AB Economic Fundamentals 2008-07

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Mortgage shakeup on tap

There`s so much stuff, but so little time and space. Often, there`s a dearth of financial news of import during the summer. This week, it`s different.

The feds announced a week or so ago that high-ratio mortgages in Canada, the type that are for more than 75% of property value and insured, are being "conservatized". No longer can amortizations exceed 35 years. Gone too is the zero down payment option. Existing mortgages aren`t affected by the new rules.

http://www.edmontonsun.com/Business/News/2...203456-sun.html

 

[joeiannuzzi]

Report details tunnel cost


The price tag to build a tunnel beneath a future runway at the Calgary International Airport would cost an estimated $350 million, a report coming to a city committee next week says.

Concerned that northeast communities would be cut off when the airport begins its $3-billion expansion, Ald. Jim Stevenson called on administration to look into the costs of extending Airport Tr. beneath the planned runway that will result in the closure of the existing access via Barlow Tr. That would mean the only remaining access to the airport would be from the west off of Airport Tr.

http://calsun.canoe.ca/News/Alberta/2008/0...204521-sun.html

 

[joeiannuzzi]

Overseas trade climbing

Trade with the U.S. has long been the bread and butter of Alberta`s economy, especially since NAFTA was inked more than a decade ago.

But although the vast bulk of this province`s exports is shipped to Canada`s free-trade partners, an increasing number of Alberta manufacturers are looking outside North America to sell their wares.

"We`re creeping up there. Our business folks seem to be learning, and seem to be more courageous going into these more difficult markets," said Dr. Rolf Mirus, a professor emeritus at the University of Alberta`s school of business. "The U.S. has been easy for us."

http://calsun.canoe.ca/Business/2008/07/19/6204386-sun.html

 

[joeiannuzzi]

Take a drive out to Okotoks

On one of our recent visits to take in the exciting action at Spruce Meadows, we decided instead of taking the usual turn west off 37th Street and down onto Highway 22X to approach the venue driving east, to continue on and find our way through Evergreen.

That was certainly a mistake as yet another Calgary highway peters out into residential. We meandered through streets until we found ourselves on James McKevitt Road. Next time heading out to Okotoks, I took Deerfoot Trail. The trip was flawless and I had time to drive around and check on a few real estate listings.

There`s certainly lots to choose from. Okotoks has everything ranging from mobile homes starting at $62,000 for a 947-square-foot unit located in a quiet park setting with a private back yard, to a $2.6-million custom-built home with its own hangar at Okotoks Air Ranch.

http://www.canada.com/calgaryherald/news/l...a3-77fa7fcbbf7e

 

[joeiannuzzi]

Housing construction pace to improve in 2009

There will be an improvement in 2009 in the fortunes of Calgary`s single-family housing industry, says a federal agency.

After bottoming out this year at levels not seen since the mid-1990s, construction of detached housing in Calgary and surrounding area will show a slight increase next year, says Lai Sing Louie, senior market analyst for Canada Mortgage and Housing Corp.

There is still a good market for new homes, says Shane Wenzel, senior vice-president of sales and marketing for Shane Homes.

http://www.canada.com/calgaryherald/news/n...df-0757099123cf

 

[joeiannuzzi]

Barriers prevent city from innovative development

The following is the first of a two-part series on innovative development.

Recently, a second delegation of Calgary developers, city officials and the mayor went to Dubai -- a city state in the United Arab Emirates -- to see the innovative developments happening there that are receiving worldwide attention.

John Torode perhaps summarizes it best when he tells me we are too caught up in our "Little House on the Prairie" thinking to be truly innovative.

http://www.canada.com/calgaryherald/news/n...c5-ea76bebd9905

 

[joeiannuzzi]

Industry land reaches $1M/acre

Some fully serviced pieces of industrial land continue to push the $1-million per acre mark depending on their location in the city, according to the latest industrial market report by commercial real estate firm CB Richard Ellis.

"This year the deals are coming quite a bit slower but if you have the right type of product things are still really moving. Some deals are just taking longer than they used to," said Iain Ferguson, associate vice-president of industrial sales and leasing for CBRE Alberta Ltd. He noted the high-priced land is usually "something with almost a retail type exposure."

http://www.canada.com/calgaryherald/news/c...a6-33187a57d5b6

 

[joeiannuzzi]

Quest for efficiency driving oilsands change

Eddy Isaacs is acknowledged to be one of the foremost authorities on oil technology in Alberta. For 20 years he worked with the Alberta Research Council, responsible for programs in heavy oil and oilsands.

He is executive director of the Alberta Energy Research Institute, which is responsible for plotting the Alberta government`s strategy and investments in energy innovation involving conventional and unconventional oil and gas, coal, petrochemicals, renewable energy and water management.

Isaacs has a PhD from the University of Alberta and a bachelor of science from McGill. He has written more than 70 publications and has six patents in the energy field.

http://www.canada.com/calgaryherald/news/c...b6-b4419738b4a4

 

[joeiannuzzi]

Stony Plain: the town that moved

When 81-year-old Louise MacLean returned to Stony Plain High School on Saturday to celebrate the town`s centennial with her former schoolmates, she couldn`t believe the years they had racked up between them.

"We have 560 years between us because we`re all over 80," MacLean said, laughing with her seven schoolmates, all now 80, 81 or 82.

A lot has changed since MacLean went to school in the two-storey red-brick building in the mid-1940s.

http://www.canada.com/edmontonjournal/news...2e-baffe920bb8d

 

[joeiannuzzi]

`Alberta envy` flows with energy wealth, say former premiers

Three former Alberta premiers, who together ruled for 35 consecutive years, believe the province`s multibillion-dollar energy bonanza and substantial environmental challenges are making Wild Rose Country a growing target for the rest of Canada.

Peter Lougheed, Don Getty and Ralph Klein say that record energy prices -- and the province`s mounting billions in resource revenues -- are feeding an "Alberta envy" in the rest of Canada.

Add on growing scrutiny over the environmental costs to tap the carbon-intensive oilsands, and Alberta is increasingly finding itself in Canada`s crosshairs.

http://www.canada.com/edmontonjournal/news...59-c2194bf82740

 

[joeiannuzzi]

Lease running out in 2009 at Currie Barracks

About 100 local vendors at the Calgary Farmers` Market might have to close shop when the venue`s lease runs out at Currie Barracks in October 2009.

The former military base at Crowchild Trail and Flanders Avenue S.W. is going through a major residential and commercial redevelopment, which will include a retail strip now taking offers for a variety of shops and commercial uses.

The Calgary Farmers` Market has put in a proposal to be the anchor tenant at the south edge of that strip but has not yet heard back from Canada Lands Company, the landlord tasked with redeveloping the site for the federal government.

http://www.canada.com/calgaryherald/news/s...c0-6b60da76ae70

 

[joeiannuzzi]

Boyle makes moves to grow by 10 per cent

Boyle took the first steps last week in its plans to more than double in size over the next few years.

At a public hearing at the Boyle Community Centre, residents heard a presentation by the town and an interested developer about plans to annex more than 80 acres of land.

The land is to be annexed from the County of Athabasca in order for a new subdivision to begin construction and be connected to Boyle`s utility infrastructure.

The addition of the land it will increase the size of Boyle by about 10 per cent.

http://www.athabascaadvocate.com/news/2008/0715/news3.htm

 

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Okotoks hopes to fast-track commuter train

A full-scale commuter rail line to Okotoks could be on track sooner than expected with last week`s climate change action plan announcement from the Alberta government.
On July 8, the Province announced it is setting aside $4 billion for projects to reduce greenhouse gas emissions. Of the $4 billion, $2 billion will go towards carbon capture and storage initiatives (technology that permanently injects and seals CO2 emissions in deep underground rock formations) and $2 billion to public transit investments.
The new Green Transit Incentives Program (TRIP) aims to promote the use of local, regional and inter-city public transit. TRIP will also be responsible for the distribution of the public transit funding to municipalities and organizations that come forward with proposals.
The provincial funding announcement comes as good news for the Calgary Regional Partnership (CRP) which has been examining the development of a commuter rail line and/or improved bus service to communities surrounding Calgary, including Okotoks, Cochrane, Airdrie and even High River.

http://www.westernwheel.com/news-fast%20track.htm

 

[joeiannuzzi]

Honda dealership drives into Okotoks from High River

Making the move from High River to Okotoks was a natural transition for the rural Honda dealership, said its president.
On June 19, Okotoks Honda opened its doors on 100 Northgate Boulevard off of Highway 2A for the first time. According to Rahim Premji, the decision was a matter of space to better serve its clients while maintaining a central access location.
"(In High River) our working space was very cramped and we were not able to take care of the customers in a proper and efficient manner and we did not have the proper service facilities," Premji said.

http://www.westernwheel.com/news-honda.htm

 

[joeiannuzzi]

Home Depot builds employee base

The Okotoks Home Depot has 100 jobs to fill before it opens its doors in September and officials with the store are confident they will be able to meet their staffing needs in an already tight labour market.
"As long as we can get enough people to open the doors and some friendly faces to say hello when people come in, we can teach them to meet the needs we have," said Rick Nelson, manager of the Okotoks store.
Nelson and other officials with the chain pulled out all the stops last weekend with a two-day hiring fair at the Okotoks Curling Club. The official opening date hasn`t been set, but Nelson said they are hiring people with an expected starting date towards the end of September.

http://www.westernwheel.com/news-home%20depot.htm

 

[joeiannuzzi]

Office building would cut into Grandin ravine

City residents packed council chambers Wednesday to protest a plan to build a three-storey building and concrete turnaround across Grandin ravine.

About 50 people showed up for a meeting of the Subdivision and Development Appeal Board. At issue was a stripping and grading permit for 214 St. Albert Road. Located between Socrates Restaurant and an Esso station, it is one of the few undeveloped lots left near the Grandin ravine.

The developer has applied to build a three-storey office building on the site. The project would cut at least halfway across the ravine and include a concrete turnaround over a creek that flows through it.

http://www.stalbertgazette.com/news/2008/0719/top2.htm

 

[joeiannuzzi]

Downtown project back on track


The developer of a downtown condominium project stalled by frost damage is hoping to resume construction before the summer is over.

The Village on Perron project has been idle since a Jan. 2 water main break flooded the excavated site at 5 Perron Streer, which is the former site of Unique Fitness and Racquet.

The developer still needs official approval from his structural engineer, but early indications are that construction will be allowed to proceed.

"They`ve indicated that we`ll be able to go ahead with some minor repairs to the foundation," said Wayne Barry, principal of the four-member ownership group. "Hopefully you`ll see some activity there before the end of the summer."

http://www.stalbertgazette.com/news/2008/0719/top3.htm

 

[joeiannuzzi]

2 new bridges would favour pedestrians

A pair of new pedestrian bridges crossing the Bow River are being proposed by the city to ease commuter traffic and increase foot traffic into the city`s core.

With a growing number of people living and working downtown, an aldermanic committee will review a report Wednesday that recommends setting aside $25 million to help with planning and construction of the structures.

One bridge would be built on the west side of Prince`s Island and the other near St. George`s Island, connecting East Village to the area by the zoo.

http://www.canada.com/calgaryherald/news/s...e4-fa653a31746a

 

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First Nations urged to impose taxes

More First Nations communities should be taxing themselves, says an independent think-tank that specializes in governance, including aboriginals.

Establishing their own tax regimes would not only provide First Nations with additional revenues to pay for enhanced services for their citizens but would make their governments more accountable to their citizens, the Institute on Governance says in a report.

The 46-page report argues that taxation establishes a crucial relationship between governments and their citizens, and one that is most noticeable in its absence.

http://www.canada.com/edmontonjournal/news...91-21abe2f1d8c2

 

[joeiannuzzi]

Highrise apartment panned

Residents near a proposed 26-storey highrise apartment downtown fear it will spur uncontrolled growth of more skyscrapers.

City pilot Christine Schumann says it`s the last nail in the City Centre airport`s coffin.

This afternoon, city council is slated to debate whether it will allow a developer to increase the height of its apartment tower in the McKay neighbourhood in the area of 104 Street and 98 Avenue. Armin A. Preiksaitis and Associates Ltd. is asking the council to bump up the maximum height of its proposed building from 45 metres to 101.5 metres - or up to 26 storeys - to increase the floor ratio from four to 10 units and to increase the maximum density from 500 to 711 dwelling units per hectare.

http://www.edmontonsun.com/News/Edmonton/2...217196-sun.html