BY MARIO TONEGUZZI, CALGARY HERALD JANUARY 5, 2011 

CALGARY - The estimated value of building permits in Calgary fell by 20 per cent in 2010 to just under $3 billion compared with the previous year.

The City of Calgary reported Wednesday that the construction value reached $2.92 billion last year, down from $3.65 billion in 2009.

The total in 2010 was also off 30 per cent compared with the five-year average of $4.16 billion and off by 12 per cent compared with the 10-year average of $3.33 billion.

"Values are down, but $2.92 billion is still a healthy level of activity. To put it in perspective, consider that the average value between 2001 and 2005 - the period leading up to the record years - was $2.51 billion," said David Watson, general manager, of planning, development and assessment for the city, in a news release.

Of the total $2.92 billion in permit values for 2010, residential values are up 18 per cent year-over-year ($1.70 billion versus $1.44 billion in 2009) while non-residential values are down 45 per cent ($1.22 billion versus $2.21 billion in 2009).

"Essentially what we've seen year-over-year is a reduction in stimulus spending," said Watson. "This is reflected most notably in the institutional sector with new projects down 83 per cent to $152 million from $901 million in 2009."

The city said permits for new residential units in 2010 totalled 7,054 compared with 5,917 in 2009. The five-year average was 9,416, and the 10-year average was 10,992.

There were 22 projects over $10 million in 2010, compared with 38 in 2009, including the Westbrook LRT Station/Tower ($37 million), Northwest High School ($28 million) and WestWind Calgary Police ($25 million).

In the month of December, the estimated construction value of building permit applications was $241 million, down 47 per cent from December 2009 ($452 million). It was also down 28 per cent from the five-year average of $335 million and off 10 per cent from the 10-year average of $267 million.