New developments
Bosa's cash injection is welcomed in an area hard hit by the downturn in forestry. In 2009, West Fraser shut its Eurocan pulp mill in Kitimat; 525 jobs were lost, many in Terrace. In 2011, the city had a population of 11,486 - a modest 1.5 per cent increase over 2006. Still, Statistics Canada figures show Terrace was the only large centre in the northwest to grow between those years.
"Most people understand that [the new developments] are opening up the north," said Terrace economic development officer Evan Van Dyk.
He had "no comment," however, when asked about what could be the nucleus for the area's economic recovery: the multibillion-dollar Northern Gateway oil pipeline, which was in the middle of hearings when he spoke with Western Investor.
Against pipeline
The mute stance is understandable: Terrace's city council voted to oppose the pipeline project back in February of this year.
At the time, Mayor David Pernarowksi said that the majority of Terrace residents are opposed to the pipe. He added that some people in the economic-development community believe that remaining neutral makes more sense, because taking a position could put Terrace in a "precarious position."
Pernaroswki is personally opposed to the pipeline, but suggested the city should have waited until hearings are complete.
In an interview with the local newspaper, he said, "It's tough one. We see the risk. I am currently opposed to the project, because a majority of the First Nations oppose it. I am going to have a hard time to stand in difference to our First Nations community. November would be more appropriate to bring this before council."
Of greater interest today in Terrace is the construction of BC Hydro's Northwest Transmission Line (NTL). The line, pegged at a cost of $561 million, will run 344 kilometres from the Skeena substation south of Terrace to the Bob Quinn substation on Highway 37 North.
Work is already well underway, with everyone from engineers to bush-clearing crews in play as part of a workforce expected to peak at around 300 before the project completes in early 2014.
According to the Mining Association of BC, the powerline could spur millions of dollars in new mine activity north of Terrace, including the $700 million AltaGas run-of-river hydro project that could lead to the creation of 400 jobs.
Last year, AltaGas signed a 60-year agreement with BC Hydro to deliver power to the Bob Quinn Lake grid via BC Hydro powerlines. AltaGas has crews working right now and has spent about $26 million on construction.
Red Chris mine
The first - and perhaps largest - of the mines that will hook in the NTL is Imperial Mineral Metal Corp.'s Red Chris mine, which achieved a B.C. mining permit in May. If the mine goes ahead, it'd bring about 250 jobs to the area, many likely based in Terrace.
There's just one glitch: local First Nations are fighting mine development, not uncommon in the northwest.
Tahltan Central Council president Annita McPhee said her council "will look at all options," because officials haven't addressed Tahltan Nation "concerns about long-term pollution to our water and the damage to a landscape."
"The Red Chris mine would turn a pristine valley and a lake into a tailings pond and seriously damage Todagin Mountain through the construction of an open pit," she said in a statement. "Decisions like this, which don't appropriately take our interests into account, undermine our trust in the province."
Repeated requests for clarification about what action McPhee and the Tahltan have in mind were not met as of press time.
Housing
There's an air of confidence in town, however, that's reflected in the housing market. In the first half of 2012, 150 residential properties worth $29.3 million sold, compared with 135 for $25 million in the same period last year. The average detached house price in Terrace is $211,000, but half the houses sold for less than $199,000 according to the Northern BC Real Estate Board. In other words, you could buy seven or eight houses in Terrace for the price of one in Vancouver.
It takes homes in Terrace 71 days to sell, on average. Besides houses, 11 parcels of vacant land, five half-duplexes and 14 homes on acreage changed hands in the first half of the year. At the end of June there were 287 residential properties of all types available for purchase in the Terrace area.
Jobs, jobs, jobs
When it comes to the outlook of the northwest, Central 1 Credit Union is bullish, forecasting employment will increase modestly this year but spike 3 per cent in 2013 as more resource projects fire up or expand.
"The [northwest] will likely face substantial labour and skills shortages, promoting wage growth [and] drawing workers into the region," said Central 1 economic analyst Bryan Yu.
Industrial
Terrace is getting ready for the uptick in land demand as it becomes a "staging area" for resource exploitation, says Van Dyk.
To that end, the city has developed the Skeena Industrial Development Park, a 2,000-acre greenfield site on Highway 37 next to the Northwest Regional Airport and 47 kilometres from Kitimat's ports.
The park could handle heavy industrial projects, and 300 acres are already cleared and linked to electrical and gas services. While prices vary, a ballpark figure is around $10,000 an acre, plus sales-tax exemptions for machinery, and potential grants of up to $5,000 for each new job created.
from Western Investor October 2012
