Robust economy spurs building boom.

One of Northern Ontario's largest home builders is proceeding with the first phase of a larger 250-home subdivision in a suburb north of Sudbury.

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Dalron Construction received city approvals for 55 units of their Horizon subdivision in Val Caron. The current vacant bush lot will grow into their planned Hidden Valley neighbourhood.

A surging local economy thanks to the booming nickel mining industry has the Sudbury designer-builder either constructing or planning to construct new homes in a wide radius around the city.

New phases of home development are on their drafting boards for Garson, 'the Valley', the 'South End', New Sudbury, Minnow Lake and the Lively-Walden area.

In early August, Dalron phase received city approvals to proceed with the development containing a mixture of single family, semidetached homes and garden town homes.

"It's a great market with a fantastic location that's five minutes from New Sudbury," says Kristi Arnold, Dalron's head of planning and development. "It's very picturesque overlooking the Valley on a ridge. It's a gorgeous view."

Arnold was optimistic for a September sod-turning to begin site servicing, but she says most likely sidewalks, water and sewer lines will be installed over the winter with asphalt laid down next June. The first home construction will start in March.

In 'the Valley,' many access roads have no sidewalks and are not up to urban standards.

The City of Greater Sudbury imposes a standard condition on all residential developers to upgrade and expand road, sidewalk, water and storm sewer connections into planned neighbourhoods.

And most developers must set aside five per cent of their subdivision for parkland. For this project, Dalron will deliver 21 acres of greenbelt, or 19 per cent of the development's space.

Though prices haven't been firmed up, Arnold speculates the town homes will start at $175,000, with singles starting at $250,000.

Geared to a largely blue collar market, "It'll be a great development for first-time buyers to retirees."

The local economy has never been better to acquire land and build homes for many developers.

Based on out-of-town inquires to Dalron, Arnold says, "Almost every industry is hiring right now whether directly for CVRD, Xstra-ta or engineering firms servicing them."

Plus, there's new teachers being hired at the Northern Ontario School of Medicine.

With many Baby boomers approaching retirement, Dalron also has condominium projects on the go.

In the city's 'South End', Dalron was starting construction of an upscale 33-unit condo development amidst the luxury homes and high rises on Lake Nepahwin. Footings were poured in mid-August for the first 15 condos.

The 'Valley,' South End and the city's east side are all designated areas for new development over the next 20 years under the city's Official Plan.

And that's where some of the action is, says Art Potvin, the Greater City of Sudbury's manager of development approvals.

Potvin credits Dalron president Ron Arnold for acquiring land and building up his property portfolio during the slow economic periods. "He hung in through the tough times. He was building on spec when everyone was running out of the city ... and now he's benefitting from it."

The residential home building market is clearly booming.

Some subdivision plans filed with the city more than 10 years ago are now being dusted off and developed.

"Most of the stuff I've been seeing this year is residential," says Potvin. "We're registering sub-divisions faster than my guys can keep up with."

The Moonglo Subdivision near Regent Street, which originally had draft approval about a decade ago by developer Arnel Michel. He had plans approved every year on a piecemeal basis, while whole banks of lot have been sold to Dalron and L.S. Bock Development Inc.

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J. Corsi Developments cleared off a hilltop west of Regent and continues to build multiple phases of their Corsi Hill subdivision, offering upscale homes with panoramic views of Lake Ramsay and Kelly Lake.

Sault Ste. Marie's SalDan Developments was building on Mount Adams at Sunrise Ridge Estates north of the downtown, one of three subdivisions underway.

Zulich Construction is building model homes in their Hazelton subdivision in the Minnow Lake-Bancroft Drive area in the east end.

Guy Belanger Homes has draft approvals for a subdivision in the Minnow Lake-Third Avenue area and are also building near Maley Drive across from Timberwolf golf course.

Potvin says 'the Valley" remains a hot area of activity triggered by the mining sector and new rank-and-file plus contractor jobs for Xstrata's Nickel Rim South project.

Updated building statistics were not available from the City of Greater Sudbury, but in the Canadian Mortgage and Housing Corporation's (CMHC) third quarter report, residential construction hit 168 units, up 20 per cent from the same period in 2006.

Home starts were 38 per cent ahead of the five-year average of second quarters in the market.

CMHC attributes the positive market conditions to employment growth and strong consumer confidence stemming from the mining and mining supply sector.

More than 40 per cent of new units were in prices above $300,000 during this year's second quarter.

The resale market has continued to remain strong with conditions favouring the sellers. Second quarter sales were 3.1 per cent above last year's average as relatively low interest rates, pent-up demand generated from new employment in combination with people migrating to Sudbury all contributed to strong demand for resale housing.

www.planningsudbury.com

www.dalron.com

By IAN ROSS 

Northern Ontario Business