Thanks very much Steve!
I discussed this issue last week with my Google Engage advisor and she recommended focusing on "shoe repair" instead of "Calgary shoe repair" since we'd be targeting the Adwords campaign to a specific city. My landing pages will be focused on my Houston equivalent of "shoe repair" and "Calgary shoe repair."
As an aside, it surprises me that "Calgary shoe repair" would have 1000 searches per month and "shoe repair" within Calgary would have only 750 searches. The keyword planner is supposed to include mobile searches and you'd think that most people wouldn't include Calgary in the search phrase in a mobile device search -- they'd just key in "shoe repair" on the tablet or smart phone. My impression is that search volumes Google publishes for "Calgary shoe repair" and "shoe repair" within Calgary are not exact and should be considered as kind of "order of magnitude" estimates of search volume. Please let me know what you decide to do in your campaign and what results you see.
Thanks again, Paul