2005 Calgary Economy Roars, Record Year for Building Permits

Calgary, Alberta (January 10, 2006) 2005 was a banner year for building permits in Calgary, with construction activity values hitting the unprecedented $3.6 Billion mark – up 47% over 2004. 

These impressive figures were released in an economic briefing session held today by Mayor Dave Bronconnier, Heather Douglas, President and CEO of the Calgary Chamber of Commerce and Bruce Graham, President and CEO of Calgary Economic Development.

Mayor Bronconnier noted “Calgary’s economy exceeded all expectations – we are the economic heart of Alberta, and a growing force in the national economy.”

According to Bruce Graham of Calgary Economic Development the City’s economic “fundamentals” are very healthy, with growth driven by a variety of sectors. Graham commented, “Calgary has been leading the nation in GDP and employment growth for the last 10 years and we expect will continue to lead the country for the next five. High commodity prices have brought renewed attention to Calgary as an energy centre, but growth has also been very strong in construction, logistics and business and financial services.”

Heather Douglas from the Calgary Chamber of Commerce stated Calgary’s business community is “bullish” and “optimistic. Ms. Douglas stated, “This unprecedented growth impacts all sectors, contributes to Calgary’s further diversification and positions this city as an economic powerhouse within the global economy. Calgary is the most dynamic city on this continent with a projected growth rate of seven percent in 2006 and on-going robust growth through 2010.”

The presenters discussed some of the challenges associated with strong growth, and strategies for addressing them. Bronconnier pointed out that over the last decade Calgary’s population has increased, on average, by more than 20,000 people per year, and that municipal funding is strained to keep up with the demand for infrastructure and services. 

He stated, “The majority of municipal services are funded from one-half of the property tax base – the other half goes to the Province. That regime is not sustainable. We need the other orders of government to recognize the need to invest in Calgary’s prosperity for the good of the province and the country.” Bronconnier pointed to the Provincial government vacating property taxes and revenue sharing with other governments as the means to achieve municipal sustainability.

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Source: 
Calgary Economic Development
Phone: 403-221-7831
Toll-free: 1-888-222-5855
Fax: 403-221-7828


Frank N. McCullough, M.Eng. REALTOR
MaxWell City Central
Phone: (403) 542-1799
Email: frankmc@creb.com