No economic downturn in Fernie

Alberta cash continues to support the economy in Fernie, B.C.

Derek Cimolini is a planner with the City of Fernie, B.C. — Photo courtesy Derek Cimolini

According to the City of Fernie’s planning department, housing density within this Elk Valley community is increasing. In fact, this community has shown no signs of being affected by the general economic downturn of the past five years.

Build up, not out

Because of the east-west orientation of the Elk Valley, which cuts a narrow wedge through the towering Rocky Mountains, Fernie’s expansion options are limited. The city has a “build up, not out” philosophy.

Derek Cimolini, planner for the City of Fernie, said that most of the money that is being spent on real estate and housing development in Fernie is coming from Alberta, for vacation homes. While some of those homes are being built on traditional lots available in existing subdivisions, a recently introduced bylaw is allowing an interesting—though somewhat pricey—option for homeowners and homebuyers.

“There’s an option called a small-lot subdivision, where the homeowner can subdivide their lot and sell the newly created small lot for a new dwelling,” Cimolini said.

Typically, the original lot measures 60 feet by 120 feet, so two 30-by-120-foot lots or two 60-by-60-foot lots can—theoretically—occupy the space. Cimolini said that often an edge-to-edge type dwelling will be built on the new lot.

“We wouldn’t allow the houses to be too close,” Cimolini said. “They need to comply with regulations regarding setbacks and fire separations.”

It comes with a cost

Development cost charges for this type of subdivision are in the ballpark of $12,000 per new lot, paid by the developer, to cover the new stress that’s being put on the sewer, water and street systems. Later, developers also pay for the installation of the new utility service, which Cimolini said can be quite expensive, depending on where the service has to originate.

“In order for the subdivision of the lots to be approved, all of the development costs have to be paid beforehand, which is reassuring for the purchaser,” Cimolini said. “For the most part, these are being purchased as building lots.”

Fernie’s building design guidelines do not extend to the residential areas, so in theory the homebuilders are not restricted in design and colour. However, the area where this subdivision is happening is quite an old area, and the new houses generally improve the appearance of the neighbourhood.

“These houses are being built by people who can afford an attractive, appropriate design,” said Cimolini. "All of these rezonings need to go through the planning department and through council, so they generally look fine.”

Based on economic indicators, the pace of development in Fernie is likely to continue.

“We don’t know for sure what will happen with development over the next couple of years,” said Cimolini, “but I don’t see that the pace of development will change—at least not in a negative way.”