Construction is underway on six houses at the Coulee Ridge land development in southeast Medicine Hat.--News Photo Collin Gallant
cgallant@medicinehatnews.com@CollinGallant
A major developer in Medicine Hat expects a surprisingly stable 2020 for home construction to continue to lift in 2021.
Don Sanford, of Enclave Ventures, has said the local market performed remarkably well last year – when early uncertainty gave way to positive momentum by year end.
He said Thursday activity is building, with six house projects underway at the Coulee Ridge development in the city’s southeast and eight more basements set to be dug in April.
“With the interest that we’ve seen, we’ve been able to sell through to the owners,” he said. “We’ have very few homes here without an owner, and very few built on spec (by builders).”
It’s common for construction companies to launch some projects, essentially as show homes, without a contract buyer in hopes of meeting demand down the road.
Those sorts of starts dried up in recent years however, though didn’t completely disappear as firms put greater control on upfront capital in a downbeat local economy.
That said, Coulee Ridge will be the focus of the 2021 Parade of Homes, featuring the work of local Canadian Homebuilders members, beginning in early September.
Before then however, the road into the phase (10th Avenue from S. Boundary Road) will be paved, potentially by mid-June, and work could begin in the early summer on the first of two ponds in the community billed as both a lake and view community.
The lift station servicing the site will be completed, allowing for home occupation in the subdivision, and site fencing around the amenities (coulee and pond) will be erected.
“People will be able to drive right up the streets and view the development on a public road,” said Sandford.
Sandford has said a shortage in existing new home inventory has increased interest in Coulee Ridge and that’s been pushed further along by low interest rates and an appetite to customize houses, whetted during work-from-home orders.
The 2020 construction season across Medicine Hat produced a mixed result.
Home starts actually increased despite early fears that the pandemic and economic uncertainty might send activity down to a flatline. However, 35 new home starts in 2020 was only an increase from the historic low of 20 new homes built in 2019.
Officials with construction industry groups told the News in February that much of what was lost in new projects last year was made up on smaller jobs, but the entire sector is hoping and planning for a busier 2021.
City grants hot item
A new grant program to spur construction activity in several development sectors opened this week to a strong amount of interest.
Last month, council approved an incentive package totalling $5.2 million over two years, including $10,000 for each of the first 40 new home starts anywhere in Medicine Hat, among grants for commercial and infill development, and downtown residential property.
The program opened for applications Wednesday with 13 proposals submitted, according to officials, and another eight completed submissions were expected by the end of day No. 2.
“The uptake has been phenomenal,” said Eric Van Enk, of the Invest Medicine Hat office. “It’s been a huge focus for us and we’re getting a lot of interest.”
The new home start program pays out when builders finish foundations. Other applications can pay between $10,000 to $25,000 per door in existing areas and downtown for adding more residential units or commercial improvements.
A separate program to allow tax abatement on larger commercial and industrial projects is the largest financial program.
Van Enk said most of the early applications involve relatively common projects, like new home starts, compared to more complex projects, like mixed use or commercial development.
“We are seeing (some) projects related to the downtown that are significant,” he told the news. “That aligns very well with council’s priorities.”
