The GOLD Standard
330-5 Giroux Rd, St.Albert, AB
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The St Albert Property Report
August 9 Edmonton Storm: Happens Once Every Ten Years
Edmonton was hit with the biggest rainstorm in ten years August 9, pelting the area with quarter-sized hail and rain that flooded area streets. The storm also disrupted power and temporarily eliminated email service for many residents.
Andy Bowen, Edmonton’s drainage and operations director, said that the storm was not quite as serious as the one that occurred in 2004, which, he noted, would be expected to happen once every 200 years.
Capilano received the most rain, with 34 millimetres on the ground. The rain caused flooded basements as well as some 120 debris-clogged catch basins in the city.
The storm was part of a thunderstorm line that rumbled through the city, according to Environment Canada’s Bill McMurtry.
Power was restored to approximately 9,000 Epcor customers by about 6 a.m. August 10, per company spokesperson Michelle St-Amand. The areas with the highest amount of reported outages were downtown Edmonton, Namao and Gold Bar. Epcor crews also assisted in repairing damaged transformers and fuses.
A power outage in St. Albert affected some 1,800 Fortis clients. The outage, which occurred at about 10:30 p.m. August 9, was due to lightning, according to company spokesperson Kate George. An outage in Westlock caused power damage among approximately 1,500 people.
Lightning also caused email server outages, resulting in an interruption in connectivity among people in B.C. and Alberta, per Telus spokesperson Chris Gerritsen. Customers reliant upon email such as Garth Collins found themselves operating their businesses without the essential service during the morning of August 10. Collins runs a voice talent business and uses email for most of his communication.
The St Albert Real Estate Report
Spiffy Paint Jobs, Sleek Lines And Green Talk at Rock’n August Car Show
Boldly painted muscle cars, sweet sounding engines and leggy models draped over hoods and fenders to increase the eye appeal are expected events at any down home car show. All of that is a part of the Rock’n August car show, put on by the Alberta Motor Association. The show also shows its green side.
Among the streamlined Camaros and fancy Mustangs, the Toyota Prius shows its hybrid self, sending the message that green can also be sexy. This gas sipper will no doubt turn a few heads and maybe start people thinking about ways to conserve gas, even if they have no plans to trade in Old Bessie for a newer model.
The AMA will be on hand to give tips on how to get the most miles per litre out of your current ride. One of the easiest ways to improve gas mileage is to just keep the tires inflated properly. You loose one percent of your engine’s efficiency for every three pounds you run under the preferred tire pressure. AMA will be giving away tire pressure gauges as a reminder.
Other ways to get more mileage for your buck is to avoid quick starts and not to sit with the engine idling. A big gas guzzler is the air conditioner, especially if you have it running during city driving. Air conditioners in stop and start conditions increase your fuel consumption by up to 20 percent.
The St Albert Homes Report
Alberta Is Growing, Greying and Culturally Diversifying
Alberta is getting older. Perhaps with that advancing of the grey hair and the hint of inevitable wrinkling will come a modicum of wisdom. Calgary is expected to have more than 2.5 million people and Edmonton 1.8 million. The entire province is expecting to top six million in population.
The median age of Albertans is also expected to increase. In 2009 that median age was 36. By 2050 that is expected to increase to 45. Seniors are living longer, are healthier and are able to work into their later years. This may mean the province can and may increase the retirement age.
Health care would need more of the provincial budget to keep up with the needs of the aging population. But then, you would have people working longer and paying more taxes to offset at least some of this.
The province is also expected to become even more multicultural than it is presently. A good portion of those six million people are expected to be immigrants lured by job opportunities and/or a better way of life. The province has to seek workers outside its borders in order to become and remain competitive. Almost 80 percent of immigrants are expected to settle in either Edmonton or Calgary.
The St Albert Property Report
Buyers Have The Upper Hand In St. Albert’s Real Estate Market
April and May are traditionally busy months in the St. Albert real estate market. This year things are a bit different. It looks like April was the high water month for 2010, at least so far. Many of those interested in getting into the real estate market did so before the tightening of mortgage rules and while interest rates remained low. Those rates are slowly creeping up, as predicted.
The increased number of listings on the MLS service has also helped to create a buyer’s market. There are 335 single family homes on the MLS list, as well as 130 condos. That is up from the 227 homes and 126 condos in April. In May, the average price for a single family home was $443,000 and a condo was $269,000. Compare that to the first three months of the year when the average was $446,000 and $269,000 respectively.
James Mabey, a local real estate broker does not view this as an untenable situation. Interest rates, though they are a bit higher than earlier in the year are still reasonable and there is no need to panic. Things still are going very well, considering the tepid real estate outlook in St. Albert a short year ago.
The St Albert Real Estate Report
Mortgage Fraudsters Target Alberta
Alberta’s boom and bust economy has made the province one of the biggest mortgage fraud targets in Canada.
In a boom economy, fraud is often hidden well because boom values can match the values faked by fraudsters. Mortgage fraud often uses false documents that inflate a home’s value. A fraudster takes a loan in the name of a person paid to sign for the mortgage and that person is then left with the loan when the real owner rents the property, defaults or uses the property as a grow-op.
Victims are often immigrants attracted to Alberta’s booming economy.
Laws in Alberta allow potential property owners to overtake another’s mortgage instead of applying for another mortgage, and police said this enables fraudsters to target those with poor credit or those who may not qualify for a legitimate mortgage.
A report recently released by Alberta’s auditor general office recommended Alberta implement a data searching program that is able to find fraud indicators, such as multiple owners, a frequently flipped home or a home whose value has suddenly increased.
The Bank of Montreal recently filed a lawsuit, claiming a $120 million mortgage fraud, potentially making it Canada’s largest lawsuit ever filed.
Fraud lawsuits date back to the 1970s, but Calgary Police Staff Sergeant of the Economic Crime Unit, Gordon Bull, said the reason that more and more fraud cases are appearing is due to Alberta’s slowing real estate economy.
Currently, Calgary does not have a central registry for property fraud claims.
The St Albert Homes Report
St. Albert Considers Dropping Service Dog License Fees
St. Albert’s city council may start giving service dog owners a break. Currently, city bylaws only exempt homes fostering rescue dogs from paying a yearly license fee while owners of and organizations for service dogs continue to pay.
License fees cost $36 a year for neutered and spayed dogs, and $67 for unaltered dogs. It may not sound like much, but for organizations like Dogs with Wings that trains dogs to be service animals, having 12 puppies at any given time costs $432. After owners take the service dogs, they are responsible for the license fees.
Dogs with Wings’ Executive Director, John Wheelwright, said they have asked St. Albert city administration several times to exempt their service dogs from license fees but have not had any success. The city has given him various explanations, including a city rule that states St. Albert can only give five free licenses per year.
Kim Villella, a St. Albert resident and lawyer, has also asked St. Albert for an exemption on service dog license fees. Her 17-year-old daughter Amanda Gossman uses a service dog.
Villella said St. Albert is the only municipality left in the Edmonton region that does not exempt service dogs from fees.
City Councillor Gareth Jones had not previously heard of this issue, but is prepared to push it forward for Council to address in the upcoming weeks.
The St Albert Property Report
County supports community against power line
Councilors at Sturgeon County have agreed to invest $90,000 into intervening on the proposed Heartland Transmission Line project due to start in Fall this year.
Councillors were unanimous in their support of community groups who are speaking out about the power line running above ground through residential areas.
The $90,000 donation from the County will cover the cost of hiring a consultant and preparing the County to become an intervener at public hearings.
In a joint proposal, several power companies plan to run power lines from stations west of Edmonton to the Industrial Heartland region. Initially there were four proposed routes, but now the companies have come down to two options.
Their preferred route runs south of Edmonton, then north through the transportation utility corridor parallel to the Anthony Henday, and then into the Industrial Heartland.
Their alternate route runs past the west of Edmonton into Sturgeon county near Calahoo and Villeneuve, then east to the Heartland.
Although the county agreed to commit $250,000 to the hearings on the proposed power lines, County Commissioner Chris Micek said the County may not use all the allocated funds. Their initial investment of $90,000 allows them to be involved without committing them to full intervention at the hearing. But it does allow them the option to become a full intervener at a later stage. If this happened, they would hire lawyers to represent them and the work being undertaken now would be used in preparing their case.
The St Albert Real Estate Report
St. Albert Man Says He Regrets His Anti-Habitat for Humanity Letter
After receiving harsh criticism for his letter to St. Albert’s City Council about a proposed Habitat for Humanity project, Chris Perry issued an apology for his comments. His letter, published April 3 in the St. Albert Gazette, generated national attention, with negative comments appearing on the Internet.
Perry, a 35-year-old father of five children, said he failed to express himself properly when he claimed that a Habitat development on vacant land in St. Albert would negatively impact the community’s residents. In his letter, Perry acknowledged that St. Albert is an affluent town, that he could afford to live there, and thereby “deserves” the privilege.
Indeed, the 2005 median income for St. Albert of $98,401 is almost $20,000 higher than that for Edmonton. Perry stated that a Habitat development would compel the town’s current populace to contend with people who have been influenced by crime. He also complained that his cost of living would rise because of having to pay subsidies for increased school fees and taxes.
Following the publication of Perry’s letter, many people wrote to the St. Albert Gazette, believing the letter represented a joke on April Fool’s Day. Others expressed their intention to make contributions to Habitat for Humanity in the Perry’s name. Still others have suggested boycotts of the business that Perry owns. Perry said he is happy that his letter has resulted in increased donations to Habitat.
Habitat completed its 100th residence in Edmonton in July 2009. The organization is currently working on a proposal to work with a real estate developer to construct 59 town homes on a three-acre parcel of land in St. Albert. Of the units, at least 15 would be earmarked for Habitat individuals and families that struggle to accumulate a down payment on a home.
The St Albert Homes Report
St. Albert’s High Density Plan Gets Hybridized
St. Albert is trying to go green, but it may do it by taking baby steps. A smart growth plan earlier presented has been modified to a more hybridized version that still encourages higher densities and a commitment to public transit, but with a more lenient approach. The city, while recognizing the need for high density development, still wants to keep the tree lined streets and home front driveways that it is known for.
The original smart growth plan called for three separate development areas designed around transit centres. The new plan calls for one transit centre surrounded by a mixture of high density housing and office space. This would be near the Wal-Mart centre at the St Albert Trail and the plan would target the area with a minimum of 185 housing/office units per hectare. The current average density in St. Albert is 31 units per hectare.
The hybrid proposal has changed the other two transit centres into neighbourhood centres consisting of mixed use property development and recreational areas. The target for these areas is at least 50 housing/office units per hectare. The new plan also lowers the percentage of residential land targeted for high density growth from the original 65 percent to 57 percent.
The new plan also adds a 283 hectare light industrial area near Ray Gibbon Drive into the equation. It does keep the original street alignment already approved in 2007, designed to ease traffic congestion and made the area more pedestrian friendly.
Property taxes are estimated to be up to 5.4 percent lower with the hybrid density plan. The proposal still has to be reviewed and approved, with the final decision not expected until mid April.
The St Albert Property Report
Edmonton Fast Tracks LRT Upgrades to Finish by 2017 in Anticipation of a Successful Expo Bid
CH2M Hill Canada Ltd. secured a contract from the city of Edmonton to build new stations and routes for the city’s LRT system. Now that Edmonton is interested in attracting Expo 2017 to its locale, it is in a bit of a hurry to get the work done. The contract amount was increased by $2 million as an incentive to get the project fast-tracked.
Not all city council members are happy about the increase, especially since the work was not put out for bids, but rather just awarded to CH2M Hill. Mayor Stephen Mandel defended the move, pointing out the time constraints and the fact that CH2M has a world wide reputation. The firm has already done a considerable amount of work on the existing LRT system and is most familiar with it.
David Wiun, the city auditor, was concerned about the lack of a public bidding process, Bob Boutilier, general manager for city transportation, agreed with the mayor. The only way to get the new routes built in time for Expo 2017 is to get things moving as fast as possible.
The federal and provincial governments are expect to indicate their support of Edmonton’s Expo bid, stated to be $2 billion, by the end of this year. Concerned city council members want to be sure the province is going to contribute towards the LRT construction before the project gets underway. As of now, the system upgrade is still in the planning stages.
The St Albert Real Estate Report
Eco-Friendly Community a Big Hit
The ideal eco-friendly community would have centered-open spaces, where residents can hang out on verandas and interact with fellow neighbors. It would include intricate hiking trails that connect centralized meeting and recreation areas. Edmonton now has the region's first ideal, sustainable community called Terwillegar Towne. The community was designed to incorporate several smart sustainable growth principles.
Not only do the developers agree that it is a genius concept, the residents of the community are happy as can be. The community has been developed by Carma Developers, and senior developer, Tom Lumsden say it has not always been easy to sell the project to consumers, but the company has found recent success with the new development. The design is not always be a popular choice among buyers since the sustainable building materials and such supplies are more pricey. If everyone wants these type of residential community housing, more developers would be build sustainable communities.
Financially, the eco-community is not so lucrative for developers, but it enhances the beauty of the earth, conserving the most natural elements of the landscape and property. Many times, developers merely opt for the cheapest supplies, and least labor-intensive process.
These eco-communities are designed around the concept of smart growth. The process is meant to develop the land in a sustainable way, decreasing the chances of urban sprawl and trash, which destroy the earth's natural habitat. The new concept is popular across the U.S. in certain regions but is relatively new to Canada. Presently, St. Albert is reviewing whether the concept would be an ideal fit for the city's 1,337 hectares of annexed land.
The St Albert Homes Report
Afghanistan Tragedy Touches Local School
One of the four Canadian soldiers killed on December 30th was a respected and well liked teacher at St. Cecelia Jr. High. Sgt. George Miok was a reservist that taught at the school during the 2008-2009 school year. He was killed in the roadside bombing in Afghanistan that took not only four servicemen but a journalist based in Calgary that was travelling with the patrol on the outskirts of southern Kandahar.
After word of the tragedy, teachers put together a memorial for the man that was soon covered with thoughts and prayers and memories by students and others that were keenly feeling his loss. Grief counsellors have been sent to the school to help both the staff and the student body to cope with the emotional stress.
The former teacher’s death has also been an eye opener for some, bringing both new insight and questions regarding Canada’s role in the war in Afghanistan. Counsellors are available to help in the understanding of these issues as well.
Sgt. Miok was remembered as being charismatic and always having a smile on his face. His demeanour elicited respect in an unthreatening, amiable way. He enjoyed teaching and was looking forward to returning after his tour of duty was complete.
The St Albert Property Report
St. Albert Wins Bid to Host Special Olympics in February 2012
St. Albert was recently selected to host the national winter Special Olympics in February 2012. Coaches, athletes, and staff will descend upon St. Albert to participate in the milti-sport competitions. All ten provinces, along with the Yukon and Northwest Territories, will be represented at the games.
The national 2012 Special Olympics will host competitions in seven sports. The sports that will be played at the winter games include speed-skating, snowshoeing, curling, figure skating, floor hockey, alpine skiing, and cross-country skiing.
The mayor of St. Albert, Nolan Crouse, claims that the city is absolutely thrilled about the decision. The city has built a solid reputation of hosting the country’s Special Olympic games throughout the past, as it successfully hosted the 2009 Special Olympics Alberta Summer Games.
The mayor promises that the city will do everything possible to make the 2012 Special Olympic Winter Games an enjoyable and memorable time for all participants through state-of-the-art sporting amenities and the strong commitments of its community members.
Vice-president of sport at Special Olympics Canada, Sharon Bollenbach, stated that the City of St. Albert won the bid for the 2012 winter Special Olympic games because they were able to demonstrate the city’s strong commitment to delivering an event that was centered on the enjoyment and gratification of the participating athletes. Not to mention, the city was able to attract over 850 athletes and 300 volunteers for the summer competition it hosted.
The St Albert Real Estate Report
Weak Economy Forces Budget Cuts in St. Albert
Funding for service organizations that help people with disabilities has recently been cut by $10 million out of a $24 million budget. These organizations are expecting even larger cuts when the new provincial budget is released next spring. The remaining $14 million has been set aside for service organizations.
Transitions department provided its employees with a 3.5% bonus with its portion of the $14 million.
The budget cuts come in light of a $6.9-billion deficit this year. Ministers are being instructed to find $430 million worth of spending cuts to offset the deficit.
The province minister Mary Anne Jablonski argued that the $10 million cut is a meager part of the $604 million budget for the Persons with Developmental Disabilities. Paul Fujishige, executive director of Transitions, says that the cuts are unfair because the organizations were the last to receive funding when the economy was booming, but now they are the first to see cuts during recessionary times.
Internal sources from the provincial government have already warned Fujishige that the province is planning to trim between 10% to 15% from its overall budget next year.
The St Albert Property Report
Why Recovery in the Local Real Estate Market Could be Weaker than First Thought
I know that there are some who expect that the Canadian real estate market will rebound soon, and even return to the boom times it enjoyed before the crash. In looking at one recent report, however, I see a number of reasons to be cautious. In fact, the new joint study from the Urban Land Institute and PricewaterhouseCoopers leads me to believe that any recovery in the market is going to take much longer than any of us have expected.
Most are saying that the Canadian market should bounce back more readily than the American real estate market. After all, Canada’s market didn’t suffer either the depth or breadth of the crash that was seen in the U.S. Looking at the overall data, however, there were some areas of the country that experienced sharp declines in real estate – enough to give investors pause as fears of a second bubble burst keep them on the sidelines of any recovery, slowing down the recovery’s pace significantly.
One fact rises above all others, in my estimation: the country’s total value loss in real estate has the market down roughly ten to twenty percent below the lofty heights we saw just a couple of years ago. Couple that general weakness with the sharper declines experienced in certain areas of the nation, and it is little wonder that I am not alone in expecting a markedly slower recovery than we are used to seeing after downturns.
One of the biggest causes for concern is the fallout in Canada from other impending financial shocks from the United States. Few serious observers believe that the Americans have completely resolved the deep problems with their financial markets.
Across Canada, lowered demand due to the economic downturn has resulted in weakened prices and a weakening in the flow of money from properties. PricewaterhouseCoopers expects the market for hotels and condominiums to remain fairly stable, though development should slow as a result of fewer loans for construction.
This all points to a much grimmer picture for the Canadian real estate market in 2010 and beyond. The fact is that development has ran at such a rapid pace in recent years that it will take years to absorb the unoccupied real estate with which the Canadian market is now saddled. That delay in reducing vacancy rates is almost certain to contribute to an even slower recovery, as new development projects will have to wait until demand rises once again.
The St Albert Real Estate Report
St Albert At Odds With The Premier Over Wage Freeze
Despite Premier Ed Stelmach’s October 16 declaration to freeze civil service managers’ salaries for two years, St. Albert bureaucrats are defying the edict. City Manager Bill Holtby advised that wage freezes are not planned for local staff or managers, as the economy inches toward recovery. In fact, raises of 7.6 percent over a two-year period are already in place for unionized employees in public transit and public works. RCMP support workers are also receiving the same level of increased compensation.
Holtby promised a continuation in levels of service, and competitive employee pay, with a proposed tax increase of three percent or less. In determining pay increases, St. Albert conducted a survey to compare civil employee wages with those in cities such Edmonton, Grande Prairie, Red Deer, Lethbridge and Medicine Hat. The survey showed that compensation for St. Albert employees was in the 60th percentile within these areas and resulted in a 4.5 percent salary increase last year.
Alberta’s wage freeze for civil service managers, as well as cuts in compensation for Stelmach and cabinet ministers, may result in one-year savings of up to $600 million.
The St Albert Property Report
Foreign fish may be poisoned by natural pesticide
Riel Pond, in St. Albert, may soon find itself empty as workers try to find a way to rid it of the threespine stickleback. The three spine stickleback is a non-indigenous species that was originally released over thirty years ago in a lake near Edmonton.
The city of St. Albert has requisitioned the government for permission to use rotenone to rid the pond of the fish. Rotenone is an element found in the roots of some tropical plants. The substance is not toxic to humans at all and instantly kills fish. The fish absorb the toxin and simply float to the surface. Rotenone has no environmental side effects and biodegrades in two weeks or less.
Riel Pond was originally built to contain storm water, but a few years ago with the development of a new road, part of the land was turned into wetlands. During this process it was discovered that the invader fish was present and that something needed to be done. Screens were installed into the pond to prevent the fish from escaping into the nearby Sturgeon River. But the screens also caught other debris that was in the pond.These clogged screens are causing problems for the city, especially in the event of heavy rains. The city is reviewing every option that is presented to handle this problem. So far, the only one that makes sense, though not final, is the use of rotenone.
The St Albert Homes Report
Edmonton Area Market Started To Look Up
The housing forecast is looking up in Edmonton, which saw 559 homes started in August, up from 425 housing starts from one year ago and reflecting an increase of 32 percent.
August was the second month in a row that housing starts surpassed the figures from a year earlier in Edmonton, according to statistics released recently by Canada Mortgage and Housing Corporation. In July, housing starts rose by 10.8 percent over the previous year, the first increase in year-over-year figures since January 2008. In total, the seven most populous centers of Alberta saw an increase in housing starts of 8 percent this year.
The increase is due primarily to single-family home construction, which accounted for 384 starts. By contrast, multi-family home starts dropped by 24 percent from last year’s figures, from 241 starts in August 2008 to only 183 units this year.
Despite the increases of July and August, Edmonton housing starts remain down compared to last year. In the first eight months of 2008, housing starts numbered 4,972, versus 2,922 so far in 2009. The recent increase in starts is likely due in part to a sharp drop in home ownership costs and a healthy home resale market.
