Denver's Lessons for Calgary

[troutman]

Denver and Calgary: A tale of 2 similar but very different cities


A look at past successes of the Mile High City, and what Calgary can learn from them

http://www.cbc.ca/news/canada/calgar...ison-1.3776682

Denver and Calgary have a lot in common. But while Denver is rising, Calgary is struggling.

Founded within 20 years of each other, both cities were 19th century western frontiers. Places built on railways, agriculture and oil. For decades, both cities followed a similar economic path — including the highs and lows of the energy industry.

But then, just a little more than 30 years ago, both cities faced a crisis. Calgary went one way, and is still riding the energy wave. Denver another, leading to a thriving economy.


Calgary could stand to learn a thing or two from Denver. Something that occurred to Calgary Economic Development, which recently sent someone down on a fact-finding mission to study the successes of the Mile High City.

Denver and its surrounding counties decided to stop competing against each other for new businesses and talent pools. Economic development funds sprouted up everywhere, and an agreement was struck on regional tax rates and recruiting key industries — like technology companies.

Even before the pact, Denver was building areas dedicated to specific industries.

"Our economy has been booming," said Makarewicz. "We recovered sooner than others from the recession and, since there was a very intentional effort to diversify the regional economy, we have the jobs."

Meanwhile, diversification in Calgary is back on the table in a big way.

[Ozy_Flame]

Without reading the full article and doing absolutely no research of my own on the topic, definitely jelly.

[OMG!WTF!]

Unpossible. Colorado has the third lowest state corporate tax in the country (besides the six states that charge nothing) and an $8 minimum wage. And it's the best place to live in the country. I'm calling bs.

[polak]

Awaiting "Diversification is a waste of time" comments from the O&G folk...

[nik-]

Originally Posted by polak

Awaiting "Diversification is a waste of time" comments from the O&G folk...

Pretty much no one says that. Unless you take people pointing out that there's no magic "Diversify Economy" button that we just haven't pressed yet as saying it's a waste of time.

[polak]

Originally Posted by nik-

Pretty much no one says that. Unless you take people pointing out that there's no magic "Diversify Economy" button that we just haven't pressed yet as saying it's a waste of time.

Before this price slump got really bad and the election was happening pretty much every one was arguing that "it wasn't worth it" and that we should just focus on getting as much oil out of the ground as we can.

[Locke]

Originally Posted by polak

Before this price slump got really bad and the election was happening pretty much every one was arguing that "it wasn't worth it" and that we should just focus on getting as much oil out of the ground as we can.

Actually, unless you're plugged into a whole different crowd than I am, what I heard was:

"Diversification costs money, how do you propose to pay for it if we cant get as much oil out of the ground as we can?"

But as usual and we're seeing it in Ontario and Federally, paying for your proposed miracles is distinctly 'someone else's problem.'

[Hack&Lube]

In other Denver/Calgary news, our Justice Minister is heading there for pot research:

http://www.cbc.ca/news/canada/edmont...arch-1.3811063

[Nufy]

Yeah right....."Research".....

[undercoverbrother]

Oh Denver and area:

http://craverealburgers.com/

I the burgers at this place. Also, the green chili fries are awesome.

Denver and the surrounding area is pretty ####ing sweet.

[Senator Clay Davis]

Originally Posted by Nufy

Yeah right....."Research".....

Hopefully he doesn't go Maureen Dowd.

[troutman]

https://www.bostonglobe.com/metro/20...IYJ/story.html

Legalization has ushered in thousands of new jobs in the burgeoning industry, brought $135 million into state coffers last year, and ended the prohibition of a widely used substance.

The poll found 53 percent believe legalizing marijuana has been good for the state, while 39 percent believe it has been bad.

Sally Vander Veer, president of one of the state’s largest dispensaries and cultivation operations, which has 70 employees and a payroll of about $3.8 million a year, is bullish on her rapidly expanding business. Medicine Man has a 40 percent profit margin, she said. But her company struggles with what she estimates to be an effective tax rate of nearly 50 percent, as well as having to deal almost exclusively in cash. Because marijuana remains illegal under federal law, access to banking services is severely restricted.

[Cappy]

Calgary has some uphill battles when meeting Denver's growth in non-energy areas.

Tech industry growth in Calgary is probably limited for the near future given the prevalence in Vancouver and Toronto.

The two industries leading the growth in Denver? Pot and beer. Each with its own issues in having Calgary/Alberta lead Canada in those areas.

[Resolute 14]

Originally Posted by nik-

Pretty much no one says that. Unless you take people pointing out that there's no magic "Diversify Economy" button that we just haven't pressed yet as saying it's a waste of time.

Look at who you are replying to. Polak has been mooning threads up all over the place lately trying to get a rise out of people.

[nik-]

Originally Posted by polak

Before this price slump got really bad and the election was happening pretty much every one was arguing that "it wasn't worth it" and that we should just focus on getting as much oil out of the ground as we can.

No they weren't. Diversifying Alberta's economy isn't something invented by the NDP in the last two years. It's been talked about for a long time. Just wanting to do it doesn't mean the math works though.

[ResAlien]

Many people see the legalization of pot as one of the major reasons Denver's housing market is so out of control right now. Along with already ongoing gentrification of traditionally lower income areas (The highlands, RiNo) this is pricing many families out of their own neighbourhoods and spiking cost of living. If Calgary's goal is to be a one horse town with a light rail station then sure, Denver's who to look up to.

[HockeyIlliterate]

Originally Posted by ResAlien

Many people see the legalization of pot as one of the major reasons Denver's housing market is so out of control right now. Along with already ongoing gentrification of traditionally lower income areas (The highlands, RiNo) this is pricing many families out of their own neighbourhoods and spiking cost of living. If Calgary's goal is to be a one horse town with a light rail station then sure, Denver's who to look up to.

Denver (and its surrounding areas) are undoubtedly pleasant, but you are correct in that housing market is rapidly approaching insane levels and the traffic from Fort Collins to Colorado Springs is an unmitigated disaster just about every day. The quality of life in Denver just isn't what it used to be, with I-70 and the mountains clogged with people on the weekends. In fact, I know more people who are leaving there than who are moving there.

[Winsor_Pilates]

Originally Posted by Cappy

Tech industry growth in Calgary is probably limited for the near future given the prevalence in Vancouver and Toronto.

We are also seeing a lot of industries like tech struggle to find talent in Vancouver and Toronto because the cost of living is too high.

Maybe that's a good opportunity for Calgary to try and lure in some tech companies with the promise of a large, talented employee pool who can actually afford to live in the city.

[troutman]

H&R Block taking advantage of economic downturn, moving into core

http://www.660news.com/2016/10/18/hr...n-moving-core/

[Cappy]

Originally Posted by Winsor_Pilates

We are also seeing a lot of industries like tech struggle to find talent in Vancouver and Toronto because the cost of living is too high.

Maybe that's a good opportunity for Calgary to try and lure in some tech companies with the promise of a large, talented employee pool who can actually afford to live in the city.

I agree that it is a great opportunity, but it's going to be tough to move those companies out of Southern Ontario. They seem to just spread further out in search of cheaper living while also keeping proximity to their main market in Toronto. Hamilton/K-W, Guelph, Windsor all offer discounted markets that these guys move into - and all are still cheaper to move to then a depressed Calgary market.

I for one think a golden opportunity was missed during the boom to attempt to lure own of the big banks to Calgary. Hopefully it's not forgotten during the next boom, but we seem to have short memories in AB.