Good afternoon, Mr. Chair.
My name is Bryan Lutes and I'm president of Wood Buffalo Housing and Development Corporation in Fort McMurray. Thanks for allowing us to present this afternoon.
Wood Buffalo Housing and Development Corporation is a not-for-profit affordable housing provider in the most expensive real estate market in the nation.
The Regional Municipality of Wood Buffalo ranks, by area, amongst the largest municipalities in North America, encompassing approximately 10% of the land mass of Alberta. The disproportionate national economic contribution of Fort McMurray is well known. The Fort McMurray region is the economic engine of Alberta, according to our premier as of Saturday, and potentially the economic engine of Canada at this point.
Oil and gas activities in Alberta have a total national impact of $2.9 trillion. Oil and gas activities in Alberta create total GDP impact of $2.5 trillion in Alberta, $166 billion in Ontario, and $93 billion in British Columbia.
Due to the fact that the Wood Buffalo area relies heavily on oil from the oil sands industry, special interest groups have recently smeared the region as anti-environmental.
Housing stats in the area, according to CMHC's spring 2009 survey, say that the average rent for a two-bedroom apartment in Fort McMurray is $2,200 a month. Compare this nationally. It is twice that of Edmonton, over twice that of greater Toronto, and nearly four times that of Montreal. According to Fort McMurray's real estate board, the average sale price in 2008 for a single family home was $682,000.
Two primary needs exist: more affordable, attainable housing units and a green sustainability approach developing high-growth neighbourhoods that will materially aid in the facelift of the region.
We would like to present to you two options for your consideration today.
The first one is an affordable net zero or net-zero-ready development in the new subdivision called Parson’s Creek. Parson's Creek is the newest greenfield site in the Fort McMurray region, approximately 1,000 acres on the north side of the city. Identified by the Province of Alberta as the high-growth node, some 24,000 residents will occupy the development.
In consultation with Gordon Shields of Net-Zero Energy Home Coalition, we have the following definition of net zero. A net zero community is a community whose buildings annually produce enough energy to offset the amount of energy purchased from the grid, resulting in a net zero usage from the grid.
Just like typical buildings, a net zero building is connected to and takes energy from the utility system. Unlike typical buildings, these produce enough energy to send a portion back into the utilities, enhancing long-term affordability by reduced utility bills, enhancing carbon emissions by reduced to zero or near-zero energy, enhancing climate protection, clean air, and healthier homes. Net zero defines the next generation of sustainable development, enhances community and social well-being, and enhances community image as well.
Concerning Parson's Creek net zero energy development funding and support, the services cost for the 1,000 acres is roughly $1.6 billion. The province is putting that money in. The upside to get to the net zero or near net zero energy-ready is about $500,000. And then for the builders to build houses would require a subsidy of about $90,000 a door.
I'll get into my second proposal, which is the rental development--federal. Currently the federal tax situation does not make it favourable for rental product to be developed. Canada is the major country in the world without a national housing program. The federal government, in the latest budget, dedicated $8 billion towards housing, but no funds for tax incentives were directed.
We would recommend—not a more favourable tax treatment for the residents in the Fort McMurray industry, but simply a levelling of the playing field by applying the same tax rules to rentals as to sales development.
Our request of the federal government is to remove rental housing disincentives from the federal tax policy. We therefore request a rescinding of the tax issues for the municipality as described above, or, in lieu, the elimination of the national rental tax policy, specifically.
Thank you for allowing us to present. We'll answer questions as they come up.