Construction Sector

2015 BUILDING PERMIT REPORT Capital investment is a key indicator of growth and building permits are a traditional indicator of a local investment and economic health. In 2015 the City of Moose Jaw issued 290 building permits valued at $53,255,742 down from 331 building permits issued in 2014 and valued at $131,510,249. (Note: the high value of permits in 2014 reflects the permit for the new regional hospital ($101M).

In 2015, residential construction dropped with 28 fewer permits for new dwellings issued, with a value $6.39M lower than in 2014. From January 1st to December 31st 2015, the City issued only 53 permits for new dwellings valued at $16.8M compared to 81 issued in 2014 valued at $23.2M

2015 MAJOR LOCAL PROJECTS (list includes those valued over $200,000) January: None. February: Commercial Storage Building; Condo development (foundation only); new Civic Centre Mall; Coffee Shop (foundation only); renovation of a fitness centre; renovation of two homes into a group homes; interior completion of office space in a new commercial warehouse building. March: Commercial steel building; restaurant renovation; April: Chester Courts 24 condo development; Grayson Business Park – a professional office building; Snyder Road industrial park – a steel warehouse storage building; May: Restaurant (Thatcher Drive); Vehicle Storage Building (North Service Road); June: New Rock, Bradley Street SW, (four bungalow condos $642,000); Walmart, Thatcher Drive E, (renovations $2.5M); Civic Centre Plaza, 1251 Main Street North (strip mall $330,000); Gencore Properties, 945 Maplewood Dr. (24 unit rental apartment $1,954,685); New Rock Bradley Street SW (11 townhome condos $1,654,400); Five Hills Health Region, 55 Diefenbaker Drive (maintenance shop hospital $160,000) July: Moose Jaw Refinery 641 Manitoba St. E (scale house $251,130); High Street Properties, 105 High Street W (renovations 9 apartments $200,000); August: REMAI Ventures Inc. 103 Ominica St W. (commercial renovations $73,000); HWZ Developments Inc. Hodges Crescent (4 condo units $1.6M); 1350 Caribou St E (shop $750,000); 1430 Caribou E (mezzanine $175,000); RONA Inc. 769 Thatcher Crescent (Renovations $1M). September: Sask Housing, 180 Iroquois St and 275 River St E (two group homes $642,000 and $649,000); Moose Jaw Co-op Association 850 North Service Road (card lock service station $2.5M); New Rock Developments 959 Bradley St. SW $642,000 (25 condo units); Cypress Paving 923 High St West (truck wash $135,000); Saskatchewan Wildlife Federation, 9 Lancaster Road (new office $150,000); Ministry of Central Services 600 Saskatchewan Street W (washroom upgrades $217,914); Five Hills Health Region 55 Diefenbaker Dr (hyperbaric chamber for new hospital $690,000); October: Islamic Cultural Centre ($1.2M) Grayson Business Park; November: Restaurant renovation 1711 Main Street N ($950,000); Prairie Plains Agro ($1.4M); Warehouse, Grayson Business Park ($600,000); Henderson Office Renovation, Thatcher Drive ($600,000); December: Medical Office, Grayson Business Park ($1M).

In recent years, Saskatchewan’s economic growth was the fasted growing in almost 15 years with strong fundamentals in the economy keeping it among the top performers in the country thanks to the robust growth in construction. Despite tumbling residential permit values, the overall picture is good news for the construction sector. Sask Trends Monitor says, “The housing market is soft but the institutional, commercial and industrial has picked up so there’s still lots of work to do.” The Saskatchewan Construction Association CEO Mark Cooper attributes the decline in residential to “over building” in previous years. He says non-residential permit values are encouraging and there is enough work to keep companies growing and engaged – and that’s positive. It is unclear if or when a similar correction as the residential sector will occur in the non-residential sector, but Cooper says companies are cautiously optimistic. More recently, falling residential construction activity in the province, including Moose Jaw, has caused a decline in related construction jobs, a trend that is expected to continue into 2016.

The Liberals have promised to increase infrastructure funding by an average of $6 billion per year over the next 10 years. The extra money is supposed to be spread equally to public transit projects, green infrastructure, such as waste water facilities and social infrastructure like affordable housing. In December 2015, Infrastructure and Communities Minister Amarjeet Sohi advised that Canada’s new infrastructure funding will target shovel-ready project that also meet national objectives: (i) grow the economy (ii) create jobs, and (iii) make the country more sustainable. Sohi said the government wants to focus on more cross-country projects like highways, ports, border crossings to help speed up the flow of goods and trade. It is not known if this will be a new program or a top up to existing programs.

The City of Moose Jaw’s Operating budget generates revenues of approximately $40 million with municipal taxation accounting for just over half. The City of

Moose Jaw is focused on major infrastructure upgrades, including cast iron water main replacement; bridges; transportation upgrades, such as signs, road widening and new turn lanes; sidewalks; roadways and municipal airport enhancement. This will attract new workers and create economic spin-off to the local economy.

Moose Jaw Tax Incentives

NEW COMMERCIAL AND INDUSTRIAL PROPERTY TAX PHASE-IN The City of Moose Jaw provides a five year property tax phase-in to new builds and expansions. The exemption is applied to the increased assessed value resulting from construction, as follows: 100% Year 1; 80 % Year 2; 60% Year 3; 40% Year 2; and 20% Year 5 (excludes land).

JOB CREATION INCENTIVE is based on the number of jobs created: For example, a company creating more than 60 new jobs in manufacturing or processing, transportation/warehousing distribution or communications and research sectors can receive a five-year 100% property tax exemption(excludes land).

OTHER PROPERTY TAX INCENTIVES ARE AVAILABLE: Heritage, Re-Use of an Existing Building; Living over Shops (downtown only); Replacement Housing/Vacant Lot In-fill Incentive; and the Grayson Business Park Environmental Phase I.

To encourage landowners of vacant property to develop, the City passed a by-law increasing the mill rate of vacant commercial and industrial land 2.5 times that of developed land.

“Restored” Ross School: Prime corporate office space.