The City of Lloydminster is located on the Yellowhead Highway approximately 250 km east of Edmonton, 275 kilometers west of Saskatoon and straddles the fourth parallel (Alberta/Saskatchewan border). Lloydminster centers in some of the richest farmland in Western Canada. The district enjoys a buoyant economy with a mixed agricultural and oil industry base. The City centers a 2,500 square mile oilfield, said to be the largest concentration of heavy crude in North America. Oil activities, particularly servicing, refining, pipelining and now upgrading, have been a predominant Lloydminster industry for many years.
Since the construction of the Bi-Provincial Upgrader in 1992, Husky has built the 215 megawatt Meridian Co-generation Plant which reached full operating capacity in 1999. Plans are underway to build western Canada's largest ethanol plant which will entail approximately 300,000 man-hours of construction, peak construction workforce of about 300 people and will employ 25-30 full time permanent positions once the plant is operational. This plant will support the local economy by purchasing goods and services from local suppliers including approximately 350,000 tonnes of feedstock from local producers. It will produce 130 million litres of fuel grade ethanol per year and 134,00 tonnes of distillers dried grain with solubles (DDGS) per year. Husky Oil has also announced a future expansion of the upgrader, however the timing of this expansion has not yet been determined due to global fluctuations in oil prices.
Construction of the "Power Center" on the west edge of the city in 1999 expanded the retail presence considerably and has created the equivalent of 500 to 600 full time jobs. In terms of accommodation, there is in excess of 800 hotel and motel rooms and over 50 restaurants of all types. The City is well served by a complete line of retail stores, service facilities and professional services.
Lloydminster has numerous parks and playgrounds, two golf courses and other leisure facilities, including an outdoor swimming pool and an indoor swimming pool and water slide, and many other recreational facilities. The groundwork for a $25 million dollar multiplex sports complex has already begun on the south side of the city. The new multi-use recreational complex will contain twin ice arenas, twin indoor fieldhouses, a fitness wellness center, a physiotherapy/sports medicine center, upper level running track, exterior oval speed skating rink, child care space, retail sports shop, concession kiosk, lounge/kitchen, etc. and will service Lloydminster and the surrounding communities.
There is a full range of educational facilities, including the multi-million dollar Lakeland College Campus developed in the southwest sector of the city. This campus provides community college courses and first and second-year university courses in several disciplines. The Vic Juba Community Theatre is also a new 555 seat arts and entertainment theatre recently completed on the Lakeland College Campus.
Lloydminster is one of the most dynamic smaller cities in Canada. Forecasts predict that the City will continue to build. The city's strategic location plus its strong foundation in agricultural, oil and retail industries indicates positive economic growth for Lloydminster in the foreseeable future.
Lloydminster was settled by the Barr Colonists on April 17, 1903. From their original campsite 2 miles north of the city, they built their town in what was then, the Northwest Territories. In 1905, the provinces of Alberta and Saskatchewan were formed, and the fourth meridian was chosen to be the provincial boundary. Lloydminster originally existed as two separate communities with their own fire departments, municipal organizations, etc.
On August 29, 1929 Lloydminster experienced a major fire which completely leveled several blocks of the downtown core. Damages were estimated at over a million dollars. Eventually, the downtown core was re-constructed mostly of brick rather than wood, deterring potential fire hazards. The Town of Lloydminster Saskatchewan and the Village of Lloydminster, Alberta amalgamated on May 20, 1930 to become the Town of Lloydminster and on January 1, 1958 attained the status of "city". Historically, the City grew quite rapidly until the early 1980's, leveled off, and then the recession in the oil industry caused a slight decline. Growth started again and the population showed a steady increase since that time. This is largely due to the development of the Bi-Provincial Heavy Oil Upgrader and the expected secondary industry, the strengthened oil economy, retiring farmers and the development of the City into a regional centre. According to the Economic Development office, Lloydminster has a present estimated population of slightly over 23,000 people.
3.0 Downtown Core
Today, the downtown core of Lloydminster has become a place of specialty retail stores, banking institutions and professional offices.
The Lloydminster BID (Business Improvement District) is an organization formed by the downtown business community which primary objective is to enhance and secure a solid future for the downtown area.
The study area includes the retail/commercial and office component of the downtown area which encompasses anything north of 44th Street and south of 51st Street and anything east of 52nd Avenue and west of 48th Avenue. Square footage above grade only was taken into consideration. Excluded from the study were institutional facilities such as City Hall, funeral homes, hotels, churches and government owned buildings such as the Post Office.
5.0 Retail Space Overview
The information gathered and summarized in the following chart is effective as of
February 2005:
The overall downtown vacancy is 67,054 sq. ft. with 35,701 sq. ft. vacant on the Alberta side and 31,353 sq. ft. vacant on the Saskatchewan side. Most of the vacant space can be made into either retail or office space, depending on the needs of the prospective lessee/purchaser. One of the reasons for the high vacancy can be attributed to very little parking available, for businesses as well as prospective clientelle. This problem is the same for most, if not all the downtown areas in communities in western Canada. The lack of parking and major anchor businesses exacerbated by the traffic volume on the street, forces customer bases to the newer malls, box stores, etc. This is a very important factor. The City of Lloydminster, the Lloydminster Chamber of Commerce, the Streetscapes Co. and BID have been trying to address this ongoing issue over the past few years.
Discussions with leasing agents indicate that vacant retail/office space downtown is in the $5.50/ sq. ft. to $10.00/sq. ft. net range. Average asking price on the Alberta side of the border is $7.17/sq. ft. and $8.28/sq. ft. for the Saskatchewan side.
Our sincere appreciation is extended to the Streetscapes Co. , the Economic Development Department and the Engineering & Planning Department, both of the City of Lloydminster, and various real estate agents.
9.0 Qualifications
Readers of this Study are welcome to use the information as deemed appropriate,
providing McInnes & Company Appraisals Ltd. are quoted as the reference
source. The information contained herein is believed but not warranted to be accurate. Readers are cautioned
to make their own investigation before making any financial decisions.
McInnes & Company Appraisals Ltd. is a real estate appraisal firm
with many years experience, providing a wide range of appraisal services, with the primary
market being the northwest portion of the Province of Saskatchewan and
the northeast portion of the Province of Alberta.
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