April 7, 2020
Honourable Jason Kenny
Office of the Premier
307 Legislature Building
10800 - 97 Avenue
Edmonton, Alberta
T5K 2B6
Sent via Email: premier@gov.ab.ca
Dear Premier Kenney, and Minister Madu,
RE: Ministerial Order and Essential Services
The Infill Development in Edmonton Association (IDEA) is a non-profit association with a diverse membership of construction and development industry professionals and community members. IDEA was formed seven years ago to help shape urban development policy specifically around residential and commercial infill in Edmonton. Over the past seven years, we have provided expert research to municipalities, built an education-based expedited permit program to fast track permits, and created infrastructure cost-share programs with EPCOR and the City of Edmonton.
On behalf of IDEA, we are writing to share the infill industries' perspectives on development during this crisis and request that you rescind or amend Order No. MSD: 022/20. We are facing unprecedented times. These times require a multipronged approach that recognizes the layered impacts of decisions. To ensure we are successful as a province, we must do everything we can to minimize immediate effects but must also set a strong foundation for economic recovery.
We have outlined below key points for you to consider as you make important decisions to ensure Albertans come out of this pandemic as successfully as possible.
Ministerial Order No. MSD: 022/20
Ministerial Order No. MSD: 022/20 has consequences that are creating significant uncertainty and significant red tape for our industry.
By extending decision timelines to October 1, 2020, this halts all new development between now and October 22, 2020. A conservative estimate based on 2019 data shows that 1300 permits will be stalled, and we will miss our already very short construction season. Not only does it affect future developments, but the way that this Order is currently written, it also retroactively impacts all decisions from March 5 onward, adding significant uncertainty to an industry that is working hard to weather the storm to keep people employed and projects moving forward. This Order needs to be revised to allow development to move forward. If this is not done, the majority of development companies will not be able to keep employees on payroll, continue working with their suppliers or construct residences or places of work for Alberta families.
Essential Services
We also want to stress the importance of the construction industry in the Alberta economy. Companies of all scales are implementing safety and health practices into their daily business operations to reduce the spread of COVID-19. They are taking this very seriously. They represent 10% of Alberta's total employment, and they want to ensure they are staying healthy and are able to continue to operate and whether the impacts of these challenging times. This is also an industry that does not have significant contact with the public and where physical distancing is not too difficult to enforce. It is an opportunity for continued investment, jobs and economic growth during a time when so many other sectors are unable to work.
If construction is downgraded to a non-essential service and told to shut down, it will impact the entire industry supply chain, magnifying the negative economic impact on our province due to this pandemic. Multiple small and medium companies currently investing in Alberta will go under if they lose a construction season. They will need to lay off more tradespeople, and other skilled workers and this talent may not be retained in Alberta. It will take multiple years for our province to recover from this crisis; this decision will exacerbate these impacts and have ripple effects on suppliers, communities, Albertans and all industries that rely on the trades.
Projects in the queue are homes for families and spaces for new businesses. Many individuals have put their personal investments into homes in order to have a place to raise their families, or accommodate the needs of a family member, or to build a growing business. Most of these are built by small and medium scale companies. Those companies and the thousands of Albertan families who have hired them could quickly be bankrupted by a decision that deems construction non-essential.
As you are aware, Alberta is adversely affected not only by COVID-19 but the oil and gas sector. Residential and commercial construction are vital sectors that allow for more diverse employment options for our trades, which keeps people working when our resource industries are struggling.
You continue to express the importance of supporting our economy during this health crisis. To ensure that we are able to rebuild after this crisis, we need to support industries that are in a position to continue their work and continue to invest in our province. We understand the need to make adjustments in order to accommodate physical distancing and avoid the spread of COVID-19. There are ways to do this that doesn't shut down an entire sector (and all its suppliers) until Spring 2021.
We look forward to hearing how you will be addressing this issue and appreciate your consideration at this challenging time.
Sincerely,
Hani Bargazar
President, IDEA
hani@hibco.ca
Mick Graham,
Past President, IDEA
mick@singletree.ca
Chelsey Jersak,
Vice President, IDEA
chelsey@situateinc.ca
CC: Honourable Kaycee Madu Minister of Municipal Affairs, Rachel Notley MLA for Alberta, Joe Ceci MLA, Paul Wynnyk Deputy Minister Municipal Affairs