Edmonton Property Report - March 9th, 2010

The Gem Theater Is Gone From The Edmonton Landscape

Gem Theatre, a 97 year-old building once located on Jasper Avenue, has been demolished by the City of Edmonton after a ten-year dispute that simmered between the city and its owner. The dispute was over the disrepair of the building, and inadequate disclosure about the building’s state at the time of purchase.

It was 1999 when Oliver O’Connor, an Edmonton realtor, purchased Gem Theatre from the City of Edmonton for $77,500. At the time of purchase, the city alleges that O’Connor had agreed to provide a letter of credit and have an engineer conduct a report on the state of the roof. In addition, the city states that O’Connor was to make various building repairs and restorations including preserving the front of the building. He didn’t.

O’Connor filed a suit against the City of Edmonton for $520,000 based on allegations that the city improperly represented the building’s market value, distorted the truth regarding the number of counteroffers, and covered up the building defects.

In his 2001 counterclaim, O’Connor argued that there was inadequate disclosure of the building’s condition, and that if full disclosure had been made at the time of purchase, there would have been a “material effect” on his purchase decision. 

In the end, the city has lost a 97 year-old piece of history, and the implications on future land deals are being considered. The dispute between the City of Edmonton and O’Connor was tied up in court long enough that the heart of the matter, the Gem Theatre, was ultimately destroyed.

Edmonton Property Report - February 27th, 2010

Edmonton Fashion Week Gets Makeover, Including Name Change

Fashions change, and so are several aspects of Edmonton Fashion Week.  Not only will the event’s magazine be re-launched in March, but the event will now be known as Western Canada Fashion Week.  

According to Sandra Sing Fernandes, who is the organization’s executive producer and creative director, Fashion Week is attracting designers from Vancouver and Calgary.  Due to the growth, Fashion Week needs to encompass its current activities and constituents.  

Fernandes said that Edmonton will continue to receive much of the focus, and that Edmonton-based designers will receive priority on showcases.  She hopes that showcasing designers and buyers from other areas will generate attention for local talent.  She said that cross-promoting is of great benefit to the Edmonton participants, noting that people in the fashion industry are supportive of each other’s efforts. 

Fashion Week, which has been in operation since 2001, will return April 1 through 8 to the TransAlta Arts Barns.  Many noted designers will participate, including Edmonton’s Laura Dreger and Kelsey McIntyre.  Michael Kaye, an Edmonton native based in New York City, will present his own collection titled “Ladies Who Lunch.”  Also participating are Jason Matlo of Vancouver and Joeffer Caoc of Toronto.  

Rising stars in fashion will also get a chance to be in the show by way of the Emerging Designer Contest.  One recipient will win an internship at the New York studios of Kaye.  Also, Beryl Bacchus, a Toronto designer, has agreed to be a mentor to nascent designers through an incubator program hosted by WCFW. 
 

Edmonton Property Report - February 19th, 2010

Patience, Dedication, Practice and Sacrifice Pave the Road to Olympic Gold

It is possible that being athletically inclined is genetic. Kathy Gregg, a speed skater, competed in two Olympics under Canada’s flag.  She met her husband Randy in Lake Placid in 1980 who was also competing at the games. Randy was once an Edmonton Oiler, involved in another sport that required him to be fast on his skates.

This is where it gets interesting.  Three of their four kids have a penchant for speed skating.  The fourth, still sports minded, prefers baseball. Jamie, age 24 and Jessica, 21 are competing in the Vancouver 2010 Olympics in speed skating.  The 2014 Olympics may very well see their daughter Sarah, who is in training, show her stuff on the icy oval.

Other kids get into sports just because it’s there. Something sparks their interest, like what would it be like to bungee jump out of that tree? Sometimes that perhaps ill thought bungee jump turns into an Olympic or NHL career.  

No matter how kids and young adults get involved in the sport of their choice, the hours of practice require patience, sacrifice and dedication, all of which build character in other aspects of their lives. Parents also have to sacrifice their time, and often their money into their child’s quest to be the best in the sport they love.

If the stars align and the faith is held, it is possible that all that dedication and sacrifice will lead to a spot on the Olympic team.  Better yet, it may even lead to gold.

Edmonton Property Report - February 15th, 2010

City Ups Firm's Contract for Fast-Track Service

With the hopes of a successful bid for the 2017 Expo, the engineering consultation firm received an untendered contract increase for $2 million if they can fast-track the LRT planning.

Several council members are upset and asking why the contract boost wasn't put out for bids to other possible designers.  The believe that the work should be postponed anyways until the funding for the entire project is secured.

Some of the council members feel that it is absolutely foolish that the city would continue to spend money on planning when the capacity to build the project does not even presently exist.  Doing all the design now is pointless if the line won't be built for five to ten years.

The consultation firm, CH2M Hill, is supposed to produce the proposed station locations and track alignments with in the corridors that were approved by the city council last year.  There has already been a report last year, by city auditor, that raised questions about the single-source contracts, especially how they challenge the public service transparency.

Other city council members responded with the fact that CH2M Hill is a world-class firm that has not only done extensive work for the LRT system, but they work with countries around the world to help implement state-of-the-art transportation services.

Edmonton Property Report - February 9th, 2010

Modest Economic Growth Predicted for Edmonton in Next Five Years

The local Edmonton economy will see a rebound this year after experiencing its first loss since 1991.  This prediction is offered by the Metropolitan Outlook of the Conference Board of Canada.  

Growth of 3.2 percent is estimated, and the organization expects that the gross domestic product for the region will increase at an average of about four percent in the years between 2011 and 2014.  This modest rate of growth compares with a GDP decline of about two percent for 2009, which is the largest decrease in the region’s record books.

The prospective recovery for Edmonton puts the market on equal footing with Kitchener, Toronto and Vancouver.  Growth for these cities is estimated to be a respective 3.3, 3.5 and 4.5 percent.

The GPD for Calgary is predicted to recover from the first recessionary period it has experienced since 1989.  Growth of approximately three percent is anticipated, with vitality in the sectors of services, retail sales and consumer goods.

According to Mario Lefebre, who is the director of the government’s Centre for Municipal Studies, there were four cities in Canada that experienced any kind of economic growth last year.  The markets were Saint John, Halifax, Regina and Winnipeg.  Lefebre said that Canada’s major cities are on track for economic recovery this year, but the rates of recovery will not be consistent.

Of the markets poised for growth, Vancouver has very strong prospects not only because it is hosting the Winter Olympics, but also because its home construction industry and consumer spending are expected to exhibit growth this year.

The recovery for Edmonton may take more time, according to the forecast.  The city’s job forecast is expected to be somewhat weak, as unemployment may rise to 7.5 percent during this year.
 

Edmonton Property Report - January 29th, 2010

Slumlord Illegally Evicted Tenants From Filthy Rooming House

A slumlord in Edmonton illegally evicted tenants and created extensive damage to his own rooming house so he could sell the property for demolition. Giovanni Canonaco, age 76, has been charged with 31 counts with the Public Health Act.  Canonaco has owned the property at 9223 110A Avenue since August 1978 and put it up for sale in October 2009.

A visit from inspectors in January 2009 discovered rooms that did not have running water. Bathrooms in the rooming house were in such filthy condition, they beyond the point of repair. A number of windows were either missing or broken.  Smoke detectors were not functioning.  The basement was cluttered with flammable contents. The fire escape was not at current code level.  Sinks in the house were leaking, and mould had developed near them.  Two longtime home inspectors advised that the building was one of the worst cases they had ever witnessed.

Prospective buyers of the property wanted it to be vacant, so Canonaco put up eviction notices for the tenants, most of whom were subsiding on Welfare and AISH.  One tenant was expecting a baby in three months, and another was handicapped.  When his tenants refused to leave when he ordered them to, he decided to take matters into his own hands.  Rob O’Neill, Crown prosecutor, said that the defendant removed a door from a suite until a tenant would finally move out.  He also threw tenants’ possessions into the hall and changed the door locks.  

A decision will be provided February 17 by Provincial Judge Paul Sully.

Edmonton Property Report - January 22nd, 2010

City of Edmonton Buys Hotel Site

The city of Edmonton plans to buy one of the area's most notorious hotels, which officials plan to incorporate into a major social housing project in the city.  For years, the site of the hotel has been attracting police and fire department support continuously as all the businesses in the area combined.

The hotel was always the center of problems, and last year the local officials canceled the hotel's night club license.  They told the hotel they could no longer operate because the officials believed that the hotel staff did not do enough to curtail suspicious behaviour and violence.

Police say the scene was so bad that the chances of serious injury or death could occur from violence of hotel patrons.  There has been a hearing set for discussion about the future of the site, but just a few days ago, lawyer for the company who owns the hotel says there is no need for talks because the city now plans to purchase the hotel.

The lawyer for the company says that the deal is already complete and that the city has until April 1 to wrap it up.  The property consists of a two-block area that will become part of the Boyle Renaissance redevelopment.  The new development is expected to add over 580 new subsidized housing units.

The master plan of the new site is still under consideration, and officials hope to have a master plan of the development by the end of April.

Edmonton Property Report - January 18th, 2010

Help for the Homeless and Less Fortunate Should be Citywide in Edmonton

The Boyle and McCauley neighbourhoods have been considered the rough part of town for generations.   Skirting Edmonton’s downtown area on the eastern and north eastern end these two areas started developing that reputation right around the 1950s.

Immigrants called McCauley home. World War II refugees, mostly from Europe, ended up in the area.  They experienced prejudice in other parts of the city and this neighbourhood became sort of a dumping ground for those with less than perfect English and foods and customs not readily understood.

The Boyle area was well known as an after hours party centre, filled with dive bars, low end restaurants and scores of prostitutes ready, willing and able to sell their wares. That particular form of entertainment is still available.

Today the combined Boyle-McCauley neighbourhoods are magnets for the homeless, drug addicts and those in need of mental care. The low income area has the highest crime rate in the city.  Even some of the homeless are leaving to pitch tents elsewhere.

What can be said, in a positive light, is that depressed property values have given families a chance to pick up some vintage homes at bargain prices.  There are enough of these new residents that they are becoming verbal about the state of the community.

Suggestions have been made that the homeless be made welcome throughout the city not just in depressed areas such as Boyle-McCauley. If the city focused on offering subsidized housing and social services in more parts of Edmonton, more of the homeless could be helped.  It would also keep parts of the city, like Boyle-McCauley from developing such unsavoury reputations.

Edmonton Property Report - January 12th, 2010

Local Bakers Find Success Among Suburban Sprawl

Bread is popular in Edmonton, and with various cafes and coffee shops snatching up every bit of property they can get, a few independent bakers continue to flourish in downtown.

Yvan Chartrand just purchased the Tree Stone Bakery on 99th Street from the longtime owner, Nancy Rubuliak, who is retiring.  They plan to keep the tradition of European breads alive, but also add a new line of pastries and croissants.

The bakery does not use preservatives and additives in their breads, and the owners try to use only organic products.  A wood-burning over will be installed by Yvan by 2011.  The demand for bread in Edmonton has driven new openings of three independent bakeries.  Among wide-spread suburban sprawl and outlet malls that define the landscape, small food establishments that help the area are a godsend.

Edmonton has seen the quality of its food supply fall over the past decade, as many food professions, such as butchers and bakers, seem to be lost.

A new local shop, the Tree Stone, is owned by a man who describes himself as sort of a gypsy.  After owning bakeries in Japan for seventeen years, he sold them to move to Edmonton and start a new business.  it is a welcomed addition to the starved food scene in Edmonton.

Edmonton Property Report - November 29th, 2009

Canadian Climate Change Plans

World leaders have recently tried to downplay global warming at APEC conference in Singapore.  The downgraded the gravity of the matter.  Its absolutely absurd to not act on the problem immediately for major emitters such as the U.S.A., China, or Canada.  The gravity of the matter has the potential to tear apart a country both socially and politically over the best solution.

If Canada is going to find a solution, the country is going to have to overcome the "me-first" society that exists.  All people must understand and accept as a plausible solution.  At this point, the absence of any plan has impeded any course of action because people have debated the importance of trying to prevent the effects of carbon emissions.  People know that the world must take action to prevent extreme damage to the planet.

There is a plan to follow in order to come up with a solution.  The plan devised at the conference only calls for Canada to cut its GDP by 0.1%.  It is good that the country has found a plan to help solve the problem and only have to cut 0.1% of its GDP.  But the plan is drastic, and it will not be accepted by everyone.  It would absolutely alter the current Canadian economy.  The plan, if implemented, will cause financial hardships on many areas.

The plan calls for a national cap-and-trade on carbon emissions to be implemented by 2011.  The plan calls for a price to be set on carbon, as high as $100 a tonne.  The plan is bigger than the U.S. proposal.  The plan calls for a tax, between $20-30 a tonne, and the money delivered from the tax would give the government the funds to green the Canadian economy.
 

Edmonton Property Report - November 21st, 2009

As the way things look now, the police force in Edmonton will have to cut over 100 jobs is they cannot meet their budget demands.  The Council has instructed city departments to increase budget expenditures by no more than three percent.

Chief Mike Boyd has said that the budget target is impossible to meet without slashing jobs.  If the job cuts cause the policing levels to fall below provincial requirements for policing grants, more than 100 more positions will have to terminated.  Losing 200 officers would be a huge blow to the quality of service that the department will be able to provide.

On the other side of the argument, people claim that the police chief is simply using fear tactics to get his way.  The job cuts will not be that drastic.  Its just absurd to think that the Council is going to allow over 200 officers to disappear.  It will not happen.

If the council needs the police department’s requested budget, a 5% property tax hike will jump to 6.5%.

Edmonton Property Report - November 16th, 2009

Advice for First-Time Home Buyers

Making the move from renting an apartment or home to purchasing your first home can be a harrowing experience – especially if you are a first time homeowner. Deciphering the various loan types and figuring out which agency does what can leave you feeling like you’re trying to break some top-secret code. For me, just dealing with the seemingly endless array of terms used by real estate professionals was a daily excursion into realms of confusion the likes of which I had never before experienced.

Because of my experience, I know how important it is that first-time home buyers have access to the best advice they can get before they wade into that final sales process. There is so much to learn in such a short period of time that getting some basic assistance to guide you through the process just makes good sense.

To begin with, did you know that the federal government is offering an $8,000 incentive – in the form of a tax credit – to anyone purchasing their first home? In addition, the government has also added a similar incentive, totalling $6,500, for anyone who currently owns a home and moves to a new house. These incentives are only good through April 30, 2010, however.

I advice anyone who asks about the tax credits to discuss them thoroughly with potential lenders and their real estate brokers. It’s always important to ensure that you actually qualify for these types of incentives before you get too far into the buying process. There’s nothing worse than miscalculating your resources and then finding out that your dream house is outside of your price range.

My second piece of advice is to keep your head out of the clouds. You may have heard that there are a tremendous amount of “steals” on the market today, because of the collapse of the recent housing bubble. Things are not always what they seem, however. In fact, in many regions of the country, certain areas of housing are actually seeing a rise in prices due to the decline in demand as the current economy forces people to put off their buying plans until their finances stabilize.

That is not to say that you cannot find a good deal; it may just take longer than you had expected.
When you do find a home that you’re interested in, be sure to bid at a reasonable level. If you bid too low, there is a real chance that the seller will not only refuse the bid but will be so insulted that he or she will shy away from dealing with you.

And don’t expect the lending process to be a walk in the park either. Your credit score has seldom been as important as it is right now – and even an excellent score may not guarantee you the loan you need. Your best bet is to work with a reputable real estate broker who can help you to navigate through the minefields of today’s home real estate market.
 

Edmonton Property Report - November 5th, 2009

Canadian Office Markets Skyrocket

According to a recent report that was released the office market in Canada has seen a steady growth over the past few months. This growth signals that the economy is moving in the right direction, and that things are on their way up. This will hopefully equal good news in the private sector. As many pointed out this is good news for all that are involved in the terms of spending. More places to spend money equals more money to spend. This is just how the cycle works.

According to many experts the rate that office space will be occupied is expected to hit an all time high in the next few months. There is some bad news, with the fact that the rate of vacancy is on a steady rise. Many in the industry attribute this to the fact that more space is being built than people can rent the office space.

While many agree that the recession is far from over, there are signs that the worst may be behind us as many places are starting to make decisions as to who to rent the space to on a first come first serve basis. This is the best kind of news that the people in the Canadian office market could have hoped for.

While some of the numbers are not as positive towards the worst of the recession being over, many of the numbers tend to agree within a decent range. Many experts also have tended to go along with the numbers saying that this is a significant sign that things are turning around.

Take that just five years ago the Canadian office market was in a massive boom, then in 2007 the market just feel right out from under people. Over the past couple of quarters the Canadian office market has seen a rapid growth. These numbers are due in a large part to the fact that consumer confidence is beginning to return which in turn is allowing more business to open up.

One person a year ago would be interested in a property, now five people are interested in the same property and therefore it is turning into a game of early bird gets the worm. While these number are encouraging there are those experts that warn that at the moment the office market is not stable enough just yet to hold itself up just yet.

Others in the industry see it differently, these experts see the glass as being half empty and see that the office market will continue to see a rapid growth as the months and years continue to go by. In the end the only thing that people will be able to do is sit back and wait to see if the trend continues or not. In the meantime many in the industry are enjoying the fact that they are having the largest office boom in several months. This trend they hope will continue to grow.

 

Edmonton Property Report - October 27th, 2009

Buying US Property with the Canadian Dollar: Is it a loony idea?

In October of 2009, the Canadian dollar neared parity with its US counterpart, something it hasn’t done since 2007, and before that, the 1970s. This news has many Canucks eager to purchase US real estate, but experts are divided on the wisdom behind such an investment.

When the loonie hit parity in 2007, Canadians jumped into the US market, which has since crashed. Hindsight shows the better investment would have been keeping the Canadian currency. This is one illustration used by Philip McKernan, co-author of a Canadian guide to buying real estate in the US, to discourage fellow citizens from impulsively buying property in the US now that parity is again in sight. He argues that buying just to get a good deal is poor motivation, though admits that if buying US real estate was in the plans anyway, there are many factors in your favor, but research is essential.

Other experts disagree, arguing that the strength of the loonie combined with the abundance of foreclosures makes the ideal investing climate. It may be difficult to obtain mortgages in the US, but if one can buy in cash or finance through a Canadian bank, now is the time to invest.
 

Edmonton Property Report - October 19th, 2009

Canadian Housing Market In Surprising Recovery Nation Wide

The real estate market in Canada is continuing to recover and improve, as this past August saw well over 40,000 houses purchased and sold. These numbers show an impressive 18 1/2% rise from statistics recorded at the same time last year. While these levels are encouraging, many housing and financial professionals are warning that this type of performance may not continue, as housing-related costs continue to grow. Proof of these predictions is found when sales figures from July are compared to August. A sales dip of almost 250 units is recorded as 42,666 homes were bought and sold in July, and only 42,246 in August.

Economists are agreeing that Canada’s escape from a harsh recession is almost miraculous. Unfortunately, this fantastic growth in sales may not last as prices rise along with the resale activity figures. The Canadian average home price has already risen 5.3 to 11.3% compared to the average recorded last August, depending on location.

Canada’s housing market has shown itself to be tough and not one to falter when the rest of the world’s real-estate markets are failing. Despite August’s slight stumbling when it comes to sales growths, expect an excellent year for buying and selling homes.
 

Edmonton Property Report - October 8th, 2009

Edmonton Housing Market for September

Even though MLS housing sales fell 1.45% in September when compared with sales in 2008, realtors® are not all that concerned. It was still the third best September ever for the industry. Sales in the residential market for September topped out at 1,704. In the same period for 2008 the count was 1,729.

Things are seen to be just evening out from the very productive summer season. The ratio of inventory available to potential buyers has evened out. Prices also took a bit of a jump, up 1.4% from the August figures. A single family home had an average price of $371,947 and condos evened out at an average $245,546 per unit.

If one compares prices to 2008, the average condo prices were 2.7% less and the single family homes were 2.7% more. Prices for single family homes have actually increased by about $20,000, rebounding nicely from the price plunge that ended this past February.

Year to date sales for 2009 are up 5.3% over the same period for 2008. The number of houses in inventory has decreased, from 6,445 to 6,032 and the average length of time a property is on the market is now 44 days, compared to 48 in August. All of these factors in addition to the low interest mortgage rates have created a healthy market.
 

Edmonton Property Report - September 28th, 2009

National Housing Market Looking Good

The Canadian home market seems to have seen its ugliest times, a report says. Though the market has been hit hard through the last couple of years, the report is forecasting improvement for the housing market in the final fiscal quarter.

There were a total of eleven different markets taken into account, and more than six of them reporter an increase in home sales. Likewise, almost three fourths of the surveyed markets have seen home values rise above their 2008 standards. The increase in sales can likely be tied to the lower mortgage rates and the decrease in home prices, according to Re/Max.

Among the highest rising markets was Vancouver, which saw its home sales boosted by 14% in the last eight months. Victoria saw a more than 7% increase, while Edmonton and Regina saw more modest boosts. Ottawa was much more static, but that was to be excited given the city’s ability to withstand the original financial downturn. Still, they have seen a slight increase in sales, as well.

At current standing, the average price of a Canadian home is $312,585, a price that represents a half point increase over the last eight months. Among the highest risers was St. Johns, where homes have risen all the way above $200,000. That represents a jump of more than 18%.

Edmonton Property Report - September 19th, 2009

Housing study favorable for Alberta developers

Desjardins Bank analyst Jeff Roberts has reported that a housing forecast just released by Canada Mortgage and Housing Corp. (CMHC) is favorable for developers constructing single-family homes in Alberta’s metropolitan areas. Mr. Roberts reported that based on significantly improved housing affordability and stronger lot sales in major Alberta cities, Desjardins believes two land developers concentrating on Alberta – Melcor Developments Ltd. and Genesis Land Development Corp. – are good buys.

CMHC is now predicting the construction of 3,000 single-family homes in Calgary by year’s end and 4,000 in 2010. This reflects a 33% jump over a forecast from last quarter. Edmonton single-family home construction is similarly expected to exceed recent expectations. Mr. Roberts added that lot sales for both Melcor Developments and Genesis Land Development have gained strength in recent months. He expects the trend to continue as the housing market rebounds.

As for apartment rentals, Mr. Roberts reported no major alterations in the CMHC forecast. He predicted that the generally robust Alberta economy would help keep realty investors in the black.
 

Edmonton Property Report - September 11th, 2009

New School Strategies for the Swine Flu

School officials in the Elk Island School District hope that new prevention strategies will help end the spread of the H1N1 virus. Students are being asked to physically distance themselves from other students, especially if they show any signs of illness.

In addition to encouraging hand-washing and covering sneezes and coughs, some of the new prevention strategies being used are dissuading hand-holding, hugging, sharing personal products and other close contact with students. Teachers have been asked, where possible, to keep the desks an arms length away from each other.

Critics of the new strategies believe that they could induce panic rather than prevention, but District officials don’t want to take any chances. 20 students were among the 47 confirmed cases of the swine flu in Edmonton this year.

North American health officials are trying to prepare for a second outbreak of the H1N1 flu virus. Even though there have been only 127 confirmed cases this year with seven deaths, the Public Health Agency of Canada projects that up to 138,000 people across the country will have to be hospitalized. They also believe that tens of thousands of those sickened by the swine flu could die.
 

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