A downward spiral in construction activity in Red Deer reversed decisively last year, with the value of building permits approved by the city jumping nearly 50 per cent from 2010.
Red Deer’s Inspections and Licensing Department confirmed on Monday that it authorized $169.7 million worth of projects in 2011, up from $113.7 million.
The city hadn’t seen a year-over-year increase in construction values since 2007, when a record $421 million in work was approved. The ensuing economic downturn dragged Red Deer’s permit values down to $258.4 million in 2008 and $141 million in 2009.
Last year’s numbers were up in every category. Industrial projects generated $54.2 million in work, as compared with $23.4 million in 2010; commercial construction accounted for $21.5 million, an improvement from $9.8 million; permits in the public category contributed $20.3 million, up from $12.1 million; and residential work produced $73.8 million worth of permits, versus $68.3 million in 2010.
Some of the bigger approvals last year included the addition to the cancer centre at the Red Deer Regional Hospital Centre ($16.5 million), the Elements@Rivers Edge residential and commercial complex ($10.7 million), renovations to the south Red Deer Walmart store ($5 million), Skyway Professional Centre ($4.7 million) and renovations to Real Canadian Superstore ($4 million).
Erin Stuart, permits and licensing supervisor with the city, expressed optimism that her department will remain busy in 2012.
“We are certainly thinking positively and hoping that we see the same sorts of numbers — or an increase in them.”
Stuart pointed out that new residential neighbourhoods are being developed and school construction is expected to begin next year.
Representatives of local construction associations are also going into 2012 with expectations of another good year.
“All indicators are showing signs of looking up,” said Steve Bontje, past-president of the Central Alberta branch of the Canadian Home Builders Association.
He pointed to increased local employment — driven by a busy oilpatch, a migration of people to Central Alberta, the inventory of homes on the used market declining, and continued low interest rates and construction costs as factors pushing people into new home ownership.
“We’re certainly seeing that traffic in our showhomes,” said Bontje, who is marketing manager with Laebon Homes.
Josh Edwards, first vice-president with the Red Deer Construction Association, said his organization is seeing increased activity when it comes to commercial and industrial projects.
“Things look very promising moving into 2012,” said Edwards, who is business development manager with Scott Builders.
The improved construction numbers in Red Deer did not spill over to Lacombe or Sylvan Lake.
The City of Lacombe finished 2011 with $31.6 million in building permits, down from $33.8 million the previous year. Residential construction accounted for $24.1 million of last year’s total, as compared with $28.3 million in 2010. Commercial/industrial permits added $7.1 million, up from $4.1 million; public projects generated $211,000, down from $1.4 million; and value of permit for other work was up slightly, at $123,000.
Sylvan Lake approved $39.6 million in construction last year, down 16 per cent from the $47.4 million worth of permits issued by the town in 2010. Residential work made up $31.2 million of the 2011 total, as compared with $22.1 million the previous year; the value of commercial projects slipped to $7.3 million from $15.9 million; industrial permits totalled just $245,000, versus $8.2 million in 2010; and institutional and other work added $1.8 million, an improvement from $1.1 million.
For the final month of 2011, the City of Red Deer issued $9.4 million worth of permits, including $6.2 million for industrial projects, $2.5 million for residential work, $652,000 in the commercial category, and a $15,000 permit under the public heading. That compares with $4.8 million in December 2010, when industrial permit values totalled $110,000, residential was $4 million, commercial came in at $485,000 and public was $205,000.
hrichards@www.reddeeradvocate.com