INNISFAIL – With developers unwilling to build new homes to boost the town’s housing inventory, the town has decided to become ‘innovative and creative’ by investing $1.3 million to have four homes constructed on town-owned lots it has not been able to unload for a decade.
“We need housing. To me this is an investment and we will get a return on that money,” said Town of Innisfail Mayor Jean Barclay. “We need to continue to think creatively to get housing moving in this community because we are in dire need of it.
“I would say the mindset of this council has been that if a builder or developer does not want to move things forward then sometimes you need to take that first step and start doing that."
During town council’s regular meeting on March 14, council members unanimously approved an administration recommendation to enter into construction contracts with Red Deer builders True-Line Homes and Abbey Platinum to have each company construct two single-detached homes in the Hazelwood Estates subdivision.
The plan for the two houses being built by Abbey Platinum is to list them for an estimated price of $430,000, while the pair from True-Line Homes will list for an estimated price of $480,000. Construction is expected to start in April.
“There is definitely a market there for these houses,” said Barclay. “There is a lot of economic activity in Innisfail for people who want to move here but we don’t have the inventory.”
Meghan Jenkins, the town’s director of community services, told council in her report that the estimated total $1,315,000 construction cost for all four homes will be funded from the 2022 Operating Budget.
Council was also told that if the homes are not sold prior to the end of the 2022 fiscal year, funds will be transferred from the Land Acquisition Reserve.
In her report, Jenkins said the town has heard from builders and developers that many buyers do not want to pursue the process and time to construct new homes and prefer quick possession available products.
Last January, council was told during a realtor presentation that local and regional real estate markets are currently at a “crossroads” with active listings, which are now down substantially in Central Alberta.
As well, council heard some builders were not even going forward with spec homes this year in any Central Alberta communities.
Barclay said town administration has advised council that houses for sale in Innisfail have been trending downwards, with numbers now sitting at around 30, which she added was “extremely low.’
She said the town’s current initiative is being launched to take advantage of the hot real estate market by making a big investment in a partnership with builders.
“We have to be innovative and creative and we need to start pushing this ourselves if someone else isn’t going to do it,” said Barclay, adding the town has been in development business before in the Upland Aspen and Napoleon Meadows sub-divisions but not necessarily partnering or joint venturing.
“We have chosen to go this route and we are comfortable with the partners that have come forward and it’s a collaborative venture and we’re looking forward to getting those houses built on those lots.”
