Lots to Talk About

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This article was published 18/09/2002 (8667 days ago), so information in it may no longer be current.

Assembling and servicing land for housing development is a long-term project which takes a lot of capital, know-how and good judgment.

Few companies in Manitoba are more experienced or successful at it than Novamet Development Corporation, which began life as Metropolitan Properties in 1953. It was renamed Novamet – Nova is the Spanish word for new – in 1985 when ownership passed to President John Janzen and Vice-President John Rae.

The company takes a long term view of the market and still has plenty of serviced lots for sale, although Mr. Rae says Novamet and other developers see a time in the future when the supply of serviced lots may become scarce.

Assembling land and installing infrastructure – sewer, water and access roads – is an expensive business and the city is increasingly trying to shift costs of developing new subdivisions to developers. Talks on the matter are ongoing with the city.

“We are anxious to keep costs down and so is the city, so the discussions are about who pays for which off-site costs and when. It can be quite complicated.”

Novamet currently owns 168 acres adjacent to Westdale in Charleswood, but hasn’t begun development yet due to traffic concerns and a need to revise some of the original plans. The company’s three most successful developments offering fully serviced lots are Island Lakes, Riverbend and Canterbury Park in Transcona.

Novamet started the 580 acre Island Lakes project in 1985 in southeast Winnipeg just off Bishop Grandin Boulevard. Its attractions include ease of downtown access and proximity to the St. Vital Shopping Centre and University of Manitoba.

The development has three lakes, designed by California architect Jack Bevash. The 38 acres of lakes are connected from an island by three bridges, each of which cost over $500,000. The community also has abundant wildlife and offers a restful, tranquil setting with easy access to most areas of the city.

Mr. Rae says about 2,000 homes have now been built in Island Lakes and there are about 400 left for development. About 75 lots will be developed this year.

At Novamet’s 250-acre Riverbend subdivision off Main Street, the company has only about 10 lots left in its main development from Red River Boulevard and is embarking on a new 300-lot project south of Murray Avenue.

The site of the new development is of interest to both environmentalists and historians, since a Metis battle took place in the area. Novamet plans to develop a four acre natural park and may rename the project to reflect its history.

The area has good access to schools and is also close to Kildonan Park. The nearby Chief Peguis Bridge also provides quick access to the eastern part of the city and to Kildonan Place.

The Canterbury Park subdivision was begun in Transcona in the early 1970s and now has about 1,500 homes north and south of Kildare Avenue. Mr. Rae says there are about 170 acres remaining, with room for 900 serviced lots.

“Sales have been very buoyant this year. It may be a good way from the city centre, but for families it’s excellent, with plenty of elementary and high schools, including French immersion. It also has good golf courses, community clubs and restaurants.”

Kensington Homes, an affiliate of Novamet, has built many homes in Canterbury Park, as has Qualico. Most are still reasonably priced relative to other subdivisions.

Although there has been much political talk of getting more people to live in the downtown area, Mr. Rae says most city planners understand that downtown living isn’t for everyone and those with families like to have a yard of their own with plenty of space for recreation and a garage.

As existing subdivisions such as Linden Woods, Island Lakes and Riverbend mature and fill up, there will undoubtedly be a need for new developments in the suburbs, he adds.

“Winnipeg has a slow but steady population growth, so we have to plan ahead because one day the existing serviced lots will run out,” he says.

The company vice-president attributes much of Novamet’s success to its long-term planning, as well as the quality of its major contractors such as Taillieu Construction, Borland Construction, Nelson River Construction and Cambrian Excavators.

“These contractors are very efficient and have allowed us to keep our costs at a reasonable level. In turn, that means the serviced lot eventually costs the home owner or builder less.”

Mr. Rae says Winnipeggers are still getting a bargain when compared with housing costs in other major cities and he expects this to continue, although there may be upward pressure on prices as land supply and skilled labour becomes tighter.