From ATVs to snowmobiles, John Hammell's sports and recreational sales are booming as just one of many signs the town of Kirkland Lake continues to ride the high price of gold.
With many new faces moving to town to capitalize on the successes of Kirkland Lake Gold and various active juniors, Hammell has seen a rise in interest in many of the "toys" he has on offer at his business, Northern Freedom.
"It's really been fantastic this last while, and our bikes have been selling great," says Hammell.
"The growth of the town, with all these confident people coming in, is adding more people to our shopping list."
Along with his wife Tina, Hammell started the business just three years ago after the former Parry Sound native spent a decade in Barrie. Staff has since grown to nearly 12, and he recently created a self-storage business so customers have a place to house their snowmobiles, ATVs and boats in the off-season.
This newfound confidence in the local economy continues to shine in other areas, such as the housing market, an area in which Hammell also has a hand as a Viceroy Home dealer.
Sales have been relatively strong, he says, an opinion also reflected by Mike Guimond, a long-time local realtor and broker of record with Mike Guimond Realty Ltd.
Housing sales have persistently remained strong throughout the last two years, with sales through 2009 to date already up 20 per cent over the same period last year. In fact, this year marks one of the best years Guimond has ever had in his 31 years in the business.
The average sale price for a home is currently running between $70,000 and $75,000, a cost which is proving increasingly attractive in contrast to the rising cost of homes elsewhere.
"I know some guys who sold their house here a couple of years ago in the $50,000 and $60,000 range and had to go to Sudbury and buy something for over $200,000," says Guimond. "Now some of them are coming back."
However, this rising interest has created some minor struggles in terms of supply, as new home construction remains quite low. Town officials have tried to spark private sector interest in new construction by purchasing and preparing the grounds of the defunct King George school as a potential subdivision.
Room is being made available for up to 20 homes, though the site has seen no takers as of yet.
Some investors have simply been buying up some of the town's supply of older homes and fixing them up before putting them back on the market for a higher price.
If the low supply continues, however, Guimond anticipates it won't be long before the private sector changes its mind about building.
"That happened in the mid-80s when American Barrick opened up here on Highway 101. The town serviced one new streets and all the lots were gone within six to eight months, and it could very well happen again."
One person who believes this can and will happen is Wilf Hass, project manager with Kirkland Lake's economic development division.
As the basis of his confidence, he draws not only from the mining industry but also from various other successful local efforts, such as the Materials Joining Innovation Centre (MaJIC) at Northern College, and Rosko Forestry's new sawmill.
The town has also seen a constant stream of inquiries from small- and medium-sized businesses interested in setting up shop, while some bigger-name hospitality firms have also been considering the area, he says.
This interest has translated to such new venues as Boucher Performance, a high-performance sales and small engine repair shop, and the rebranding of a local grocery to a larger-scale Foodland outlet.
"Gold really is the starting place for everything that's taking place here," says Hass. "We've always accepted the reality that we're at the crossroads between Temiskaming Shores, Timmins and Rouyn-Noranda for shopping, but you're seeing more people stay locally now too because more stuff is available."
www.northernfreedom.ca
www.realestatekirklandlake.com
www.town.kirklandlake.on.ca
