Winnipeg Free Press

Winnipeg Free Press (Newspaper) - June 26, 1981, Winnipeg, Manitoba 14 Winnipeg free press Friday. June executives big on Winnipeg growth by Wally Dennison Winnipeg Developer mar tin w. Eva sold acres of downtown land to a Vancouver consortium for million a few weeks ago. Eva president of John a. Flanders limited says the Sale illustrates the Sharp pickup in Confidence by investors in the City s growth potential in recent months since the . Group could develop a hotel office Complex there when and if interest rates de Cline. Sales by other developers of six downtown office towers in the past few months five of them to outside groups also reflect How commercial real estate inflation elsewhere and particularly in Calgary and Edmonton is priming Winnipeg for a development upturn. Meanwhile some local employers report that soaring housing costs in Calgary Edmonton and Vancouver Are compelling former Manitoban to re turn Home and bringing newcomers Here As Well. But they also claim the Urban environmental pressures and uncertainty in the Alberta cities especially along with higher accommodation costs making people More aware and appreciative of Winnipeg s living advantages and Quality of life. The housing Cost squeeze elsewhere is affecting virtually the entire Range of income Levels including professionals., employee movement if Manitoba s population outflow has t turned around by now it soon says Doug Grimes vice presi Dent of w. L. Wardrop associates Ltd., engineering consultants. Grimes and Eva As executives with hiring Powers and Long Winnipeg Ca Reers Are in a position to observe employee movement. Grimes reports he has received feelers from and been approached for references by several engineers from Alberta who formerly worked Here and wish to return. All he says Are being Hurt by housing costs a problem that is being compounded interest rates in the 17-19 per cent Range. And Eva who recently hired a Secretary from Van Couver says other employers have told him clerical and Middle income work Winn speggers and new Comers alike Are applying for jobs. Whether the jobs Are available is another matter. Winnipeg has a Bleak Job Outlook according to an employ ment Survey released this week. Fewer people can expect to find work Here in the next three months than virtually any major City in Canada states Man Power temporary services with a number of the 200 Winnipeg firms surveyed actually predicting decreased hiring. Nevertheless Grimes and Eva feel the City will get Back on the economic growth track eventually. So do Jed Ladin vice president of 400 manage ment group a 10-month-old property development and management company David Schwartz vice president of marketing for investors Syndicate Ltd., and Verne prior Manitoba Hydro s new Public affairs director. Ladin and prior Are native Winnipeg Gers who have recently returned because of housing Cost pressures but because of business and career opportunities linked to the improvement they expect in Manitoba s Economy. Schwartz a big City easterner who has been Here 18 months and who bypassed a marketing executive Job offer in Vancouver says Winnipeg is hardly a horse and Donkey town fact it s More mature than Calgary Edmonton and Vancou ver in Urban development and More Akin to Montreal and Toronto in sophistication than those cities. And like Ladin and prior he feels Winnipeg ranks As a top flight place to raise a family. In comparing the shifting economic fortunes of Western Canadian cities Ladin says Winnipeg is Ripe for real estate and Over All economic develop James free press Jed Ladin astonishing opportunities in real estate Downey says Manitoba would lose out on marketing boards by Jack Francis Manitoba would be a big loser in proposed National marketing boards for hogs and cattle provincial agriculture minister Jim Downey told the annual meeting of the Canadian feed Industry association in Winnipeg yesterday. Based on the experience of commodities under National Supply management eggs poultry milk Manitoba would have to accept production quotas that would reduce annual hog output by about from the current of 1.2 million head Downey said. This would not Only Cut producer income but also the spinoff effect in other areas. He referred to a study by agricultural economist Clay Gilson who found of related business activity generated for every hog Dollar. Supply management is an Effort to improve prices but it reduces the num Ber of people in an Industry and the amount that can be produced. The province s feed Industry would certainly suffer. Manitoba could lose at least hog producers with marketing controls used in other parts of the farm Industry. That does t promote efficiency nor Progress. Production quota planners trying to dictate prices can t know what the demand for cattle is going to be in three years but the marketplace which finds demand sends signals to the efficient producer who can make his own Downey added. He rejected Federal agriculture minister Eugene Whelan s pall for National livestock marketing plans say ing improved National income stabilize Domestic product up Ottawa up the country s real Domestic product grew 0.6 per cent in april the 10th consecutive monthly increase statistics Canada said yester Day. The Federal Agency said growth in manufacturing mining transport and communications was responsible for the increase. The increase in the manufacturing sector was almost entirely due to a turnaround in the Auto Industry particularly in exports. In addition in contrast with the recent trend retail sales of passenger cars and trucks produced in Canada and the . Increased in april while demand for vehicles manufactured overseas in the mining Industry the Agency reported increased demand for Copper and Nickel exports. The forestry Industry was the Wea Kest sector during the month with several thousand Woods workers Laid off in British Columbia As newsprint and lumber exports fell. The real Domestic product is an Index of Industrial and other production based on 1971 dollars. V Tion plans would be better for both producers and Consumers. Stabilization payments Are actually consumer subsidies. Farmers Don t sit on the Money but pay it out to cover expenses when prices go below the Cost of production. If production quotas Are used instead the Supply is constantly being restricted to set the Price and that leads to disastrous consequences by limiting economic activity. We would not be Able to meet potential food demand if we were forced to plow under Grain Fields for example whenever prices softened on the world Downey was also critical of the Cana Dian wheat Board for policies designed in Ottawa instead of by Western farm ers. Some changes Are needed in super vision of the wheat Board which is run by a senator from Western Canada who does t report to anyone in the West but Only to the Federal Cabinet. The Federal government dictates wheat Board policy not Downey added. On the matter of the controversial Crow rate which sets Grain freight rates below Cost and causes the rail ways Multi million Dollar losses Dow Ney said the Federal government should continue to protect Western Grain grow ers from soaring shipping costs. But the Federal treasurer should make up the railway losses he added in an inter View because it would be no different from tie Protection afforded to East Ern users of Petroleum products through highly subsidized Oil in i outsiders have been drawn Here by what they perceive to be undervalued real estate and Are buying huge sections of commercial and residential property to either resell at higher prices or possibly develop on their own if interest rates moderate. This activity was evident in housing Sale statistics earlier in the year but the High Cost of Money halted the surge. Dramatizing the swiftness with which Winnipeg real estate has been changing hands was a Vanco verite s Purchase of 54 Homes during a three Day visit. As Eva says the Magnet is Winnipeg downtown commercial land at roughly to a Square foot compared to to a Square foot in Calgary Edmonton and Vancouver. Grimes meanwhile says that Only the wealthiest companies Are equipped to increase salaries enough to offset the housing Cost differences which a transferred worker would encounter in the major Western cities. And those Large firms move Only the most senior executives if necessary. Imagine Grimes suggests trying to pay More even More for the same Home in Calgary and taking on an accompanying 18 per cent mortgage. In this connection some real estate authorities says that Homes in Winni Peg while higher priced by 15 to 20 per cent Over several months ago can still be bought for less than it would take to build the same Homes Here. Conversely in the major Alberta cities an exist ing Home can be priced at double the Cost of constructing the same Home there. Rosier complexion As Well some Industry authorities claim High costs Are beginning to discourage service industries Allied with the Oil and Gas Industry from locating in Alberta. They re looking More keenly at lower Cost provinces like Manitoba. They believe Winnipeg a plodder compared to the Boom style Glamor of the Alberta cities is about to take on a Rosier economic complexion because the Promise of such proposed Mega projects As the province s Alcan Alu Minum smelter and Potash develop ments coincides with the influences of lower real estate pricing. Manitoban will begin recognizing the transformation As soon As inter est rates Start falling Ladin says and it will become visible to the average person As new businesses open and greater numbers of former Manitoban and newcomers arrive Here. Grimes figures we re about a year away from feeling the effects in the Community from the smelter and pot Ash projects. While the engineering and construction sectors will be invigorated he says the changes won t overheat the provincial Economy. I expect the projects will fit into a sequence of Good healthy he added. That would be a Radical shift from two years ago when Manitoba s virtual construction standstill forced Wardrop associates to drop 50 workers from its Winnipeg office and prompted it to change its focus from civil engineering and land development to alternative Energy research. Twenty five workers have since been added with the 125 member Winnipeg office now working on some government financed projects for which Wardrop was chosen Over All major Alberta based engineering firms and some from the United states. War drop s business is 40 per cent higher at Winnipeg Headquarters Over two years ago while Over All volume is 20 per cent higher at its Edmonton Thunder Bay and Winnipeg locations. Former air Canada executive prior meanwhile is looking Forward to in creased responsibilities As Hydro development contributes More heavily to the province s economic development. After two years As news service Man Ager at airman s Montreal Headquarters he feels opportunities for Anglo phones Are limited in Quebec and that there s a lot to be said for Friendly Eva stresses the anticipated upturn won t be a Boom by any Means. And while both real estate prices and Over All commercial and Industrial develop ment will be on the upswing in Winni Peg Eva says the changes will hardly be anything like the crazy spiral in Alberta s two major cities. He says Winnipeg s diversified Busi Ness and Industrial base adds up to a better balanced Economy that makes for stable growth. Schwartz whose regular business travels West earlier in a Long career give him a Well rounded profile of Western Canadian centres says Winni Peg is a very business oriented City with its share of head moreover he believes the stability of Winnipeg s environment makes people friendlier More relaxed and even More confident than those living in the two major Alberta cities where pressures build up to a rat race. Not Only have Cal Arians and de Monton ians been subjected to unrestrained Urban growth and the upheaval of seeing new businesses and buildings come and go Schwartz says but they re now being unnerved by an Oil pricing conflict that has the Provin Cial government cutting Back product Ion and Ottawa vowing not to Budge from its position on the Issue. As Well environmental irritations such As Calgary s huge traffic jams Are missing Here says Schwartz who says the transportation flow is closer to Toronto s smoothly functioning free ways than to the chaos in the Alberta cities. Grimes adds that it s almost impossible driving across the two cities because of obstructions resulting from the building Boom. Secure environment and unlike . Cities such As fort Lauderdale Florida Winnipeg is virtually crime free by North american standards. That s the City from which Ladin returned after years. Al though he could easily have moved to other . Cities Ladin decided to return first because of the Aston Ishing opportunities for real estate development which have opened up Here recently and secondly because of Winnipeg s secure environment. He figures political heat by canadians will ultimately Force the Federal government to drop its policy of Chas ing . Interest rates and that this will spark development locally. But Eva questions whether Ottawa will abandon the policy contending that it defies belief How finance minis Ter Allan Maceachen can go on deny ing that people and businesses Aren t being driven out of their Homes or businesses in droves. Development will proceed regardless of interest rate movement Eva says but he warns that it will be chaotic and feed inflation into the next generation if it continues for Long at the present High interest Levels. Merger approved Toronto up Canada Perma nent mortgage corp. Said yesterday it has approved signing an agreement to merge with Gen Star corp. Of Vancou ver. The permanent has been the target of a takeover bid from first City Finan Cial corp., also of Vancouver. The permanent said that under the Gen Star agreement its shareholders will get Cash for each common share and about for each series a convertible preference share. The per manent s common Stock closed unchanged at on the Toronto Stock Exchange wednesday. Gen Star is a diversified corporation with interests in land development housing building materials and Finan Cial and Marine services. First City which has assets of billion is 94-per-cent owned by Samuel Belzberg and his Brothers Hyman and William. It bid for control of the permanent a month ago offering an Exchange of common shares or a package of com Mon preferred and convertible prefer red shares. Peregrine Petroleum Ltd. Dividend notice notice is hereby Given that the following dividend has been declared payable August 1, 1981 to shareholders of record As of the close of business june 30, 1981 Gold dividend shareholders will be entitled to one Peregrine Gold medallion Troy ounce Fine Gold for each 1.000 shares registered in the shareholder s name and will be issued a certificate Peregrine Gold medallion for each 1.000 shares. Shareholders owning less than shares will be issued a fractional certificate Peregrine Gold medallion and May claim a medallion upon presenta Tion of fractional certificates totalling the fractional Gold medallion certificates arc transferable by delivery and no form of assignment is needed to Transfer them. The certificates will be payable August i. 1981 to shareholders of record june 30. 1981. Delivery of the Peregrine Gold medallions will be made at the office of the Canada Trust company. 503 3rd Street . Calgary Alberta on presentation of the certificates or on presenta Tion of fractional Gold medallion certificates totalling Canadian shareholders will be liable for income tax on the Gold dividend valued on the basis of the Price of Gold at the closing fix on the London Market. July 31. 1981. . Resident shareholders will be liable for Canadian non resident withholding tax on lire cold dividend valued on the basis of the Price of Gold at the closing fix on the London Gold Market july 31, 1981. To satisfy these requirements the amount of non resident withholding lax must be deposited with the Canada Trust company in Cash or by certified Cheque prior to delivery of inc Gold medallion. By order of he Board l. R. Ferris May 29, 1981 Calgary Alberta Trust since 1909 member Canada Deposit insurance corporation 283 Portage Avenue 944-7211 1350 main Street 586-9687 417 Academy Road 474-2459 1861 Portage Avenue 888-4861 600 Selkirk Avenue 589-7311 1181 452-3533 j ;