If there is going to be sustained growth in Estevan and area, something has to be done quickly about the local housing shortage.
In fact, the problem has become acute enough to spur local businesses that are not accustomed to real estate development, to take it on as part of their continued growth plan.
That was the information gleaned from a recent survey completed for the Saskatchewan Â鶹´«Ã½AV East Enterprise Region (SSEER) in conjunction with the Estevan and District Board of Tourism, Trade and Commerce (ETTC).
The survey was one part of a broader regional housing initiative undertaken by SSEER.
"The results are dramatic," said Edie Spagrud, chief executive officer of SSEER. "While it was certainly well known that the housing shortage is hurting a lot of area businesses, Estevan survey results show the extent of that shortage is even more serious than we expected."
Later, in a discussion with The Mercury, Spagrud noted that there needed to be a well designed plan that would assist this city and other communities develop sustained growth. That would include moving new employees from temporary housing arrangements into position where they can bring their families into the Energy City to join them.
"I view this as a tremendous challenge and opportunity, not a dilemma. We can have a long term impact in the communities willing to work with us," said Spagrud. So far 12 of them, including Estevan, have signed on.
A Jan. 18 evening meeting in Carlyle was designed to move the business and housing development community into the second phase of a planned attack to reduce the housing shortages.
Spagrud said that in some instances local investors and planners have indicated they feel that the interest in southeast Saskatchewan that began three years ago is still a "flash in the pan." But, she said, with a tremendous amount of money already invested in the area, the risk factors have been reduced. She admitted however, that just as there is in any business, there will always be an element of risk.
"But let's take an educated risk," she said.
ETTC recently distributed the survey to its members and had a return rate of 25 per cent, representing 1,600 Estevan jobs.
About 70 per cent of the businesses surveyed said they had increased employment in the past year and 60 per cent intend to add more jobs in 2011. One in five businesses has found it necessary to invest in housing to accommodate incoming employees.
"That is pretty serious when you consider these employers are not in the real estate business," said Spagrud. "But, unfortunately, that has become the business necessity for many."
Half the businesses said they have lost out on potential new employees when the newcomers discovered there was nowhere for them and their families to live in the city.
"The unprecedented number of job vacancies in this area will continue if there is nowhere to live," said Michel Cyrenne, manager of ETTC.
"Because we have an economic boom happening in the region, it's easy to get complacent. One thing that gets lost in the current oil activity is all those businesses that are not directly linked to that industry. If we don't get some better action on housing in this region, there will be long-term negative impacts for Estevan and the entire southeast.
We need to keep working to diversify our economy and those businesses that supply other markets are having difficulty growing. New businesses will also avoid this area of the province if it is difficult to house workers and their families," Cyrenne added.
Half the businesses in the survey said they would seriously consider investing their money in housing projects.
"Of course that doesn't mean there are cheques in the mail, but the number of businesses that have already made investments for employee housing is an indication that they are serious," said Cyrenne.
Spagrud said rental accommodations are particularly challenging for investors under the newer business models, but apartment construction is still in the mix as viable projects, especially if businesses get involved. She said if businesses make a commitment, investors would probably make a commitment too, and that was just one of the reasons for the second phase planning meeting.
She said representative from CMHC were slated to attend the Carlyle session to outline ideas of what a community can do to obtain affordable housing projects.
A hired consultant is also working on sustainable plans involving housing alternatives and sourcing developers that could involve municipalities, Spagrud said. That report should be made available near the end of March.
She said representatives from Saskatoon and Moose Jaw are also being consulted to provide information as to how their communities handled boom-like growth. "Communities have to adopt a plan. You can't just jump in with the first developer who shows up expressing a bit of interest. But at the same time, we're at a near crisis level, but we need that serious long-term plan," said Spagrud, illustrating the need for immediate as well as long term targets.
