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Development permits show mixed economic activity

Development and building permits released last week show 2010 was a year of mixed blessings for Sturgeon County, with more permits being issued but for much smaller projects.

Development and building permits released last week show 2010 was a year of mixed blessings for Sturgeon County, with more permits being issued but for much smaller projects.

New housing starts were the exception to the rule with a total of 175 new houses being built in 2010 compared to 132 in 2009.

The price of those houses is also on the rise — the average price of a new house in 2010 was $390,285 compared to $374,240 the year before.

County planning and development manager Collin Steffes said those numbers really caught him off guard and weren’t what he expected given the economic climate.

“I have to be honest — I didn’t expect to see an increase in the housing starts,” he said. “I can’t really place my finger on what the rationale is.”

The numbers were presented to council last week and showed overall the county saw 599 development permits processed last year with an average value of $161,100 and a total value of $96.5 million.

In 2009, the county saw fewer permits with 506 but with a much higher value at nearly $183 million.

Industrial, commercial and institutional activity in the county was the primary drop-off with much less activity in those sectors.

Steffes said the drop-off in industrial development permits probably takes into account a number of factors, including some cautious optimism about the industrial heartland.

“I think everybody is waiting with baited breath for some surety on the [Bitumen Royalty in Kind] decision and the North West upgrader.”

He said the county’s development department is ready for that upgrader and their work is largely ready to go.

“We are in a very good position when they receive approval to basically hit the ground running.”

Steffes said so far in 2011 there has been interest in industrial development in Sturgeon, but most developers are taking a cautious approach.

“We have a lot of feelers on the industrial side, but I think everyone is waiting for a bit more surety before they come in with their application.

Building permits also showed a similar trend with 329 permits valued at $21.3 million being issued in 2009 and 335 permits valued at $14.6 million issued in 2010.

In the case of building permits however, the commercial and industrial numbers are moving in the opposite direction with more activity and more value in 2010.

Steffes said many of the industrial projects that received development approval in 2009 when the county had a lot of interest were probably built in 2010.




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