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CRED releases new report

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A new report from CRED, How do pipeline spills impact property values?, reveals that an oil spill in Burrard Inlet or along BC’s south coast has the potential to negatively impact property values and cost jobs in real estate and property development, in areas both adjacent to spill sites as well as the surrounding region.

DOWNLOAD THE REPORT
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The research concludes that oil spills have direct and lasting impacts on property values. In particular, the report finds that:  

  • In eight documented cases, properties directly impacted by spills were significantly devalued
  • Nearby properties lost up to 8% of their value
  • Where homes relied on well water and the groundwater was contaminated, the value loss was permanent

The goal of the report is to increase access to information and support a transparent conversation around the economic risks and rewards of Kinder Morgan’s proposed new Trans Mountain pipeline. CRED is calling for an independent study of the economic risks of the proposal.

Downloadable image highlighting the report’s main conclusion:

CRED-PropValues-LG

Business leaders react to the report’s findings

“This report brings up important information and concerns. As planners, it’s our job to be aware of all potential risks to housing and land values. We hope that the government will take action to protect Vancouver’s market from the impacts of an oil spill.” – Blaire Chisholm, Planning Manager at Brook Pooni Associates

“Vancouver is famous the world over for its natural beauty and pristine environment. This is the driving force behind all of our real estate-related industries. As a realtor, it is my responsibility to let my clients know about the risks they could face by buying a property near pipeline infrastructures.” – North Shore realtor and CRED advisor Dallas la Porta

“As a realtor I have noticed that with the huge amount of negative publicity surrounding the expansion of this pipeline, people are on red alert and are very aware of the potential impacts of the pipeline on their properties. As a result, buyers will typically avoid a property anywhere near a pipeline and this does have a negative impact on values.” – Langley realtor Annabel Young

Read the full report here 

CRED events and news, Economy | Tagged , , , , , , , , , , , , ,

How do oil spills impact property values?

Photo credit: John Lehmann/The Globe and Mail

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The following is an excerpt from CRED’s upcoming report. To be notified when the report is launched and available for download, please contact us or join our mailing list.

Introduction

British Columbia’s property development sector is a significant driver of economic growth and an important source of employment. According to the Urban Development Institute, the sector is directly and indirectly responsible for over 220,000 jobs across the province, in areas from planning and construction to secondary supplier purchases. It makes a bigger contribution to provincial GDP than any other sector – more than natural gas, tourism, mining, forestry or film and television.

In the real estate sector, a sub-section of the property development industry, there are over 14,000 people working as realtors in Greater Vancouver, Vancouver Island and the Gulf Islands alone. The coastal real estate market is also important to private homeowners who gain value not only from a physical property but from its viewscape, proximity to waterfront and wilderness, and location in one of the world’s most liveable regions.

CRED is seeking to better understand the risks of an oil spill as part of an ongoing dialogue about the economic future of the region. Where are the best places to invest for future growth and prosperity? How can we safeguard our quality of life and support industries that will ensure long-term responsible development?

Real World Examples

To begin assessing risk, we gathered information on eight separate oil spills in the US and Canada. In three of the cases, the spills directly impacted properties and in two further cases, the proximity and perceived impact of the incidents devalued properties. In the final three cases, residents have claimed values losses but they have not yet been independently confirmed. 

Case study: Pepco Pipeline, Maryland, 2000

Loss in value: 11-12% in the 1st year

In 2000, a 3,800-barrel (120,000-gallon) oil spill in a suburb of Washington DC affected property near the Patuxent River. A study published in The Appraisal Journal in 2001 concluded that waterfront and beach-access homes were significantly and negatively affected by the spill.

In the year following the incident, home values within a 10-mile study area fell 11%. In addition, waterfront properties experienced reduced sales volume. According to real estate listing data, only three waterfront homes sold in the first sale season after the spill, a 40% decrease from the previous year. Because there was no substantial variation in regional markets, the study concluded that this decline was likely due to the spill.

This is a small excerpt from an upcoming CRED report on the link between oil spills and local property values. If you would like to read the whole report, please contact us or join our mailing list.

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CRED reacts: must see real economic assessment before federal “pipeline push”

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On September 12th the federal government announced a new strategy to garner support in BC for the development of new oil pipelines.

In response, CRED is calling on the federal government to do a full assessment into the economic risks of new oil pipelines before pushing for their approval.

If the government is serious about protecting the long-term prosperity of Canadians, there needs to be a real consideration of whether new oil pipelines could hurt more jobs than they create. Over 80% of British Columbians work in the service sector – they need to know that their jobs aren’t at risk of similar impacts as seen after oil spills in the Gulf of Mexico and elsewhere across North America.

Meeru Dhalwala, co-owner of celebrated local restaurants Vij’s, Rangoli and Shanik and CRED advisor, says:

“Tourism is a key source of income for our BC economy, particularly in Vancouver. I’ve read much on both sides of the argument and I am not at all convinced that the relatively few permanent jobs created by new oil pipelines are worth the massive risks–the most important risk being a major and expensive oil spill that would devastate our waters, wildlife and economy.”

UBC economist and CRED advisor Dr Rashid Sumaila echoes the need for a robust, independent cost-benefit analysis:

“Any decision about whether to approve a new pipeline in BC needs to weigh economic costs against the benefits, especially for those of us who live and work along the pipeline and tanker routes.

How might a new pipeline impact the brand of Vancouver? How would it affect the price of gas in the lower mainland? If a significant spill were to occur, how many jobs would be lost? How much would an oil spill cost to clean up and who would pay? All of these questions need to be carefully considered before sending delegates to BC to campaign for approval.”

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Innovating beyond the beaver: Credible Conversations with Michael Tippett

michael tippett

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Our first Credible Conversations forum was held on May 29th at the Creekside Community Centre in Vancouver. Over 100 business leaders, entrepreneurs, politicians, First Nations representatives and BC residents came together to discuss the economic risks of pipeline expansion and explore how to build a more diversified economy here on the west coast.

How to make a billion dollars: building an innovation economy

Michael Tippett, lifetime tech entrepreneur and current Director of New Products at Hootsuite, shares his thoughts on Canada’s economy past and present. Here’s his call to grow rather than harvest, create rather than extract, and to disrupt everything:

CRED events and news | Tagged , , , , , , , , , , ,

Credible Conversations panel: What does responsible economic dev’t mean in BC?

second panel

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Our first Credible Conversations forum was held on May 29th at the Creekside Community Centre in Vancouver. Over 100 business leaders, entrepreneurs, politicians, First Nations representatives and BC residents came together to discuss the economic risks of pipeline expansion and explore how to build a more diversified economy here on the west coast. Over the next few days, we will be posting videos, photos and presentations from the forum here on our blog.

What does responsible economic development look like in BC?

The second experts’ panel explored economic alternatives: if we don’t built new oil pipelines, then what will our economy be based on instead? What industries should we nurture and support? Where will jobs, innovation and growth come from?

Moderated by Tara Mahoney from GenWhy Media, panelists included Linda Solomon from the Vancouver Observer, Bradley Shende from M2O Digital Agency and Rueben George from the Tsleil-Waututh Nation and TWN Wind Power.

Watch the full discussion here:

CRED events and news | Tagged , , , , ,

Notes from the real estate stream

Group question

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Our first Credible Conversations forum was held May 29th in Vancouver. Over 100 business leaders, entrepreneurs, politicians, First Nations representatives and BC residents came together to discuss the economic risks of pipeline expansion and explore how to build a more diversified economy on the west coast. 

*These are rough notes from the break-out sessions and are not meant to convey the opinions of all CRED members, or even all participants in the break-out group.

How could a new oil pipeline affect the real estate and property development industries?

Costs/risks:

  • Value of homes detrimentally impacted
  • Risk to property values
  • Affects Vancouver’s brand
  • Vancouver becoming a “petrol-port”
  • Health impacts – fumes from trucks and tankers
  • Harbour view affected

Benefits:

  • Kinder Morgan media plugs help raise awareness about the region
  • Kinder Morgan is reaching out to community regarding their proposal
  • Economic growth = population growth, more development, higher real estate values
  • Increased tax income to pipeline municipalities

Information needed:

  • How much do people value the Vancouver brand?
  • At what point is the impact too much to be allowable?
  • How long does it take to recover from an oil spill?
  • Is it possible to completely recover from an oil spill?
  • What are the economic costs of environmental degradation i.e. airshed quality?
  • Can Vancouver still be the “greenest city” if the project goes ahead?
  • How much would it cost to insure the pipeline without government coverage?
  • What / how many / for how long will new jobs be around for?
  • Will the pipeline attract people to move to Vancouver?
  • How would an earthquake affect the pipeline / tankers?

 

CRED events and news | Tagged , , , , , , ,

Notes from the tech, digital and creative stream

CredConvo tech breakout group

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Our first Credible Conversations forum was held May 29th in Vancouver. Over 100 business leaders, entrepreneurs, politicians, First Nations representatives and BC residents came together to discuss the economic risks of pipeline expansion and explore how to build a more diversified economy on the west coast. 

*These are rough notes from the break-out sessions and are not meant to convey the opinions of all CRED members, or even all participants in the break-out group.

How could a new oil pipeline affect the tech, digital and creative industries?

Costs / risks:

  • Environmental damage
  • Brand risk to Vancouver
  • In general, not enough is known on the risks to tech/film

Information needed:

  • Need reputable, accessible information available through a central resource
  • Need a clear outline of the risks
  • Case studies, surveys
  • More understanding of the alternatives / solutions
  • Solution-focused, with outline of clear actions to take
  • Look to industry to take a position
  • Key spokespeople
  • Information for parents: what are the risks to children?
  • Need tools: advocacy, outreach, socialization

Where are the opportunities to support this sector?

  • Education
  • Ride-share programs, electing to go car-free
  • Platforms for easy communication sharing that supports more low-carbon lifestyles
  • Crowd-funding opportunities for start-ups
  • Creative solutions
  • Online training platforms
  • Opportunities for online conversations that bring more people into the discussion and maintain it beyond events like this
CRED events and news | Tagged , , , , ,

Notes from the cross-sectoral stream

Cross sectoral group

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Our first Credible Conversations forum was held May 29th in Vancouver. Over 100 business leaders, entrepreneurs, politicians, First Nations representatives and BC residents came together to discuss the economic risks of pipeline expansion and explore how to build a more diversified economy on the west coast. 

*These are rough notes from the break-out sessions and are not meant to convey the opinions of all CRED members, or even all participants in the break-out group.

What does cross-sectoral mean?

  • Interdisciplinary, multifaceted, coming from different perspectives
  • Inclusivity and diversity, bridge between cultures
  • How sectors can work together
  • Shared interests, big picture
  • Directing forces and ideas
  • Common / shared interests, collaboration
  • Includes unions

How might a new oil pipeline affect the west coast’s economy?

Costs/risks:

  • Increased reliance on foreign investment
  • Risk of skills drain
  • Free trade deals (contradictions)
  • No local energy security plan
  • Chevron jobs at risk?
  • Climate change risks
  • Costs of oil spills – insufficient insurance, tourism/cruise ships, attracting talent
  • Kills innovation in alternative energies
  • Impacts the region’s livability
  • No long-term benefits locally

Benefits:

  • Lower taxes, more funds for health care & education
  • Jobs: construction, oil sands jobs
  • Strength of Canadian economy – global position as resource leader
  • Strengthen trade relationships with the US, China
  • Increased global oil supply
  • Pipelines are cheaper and safer than rail or road transportation
  • Return on RRSPs / equity market will benefit

Information needed:

  • What does a transition away from oil dependence look like as opposed to a crash?
  • Where else could tax revenues come from? (Carbon tax?)
  • More conversations on the oil economy vs the green economy
  • Need to break through the spin
  • Are people intimidated to speak up against real or perceived business interests?
CRED events and news, Economy | Tagged , , ,

CRED releases independent report highlighting Trans Mountain concerns

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On Tuesday February 26, CRED released a report highlighting the risks of Kinder Morgan’s proposed Trans Mountain pipeline. In addition to pulling together the most important data about the project’s background, Kinder Morgan’s safety record, and potential impacts of a spill, our group uncovered some of the project’s main economic risks. Some of our key findings:

Jobs: The proposal would create 35 permanent jobs. And oil spill would put at risk industries that together employ over 200,000 people locally including tourism, film and TV, real estate, high tech, agriculture and coastal industries.

Tax revenues: The expansion would not make a significant contribution to provincial tax revenues.

Liability: In the case of a major spill, taxpayers would likely be responsible for the burden of costs, as a company’s liability is limited to $1.3 billion and a major spill could easily cost ten times this amount.

Some of CRED’s advisors highlight the most concerning elements of the report here:

Read or download the full report to learn more about the risks we uncovered.

Thanks to chilliwack360 for the image we used in the banner