High land prices costing Vernon jobs

By RICHARD ROLKE Morning Star Staff Jan 31 2007 http://www.vernonmorningstar.com/

There’s more proof Greater Vernon is losing out on industrial jobs. A manufacturer of housing-related products is looking around B.C. for a factory site, but Vernon appears to have priced itself out of the market. “We’re a bit high in terms of what they want to pay for land,” said Dave Forai, economic development manager. Forai blames the situation on an extreme lack of serviced industrial land in Greater Vernon and the North Okanagan, which is forcing up prices on what land is available. “If we don’t get a handle on serviced land, things will continue to get worse,” he said.

The average price for serviced sites locally range from $250,000 to $350,000 per acre. That’s cheap compared to the Lower Mainland (at $1.1 million per acre) but costly compared to other parts of the province. “If you go further north, it’s ranging at about $125,000 per acre in some of the smaller communities,” said Forai. While land costs more, Forai says Greater Vernon has some benefits such as a large workforce and its lifestyle. “If the right jobs are created, people want to live here.”

There have been efforts to establish an economic development function that covers the entire North Okanagan Regional District but that process could be on hold while NORD’s services are reviewed for effectiveness. “These (review) decisions will have implications for service operations,” said Forai. Forai attended a recent conference in Whistler where he met with a developer that specializes in affordable housing. “They’re working on a project in Alberta and they’re interested in looking at Vernon and the opportunities here,” he said. The developer generally combines housing suites with commercial space, “These projects benefit downtown areas,” said Forai, adding that the lack of affordable housing is negatively impacting businesses’ ability to lure employees to Vernon.
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Jan 31 2007 EDITORIAL http://www.vernonmorningstar.com/
Review stalls industrial needs


The North Okanagan desperately needs to expand its industrial land base, but it’s likely prospective manufacturers will keep being turned away. It’s unlikely a regional economic development function will be launched this year because the North Okanagan Regional District is initiating a service review. The review — which was requested by the City of Vernon — will look at NORD’s functions and determine if they are effective and a good use of money. Obviously there is nothing wrong with that, especially when it’s taxpayers’ dollars going into these services. However, it is absolutely unacceptable that such a review would place the brakes on a region-wide economic development function making industrial land a priority.

Businesses come to the North Okanagan looking for land but the selection is extremely limited and, because of that, expensive compared to other B.C. communities. Without industry, there aren’t good-paying jobs available and that impacts house sales, retail activities and virtually the entire economy. Without opportunities, our youth will continue to leave the area. And it makes sense for economic development to be regional because most of the potential land is in Enderby, Spallumcheen and Lumby, not Vernon. But Vernon has the cultural and social amenities employers and employees expect. If NORD moves ahead with a review of its services, hopefully it will be done in an expeditious manner. The last thing the region needs is for industrial development to be stalled further because of bureaucracy.