Keith's Prince Rupert Real Estate Update

Feasibilty study underway for LNG plant in Prince Rupert

2012-02-07T15:33:00.000-08:00

This is at the earliest possible stage of development but a UK company, The BG Group, is in talks with Prince Rupert Port Authority regarding the potential for a LNG export facility in Prince Rupert. This project would utilise the exisitng port improvements as well as the proposed rail and road improvements to Ridley Island. The BG Group is the world's second largest LNG company behind Shell and has operations in 25 countries.

Prince Rupert CEO bullish about future

2012-02-02T16:45:00.000-08:00

Don Krusel, CEO of Prince Rupert Port Authority is publicly expressing enormous confidence in Prince Rupert's future. During a press call where it was revealed that their was an 18% rise in shipments during 2011, Mr Krusel said, "In my mind the only thing standing in the way of another record breaking year and more growth in the future is if there is a meltdown in the global economy. The Port of Prince Rupert and the community of Prince Rupert can expect an exciting year in 2012 and many exciting years ahead."
This is a further example of the increased confidence in Prince Rupert that has led to a sharp increase in real estate activity since the start of 2012. We are still just about clinging to the coat-tails of a buyers' market but by this summer the power in the marketplace is forecast to swing in favour of sellers.

CN Rail signs 10 year deal with Canpotex

2012-01-27T10:55:00.000-08:00

CN Rail, the company with exclusive rail access into Prince Rupert have signed a 10 year deal to ship potash volumes from Saskatchewan. This is the first time CP Rail has not possessed sole rights to this contract and provides further encouragement to those in Prince Rupert who eagerly await news of Canpotex's proposed export facility being built at Ridley Island.
The CEO of The Potash Corporation of Saskatchewan has stated that no final decision on the Prince Rupert project has been made and the environmental assessment and public consultation periods are still ongoing. However a large part of CN Rails sales pitch to Canpotex consisted of trumpeting their exclusive access to Prince Rupert which would indicate an elevated degree of importance being attached to the project.

2011 Real Estate Sales Figures

2012-01-05T10:50:00.000-08:00

The official figures from the British Columbia Northern Real Estate Board are below. They clearly show that the decline in real estate caused by the recession is over. Figures for 2011 are almost identical to those for 2010 which means that it is reasonable to expect the market to head into more positive territory in 2012. With the amount of commercial and industrial investment into Prince Rupert expected to surge in 2012 this current balanced market may suddenly turn into a seller's market during the next twelve months. If you are looking to buy the value is to be had now.
In Prince Rupert 116 properties worth $19.3 million changed hands in 2011 compared with 117 properties worth $18.9 million in 2010. Half of the 96 single family homes sold in 2011 sold for less than $165,000. In addition 5 parcels of vacant land sold in 2011. At year end there were 226 properties of all types available through MLS® in the Prince Rupert area, the same as this time last year.

Buyers' market continues in Prince Rupert

2011-10-07T14:17:00.000-07:00

Sales figures for 2011 YTD are: 83 properties worth $14.6 million changed hands so far this year in the Prince Rupert area, compared with 96 properties worth $16.5 million to the end of September, 2010. Of the 72 single family homes that have changed hands this year, half sold for less than $169,000 and on average, took 142 days to sell. As of September 30th there were 264 properties of all types available through the MLS® in the Prince Rupert area.

Investment updates from one source for Northwestern BC

2011-10-06T17:20:00.000-07:00

We have grown used to the rumour mill in Prince Rupert issuing forth with a variety of different tall tales over the years. Sometimes it can be difficult to seperate fact from fiction. A new website is now available that states only cold hard facts about the various projects that are planned not only for Prince Rupert but for the whole Northwest corridor. This site will provide regular updates as they happen and will follow the processes that these projects must follow from inception to completion.
For anyone considering investing in the Northwest this website is invaluable. So dispense with the rumours and get some actual facts from www.investnorthwestbc.ca

Canpotex investment in Prince Rupert - update

2011-08-15T10:41:00.000-07:00

According to a document filed with Canada’s Major Project Management Office (MPMO) on July 20, Canpotex still plans to build a potash terminal on Ridley Island, south of the coal terminal. While nothing is certain yet, the filed document, titled “Project Description Final” and prepared by Stantec Engineering, is the most positive indication in almost two years that shovels may one day go in the ground.

After representatives from the company visited Rupert in September 2009 and held a public presentation at the Lester Centre of the Arts, the community shared an optimism that had not existed since the early days of construction of the container port. Promising a decision by the end of 2009, Canpotex reps said they were deciding whether or not to build a potash terminal in Rupert or in North Vancouver.

The year came and went, and so did 2010, without a peep from Canpotex. Repeated requests for information by Muskeg News, and presumably by other media outlets, were stonewalled: the company farms its media-relations department out to a private company, based in Vancouver. When asking for comment for any little thing that arose over the past two years, Muskeg News was inevitably told “no comment” in a variety of ways.

As time went by, Rupertites grew more skeptical of the company, or, indeed, put it out of their thoughts altogether. The occasional rumour flared up, saying either that Canpotex was never coming, or that it was. No one was certain; everything was a speculation.

It didn’t help, either, that Canpotex had actually put a stop to a federal environmental assessment on May 14, 2010. But on June 24 of this year, that process was quietly re-started, and the new engineering report was filed less than a month later, showing that the project is still very much alive, even if nothing is official quite yet.

The environmental assessment is managed through the Canadian Environmental Assessment Agency. “The reason for continuing the environmental assessment at this time is that we received an official letter from the proponent notifying us that they wished to proceed,” wrote Maxine Leger-Haskell, a communications advisor with the Agency, in an email to Muskeg News.

While that may bring a bit of optimism to the community, further optimism may come from the engineering report that was filed on behalf of Canpotex and the Prince Rupert Port Authority. The project to build a potash terminal, in this case, is linked closely to the Port’s plans to build a circular rail system at Ridley Island, a development plan that was mentioned at its annual public meeting earlier this year.

“The PRPA road, rail and utility corridor will service the Canpotex facility as well as other future developments on Ridley Island,” states the report in its introduction. “A single environmental assessment is being proposed for these two projects as they are seen as interdependent and cannot proceed without each other.”

Numerous maps in the report show the Port plans to use the existing rail lines and extend them in a loop around Ridley Island. The loop would be 7,818 metres long, with railbeds for up to 14 inbound and 11 outbound tracks. The total area for the rail loop is 125 hectares. The potash terminal, on other hand, consists of a storage facility, a marine wharf, a trestle, a causeway, and a loading facility capable of receiving vessels of up to 180,000 dead weight tonnes. Canpotex’s portion of the project requires 21 hectares of land.

In the report, Canpotex also lays out its argument for building the potash terminal. A key ingredient in fertilizers, potash has seen an increased demand due to global food demand. The potash mines in Saskatchewan are some of the biggest deposits in the world. “Canpotex’s shareholders have planned a number of mine expansions and debottlenecking projects to increase output,” states the report in the “Project Need and Rationale” section. “For Canpotex to meet the needs of the global marketplace, additional potash export terminal capacity is required.” The company conducted “pre-feasibility” studies to develop such terminals in Rupert, Vancouver, Washington State and Oregon to increase the supply.

Page 19 of the report also lays out a tentative schedule for construction of the terminal and railyard. Construction could begin as early as spring 2013, with completion scheduled for the first quarter of 2016.

But they’re not there yet. The environmental assessment, which was put on hold for over a year, needs to first be completed. And, as part of federal law, aboriginal bands need to be consulted.

In this area, the report shows that Canpotex has been busy meeting with various aboriginal groups since February 2008. Over 20 meetings have been held, mostly with Lax Kw’alaams, Metlakatla, and Kitkatla (Gitxaala). The most recent meeting occurred on June 17 between Canpotex, Lax Kw’alaams and Metlakatla in Vancouver. While other agencies, such as Environment Canada and Fisheries & Oceans, have also met with Canpotex, the majority of meetings listed are with aboriginal bands.

Outside of the process to build a terminal, Canpotex has made a major pricing agreement with India after extensive negotiations. At the Port’s annual public meeting earlier this year, the drop in potash prices two years ago was blamed for the delay in Canpotex’s decision to build a terminal.

And even with the re-start of the environmental review and the new draft of the engineering report, a potash terminal still isn’t a for-sure thing. In an interview with Muskeg News, the Port’s manager of corporate communications, Michael Gurney, said the timeline could change. He also downplayed the re-start of the environmental review, saying there is nothing extraordinary about it. “It’s just business as usual,” he said. “It’s the next step in the environmental assessment.”

Meanwhile, as the Northwest economy continues to struggle, Rupert continues to seek a white knight to revive its fortunes – but it hasn’t arrived, yet.

~Written by Chris Armstrong - Muskegnews.com

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Prince Rupert Port expansion plans revealed

2011-05-26T14:19:00.000-07:00

Clicking the link below will take you to a slide show presentation from Maher Terminals detailing the present activity at Prince Rupert Port and also the plans for the future expansion of the facilities. Included are estimates of job creation, 2nd phase expansion details and the partnerships between organisations which makes Prince Rupert Port a thriving business with an exciting future.

http://www.princerupertchamber.ca/downloads/2011%20CHAMBER%20OF%20COMMERCE%205-25.pdf

Brand new real estate service offering in Prince Rupert

2011-05-25T16:26:00.000-07:00

The real estate marketing of the future is not going to resemble the staid print based model of today. With the advent of HD and 3D television, most of the properties for sale will be available on-line in real time.
Want to look at the future now?
Go to my web-site;
www.realestateprincerupert.com and click on Video Tours in HD.
Take a look and then let me know what you think.

Pulp Mill sale update from City of Prince Rupert

2011-04-28T15:28:00.000-07:00

When council passed the first three readings of the 2011 budget on Tuesday night, one city councillor took issue with the City’s spending habits.

Coun. Sheila Gordon-Payne, who voted against the budget, said she was continuing to “raise the red flag” over counting on money coming from the Watson Island pulp mill. She said money from the pulp mill has not come into municipal coffers, but the City is spending as if it has come in.

Coun. Gordon-Payne also said it’s a risky decision to spend money the City doesn’t have, and predicted that the City will one day have to raise taxes just to live within its means.

In an interview after the meeting, Mayor Jack Mussallem said he understood Coun. Gordon-Payne’s concerns, but he argued the City is going through a period of growth and opportunity.

“We can get beyond it after this year,” said Mussallem. “It’s a reasonable way to proceed at this time. I wouldn’t do it continuously year after year after year, and I think that’s her point. But at this time, going forward, we have cash flow that we can do that.”

Mussallem also said the sale of the pulp mill would help pay down the “extraordinary” debt load the city is under.

The City took the property at Watson Island after the previous owner, Sun Wave Forest Products, didn’t pay its taxes. In February 2010, SunWave filed a lawsuit against the City, claiming the City set unrealistic timetables for the removal of its property. Sun Wave also claimed the City was barring it from accessing its property on Watson Island.

On top of those legal costs were the maintenance fees for the property. After the City took over ownership of the mill in December 2009, it had to pay to maintain the property. According to the draft budget, those costs came to over $1 million in 2010.

The draft budget also states the City will actually be increasing its budgeted expenditures for Watson to $1.225 million for 2011 to “begin compliance with Ministry of Environment direction as well as some provision being made for cost of impending lawsuits.”

In September last year, a joint venture – comprising Metlakatla, Lax Kw’alaams and the Prince Rupert Port Authority – signed an exclusivity agreement by the City to do its due diligence in consideration of buying the mill. In return, the joint venture would pay most of the maintenance costs. At this point, it’s still not known whether the joint venture will buy the property.

The City’s next court date with Sun Wave is June 15, and another one is scheduled for June 22. Mussallem said there probably won’t be news of a sale of the mill until after those dates.

This year’s budget also sets aside $118,000 from its accumulated surplus to fund the net cost of holding Watson Island. The budget states the balance of the surplus on Dec. 31, 2010 was $2.5 million.

~Written by Chris Armstrong. Muskeg News

Details released about historic signing

2011-04-28T15:27:00.000-07:00

Port discusses elements of Coast Tsimshian deal
Posted on April 27th, 2011 by MuskegPress in News

A month after the minister of transportation visited Prince Rupert to herald a new deal between the government and the Coast Tsimshian, the Port Authority discussed some details of the plan at the monthly Chamber of Commerce luncheon.

On April 27, Andrew Mayer, the vice president of commercial & regulatory affairs with the Port, fleshed out some of the features of the deal, which he officially called the “Phase I, Phase II & Terminal 2 Settlement Agreement.”

Mayer said the deal will last 40 years and include the following terms:

•Transfer of federal & provincial Crown lands, located next to Fairview Terminal, to the Coast Tsimshian;
•“Economic development payments” from the federal government to the Coast Tsimshian. Mayer said this “substantial amount of money” is intended to be used by the Coast Tsimshian to train its members;
•Financial payments from the Port to the Coast Tsimshian for Phase I and Phase II work.;
•Contracting opportunities. In some cases, the Coast Tsimshian will have the ability to bid on a contract first – they must then demonstrate they have the necessary qualifications to complete the work, and the bid must be shown to be competitive. Mayer also said the qualifications and experience of any joint venture working with the Coast Tsimshian will also be taken into account;
•The ability for the Coast Tsimshian to be the sole source of contracting opportunities for major projects, such as Ridley Island Road and the rail utility corridor;
•50 jobs targeted to the Coast Tsimshian for Phase II;
•150 “operations jobs” over a 10-year period;
•Cash payments from the Port Authority for Phase I. In essence, the Coast Tsimshian would receive payments per container once the number of containers shipped reaches a certain threshold;
•After Phase II is built, the Coast Tsimshian will receive a cash settlement payable in one of the following scenarios: over 15 years, or lump-sum, or on a 20-foot container basis.
In promoting the deal, Mayer said it benefitted not only the Port, but also Prince Rupert as a whole. He said the agreement will lead to improved opportunities for the Coast Tsimshian, jobs & profits will remain in Rupert, and there will be improved marketability of the Port.

Mayer also pointed out that while all parties have agreed to these terms, the agreement has not actually been signed yet. He said the signing was delayed by the federal election, and predicted the ink would be on the paper shortly after May 2.

Most of the terms of the agreement had been distributed by the Port in a backgrounder handed out on March 14, when then-minister of transportation Chuck Strahl made the official announcement. While Mayer gave a more in-depth examination of the details, there are still many unknowns, such as the exact dollar figures for the cash settlements, when Coast Tsimshian members would start seeing jobs, and how much training the jobs would require.

In an interview after the luncheon, Mayer told Muskeg News the parties in the agreement will likely discuss the release of further information after the execution of the final agreement.

When Strahl made the announcement last month, Garry Reece & Harold Leighton, the chief councillors at Lax Kw’alaams and Metlakatla (which comprise the Coast Tsimshian), praised the agreement in front of about 50 people gathered for the announcement.

“This deal brings us certainty that we can do business in partnership with our neighbours,” said Leighton in his remarks to the audience last month.

~Written by Chris Armstrong Muskeg News

More activity flows through Prince Rupert Port

2011-04-28T15:25:00.000-07:00

You are here: Home » News » Container port to see two more ships per week

Container port to see two more ships per week
Posted on April 18th, 2011 by MuskegPress in News

Although some details still need to ironed out, Fairview Terminal will see four container ships visiting each week, starting in May. That’s an increase from the two ships that currently make Prince Rupert a port-of-call each week.

Shaun Stevenson, the vice president of marketing & business development at the Prince Rupert Port Authority, said both COSCO and Hanjin are adding Prince Rupert to their Pacific shipping services.

COSCO (China Ocean Shipping Company) is planning to add Prince Rupert to its “South China Express” service, said Stevenson. He added this will see Rupert as the last port-of-call, after Long Beach, and before the ship heads west across the Pacific.

“We’re hopeful that’s going to be a real opportunity for exports for Prince Rupert,” said Stevenson.

Hanjin Shipping will also be sending a ship to Rupert as part of its Pacific Northwest Express Service. According to Hanjin’s website, its ships will arrive in Prince Rupert on Saturdays from Busan, South Korea. On Sundays, the ship will depart Rupert south for Seattle, Portland & Vancouver before heading back west to Busan.

In both cases, the new calls have their own distinct characteristics. Stevenson said the new COSCO call is unique in that it’s the last port-of-call before heading back west, and the Hanjin call provides a greater reach into the Korean market.

Stevenson also said there are some details that still need to be worked out, such as the exact date for the first calls, how large the vessels will be, and how much volume will be shipped through Fairview. Still, he said the addition of the two extra ships will help Fairview Terminal. “Certainly it’s going to contribute to a lot of growth, even in this calendar year,” he said.

The two new ships will also be visiting Fairview during a period of increasing capacity. In its year-end report on 2010 numbers, the Port Authority said 340,000 TEUs were shipped through Fairview last year, putting the terminal at almost 50 per cent capacity.

At this point, Stevenson said it’s difficult to determine how much volume will be increased with the two new ships. He said any expansion of the terminal will only happen after an ongoing environmental assessment is complete, which is expected by mid-2012. He said expansion plans are under review by the Port, CN Rail, and Maher, the operator of Fairview. The decision on when to expand will be a commercial decision by Maher, said Stevenson.

A press release sent out by the City celebrating the arrival of the two ships said “the increased activity will allow for an increase in shipment of back haul products to Asia.”

~Written by Chris Armstrong Muskeg News

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Ridley Terminals gets Federal approval to borrow from capital markets

2011-03-31T13:42:00.000-07:00

In a very quick turn around time for Government, the feds have allowed RTI to borrow the necessary funding for their proposed expansion plans from the capital markets. This enables the company to proceed with their ambitious expansion programme that was instigated by the upturn in export figures and the new five year contract with an American mine. Turnover is expected to double over the next five years and with the refurbishment of existing equipment and the installation of a brand new docking facility, their will be an immediate benefit in contruction employment followed by an estimated 50 new full time jobs.
This announcement comes only two weeks after the Port of Prince Rupert announced that First Nations agreements have been signed and construction of phase two of the port will begin in 2012.
At the rate these positive announcements are being made I will probably be updating this blog daily. If you have yet to buy property in Prince Rupert or Port Edward I suggest you get a move on. 250-622-8546 gets you access to every residential and commercial listing.

Federal budget failure may impact Ridley Island expansion plans

2011-03-25T11:29:00.000-07:00

The federal budget released on March 22 proposed financial support for the expansion of Ridley Terminals Inc, allowing it to borrow from capital markets to fund its expansion plans.

But those plans may be put on hold for the time being if opposition parties defeat the budget in the House of Commons this week, which would trigger an election.

It doesn’t look promising. All three opposition parties have already expressed opposition to the budget, citing shortcomings on a variety of issues. “Overall, it was a net disappointment,” said Skeena-Bulkley Valley MP Nathan Cullen in a teleconference with reporters Tuesday afternoon. “I think an election is definitely on its way.”

A non-confidence motion will be introduced in the House of Commons Friday afternoon (eastern time), which will probably cause the government to fall and trigger an election. The budget bill would die on the floor.

But not everyone wants that to happen. Bud Smith, chair of Ridley, supported the budget, especially its reference to “approval for the borrowing that is critical to our expansion plans.”

In an email to Muskeg News, Smith didn’t say the budget’s defeat would stop expansion at Ridley. But he said the defeat wouldn’t help with expansion.

“Clearly not passing the budget won’t help RTI create its new capacity and add additional jobs that new capacity will bring to Prince Rupert,” Smith wrote.

Smith’s email also said four government ministers are working with Ridley today to try and get the borrowing approved before an election begins. “If their efforts prevail RTI will move ahead as scheduled,” he wrote. “If not then not passing the budget will hurt RTI and all who depend on RTI.”

There is work being done without the help from the budget, however. Smith wrote that engineers are continuing their design work, and the company is also buying a new replacement dumper system, which will be installed this December. Ridley will pay for the dumper through its own cash flow, he wrote.

Ridley Terminals is a Crown Corporation under broad policy direction from the government of Canada. It operates as a commercial entity through revenue received from its shipping activities. Although revenue has been increasing steadily, government contributions of $8.1 million and $1.8 million were provided in 2005 and 2006 when the corporation could not meet its financial operating requirements.

Things appear to be getting better, however. Throughputs at the terminal reached record levels in 2010, and are expected to increase in coming years with continued growth of the coal market.

According to data from the Prince Rupert Port Authority, Ridley shipped over 8 million tonnes of throughput in 2010, most of it coal. And, at the end of January, the terminal signed a contract with Arch Coal, based in St. Louis, to ship at least 2 million tonnes of coal each year until 2015. The Arch contract will contribute to expansion plans that have been in the works for the past few years.

According to a press release from August 2010, RTI is currently undergoing improvements to its facility and equipment to better meet customer demand.

Ridley Terminals ships metallurgical and thermal coal, as well as other bulk commodities. It operates 24 hours a day on land leased from the Prince Rupert Port Authority. The terminal has an annual shipping capacity of 12 million tonnes, and the possibility for expansion to 24 million tonnes. The terminal uses a computer-based technology for rail car unloading, product storage, and vessel loading.

~Written by Liz Williams, with files from Chris Armstrong. Story first appeared at www.muskegnews.com

Federal Government and Prince Rupert Port signs historic agreement with First Nations

2011-03-18T14:10:00.000-07:00

Minister of Transport Chuck Strahl visited Prince Rupert on Monday 14th March 2011 to announce an agreement reached between the government of Canada, the Prince Rupert Port Authority, and the Coast Tsimshian (Lax Kw’alaams & Metlakatla) to expand the Fairview container terminal.

“We’re building a foundation for the future,” said Strahl in his remarks in front of about 50 people in the maintenance building at Fairview. “That future involves first nations, and that’s a great thing.”

Strahl and other speakers – including Chief Councillor Harold Leighton of Metlakatla and Chief Councillor Gary Reece of Lax Kw’alaams praised the agreement as contributing to economic growth while recognizing aboriginal title, but they offered few details on what it actually contained.

“This deal brings us certainty that we can do business in partnership with our neighbours,” said Leighton in his remarks to the audience.

According to a backgrounder distributed by the Port, the agreement lasts 40 years and pertains to “consultation and accommodation for potential infringements of aboriginal rights and title arising from the construction and operation of Phase I and Phase II of the Fairview Container Terminal.”

The backgrounder also states there will be payments from the Port and the government of Canada, as well as a transfer of land from the Province to the Coast Tsimshian and a lease-back from the Port. The agreement also features “sole source contracting opportunities for PRPA projects valued at over $20 million.”

Exactly how much money and how much land are at question is unknown except to those involved in the negiotiations. More details may be made public once the agreement is officially signed in a few weeks.

TV interview by me giving 2011 market forecast

2011-01-20T17:01:00.000-08:00

Cut and paste link below into your browser:

http://link.brightcove.com/services/player/bcpid635367743001?bckey=AQ~~,AAAAFkZm_Lk~,RgNz2P-QnEWnjO-WbPFz7Dy2e8FjBuUq&bclid=626213098001&bctid=739602024001

Ridley Terminal signs new long term contract

2011-01-20T16:57:00.000-08:00

Ridley Terminals today signed an agreement with US –based Arch Coal that will see the facility in Prince Rupert ship two million metric tonnes of coal in 2011 and 2.5 million metric tonnes of coal from 2012 through to 2015.

"RTI's vision is to provide value to its parent company and expand its role as a leading trade gateway between North American and world markets," said George Dorsey, president of Ridley Terminals.

“This agreement is a very important contract for the terminal. Arch Coal's guaranteed U.S. coal volumes will support our goal of doubling our capacity by 2015."

The contract comes just after Ridley Terminals shattered the previous record by shipping almost 8.3 million tonnes in 2010, almost doubling the throughput of 2009

2010 population statistics paint picture of growth for Prince Rupert

2011-01-20T14:12:00.000-08:00

Reprinted with permission from Muskegnews.com

Over the last few years, as Prince Rupert got kicked around by the economy, the city’s population estimates were frequently revised downwards by word on the street. The official total from the Canadian census is 12,815, but that’s a number from 2006, back when the town was going through a mini-boom. The more pessimistic folks downgraded that total by almost 30 per cent, and argued the town’s population had whittled down to 9,000.

But on January 14, the provincial statistics agency released its official estimate to communities across B.C. In that report, B.C. Stats estimates Rupert’s population in 2010 was 12,994, up one per cent from its 2009 estimate of 12,863.

“It’s good to hear they’re projecting a slight bit of growth,” said Mayor Jack Mussallem.

According to the B.C. Stats report, titled 2010 Sub-Provincial Population Estimates, the numbers are generatd using the “Generalized Estimation System.” And, since it’s an estimate, it may not be completely accurate. For instance, B.C. Stats estimated Rupert’s population to be 13,072; Statistics Canada, through the census, said it was 12,815. Still, that 2006 number is only off by 257 people.

Across the province, the Okanagan Valley saw big drops in its population — Summerland’s dropped by 2.2 per cent, Oliver went down five per cent, and Penticton dropped 0.6 per cent. The biggest population gain happened in Langford, on Vancouver Island, which saw a 6.6 per cent increase. For the most part, though, most of the gains were seen in and around Vancouver: Surrey (3.4 per cent), North Vancouver (3.6 per cent) and New Westminster (2.8 per cent) were among the top ten growth municipalities.

Mussallem credited the growth in shipping and port traffic as reasons for Rupert’s one per cent increase. While the City will not see any practical benefits to the higher number, he said the growth in population may bring more funding from provincial and federal ministries.

With all that, we won’t know the official population until the census is released. The count will happen this May, and the population numbers for communities across Canada will be released in February 2012.

~Written by Chris Armstrong

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Population estimates of selected communities in B.C.

Name 2009 estimate 2010 estimate Increase/decrease ( %)

Prince Rupert 12,863 12,994 +1.0
Terrace 11,690 11,931 +2.1
Kitimat 9,238 9,178 -0.6
Masset 930 920 -1.1
Smithers 5,328 5,408 +1.5
Williams Lake 11,104 11,002 -0.9
Dawson Creek 11,529 11,860 +2.9
Fort St. John 19,482 19,873

Mortgage lending rules tightened by Federal Government

2011-01-17T13:55:00.000-08:00

The Federal Government today announced three changes to existing rules governing lending criteria for residential real estate;

1. The maximum amortization period is reduced from 35 years to 30 years.
2. The maximum amount of the value of a home that can be re-financed will drop from 90% to 85%.
3. Government insurance will no longer be available to financial institutions wishing to insure home equity lines of credit.
All of these changes are designed to ensure that borrowers do not borrow more than they can repay.
A link to the government announcement is here - http://www.fin.gc.ca/n11/11-003-eng.asp

Record month for Ridley Coal Terminal

2010-12-20T09:11:00.000-08:00

The export of coal from Prince Rupert continues to go from strength to strength. Whilst the record breaking figures for 2010 are great news, the forecast looking forward shows both stability and growth.

Dennis Blake, the senior manager at Ridley, said the company is marking the “single busiest month in our history” this December.

By December 14, said Blake, the company had already shipped 600,000 metric tonnes of metallurgical coal, thermal coal and petroleum coke. He projected that another 1 million metric tonnes of product would be shipped through the terminal for the rest of December.

Blake also predicted the annual total for 2010 would be 8 million metric tonnes — almost double the total amount shipped in 2009 of 4.2 million metric tonnes.

The reason for the increase, said Blake, is twofold. First, there has been a huge increase in demand from China for Ridley’s products. And second, the other terminals in B.C., in the Lower Mainland, are at or near capacity. Ridley is the prime benefactor of those two trends.

The record-breaking year was predicted by Ridley Chair Bud Smith & Minister of State for Transport Rob Merrifield during a press conference held at the terminal on August 17. By that time, the terminal had already shipped 3.9 million metric tonnes for 2010.

Last year, the terminal brought in revenues of $25 million. According to Ridley Terminal Inc.’s 2009 annual report, demand for its products is expected to grow until at least 2014.

Speculation mounts following good news week for Canpotex

2010-11-04T11:31:00.000-07:00

The story so far; Multi-Billion dollar organisation Canpotex plans to build a new export terminal in Prince Rupert to ship their product to the Asian markets. Then the recession turns up and everything gets put on the back burner as international demand for potash collapses. Then, The largest member of Canpotex, The Potash Corporation of Saskatchewan became the target of a hostile takeover bid from Australian mining company BHP Billiton.
This week saw three announcements that can only be viewed as positive.
Firstly, the Canadian government, after a huge amount of pressure from every Province, blocked the potential sale to the Australian company. Secondly, Canpotex announced a $2.2 Billion sale to Sinofert of China. Thirdly, Canpotex announced a three year contract with Tata Chemicals of India at an undisclosed price but obviously worth a large sum of money.
So, the threats to the future of Canpotex have been removed and they are once again seeing demand rise for their product and are writing new business with the Asian market.
Given this hat-trick of glad tidings the question remains; will Canpotex announce that they will begin construction in Prince Rupert? I don't know for certain but the conditions to do so have never looked as favourable as they do right now.

Real estate activity report quarter 3

2010-10-12T16:22:00.000-07:00

96 properties worth $16.5 million changed hands so far this year compared with 82 properties worth $13.8 million to the end of September, 2009. Of the 80 single family homes that have changed hands so far this year, half sold for less than $177,000 ($178,000 in 2009) and on average, took 127 days to sell (138 days in 2009). The average sale price for single family homes YTD is $189,815. At the end of September there were 257 properties of all types available for sale through MLS® in the Prince Rupert area, compared with 241 last September.

Economic good news from Prince Rupert Port CEO

2010-10-01T16:08:00.000-07:00

Don Krusel, President and CEO of Prince Rupert Port is very confident about the future of both the port and the city of Prince Rupert. This is what he had to say about the year 2010 so far and also provides a sketch of what the future holds for our amazing city:

2010 a turning point for the Port of Prince Rupert

The Port of Prince Rupert experienced one of its best years in recent history in 2009 and 2010 is unfolding to be an even better year. We were very pleased to be able to stand before the community at our Annual Public Meeting in June and share our outstanding performance, financial success and exciting plans for the future.
As our Board of Directors Chair Dale MacLean noted at the public meeting, the Prince Rupert Gateway has, in just three short years, transformed from a regional port into a global gateway for transpacific trade. This is evident in the substantial year-over-year increase in container volumes through the Fairview Terminal: from 36 per cent of the terminal’s capacity in 2008, to 53 per cent in 2009 and a projected 72 per cent by the end of 2010.
The Board Chair also noted that our success is due to the commitment and collaborative efforts of the partnership we have with CN, Maher Terminals and the International Longshore and Warehouse Union workers. We have become a formidable force, along with COSCO and the CKYH Alliance, which we have to continue to strengthen if we want to realize our full potential. We must also thank our other important port community partners, from the trucking and transloading businesses to the tug and piloting operations, who are working diligently with us to offer our shipping customers unparalleled, world-class services.
Of course, the Port of Prince Rupert is not just about handling containers. All terminals are contributing to our overall strong performance. Prince Rupert Grain is having another good year and its reputation as the highest throughput grain terminal in Canada has been further enhanced with the “Grain Handler of the Year” award from the Canadian Wheat Board. Ridley Terminals is experiencing the best year in its history and is planning for future growth and expansion. We congratulate the management and staff of both terminals for their significant accomplishments.
More importantly, all terminals and other port operations are significantly contributing to the economic prosperity and well-being of the people and communities in the region and along the northwest transportation corridor. The Economic Impact Study commissioned by the Port Authority and released in April show the Port of Prince Rupert is responsible for 2,700 full time jobs and $150 million in wages annually. Our plans currently underway to grow and expand the port to include additional terminals, logistics parks and other services will create many more jobs and business opportunities.
In addition, our recent financial success is finally giving us the opportunity to reinvest in our local communities’ economic and social well-being as well as the environment. The Community Investment Fund is based on a percentage of the Port’s net income generated from the previous year’s revenues.
The Port Authority is looking forward to many years of continued financial success for the Port of Prince Rupert to help our communities prosper and grow.

Don Krusel
President & CEO
Prince Rupert Port Authority

Long awaited Pulp Mill sale almost announced

2010-09-23T13:51:00.000-07:00

Three groups that have been at loggerheads over the future of Prince Rupert’s harbour have put aside differences, at least for now, to enter in to an exclusivity agreement with the City of Prince Rupert to negotiate a purchase of the Watson Island site.
According to a press release put out by the City earlier this afternoon, the Metlakatla Development Corporation, Lax Kw’alaams and the Prince Rupert Port Authority have begun a joint venture and are “considering the acquisition of the Watson Island site from the City of Prince Rupert.” With due diligence and a feasibility study, the whole process could take anywhere from six months to a year, states a press release put out by the City.
The key for the City is that it will no longer be required to pay for the maintenance costs at the old mill site during the length of the deal: in exchange for exclusivity rights, the joint venture will pay for the maintenance costs at Watson Island, states the press release. Maintenance, minus the external costs for security on site, has come with a $600,000-plus price tag since the city took ownership fo the site in September 2009.
The tripartite agreement between the Prince Rupert Port Authority and Tsimshian nation leadership in Metlakatla and Lax Kw’alaams appears to signal a warming of the cool relations between the stakeholders, who have yet to sign a protocol agreement that would set out the formal relationship between both sides – a fact that has frustrated aboriginal leadership in the past.
According to Shaun Stevenson, the Port’s vice president for marketing & business development, the deal was not of the Port’s making. “We were approached by representatives of the Coast Tsimshian to consider this opportunity and thought it was a good project to explore,” explained Stevenson in an email. “Through our broader dialogue with First Nations groups, the concept of joint ventures figures prominently as a strategic opportunity to create economic development and opportunity in the community and region.“
The deal could prove to be a testing ground for both stakeholders to see how well they can work together.
“For the PRPA, if the acquisition proves of value, this could be an opportunity to pilot Joint Venture businesses with First Nations groups, acquire another asset to support the growth and expansion of the Port, creating more economic opportunity for the community and region,” stated Stevenson in the email.
While the deal is slated for six months to a year, it could go longer depending on the needs of the new partnership.
A peculiarity of the Wednesday afternoon announcement was that it was not publicized by the partners of the joint venture, but by the City through a press release. Mayor Jack Mussallem said the city wasn’t intending to jump the gun on this announcement, but that it was important to let the community know as soon as possible the City had entered in to an exclusivity deal.
“We are getting a lot of enquiries regarding the site and we wanted people to know that there is now a group that is looking at it and make residents aware who that is,” said Mussallem.
Mussallem also said CN was never the transportation firm that he alluded to in previous articles published regarding the mill site. It appears that firm was indeed the PRPA, who have replaced the North American Indian Charter of Shipping and Trade Inc. as the main partner in place to make the purchase.
While Prince Rupert has put the mill on the auction block for $13 million, the PRPA may yet have other ideas as to the value of the site. In his email, Stevenson said the Port will now move forward with a due diligence process that will include completing a physical and environmental assessment of site, identification and assessment of the business opportunities that could be accommodated on the property to determine its utility, and development potential to the joint venture partners. From all this information, they will work a determination of value.
(With thanks to George T Baker of Muskegnews.com)

More investment announced for Port

2010-09-16T11:32:00.000-07:00

Stockwell Day, the Minister for the Asia Pacific Gateway was in Prince Rupert on September 15th to make an important and unique announcement. A new $3.5 million investment will be made in the port which will enable all container ships to access shore power. This will be the only port in Canada with this facility. There are two major benefits to this new arrangement;
1. Ships will no longer have to keep their engines running to supply power to on-board systems whilst loading and unloading. This will save the shipping lines' money which makes Prince Rupert Port even more attractive to international shippers.
2. As the engines will be off, there will be a considerable environmental advantage as air and marine pollution is expected to be severely reduced.
The port is now operating at 80% capacity and it is surely only a matter of time until the powers that be have to begin breaking ground on the expansion of this huge Canadian success story.

2010-08-13T11:57:00.000-07:00

The market is in an interesting place at the moment. July and August are traditionally slow in Rupert as families head South for the the sun and thoughts are mainly away from real estate. The hope is that once families return from their summer holidays with the kids that the market will pick up. This is what normally happens.
I am presently working on a new advertising medium that I hope to run in early september. This will replace the considerable advertising that I lost when the Daily News closed down. The hope is that the timing will coincide with the return to school and also any announcements that are made regarding Ports, Pulp Mills and Potash.
The rumour factory has been going full tilt lately and nearly all of it has been positive but until we get an actual announcement or three the market remains fairly static.
This year is much better than last; sales volume is up by 50%; but it needs to be remembered that 2009 was particularly awful.
The number of listings on the market remains high; there are presently 156 residential properties on the market. This means that we are still in a buyer's market. Sales are happening however; in fact the average sale price has risen by 5% on 2009.
My conclusion is that the market is now off life support and is in the convalescence stage of recovery. A natural uplift is expected in September with, we all still hope, a very sudden uplift in activity caused by economic announcements being made.
I remain optimistic that a bright future awaits Prince Rupert.

Prince Rupert realty bucks downward trend

2010-07-19T16:08:00.000-07:00

After a slow 2009 the market in Prince Rupert continues to outpace other Northwest communities. In the first six months of 2010 71 properties sold in Prince Rupert compared to 44 in 2009. In dollar terms, $13.7 million compared to $7.4 million in 2009. The median price is $187,000 with average days on the market coming in at 141. At the end of June there were 262 properties on the market.
Prince Rupert is the only community in the Northwest to have seen an increase in sales this year. Terrace fell from 134 in 2009 to only 94 in 2010 while Kitimat saw a small decrease from 48 to 45. There were also fewer homes listed at the end of June 2010 then there were at the end of June 2009; in Terrace there are 316 properties listed, up from 281 in June 2009 and Kitimat jumped markedly from 128 to 160.
The interesting question is: why? Why has Prince Rupert's real estate market improved by 61% over a 12 month period? Why has the surrounding communities markets not followed suit, indeed headed in the opposite direction?
My answer is this; opportunity and getting ahead of the competition. Prince Rupert stands on the threshold of an unprecedented economic boom and savvy investors from the Lower Mainland and Alberta particularly have been arriving in town and cherry-picking some prime real estate before the announcements are made because that is when the greatest value can be realised.
Folks in Prince Rupert sometimes fail to look at the City from an outsiders point of view. The outsiders are looking and seeing value at every turn, the locals are, to a certain extent, burdened by memories of potential booms in the past that never quite materialised.
Real estate has no memory. It is only concerned with economic fact or possibilty, not with history.
This buyers market is coming to an end.

Good news, bad news cycle continues in Rupert

2010-07-06T09:24:00.000-07:00

First, the good news. Coast Tsimshian Resources (CTR) have agreed a deal with Chinese company Xinyixinrun Plywood Manufacturing to sell 193,000 cubic metres of logs and custom cut lumber over the next year. This doubles the company's turnover overnight and is projected to create 150 new jobs in Prince Rupert and Terrace.
Also, Canada and China have signed a formal agreement establishing Approved Destination Status between the two nations. This allows easier access into China from Canada and vice versa. Chinese visitors to British Columbia are expected to increase by 15% next year, good news for both business and tourism.
The bad news is that after 100 years The Daily News, Prince Rupert's only daily newspaper is closing its doors. The ownership has changed hands with the new owners, Black Press, immediately announcing its intention to close the paper down. It cannot be mere coincidence that Black Press owns the only other newspaper in town, a weekly publication called The Northern View.
The loss of The Daily News will be keenly felt in the community and I hope that some accomodation can be reached that means we continue to have our local paper. Alas, the global depression that has engulfed print media over the last ten years appears to have claimed another victim.

Joint venture with BCSPCA

2010-06-01T15:42:00.000-07:00

As of June 1st 2010 I am extending my existing Charitable Donation Scheme to the General Public. I recently began offering members of the RCMP, Coastguard, Canada Border Services Agency, Northern Health Authority and the Fire Department a donation of $250 to a charity of their choosing for using my Realty services, either as a buyer or a seller.
From now on, I will donate $250 to the Prince Rupert branch of the BCSPCA for every completed home sale I handle. I have supported the BCSPCA for the last seven years with my quiz nights at the Moose and this is my way of giving back to an organization that is in dire need of additional funding.
There are no strings attached to this offer. If you find a home as a buyer using my services or sell a home with me as your Realtor then BCSPCA will receive $250.
All of the monies raised stay in Prince Rupert for the benefit of Prince Rupert’s citizens, two and four legged.

Potash industry in startling recovery

2010-05-04T16:15:00.000-07:00

The link below is very interesting for anyone interested in the overall outlook for the potash industry.
To summarise; potash has rapidly returned to profit after the recession. Future investment plans are being revisited. We still await good news for Prince Rupert but this economic news about potash can only bode well.
http://www.potashcorp.com/news/949/

Indications remain positive for Rupert economy as Prince Rupert Port Authority announces record first quarter and new industrial investment begins

2010-04-23T13:31:00.000-07:00

Good news. Prince Rupert Port Authority has announced record traffic numbers for the first quarter of 2010. The port handled 87% more traffic in the first three months of 2010 compared to last year. Overall, container traffic in 2009 increased 46% against an industry average drop of 15%. Government also rejoiced at this North Coast success story as the total tax collected from these efforts was $35 million last year alone. Plans for further expansion are already well advanced as the Port looks towards a long term target of diversifying the present operations into bulk handling, general cargo and a state of the art logistics centre by 2020. In terms of jobs, the port has so far created 2,720 full time jobs (1,300 in direct operations) and has a long term target of a staggering 9,100 by 2020.
There can now be no doubt that this project is here to stay and will provide long term prosperity for Prince Rupert and its citizens.
Spin off industries are now beginning to evolve as evidenced by the activities out at the industrial park. The old sawmill site is now home to a new debarker which will greatly increase the range of log sizes that will be available to the export market. With the world economy recovering from the recession this is another positive example of a Rupert company looking towards the future with optimism.
News concerning the Pulp Mill and Canpotex is now eagerly awaited.

Prince Rupert Transportation Links - benefits to business

2010-04-07T16:10:00.000-07:00

An interesting report detailing exactly how the various transportation options available operate within Prince Rupert and beyond. Vital information for anyone planning to invest in Prince Rupert's growing future. Please follow the following link and find the report entitled Prince Rupert Transportation Links Profile.
www.predc.ca

Real Estate Update March 30th 2010

2010-03-30T15:18:00.001-07:00

Hurry up and wait.

There is, as usual, three types of news; Good News, Bad News and No News.
The good news is that the market has picked up in the last couple of weeks. We have gone from stagnant to trickling in very short order. We are a long way from raging busy but at least there are signs of life at last.
The bad news is that interest in investment properties remains low. A few tentative enquiries from out of town but nothing that has led to any activity. This is true for residential property such as duplexes and commercial property both storefront and otherwise. Everyone appears to still be waiting for the good news regarding Ports, Potash and Pulp Mills.
The No News is regarding Ports, Potash and Pulp Mills.
No News about the second phase of Prince Rupert Port going ahead.
No News about Canpotex investing in Prince Rupert.
No News about the bids for the Pulp Mill.
This means that the associated industries that would spring up to support these major projects are also on hold awaiting confirmation of one, some or all of the above.
If we do get all three announced this year I imagine I will be having a very busy time!
As things develop I will update you and my blog.

Many thanks,

Keith Lambourne

How does HST affect Real Estate?

2010-03-29T14:50:00.000-07:00

The BC government announced on July 23, 2009 that BC would harmonize its 7 percent PST with the GST to create a 12 percent HST on most GST-taxable goods and services provided in BC.
The HSTs will generally apply to the same tax base as the GST, with some exceptions.
The HST will be federally administered by the Canada Revenue Agency (CRA). GST/HST registered businesses will only be required to file one GST/HST return and there will be one audit.
How will Sales Tax Harmonization affect Real Estate transactions?
The sales tax treatment of GST registered REALTORS® services will change. GST registered REALTORS® will be automatically registered for the HST. Rather than REALTORS® commissions being subject to GST at the rate of 5 percent, REALTORS® commissions for services in Ontario and British Columbia will generally be subject to HST at the rates of 13 and 12 percent respectively.
When will the HST Apply to REALTORS® Services?
As mentioned, HST will generally apply to the same tax base as the current HST. Also, GST registered REALTORS® will be automatically registered for the HST. As a result, REALTORS® will apply HST to the fees for their services that are currently subject to GST.
Still, GST/HST registered REALTORS® will need to take into account the province in which their services are performed and the timing of their services during the transitional period for purposes of determining whether GST or HST applies.
Place of Supply
At the date of writing this article, Ontario and BC have not published the technical rules explaining how a GST/HST registrant is to determine if a good or service is supplied in or outside Ontario or BC. However, based on the rules that were implemented for sales tax harmonization in Quebec and BC, we can make some reasonable assumptions about how the place of supply of REALTORS® services will be determined for Ontario and BC HST purposes.
The HST will likely apply to REALTORS® services based on the location of the real property to which the REALTORS® services relate. For example, Ontario HST will apply to a REALTORS® commission for services in respect of a house sale in Ottawa, Ontario.
Transitional Rules
Ontario and BC recently released general transitional rules for the HST. These rules explain how HST will apply to transactions that straddle the start-up date. For purposes of the following discussion, it is assumed that a REALTORS® commission becomes due or is paid when the property is sold or leased.
The HST would generally apply to REALTORS® services to the extent, expressed as a percentage, that the services are performed on or after July 1, 2010. However, if 90 percent or more of the services are performed before July 1, 2010, the HST will not apply.
For example, a REALTORS® services are performed from June 1, 2010 to July 2, 2010 with the sale of the property closing on July 2, 2010. The REALTORS® commission becomes due at that time of closing. More than 90 percent of the REALTORS® services were performed before July 1, 2010. In these circumstances, the GST at the rate of 5 percent will apply to the REALTORS® services.
In another example, a REALTORS® services are performed from May 1, 2010 to July 31, 2010 with the sale of the property closing on July 31, 2010. The REALTORS® commission becomes due at that time. In this case, two thirds of the services were performed from May 1, 2010 to June 30, 2010 and one third of the services were performed from July 1, 2010 to July 31, 2010. The REALTORS® will charge GST on two thirds of the amount charged for the services and HST on the remaining third.
Will REALTORS® Recover the HST they Pay on their Costs?
REALTORS® will generally be able to claim ITCs for the HST on their purchases on the same basis as the current GST system.
What is the Impact of HST on Real Estate Transactions?
The HST treatment of real estate transactions will generally follow the current GST treatment of real estate transactions. Sales of used residential housing and long-term rentals of residential housing will be exempt for HST purposes. Sales of new residential housing will be subject to HST and will qualify for GST, HST, and transitional rebates (subject to certain thresholds and maximum amounts). Sales and rentals of commercial real property will be subject to HST.

Why should I invest in Prince Rupert?

2010-02-15T14:09:00.000-08:00

There is an old adage for Stock Market investment; buy on the rumour, sell on the news. The majority of my previous blogs deal with the potential large scale investments that will, if they all succeed, herald a new beginning for Prince Rupert.
This blog serves as a brief summary of the facts as they stand today.

1. Prince Rupert Port Authority. Prince Rupert's new port has been a great success. In 2009, whilst every port on the West Coast of Continental North America lost volume, Prince Rupert increased theirs by 45%. The owners, Maher Terminals are already planning an expansion programme that should begin in 2011. The port has two major advantages; 38 hours closer sailing time to Asia and the third deepest natural harbour in the World.

2. Canpotex. Canpotex, a multi-billion dollar company that exports potash around the World, is considering locating a new export facility in Prince Rupert. If they choose Prince Rupert the immediate benefit to the local economy will be in construction but the real benefit is the long term employment once the site is operational. It is felt that if Canpotex chooses Prince Rupert other companies will follow.

3. Watson Island Pulp Mill. The Pulp Mill has not been operational for ten years. The City of Prince Rupert now own it and have put it up for sale for $13M. They have had six bids and are in the process of deciding which one to accept.

4. Buyer's market. Prince Rupert is still a buyer's market for Real Estate but signs are that this is changing. The amount of property on the market has decreased markedly in the last four months due to two significant factors;
the speculation has resulted in the renovation properties up to $100,000 being bought by Flippers; people are waiting for the announcements regarding these investments to be confirmed before listing their properties in order to realise a better sale price.

Conclusion: There is a best case, medium case and worst case scenario;

Best Case: All of the potential investments happen and the local Real Estate market booms.
Medium Case: Only one of the investments happen and the local Real Estate market increases substantially from its low.
Worst Case: None of the investments happen and Prince Rupert carries on as it presently is.

Opinion: There is too much interest from too many major players for Prince Rupert not to have a bright future. The fact is that if we can attract one big name the rest will assuredly follow.

Multi-Billion Dollar company looks to invest in Prince Rupert

2010-02-15T13:50:00.000-08:00

Canpotex – The story so far

Who are Canpotex? Canpotex is the marketing arm of the three largest potash producers in Canada – Agrium, Mosaic and The Potash Corporation of Saskatchewan.
What is potash? Potash is a naturally occurring mineral that is primarily used in fertilizers.
What is the market? Huge. The worth of these three companies is measured in the Billions. Asia and particularly China is a massive importer of potash.
What has Canpotex got to do with Prince Rupert? The Asian market for potash is already large but is forecast to expand as the Chinese economy continues to grow. Potash is used to grow food so demand is always in existence. Canpotex has plans to expand its West Coast shipping capacity to meet this demand. They have been looking at two possible solutions;expanding an existing site in Vancouver or building a new terminal in Prince Rupert.
Why would Canpotex choose Prince Rupert over Vancouver? Surely expanding the existing site in Vancouver would be cheaper than constructing a new facility in Prince Rupert? According to Canpotex, the costs of expansion in Vancouver are roughly the same as the costs of building a brand new facility in Prince Rupert. Prince Rupert has several advantages over Vancouver:
1. Prince Rupert is 38 hours closer sailing to Asia than any other West Coast port in continental North America.
2. Prince Rupert has a very skilled and very loyal work force. My opinion is that labour can be sourced in Rupert that would stay with Canpotex for a long time. In Vancouver the job market is much larger so workers tend to change jobs more often. I believe that the benefits of worker loyalty will form a significant part of Canpotex’s decision making process.
3. Prince Rupert’s pool of skilled workers is already high, however the recent closure of the Eurocan Pulp Mill in Kitimat has put an additional 500 skilled workers into the local area jobs marketplace.
4. A public meeting was held at the local theatre six months ago where representatives from Canpotex, CN Rail and Prince Rupert Port Authority answered questions about the proposed site in Prince Rupert. The capacity of the theatre is 700. 700 people showed up with an overwhelming show of support for the project. The citizens of Prince Rupert are firmly behind this project and will do all they can to ensure its success.
5. An understanding has been reached between Canpotex, Provincial and Federal Government and First Nations that resolves all land issues enabling Canpotex to proceed with the project in Prince Rupert.
The original timetable discussed at the public meeting gave a date of December 2009 as when an announcement would be made regarding the location of the new facility. This announcement has been delayed, probably due to the volatility of the post-recession world economy.

Conclusion: The introduction of a large operation like Canpotex to Prince Rupert will be a massive boost to our city. Not only will there be an influx of jobs as a direct result of their entry into Prince Rupert but the message will be sent to the world marketplace that Prince Rupert is open for business. The extraordinary success of Prince Rupert Port proves to the world that big business can operate effectively, efficiently and profitably from our wonderful city and as the public meeting showed, the residents of Prince Rupert are ready to welcome Canpotex with open arms. I am hopeful that the extensive list of benefits that Prince Rupert possesses will be sufficient to persuade Canpotex to locate their new facility here.

Six bids for defunct Pulp Mill meet $13.5M asking price

2010-02-15T13:12:00.000-08:00

The City of Prince Rupert, who took over ownership of Watson Island Pulp Mill in Port Edward following Sun Wave's inability (or unwillingness) to pay their outstanding property tax bill, have received six offers to purchase that meet the $13.5M asking price.
Details of the bidders are a closely guarded secret although Lax Kw'alaams Band has made their involvement public knowledge.
The site, one of the few deep water harbourages in North America with direct docking access to land plus a railway line going into the middle of the site, is situated 15 highway kilometres from the new port development in Prince Rupert. The hope of the citizens of Prince Rupert and Port Edward is that whoever the City eventually sell the site to it will provide some long-term, well paid permanent jobs. The old Pulp Mill employed 650 people in its prime and whilst it is probably overly optimistic to assume that that many jobs will be created by whatever new enterprise buys the site, the fact that six bids have been received surely bodes well for future employment.
The City of Prince Rupert is still poring over the respective bids and are 100% leak free on who the bidders are.
The interest in this sale is not restricted to the citizens of Prince Rupert and Port Edward. Speculative purchases of property which have dried up in the last two years are beginning to pick up again as investors realise that in order to achieve the best return on investment they have to buy on the rumour and sell on the news.
With the Watson Island Pulp Mill sale in the pipeline and continued optimism surrounding the potential investment in Prince Rupert by Canpotex, what other companies that we have not heard about are in the background waiting to take advantage of all the geographical advantages that Prince Rupert has to offer?

2009 real estate statistics for Northern BC

2010-02-02T15:41:00.000-08:00

Residential Activity

Resale housing activity in the area served by the BC Northern Real Estate Board posted the first increase in sales in 10 quarters in the fourth quarter of 2009.

Home sales numbered 852 units in the fourth quarter, jumping 33 per cent from year-ago levels. This is the largest increase in more than five years, and is a result of strong gains in all three months of the quarter, particularly the 65 per cent increase in December.

Seasonally adjusted activity was up 15 per cent on a quarterly basis (seasonal adjustment removes normal seasonal fluctuations). Building on two consecutive increases, seasonally adjusted activity now stands 51 per cent above the low from the beginning of the year.

Annual home sales activity declined 10 per cent from 2008, numbering 3,618 units.

Active listings declined year-over-year in the fourth quarter. Combined with a sharp rebound in sales activity, this resulted in a tighter market for single detached homes compared to the fourth quarter of 2008.

With a tighter market in almost all areas served by the BC Northern Real Estate Board, homebuyers took less time to shop.

The median sale price for single detached homes was $230,000 in the fourth quarter of 2009, four per cent above year-ago levels. This is the highest median price for the fourth quarter period.

Median sale prices rose on a year-over-year basis in Prince George, Fort St. John, 100 Mile House, Williams Lake, and Smithers, and were down from year-ago levels in all other areas. The median sale price remains highest in Fort St. John.

In Prince Rupert the median sale price of a residential house in Qtr 4 2009 was $163,000, down from Qtr 4 2008's figure of $176,750. The consensus of opinion is that the bottom of the market has now been reached and that this years buying season will see a return to a balanced market from a buyer's market.

More upbeat economic news for Prince Rupert

2010-01-26T16:53:00.000-08:00

If you are unfamiliar with the City of Prince Rupert allow me to paint a short picture for you.
Prince Rupert is situated on the North West coast of British Columbia in Canada. Ten years ago the largest employer closed leaving the city in a perilous position. The population declined from 17000 to 10000 as people left looking for work.
Three years ago the New Container Port of Prince Rupert opened. Taking advantage of the gifts geography provided (Prince Rupert is 38 hours sailing closer to China than any other West Coast port in North America) the Port of Prince Rupert has gone from strength to strength.
In 2009, during the worst recession in living memory, Prince Rupert Port Authority saw a staggering increase in container traffic of 45.9%. Plans are well advanced to expand the port and the much vaunted second phase is scheduled to begin construction in 2011. In addition, the CEO of PRPA, Don Krusel, is in ongoing talks with a variety of businesses about setting up shop here in Prince Rupert.
Given the turbulent recent history of this incredible city it is gratifying that the boom years appear to be returning to the North Coast.
The recession had the same effect on Real Estate prices in Prince Rupert as they did everywhere else; prices are 15-20% lower than their high two years ago. This high is nowhere near the elevated prices of Vancouver and the rest of the lower mainland - the average selling price in 2009 for a detached house was $173,500. These bargain rates are not forecast to be available for long.
More detailed information is available all over the place but a good place to start, unsurprisingly, is my website which has links to the City of Prince Rupert and a whole host of other information sources. www.realestateprincerupert.com