The cumulative value of building permits issued by the City of Red Deer last year fell 45 per cent from the 2008 tally, which in turn was down 39 per cent from the figure for 2007.
The city’s Inspections and Licensing Department reported on Tuesday that it approved $141.2 million worth of construction in 2009, down from $258.4 million in 2008 and a record $421 million in 2007. The 2009 total was spread over 1,767 permits, as compared with 2,005 permits in 2008 and 3,068 in 2007.
Residential projects accounted for $81.5 million of the 2009 permit values, with public work adding $31.3 million, commercial construction $23.8 million and industrial permits $4.7 million. In 2008, residential work generated $99.2 million worth of permits, public projects $101.4 million, commercial construction $43.7 million and industrial work $14.2 million.
In 2007, there were $189.7 million worth of permits issued in the residential category, $103.6 million for industrial work, $57.8 million for commercial and $70 million for public. But that year was highlighted by several multimillion-dollar projects, including the $70-million civic yards relocation, the $38-million Red Deer College expansion and $27-million Executive Place office building.
A news release issued by the city noted that activity in the Inspections and Licensing Department increased in the second half of 2009, with the value of residential permits issued from July to December $13.1 million higher than for the same period in 2008.
“Certainly in the housing market it really started to turn around in the second half,” said Paul Meyette, Red Deer’s Inspections and Licensing Department manager.
“I’d say that is a good omen for the future.
“It’s reflective of consumer confidence.”
While that confidence could spill over into the other construction categories in 2010, Meyette doesn’t expect investment in public projects to rebound until the economy recovers. He explained that reduced provincial spending will likely impact this work.
But some sizeable permits are still anticipated in 2010.
“We do have quite a few big projects that are in the planning stages, “ said Meyette, pointing to the Skyway Professional Centre proposed for north of the Red Deer Regional Hospital Centre and pending expansion of the Central Alberta Cancer Centre as examples.
“With the recovering economy, hopefully we’ll see some take-up on the industrial lots on the west side of the highway,” he added.
The pace of construction in 2009 looks particularly sluggish when stacked up against that of the two preceding years, noted Meyette.
“People always look at those record years as comparisons.”
However, as recently as 2004 the value of permits issued by the city was lower than it was in 2009.
Last year ended with $7.1 million worth of permits issued in December, off from $8.5 million a year earlier. Residential approvals accounted for $3.3 million of the December 2009 total, down slightly from $3.2 million in December 2008; commercial permits reached $3.6 million, slipping from $3.9 million; the value of industrial approvals was $37,000, as compared with $1.3 million; and there was one public permit worth $160,000, up from $65,000.
Among the bigger permits issued last month was one for renovations to and expansion of the former Rancher’s Valley Inn downtown, with this project valued at $2.75 million.
hrichards@www.reddeeradvocate.com