June 9, 2008

Rising costs of financing and construction put plans for $260-million racetrack on hold

A proposed $260-million horse racing track near Calgary has been delayed again.

Instead of a scheduled opening next year, the Balzac-area track will not open until 2010 at the earliest.

“It’s a combination of things, the delay in (getting a) water licence, (the effect) of sub-prime mortgages on the banks in North America,” said David Reid, the chairman and CEO of Horse Racing Alberta.

“Hence the difficulty of (getting) a long-term loan at a favourable rate and the rising cost of construction.”

Four years ago, the United Horsemen of Alberta, the main financial backers of the project, estimated the project would cost $80 million. But, the cost of the dual-track facility has now more than tripled.

Long-term financing continues to be the critical issue.

“I think within the month UHA will be prepared to make an announcement with where they are at with the financing,” said Reid.

He added that the best possible scenario for harness horsemen would be if Calgary’s Stampede Park agreed to host another thoroughbred meet next spring, allowing harness horses to be at Edmonton’s Northlands Park at the same time.

Stantec

Stantec Inc. has completed four acquisitions in the first quarter of this year, the company revealed its quarterly financial report.

In January, Stantec added The Zande Companies, a civil and environmental engineering firm with about 285 employees located principally in Ohio.

Also in January, Stantec acquired Rochester Signal, a firm specializing in railway signal systems with about 25 people in Rochester, New York, and Pittsburgh, Pennsylvania.

In February, Secor International, a provider of environmental consulting and engineering services to the private sector, joined Stantec, adding more than 700 employees and 40 offices principally in the U.S.

In March, Stantec acquired RHL Design Group, a Petaluma, California-based firm with more than 170 employees and several offices in the western US. RHL provides implementation and design services for commercial clients with regional or national multi-location facilities.

Remand Centre

Seacliff Construction Corp. and its electrical division, Canem, have been awarded the electrical construction management contract for a new remand centre in Edmonton. The value of the contract is estimated at $47 million, with work scheduled to begin in the third quarter of 2008 and run through 2011.

This represents the largest contract ever awarded to Canem, which was established in 1960.

Stuart Olson Constructors Inc. also awarded Lockerbie & Hole Inc. a $70-million contract to be the mechanical construction manager for the centre.

The new remand centre is being built by Alberta Infrastructure and Transportation and will replace the 27-year old remand centre located in the Alberta capital’s downtown core.

It is scheduled for completion this fall.

Vietnamese Resort

Vietnam has given the green light to a US$4.2 billion resort by granting Asian Coast Development the first foreigner investment certificate.

The Toronto-based developer plans to build the Ho Tram Strip, a five-resort complex, with more than 9,000 rooms, two casinos, restaurants and nightclubs, theaters, a golf course and more than 200,000 square feet of retail space.

JOC News Service

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