King George developer seeks tax breaks
The StarPhoenix
Published: Tuesday, October 21, 2008
The developer turning the former King George Hotel into condos, retail and office space is asking the city for almost $500,000 worth of breaks on taxes and construction-related fees.
City administration is recommending that George Development, a subsidiary of Meridian Development, get a rebate worth up to $31,265 on current property taxes during construction; tax-free status on the condos for five years, worth $420,000; and a 75 per cent rebate on levies worth $46,675.
The tax and levy reductions are in line with the city's downtown housing incentives.
City council will consider the reductions next week. The administration and finance committee briefly reviewed it Monday.
Coun. Myles Heidt said he's excited to see more housing under construction downtown.
"I hope we get more (applications) coming," he said. "Bring it on."
© The StarPhoenix (Saskatoon) 2008
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Saskatoon builders confident
Huge increase in non-residential building permits
Joanne Paulson, The StarPhoenix
Published: Tuesday, October 21, 2008
The value of non-residential building permits has soared 227 per cent in Saskatoon this year to $333.9 million, already eclipsing the $322 million posted for all of 2007, says a new report from the Saskatoon Regional Economic Development Authority (SREDA).
In the surrounding areas, permit values have jumped 1,620 per cent to the end of September, rising to $123 million from $7 million last year.
Shaun Dyck, economic development analyst for SREDA, said in his third-quarter report there is plenty happening in the Saskatoon region.
"There are a few new industrial buildings going up in Corman Park. There's land available out there; it's a little less expensive than in the city," said Dyck.
A landscaper puts the finishing touches on a building on Millar Avenue; the value of non-residential building permits issued through September this year has already surpassed the total for 2007
Gord Waldner, The StarPhoenix
But one project accounts for the lion's share of the permit increase outside Saskatoon.
"We can attribute this big increase in the investment PotashCorp is making," said Dyck. Potash Corp. of Saskatchewan's Cory mine expansion and upgrade will ultimately cost $775 million US to build.
Back in the city proper, the biggest permit was the $123-million permit taken on the Health Sciences Building expansion at the University of Saskatchewan.
"That's a major one," said Dyck, but he added much of the building growth has largely been outside the institutional sphere.
SALES PUSH INVESTMENT
"There has been a lot of investment this year in commercial and industrial, a lot of new warehouses, some alterations and additions to manufacturing plants, distribution centres like Maple Leaf and Star Egg. Our food processing and our metal fabricating are doing well.
"We've also seen, over the last quarter or so, the retail sales numbers and wholesale trade numbers (for Saskatchewan) have the biggest growth in the country. People are seeing retail sales grow, so they're feeling confident in doing expansions or new businesses in Saskatoon."
While rising costs must be factored into the booming numbers, it's still a spectacular year for non-residential construction. Potash, agriculture, mining, metal manufacturing and food processing have been driving these increases. How long these numbers will continue, considering a slowing global economy, remains to be seen, said Dyck.
"They've been rising consistently over the last few years and the world demand for what we do is still there," said Dyck.
"It has something to do with confidence and we've seen a change in attitudes in the province and the region."
Saskatoon residential permits, meanwhile, have levelled out from 2007 -- although they are still at levels not seen since the early 1980s, at $173.8 million, up 0.3 per cent from 2007. However, the value of permits is up 25 per cent in Saskatoon's Census Metropolitan Area (CMA), to $315.7 million from $252.6 million in the same period of 2007.
"In the new house construction area, more multiple-family starts are happening and that's where we see the bulk of new housing starts," added Dyck. "It's a response to rental vacancy needs."
Multiple-family starts are up 38 per cent, while single-detached dwellings are down six per cent from the same period of 2007. Total housing starts so far are up 11.4 per cent in Saskatoon's CMA at 2,095. In Saskatoon, starts are up seven per cent to 1,474 units and in the surrounding area, 23 per cent to 621 units.
LABOUR MARKET SWINGS
In the same three quarters, the labour market has seen some ups and downs, depending on the industry.
Jobs in transportation and warehousing have dropped 25 per cent during the last three quarters and two-thirds of the drop came over the last quarter.
"Possibly gas prices have had an effect on the industry. With gas prices coming down again, that could help the industry," said Dyck.
Manufacturing has increased 3.7 per cent over last year, "which is a good sign that the (falling) dollar isn't affecting us like it is in Ontario," said Dyck.
Overall, employment in the Saskatoon region is up 1.4 per cent to 139,800. Mining, oil and gas industries are leading the way with a 114 per cent increase.
"Approximately 2,000 more people were working in the Saskatoon region at the end of the third quarter of 2008 compared to a year ago," said Dyck in his report. "Since the population grew faster than the employment numbers, the region's unemployment rate increased over the past year."
The working age population grew by 6,400, or 3.3 per cent, while unemployment was up 4.7 per cent.
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NON-RESIDENTIAL PERMIT VALUES FOR SASKATOON
2000: $124 million
2001: $155 million
2002: $142 million
2003: $104 million
2004: $82 million
2005: $180 million
2006: $205 million
2007: $322 million
© The StarPhoenix (Saskatoon) 2008
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