BLACKFALDS LAND INFORMATION

BLACKFALDS LAND INFORMATION
EXECUTIVE SUMMARY
PROPERTY:
Valley Ridge Industrial
PT NW ¼ Section 27, Township 39, Range 27, West of the 4th
Blackfalds, Alberta
PRICE:
$300,000 - $325,000 per acre
USE:
Designated for I-1 Industrial Light District Use
Total Acres Available:
47.02 acres
Lot Sizes Available:
3.00 acres to 3.72 acres; maximum size of 13.18 acres
DETAILS:
Fully serviced light industrial lots located north of an existing industrial neighborhood located
on the extreme west side of the Town of Blackfalds. These 13 sites are well-suited for light
industrial use as permitted under the existing area structure plan. QEII highway exposure on
8 of the 13 lots.
UTILITIES:
Sewer:
Town of Blackfalds
Water:
Town of Blackfalds
Electricity:
FortisAlberta Inc.
Gas:
Atco Gas and Pipelines Ltd.
SPHERE OF INFLUENCE: County of Lacombe
BLACKFALDS LAND INFORMATION
REV #: 0
03.DEC.2013
1
BLACKFALDS LAND INFORMATION
PROJECT DESCRIPTION
Valley Ridge Industrial is located in Blackfalds, Alberta, along the Queen Elizabeth II Highway (“QEII”) Edmonton-Calgary
corridor. The Industrial Park consists of thirteen (13) fully-serviced lots ranging in size from 3.00 acres to 3.72 acres. In
total there are 47.02 acres available.
The subject property is located in an established/developing industrial district in the southwest quadrant of the Town
of Blackfalds, located along the QEII. The district is enclosed by the QEII Highway to the west, by a residential subdivision
to the east, a newly developing residential subdivision to the north and Highway 597 to the south. The traffic count of
the QEII provides that 36,000 cars per day traverse in front of the subject area.
Access to the general neighborhood is currently provided via South Street and Vista Trail. As a major thoroughfare
through the subdivision, Vista Trail extends south and joins with South Street, Highway 597 and through to the QWII
Highway.
The subject neighborhood is fully serviced with all of the site services requisite an industrial subdivision. These include
hydro, water, telephone service and natural gas, which is provided to the property line of each site. These services are
available to the subject property via the established industrial park to the south.
This area represents one of Blackfalds’ original industrial areas. Development dates back to the town’s conception and
was desirable due to the relative proximity to the Canadian Pacific Railway, the Central Business District, and Highway
2A, which was at one point known as Highway 2, connecting the cities of Edmonton and Calgary. Development within
the area is sporadic with a scattering of industrial uses in the north and west quadrants and residential developments
to the north and east.
A wide range of development types are found in this neighborhood; the majority are single tenanted, owner/user
facilities. An intensified poultry operation used to be located in this area, which was removed in the past five years.
The area, located in the extreme southwest quadrant of Blackfalds is in close proximity to an active rail line operated by
the Canadian Pacific Railway. Ingress and egress is considered very good via the QEII and Highway 597, as well as an
assortment of local connector routes. The neighborhood represents a typical light industrial neighborhood for a
community the size of Blackfalds.
BLACKFALDS LAND INFORMATION
REV #: 0
03.DEC.2013
2
BLACKFALDS LAND INFORMATION
MARKET ANALYSIS
Canadian Economy
Canadian economic growth remained on the softer side during the second quarter of 2012, with real GDP expanding at
a modest annualized rate of 1.8 percent, matching the prior quarter’s downgraded and slightly below potential pace.
The modest level of output, observed for the third consecutive quarter, is largely attributable to adverse external
conditions in addition to some domestic setbacks (weak global environment, debt-laden governments, elevated
exchange rate, growing household debt). However, so far third quarterly monthly real GDP numbers have surprised on
the positive side with the posting of a 0.2 percent expansion in July. This rate outperformed market expectations and
implied the possibility of a gain in traction.
Considering the existing international setbacks to growth, TD Economics expects the Canadian economy to advance at
a modest pace of 1.8 percent in 2012. Alternatively, CIBC economists present a more optimistic scenario of a 2.1 percent
annualized increase in 2012. Despite the differences in projections, forecasters uniformly agree that economic activity
will rebound to slightly above the 2.0 percent mark next year, provided that global economic uncertainty subsides.
Consumer spending in the second quarter of 2012 was weaker than expected and increased at a modest annualized
rate of 1.1 percent as Canadian households reduced their spending on debt-financed big ticket purchases. This
slowdown suggests that households may no longer be the primary engine of growth in the Canadian economy due to a
slowing pace of borrowing, a trend observed over the past year.
The global economic slowdown has taken its toll on Canadian exporters. Exports registered an anemic growth rate of
just 0.8 percent in the second quarter of the year, attributable to a weak global market and a strong Canadian dollar.
The Canadian dollar remained strong in the third quarter of 2012, securing an above parity position relative to the U.S.
dollar. The CAD/US exchange averaged approximately $1.01 in the third quarter of 2012, representing a significant
appreciation relative to the below-parity second quarter 2012 average of $0.99.
On a year-over-year basis, quarterly inflation in Canada is expected to remain at or below 2.0 percent for the remainder
of 2012 and into 2013. For the third quarter, forecasters predict a very low range of 1.2 to 1.4 percent quarterly
inflation. Higher levels of inflation are anticipated, but forecasters generally agree that levels beyond 2.0 percent will
not be observed until the third quarter of 2013.
Most forecasters are in agreement that the overnight rate should increase at some point in 2013, but the timing remains
highly uncertain. The Bank of Canada’s decision to keep the overnight rate unchanged despite months of repeated
warnings has led most forecasters to push back their estimate for the timing of a rate hike by one or two quarters – in
some cases into 2014.
Over the second quarter of 2012, the population of Canada increased by 126,600 (+0.4 percent) relative to their first
quarter, and stood at 34,880,500 as of July 2012.
BLACKFALDS LAND INFORMATION
REV #: 0
03.DEC.2013
3
BLACKFALDS LAND INFORMATION
Canadian Labor Market Trends
Overall, employment in Canada rose by 17,200 in the third quarter o f2012, compared to the previous quarter. Yearover-year, employment in Canada increased by 163,400 or 0.9 percent. TD Economics expects modest employment
growth for Canada in the range of 15,000 – 20,000 jobs per month on average for the remainder of 2012 and into 2013.
Canada’s unemployment rate edged up on the third quarter of 2012 on average of 7.3 percent, from 7.2 percent from
the previous quarter and from 7.2 percent year-over-year. The Conference Board of Canada is forecasting Canada’s
unemployment rate will slowly decline from an average of 7.3 percent this year (2012) to 6.5 percent in 2014.
In June 2012, businesses in Canada had 263,100 job vacancies. With an estimated 1.38 million unemployed in the
country in June 2012, Canada had 5.3 unemployed persons for every job vacancy. Alberta had the lowest
unemployment to job vacancies ratio in Canada in June 2012. With an estimated 64,300 job vacancies and 104,000
unemployed, Alberta’s ratio was 1.6 percent.
Alberta Economy
Alberta is expected to lead the nation in economic growth this year as a result of continued growth in the energy sector
and solid growth in consumer spending, employment and income. With real Gross Domestic Product (GDP) in the
province projected to advance 3.8 percent in 2012, Alberta’s economy is forecasted to significantly outperform the
national average of 2.1 percent.
Economic growth in Alberta is expected to moderate somewhat in 2013, though growth is forecast to rise by a solid 3.0
percent. Output in the services—producing industries is forecast to ease to 2.6 percent in 2013, from an estimated 3.4
percent in 2012. Growth in the goods-producing industries is also forecast to ease, from an estimated 4.0 percent in
2012 to 3.4 percent in 2013.
West Texas Intermediate (WTI) crude oil averaged $92.24 U.S. per barrel in the third quarter of 2012, down 1.3 percent
from the previous quarter but up to 2.8 percent year-over-year. The U.S. Energy Information Administration (EIA) is
forecasting WTI crude oil will average $93 U.S. per barrel in the second half of 2012 and largely remain at this level
throughout 2013.
Natural gas prices averaged $1.65 CAD per gigajoule (GJ) in the second quarter of 2012, down 24 percent from the
previous quarter and down over 51 percent year-over-year. Prices remained depressed as a result of growing natural
gas production and a surplus of supply in storage. Unless North American experiences an unusually cold winter, prices
are expected to remain contained.
Consumer prices in Alberta rose 1.0 percent year-over-year in August 2012, up slightly from the previous quarter and
down over 51 percent year-over-year. Alberta’s inflation rate has been below 2.0 percent since February 2012 and has
also trended below the national average over this time period. The majority of forecasters are expecting Alberta will
continue to record a modest rate of inflation through the remainder of 2012 in the range of 1.1 to 1.3 percent.
BLACKFALDS LAND INFORMATION
REV #: 0
03.DEC.2013
4
BLACKFALDS LAND INFORMATION
Housing starts in Alberta are forecast to total 31,800 units in 2012, a 24 percent increase from 2011. Starts in 2013 are
projected to be very similar to those of 2012, increasing at an annual rate of 1.3 percent to 32,200 units.
Alberta contractors took out $3.85 billion in building permits during the second quarter of 2012, a 17 percent increase
from the previous quarter. Residential permits, amounting to $2.03 billion, accounted for 53 percent of the total value
of permits issued during the second quarter, while non-residential permits, totaling $1.82 billion, accounted for the
remainder.
The Conference Board of Canada is projecting retail sales in Alberta will increase 9.4 percent in 2012 to $70 billion, from
$64 billion in 2011. Retails sales are then forecast to rise an additional 6.4 percent to $74.5 billion in 2013.
The average weekly earnings of Alberta payroll employees rose by $64 (+6.1 percent) year-over-year in July 2012 to
$1,095. On average, Albertans earned $188 more per week in July 2012 than the national average of $907.
The average number of Albertans receiving regular Employment Insurance (EI) benefits fell 13 percent in the second
quarter of 2012, compared to the previous quarter, continuing the downward trend started in the first quarter of 2010.
Year-over-year, regular EI beneficiaries were down 31 percent in Alberta in the second quarter of 2012.
In an extensive report recently completed by Toronto Dominion Bank, the Calgary-Edmonton corridor is described as
an economic powerhouse in Canada and the only region in the country to match U.S. cities in productivity and standard
of living. The 260 kilometer stretch of QE II highway between the province’s two largest cities is not only blessed with
massive resource wealth, but is also rich with a young skilled work force and one of the lowest costs of business on the
continent. The report also stated that if the Province of Alberta was a country, it would outrank Canada, the United
States and virtually all industrialized nations in gross domestic product per capita, second only to Luxembourg.
Alberta Labor Market Trends
Overall, employment in Alberta increased by 6,600 or 0.3 percent in the third quarter of 2012, compared to the previous
quarter. Year-over-year, employment was up by 42,100 or 2.0 percent, which was more than double the national
growth rate of 0.9 percent. Looking ahead, steady employment growth is projected for the province over the next two
years. Employment in Alberta is forecast to increase 2.9 percent in 2012, translating into approximately 61,190 new
positions, and by a further 2.6 percent or 55,270 new jobs in 2013.
Alberta’s unemployment rate averaged 4.5 percent in the third quarter of 2012, down from 4.7 percent the previous
quarter and down a full percentage point from 5.5 percent year-over-year. The Conference Board of Canada is
forecasting Alberta’s unemployment rate will average 4.7 percent in 2012 and 4.5 percent in 2013.
An increase of 51,400 full-time jobs in Alberta was offset by a decline in 9,300 pert-time positions in the third quarter
of 2012. On an annual basis, full-time employment increased by 2.9 percent in the third quarter of 2012, while parttime employment was down by 2.6 percent.
BLACKFALDS LAND INFORMATION
REV #: 0
03.DEC.2013
5
BLACKFALDS LAND INFORMATION
On a year-over-year basis, there was strong employment growth in a number of Alberta industries in the third quarter
of 2012, including utilities (+55 percent), mining and oil and gas (+20 percent), agriculture (+15 percent) and
construction (+11 percent).
Albertans are among the best educated people in North America. Alberta has a total of 26 publicly-funded post
secondary institutions, including 4 universities, 2 technical institutes, 14 public colleges and 6 private university colleges
that receive public funding. The Banff Centre is a globally respected arts, cultural and educational institution and
conference facility located in Banff. In 2008, 61.6% of the labor force, 25 years and older, reported holding a post
secondary education certificate, diploma or university degree. This is slightly below the Canadian average of 63.9%.
Community Overview – The Town of Blackfalds
Overview
Blackfalds, a growing community with a population of 6,789, is nestled halfway between Red Deer and Lacombe. It is
situated in Lacombe County in Central Alberta. The ten minute commute in either direction provides the residents of
Blackfalds not only a short drive to a wide range of employment opportunities and post secondary educational
institutions, but to regional scale shopping outlets and entertainment. Blackfalds is located within 150 kilometers of
both Calgary and Edmonton.
Blackfalds is situated along Highway 2A, with connector access west to the Queen Elizabeth II (“QEII”) highway, a four
lane divided highway that is the primary north/south transportation corridor in Alberta (from north of Edmonton
through Calgary to the United States border). Highway 597, running east and west, intersects these two highways.
The Canadian Pacific Railway and Greyhound passenger buses serve the town. Air service is available from the Red Deer
Regional Airport. The nearest commercial and airfreight services are available at the Edmonton International Airport.
Union Carbide’s ethylene glycol plant, built some 10 kilometers due east of Blackfalds, is one of the area’s largest
employers. They have a loading facility on the north side of Blackfalds that stores ethylene glycol piped from Prentiss.
The facility loads it into custom-designed rail cars for shipment to various Pacific Rim countries and the United States.”
Through the Municipal Development Plan, the Town of Blackfalds is fulfilling its commitment to maintaining a smalltown atmosphere while expanding the industrial and residential base and improving the quality of life for their citizens.
Affordable housing, a quiet place to live, new recreational facilities, plus ample business opportunities and close
proximity to major transportation routes will continue to increase the population and economy, making it easy to say
that, indeed, Blackfalds is “A Nice Place to Grow!”
People
Blackfalds is a friendly community of young families. Currently, eighty-five percent of the population consists of people
under the age of 40 years.
BLACKFALDS LAND INFORMATION
REV #: 0
03.DEC.2013
6
BLACKFALDS LAND INFORMATION
In 1995, Blackfalds was known as the “birth capital of Canada”. Thirty-five percent of the population is children.
Blackfalds residents choose their community over others because of its quality of life.
Results of a recent survey show sixty-five percent of the population indicated they live in the community because of its
rural lifestyle, recreational amenities and low crime rate. The remaining thirty-five percent prefer the town for its
affordable cost of housing and living.
“Community pride” is not just talked about in Blackfalds. It’s evident in the participation in community events such as
Blackfalds Days, which are held each spring, as well as other similar events throughout the year. It shows up in the welltended yards and flower gardens seen throughout the town and it is evident in the response to volunteer needs. Some
projects have seen men, women and children working together for the betterment of the community.
In Blackfalds, the residents know their neighbors. They watch out for each other’s children and property. They’re like
family. If you like to live in that kind of community, you would be welcome in Blackfalds!
Blackfalds is a “community of commuters”. At present, over sixty-five percent of the working population travel to Red
Deer for employment. The remainder works in Blackfalds, the nearby petrochemical plants or the Blindman Industrial
Park. Blackfalds is their home-base, partly due to its central location and convenient highway access.
Education
Blackfalds School has an excellent reputation for academic achievement. Under the Wolf Creek School Division #32,
education is a high priority in the community. With a teaching staff of 26 and support staff of 10, the school offers its
students a full range of programs, including computers at the elementary level, a band program and many other optional
subjects.
With considerable population growth anticipated, land on the west side of town has been set aside for additional school
development.
At present, education facilities are available for children attending kindergarten through grade nine. High school
students are bused to Lacombe Composite High School in Lacombe, approximately 10 minutes north of Blackfalds.
Lacombe Composite High School is one of the top secondary schools in all of Alberta.
History
The community was first called Eleventh Signing by the Railway Company. The name was later changed to Waghorn,
North-West Territories after the area’s first postmaster, Walter Waghorn. A young CPR engineer gave the town of
Blackfalds its name. The engineer thought the terrain was much like his home in Blackfalds, Scotland.
Blackfalds was chosen, due to its central location between Edmonton and Calgary, as Alberta’s capital city when Alberta
first became a province. This lasted a short time, as the legislature was finally located and constructed in Edmonton.
BLACKFALDS LAND INFORMATION
REV #: 0
03.DEC.2013
7
BLACKFALDS LAND INFORMATION
Many settlers from the United States and England came to the area around the 1900’s and, in 1904, the Village of
Blackfalds was incorporated. In 1980, it was incorporated as a town.
Government
The Town of Blackfalds is governed by a Chief Elected Officer and six councilors.
Policing is handled by the Royal Canadian Mounted Police rural detachment located in Red Deer. There is also a Citizens
on Patrol group of volunteers to assist with the safety and well-being of the town.
The fire department is serviced by volunteers.
Recreation
Blackfalds has a lot to offer its residents in the way of community development. It offers a community hall concession
building, library and over 20 service clubs and organizations working within the community. A number of recreation
facilities are available in the town and within close distance in both Red Deer and Lacombe. The residents also have a
number of additional recreation facilities available.
Population
The Town of Blackfalds has shown steady growth over the years with a growth rate of 77.73% from 1991 to 2001 and a
growth rate from 2001 to 2012 of 115.94%. The population of Blackfalds is distributed fairly evenly by sex, while the
largest age sector is between the ages of 24 and 38. Blackfalds continues to attract young families to the area.
Originally, Blackfalds was primarily a bedroom community to the City of Red Deer, with most residents of Blackfalds
working and using the Red Deer services. However, with the construction of the large petrochemical plants located at
Joffre and Prentiss, Blackfalds has become home to many of the employees at the plants as well as those who choose
the smaller centre to live and commute to Red Deer for work.
Blackfalds is a community of commuters. Approximately 65% of the working population travels to the City of Red Deer
to work. In addition, a substantial portion of the working population travels to the nearby petrochemical plants near
Joffre and to the Blindman Industrial Park, between Blackfalds and the City of Red Deer, for employment. Following is
a summary of population growth statistics.
BLACKFALDS LAND INFORMATION
REV #: 0
03.DEC.2013
8
BLACKFALDS LAND INFORMATION
Table 1 – Blackfalds Population Growth Statistics
Year
Population
Growth
Growth Percentage
1991
1,769
-
-
1996
2,001
232
11.6%
2001
3,144
1,143
36.4%
2002
3,540
396
11.2%
2003
3,812
272
7.1%
2004
3,955
143
3.6%
2005
4,373
418
9.6%
2006
4,741
368
7.8%
2007
4,843
102
2.1%
2008
4,843
0
0.0%
2009
5,610
767
13.7%
2011
6,399
789
12.3%
2012
6,789
390
5.8%
BLACKFALDS LAND INFORMATION
REV #: 0
03.DEC.2013
9
BLACKFALDS LAND INFORMATION
Building Permits
The level of permit activity is often a good indication of local economic activity. Following is a summary of the level of
building permit values for residential, commercial, industrial and institutional properties in the Town of Blackfalds from
2001 to 2011.
Table 2 – Blackfalds Building Permit Values ($)
Year
Residential
Commercial
Industrial
Institutional
Total
2001
14,160,000
185,000
20,000
153,000
14,518,000
2002
8,536,000
1,259,000
0
3,635,000
13,430,000
2003
7,791,000
1,770,000
649,000
66,000
10,276,000
2004
11,902,000
1,131,000
90,000
2,222,000
15,345,000
2005
17,279,000
240,000
2,092,000
0
19,611,000
2006
39,300,000
50,000
1,650,000
7,900,000
48,900,000
2007
39,335,100
949,000
740,000
7,892,500
48,916,600
2008
25,203,779
5,271,000
3,435,000
100,000
37,227,779
2009
28,274,464
610,400
10,000
539,000
29,433,864
2010
22,796,991
202,000
211,597
5,312,000
28,522,588
2011
25,632,402
3,828,000
3,444,000
150,000
33,054,402
Observations
Building permits in 2006 and 2008 reached record numbers due to the high demand for residential properties in Central
Alberta. As the economy slowed in 2008, residential building permits also subsided and have remained fairly stable
over the past 4 years.
The Subject Neighborhood
The subject property is located approximately 2.25 kilometres north of the downtown core. It is situated on the west
side of Duncan Avenue as shown on the area map below. It is accessible via the Town of Blackfalds paved roadways
and is considered to be easily accessible.
BLACKFALDS LAND INFORMATION
REV #: 0
03.DEC.2013
10
BLACKFALDS LAND INFORMATION
To the north and east of the subject is vacant land, to the south is Step Energy Services and to the west is the Queen
Elizabeth II Highway. Additional properties in the area include Castle Guard Storage, Nugget Oilfield Hauling and Andy’s
Oilfield Hauling.
Please refer to the area map below.
Figure 1 – Area Map
Subject
BLACKFALDS LAND INFORMATION
REV #: 0
03.DEC.2013
11
BLACKFALDS LAND INFORMATION
Figure 2 – Aerial Map
Subject
BLACKFALDS LAND INFORMATION
REV #: 0
03.DEC.2013
12
BLACKFALDS LAND INFORMATION
Figure 3 – Land Use Map
Subject
BLACKFALDS LAND INFORMATION
REV #: 0
03.DEC.2013
13
BLACKFALDS LAND INFORMATION
AVAILABLE VACANT LOTS
AVAILABLE VACANT LOTS
Lot Number
Area (Acres)
Location
Price per Acre
7
3.56
Interior Lot
PENDING
8
3.61
Highway Exposure
$325,000
$1,173,250
9
3.24
Highway Exposure
$325,000
$1,053,000
10
3.00
Highway Exposure
$325,000
$975,000
11
3.00
Highway Exposure
$325,000
$975,000
12
3.00
Interior Lot
SOLD
13
3.00
Highway Exposure
$325,000
14
3.00
Interior Lot
PENDING
15
3.00
Interior Lot
$300,000
$900,000
16
3.19
Highway Exposure
$325,000
$1,036,750
17
3.72
Interior Lot
$300,000
$1,116,000
18
3.27
Highway Exposure
$325,000
$1,062,750
19
3.51
Highway Exposure
$325,000
$1,140,750
BLACKFALDS LAND INFORMATION
List Price
$975,000
REV #: 0
03.DEC.2013
14
BLACKFALDS LAND INFORMATION
Figure 4 – Site Map
BLACKFALDS LAND INFORMATION
REV #: 0
03.DEC.2013
15