December 13th, 2024

Building permits expected to catch up as year continues

By Collin Gallant on August 24, 2018.

While building permits in Medicine Hat are lower for the year to date than this time 2017, officials are predicting 2018 will end up a good year once larger projects begin this fall.--NEWS FILE PHOTO

Medicine Hat News

Buildings permits in Medicine Hat are tracking lower to this point of the year, but administrators expect an above average year when a glut of major projects move ahead this autumn.

That’s mainly on the commercial and industrial construction however, as it appears new home construction is mired in a two-year slump.

“There are a number of significant projects that are coming,” city general manager of planning Kent Snyder told Wednesday’s planning commission meeting where second-quarter figures were presented.

“We have a lag in development permits that we know will become building permits. We anticipate that we’ll be well over last year.”

Specifically, the Aurora Cannabis production facility’s site grading is counted in the second quarter of the year, but work on the structure, estimated at $130 million, isn’t yet reflected.

Similarly, a new seniors’ living facility could receive a development permit soon, with owners hoping to commence work before freeze-up.

Specific to July, just under $14 million in projects were issued building permits, compared to $6.9 million in July 2017, the largest being two new commercial building approvals totalling $10 million.

Overall through seven months, 469 permits were estimated to be worth a total of $69.9 million. That’s 37 more than at the same point last year, but worth about $20.3 million less, owing to major commercial renovations and school construction begun last year.

For 2018, new commercial construction is up about 30 per cent over last year’s notable total of $14.3 million, and as well, a 167-unit apartment block adds $10 million.

Construction for single family homes is lagging behind last year’s slow pace.

At July 31, permits for just 27 new home projects had been approved, down from 35 at the seven-month mark in 2017. Both numbers are only half to one-third as many as shown in the month before 2016.

“There seems to be a lot going on but I’m flabbergasted that residential is so low,” said commission chair, Coun. Brian Varga.

Duplex construction was also down, though townhouse intentions were up, as are residential renovation permits.

Garage permits were steady.

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