May 2011 Ontario Economic Fundamentals

[Ally]

Ontarians will pay dearly for McGuinty's 'green' energy fantasy




Last month, Bloomberg New Energy Finance, announced that investment in alternative energy in Europe fell 34% in just the first three months of 2011. Why would it fall by a third in so short a time? Because European governments have begun withdrawing the huge subsidies they pay to green-energy companies, and massive tax dollars are about the only thing that make most green-energy projects make economic sense.




Much of the investment in alternative energy is obviously what`s called `subsidy farming,` i.e. planting a little money in a project in the hopes of reaping a harvest of taxpayer-subsidized profits because, if left to market forces, green energy makes little sense.




If you want to know what`s ahead for Ontario taxpayers and electricity consumers, just look at what`s going on in Europe. Thanks to Premier Dalton McGunity`s green-energy dreams, Ontarians, like Europeans, will be paying big bucks for all types of energy ` including old, cheap sources such as coal and hydro ` and getting little more `clean` energy than now.




Ontario`s green-energy plan, introduced in 2008, was always dependent on the `if you build it, they will come` theory. If only enough tax dollars could be used to subsidize the construction of wind farms and solar panels and algae ponds for biodiesel, eventually there would be enough of these clean sources to make them economically viable competitors to coal and oil.





Read the full article here.

 

[Ally]

Global auto sales forecast to hit new highs




Global auto sales are expected to hit record levels in 2011, despite an anticipated shortage of vehicles this summer and early fall from Honda and Toyota, according to a new report.




The strong job market, improving consumer confidence and pent-up demand has seen Canadian auto sales hit an annualized rate of 1.67 million vehicles in March and April. That is well ahead of the 1.59 million units expected in 2011 held by Carlos Gomes, Scotiabank senior economist, in his monthly Global Auto Report.




"Given this stronger-thanexpected performance, we are maintaining our full-year sales forecast unchanged even as volumes are expected to weaken over the summer and early autumn, due to a shortage of vehicles from Japanese automakers," he said.





Read the full article here.

 

[Ally]

Hamilton tops another list of best places to invest




Hamilton has scored the top spot on a new list of the best places to invest in Ontario.




The annual ranking by Toronto-based Real Estate Investment Network also names Hamilton the third-best place in Canada for investment, after Edmonton and Calgary. The honour is the second time in two months the city has been given a gold star as a target for investment.




REIN president Don Campbell said the ranking is a testament to Hamilton`s potential to attract jobs and business over the next five years.




`We`re looking for the cities with the most future potential, not what`s happening now,` he said. `We see a real window of opportunity for Hamilton in the next five years.`





Read the full article here.

 

[Ally]

Speakers say city's potential pivots on good planning decisions




A planned LRT system for Hamilton will bring a hefty windfall to property owners around its stations.




Don Campbell, head of the country`s largest real estate research company, told an audience of commercial realtors Tuesday anyone lucky enough to own commercial space within 50 metres of an LRT stop can expect to command a 16 per cent rent premium for the property. Apartments within 800 metres of a stop will get the same premium.




Those are only some of the economic benefits Campbell and Hamilton airport president Richard Koroscil say will flow to the city from investments in transportation, investments they say Hamilton has to make if it wants a future of new jobs and a vibrant economy.







Read the full article here.

 

[Ally]

Barrie's economic story good news for all of us





BARRIE - The 'for sale' signs always pop up in the spring. Pop up and then sport sold signs in the blink of an eye. It's a good sign that people are on the move, changing house sizes, changing neighbourhoods.



That cycle just expanded to commercial and industrial space as well with the news this week that Barrie and Orillia's real estate market will outperform most other regions in the province over the next few years.




Real Estate Investment Network (REIN) purports to be the country's leading real estate investment company and it reports that in all of Ontario Barrie and Orillia rank third for growth.




This is great news for Barrie. We can expect this to benefit business whether it's manufacturing or service. It benefits the development and building industry, the supply side of things, and the small businesses that in huge numbers contribute to our local economy. It impacts mortgage brokers and builders, roofers and decorators. This also means that our economic recovery as a community should surge forward. Don Campbell, REIN's principal, says this is a great economic story.





Read the full article here.

 

[Ally]

Investment ideal in Barrie, report says




Barrie and Orillia are once again near the top of the list of the best places in Ontario for real-estate investment.




Simcoe Shores follows Hamilton and the Kitchener/Cambridge areas as the third-best place for residential real estate investment, in an analysis of top Ontario investment towns.




And even though it's expected to outperform other markets over the next three to five years, a local realtor who specializes in real-estate investment said the third-place ranking for the second consecutive year shouldn't be taken for granted. Barrie has to ensure all aspects of the city remain desirable to investors.





Read the full article here.

 

[Ally]

Waterloo downgraded as investment choice




WATERLOO ` Waterloo has lost its top spot as a place to invest in real estate due partly to concerns over the regulation of rental housing.




A new ranking of Ontario`s leading investment towns downgrades Waterloo to fourth spot, two spots behind Kitchener and Cambridge.




`The new licensing situation is going to have some major unintended consequences on that marketplace,` said Don Campbell, a Calgary-based analyst whose Real Estate Investment Network advises on the best places to invest.





Read the full article here.

 

[Ally]

Hamilton's future is now





Hamilton`s economic re-emergence isn`t on its way ` it`s already here, accountant Don Forbes told a packed room at the Hamilton Convention Centre during the Hamilton Economic Summit Thursday.




Forbes, a manager at Grant Thornton, urged delegates to stop talking about the city`s renewal in the future tense because it`s happening now.




`We are already there and it`s being noticed ` Downtown Hamilton has good bones. It`s up to us to put the flesh back on it.`





Read the full article here.

 

[Ally]

Electric GO trains could run like a surface subway




Electrifying the city`s new airport train service in time for its 2015 opening would be the necessary first step in creating an above-ground subway connecting the downtown with the region, says the Clean Train Coalition.




In a report being released Monday, the CTC recommends the province abandon its elite, business-class concept for the Pearson-to-Union Station shuttle and turn it into public transit.




Lower the fares, increase the number of stops, and Toronto could be on its way to a European-style service such as the Berlin S-Bahn or London`s Overground.




The latter project `is supposed to form a complete circle around the city of London ` on subway-like frequencies,` said Greg Gormick, who wrote the CTC report, No Little Plan: Electrifying GO Transit.





Read the full article here.

 

[Ally]

Richmond Hill GO line to be extended




A new $13 million station at the north end of the Richmond Hill GO line is expected to ease traffic in the area and attract about 1,000 new transit riders almost as soon as it opens in 2013.




But for the regional commuter service, the news of the day Tuesday was a bit of the same old story as GO struggles to keep up with demand.




As transit officials announced the new stop near Gormley Rd. being built in conjunction with a train storage track, local politicians were anxiously calling for all-day, two-way service on the line.





Read the full article here.

 

[Ally]

Eglinton development could help pay for Sheppard Line




Critics of Mayor Rob Ford`s idea for a Sheppard subway line have long criticized the planning process for taking place away from public scrutiny.




But a new city tender issued by the enigmatic agency set up to explore financing options for the subway line sheds some light on how Mr. Ford hopes to pay for the transit link.





Posted on Friday, the bid opportunity asks for a private-sector consultant who can formulate a business plan for the subway on behalf of Toronto Transit Infrastructure Limited (TTIL), the long-dormant consulting arm of the TTC that Mr. Ford reconstituted specifically to come up with a viable funding model

for the Sheppard subway.





Read the full article here.

 

[Ally]

CN increases Brampton Intermodal Terminal capacity



CN has announced a series of capacity improvements to accommodate growing container volumes at the Brampton Intermodal Terminal (BIT). This follows CN`s April announcement about the purchase of 1,000 new domestic containers to better serve manufacturers and distributors of grocery and consumer goods.







BIT, located in the prime goods movement and logistics area of Greater Toronto, is Canada's largest rail intermodal terminal and a key component in CN's distribution network -- almost 60 per cent of the railway's system-wide intermodal business touches the terminal. Located near Airport Road and Highway 407 on Intermodal Drive the terminal anchors the Brampton`s inland port. Almost 200 acres in size it employs over 250 people and operates 356 days-a-year. CN's rail intermodal traffic consists primarily of containerized cargoes moving in cooperation with other transportation modes.







Claude Mongeau, president and chief executive officer of CN, said: "Intermodal is one of CN's fastest-growing business segments. We are investing in new track, equipment and other infrastructure improvements at BIT to take our intermodal service offering to the next level in efficiently distributing growing overseas container traffic reaching our network over Canadian ports as well as rising domestic intermodal shipments across Canada. These investments will increase supply chain efficiencies for our customers and help them grow their businesses.`







Read the full article here.

 

[Ally]

Putting hydro back into electricity




The reopening of the Wasdell Falls hydroelectric generating station near Washago is part of a provincewide "renaissance" of hydroelectricity, says the president of the Ontario Waterpower Association.




"It is kind of a rebirth of an industry that's been here for 100 years in Ontario," Paul Norris said in an interview this week. "We've seen a lot of interest in new hydro development."




Norris stopped in Orillia as part of an Ontario-wide education project regarding hydroelectricity.




"We need to talk about more waterpower opportunities in the electricity future and they're out there. It's a great time for us to be out reminding people."





Read the full article here.

 

[Ally]

Orillia REINs in top-three ranking




Orillia has once again scored among the province's top cities in terms of real estate investment potential, according to the Real Estate Investment Network (REIN)




Orillia has been ranked third in REIN's latest report, which lists cities in Ontario based on their current and future prospects for real estate investment opportunities.




"We have been in the top five for the last five or six years," said Debbie Gilbert, chair of the Orillia and District Real Estate Board.




The REIN rankings are used by investors looking to purchase income properties with rental units.





Read the full article here.

 

[Ally]

Orillia tax hike 2.2%



ORILLIA - Residential taxes in Orillia will rise 2.2 per cent this year.

Council arrived at the figure following a marathon budget meeting that began early Wednesday afternoon and wrapped up shortly before 11 p.m.



"In my perfect world, I would like to see it held at zero," Mayor Angelo Orsi said. "But the reality is there are certain things we can't stop the ball rolling, so we are stuck with expenses that we have to deal with.



"The promise was to keep it as low possible, and we did everything possible," he added.



Council managed to avoid making dramatic cuts to programs and services - some of which were offered up as possible sources of cost savings by senior staff.





Read the full article here.

 

[Ally]

Speculators, foreign investors betting on Toronto condo market




Who in their right mind would invest in something that loses money every month? The answer just might be future Toronto condominium buyers.




Toronto is the largest condominium market in North American with 18,000 suites selling annually over the past five years, according to research firm Urbanation Inc. The problem is rent for those units is not climbing much, stuck at $2.09 per square foot in the first quarter of 2011 versus $2.09 per square foot a year earlier.




Rental rates are relevant because Toronto`s condominium market has quickly become an investor market with Urbanation saying more than half of the units in the city are now being bought by people who have no plans to live in them.





Read the full article here.

 

[Ally]

Richmond Hill GO line to be extended




A new $13 million station at the north end of the Richmond Hill GO line is expected to ease traffic in the area and attract about 1,000 new transit riders almost as soon as it opens in 2013.




But for the regional commuter service, the news of the day Tuesday was a bit of the same old story as GO struggles to keep up with demand.




As transit officials announced the new stop near Gormley Rd. being built in conjunction with a train storage track, local politicians were anxiously calling for all-day, two-way service on the line.



Read the full article here.

 

[Ally]

Condo buyers look to Asians for returns




Who in their right mind would invest in something that loses money every month? The answer just might be future Toronto condominium buyers.




Toronto is the largest condominium market in North America , with 18,000 suites selling annually over the past five years, according to research firm Urbanation Inc. The problem is rent for those units is not climbing much, stuck at $2.11 per square foot in the first quarter of 2011 versus $2.09 per square foot a year earlier.




Rental rates are relevant because Toronto's condominium market has quickly become an investor market. Urbanation says more than half of the units in the city are now being bought by people who have no plans to live in them.





Read the full article here.

 

[Ally]

New research centre in Ontario dives into uncharted waters




Ninety-six per cent of the world's fresh water is groundwater yet, despite hundreds of years of scientific study, mysteries remain. How exactly do contaminants spread underground? How much urban stress can an aquifer withstand?




With the need for clean fresh water growing daily, finding answers to those questions is a top priority for researchers at G360, the new Centre for Applied Groundwater Research at the University of Guelph in Ontario, Canada.





Read the full article here.

 

[Ally]

London hits 401 jackpot




London`s profile along ­Canada`s busiest superhighway is about to get its biggest boost since it became part of the city nearly 20 years ago.




The city will get new Hwy. 401 interchanges ` projects worth tens of millions of dollars, adding new economic muscle to the city ` at Wonderland Rd. in the west end and at Veterans Memorial Parkway in the east, The Free Press has learned.




The projects are meant to open adjacent lands for development and realize a dream for London laid out 18 years ago, when vast tracts of rural lands were annexed into the city and brought the 401 within its boundaries.





Read the full article here.