INNISFAIL – While just released building permit values for 2017 show Penhold making a strong economic recovery from the recent recession, Innisfail figures have drastically slumped.
The town recorded a value of just under $4.6 million for 2017, less than one-third of Penhold’s total of $15.2 million, and about one-quarter of Innisfail’s total of just over $18.5 million for 2016. Innisfail’s total figure for 2017 is the lowest since at least 2012, the earliest year of building permit statistics released this month by the town.
However, a great chunk of the 2016 total for Innisfail -- $8.4 million – was for the ongoing modernization project at the Innisfail Schools Campus. That figure for institutional development dropped to $92,800 for 2017.
The hardest hit area for the town reflected in the final 2017 figures was residential development. Last year the town recorded $785,500 worth of permits for low density residential, a huge drop from $4,661,792 in 2016. In 2017, the town recorded zero activity and permit values for multi-unit residential development, compared to $2 million the year before.
However, there was at least one bright spot for the town. The building permit value for garages, decks and renovations was $812,134, more than two and a half times that of 2016 and the highest since at least 2012. Commercial development, which included figures for the new downtown mall, expanded Co-op gas bar and new Innisfail Medical Clinic, recorded a respectable permit value of $2,362,689, compared to just over $3 million in 2016.
Industrial building permit values were also up. There were two permits issued last year with a value of $529,200, compared to four permits in 2016 valued at $121,500.
But it was the overall slumping performance of residential development for last year that defined the 2017 report and clearly concerned Mayor Jim Romane, who earlier this month led the charge on council to develop a housing strategy for the community, an initiative underscoring the need to build more affordable options for low- and middle-income earners.
"They are disappointing as hell. There is no doubt. It’s tough to wave a magic wand and change it in a heartbeat. We have got to turn things around in the next year or two,” said Romane, adding administration is making contacts with residential developers. "We are working with contacts with the developers to get this residential thing cooking again. Like we said before, it is a case that we have to go to developers who are willing to do something on lots, and maybe we have to get back on this development business ourselves.”
However, Romane was careful to emphasize he was not putting any blame or onus on the development industry, only pointing out the need to encourage, direct and even "influence” those that have land to reopen the marketplace in town.
Todd Becker, the town’s chief administrative officer, said in response to the 2017 building permit report that the town needs to look within its own operations to make sure it’s not having a "detrimental” impact on enhancing economic development in the community.
"Economics beyond our boundaries is what it is,” said Becker, aware of the more favourable building permit report in neighbouring Penhold. "If there are municipalities that are developing and building and our community is not, then obviously there is a little bit more to it and we need to understand what that is.”
He said that process has already started at town hall with administration going through its current systems and operations to make sure the town will be able to move forward to resolve priority issues, such as residential development.
"Council is doing it from their perspective (from) the review of their strategic plan,” said Becker.
He said a draft strategic plan that will outline council priorities for the community in 2018 and beyond should be ready for public review in early February.
Mayor Jim Romane
"They are disappointing as hell. There is no doubt. It's tough to wave a magic wand and change it in a heartbeat. We have got to turn things around in the next year or two."
