Kamloops First Quarter of 2015 Economic Update
Millions have been earmarked for Kamloops, and shovels are in the ground! Check out this list of $148M(!!!!!) spent and earmarked so far in 2015.
Feb 26 – $700K – City could get $700K if pipeline project proceeds
Should Kinder Morgan’s proposed expansion of the Trans Mountain pipeline come to fruition, the city of Kamloops stands to gain up to $700,000 in community funding, under a memorandum of understanding signed with the company yesterday (Feb. 26).
The current construction of the new clinical services building is just the first phase of the Royal Inland Hospital expansion. By 2020 a new hospital tower will be completed, bringing total government expenditure to at RIH to $400 million!
March 5 – $30M Kamloops February Construction Boom
$30M in commercial and residential construction so far in 2015, compared to just $11M at this time last year.
TCC brought in $13M in 2014, expected to do the same or better in 2015. Kamloops is known as the tournament capital of Canada and this reputation has contributed to a significant jump in tourism in the fall of 2014. The city plays often plays host to prominent city-wide events that directly affect accommodation tax revenues, which is the measure of the tourism industry.
March 4 – $150K A New Early Years Centre Coming to Kamloops
Kamloops will be one of 14 communities who will enjoy a new BC Early Years Centre. The government recognized Kamloops residents are having lots of babies and $50K/yr has been committed for the next 3 years. The Early Years Centre will connect parents of children ages zero to six with the services they need.
541 rental units needed now, per year, for the next five years according to a new study. That is over 2700 rental units needed, or using a conservative $175K/door an investment of $473M needed. There is demand, are you going to provide it?
March 6 – Birth Chimes Twice Day on Average
New alarm at RIH for when a new baby is born(about 850/yr) helps others in the hospital with grief and chronic pain. Very cool story and another reason Kamloops is unique, you won’t find this concept in many other places.
March 9 – $3.6M New Casino Needs Upgraded Road
The Gateway Casino in Kamloops new location means hundreds of construction and over 100 new full time jobs, and as a bonus to Kamloops residents, a $3.6M road upgrade. Costs will be shared by the Casino, a new Sandman hotel that was just completed, and a brand new 213 room hotel that will be built by Northland Properties. This development is great for the residents of Pineview Valley, one of the neighborhoods I invest in.
Overlander Bridge in one of many transportation improvement projects this summer. Another is $2M for the widening of Columbia Street. With population growth spurring the need for a new hospital expansion, the city knows the flow of traffic needs to be updated to remain safe and efficient. Tranquille Rd is another example, and I am happy because I have investment property on both these streets.
A study of Delaware County, Ohio showed that a gravel open pit mine in the mid 1990s caused a reduction in real estate values of 30% beside the mine, and 5% three miles out.
Interesting newspaper piece? Sure.
Cause for concern about Ajax doing the same in Kamloops? Not likely.
This is a classic apples to oranges comparison: Delaware County has 174K people and an average house price of $135K. Kamloops is 90K people with average of $350K house price. The Delaware County gravel mine created an insignificant number of jobs(this one only created 2), Ajax will create thousands. Ajax is being moved further away than three miles so even this weak premise is defeated before it starts.
My house(very close to the proposed mine) went up 9% since 2010, about 2%/yr. We just had an appraisal/ refinance to pull out more money to invest.
As Professor Sean McGUINNESS himself said, “What is known about open pit mines and real estate values? Actually very little is known that I could find.”
What is known is that in a community that already needs over 500 rental units/yr for the next 5 years, any increase in employment/population will cause an increased demand on housing and higher prices.
My prediction: Ajax mine will hit property values in one direction.
March 13 – 165K Province gives grant funding
Six organizations in Kamloops will be sharing nearly $165,000. “From supporting youth development to providing resources for local women, these groups play an essential part in enriching and strengthening our community,” says Kamloops-South Thompson MLA Todd Stone. “They are a source of pride and make Kamloops an even better place to live.”
March 13 – $7.4M Kamloops MLAs Officially Open NorKam Trades Centre
This centre allows for 100 student spaces each year, which will give students from 10 secondary schools in the district the opportunity to learn new skills and trades while still in high school.
Sagebrush may soon be growing where tailings now sit in the remains of a former mine. The project, being done in conjunction with KGHM Ajax,— which owns the land — could have far-reaching impact, [TRU Professor Lauchlan] Fraser said, as he and his colleagues and students turn their attention to other areas that need reclamation. “That’s our purpose, to solve these industrial issues,” Fraser said.
A balanced article.
Interesting to see how the neighborhoods expanded. Also see this: VIDEO: What Kamloops looked like in the 1950s
Aberdeen is still selling out, despite being the closest neighborhood to the mine.
Further headlines about a housing boom. Buy your investments now before the masses flood the market!
Kamloops airport anticipates that it will continue to grow and develop into a regional transportation hub for cargo and domestic travel.
April 3 – Anti-Ajaxers using bad data to polarize
Bad data makes good headlines and facts can be twisted.
Thompson Rivers University now allows engineering students to complete 2nd year in Kamloops. More options, more students, a forthcoming school of engineering, and more demand for housing. It’s nice to be in a growth industry!
Until next time,