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Media Coverage Western Investor, May 2009 Banking on an upturn
Banking on an upturn Slumping sales in the East Kootenay resort market are seen as an opportunity to provide more flexible purchasing options – and a chance to upgrade facilities – in anticipation of an eventual upturn. Lowering prices does not appear to be part of the strategy. The East Kootenays are especially sensitive to the downturn in its resort sector, which until recently was dominated by Alberta buyers. With major Rocky Mountain resorts, including the giant Three Sisters Mountain Village in Canmore, falling into receivership and overall sales slowing, the outlook is cautious. “This will be lean year,” said Richard Haworth, vice-president of development for Fairmont Hot Springs Resort. In 2006, Ontario-based Ken Fowler Holdings Ltd. bought the family-owned Fairmont Hot Springs, which includes three golf courses, the famous hot springs, a ski hill, a popular resort hotel, a 400-unit RV park, and even an airport, covering 3,500 acres of land. Fowler soon began improvements. It developed and serviced 56 large building lots, priced from $169,900 to $429,900, as the first phase of a major residential plan. The lots came to market last June, however, just as the Kootenay boom turned to a bust. Only three of the lots have sold, and none have been purchased since last summer. But Fowler sees the sluggish market as an opportunity not for a firesale, but to continue with upgrading plans. Haworth notes that the resort is fortunate in that it had no new real estate development, other than the lots, underway when the bust hit. He said no new construction is planned soon for new condominiums or hotels.” We are not going bankrupt but we are not going to tempt it either,” he said. In the meantime, Fowler is sticking to the land prices it set last year. “We are well financed, and the servicing is complete,” Haworth explained,” we can wait for this market to turn.” Fowler’s overall proposal for Fairmont includes a village with a community arts theme, condominiums and at least one condo hotel.
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Reprinted from Western Investor |
