Economic News November03

Volume 1, Issue 2
November 2003
E CONOMIC
D EVELOPMENT N EWS
GREAT CANADIAN CATTLE DRIVE SUPPORTS BEEF INDUSTRY
The Great Canadian Cattle
Drive .............................. 1
Japanese Exchange
Students ........................ 1
Call Centre Update
(Convergys) ...................... 2
Tony Roma’s Opens............ 2
SouthGrow Creating
Opportunities for the
Region ............................ 2
Call Centre Update
(Western Wats).................. 3
Port of Entry Status Back at
Lethbridge Airport ............ 3
Building and Business
Stats .............................. 3
Lethbridge Real Estate
Sales Booming ................ 4
Business Licence Agreement
Recommendation .............. 4
Economic Development
Lethbridge Receives
Funding .......................... 4
In early July, as an initiative to show support for the
Canadian beef industry, Economic Development
Lethbridge and two local IGAs launched the Great
Canadian Cattle Drive. Eduard Fetting, Chief Executive
Officer of Economic Development Lethbridge, said at
the time: “Anyone—especially people who come from a
rural background—understands that when your friends
are in trouble, you dig deep and help out as best you
can.”
Joined by Economic Development Lethbridge BSE
Impact Committee members, Janene Moch, Bill Waugh
and John Kolk, Fetting challenged Lethbridge-area
citizens, Albertans and Canadians to eat their way
through some of the thousands of backed-up Canadian
beef cattle. People did. The Great Canadian Cattle Drive
quickly became a stampede. In Lethbridge, they signed
on in droves.
Within days of launching, more than 170 other IGA
stores across western Canada joined. The IGA group’s
contribution has been pivotal. Their stores had to hire
extra staff, saw their cashiers wrapping meat, had
managers working round-the-clock and postponed their
meat-cutters’ holidays. Through the IGA stores, as well
as other participating retailers, the Great Canadian
Cattle Drive sold over two million pounds of Canadian
beef in less than two months. The IGA stores here
alone sold over half a million pounds.
Bigger grocery chains took notice. Safeway, a much
bigger corporation than IGA’s parent company Sobeys,
launched their Million Pounds of Beef Sale. And other
huge chains, like Overwaitea, considered joining the
cattle drive but decided it was too difficult for their
organization to adapt their resources. Still, Overwaitea
came up with its own Canadian beef promotion.
Figures show that all the activity has had a major
impact. Across Canada, beef consumption has gone up
60% over last year.
Albertans especially have realized the enormity of the
problem. Many organizations in Lethbridge, Calgary
and Edmonton, followed the lead of such early
David Rossiter, The Lethbridge Herald
INSIDE THIS ISSUE:
Parrish Hanelt (l) and Dallas Harty (r), ownermanagers of the two original Lethbridge IGAs, hand
over a giant slab of beef to Mayor Bob Tarleck
(centre) to celebrate the City employees’ purchase of
$66,000 worth of beef.
supporters of the program as the City of Lethbridge and
1st Choice Savings and Credit Union, and sponsored
payroll deduction programs for their employees to buy
Great Canadian Cattle Drive beef. The University of
Lethbridge, the University of Calgary, Epcor, Lethbridge
Community College, the Chinook Health Region and the
Alberta government (with 23,000 employees) are
among those who took that step to help their
employees help the cattle industry.
“What a great idea—I realized we needed a payroll
deduction plan for our employees to join the Great
Canadian Cattle Drive,” said Alberta Human Resources
and Employment Minister Clint Dunford, who was the
driving force behind setting up the public employees’
deduction plan. “It was a great way for them to help
the Alberta producers move their product—we
purchased over $500,000 worth of beef. The Cattle
Drive was a key factor in raising the profile and helping
producers move their excess beef inventory, a problem
that still faces the Alberta beef industry today. It’s been
a huge success.”
JAPANESE EXCHANGE STUDENTS PROUD TO SUPPORT ALBERTA BEEF
Misha Wilkin
Some Japanese kids had new duds to show off when they
returned home at the end of August. Economic Development
Lethbridge donated “Proud to Support Alberta Beef” t-shirts to a
group of 17 Japanese exchange students. The children were
pleased to show their support for our cattle industry in their
home country where a ban on Canadian beef is still in place.
Japanese kids model their Alberta beef T-shirts.
The 12- to 18-year-olds were in the Lethbridge area on an
exchange from Japan coordinated by the 4-H Clubs of Alberta.
The program gives students the opportunity to experience four
weeks of the summer with a Canadian family.
Page 2
Volume 1, Issue 2
LOCATION, LOCATION, LOCATION AND RIBS
Convergys had planned
to begin hiring in the
summer but has had to
postpone opening.
Glenda Yearley, a
recruiting manager at
Convergys’ Alberta
head office in
Edmonton, says that
projects there have tied
down the company’s
trainers longer than
expected.
Yearley says that they
are still accepting
resumes for Lethbridge.
The recruiting hotline
number is
(780)485-4114.
The recruiting
e-mail address is
[email protected]
“The company has told
us to be prepared to
come down there to
start up on a moment’s
notice.”
— Glenda Yearley,
Convergys Recruiting
Manager
Without a lot of fanfare, Tony Roma’s (“Famous For
Ribs”) arrived in town in mid-July. The latest
addition to a chain of 260 restaurants that span 27
countries, business is already booming. Rick Kille,
who is one of three majority partners in the
business, predicted success.
Said Kille: “I initially did the background and
research that was instrumental in bringing the
franchise to Lethbridge. This location is probably
the best location possible for us in the city.”
Lethbridge’s status as a regional hub is also a
benefit for the establishment. Added Kille: “Being
on the highway means we get a lot of out-oftowners. Tony Roma’s is a household name in the
U.S. We get people from north Montana driving
here specifically because the nearest Tony Roma’s
is probably in Spokane.”
Ron Bain, President of the Lethbridge Chamber of
Commerce, also has a positive outlook for the
enterprise, positioned near Wal-Mart and Costco.
Said Bain: “Tony Roma’s is a nice compliment to
our already impressive array of restaurants. It’s in a
location where things are happening and I think it
will be supported.”
Tony Roma’s head office is selective about granting
franchises. Owners must have proven industry
experience. For instance, Kille, a former Mountie
who owns Pizza Huts, hotels and radio stations, has
been in the hospitality business for 18 years. The
T. Diamant
CALL CENTRE
UPDATE
Convergys
Rick Kille and partners have opened Tony Roma’s, a
popular addition to the Lethbridge restaurant scene.
other majority partners, Dave Olson and Ray
Bonetti, are also long-time restaurateurs. Head
office gave the Lethbridge owners a great deal of
latitude with the interior design. The 205-seat outlet
has a much brighter, more open feel than
traditional Tony Roma’s, which, Kille says, will
serve as a new prototype for the chain.
Olson, Bonetti and Kille have created about 90 fulland part-time jobs with their new venture. Said
Kille: “With all the doom and gloom and people
worrying about everything from BSE to drought,
we’ve actually had a successful opening in spite of
these conditions. We’ve been very busy.”
SOUTHWESTERN ALBERTA
COMMUNITIES GROWING TOGETHER
Two years ago, community leaders in the Taber area began an
exploration of regional cooperation and economic development when
they held a meeting of communities in southwestern Alberta. Since then
the group has evolved into an organization of 25 regional communities:
SouthGrow (formerly the Southwest Alberta Communities’ Initiative), a
group dedicated to exploring economic and regional development
opportunities.
The participating communities are:
Village of Barons
Village of Cowley
Town of Cardston
Village of Glenwood
Cardston County
City of Lethbridge
Village of Carmangay
County of Lethbridge
Town of Claresholm
Town of Magrath
Town of Coaldale
Town of Milk River
Town of Coalhurst
Village of Nobleford
Village of Coutts
Town of Picture Butte
Town of Raymond
Town of Taber
Municipal District of Taber
Town of Vulcan
County of Vulcan
County of Warner
Town of Stavely
Village of Stirling
Village of Warner
Earlier this year, SouthGrow was successful in its application for a $75,000 Exploration Grant from the
Municipal Affairs Regional Partnership Program. This grant is being used to explore potential areas of
cooperation that will lead toward economic development and sustainability for the region.
In late October, SouthGrow will present a final report to its member communities. The report will include:
recommendations on governance; a catalogue of regional resources; assets and growth opportunities; a
report on shared municipal services; communications and marketing plans; and a regional business plan.
Said Lethbridge Mayor Bob Tarleck: “SouthGrow is a dramatic demonstration of the linkage between the
city of Lethbridge and the rural communities of southwestern Alberta. It’s based on the premise that the
city is an active partner in the region and that prosperity within the city can be used as a catalyst for
community development throughout the entire region.”
Page 3
Economic Development News
CUSTOMS SERVICE RESUMES
AT LETHBRIDGE AIRPORT
Lethbridge County Airport’s port
of entry status was finally
reinstated on September 1. The
airport, which serves the city
and southwestern Alberta area,
was closed to customs
clearance because of security
measures taken subsequent to
the terrorist events of
September 11, 2001. At that
Lethbridge County Airport, back in business.
time, the federal government had
an urgent need to increase
security, especially at busier airports. Many smaller centres’ ports of entry were closed to shift
those federal dollars to pay for heftier security bills.
In March, Mayor Bob Tarleck and Senator Joyce Fairbairn met with federal Customs and Revenue
Minister Elinor Caplan, which helped get the process of reinstatement started. Both Tarleck and
Fairbairn, as well as other county and city officials, local industry representatives, chambers of
commerce representatives and others had worked very diligently to get the movement that came
out of that meeting.
Said Mayor Tarleck: “Obviously not having customs clearance meant economic losses to this
area. Private planes can now land here, so can charter airlines and freight airlines. Before, they
had to go to Calgary to go through customs and that was translated into a loss of airport
activity.”
As The Lethbridge Herald has pointed out, many local businesspeople and politicians have had a
bit of a difficult time accepting the federal government’s terms. In an editorial on August 15, 2003,
the Herald wrote: “What still sticks in the craw of city and county officials is why customs
services were withdrawn from the local airport in the first place when several smaller
communities in British Columbia, for example, retained customs officers in the wake of the
September 11 terrorism attacks.”
Indeed, though customs is a federal responsibility, the city will have to pay $52,000 up to the end
of 2005 and the county will have to put in about $5,000 a year. Mayor Tarleck points out, however,
that the bulk of operating costs are still covered by the federal government. Added Tarleck:
“While it’s true that some places have not had to incur such costs, we have to realize that there
are about a hundred communities still waiting to reopen.”
The new agreement will work essentially as it had in the past. Customs services will be open
seven days a week from 8 A.M. to 8 P.M. Said Mayor Tarleck: “We couldn’t afford to wait. Having
airport of entry status is not just a convenience, it is crucial for attracting business to Lethbridge.”
LETHBRIDGE BUILDING AND BUSINESS STATS
May
June
July
August
Total:
May-Aug/03
Total:
Jan-Apr/03
Total:
Year to Date
Residential
Bldg Permits
Issued
$ Value
Commerical/
Industrial/
Institutional
Bldg Permits
Issued
$ Value
New
Business
Licences
Issued
New
Home-based
Business
Licences
(Not Home-based)
Issued
115
118
138
118
$6,399,000
$5,843,500
$11,244,500
$7,183,500
17
13
17
16
$5,058,545
$1,278,000
$1,950,500
$2,610,700
11
14
26
12
16
10
17
10
489
$30,670,500
63
$10,897,745
63
53
373
$23,144,500
76
$16,172,434
72
82
862
$53,815,000
139
$27,070,179
135
135
CALL CENTRE
UPDATE
Western Wats
Director of Canadian
Operations, Doug
Montague, says he is
looking to hire 200
more people by the
end of October.
Western Wats will have
150 ready working
stations by the middle
of October.
Montague says that the
company has the
contracts in place to
warrant more hiring.
Western Wats’ phone
number is 380-4059.
Their website address
is
www.westernwats.com
“Initially head office
wasn’t sure if we’d be
able to expand this
quickly. But we have
been able to find and
train supervisory staff
and they’ll be able to
handle the training
that’s required.”
— Doug Montague,
Director of Canadian
Operations
Page 4
Volume 1, Issue 2
Economic Development News
200, 817 - 4 Avenue South
Lethbridge, AB, Canada T1J 0P3
Telephone: (403) 320-3017
Fax: (403) 320-4259
Editor/Writer: Tasha Diamant
Contributors: Karri Flatla,
Lorna Kurio, Misha Wilkin
E-mail:
[email protected]
LETHBRIDGE-AREA REAL ESTATE MARKET STILL ROBUST
Last year was one of the best years ever in terms of real
estate sales in the Lethbridge area. According to recent
statistics for this year, the market is continuing to move at a
similar pace. In August 2002, the Lethbridge Real Estate
Board reported that 221 commercial and residential
properties sold for a total of $25,853,824. This August, that
figure was much the same, with slightly fewer units sold
(213) but at a higher total of $28,454,650.
This August, real estate sales in the Lethbridge
Stan Mills, President of the Lethbridge Real Estate Board, is
area totalled a booming $28,454,650.
confident about the prospects for the Lethbridge real estate
market. Said Mills: “The Lethbridge economy is still good.
Home construction is up again. The market seems to be very vibrant. Prices have gone up only modestly
but the activity is phenomenal.”
Mills said that he believes low interest rates and the steady growth of the city are two main contributing
factors to the market’s dynamism. Said Mills: “As long as interest rates stay down and Lethbridge
continues to grow, barring some disaster, the city’s real estate market will continue to grow.”
What is good news for Lethbridge is that even though there has been a disaster of fairly severe
proportions—the BSE crisis—our real estate market does not seem to have been touched. “It’s not what a
person might think. [BSE] doesn’t seem to have had an effect on the housing market in Lethbridge,” said
Mills. “Things are good in both the commercial and residential sectors.”
Rollie Beauchesne, of Bankers Commercial Real Estate Ltd. and the Economic Development Lethbridge
Board member representing the commercial sector, added that commercial real estate sales are indeed
brisk. Beauchesne said that the “Alberta Advantage” as well as low interest rates and the city’s continuing
growth are all contributing to the energetic market.
Economic Development
Lethbridge Board Members
(Representing 24 Sectors of the
Community)
Donna Allan (Lethbridge
Community College)
Sarah Amies (Multicultural)
Rollie Beauchesne (Commercial)
Fred Bosma (Seniors)
Sylvia Campbell (Environment)
Dawna Coslovi (Not-for-Profit)
Glenn Coulter (Agricultural)
Stephen Graham (Tech/Research)
Ron Hammerback
(Recreation/Sports)
Bryan Horrocks (City Appointee)
Gayle Jensen (Tourism)
John Kolk (County/Airport)
Andy Kovaks (Regional)
Suzanne Lint (Arts and Culture)
George McCrea (Construction)
Beauchesne also felt that the BSE issue has not had a great effect on commercial sales. Said Beauchesne:
“I can think of only one example where a client had cold feet [because of BSE] and backed out of a deal.”
RECIPROCAL BUSINESS LICENCES UNDER REVIEW
For about four years, eight Lethbridge-area municipalities have been signatory to a reciprocal business
licence agreement. These municipalities are: Picture Butte, Coaldale, Raymond, Magrath, Stirling,
Nobleford, Coalhurst and Barons. The reciprocal business licence agreement allows a business that is
licenced in any one of these towns to operate in any of the other towns without the cost of purchasing
additional business licences.
In August, Lethbridge Alderman Leslie Vaala brought forward a proposal for the City of Lethbridge to
consider the implications of participating in this reciprocal agreement. Lethbridge City Council passed a
resolution requiring Economic Development Lethbridge to make recommendations regarding joining the
agreement in November.
Eduard Fetting, Chief Executive Officer of Economic Development Lethbridge, was instrumental in getting
the first eight participants together during his tenure as Executive Director of the Lethbridge and District
Community Futures Development Corporation. Said Fetting: “In the last decade or so, so much has
changed in terms of how business is done. E-commerce, home offices, these sorts of things have changed
the landscape and will be taken into consideration.”
Coaldale Mayor Duncan Lloyd said the agreement has been a plus for many businesses in his town:
“They have been very very positive about the arrangement. It saves them a lot of cost and administrative
headaches. I’ve never heard a negative comment about it.”
Added Paul Pharo, Chairman of Economic Development Lethbridge’s board: “The basis of the reciprocal
agreement is to recognize the interdependency of our regional economies for the benefit of our local
consumers, businesses and municipalities.”
Janene Moch (Finance)
ECONOMIC DEVELOPMENT LETHBRIDGE
APPROVED FOR FUNDING SUPPORT
Paul Pharo (Service)
Rick Ross (Chamber of
Commerce)
The federal Program for Export Market Development-International (PEMD-I) has granted
Economic Development Lethbridge $11,000 to use toward foreign investment attraction. The
grant is set up in such a way that Economic Development Lethbridge must match the funds. The
organization will be spending $22,000 in total to develop export market development tools.
Cathy Semchuk (Retail)
Chris Spearman (Industrial)
Mayor Bob Tarleck (City
Appointee)
John Usher (University of
Lethbridge)
Bill Waugh (Transportation)
T. Diamant
Jay Colter Smith (Aboriginal)
The tools approved by PEMD-I are: development of a database of companies, investors and
businesspeople; and development of a foreign investment attraction strategic plan and website.
Karri Flatla,
contracted to
develop a
foreign
investment
attraction
strategy.
With these projects in mind, Economic Development Lethbridge has contracted Karri Flatla, a
University of Lethbridge Faculty of Management graduate who comes to the organization after
working as a market analyst for Canadian Pacific Railway. Flatla, herself, is an Economic
Development Lethbridge success story of sorts. She and her husband, Jason, an environmental
consultant, made the move to Lethbridge because they prefer the lifestyle and opportunities
available to them here.
Said Flatla: “I believe in the potential of Lethbridge to attract diversified investment. This is also
a great place to live and more and more people are going to want what we have.”