Airdrie is on the move. The pressures of existing growth are giving way to a need for even more space and development as the “Little City that Could” just north of Calgary copes with its success.
And now Airdrie has an application on the table to annex just under 19 quarter-sections from the surrounding Municipal District of Rocky View.
The city’s supply of land has shrunk to about 15 years worth of potential development. But most urban municipalities look to maintaining at least 30 years worth of stretching space within their boundaries, says Mayor Dan Oneil. The situation has become tightest in non-residential land.
There are reasons for the fast-paced growth of this municipality. Airdrie’s industrial area is easily accessible from Highway 2, yet the leafy neighbourhoods of both old and new housing seem a world away from the busy highway and the industrial zone. And the downtown remains attractive, with malls on main street that don’t scream “SUBURB!”
Arthur Wong, vice-president and chief operating officer of Genesis Land Development Corp., says Airdrie is a great community for further land development. It’s close to the northern half of Calgary, the international airport and the downtown of its sister city, and its neighbourhoods are just a couple of minutes from downtown Airdrie.
As a city, Airdrie has done a good job of planning for growth, he believes. “The Canals were our first major Calgary-area development,” says Wong, featuring a water attraction not commonly found in Calgary or any other Alberta suburb. “We seized the opportunity and (Airdrie) seized the opportunity.”
Airdrie’s population of 22,000 is up eight per cent from last year, reports Jeff Greene, team leader in the City of Airdrie’s planning department. That makes it the fastest-growing city in the province and the fourth-fastest in the country.
The three faster-growing cities are in the Toronto area.
Mayor Oneil acknowledges that Airdrie’s growth has put pressure on city services and infrastructure. Currently, the biggest infrastructure issue is the swimming pool, which was built when the then-town had only about 3,500 people.
The city also has needs in other recreational areas, such as ice rinks and soccer fields. Emergency calls for fire and ambulance crews have also risen, but the crime rate is still stable, says Oneil.
The annexation request is for about 2,800 acres, including four partial quarters. The city now includes about 5,000 acres, says Greene. At the north end, the requested land is located three quarter-sections west of Highway 2 and six east of the highway. At the south end, Airdrie is asking for six quarter-sections on the west and parts of four on the east.
All the land is now privately held. The annexation in all four quadrants of Airdrie would neatly square the city off.
The proposal needs approval from both city council and the Municipal District of Rocky View council. Local approval is being sought by the end of October and it will go to the Municipal Government Board in November, with public hearings to follow if needed.
The goal is a provincial decision early in 2003, says Greene.
Size matters in getting the attention of the financial markets, says an executive of a real estate investment trust offering its units. “We would like to be bigger and have every intention of doing more if we find the right properties,” says Keith McRae, director of operations for Calloway Real Estate Investment Trust.
If Calloway raises enough money, it will buy all the shares of Western Spirit Investments Ltd., a company with 11 properties. It would also buy eight other assets, giving it 23 properties, he said.
The securities holders of both organizations approved the deal, and court approval was received last month. Completion is now subject to Calloway raising the financing.
McRae says the goal for Calloway is to be diversified geographically and by asset class, with industrial and retail properties in markets across the country. It started as a $200,000 junior capital pool and became a REIT this year, its assets growing to $8.4 million.
REITs are disciplined in their approach to debt, where companies don’t have a restriction. “We can’t have more than 60 per cent of book value, and our target is 50 to 55 per cent,” he says.
Another publicly traded real estate company has decided to become a real estate investment trust. The directors of TGS Properties Ltd. (TGP-TSX) agreed to reorganize its commercial real estate business as a REIT called TGS North American Real Estate Investment Trust, with the exception of Three Sisters Mountain Village and ancillary assets.
The plan is subject to security holder approval at a meeting Oct. 30. A new company, TGS Properties Inc., will continue the remaining business of TGS.
