen at the national level in 2006.

"If Alberta and British Columbia were excluded, the overall value of permits would have increased just one per cent instead of nine per cent," StatsCan said in its report, which focused on results for December and all of 2006. "These two provinces showed the biggest gains for both residential and non-residential components." Alberta's performance on the non-residential side led the country, with permit values up 38.5 per cent to a record $5.7 billion and unprecedented results in each of the industrial, commercial and institutional components. National non-residential permits hit a record $25.2 billion.

"The provincial government is running very healthy surpluses, and some of that money gets recycled . . . in payments for infrastructure," said Walters. "In terms of the private sector, very healthy resource prices become recycled through drilling activity and the building of non-residential space." Ottawa-based StatsCan noted that much of the record overall values for building permits can be attributed to soaring housing prices -- and Alberta was front and centre in that phenomenon, as well. In Calgary, new home prices in November were 50 per cent higher than a year before and Edmonton's were 43 per cent higher. In contrast, across Canada last year the actual number of new single-family homes permitted in 2006 fell to a five year low of 119,140, a decline of 2.2 per cent from 2005. "Even so, the value of single-family permits jumped 6.3 per cent to $26.7 billion in the wake of higher prices, especially in Alberta," said StatsCan.

The remarkable strength in Alberta's construction sector was also apparent in December, when permit values in Wild Rose Country continued to rise while declines were seen nationally -- down 7.8 per cent to $5.8 billion -- and in six of the ten provinces. Alberta's permit value jumped 5.5 per cent from November to a record $1.4 billion, thanks to a flurry of industrial and commercial projects, while B.C.'s dropped from a record high in November to their lowest level in eight months, with declines across the board.

gscotton@theherald.canwest.com

© The Calgary Herald 2007
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Old Posted Feb 9, 2007, 6:48 PM
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Stampede hits the jackpot with new super casino

Published: Friday, February 09, 2007

Listening to Steve Allan, chairman of the board and president of the Calgary Exhibition & Stampede, address a packed audience at the chamber on Monday, I realized that I had not seen the plans for the new Stampede Casino. Yet I knew work had commenced on it as cars are being re-routed around an orange fence to the north parking area outside the Round Up Centre.

Actually, the construction activity you see is to the west of the casino site to build an access under 3rd Street S.E. to the underground parking structure that will hold a minimum of 300 vehicles.

The casino has been designed by S2 Architecture as the biggest in the city with the largest high-limit room. I visited with partner in charge Robert Spaetgens and principal architect James McLaughlin who took me on a tour through the detailed plans for the 95,000 square foot building.

The main floor footprint is 72,000 square feet of which 27,000 square feet will be the main gaming floor for tables and slots. There's also a large dedicated poker room that has its own access allowing for different operating hours, but the casino is not just a gambling operation. It has been designed as a first-class entertainment centre that includes a multi-purpose theatre.

Food and beverage venues will include a diner, cafe, Asian restaurant, sports bar, a huge Las Vegas influenced circular bar in the middle of the gaming floor, and a high-end steakhouse grill with large wine wall and harvest table.

The ground-floor plans also show VIP lounges, security and video monitor rooms, separate rooms for the volunteers that must be in attendance every opening day, and staff facilities that house 400 lockers.

Up on the second floor are housed the mechanical rooms and administration offices and a Plus-15 link to the proposed hotel areas that will be built facing onto Olympic Way. Currently, the Stampede is negotiating with a development company around the site economics that could see both a Hyatt Place Hotel and a Hyatt longer stay suite hotel built there.

The southwest side of the casino will almost abut the new addition to the Round Up Centre with just a narrow service street separating the two buildings; it can also be reached via a Plus-15 walkway.

The entire building naturally is designed with a western -- but contemporary up-beat -- theme and the building frontage along 12th Avenue will do much to glamorize that area of Victoria Park.

The whole promenade all the way from Macleod Trail to the Elbow River will be upgraded while the covered entranceway features a public plaza setting and VIP/taxi drop-off and a dedicated parkade entrance for valet parking.
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Old Posted Feb 10, 2007, 9:39 PM
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$1B bid to revive factory district
Homes, offices, shops to be built in Stampede's shadow
Mario Toneguzzi Calgary Herald Saturday, February 10, 2007


CREDIT: Leah Hennel, Calgary Herald Dan Van Leeuwen, President Torode Commercial

A billion-dollar mixed-used redevelopment will redefine the face of a southeast Calgary neighbourhood adjacent to the Stampede grounds. Torode Commercial Ltd. plans to build 3.2 million square feet of commercial, retail and residential development on the Ramsay site, at Spiller Road and 24th Avenue S.E. "Ramsay is a fantastic community," said Torode's president, Dan Van Leeuwen. "It's got a very interesting blend of demographics. It's a very artistic community. It's very close to the downtown," he said, adding construction costs today are pegged at about $1.1 billion. "We also picked this because of its location (near) the downtown core from a walking, cycling, transportation and even driving perspective. "We saw this as a sort of overlooked piece of the near-city. It's rare to get a piece of property this size."

The huge development, which will be unveiled today at a public open house at the site, will include up to 2,000 housing units of various types, 650,000 square feet of office space, 275,000 square feet of retail and an 80,000-square-foot boutique hotel. The phased-in project is expected to start construction in 2008, pending city approvals, and take five to seven years to complete. Van Leeuwen told the Herald on Friday the 8.4-hectare Ramsay Exchange site will comprise a number of buildings -- with three main nodes where there will be office buildings. The office towers will be between 11 and 14 storeys high.

"It is an old industrial site (home to Plains Fabrication and F&D Scene Changes) so we figured it was a good plan for us to convert it into something more compatible with the current uses in the community. Ramsay has got a great history . . . ," said Van Leeuwen. "We're not chewing up more greenfield land to convert a large piece of property into something a little more dense and compatible with what's going on here." Adam Legge, director of research and business information at Calgary Economic Development, said it's exciting to see a project of this scale east of the Stampede and into the Ramsay area. "What that signifies is you're starting to see when a city gets to be our size and so much demand and so much activity, you're starting to see these sites that have typically been under-utilized and in previously less desirable areas all of a sudden becoming ripe for redevelopment because they're so close to the inner city," said Legge. "You've got a really, really dynamic area there. "That whole east side (of downtown Calgary) in 10, 15, 20 years is going to be such a dynamic, vibrant place. Torode has really become very much a visionary for redevelopment in the east side . . . . It signifies you have a developer in the community that sees vision and opportunity in an underdeveloped and prime location and the potential for significant development based on the resurgence in the area."

The residential component of the project will be a mix between townhomes, loft and high-rise condos and some rental units as well. "We're just going in for our land-use so there's still quite a bit of planning that needs to be done," said Van Leeuwen. "The site's primarily residential. "We have been in discussions with the community about three high-rise condominium towers that will take advantage of the views mainly and those may be as high as 32 to 36 storeys. The plan is still somewhat in fluctuation and those are just proposals at the moment."

Van Leeuwen said the developer has had a pre-application meeting with the City of Calgary over the project. "We are preparing to continue with the land-use process after our open house . . . That may get us to a (Calgary Planning Commission) hearing in late spring, early summer at which point we're hoping to get into city council late summer or early fall," said Van Leeuwen. "And then we'll start the (development permit) process . . . Given the size and scale of the process, it's going to be phased over several years. I would expect us to be going in for (development permit) and working through the process in early 2008. I doubt very much we'd see much construction going on here until the end of 2008 and beginning of 2009."

The project will incorporate some of the site's heritage including the preservation of the Dominion Bridge Building (1926). Eileen Stan, development manager for Torode Commercial, said the project "fits in well with the city's larger agenda of developing socially, economical, environmentally-responsible communities. "Due to its location, the type of community . . . and the fact that we can re-use an industrial site that's in the inner city I think is a big advantage to what we're trying to do here."
She added that the site is close to existing transit and a proposed new transit line for the southeast.

mtoneguzzi@theherald.canwest.com

© The Calgary Herald 2007




City needs more staff to track boom
Calgary Herald Saturday, February 10, 2007

Calgary's booming growth has drawn so many new residents, the city clerk's office is still searching for more workers to count them. This year's deadline to hire people to conduct the annual three-week survey was supposed to be Friday, but an extension was granted because another 150 to 200 counters are still needed to tally the additional census districts.

"It's the economy out there," said city returning officer Barb Clifford. "Last year, the city grew so much, we have close to 1,000 census districts now."

The annual census survey starts April 1. Clifford said interested applicants should contact the city's election services office at 221-3850.

© The Calgary Herald 2007



Council OK's downtown water, sewer levy
Calgary Herald Saturday, February 10, 2007

City council has approved a levy to make improvements to water and sewer lines for any new project built downtown or in the Beltline. But the decision on whether to charge the levies for transit buses, fire stations and public parks has been put off until April, when an administrative report on the issue is expected. Aldermen asked for the delay to deal with concerns raised by developers who build in the inner city.

The utilities levy amounts to $1,823 for each metre of property -- or $27,000 for a 15-metre lot -- along the street. In addition, the city wants to charge a levy of between $50 and $1,500 for police stations, libraries and public parks -- similar to the community infrastructure levy that added between $2,500 and $3,500 to every new home built in the suburbs -- to pay for nearly $100 million in projects. The so-called community infrastructure levy would add $78,000 for a 15-metre lot.

© The Calgary Herald 2007



Jobless rate near all-time low
Province's January rate holds at 3.3%
Geoffrey Scotton The Canadian Press Saturday, February 10, 2007

Alberta's economic brawn was front and centre in January as 23,000 people decided to look for work that month in Wild Rose Country -- and Canada's strongest economy found jobs for even more, 24,000. The difference was small enough that Statistics Canada reported Friday the provincial unemployment rate was left unchanged from December at 3.3 per cent, but that figure is close to an all-time low, and by far the lowest jobless rate of any province in Canada. "You can get a job pretty quickly right now in Alberta," commented Vincent Ferrao, a senior analyst with the federal agency's labour market survey group.

In the last 12 months Alberta has created more than 121,700 jobs, or 30 per cent of the national total. The latest results pushed the employment rate in this province -- the proportion of those of working age who are working -- to a record 71.5 per cent. It's the highest of any province, ever. "This is a remarkable performance by Alberta," said Ali Abdelrahman, senor economist with Employment, Immigration and Industry Alberta in Edmonton.

He noted that while Alberta accounted for 30 per cent of Canada's new jobs over the past year, it has just 10 per cent of the country's population. In the past year Alberta has enjoyed employment growth of 6.5 per cent, more than double the national result of 2.4 per cent. "It's very strong employment growth," said StatsCan's assistant chief statistician, Phil Smith, from Ottawa. That growth and ongoing tightness in the labour market pushed the average hourly wage here ahead 4.1 per cent in January from January 2006 versus 2.2 per cent nationally. In 2006, the Alberta average hourly wage rose an average 6.9 per cent, more than doubling the national result of 3.3 per cent.

Calgary's unemployment rate was also unchanged in January but that's where any ordinariness ends. At 2.6 per cent, Calgary's jobless rate in January was the lowest among Canadians cities, as it has been for months, and is down sharply from the 4.4 per cent recorded in January, 2006. Since January 2006 the Calgary economy has produced 54,000 jobs for a growth rate of 8.7 per cent. "Usually if the unemployment rate is less than three per cent it's a clear indication of a skills shortage. So, Calgary is in a real skills shortage problem," said Abdelrahman.

Nationally, the Canadian economy stunned experts by cranking out as many as seven times the number of new jobs expected in the first month of 2007, with payrolls across Canada swelling by a remarkable 89,000 people. Nonetheless, an even larger surge of people entering the labour force and looking for a job caused the national unemployment rate to be nudged up to 6.2 per cent from the 6.1 per cent rate seen in December 2006. The bulk of the new jobs came in British Columbia and in Alberta and in the areas of information, culture and recreation; professional, scientific and technical; accommodation and food services and in natural resources.
In Alberta, manufacturing was a strong performer, running counter to the bleak manufacturing results nationally that reflect manufacturing weakness in Central Canada including Ontario, where 13,000 manufacturing jobs were lost.

The national unemployment rate remains close to the 31-year low record of 6.1 it hit during several months last year. The national employment rate hit a record high of 63.4 per cent and new standards were set, along with Alberta, in B.C., Manitoba and Saskatchewan.

UNEMPLOYMENT
The national unemployment rate was 6.2 per cent in January. Here's what happened provincially (previous month in brackets):
- Alberta 3.3 (3.3)
- Saskatchewan 4.1 (4.0)
- British Columbia 4.3 (5.2)
- Manitoba 4.6 (4.1)
- Ontario 6.4 (6.1)
- Quebec 7.7 (7.5)
- Nova Scotia 7.8 (7.3)
- New Brunswick 8.1 (8.5)
- Prince Edward Island 10.7 (12.4)
- Newfoundland 15.4 (13.8)

gscotton@theherald.canwest.com

© The Calgary Herald 2007




Brookfield nets 'premier' downtown site
Buys $45M interest in Herald block
Mario Toneguzzi Calgary Herald Saturday, February 10, 2007


CREDIT: Ted Rhodes, Calgary Herald

Brookfield Properties has acquired 100 per cent interest in the downtown Herald block for $45 million.One of North America's largest commercial real estate companies has purchased half a block in the heart of the city -- including the old Calgary Herald building -- calling it "one of Calgary's premier downtown development sites." Brookfield Properties has acquired 100 per cent interest in the Herald block for $45 million and the company says the property is nearly 66,000 square feet in area with development density for about 1.1 million square feet of office space. The site contains four small buildings totalling 130,000 square feet of rentable area as well as underground parking and a small surface parking lot.

Tom Farley, President & COO of Canadian commercial operations for Brookfield, told the Herald on Friday the company hasn't decided what it will do with the site at 7th Avenue and 1st Street S.W. Brookfield owns about eight million square feet of office buildings in Calgary, including Fifth Avenue Place, the Petro-Canada Centre and Bankers Hall. "By acquiring the Herald block, it allows us some flexibility going forward to respond to our tenants' needs and to provide space for tenants that are not already in Brookfield's buildings," said Farley.

"We're in the process of evaluating the site in terms of the type of buildings that we will put up, the uses that we'll put in place and we also have the flexibility of holding onto the site . . . and wait. Or it gives us the flexibility as well if we want to respond immediately to some of our tenants' expansion requirements, we're able to do that. So it gives us optimum flexibility for additional density in our Calgary portfolio." Farley said the company is "extremely excited" about the site's location. "As us Canadian real estate people say, it's right at centre ice," he said. "When you can control half of a block at that location, proximity to the light rail transit and centre of the business district, we think it's a wonderful site with excellent opportunities."

Adam Legge, director of research and business information at Calgary Economic Development, said the purchase of the property by Brookfield in the heart of downtown Calgary is an indication of the city's economic strength. "It's a building that's really underdeveloped for the potential in the downtown core and in a prime location with shopping and office," said Legge of the old Calgary Herald building. "(With) the crunch on office space (with a vacancy rate of less than one per cent downtown) right now people are just looking for ways in which they can find some redevelopment opportunities and rents are getting to the point where it can make economic sense. . . . A really prime corner for redevelopment and a building that's really not maximized to its full potential and they can put in something really big and significant in there."

Legge said there is continued demand from business for additional space and companies are looking for options. "And rents are at a point where you can make some returns on new development," said Legge. "You're just seeing the outcome and the result of the city's economy still forging ahead. When that happens, you just need to start to put some shovels in the ground and get some new buildings up. It's as simple as that." Brookfield Properties owns, develops and manages premier office properties and its portfolio is comprised of interests in 116 properties totalling 76 million square feet in the downtown cores of New York, Boston, Washington, D.C., Los Angeles, Houston, Toronto, Calgary and Ottawa.

Meanwhile, EnCana on Friday officially announced the sale of the proposed The Bow office tower project assets -- including the 59-storey building -- to a wholly-owned subsidiary of H&R Real Estate Investment Trust.
As part of the transaction, EnCana, as a tenant, has signed a 25-year tenant lease agreement with H&R REIT for 100 per cent of the office tower at an initial rental rate of approximately $36 per square foot and has received about $70 million, which largely represents EnCana's investment to date in the project. EnCana said the project's completion is scheduled for 2011 and it has been previously pegged at about $1 billion to build.

EnCana transferred ownership of The Bow project's property on portions of both the north and south blocks between 5th and 7th Avenues between Centre and 1st Street S.E. This sale also includes the development plans for the approximately 1.9-million-square-foot building on the north block and the 200,000 square foot development on the south block with H&R assuming all design and building contracts.

mtoneguzzi@theherald.canwest.com

© The Calgary Herald 2007




Smart move: Investors buy inner-city condo
Kathy McCormick Calgary Herald Saturday, February 10, 2007


CREDIT: Leah Hennel, Calgary Herald
Condo buyers Heath and Helen Kenyon near a model of the Xenex on 12th project.

Resale condos are expected to rise in value more than single-family homes this year, says the buyer of an inner-city condo. "If people come to Calgary now, they're often looking at moving closer to the downtown core -- and that means condos," says Heath Kenyon. Along with his wife, Helen, he recently bought a one-bedroom unit in the new Xenex on Twelfth project. The 18-story tower is being undertaken by Bucci Developments in the Beltline area. "At the moment, condo market values are going up faster than (single-family homes) -- and from what I've seen and heard, that will continue for the next two to three years, so I think condos are the way to go," says Kenyon.

Resale condos sold at an average price of $260,711 last year. That's expected to rise nine per cent to $284,175 this year, says the Calgary Real Estate Board. Canada Mortgage and Housing Corp. expects an even steeper increase to $286,500. By contrast, single-family resale homes averaged $384,998 last year. Depending on who you talk to, they're expected to climb at least seven per cent to an average of $412,000 to $421,500 this year -- although both CREB's and CMHC's estimates could be low. "The average is almost there already," says Lai Sing Louie, senior market analyst for CMHC. Single-family resale home averaged $419,324 in January.

"If that holds, and it looks like it's getting stronger, our forecast of a 10 per cent overall hike in resale single-family housing for the year could be conservative," he says. "But it's early, so we'll see." At any rate, condos will remain a big part of the market because they are generally lower priced, he says. "There's a lot of demand for the more affordable product -- and that builds confidence in investors as well, as they see that there's a good chance condos will go up as fast, or faster, than single-family homes," says Louie.

Kenyon agrees. "We could have bought a single-family home somewhere in a new neighbourhood or out of town somewhere, but we think condos are the way to go," he says. He and his wife already own another condo in McKenzie Towne and live in their own single-family house in Tuscany.
They're not alone in buying condos for investment, says Louie, adding that's a good thing. About 18 per cent of condo buyers are renting out their units, he says. "If that wasn't happening, renters would need to find other places to live and that would tighten up the 0.5 per cent vacancy rate even more."

Some buyers in Xenex are astute investors, says Fred Bucci, president of Bucci Developments. "Most who buy as an investment are here for the long term and plan to rent the units and hold them," he says. "They believe, as I do, that Calgary housing is still a good price." The Vancouver developer knows prices. After all, he's been building high-rise condos and communities since 1953, expanding into the Calgary market a decade ago.
"I still believe Calgary prices, in a North American context, are very reasonable," says Bucci. "In Vancouver, for example, we're now at $800 to $1,000 a square foot for condos, while here it's below $500 now. San Francisco is $1,000 and New York is $3,500."

But prices remain a concern of his. He had to take Xenex off the market for a while, readjusting prices to keep the project viable as labour and supply costs increased rapidly last year. "One issue that I'm still concerned about is the cost of construction, which continues even today," says Bucci. Even so, "we have taken a leap of faith" with the re-marketing of Xenex," says the developer. "We have said to our buyers that there will be no further price adjustments and now we are taking the risk -- and if we're wrong, we will absorb it. We have committed to the price even though we haven't got all of our costs in 100 per cent." The company's commitment has resonated well with buyers, he says. Nearly 65 per cent of the 150 units in the tower (the penthouses have yet to be released) are sold, says Brenda Kelly, who heads up marketing for Bucci.
Construction has already started on the building, which will be on the northeast corner of 7th Street and 12th Avenue S.W., where the majority of the units have views of downtown or surrounding neighbourhoods.
Things like the higher security and lower maintenance compared to single-family homes is another reason people have gravitated to condo living, says Kenyon.

He and his wife may end up living in the condo they recently purchased, instead of keeping it as an investment. The couple are both age 40. "We don't have children and our jobs are such that we could live anywhere," he says. "We like the location and the whole idea of Xenex, and the layout is far more attractive than a lot of other ones we were looking at." The modern, clean lines of the building include panoramic windows in suites to capture views, public art on the corner of the street, and aluminum rails with glass panels on balconies. Inside, most units have nine-foot ceilings, woodgrain laminate wrap cupboards and stainless steel appliances.
Heated, underground parking, assigned storage lockers that includes bike storage, and video camera surveillance are some of the other features.
Condos range from studio units to three bedrooms, as well as townhouses and penthouses.

Prices start at $229,788 to $657,788, not including penthouses or GST.
Meanwhile, says Bucci, "we will continue to explore the Calgary market for opportunities, and we're in a big subdivision in Edmonton and have assets in Red Deer. We're here to stay in Alberta." Xenex on 12th is located on the Northeast corner of 12th Avenue and 7th Street S.W. However, the presentation centre is at 1226 8th St. Open daily from noon to 6 p.m.
Visit the website at www.xenexon12th.com.

© The Calgary Herald 2007




Calgary has its own 'big urbanism' trend
Richard White For The Calgary Herald Saturday, February 10, 2007

Each December, the New York Times magazine publishes its annual Year In Ideas edition. It characterizes a year through the new or big ideas that occurred during that year. One of the "big ideas" that caught my attention on the list for 2006 was "big urbanism." I am not convinced this is truly a new or big idea, but rather, like most things, is just a recycled idea.
In the 1960s and '70s, "urban renewal" was the buzzword of city developers and planners across North America.

The term referred to mega projects that linked several blocks in tired, older areas of a city centre. In Calgary, our urban renewal projects created a legacy of "east-end concrete bunkers." The convention centre, Glenbow Museum, Calgary Board of Education building, Workers Compensation Board building, Palliser Square and Bow Valley College (Alberta Vocational College at that time) were built during this time.

The New York Times' "Big Urbanism" article highlighted the current wave of massive urban development projects taking place across the United States -- such as the 8.8-hectare, Atlantic Yards project in Brooklyn worth $4.2 billion US, or the $3.6 billion plans for the revitalization of downtown Yonkers, N.Y. As well, Denver, Colo., continues to implement its cultural district master plan. It includes the now-completed Michael Graves post-modern addition to its central library, as well as the new wing of the Denver Art Museum. Designed by Daniel Libeskind, the project cost $110-million US. Denver's plan has been the catalyst for the construction of thousands of new condos in the city's cultural district.

In Los Angeles, the Grand Avenue plan -- which is to cost more than $1 billion US -- is currently being implemented. It will involve 3.6 million square feet of new development, including the new Frank Gehry Theatre and a 6.4-hectare park. The big urbanism article talks of a "new confidence amongst designers, developers and public officials for re-shaping the cities we live in." It concludes with a comment that Tax Increment Financing (TIF) is contributing to the new-found money, leading in turn to new optimism in the public sector. Sound familiar?
Big urbanism also caught my attention when I was surfing the Internet. I found an article documenting skyscraper development in other cities and what they will look like in 2012.

The article identified the world's big urbanism cities by how many new skyscrapers (defined as 500 feet, or about 50 floors) will be built in each city between 1999 and 2012. In the United Arab Emirates near Saudi Arabia, the Persian Gulf city of Dubai was ranked No. 1. It is expected to grow to 90 skyscrapers by 2012, up from six skyscrapers in 1999. Second on the list was Miami. As the Florida city evolves into a new banking and financial hub, it is expected to grow to 71 towers by 2012, up from five in 1999.

Third was Las Vegas, which had only two skyscrapers in 1999, but is predicted to have 27 by 2012. London was fourth, growing from two to 24, while Tel Aviv was fifth, increasing from two to 16 towers during the same period. Not to be left out, Alberta's two major cities both have big urbanism projects of their own.

Edmonton has the Century Park project (the new name for the old Heritage Mall site in south Edmonton). Westbank Project Corp. and Procura Urban Development Properties plan to convert the 17-hectare site (the size of Calgary's Prince's Island) from a shopping mall and parking lot to an urban village. The project is to include 2,800 residential units, 200,000 square feet of offices (the size of a 15-floor office building), and 160,000 square feet of retail/restaurant space (about the size of Calgary's Eaton Centre). It will also feature 35,000 square feet of indoor recreational facilities, a new LRT station and about seven hectares of open space -- all to be built over the next 10 years.

Not to be outdone, Calgary has three new big urbanism projects: Quarry Park, East Village and Currie Barracks. Quarry Park is an 125-hectare development by one of Calgary's premier developers, Remington Development Corp. Located on the site of an old quarry just east of Deerfoot Trail near IKEA, it will be converted into a work/live/play community. It will include about 1.7 million square feet of campus-style office and retail space (three and four floors high). Other features include 2,300 housing units, a 20-hectare natural area and six hectares of recreational space.

Remington Development is committed to the use of best practices in creating new urban communities, including pedestrian-friendly streets.
Meanwhile, plans are also in the works for the East Village area, which includes Fort Calgary, that involves the billion-dollar redevelopment of the 45-hectare area, which is located in downtown's east side. It will include housing for as many as 10,000 people, as well as office and retail space to be determined by the market. It may also include a new post-secondary campus involving the University of Calgary and the already-started Bow Valley College renovation and expansion.

Calgary's largest big urbanism project is the federal government's Canada Lands redevelopment of the former Canadian Forces Base just off Crowchild Trail. Phase One was the incredibly successful, 64-hectare Garrison Woods project, which involved 70,000 square feet of retail, 1,600 residential units, two private schools and nearly five hectares of parkland.
Phase Two is the 29-hectare Garrison Green project, with 1,000 housing units and about three hectares of parks and open space. Currie Barracks is the name of the final 80-hectare phase. It will include about 200,000 square feet of retail, 300,000 square feet of office (180,000 square feet in heritage buildings to be preserved), up to 3,200 housing units, and about nine hectares of park and open space. This development will incorporate several mixed-use projects (main floor retail with office and residential above), with a density of nine to 16 units per acre (with one acre equal to about 0.4 hectares, and Garrison Woods about 10 units per acre). It will also include many sustainable development practices, such as storm water management and green roofs (ones that are partially or wholly covered with vegetation).

It will create a new self-sustaining work, live and play community in Calgary's inner city. These are interesting times -- not only in Calgary, but around the world. Cities have hopefully learned from the many failed big urbanism projects of the '60s and '70s. This time around, here's hoping politicians, planners, architects and developers heed the words of Jane Jacobs, the guru of creating urban villages, who said: "Gradual change is better than cataclysmic development. If change comes too quickly, it will generate buildings of the same scale, design and use which will generate little real diversity in the present and in the future."

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

Skyscraper Construction Around the World*
City Skyscrapers in 1999 Skyscrapers in 2012
- Dubai 2 90
- Miami 5 71
- Las Vegas 2 27
- London 2 24
- Tel Aviv 2 16
- Calgary 8 13
- Edmonton 0 0

*Buildings more than 500-feet tall
Source for Calgary and Edmonton information: skyscraper.com; source for other cities: Wire magazine
This story features a factbox "Skyscraper Construction Around the World".

© The Calgary Herald 2007




Condo price pace reflects 'new reality'
Resale unit increase outstrips used homes
Marty Hope Calgary Herald Saturday, February 10, 2007

Although still considered an affordable option for homebuyers, the average selling price of resale condos is climbing faster than that of single-family houses, says the Calgary Real Estate Board. Used condos fetched about $285,918 in January, up more than 42 per cent from the same month a year ago, it says. But resale single-family homes averaged $419,324, up less than 30 per cent.

"I think more than anything, the price of single-family homes is driving more people into the condo market," says board president Ron Stanners. "A lot of people have faced the new realization that they can't afford a detached home, it's just the new reality." In terms of the median price, used condos sold for $265,000 last month -- an increase of just under 49 per cent. The median is the middle number of all sale prices. It is considered to be a truer read of the marketplace than average prices.
The median price for single-family homes was $373,000, up less than 29 per cent compared to a year ago.

But while the price gap narrowed in January, demand for resale condos remained strong, says Stanners. "Condo sales were way up -- 33 per cent above where they were a year ago," he said following the release of January's activity report. Sales of detached or single-family homes climbed less than two per cent. For the month, 834 condos changed hands compared to 624 a year ago. Single-family homes totalled 1,787 -- 25 more than were sold in the same month last year.

Besides affordability compared to single-family homes, condos are popular for another reason, says Stanners. Many people want the condo lifestyle freedom from considerations like yardwork or home security. "They want to be able to lock and leave," says Stanners. The most active price category last month was for condos selling between $300,000 and $350,000, accounting for 18.6 per cent of January sales. In terms of single-family homes, the most active category was from $400,000 to $500,000, which made up nearly 24 per cent of all detached sales.
"The $400,000-plus range has become the new entry level price, particularly in the northwest and southwest," says Stanners.

While retaining a small percentage of total sales, the high end of the market continues to be strong. During January, 95 homes were sold at $700,000 or more, up from 44 a year ago. Forty homes sold for more than $1 million last month, up from 24 in January 2006, says Stanners.
While sales activity turned in a strong performance, potential buyers continue to have a good selection of homes to choose from. The number of new listings in January reached 4,010, up from less than 3,000 a year ago -- and the highest total since September of last year. With the increased choice, it's taking longer for consumers to buy a home. Condos and single-family homes were on the market about 40 days before selling, about a week longer than it took a year ago, says the board.

© The Calgary Herald 2007
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