While this reflects the slow real estate sales in the region, it also suggests that Berkeley's approach to creating a community to live in - rather than a resort to escape to - may have struck a chord. Said Berkeley, who lives on-site with his wife and three children, "We take an organic, sustainable approach to development." Also, quirky.
At Kootenay Lake Village, building lots must match the local environment, not the other way around. They must also be sensitive to wildlife corridors and, ideally, follow the contours of the land. The result is that the building lots, while large, are far from uniform. And there are no rigid architectural controls on what can be built.
"We don't care what you build as long as no one else can see it from their lot," Berkeley explained.
Additionally, the best walk-on waterfront beach in the development has been turned into a community park. All in, 90 per cent of the forest ecosystem is protected and 70 per cent of the acreage is dedicated to wildlife reserve and community recreational parkland, attracting many hikers and mountain bikers from Nelson, which is half an hour away.
Seeks partner
The building lots are inexpensive. Half-acre waterfront lots start at less than $350,000 and large view lots average $250,000. "We want to create a vibrant and ethical community. If prices are too high, it will freeze out some families," said Berkeley. "If someone comes in and they only have $50,000 to build a house, we will make it work."
Most homes built at the Village so far are ultra-contemporary architectural creations for retired professionals from Calgary or Vancouver. What is surprising is that nearly all the owners have opted to move full time into the Village. Berkeley believes many urbanites never meet their neighbours and welcome the chance to become part of a close community like Kootenay Lake Village. "This is about relocation, not recreation," he said.
While the organic approach has wowed admirers, it has made financing a hard sell. Traditional lenders rightly want to know exactly how many lots can be carved out of 450 acres and expect the land to sell at the highest price possible. Preserving 90 per cent of the land does not compute.
Oliver admits he has had to go to the secondary market to finance his Village, paying about three times conventional mortgage rates. "We are looking for a partner to share our vision. A partner could make $20 million here," he said. "Maybe not in five years, but in time."
The optimism at Kootenay Lake Village is being seen this year across the Kootenays. Four years after a shattering downturn, jobs and real estate values appear to be coming back, if slowly. Job growth in the Kootenays rose by 2,700 people last year, compared with a loss of 7,300 jobs from 2008 to 2010, according to a B.C. government report on the Kootenay Development Region.
The only thing more ubiquitous than magnificent views is real estate "for sale" signs, an indication of little upward price pressure.
"This is a rule of thumb, but say a $200,000 building lot is now selling at $139,000, or 30 per cent off the peak," said Cary Fisher, sales manager at Redstone Golf Resort near Trail in the West Kootenays.
Fisher said Redstone has seen slightly stronger sales this year and, like many others we talked to in the Kootenays, is confident they will improve. In fact, the BC Real Estate Association reports Kootenay home sales this summer were up 22 per cent from 2011, the second-highest increase in B.C.
"The Kootenay area is in the beginning of a new run up that I predict will surpass the last peak," said Fisher.
"There is an undercurrent developing from the combination of retirees and new hires. We are starting to see inquiries from investors looking down the road. We have had second-home inquiries from Vancouver and Calgary recently. These markets had all but disappeared over the last few years," he added.
Fisher said the downturn following the U.S. economic crisis hammered West Kootenay prices right across the board. Now, he noted, one can buy a three-bedroom home on a golf course for $336,000, golf all season for $1,175 or ski all winter for $800.
"You can live like a millionaire in this area with modest income and no stress," he said.
Realtor Jack McConnachie of Coldwell Banker in Trail, agrees. He notes that some engineers hired for large construction projects in the region are renting $1.5 million penthouse condos at Red Mountain Ski Resort for $1,800 per month.
It is the increase in high-paying jobs that is helping the West Kootenays' real estate recovery, McConnachie said.
Teck Resources is spending $335 million on increasing the capacity of an electronic waste recycling operation in Trail, where Teck has a major zinc smelter, he noted.
As well, a $900 million Waneta Dam expansion is creating hundreds of jobs. There is also public-sector job growth at the regional hospital and college expansions, McConnachie said.
An indication of the change: passenger traffic at the Trail airport is up 30 per cent this year from 2011.
from Western Investor September 2012
