ECONOMIC BOOM IN FERNIE
For John Birrell, there’s something about the Kootenays he’s always liked. Since moving to Fernie in 1999 and becoming President of Island Lake Lodge, Birrell has had time to appreciate the sense of community he’s found in Fernie.
“I see some real opportunity in this town and the heritage makes the downtown a neat place to visit,” says Birrell, 51, who owns a miner’s cottage on 2nd Avenue. Birrell sees commercial potential in his home, especially if 2nd Avenue expands as he thinks it might.
In the early 1980s, Birrell lived for a summer in Fernie. Originally from the East, Birrell first settled in Kimberley before he moved to Whistler. Despite the move further West, to follow the ski resort business, Birrell had a sense he and his wife Brenda would be back. After living here for a year, Birrell believes professionals will be attracted by Fernie’s recreational lifestyle.
“People are looking for places to live to get out of the city,” says Birrell. He sees tourism attracting other businesses and people who want to be part of a community.
Many others are coming to Fernie on the strength of its growing international reputation as a sought after vacation destination. These investors are interested in establishing a recreational retreat on the ski hill, and are typically 40 to 55 years old, with younger families and a desire to escape their longer work weeks.
There has been an incredible increase in the value of real estate in Fernie, where all the new projects are almost sold out,” says Matt Mosteller, Vice President of Marketing and Real Estate Investments for Resorts of the Canadian Rockies. Because of its location and its many lifestyle activities, Fernie is fast becoming its own world class resort. With the help of the global economy and the limited availability of land for resort development in the U.S., Americans are bringing their families to Fernie.
Since 1997, when Snow Valley ski resort passed into the hands of Charlie Loche and became Fernie Alpine Resort (FAR), the area has become a hot bed for investors. Loche purchased FAR for $7 million and has plans to invest $250 million over the next seven to 10 years.
“Fernie is one of the top adventure powder resorts in North America,” says Mosteller. While Loche’s vision has included expanding the terrain of FAR, it will also see a pedestrian village built around the base of the mountain and accommodation will more than double to 5,500 beds. Loche’s plans will satisfy the overseas demand for on-hill accommodation near three airports. Future infrastructure plans indicate additional residential subdivisions, several more condos or hotel sites and restaurant/retail space within the village.
Loche’s purchase, which has provided tourism in the area with a significant boost, has impacted local real estate sales in the community. Candace Grey, a Fernie real estate agent for 20 years, says when Loche bought Fernie Snow Valley, the real estate market immediately changed because everyone bought all the affordable houses. Lower priced houses jumped up 25 to 30 per cent from 1997 to 1998.
“I sold a little house on 2nd Avenue in the 1980’s for $25,000. That same house sold five years ago in the $50,000’s and just sold in the $90,000’s. It was a small two bedroom house on a half lot,” says Grey, who has also seen commercial properties increase substantially.
“I don’t think anyone can go wrong investing in a house in Fernie because I can’t see a reason for the market to go down,” says Grey, “young couples are excited about buying a home and investing in a resort that’s growing. It only makes sense.” Based on the different markets she’s seen, Grey believes the housing market will increase gradually as the hill continues to grow.
Tourism and development are raising the property values in town and turning more and more tourists into full time residents. Recreational amenities prompted by the development, like an increased number of restaurants, mean residents have more choices. These are positive spin-offs for residents, but the local economy is still largely fueled by the mining industry.
Professionals who see the potential of Fernie and value the lifestyle it offers, will help sustain positive growth in the community. While mining generates most of the tax base in Fernie and tourism brings outdoor enthusiasts to the area, it is the quest for a simpler life that decides the fate of working professionals who have the luxury of choosing where they would like to call home.
New residents, like the Birrells, will perhaps create a balance in the economy between the faces of new and old, the faces of fledgling tourism and the reliable staple of resource based industry. Fernie’s new economy will be based on the mines, powder hounds and couples like the Birrells who love the area and aren’t moving out.
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