Grand Ole Opry star mourned /16
WEDNESDAY, JANUARY 3, 2007

Alcan plans to reconsider smelter /5

Rumours of cabinet shuffle fly /7

Statues give clues about ancient island people /21

$1.00 (HOME DELIVERED: 61 CENTS A DAY)

Home assessments see huge increase
by MARK NIELSEN Citizen staff Reflecting the ongoing real estate boom, the assessed value of property in the city jumped by $990 million over last year to $5.51 billion, according to figures released Tuesday by B.C. Assessment. Hikes in the value of residential property accounted for $814 million of the increase, not including newly-built homes. New construction accounted for $84 million and of that total, $67 million was from new homes. Residential property made up $4.2 billion of the $5.51 billion in the total assessment, which is an all-time high for Prince George. Second highest was last year's total of $4.52 billion and the next previous high was in 1998, when the total assessment peaked at $4.2 billion. It took a dive over the next few years and bottomed out at $3.64 billion in 2002. Moderate increases followed in the next two years before the total took a $276-million leap in 2005 to $3.97 billion. The value of the average single-family home s to o d a t $ 174 , 0 0 0 , u p 17 p e r c e n t f r o m $147,740 last year. Moreover, increases were recorded in all areas of Prince George. "Most homes on this year's assessment role are worth more than they were on the 2006 assessment roll, and market movement appears strong when compared to previous years," said Prince George acting deputy assessor Cal Benson. Highlights for Mayor Colin Kinsley included evidence of a turnaround for property values in the downtown. After dropping by $2,800 between 2005 and 2006, the average value has increased by $20,300. He also welcomed the amount of new construction, which will help soften the tax blow, and the increase in the assessed values in general, particularly for single-family homes and businesses. "(It means) people have more equity in their lives' largest purchase," Kinsley said and predicted the momentum will continue through next year and will allow people to access more capital for improvements to their homes and for business ventures.

Citizen photo by David Mah

Roofer Tobin Woods from Ribeiro H. Contracting nails another shingle as he works on the roof of a house on Ryser Avenue. Housing construction is going strong in that neighborhood.
"The other thing is, it just feels good," he said. "I know I feel good when the value of my home goes up. Making those payments all those years and now I've really got something to show for it as opposed to just a short six, seven years ago when, in some instances, we had people walk away from mortgages." Notices have been sent to more than 76,000 people who own property in the region, of which 28,944 own property in the city. -- See VALUES on page 3

Citizen photo by David Mah

WINDY WORKOUT -- Brothers Travis Betke, 10, left, David Turner, 16, and Brandon Betke, 8, made use of the gusty winds and sunshine Tuesday afternoon as they flew a kite in the Van Bien elementary school field off Ferry Avenue.

U.S. lumber demand to fall, forecast says
by GORDON HOEKSTRA Citizen staff After four consecutive years of record lumber consumption in the U.S., demand fell in 2006 and is expected to slow even further in 2007, says a forecast by the Western Wood Products Association. A decrease in housing construction is expected to have reduced lumber demand in 2006 by 3.2 per cent to 61.9 billion board feet once the final numbers are tallied. That's compared to 63.9 billion in 2005, the Portland, Ore.-based association reported. The organization, which represents Western U.S. lumber firms, annually reports detailed lumber consumption figures. The Western Wood Products Association (WWPA) says the slide in demand will continue in 2007, forecasting total lumber consumption at 57.1 billion board feet, a decrease of 7.5 per cent over last year's expected number, and a 10.6-per-cent drop from 2005's peak. A slower U.S. housing market is the key reason for the lumber demand decline. New housing starts will be down nearly nine per cent in 2006, and are expected to fall another 10 per cent to 1.69 million in 2007, according to the association's forecast. Residential construction is the largest market for lumber in the United States, accounting for more than 40 per cent of lumber used each year. The volume of lumber used in repairs and remodeling is also expected to drop, though not as much. The WWPA anticipates lumber use in home renovations to fall 2.6 per cent in 2006 and another six per cent in 2007. "While home prices will still fall in some areas, we think that housing starts and home sales are nearing a sustainable rate," said Kevin Binam, the association's chief economist. "But construction is going to be lower than we've seen in the past few years and that will mean less demand for lumber." Lumber imports into the U.S. are forecast to fall as demand drops, although shipments from Canada will fare better than those coming from other countries, said the WWPA. The association estimates that Canadian imports to the U.S. will be down 1.4 per cent in 2006, and drop another 6.1 per cent in 2007, slipping below 20 billion board feet for the first time in years. The WWPA expects non-Canadian imports will see larger declines, dropping 11.7 per cent in 2006 and 18.6 per cent in 2007 to 2.28 billion board feet. Unfavorable currency exchange rates and lower lumber prices are expected to reduce shipments from Europe by almost 600 million board feet from 2005 levels, said the association.

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BLACK ORCHID DISPUTE

Escort agency wins court battle
by MARK NIELSEN Citizen staff The Black Orchid escort agency will be able to continue operating out of its residential location after a Supreme Court judge ruled the city cannot revoke its business licence. In a decision released Tuesday, Mr. Justice Eric Chamberlist ordered that the business be "grandfathered" from a bylaw amendment prohibiting escort services from operating in residential areas. City council passed the bylaw amendment in November 2003 in response to an uproar that began that summer when neighbours learned an escort service was being run out of a home at the corner of Westwood Drive and Range Road. The city then refused to issue a business licence to Black Orchid owner Lorrie Collins pending the outcome of the court case. Chamberlist also ordered the city to renew the licence for the years 2004, '05 and '06, process a renewal for 2007 and cover Collins' legal costs. The total is to be determined. A furor erupted in the summer of 2003 when neighbours learned Black Orchid was operating out of the home. Lawyer Bob Leverman, who represented Collins, said Black Orchid continues to operate at the location but maintained the concern though he had some doubt. was overblown because clients and escorts did not "How effective can you expect to be in regulating meet at the home. where a person can answer the telephone because Rather, Leverman said the that's all it is, a telephone?" Leverman business amounted to a telesaid. phone that Collins used to The court is still to consider an injuncset up appointments in other tion against Collins running the agency locations. out of the home. " The public was saying The injunction was filed by the city people were coming and gotwo years ago after it refused to issue a ing from the house in varilicence, but given Tuesday's ruling, Levous states of undress and so erman said the city has no case. on, and, of course, that sim"If she's entitled to the licence, they ply was untrue. It never hapcan't get an injunction that says quit oppened," Leverman said. erating without one when they were the "The only people that were ones who wouldn't give her one in the going in and out were the first place," he said. people doing the (dryChamberlist also found that the Freewalling) in order for t he dom of Information and Protection of property to comply with the Privacy Act prevents the city from recity's building regulations -- Lawyer Bob Leverman quiring Collins to provide criminal with respect to creation of an record checks for each of her escorts. office within the home, beInstead, Collins is obligated only to cause it's just a telephone." provide contact information and the city must apLeverman said the bylaw amendment may prove proach each escort for any further information. to be effective against new escort agencies, almnielsen@princegeorgecitizen.com

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INDEX
Annie's Mailbox . . . . . . . . 16 Bridge . . . . . . . . . . . . . . . . . 20 Business . . . . . . . . . . . . 22-24 City, B.C. . . . . . . . . . . 3,5,6,13 Classifi ed . . . . . . . . . . .18-20 Comics . . . . . . . . . . . . . . . .17 Crossword . . . . . . . . . . . . .17 Entertainment . . . . . . . . . .16 Horoscope . . . . . . . . . . . . .20 Nation . . . . . . . . . . . . . . . . 6,7 Sports . . . . . . . . . . . . . . . 8-12 World . . . . . . . . . . . . . . . . .14

"The public was saying people were coming and going from the house in various states of undress... and, of course, that simply was untrue."

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