Showing posts with label Calgary Herald. Show all posts
Showing posts with label Calgary Herald. Show all posts

With the new day comes new strength and new thoughts. Eleanor Roosevelt


Calgary’s new condo market emerging from economic downturn
Sales increasing for new projects
By Mario Toneguzzi
Calgary Herald March 6, 2012

CALGARY — Calgary’s new residential condominium market is in the early days of a recovery from the 2008 economic downturn, says a new housing report by AltusGroup.

The report said new condo apartment sales had plummeted in Calgary with the recent economic crisis and stayed low through 2010, but the market turned around in 2011.

New condo apartment sales in Calgary more than doubled in 2011 to just under 2,500 units, up from just over 1,100 units in 2010.

The report said a large number of new project launches boosted the number of units in projects on the market at year-end to about 8,000 units, up 26 per cent from a year earlier, split almost evenly between low-rise and highrise buildings.

“The weakness in the Calgary market in 2008-2010 was at least in part due to the exit of investors,” said the report. “However, improving economic conditions and lower vacancies are attracting investors back into the market.”

"AN ARTIST IS NOT PAID FOR HIS LABOR BUT FOR HIS VISION." James Whistler

Community unites to transform old Marda Loop school into vibrant new arts hub
Visionary plan for King Edward School
By Stephen Hunt
Calgary Herald February 16, 2012

http://www.calgaryherald.com/news/calgary/1pdnNpMzp4GNQiPi67CVNqQQJu__fGsg/embedstory.html#ooid=1pdnNpMzp4GNQiPi67CVNqQQJu__fGsg

Calgary's arts community just got a sturdier foundation under its feet.

That's how it felt when a jubilant group of arts administrators, philanthropists, politicians and community representatives gathered at King Edward School in Marda Loop on Friday to talk about plans for the transformation of the 100-year-old school into an arts incubator.

"It's a phenomenal plan," says Ald. John Mar. "This is very, very avant-garde in its design and concept, and the community, fortunately, has been very, very positive and welcoming towards the concept of creating an arts hub for the community of Marda Loop."

The ambitious, visionary plan calls for a mixed-use development with a rehabilitated King Edward School at 30th Avenue and 17th Street S.W. as its focal point.

That building will house a mixture of arts groups, community non-profits and social entrepreneurs, in addition to providing rehearsal space and possibly studio space for artists and arts groups.

The goal of an arts incubator is to provide long-term stability for arts organizations, as well as to develop a synergy with the community inside the building, in addition to the community at large.

Evangelos Diavoltsis is involved with two organizations - Quickdraw Animation and the Caravan Dance Company - that have expressed interest in moving into the King Edward School arts incubator when it opens.

"A lot of energy goes into creating stability" for arts groups, he says. "I don't want to always problem solve month to month over how to create it because I think it's a bare bones thing to just have a space - it's kind of like survival. Humans, if they're not surviving, all they're thinking about is surviving - forget about creating."

There will also be a substantial real estate development where the playground now is, in addition to extra space created by knocking down extensions to the school that were built in the 1950s and 1960s.

The sale of the playground to private developers will help finance the anticipated $19-million to $21-million cost of rehabilitating King Edward School. The project hopes to begin the rehabilitation in 2013, with the development taking several years to complete.

It's all part of the vision shared by a group that includes Calgary Arts Development Authority (CADA), cSPACE, the Calgary Foundation and various representatives from the arts community, who are actually daring to dream a little about the day when their organizations can spend less time dealing with surviving and more on creating and thriving.

The excitement over the proposed King Edward arts incubator stems from a partnership forged by the Calgary Foundation and Calgary Arts Development, who teamed up to enable Calgary Arts Development to buy the school site for $8 million.

For Eva Friesen, president and CEO of the Calgary Foundation, the project works three different ways: providing stability for arts groups, engaging the community and preserving a heritage building.

"Triple win," Friesen says. "Four years ago, maybe even five, one of our priority areas was arts and heritage. We were working on, what are the needs of the community? What is something transformational that the Calgary Foundation can put their support behind to make happen for a big impact in this community in that area?

"Parallel to our efforts, CADA was asking the same questions."

The Calgary Foundation was first in, making a $3-million loan to cSPACE, the artspace development arm of Calgary Arts Development, and following that with bridge financing to allow them to purchase the school and adjoining land.

"You always need that trigger investor," says cSPACE president and CEO Reid Henry, "that first organization that's willing to put the risk capital first and they've really stepped up to the plate. They're (the Calgary Foundation) our funder, our partner, our financier and our shareholder in cSPACE.

"That's sort of where we began.

"Long story short," adds Henry, "they (the foundation) really extended themselves, and are trying new things for them as a philanthropic organization, so they're leading the way."

Henry has worked on various arts incubator projects across Canada, most notably Artscape in Toronto, which has rehabilitated several buildings and helped that city's arts community to withstand a long real estate boom.

"We're looking for long-term stability now," Henry says. "This place, this school, this site will be a pretty significant anchor for a big, broad range of the cultural community, whether you're working in the community sector, traditional non-profit stream or doing some sort of enterprise."

They likely won't have a problem finding tenants: 45 members of the arts community responded when Henry put out a request for an expression of interest in the project.

For CADA president and CEO Terry Rock, his organization's successful effort to purchase King Edward School reflects a broader support across every spectrum of the city.

"The thing that I find most interesting about this process since starting CADA in 2005," he says, "is that we have champions all over the place - in elected positions, corporate Calgary and they were really looking for someone that could take on projects like this, that are exciting projects that show the promise of the arts to a city.

"We're really excited," he adds, "that we've got tangible ways to do this now with this new organization (cSPACE)."

When it comes time for the arts groups to move in, it's safe to say they'll be getting a warm welcome from the surrounding community.

"From a personal point of view, it's fantastic," says Marda Loop community association president Marc Doll. "As an association, when it was approached before the entire project had any legs at all, our reaction was, 'Fantastic idea.'

"It provides for access and is going to be something the community can use, on the bottom floor. It brings life back to a dead building."

ROBUST RETAIL


Calgary demand for new retail space ‘unprecedented’: Colliers
More than 10 million square feet proposed
By Mario Toneguzzi,
Calgary Herald October 31, 2011

CALGARY — Demand for new retail space in Calgary has reached an ‘unprecedented’ level, says a report by Colliers International.

The commercial real estate firm says 27 projects comprising just over 10.7 million square feet throughout the city are in the planning, permitting or construction stage.

“The momentum of the Calgary retail market in 2011 can be best described as resilient and very robust,” says the report. “The overall vacancy rate has remained unchanged over the past 12 months at 1.45 per cent.

“Calgary has the distinction of having one of the lowest, if not the lowest, retail vacancy rates in all of North America.”

With the influx of both Canadian and international retailers, all vying for a “slice” of the Calgary market, the retail market is expected to remain very strong into 2012, with vacancy rates approaching 1.3 per cent, says Colliers.

“The retail development community is actively pursuing new projects throughout the city, including a push into inner-city mixed-use developments,” says the report.

A FRENZIED PACE!


Calgary office leasing activity a sign of prosperity
Employment growth expected to follow
By Mario Toneguzzi
Calgary Herald October 27, 2011

CALGARY — It is a symbol of both current and future prosperity.

And judging by the record, frenzied pace of leasing activity in the downtown office market, Calgary’s economic fortunes appear to be looking good right now - and down the road.

The leasing activity is sure to lead to future employment growth.

“Companies don’t snap up office space just to lounge in it — if energy companies are expanding their office footprint, they plan on growing their business. This means more drilling, more investment, more jobs and more economic growth for Alberta moving forward,” said Dan Sumner, economist with ATB Financial in Calgary.

Greg Kwong, executive vice-president and regional managing director of CB Richard Ellis Ltd., who moderated a panel discussion on the topic Wednesday at the Calgary Real Estate Forum, said so far this year absorption in the downtown market is 2.2 million square feet.

“To put it into perspective, the average over the last 15 years has been about 750,000 square feet annually. So unbelievable in that respect,” said Kwong. “Why is it happening? Probably two factors. One is if you talk to the oil and gas companies and energy-related services companies that are taking space ... they’re banking space again.

“The second factor is that there was an unusual amount of lease renewals that came up for expiry in the last couple of years and they took advantage of what was deemed to be a slower market.”

Kwong said the difference in the oil and gas industry between today and 30 years ago is that capital budgest and decisions involve billions of dollars being laid out over 10, 15 or 20 years.

Todd Throndson, managing director of Avison Young in Calgary, said many companies are making plans for the long term.

“They want to protect themselves for projects that they may have in six months, in 18 months, in 24 months. Down the road, they’re thinking big picture,” he said. “A lot of companies back in 2006 and 2007 were put in very compromising positions because of their real estate needs. They weren’t able to get the space they wanted. They had to pay a lot more money for the space than what would have been ideal.

“So a lot of them with strong balance sheets are making sure they protect themselves and get their space for their corporate needs going into the future.”

That’s reflected in the downtown office vacancy rate. According to Avison Young, it’s reached its lowest level since early 2009. Over the last three months, downtown office vacancy has dropped from 7.4 per cent to 6.2 per cent.

The addition of skycrapers Eighth Avenue Place and the Bow have not spiked the vacancy rate as was feared a couple of years ago. And demand is fuelling talk of more new development on the horizon.

Bryan Slauko, managing director of Base 10 Capital Advisors, said the amount of absorption implies significant growth in the number of office jobs in Calgary that would be needed to fill those seats. And filling all those seats requires new employees which would mean population growth in Calgary. But population growth can’t match that level of employment growth.

“It begs the question: if there’s not a ton of new office employment currently compared to the historical level to absorb all that office space then in my opinion it seems to mean . . . it’s for speculative growth. They’re planning on growing into that space in the future if the economy holds up and their hiring plans continue,” said Slauko.

“But that comes with a fair amount of risk to the office market because we see today in the economy there’s a lot of global economic uncertainty and I don’t believe Canada is immune and Alberta’s not immune because there’s a lot of risk to the natural resource prices that we depend on.”

And if the economy heads south then potentially a lot of office space will be coming back onto the market for lease.

HIGH-END HEALTH


High-end resale sign of health
By Marty Hope
Calgary Herald May 27, 2011

Overall, Calgary’s housing markets have been struggling to regain ground lost to the economic downturn — and it’s been a tough fight.

The resale industry found itself saddled with a huge inventory when consumers turned fickle and decided the housebuying binge of the early part of this decade was ending.

They went into hibernation and are now gradually coming back into the market.

The economic fundamentals — job creation, migration and salaries — are improving and in general, so is the housing outlook.

A look at one specific segment of the resale sector is proof the economy is coming back.

A few years back, I had a chat with a realtor who told me that as long as the high end of the resale market was active, the economy was in good shape.

People buying in those price categories wouldn’t be spending that kind of money if they had any notion the economy was in trouble.

If figures from the Calgary Real Estate Board are any indication, everything is humming along.

For the first four months of this year, 437 resale properties priced at $700,000 or more changed hands compared with 368 for the same period last year — and were selling faster.

On the heels of these impressive numbers came a report from Re/Max regarding activity at the upper end of housing markets in 12 major centres in Canada.

The report says that improved financial standing among people with high net worth is the major factor driving strong resale activity at the top end of Canadian housing markets.

It found that luxury home sales surged in nearly two-thirds of housing markets from January to April compared to the same period in 2010.

In terms of percentage gain, the largest growth occurred in Greater Vancouver at 118 per cent, followed by Ottawa at 59 per cent and Calgary at 51 per cent.

Greater Toronto was well down the list at nine per cent.

On the new homes front, Calgary builders continue to cater to a growing number of buyers looking for large homes in inner-city communities, estate neighbourhoods in the suburbs, and acreages in rural areas surrounding the city.

“The upper end of the market is vibrant,” says Jim Quinn, president of QuinnCorp Holdings Inc., which is developing Aspen Estates on the west side of the city.

“Calgary has a deep pool of wealth. It’s quiet, reserved and subtle, but it’s there.”

PRICE IS RIGHT

The pace of the resale market is growing for homes with larger price tags, says the Calgary Real Estate Board.

“We are seeing improvements in the sale of homes in the higher price points,” says board president Sano Stante.

“Homes above $700,000 are selling within an average of 41 days. This is consistent with pre-recession levels.”

BALANCE BEAMS


Calgary house prices expected to increase
Local market classified as balanced
By Mario Toneguzzi
Calgary Herald March 23, 2011

CALGARY — Short-term year-over-year price growth is expected to be in the five to seven per cent range for Calgary, according to the Conference Board of Canada.

In releasing its monthly Metro Resale Index on Wednesday, the board said Calgary’s real estate market is currently classified as being under balanced conditions.

In February, the average residential resale price rose to $406,216, up from $401,743 the previous month and $394,850 in February 2010.

The board also said that sales, on a seasonally-adjusted annual basis, were up by 6.1 per cent in Calgary to 23,784 following a 2.2 per cent hike in January to 22,416. But that is still down from 23,820 in February 2010.

“It’s a reasonably balanced market. That’s what we’re seeing,” saids Robin Wiebe, senior economist with the board. “Sales are on the upswing. They rose six per cent in February from January and that builds on a two per cent growth the month before. And that’s starting to eat away at the stock of listings.

“Sales are bouncing back from a bit of a tough spot later in 2010. They’re coming back . . . There seems to be a little bit of momentum building in the Calgary market which is why we are forecasting a decent price outlook.”

The sales to new listings ratio in Calgary increased to 0.558 from 0.547 in January and 0.531 in February 2010.

The board also said that new listings were 46,812 in February on a seasonally-adjusted annual basis compared with 44,748 the previous month and 48,576 a year ago.

“Over the last couple of months, we’ve definitely seen sales pick up,” said Dan Sumner, economist with ATB Financial in Calgary. “I still think all in all sales aren’t really strong. We are seeing kind of a recovery from really low levels.

“In Calgary, it’s been stronger than other areas of the province. The Calgary resale market has been better than most of the rest of Alberta but it’s still nothing to get too excited about.”

Sumner said preliminary data indicates that March “has not been a blockbuster month” for MLS sales in the city.

In its Metro Resale Index, the board classified Saskatoon, Gatineau, Montreal, Quebec, Sherbrooke, Trois-Rivieres and Saguenay as having short-term price growth expectations in the seven per cent and higher range.

Victoria, Vancouver, Fraser Valley, Edmonton, Regina, Winnipeg, Halifax and Newfoundland joined Calgary in the five to seven per cent range followed by Thunder Bay, Sudbury, Hamilton, St. Catharines, Kitchener, Kingston, Ottawa, and Saint John in the three to five per cent range.

Toronto, Oshawa, London and Windsor can expect short-term year-over-year price growth of zero to three per cent.

A LIVING LINK


Bridgeland-Riverside has a colourful history
1901 to 1925:; Life in old city neighbourhood seems to go at slower pace
By Valerie Berenyi, Calgary Herald
December 27, 2010 6:24 AM

Want to know how the "ethnic" side of Calgary grew up? Take a trip back in time through Bridgeland.

One of Calgary's oldest inner-city neighbourhoods, this northeast community retains elements of an Old Country village. Here you can still see seniors hanging laundry on the clothesline or gardening in their vegetable plots. Much has changed with condominium development on the site of the former General Hospital -- built in 1908 and imploded by Ralph Klein's cost-cutting government in 1998 -- but the tidy, modest houses on tree-lined streets remain. Life seems to go at a slower, quieter pace here.

Marshall Libicz is a living link to that past.

Born in 1922 at the General Hospital, he's the son of an ethnic Ukrainian who'd moved to Canada in 1912 after leaving Galicia, a part of the Austro-Hungarian Empire. A hale and hearty 88-year-old who loves to garden, Libicz remembers his childhood Bridgeland as largely rural.

People kept chickens, tended market gardens and grazed cattle on vacant prairie land. Milk came, not from the local grocery store run by the father of Alberta's recently retired lieutenant-governor Norman Kwong, but from a neighbour's dairy cow.

A streetcar line rumbled along First Avenue, ridden by working men coming home from the Dominion Bridge Co., Riverside Ironworks and the CPR rail yards, "all smeared with grease," says Libicz.

"I remember when Bridgeland-Riverside was just about all German," he says, referring to the neighbourhood's proper name, and some of its early residents.

Indeed, the community has two distinct areas: Riverside is generally considered to be the flats below the old hospital site; Bridgeland is located above it.

Geography played a role in shaping this unique community: the Bow River frames the area's southern edge and a steep crescent-shaped escarpment, carved by retreating glaciers, envelopes the community to the west, north and east.

From the late 1880s to the turn of the century, members of the Blackfoot Tribe camped in the area and kept a close eye on the fledgling town that was springing up on the south side of the river.

The north bank of the Bow opened up after Langevin Bridge was built in 1882 and the First Nations people gave way to a flood of European newcomers after 1905.

While earlier Anglo-Saxon immigrants had settled in residential areas developing south and southwest of downtown, Germans, Italians, Poles, Hungarians and Ukrainians made the north side their new home. The flatlands of Riverside, a.k.a. "Germantown," were dominated by ethnic Germans from Russia. Italian, Ukrainian and other immigrants settled in Bridgeland.

They left their indelible imprint on the community's houses, churches and businesses, many of which remain and make the area so appealing. There's the pretty, onion-domed Russian Orthodox Church of All Saints overlooking Bridgeland and the striking St. Matthew Lutheran Church in Riverside, to name but two.

Other colourful residents in the early 20th century were Gypsies, who parked their caravans along the north bank of the Bow River until 1927. Even spicier, the area was infamous for its red-light district.

"Numerous brothels also operated in Riverside before the community's 1910 annexation to Calgary," writes Douglas Stinson in an essay posted on the Bridgeland-Riverside Community Association website.

"Before this jurisdictional change, the area was the responsibility of the Mounties, not the city police. Following the annexation 'the women from across Langevin Bridge' relocated to the Nose Creek valley, outside city boundaries. This red-light district remained sheltered by the escarpment's eastern slope until the First World War, when the houses were either torn down or destroyed by fire."

Calgary annexed Bridgeland in 1907 and added Riverside to its holdings three years later. Much of the land was owned by the CPR, and the subdivision of Bridgeland was parcelled out in 25-foot lots, sold to working men through the real estate firm of Toole, Peet and Co.

Around the same time, Bridgeland-Riverside was further connected to the bustling city by streetcar lines. Real estate and land development were booming.

"(The years) 1910 to 1912 marked Calgary's biggest boom ever," says public historian David Finch. "It was huge."

By 1912, 47,000 people lived in Calgary and enjoyed the fruits of urban prosperity.

Many of the city's landmark sandstone buildings -- old City Hall, the Palliser Hotel, Memorial Park Library -- were built during this heady time.

Residents of Bridgeland-Riverside took advantage of the new urban parks located on three little islands in the Bow River, St. George's, St. Andrew's and St. Patrick's, linked together by rustic bridges and tethered to the mainland on either side by steel bridges. There was a free zoo, promenades, playgrounds with a merry-go-round, which Libicz enjoyed in his childhood. Picnicking was a popular pastime.

And there was a new fair called the Calgary Show, started in 1912 by cowboy promoter Guy Weadick. It lost money and wasn't revived until 1919. In 1923 it was renamed the Calgary Exhibition and Stampede.

Walter Chitrenky, Libicz's pal and another longtime Bridgeland-Riverside resident, recalls going to the Stampede when he was eight or nine. At the time, two ponies, a bicycle and a cocker spaniel puppy were given away in a draw for school kids.

"I wanted that pony," says Chitrenky, 80, "but it was never me."

Later, he bought a horse for $35 and pastured it near Tom Campbell's Hill. Once, it got loose and tore up a cabbage patch in a nearby market garden. Chitrenky was fined $10.

The two men chuckle about having played street hockey on the community's dirt streets, using frozen horse turds for the puck and goalposts.

As with the boom-bust cycles that endure today, Calgary's overheated economy collapsed in 1913, bringing hard times.

Annie Gale, a community activist later elected to city council (making her the first female alderman in the British Empire) observed the lack of fresh vegetables, most of which were imported, expensive and poor quality. She led the charge to establish the Vacant Lots Garden Club in 1914. Calgarians could rent a plot in an empty lot for $1 a year. The program provided food and beautified the city by ridding vacant lots of weeds, dust and garbage.

In Bridgeland-Riverside, a long section of vacant-lot gardens sprouted behind three houses on McDougall Road. Libicz said his parents, in whose home he still lives, started gardening there in the 1930s. Later, he did too -- for 70 bountiful years.

In 2008, Libicz and his friend Mike Ricketts, a 66-year-old retired military man who grew up in Hillhurst but moved to Bridgeland-Riverside 11 years ago, were instrumental in having the city declare the Bridgeland/Riverside Vacant Lots Garden a municipal historic resource. Today, they share the garden with 10 neighbours.

The year 1914 must also be remembered for the discovery of oil at the Dingman No. 1 well in nearby Turner Valley. The boom that followed was short-lived, lasting only May to August -- curtailed by the outbreak of the First World War.

The war years made for a difficult, even frightening, time for some residents of Bridgeland-Riverside.

"Antagonism towards German residents flared up in 1916, when mobs of soldiers and civilians wrecked the White Lunch Restaurant and demolished portions of the Riverside Hotel," writes historian Max Foran in his book Calgary An Illustrated History (James Lorimer & Co., 1978).

"It was city council policy between 1916-18 to employ only British subjects and to dismiss all individuals born in alien territory."

After the Great War, life returned to relative normalcy, only to be interrupted in October 1924 when a subsidiary of Imperial Oil drilled below the Dingman well and struck it rich again, tapping into a major oilfield, and igniting natural gas and yet another boom.

"(For years) they were flaring gas in Turner Valley and if you looked to the southwest, there was a glow in the sky," says Libicz, an eyewitness to Calgary history in the making.

A MODEST RISE


Modest rise predicted in Calgary home prices
Investing In Real Estate; Monthly numbers up one per cent
By Mario Toneguzzi, Calgary Herald
December 21, 2010

Short-term year-over-year house price growth in Calgary is expected to be in the range of five to seven per cent, says the Conference Board of Canada.

In its Metro Resale Index released Monday, the board said the average MLS sale price in the city in November was $397,239, up one per cent from October.

Also, on a seasonally adjusted annual basis MLS sales in November increased by 8.6 per cent from October to 21,017.

Realtor Christina Hagerty, with Re/Max Realty Professionals in Calgary, said at the beginning of this year when first-time buyers were entering into the market, industry experts felt a ripple effect was bound to happen.

That led to a surge of sales in the $400,000-$500,000 range which allowed for a third quarter spike in the luxury market as well.

"We are seeing two predominant clientele out there right now," said Hagerty of her inner-city clients.

These are "first-time buyers, which after calculations prefer to own instead of rent as it's either cheaper or similar monthly payments; (and) savvy investors who know that some people are still hesitating or unable to enter into the real estate market and are buying properties to rent."

Hagerty recently sold a 2,239-square-foot penthouse condo in the Arriva highrise in Victoria Park for $1.125 million. She has another 2,799-square-foot penthouse condo in the tower listed for sale at $1.899 million.

Hagerty said the local real estate market is buoyed by move-up buyers as well as investors, not speculators, who are buying properties for long-term hold investments.

"People are confident they have their jobs in Calgary and know they are here for at least a few years," she said.

"They are making decisions based on this -- moving their families, starting the kids in schools. They aren't maxing out their mortgage approvals. With the low interest rates, people are taking advantage, but aren't using every last dollar they are approved for. They are leaving a little for a rainy day."

The conference board forecast the following Canadian centres to experience seven per cent and higher short-term year-over-year price growth: Saskatoon, Gatineau, Montreal, Quebec, Sherbrooke, Trois-Rivieres and Saguenay.

Joining Calgary in the five to seven per cent range were Victoria, Vancouver, the Fraser Valley, Regina, Winnipeg, Halifax and Newfoundland.

Despite the optimistic outlook, in Calgary seasonally-adjusted sales in November were down from the 27,816 recorded in November 2009 and the average price was just slightly off the $400,865 from a year ago.

In November, there were 891 single-family home sales in Calgary for an average price of $455,460. In October, there were 888 transactions at an average of $444,744.

In the condo market, Calgary saw 310 MLS transactions in November, the same as in October, for an average sale price of $284,667. That was down from the average of $287,793 in October.

The conference board said the sales-to-new listings ratio in Calgary was 0.521 in November, increasing from 0.494 the previous month. A year ago, it was 0.653. It classified Calgary as currently being a sellers' market.

On a seasonally-adjusted annual basis, listings for Calgary were 41,929 in November, up from 39,406 in October but down from 44,500 a year ago.