This year’s local construction outlook might be better than last year

Construction values in Moose Jaw last year were far below expectations but the spirit of Next Year Country keeps the city poised for an above average year.

Once a terribly weak December’s building permits were tallied by city hall, construction values increased barely two per cent to $40.3 million last year over 2016.

The outlook was optimistic going into last year with a planned $50 million investment in a pea protein extraction plant and a solar farm expected during the year.

As Moose Jaw entered this year the $50 million processing investment remains on the table and closer to a sod-turning than ever.

The solar farm is still planned, and two new projects are planned that will benefit the construction business. Canadian Tire plans a $13 million centre on the east side of the Moose Jaw Exhibition grounds. The centre will consolidate three stores owned by Canadian Tire into one location.

The nearly completed Civic Centre Plaza on the old Civic Centre site accounted for $1 of every $7 in Moose Jaw building last year.

New single-family housing was the weak spot in local construction with a value reduction of $3.75 million continuing a three-year decline.

Only 48 home permits were issued in 2017, compared with 53 in 2016. Average new home price last year was $392,00, increasing by $38,000 from the previous year. January of 2017 started with a weak month, no new homes, a $434,000 storage building on Snyder Road and a $255,000 Civic Centre Plaza project.

In February, housing was weak with three houses compared with 11 in 2016. Main permits were $480,000 for an office building in Grayson Business Park, $256,000 for government housing on South Hill and $150,000 for a Civic Centre Plaza restaurant.

March construction was buoyed by nine new houses and $500,000 for an office complex in the Civic Centre Plaza. April saw eight new homes averaging $403,000 with a $879,000 renovation to the Pla-Mor Palace arena. Construction of a Tim Horton’s store worth $1.5 million on South Hill led May building.

A $2 million government building led June along with three new houses.

At mid-year, building permit values of $18.87 million were down by $2.5 million from 2016.

July’s building was led by $800,000 for an upgrade to Scotia Bank and $250,000 foundation work at the Civic Centre Plaza.

A $4.5 million structure at the Civic Centre Plaza to include the Sobey’s liquor store led August building with a $1.42 million McDonald’s Restaurant at Thatcher Drive and Ninth Avenue Northeast.

September saw a $1 million permit for a service station near the Prairie Oasis and $642,000 for condos on South Hill.

The Civic Centre Plaza contributed $605,000 in October along with $75,000 on two related retail properties. In November, major permits were $605,000 for the Civic Centre Plaza retail complex; $15,000 and $60,000 retail work for the same area.

In December, only $107,000 in permits were issued, a reduction of $1.5 million from the previous December.

Ron Walter can be reached at ronjoy@sasktel.net