Workers in the northeast community of Terrace clean up around a new home that's being built this spring. Members of the local development community say that some projects will move ahead as planned during economic uncertainty caused by the COVID pandemic, but the fate of future projects is still to be determined.--News Photo Collin Gallant
cgallant@medicinehatnews.com@CollinGallant
The company behind a major land development in Medicine Hat says it is confidently moving forward with a subdivision that will be ready for builders this fall.
That’s even as the coronavirus pandemic makes operating more difficult and economic confidence is tested – a situation other major developers say will linger into the future and put some other projects into holding patterns.
Don Sandford, of Enclave Ventures, said deep infrastructure work will begin this week as servicing the new community in southwest Medicine Hat will allow contractors to takeover lots as scheduled later this summer.
“We believe that it’s a good time to show some leadership in getting people back to work,” Sandford told the News. “We’re not slowing down at all – expect to see houses coming up out of the ground in 2020.”
The project, announced one year ago, would eventually see more than 200 residential lots carved out of land overlooking the Seven Persons Coulee, west of Saamis Heights.
A 40-plus lot first phase is due ready for builders this fall. Most of those initial properties are pre-sold, and if buyers and an array of local homebuilders come to terms, the activity there alone could beat the entire inventory brought online across the city in a record-slow season of 2019.
That could be a lot to ask however, as consumer confidence is shaken and worry about long-term economic prospects grows this year.
Other major developers tell the News that they are evaluating major projects, but some are at a tipping point where construction needs to move ahead because a pause would lead to higher carrying costs.
“You’ll see those move forward in 2020, but certainly there are real headwinds for new projects,” said Curtis Presber, the head of Meadowlands Development Corp. “That will have lingering effects in 2021.”
His company continues to sell residential lots in the latest phase of Desert Blume estates in Cypress County, a higher-end community where projects could be more insulated from downturn in the day-to-day economy.
Two years ago Meadowlands began to bring new commercial land along the Black and White Trail in Medicine Hat’s deep southeast on the market, including a large parcel for a new hotel that is now nearly complete.
This summer, another six adjacent acres will be serviced and ready for new commercial development.
Two acres of that land is already sold, said Presber, but Meadowlands’ proposal to build a condominium tower near Lions Park is on hold as market conditions are examined.
Some other substantial building projects are also in the pre-sales phase – meaning developers are awaiting a certain percentage of sales before green-lighting work to ensure the project is economical.
Enclave is at that stage with its other major project in Medicine Hat, a medium density housing development off College Avenue called “Connaught Commons,” first proposed in the fall. Sandford said the company is confident it will seek a development permit this year for construction in 2021.
Generally, 2020 began on a positive note for the local construction sector, but that has slowed.
The city’s planning department has reported that although it’s seen higher than expected building permit applications during the COVID slowdown, they are still down from regular levels. As well, new development permits are notably lower, meaning new projects aren’t being proposed. Unless they rise, construction activity will eventually drop.
One substantial development permit was related to a new downtown hotel. That was approved in principle by city council for the “direct control” lot, though local developer Aaron Burghardt stated while the plan is advancing, his group is still evaluating the economic landscape.
Likewise the city’s sale of the Medicine Hat Arena – which similarly benefits from a city tax-abatement deal to cover demolition and redevelopment costs – is slated to become a medium density housing development by locally based development company, NewRock.
Officials there said projects are being advanced, but COVID pandemic and market conditions are being considered.
At Coulee Ridge, work will be done by local civil construction firm MJB to install sewer and water lines, a storm pond and other amenities, plus the paving of the main access road (a portion of 10th Avenue) from South Boundary could be completed this summer.
