News of the Red Deer Region - December 1 to 15, 2006

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NEWS of the Red Deer Region - December 1-15, 2006

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News of the Red Deer Region
snippets and summaries of news reports from local media (primarily Red Deer Advocate and Red Deer Express).
December 2006 Part 1

Dec. 15, 2006
Proposed Revised City Growth Strategy Includes Gasoline Alley
City administration will be presenting a revised 'Future Directions - Red Deer at 300,000' growth strategy to City Council to consider on Monday. Since the original 'report' released in September, the city has conducted surveys and held open information meetings to get feedback from both city and county residents and stakeholders. The revised plan is partly a result of that process. A major change from the original report is the inclusion of Gasoline Alley as an area to annex within the next ten years. The strategy as a whole will increase the city's jurisdiction on all sides, incorporating 80-90% of the county's commercial and industrial tax base. Administration added the area because they were concerned about the increasing urbanization by the county around the fringe of the city. The county sees the revised strategy as a tax grab. If adopted by City Council, it could set the stage for further conflict between the two municipalities.
12-Storey Office Building Proposed for the City Centre
A $28 million, 12-storey office building called Executive Place is being proposed at the corner of Ross St. and 49 Ave. in downtown Red Deer on the site of the former CIBC branch. Demolition of the old building is expected to start in the spring with construction soon after and ready for occupancy by the fall of 2008. The 7,100 sq. ft. main floor would contain office space, the second floor a combination of commercial and office space. Total leaseable space would be about 100,000 sq. ft.
City's Residential Rental Vacancy Rate at 0.5%
Canada Housing and Mortgage Corporation is reporting that, for October, Red Deer's rental vacancy is at 0.5%, primarily one and two bedroom suites, compared to an overall 1.0% vacancy rate one year ago. Average rents for one bedroom suites has jumped from $557 to $613 and for two bedroom, from $666 to $732 in the past year. Calgary's vacancy rate is about the same as Red Deer; Grande Prairie and Fort McMurray is less at 0.1% and Edmonton is higher at 1.2%. Red Deer's overall average rent is $682, still lower than the average rent for Fort McMurray ($1,604), Grande Prairie ($905), Calgary ($851) and Edmonton ($727).
Provincial Award Won by Rocky Historian
Pat McDonald, who has studied the history of Rocky Mountain House and the famous geographer David Thompson for nearly 50 years, has been presented an award for outstanding service in the promotion of Alberta's heritage and history by the Central Alberta chapter of the Alberta Historical Society. He published a 562-page book on Rocky's history, has a website dedicated to David Thompson, helped keep the national historic site at Rocky open and has given several lectures on the history of the fur trade in Western Canada.
Brain Injury Centre Honours Former Cabinet Minister
The Halvar Jonson Centre for Brain Injury in Ponoka has been named in honour of a former provincial cabinet minister and retired local MLA who worked for many years on the improvement to the Centennial Centre for Mental Health and Brain Injury, formerly called Alberta Hospital Ponoka.

Dec. 14, 2006
Chamber Hosts National Chamber Executive
The executive vice-president for policy of the Canadian Chamber of Commerce, Michael Murphy, was a guest of the Red Deer Chamber yesterday. At a luncheon presentation, he expressed some of his major concerns, including federal spending, taxation issues, the relationship with the U.S., the shortage of skilled labour and environmental protection. He met with the Board early in the morning and then conducted workshops for chamber volunteers prior to the luncheon covering a variety of topics including environment, transportation, taxation and labour.
Holiday Train Visits Area
The brightly-lit and festive Canadian Pacific Railway Holiday Train visited Red Deer Wednesday to help raise funds and food for the local food bank. CPR presented a cheque for $3,000 and several attendees donated food and cash. Entertainment included Wide Mouth Mason and Lisa Brokop. The train stopped at other communities including Lacombe and Ponoka.
Local Promoter Elected President of International Council
Pat Kennedy, manager of the annual Agri-Trade farm show, has been elected president for the next two years of the North American Farm Show Council, headquartered in Ohio. Agri-Trade is one of five Canadian shows represented on the 28-member council.

Dec. 12, 2006
Monumental Red Deer Capital Budget Approved
Several major capital projects worth a total of $600 million over the next 5 years was approved by Red Deer City Council yesterday, of which the city will have to borrow $300 million. It'll be the first time in 20 years that the city faces debt. All projects were determined to be vital for the city's continued growth. They include $115 million for the civic yards relocation, $50 million for water and wastewater treatment plant upgrades, $50 million for a new bridge and roadway, $23 million for a new police building, $8 million for a satellite police station, $11 for a regional pipeline, $16 million for G.H. Dawe Centre renovations, $31 million for city hall expansion and several smaller projects. A $17 million archives storage building and $13 million museum upgrade were tabled to explore other options and will be brought back to Council in January.
Sylvan Lake Approves 2007 Budget
The Town of Sylvan Lake has approved its municipal budget for 2007. The $21 million total budget, of which $13 is for operating expenses, includes road expansions, new RCMP officers, design for a new police building and new trails. Most taxpayers will not see their taxes increase.
Travelaire Still Growing After 40 Years
Travelaire Canada, a Red Deer-based recreational vehicle company, will be moving within the next couple of years into a new, modern manufacturing plant. It has already sold its current plant but is leasing it back until the move. In the meantime, the company is expanding its product line. About 40% of the plant's output is for industrial units, primarily for the oilpatch. They also specialize in recreational units designed for the Canadian climate. The normal job complement is 275 workers. The company started in Edmonton in 1963 and moved to Red Deer in 1966.

Dec. 9, 2006
Lacombe Considers Rail Relocation
Some Lacombe councillors are discussing the possibility of relocating the CPR rail line out of the centre of the town in light of a number of collisions between trains and vehicles. Highway 2A runs alongside the rail line making safe traffic control difficult. The issue was raised 20 years ago but deemed too expensive to proceed. The town has grown significantly since then with considerable residential and industrial development east of the tracks. The issue will be discussed by Council in the new year.
Multi-Family Housing Starts Up in Red Deer
Canada Mortgage and Housing Corporation is reporting that multiple family housing starts in the city during November were up from the previous two months as well as the same month in 2005. 38 units were started compared to 18 in October, 14 in September and 12 in November last year. Single family starts were 81 in November, up 4 from last year but down from the record 130 in September and 120 in October. Total number of housing starts year to date have already passed last year's with 1,311 from January to November. For all of 2005, 1,270 starts were recorded.
Housing Sales Up, Prices Moderate
The Red Deer and District Real Estate Board is reporting that house sales in November were up from the same month last year with 191 in the city and 177 outside the city compared to 162 and 153 last November. Although the average selling price was up 40% from November 2005, it was down 6% from October to $312,000 for a single detached home in the city.

Dec. 8, 2006
Red Deer Heritage and Culture Centre Postponed
The City of Red Deer has decided to put a proposed controversial $46 million heritage, arts and history centre on the back burner. Several other major capital projects are needed over the next few years requiring the city to go into debt. However, administration is suggesting to Council that a $17.2 million archives storage building be constructed in order to preserve valuable documents and artifacts that require strict climate control. The building could be connected to a future heritage and culture centre downtown. It is also suggested to renovate the existing aging museum at a cost of $13.3 million. Red Deer City Council will discuss the capital budget Monday.
Marina Proposed at North Sylvan Lake
A 234-slip $1 million marina is being proposed off the north shore of Sylvan Lake. Designed primarily for permanent yearly leases, it would be a pair of floating docks anchored to screws in the lake bottom. A public picnic area, parking, lighting and washrooms are part of the proposal but a public boat launch is not.
Blackfalds Annexation Moving Forward
Lacombe County has given second reading on an amendment to the intermunicipal development plan moving Blackfalds a step closer to annexing 960 acres. The amendment adds six quarter sections to the agreement. The annexation is expected to provide enough land for 30 years. If the current 8% growth rate continues, the town of 4,500 could reach 10,000 by 2015 and 24,000 by 2030. Council also agreed to terms of reference for a joint area structure plan between the County and the towns of Blackfalds and Lacombe.

Dec. 7, 2006
Multi-screen Cinema/Entertainment Complex Starts Construction
A 10-screen cinema and entertainment complex is set to start construction in Gasoline Alley south of Red Deer with piles already in the ground. The 2,000 seat, 43,000 sq. ft., $7.5-10 million complex is expected to be completed by next fall south of Costco and next to Sim's and Staples. Features include curved screens, stadium seating, high-back seats and digital sound. There will also be party rooms, an interactive games area and self-serve ticket machines. The 5.4 acre site may also include commercial tenants such as a restaurant.
Annexation Forum Raises Lots of Questions
As part of the process in applying to the provincial Municipal Government Board for annexation approval of eight quarter sections of land west of Highway 2 and south of Highway 11A for industrial development, the City held a public forum and information session Wednesday. The city is attempting to balance its tax base between residential and industrial growth within the city boundary. Due to unexpected rapid growth, the city has virtually run out of industrial land. Although most people agree that the need is there, the County and some residents are questioning the location and need for change of jurisdiction. A public hearing is expected in the spring.
Third Phase of Carbon Dioxide Recovery Program to Start Soon
A company that uses a process that captures carbon dioxide from petrochemical plants and then pipes it to oil wells will start construction of its third plant in the Joffre-Prentiss area in January. The first two plants were built earlier in the year. A purified and liquefied form of the gas is injected into old oil wells via an 80-km pipeline grid spanning nearby oilfields in Lacombe and Ponoka counties. The current facilities divert 220,000 tonnes of greenhouse gases per year from the atmosphere. The new plant will raise the capacity to 365,000 tonnes per year.
Innisfail Insulation Plant Marks Expansion
The Johns Manville insulation plant in Innisfail held its ribbon cutting ceremony Wednesday for the completion of a $36.2 million expansion for a new line of insulation that is more environmentally friendly and energy efficient. Construction took about one year to complete. The plant employs about 170 people.

Dec. 6, 2006
Province Rejects Red Deer Airport Extension For Now
A request for $1 million from the provincial government for extension of the runway at the Regional Airport Red Deer has been turned down. The airport wants to extend one of the runways from 1,675 to 2,100 ft. to allow larger passenger planes to land. The total cost of the project is $2.4 million of which the airport authority was going to borrow $1 million and donate land worth $400,000. The province suggested that the authority request funds from the federal government but officials indicated that federal funds are not available for runway extensions. They also hope that a new government with new priorities may rethink the request. The project is part of a $20 million long term capital upgrade of the airport.
Air Passenger Service to Saskatoon Commences
On December 1, Northwestern Air, based out of Fort Smith, NWT, commenced scheduled passenger service out of the Regional Airport Red Deer to Saskatoon with 15 passengers on its 19-passenger Jetstream 31 aircraft. The service is offered three days per week. On Mondays and Fridays, the service will extend to Meadow Lake and Fort McMurray with connections to Fort Smith and Yellowknife. On Wednesdays, the plane returns from Saskatoon the same morning.
Innisfail and County Agree on Intermunicipal Plan
The Town of Innisfail and Red Deer County have given final approval to an Intermunicipal Development Plan (IDP) that maps out the growth of the town for the next 100 years. The plan allows for the town of 7,400 to add another 43,000 people. Land to the northeast is slated for industrial development while the west and northwest is slated for residential. Short term annexation includes up to 10 quarter sections while future annexations will occur in stages. One of the features of the plan is that all development within the IDP area will be built to urban standard regardless of whether the town or county has jurisdiction. An area east of Highway 2 will be the study of a joint economic study to determine how that land will be used.
Hair Salon Chain Building Headquarters West of Highway
Red Deer based Chatters Canada hair salon chain is constructing their headquarters and distribution facility on three acres in the Burnt Lake Industrial Park west of Highway 2 in Red Deer County. The first phase will create 6,500 sq. ft. of office space and 13,000 sq. ft. of warehouse, expected to be complete next summer. The second phase will add 5,000 sq. ft. of office space and 26,000 sq. ft. of warehouse, expected to be complete in 2008.

Dec. 5, 2006
City Transit to Take Over Action Bus
Red Deer city council has decided to start the process of putting the action bus for the disabled under the control of City Transit as a result of rapid population growth and aging demographics. Final approval will come if costs are accepted in the 2007 operating budget. The service has been operated by the Red Deer Action Group for 30 years. Integration will occur by the time the Transit Department builds its new facility at Three Mile Bend as part of the civic yard relocation. Door to door service is expected to continue and efficiency is expected to increase with the installation of mapping software. The move was recommended in the 2004 Transit Study.

Dec. 4, 2006
Thousands Raised by Charity CheckStop
The city RCMP's charity CheckStop raised about $17,500 during a four-hour period Saturday afternoon to be split between the Red Deer Food Bank, Red Deer Christmas Bureau and MADD (Mothers Against Drunk Driving). In addition to the cash, the event also collected two vanloads of toys for the Christmas Bureau and about $2,000 worth of food for the Food Bank. A similar event last year raised $16,000.
Doubling Size of City Hall Examined
Four architectural firms have submitted concept models reflecting their vision and creativity for the proposed expansion of Red Deer's city hall. Administration started looking at options in 2004 when it became clear that the building was too small for an expanding staff. The city's Tax and Personnel Departments were moved to leased space downtown. Engineers believe 2 storeys could be added to the building. Another option is expanding into the park area.

Dec. 2, 2006
United Way Tops One Million So Far
Fundraising for the United Way of Central Alberta has exceeded one million dollars so far on its way to a goal of $1.6 million. The campaign officially ends Jan. 15. Last year's goal of $1.4 million was exceeded by $50,000. 43 agencies share in the funds.
Red Deer Building Permits Closing in on Record
A total of $26.4 million worth of building permits was issued by the city of Red Deer during November, of which $10.3 million was for industrial, $15.1 million for residential and $1 million for commercial. For the first eleven months of 2006, 2,816 residential permits were issued with a value of $167.4 million, compared to 2,239 permits in 2005 worth $137 million. Industrial permits are down this year by $4.6 million at $35.1 million. Total permits issued year to date are $243.4 million compared to $234.4 million for the same period last year. 2005 was a record year with a year-end tally of $254.1 million.

Dec. 1, 2006
Proposed Major Olds Shopping Centre Lining Up Tenants
Four major retail businesses are set to start construction next year on a quarter section on the west side of Olds near Highway 27. Wal-Mart, Canadian Tire, Sobeys and Leo's Building Supplies will occupy about half the 38 acres slated for major commercial development and will have a combined retail space of 200,000 sq. ft. Leo's could start building in January with space triple their current size. Another 40,000 to 100,000 sq. ft. could be developed. The area could also see some residential and light industrial development.

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