oil and gas industry’s arguments also seemed “very reasonable
in many ways.”
“Somewhere, we’re going to have to sort out what the truth of
the situation is,” he said.
In hindsight, it seems the scales have tipped in favour of the
industry’s arguments.
In a follow-up call, Mayor Logan says he is concerned for two
of Grande Prairie’s four economic pillars (consisting of forestry, oil
and gas, agriculture, and services).
“Forestry is down and the energy sector seems to be sending
mixed signals,” he says. “Given the snowstorms on the east coast
of Canada and United States, you’d think natural gas prices would
have moved, but they haven’t and that’s a little troubling.”
But even more troubling for the mayor is the forestry sector.
The sub-prime collapse in the United States and its impact on the
housing market there has hurt Grande Prairie. While two plants
in the city still remain open, other mills in the region have seen
slowdowns or shutdowns, the mayor says.
By force of political habit, Logan then turns to more positive
matters—the two economic pillars that are performing. Agriculture
has seen one of the best seasons in years and regional services,
both private and provincial, remain strong.
Logan adds that issued building permit values are still “healthy.”
But he concedes that construction has shifted from residential to
institutional and commercial/multi-family.
Barry Diederich, a real estate agent with a Grande Prairie
Re/Max office, says the housing market overall has softened.
“Right now there are about 650 or 700 house listings on the
market. That’s a lot. That’s way more than we used to have.
The residential market is also down about 20 per cent in price,”
he says.
REGIONAL REPORT
This indicates to Diederich that Grande Prairie was overbuilt.
“We grew a little faster than we could sustain in the last number
of years,” he says. “A lot of people are leaving for Saskatchewan
or back east.”
Even so, he adds, the local Friday paper still runs four or five
pages of help wanted advertisements. So Diederich expects the
housing correction to run its course by the summer.
Wayne Lock, a Coldwell Banker real estate agent, puts it this
way: “Nobody’s working so there’s a lot up for sale. People are
stretched out financially so they have to sell something. It’s either
their quad or their house. And up here, they usually opt to sell
their house.”
“You’d think natural gas prices
would have moved, but they
haven’t and that’s a little troubling.”
— Dwight Logan, mayor, City of Grande Prairie
NO PLACE ELSE TO GO
Chris Tesarski, president and chief executive officer of Arrow
Energy Ltd., is one executive who is staying the course in the
Grande Prairie area. Arrow was formed in 2004. Its main operating
areas are all located in Alberta in Peavine/Dawson, Westlock, and
Redwater/Jeffrey.
