House prices rose and unemployment shrank for a good portion of the last decade but as the world ushered in 2009 it was clear the party had come to a crashing end.

The repercussions of America’s brush with a banking failure and subprime mortgage meltdown were felt around the world and fears of a global depression seemed very real.

Fast forward 12 months to today and many economists are predicting the worst is over. But the fallout from last year is still presently felt and local politicians continue to grapple with the revenue shortfall.

Interest rates have plunged and development cost charges have dried up, forcing city councillors to make difficult budget decisions.

However, city hall is not the only place feeling the pinch.

Demand at local food banks is up 25% in this region while donations across the Lower Mainland are down.

Construction also slowed in the area, with housing starts falling 75% in the Tri-Cities compared to 2008 figures.

In Coquitlam, the number of new multi-unit dwellings decreased from 1,366 units in 2008 to 265 up to November 2009 while the total number of units dropped from 1,453 to 427.

In Port Coquitlam starts dropped from 228 to 88 and in Port Moody the number fell from 374 to seven.

GANG PROBLEM

The Tri-Cities were not immune to the gang problem that plagued most of the Lower Mainland for much of 2008 and 2009.

Convicted Surrey six killer Dennis Karbovanec and notorious gangster Jonathan Bacon called the area home for the first part of the year — under the watchful eye of police.

Port Moody police made the unusual announcement that the alleged Red Scorpion gang members, who were friends at the time, were living in the municipality. They warned that those who associate with either Karbovanec and Bacon were in danger.

The Red Scorpions spent most of the last two years locked in a vicious gang war with rival Fraser Valley UN gang. The dispute led to the killing of numerous gang members across the region.

Jonathon Bacon survived a shooting in the driveway of his parents’ Abbotsford home in 2006 and Dennis Karbovanec survived a shooting on New Year’s Eve 2009.

Port Moody police followed the men everywhere they went, conducting around the clock surveillance of the pair. The extraordinary measures were taken for the safety of the alleged gang members and the public, police said.

While the pair were seen having coffee together it is likely their friendship ended after Karbovanec pleaded guilty to three charges of second-degree murder and one charge of conspiracy related to the Surrey six murders. He is expected to testify against three of his former associates, including Jonathan Bacon’s brother James.

FIN'S SWIM

Long time Coquitlam councillor Fin Donnelly helped the NDP hang on to the federal New Westminster-Coquitlam riding in a November byelection.

Donnelly faced off against Conservative candidate and Port Moody Coun. Diana Dilworth, Green party candidate Rebecca Helps and Liberal candidate Ken Beck Lee.

Donnelly took 49.6% of the vote compared to Dilworth who had 35.8%, Lee who had 10.3% and Helps who took 4.3%.