Canmore's construction and development industry saw significantly increased activity last year, with total building permits for 2017 reaching $116.5 million.
Canmore's construction and development industry saw significantly increased activity last year, with total building permits for 2017 reaching $116.5 million.
That total represents the highest level since 2007, when building permit values reached an all time high of $220 million.
The 2017 statistics represent a total of $83.7 million in residential construction and $32.8 million in non-residential construction.
Speaking to the Bow Valley Builders and Developers Association (BOWDA) in January, Mayor John Borrowman said building permit values have steadily increased since they dropped to $33.3 million in 2009 after the global economic slowdown.
"The crux of (last year's) development was residential at $83.7 million and more than double that from (2016's) residential, as well as $33 in commercial buildings," Borrowman said. "To put that in context, we have seen a steady recovery in construction since the market fell apart in 2009 after a high of $220 million in 2007.
"That level of construction was unsustainable and it seems to me recent development numbers are definitely more manageable."
The 2014 municipal census provides a glimpse into how development influences employment for the community. While 18.7 per cent of respondents preferred not to indicate what industry they were employed in, 15.7 per cent indicated they worked in accommodation and food services, and 8.6 per cent in construction. That was followed by 8.2 per cent in health and wellness, 7.5 per cent professional services, 6.6 per cent in retail, 5.9 per cent in education and 4.7 per cent in government. A further 3.4 per cent were employed in financial, insurance and real estate services.
The 2008 municipal census, as a comparison, saw construction employment numbers on the same level as food and accommodation, but dropped sharply during the recession.
Manager of planning and development Alaric Fish said a number of larger projects in 2017 result in the $116 million in building permit totals.
That includes five apartment/condo projects with 184 residential units worth $31 million, of which the Northview project on Palliser Trail represents the bulk share. Spring Creek Mountain Village has proceeded with a number of larger developments moving forward last year, including White Spruce Lodge, a new condo project zoned for vacation rentals.
The new Malcolm Hotel development was approved in 2016, and is part of that year's $65 million in building permits, and $26.3 million in commercial building permit values.
There was also approval of the building permit for the new Catholic church and an addition onto L'Ecole Notre Dame des Monts representing $10.2 million in institutional permits in 2017.
"Those are a few of the big ticket items," Fish said.
While 2017 is almost double 2016's permit values, the largest historic building permit numbers are from 2006 and 2007 when there was $200 million and $220 million, respectively.
The 2003-05 period also saw development levels over $100 million, as well as in 2008. Building permits hit the lowest level in 2012 at $27.3 million followed by 2009 at $33.3 million and $38.3 million in 2010.
The period of 1996-2001 was in the $50 million range each year.
The 10-year total from 2008-17 for all building permits in Canmore is $629.2 million.
According to the 2017 Community Monitoring Report prepared by the Biosphere Institute's Bruce Gleig, the peak levels in 2006-7 were an outlier rather than part of an upward trend of ever increasing development and construction.
"Construction is a major source of employment in Canmore and has a substantial multiplier effect throughout the community," Gleig wrote in the report. "The downturn in the local construction industry following the crash in 2008 has had significant consequences for the local economy.
"Although the industry has rebounded somewhat from the post-2008 years, there are still fewer projects and housing start than there were a decade ago."
Fish said, as well, a lot of those values represented condo hotel developments along Kananaskis Way and Bow Valley Trail, a type of development that has not bounced back since the global downturn.
Part of the issue in that sector has been the 28-day restricted stay that is part of the land use zoning for visitor accommodation in the community.
BOWDA executive director Ron Remple said the 10-year trend in building permit values indicates the development industry is maintaining strength, and has been somewhat insulated from the overall recession in Alberta in relation to lagging oil prices.
"One key thing that I see is that, compared to the rest of the province, the Bow Valley has maintained that strength even through the last number of years, where the province has suffered and permits provincially have dropped," Remple said.
"We are a little bit more insulated against the provincial economy that was hit really hard by the drop in oil prices.
"That is one of the things that I really see coming out of these numbers, is we made it through a recession, but we are really strengthening going forward."
He pointed out that 28 per cent of the building permit values in 2017 came from commercial development, which is an important consideration when considering the future tax base of the community.
Canmore has long had a goal of a 60:40 split between commercial and residential assessment and, with more commercial development, that means a greater commercial tax base for the community.
"That is very positive as well, because it is more diversified," Remple said.
He also pointed toward 2018 as having potential for some significant commercial projects in the community, including the Shops of Canmore at Old Canmore Road. The project is set to break ground officially on Feb. 9.
