Economic Update

December 12, 2019

March 2018 Population 98,381

71,332 urban 27,049 rural

2.9% growth over three years. 1% per year

4,371,316 in (July 1st, 2019) 37,589,262 in (July 1, 2019)

201812/16/2019 Municipal Census results, Strathcona County, population estimates Sept. 30, 2019 2 Strathcona County Fast Facts

Urban and Rural Mix 71,332/27,049 • • Ardrossan • South • • • • •

12/16/2019 3 CMA Stats

12/16/2019 4 Edmonton CMA Stats

New House Avg. Prices (Edmonton CMA) • The average price for single-family homes absorbed in the Edmonton region in September increased by almost 4% year-over- year to $597,913 (CMHC data). • After 3 quarters this year, the average absorbed single-detached price has declined 0.9% from January to September 2018 to $554,339.

Population Edmonton CMA 1.42 million 2018

12/16/2019 5 Edmonton Global

12/16/2019 6 Edmonton Global

12/16/2019 7 DEMOGRAPHICS

12/16/2019 8 Work Commute 65% 50% Residents Non-residents

201612/16/2019 census results 9 18,650 into SC

12/16/2019 10 12/16/2019 11 Average Household Income

$160,655

50.7% of total households in Strathcona County $ had income of $125,000 or higher Average income of Economic Families $188,347

201612/16/2019 McSweeney report 12 Household spending power

$5.6 billion

12/16/2019 13 People per household

2.7 2.6 for Alberta 2.4 for Canada

201612/16/2019 census results 14 Age

39.2 Average in Canada is 40.8 Average in Alberta 37.1

201612/16/2019 census results, Sept. 2019 Statistics Canada 15 Building Permit Values

16 16 Projected tax increase

Tax Revenue Percentage Split: (%)

Non- 64 Residential Residential 36 Tax Increase: 2019 0.83 2020 1.21 2021 1.88* 2022 1.61*

12/16/2019 17 * Projected by Council Impact of tax rate for site selection

Amazon 1,000,000 sq. ft. Projected: Leduc $1.6 million Edmonton $3.24 million Strathcona $1.94 million County

12/16/2019 18 Housing update Lorenz Team

12/16/2019 19 COMMERCIAL

12/16/2019 20 Retail Market Supply

TOTAL 4.1 million sf VACANT 226,035 sf

VACANCY RATE ~6%

Source:12/16/2019 Thomas Consulting Jan. 23 2018 21 Sherwood Park Mall and Centre in the Park

12/16/2019 22 Sherwood Park Mall

New experience coming to Cineplex Cinema Sherwood Park- Multi million dollar investment • All Recliner Seating: Coming soon in 2020, each of the theatre’s auditoriums will be upgraded to feature comfortable, extra-wide seats that recline at the touch of a button

12/16/2019 23 Centre in the Park

12/16/2019 24 The Market at Centre in the Park

12/16/2019 25 Cameron Developments – The Market

12/16/2019 26 Savona

12/16/2019 27 Remedy Café Savona Now Open

12/16/2019 28 My Savona www.salvigroup.com

12/16/2019 29 12/16/2019 30 12/16/2019 31 Aspen Plaza Corner of Sherwood Drive & Lakeland Drive

12/16/2019 32 Aspen Plaza Corner of Sherwood Drive & Lakeland Drive (97,112 sq.ft)

www.aspenplaza.ca

12/16/2019 33 Emerald Hills Shopping Centre

12/16/2019 34 Emerald Hills Shopping Centre

12/16/2019 35 Emerald Hills Retail

12/16/2019 36 Emerald Hills

12/16/2019 37 Sandman Signature and Chop Steakhouse

12/16/2019 38 Buckingham Business Park

12/16/2019 39 Buckingham Business Park

12/16/2019 40 Join Peavey Mart - Broadmoor Commercial

12/16/2019 41 Broadmoor Commercial Site Plan

12/16/2019 42 Millennium Ridge Q2 2020

12/16/2019 43 Millennium Ridge Phase 2

12/16/2019 44 Ardrossan Commercial

• 19.71 Acres for sale

• South Corner with 4-5 acre parcel for commercial

12/16/2019 45 Emerald Hills Retirement Residence by: Chartwell

12/16/2019 46 Aster Gardens by: Optima Living

12/16/2019 47 Office Leasing

TOTAL 1.4 million sf VACANT 369,804 sf

VACANCY RATE 26.3%

Source:12/16/2019 Colliers Q3 2019 48 Broker Reports for Metro Edmonton Industrial

12/16/2019 49 Emerald Hills Professional Building

12/16/2019 50 Wye Business Centre

51 Market Updates

• 120,000 square feet of 2019 office absorption

12/16/2019 52 New and Upcoming

12/16/2019 53 Retail Sales Gap Recommendations

12/16/2019 54 Bremner & Local Employment Area

• On Sept 10, council passed 2nd and 3rd reading and voted to adopt the Bremner & LEA Area Concept Plan (ACP)

• 20km2 area, 80,000 resident capacity, 40 year projected build- out

• Developers can now approach Strathcona County to develop Area Structure Plans (ASPs)

12/16/2019 55 Bremner What Next

• The first Sub-Area Structure Plan is anticipated to be in the northwest near Township Road 534 and Highway 21.

• Infrastructure (roads and utilities) development costs and timing are yet to be determined

• ~15% of total infrastructure will be built in first 10 years

12/16/2019 56 Development Concept Bremner

12/16/2019 57 Development Concept LEA

12/16/2019 58 INDUSTRIAL

12/16/2019 59 Oil Pricing is complicated

Exchange value

$US 55.67 = $Cdn 73.92

Average YTD

$US 56.69 = $Cdn 75.27

12/16/2019 60 Refinery Western Canada

With delay in production for NWR until 2020, 69% of total refinery capacity is in Strathcona County 12/16/2019 61 Alberta's Industrial Heartland: Economic Impact

12/16/2019 62 12/16/2019 63 Trans Mountain Update

12/16/2019 64 Major Projects in the AIH

• Heartland Petrochemical Project $4.1 • Three projects in SC portion of the billion AIH going through study • CKPC and Pembina PDH and PP • Total value of the projects over $12.0 $4.5 billion billion • Shell Scotford two turn arounds 2019 • Project in other parts of the AIH in • NW Refinery turn around and final the range of $3.0 billion - $5.0 billion work $250 million • Suncor investing $1.4 billion to low • Alberta Carbon Capture Line $500 carbon power cogeneration in Ft. million McMurray • Enbridge Line 3 operating and • Imperial Oil (Exxon Mobil) Aspen affecting volumes from SIA and AIH project in Wood Buffalo 75,000 bpd in-Situ

12/16/2019 65 Heartland Petrochemical Interpipeline

As of the end of September, Inter Pipeline Ltd. says it has invested approximately $1.9 billion of the estimated $3.5-billion capital cost of the Heartland Petrochemical Complex, a propane dehydrogenation (PDH) and polypropylene (PP) facility under construction near .

The company reported $337.6 million in capital spending on the project for the third quarter, for the procurement of materials and construction services. “Milestones for the third quarter include completing piling activities with approximately 6,500 pilings installed, commencing structural steel erection for the polypropylene plant, and installing the first major components of the central utility block,” Inter Pipeline said earlier this month.

“The last major equipment lifts for the complex were also completed in the quarter with the installation of the propane dehydrogenation flare stack and the 300-tonne polypropylene purge bin.”

12/16/2019 66 Heartland Petrochemical Complex

• https://www.youtube.com/watch?v=2phsi56cSG4

12/16/2019 67 NW Refinery

12/16/2019 68 CKCP and Pembina $4.5 billion

12/16/2019 69 Alberta Carbon Trunk Line - $500 million

12/16/2019 70 Vision for AIHA

12/16/2019 71 Contact

For further information, contact Strathcona County Economic Development & Tourism:

Gerry Gabinet, Director Stephen Rausch, Senior Business Development 780-464-8257 Specialist [email protected] 780-464-8241 [email protected] Shane Olson, Commercial Development Manager 780-464-8259 Richard MacDonald, Small Business & Tourism [email protected] Specialist 780-416-6757 Sean McRitchie, Industrial Development Manager [email protected] 780-410-8511 [email protected]