There is a feel good mood in town

After being pummelled by the recession in 2010, Innisfail's upbeat economic performance last year is pointing to renewed prosperity in 2012 and beyond.

Last year the town saw a 15% increase in development permits from $10.3 million in 2010 to $15.2 in 2011 ó a sign, some hope things are beginning to move forward.

"Ö I'm really quite optimistic for 2012 and 2013 going forward," said Coun. Mark Kembell. "It just (seems) people are feeling more positive about the economy and that's really good. That's where it all starts."

The total value of permits is significantly lower from the heydays of the boom ó with the years 2005 to 2007 collecting between $20.3 and $53.3 million in permits but, numbers are up and now on par with the years preceding the boom.

"Part of the numbers for the building permits are a little inflated because the fire hall (for example), that's our own money we're spending, but we've got a ton of local trades working there so it all spins off," said Kembell of the work local projects generate.

Institutional permits saw a spike from $45,000 in 2010 to $5.6 million in 2011. Elwin Wiens, development officer for the town, said the new fire department and public works building accounts for about $3 million between the two, with the remainder going towards hospital upgrades and renovations on the RCMP office.

In the meantime, the industrial sector also showed promising signs of growth with permits values increasing from $46,000 to $2.5 million.

"Ö the oil patch is strong and there's a growing demand for industrial land and industrial businesses are experiencing growth," said Wiens who explained industrial permits returned to average levels in 2011.

In 2011 there was an increase of residential home permits with 18 new housing starts in Innisfail. That's three more than 2010, with a value increase of $2.6 million, from $2.1 million to $4.7 million. Residential apartments though dropped, from three to one. Wiens said in 2010 one 24-unit apartment building was created, where in 2011, only a four-plex was built.

Canada Mortgage and Housing Corporation (CMHC) predicts that will change in 2012 however, explained Dan Ouwehand, president of Canadian Home Builders Association for Central Alberta. He said CMHC is predicting 14% growth for multi-family homes for Central Alberta and a 10% growth for single-family homes.

"We've seen an increase in the oil patch and the rebuilding in Sylvan Lake is bringing in more workers to Alberta," said Ouwehand, adding building permits for new homes and residential apartments were up in 2011 compared to 2010.

He said many older homes were on the market and not budging. Now, they're starting to sell bringing the inventory down and people are starting to look at new homes.

"The rubber is hitting the road again," he said.

Steve Bonjte, chief operating officer for Laebon Homes which is developing the Madison Park subdivision in town, said 2012 looks extremely hopeful.

"We're certainly seeing an up kick in lots of economic indicators around town and you see the oil field industry is busy and retail sales are up and those are important indicators for us that people are getting comfortable again." He said there's been an increase in traffic through the company's show homes.

"There's more interest from people that were maybe more hesitant over the last year but are getting ready to move forward and take the step to purchase a new home."

The one thing Owehand cautions, however, is the possibility of a labour shortage as Alberta moves back into a year of growth.

A report released by TD Economics on Jan. 4 predicts Alberta will lead the country in economic growth by 2.6% this year.

"Economic growth in Alberta is expected to run ahead of all others in 2012, at 2.6 per cent. Alberta's current momentum both underscores solid business confidence and solid domestic spending, with estimated retail sales in 2011 growing twice as fast (+6.7 per cent) as they did at the national level (+3.3 per cent)," the report reads.

And by the end of November last year, Alberta had the lowest unemployment rate in Canada at 5%.

Ruby Curran, employment specialist for Red Deer Works, said this should prove to be a good year for people currently looking for work.

"This looks to be a very promising year," said Curran. She said some recruitment firms in Calgary are predicting this could be the year of employees, with more jobs available than workers.

Currently there are 134 jobs available in Innisfail, said Curran, who tallied jobs available from December to Jan. 4. This is an increase from stats complied in July when 113 jobs were available but a decrease from September's 155.

The majority of jobs available in Innisfail last month were for metal manufacturing, trades and skills and health care.