The company is, however, keeping the doors open on its opportunity in the region, and that has people like Strathcona Mayor Linda Onischuk remaining reasonably optimistic.
At the time when Sasol announced it was going to focus on in Louisiana, Onischuk commented in a news release, "We understand that Sasol will phase in its North American projects, and are encouraged by its continued interest in Alberta's industrial heartland."
Onischuk added that the county is supporting Sasol's regulatory filings and is continuing in its quest for new investment - investment that already spreads the tax burden out for commercial and residential property owners.
Sasol has maintained a small office in the region and still has staff in Calgary working on its Strathcona GTL project, but hasn't committed to what's known as FEED expenditures - front-end engineering and design, explains Jordan Rumohr, the county's manager for industrial development in the economic development department.
"We still think they have a good opportunity here in the region and in our municipality in particular," Rumohr said.
Shell
Meanwhile, Shell is moving ahead with its CO2 carbon-capture project outside Fort Saskatchewan that's demonstrative of the commitment of hydrocarbon processers to deal with issues such as greenhouse gas emissions.
Rumohr notes the project will provide a boost to the business sector beyond the county.
With Strathcona's growth, the county is in the midst of developing an industrial land strategy for the future, knowing that the inventory in various private industrial parks won't last forever.
"With the amount of growth we've seen over recent years … we're going to need to open up more land," explained Rumohr, who says the strategy should be unveiled in the first half of 2013.
Commercial realtor Murray Craig, a broker for Capcomm Commercial Realty Inc., echoes the need for more land and industrial and commercial space.
"Right now it's very, very tight, and the demand is there, that's the frustrating part," said Craig, who has been in the real estate business in "The Park" for 30-plus years.
Craig says he expects more industrial space to come on the market late in 2013 and early in 2014, but adds that many of the industrial buildings in the works are likely coming with tenants in place; there's not much in terms of spec building going on.
Low taxes
Industrial development has been a big asset in keeping property taxes down in the county.
For example, Strathcona County homeowners paid less in taxes on their homes in 2011 than the majority of those in communities surrounding Alberta's capital. The municipal taxes on a $400,000 home in the county in 2011 amounted to about $1,676, approximately 57 per cent of the bill for a $400,000 home in suburban St. Albert. Industrial development can indeed make life a lot easier in terms of commutes, employment and tax bills, something county residents have long been aware of.
Permits
While growth in Strathcona hasn't been frantic for the past several years, the population grew 5 per cent between 2009 and 2012. Industrial building numbers have waned from five years ago (and can be highly influence by one mega project) but residential building was up noticeably over 2011 for the first 11 months of 2012 - from $93.4 million to $148.4 million. That's a hike of almost 59 per cent, and reflects growth in not only the number of new single-family homes but also duplexes, townhouses and apartment condos.
An average Sherwood Park single-family home sold for around $410,000 in 2012.
Residential growth comes in part from decisions of Edmonton-based companies to move to the suburban setting for cost and quality-of-life reasons.
"We're seeing companies look here that probably wouldn't have looked 10 or 15 years ago," noted Rumohr, who says some companies have made decisions based on where their employees have already been living.
Mega projects
There is also a rush of public and private projects underway this year in Strathcona County - including completion/upgrading of the east portion of the Anthony Henday ring road around the capital.
The final $1.8 billion leg of the mega project will test the patience of some Strathcona drivers over the next three years but will ultimately guarantee a barrier free-route around the city, making development in Sherwood Park and the remainder of the county easier to get to for folks throughout the capital region.
As well, Phases 1 and 2 are underway on $162 million in investment on Strathcona County Hospital, with the project also expected to end in 2016.
A $55 million boost in capital spending for the county's water system is scheduled to end this year, while work is continuing on several large new or redeveloping retail centres in Sherwood Park. The major projects list includes a $35 million redevelopment of Baseline Village, as well as the $21 million Millennium Ridge retail development.
from Western Investor February 2013
