BS = Terrace Review — Wednesday, May 15, 1991 Developers, The City of Terrace hosted a forum on housing issues during April. This article is the final instalment in a three-part series by Terrace Review reporter Tod Strachan on the specific points that were raised during that forum. The roles of the private developer and the realtor in the housing market are examined in this report. Terrace building and licensing inspector Bob Lafleur was a prop- erty developer in the Okanagan for a number of years and assumed the developer’s role at the forum. "How does the developer view the market?" Lafleur asked, and then provided the answer himself. "Generally with pessimism,” he said, "unless there is an incredible demand with guarantees for excep- tional profit." In the past, says Lafleur, the developer only needed to be aware thet there was an ongoing demand for small, two-bedroom starter homes. They could sell these homes as fast as they could build them. But things have changed. "Current demand," says Lafleur, "might imply there is an existing yuppie tarket for oversized bed- rooms with jacuzzi tubs and gas fireplaces." A developer may ~ ‘Where To Find It choose to follow this trend, but unfortunately price is the determin- ing factor and quality is considered an extra. A better educated public, how- ever, may mean that building "quality" homes will become the trend of the future. In fact, accord- ing to Lafleur, "Future trends would most definitely include energy: efficiency, good use of floor space, lots of windows and _ closets, country kitchens and warm decor." From the developer’s perspective though, making a living building and selling houses is far more complex than blindly following a trend. "A good developer," says Lafleur, "through market research can create his own demand by providing a product his competi- tors aren’t, and which the buying public wants." According to Lafleur, the devel- oper must first determine where and what the demand is. And then must look at the municipality where the demand exists and assess the availability of serviced lots, zoning of those lots, local regulatory restrictions, availability of necessary materials and trades, ' and finally, consider the economy and stability of the community. And ‘that’s only the beginning. Once all these factors have been considered, the developer then needs financial backing. Interest rates, of course, are a determining factor, but so is the developers plan. Financial institutions don’t like projects based on speculation, so the developers plan had better be sound. Having obtained the financing and completed ihe project, the developer then requires one more player, the realtor. But here, an unfortunate" situation often arises. The developer sces the realtor as the player who takes no risk and makes all the money, and as a result tries to sell the finished product himself. According to Lafleur: "From a developers perspective, he has reason to be pessimistic because he does assume all the risk. He has to design or chose a design he hopes will sell based on sometimes non- existent or unreliable information. He then has to plead with a lender to obtain a 12 or 14 percent mort- gage. He fights with city officials and neighbours until one or the other gives in. He then chases after sub-trades and suppliers and when he finally finishes, he has to give a huge chunk of his profit to a real- tor." What generally happens to the developer who tries to sell a pro- ject without the expertise of a professional realtor, though, is that he fails. And, says Lafleur, when he "gives up trying to sell his product himself, he sheepishly approaches a realtor". This is a situation that Lafleur hopes the conference, and the eventual formation of a local hous- ing committee or commission, will resolve. "I sincerely hope that this js an inaugural meeting and that a committee for its future direction is established," Lafleur told the con- ference. "From a developer’s and a personal point of view, the reality is that there is a vital link between the realtors, the lenders and the builders. That link presently has no realtors need to work together Bob Lafleur: There is a. vital lenders, and the builders. ’ link between the realtors, the bond, and without consultation and co-operation it cannot fuse." PACIFIC NORTHERN GAS LTD. ; DIVIDEND NOTICE The realtor: This set the stage NOTICEis hereby given thatth for a representative of the real | gard tpirectorsot Pacific North. estate profession, Dwain McColl of Kitimat. McColl underlined La- fleur’s hope for a stronger link between the developer and the realtor by stating what the realtor had to offer, primarily through the North West Real Estate Board. It’s a small board, he says, but import- ant. One of 13 boards in the prov- ince, they represent the Northwest in the province, operate the Mul- tiple Listing Service in the arca and coordinate ongoing educational programs. . By Order of the Board P.G. GRIFFIN — Continued on page B10 Secratary ern Gas Ltd. has declared the fol- lowing dividends on the issued and outstanding shares of the Corpora- tion: 694% PREFERRED SHARES: A semi-annual dividend of 84.375 cents per share payable on July 1, 1991 to shareholders of record at the close of business on June 14, 1991, arid CLASS A AND CLASS B COM- MON SHARES: A quarterly dividend of 37.5 cents per share payable on June 21, 1991 to shareholders of record at the close of business on June 7, 1991. AND PAINT COLLISION REPAIR —H} V, Norm’s Auto Refinishing Ltd. 635-3929 CENTER 4630 KEITH, TERRAGE FAX: 635-3081 3514 King Ave. Terrace, B.C. 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