Regina Regional Economic Profile:The Regina Advantage

August 2015

Table of Contents

Community Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

The Regina Advantage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Regional Collaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Regina CMA Key Economic Indicators . . . . . . . . . . . . . . . . . . 17

Corporate Tax Rates and Incentives . . . . . . . . . . . . . . . . . . . . 21

Regina Municipal Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Regina CMA Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Availability of Skilled Labour . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Top Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Education, Training, and Research . . . . . . . . . . . . . . . . . . . . . . 31

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Advanced ICT Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

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This Regina Regional Economic Profile outlines the key economic indicators about the city of Regina, our region, and the province of Saskatchewan as an attractive destination for investment. It also reveals a region with a high quality of life, full of venues and attractions for business and recreational tourists.

1

Community Profile

City Vision

“Regina will be Canada’s most vibrant, inclusive, attractive, sustainable community, where people live in harmony and thrive in opportunity.” - Design Regina

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The City of Regina adopted its Official Community Plan, Design Regina, in 2013 providing a vision for growth that will see the city grow to a projected population of 300,000 by 2041.

In order to support a solid foundation for this plan, the city also decided upon a set of community priorities, which give direction to the goals of the plan and the policies that will lead to their achievement:

• Develop complete neighbourhoods

• Embrace built heritage, and invest in arts, culture, sport, and recreation

• Support the availability of diverse housing options

• Create better, more active ways of getting around

• Promote conservation, stewardship and environmental sustainability• Achieve long-term financial viability• Foster economic prosperity

• Optimize regional cooperation

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Community Profile

Introduction

The Regina region is one of the fastest growing in Canada, as new residents attracted by economic, environmental, social, and cultural opportunities move into the area. The GDP of the Regina CMA is forecast to reach 14.48 billion dollars in 2015.

Long term projections for the regional economy are unanaimous: Regina and area will experience consistent growth of population and gross domestic product in the years ahead.

The economy of Regina is closely aligned with the agriculture, oil & gas, and mining sectors that drive the Saskatchewan economy. The city has historical relationships with companies in those sectors, and enjoys geographic closeness to important resource assets like potash mines and oil fields.

There is also a large service sector in Regina including banking and insurance companies, wholesale suppliers and significant transportation and logistics resources including the Global Transportation Hub, the only self-governing multimodal inland terminal in the Canadian prairies.

Regina is home to several large post-secondary educational institutions, including the University of Regina, Saskatchewan Polytechnic, and the First Nations University, the only aboriginal degree-granting university in North America.

There is a large and stable pool of labour, not only from within the city boundaries, but also the surrounding area with workers commuting from as far as 45 minutes away, while living in the numerous small communities in the area. The city of Moose Jaw, with a population of 40,000 people is just 40 minutes west of Regina.

A strong spirit of collaboration exists between government jurisdictions and business organizations in Regina and region. The city of Regina and its nearby small urban centres and rural municipalities are ready and willing to work together, and to coordinate and co-operate with the provincial government, to assist the process of development and growth in the area. The Regina Region is investment-ready and planning for the future.

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Community Profile

About RROCRegina Regional OpportunitiesCommission (RROC) is the leadeconomic development agency forthe City of Regina and region. RROCprovides leadership to the communitywith specific accountability for thefollowing core functions:

• Support industry growth and diversification through retention, development and attraction of industry and tourism.

• Find innovative ways to promote sustainable growth while effectively addressing the challenges of associated with it.

• Market and promote the Regina region for business and tourism.

• Ensure the Regina region offers a vibrant and diversified economy for investors, is a positive destination experience for visitors and offers a high quality of life for residents

RROC’s Investment Attraction Officeprovides free, confidential, andcustomized advice to companies andinvestors. We are an “investmentconcierge”, offering business intelligence,path-finding to local resources, andintroductions to government agencies asrequired.

RROC provides direct support toentrepreneurs through its Square Onebusiness resource office, and deliversservices to immigrant investors underthe Saskatchewan Immigrant NomineeProgram.

Regina’s economy is driven by a numberof large sectors including agriculture,mining, oil & gas, manufacturing,construction, transportation &warehousing, and the various companiesinvolved in banking, insurance andfinance. It also includes significantemployment in public administration,health care, and education.

Research indicates that expansion ofexisting companies and start-ups areresponsible for 99% of the new jobscreated in most local economies.

In order to maximize the impact ofits work, RROC is pursuing a sectordevelopment strategy, which currentlyfocuses resources on the growth anddevelopment of these key industrysectors:• Fabricated metal manufacturing• Machinery manufacturing• Tourism• Food processing• Events, conventions and tradeshows

RROC also operates Tourism Regina,the official destination marketingorganization representing Regina andregion. It works in collaboration withthe Regina region’s tourism sectorand industry partners to promote andenhance Regina as a destinationexperience.

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The Regina Advantage

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We blend “country life” benefits like clean air, open spaces, and closeness to nature, with “city life” amenities in areas such as education, health care, culture and entertainment, recreation, and shopping.

Regina and region offer an outstanding quality of life.

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High Incomes + Low Living Costs = Spending Power

The Regina Advantage

Sources: Government of Saskatchewan, Statistics Canada, Real estate associations, RROC.

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21%1Average house price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $331,161Provincial taxes and health premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,874Utilities & auto insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,297Mortgage & property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,413Total Household costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,584Median family income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,200Household costs as a % of median family income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21%

REG

INA

24%2Average house price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $465,047Provincial taxes and health premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .??Utilities & auto insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,434Mortgage & property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,092Total Household costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,871Median family income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,300Household costs as a % of median family income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24%C

ALG

ARY

28%3Average house price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $270,605Provincial taxes and health premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,573Utilities & auto insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,828Mortgage & property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,084Total Household costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,485Median family income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,880Household costs as a % of median family income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28%W

INN

IPEG

32%4Average house price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $264,447Provincial taxes and health premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,811Utilities & auto insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,608Mortgage & property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,112Total Household costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,531Median family income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,490Household costs as a % of median family income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32%

HA

LIFA

X

33%5Average house price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $344,273Provincial taxes and health premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,067Utilities & auto insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,868Mortgage & property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,522Total Household costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,457Median family income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,390Household costs as a % of median family income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33%M

ON

TREA

L

47%6Average house price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $587,505Provincial taxes and health premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,974Utilities & auto insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,651Mortgage & property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,168Total Household costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,793Median family income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,210Household costs as a % of median family income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47%TO

RON

TO

54%7Average house price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $819,336Provincial taxes and health premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,425Utilities & auto insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,558Mortgage & property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,177Total Household costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,160Median family income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,140Household costs as a % of median family income . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54%VA

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UVE

R

The Regina Advantage

Regina is the proud home of Wascana Centre, a 2,300 acre greenspace that cuts through the middle of our city and is one of the largest urban parks in North America. The park includes walking and biking trails, a lake and creek, natural habitat for birds and fish, and an excellent venue for non-powered boating. Wascana Centre hosts over 2,000 outdoor community events each year.

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Advantage: Greenspace

Regina has its own symphony orchestra, professional theatre company, music conservatory, community theatre company, Folk festival, Country festival, Blues festival, African festival, and Caribbean festival. Regina hosts concerts and performances by artists of national and international status, at its world class soft-seat theatre and hockey rink venue, as well as its 33,000 seat outdoor stadium.

Performers have included: Sir Paul McCartney, The Rolling Stones, Blake Shelton, AC/DC, Erica Badhu, John Mellencamp, B.B. King, Moscow Ballet, Cirque du Soleil and the Three Tenors.

Students in Regina access Kindergarten to Grade 12 in our Public and Catholic School systems, French immersion schools, as well publicly-funded Christian, Huda, and Montessori schools, and a private residential high school.

Graduates can then choose a degree at the University of Regina, and its affiliated college the First Nations University of Canada, or career skills training at Sask Polytechnic and a variety of trade-specific training facilities.

The Regina Advantage

Advantage: Lively Arts

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Advantage: Educational Opportunity

The Regina Advantage

Advantage: Sports and Recreation Regina offers an incredible variety of options for recreation and entertainment, through community-based facilities for all kinds of minor and school sports, and the arts.

Saskatchewan’s only professional sports team, the Canadian Football League’s Saskatchewan Roughriders, are owned by the community, draw 33,000 fans per game, and boast a rabid following known across Canada as “Rider Nation”.

You can also enjoy Canadian Intercollegiate sports and major junior hockey.

And all kinds of outdoor fun, winter and summer!

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Photos courtesy SaskTourism

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The Regina Advantage

Advantage: Health Care

The Regina Qu’appelle Health District operates two major hospitals, which between them provide world-class health care in all medical specialties. There is an ample selection of family medical clinics and walk-in facilities spread throughout the community.

Free universal medical care, which is available to all Canadians, was first offered in the province of Saskatchewan.

Advantage: Multicultural

Canadian society is known as a “mosaic of cultures”, where ethnic roots and traditions are celebrated and welcomed by the entire community. There are vigorous community, cultural, and religious groups representing virtually every country on the planet here.

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We come together each June for the three day Mosaic Multicultural Festival, which offers a world tour of food, drink, and entertainment at some 30 festival pavilions scattered across the city.

Location

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Regina is the capital of Saskatchewan, located in Western Canada.

The population of the Regina Census Metropolitan Area (CMA) is 237,758 with an estimated trade area population of 500,000 people.

Land area of the Regina CMA is 3,408.3 square kilometres with a population density of 61.8 people per square kilometre.

Thanks to its central location, the Regina region is connected to markets of 5.3 million people within a 800 km radius and 81.3 million people within a 2,000 km radius.

Regina’s strategic location

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Location

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Regina census metropolitan area (CMA)

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Location

City Distance Miles Distance Kms Driving Time Flight Time

Saskatoon 161 259 2 hours, 37 min. 45 minutes

Winnipeg 355 571 6 hours, 15 min. 1 hour, 5 min.Calgary 471 758 7 hours, 23 min. 1 hour, 27 min.Edmonton 486 782 7 hours, 47 min. 1 hour, 48 min.Minneapolis 743 1196 14 hours, 52 min. 1 hour, 56 min.Denver 890 1432 14 hours, 52 min. 2 hours, 16 min.Vancouver 1073 1727 18 hours, 53 min. 2 hours, 23 min.Chicago 1152 1854 19 hours, 0 min. 4 hours, 46 min.

Phoenix 1580 2543 27 hours, 48 min. 3 hours, 3 min.

Driving distance/flying time to major centres

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Connection to railways and intermodal facilities

Regional Collaboration

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Regina International AirportRegina International Airport (YQR) is southern Saskatchewan’s Gateway Airport. YQR links our critical manufacturing, mining, energy, technology and service industries to Canadian and International markets and connects tourists to our great province. Passengers total over 1.26 million annually and many, many more travel in and out of the airport each year. To address this increasing traffic demand YQR has initiated an aggressive capital program to meet the current and future demands of its users and stakeholders. In addition, YQR is investing significantly in the future of southern Saskatchewan with major investments in commercial airside and groundside lease developments. Regina International Airport offers domestic, transborder and international flight services with a continued focus on additional air service connectivity opportunities. YQR is committed to strengthening access to key global markets and understands the economic impact of air service and its’ business significance to Regina and southern Saskatchewan.

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Regional Collaboration

The Regina region is one of the fastest growing in Canada and it will continue to grow as people, attracted by economic, environmental, social and cultural opportunities, move into the area.

The Regina economic region extends well beyond the boundaries of the City of Regina. Production networks inextricably link the potash mines, oil fields and agricultural production in rural areas with the services that are found within the city such as: construction companies; research and development labs; marketing, financial and legal firms; transportation and technical services providers.

The region is a source of workers who live in, and commute to, places of employment in the surrounding region, as well as workers who live beyond municipal boundaries but work within the city and surrounding communities.

To maximize growth opportunities in the region and throughout southern Saskatchewan, stakeholders are working together to create a stable, sustainable and diverse economy.

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Regina CMA Communities

City• Regina

Towns• White City• Pilot Butte• Lumsden• Balgonie• Regina Beach

Villages• Grand Coulee• Pense• Buena Vista• Edenwold• Belle Plaine• Disley

Rural municipalities• Edenwold No. 158• Lumsden No. 189• Sherwood No. 159• Pense No. 160

Rural villages• Lumsden Beach

Regional Collaboration

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The Moose Jaw-Regina Industrial Corridor is home to 24% of the province’s population and generates approximately 23% of Saskatchewan’s GDP. The corridor acts as a prime transportation hub featuring major highway and rail links to the east, west, north, and south into the United States.

The corridor is a collaboration of the cities of Moose Jaw and Regina, and the Rural Municipalities of Sherwood, Pense, Belle Plain, and Moose Jaw. For industrial and commercial investors, it provides coordination with utilities, highways department, and the provincial government.

Moose Jaw-Regina Industrial Corridor

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White Butte Regional Planning Committee

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The White Butte Regional Planning Committee is a group of smaller municipalities located immediately east of Regina. The City of Regina works with them bring a regional view to infrastructure planning and construction, in order to enhance opportunities for new development and maximize efficiencies between the municipalities. Key areas of focus include: transportation, recreation, education, fire protection, public works, land use, water treatment and waste water management.

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Moose Jaw

Regina

The Global Transportation Hub is Canada’s only autonomous and self-governing Inland Port Authority.

The GTH is a 1,700 acre development area strategically located at the west end of the city of Regina, offering customized greenfield build opportunities and a logistically superior design.

The Global Transportation Hub sits adjacent to the Canadian Pacific (CP) railway mainline and between two national highway system routes providing direct access to all major Canadian ports, Gulf coast ports, and mid-western US ports, as well as trucking connections to all major networks including Trans-Canada, Minneapolis, Chicago, and Mexico.

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Regional Collaboration

Global Transportation Hub

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GTH TenantsCanadian Pacific Railway (CP)The new intermodal facility is designed to process up to 250,000 container handlings per year or five times more container handlings per year when compared to CP’s former Regina terminal.

Loblaw Group of CompaniesCanada’s largest food retailer, anchor tenant with a 1,000,000 square foot warehouse, providing food product distribution to western Canadian stores.

Consolidated Fastfrate10,000 square foot cross dock facility, co-located with Canadian Pacific’s intermodal rail yard. Fastfrate has a long term partnership with CP Rail and is the largest boxcar shipper of LTL freight in Canada.

The Emterra GroupEmterra is the curbside recycling contractor for the City of Regina. They operate a sorting and packing facility.

Morguard Investments LimitedProvides leased facilities designed for the transportation and distribution sector.

Saskatchewan Liquor and Gaming Authority The provincial liquor agency has established a new 145,000 square foot liquor distribution warehouse.

SaskPower Saskatchewan’s government power utility is building a Logistics Warehouse Complex consisting of: 221,000 square foot building for nearly 1,100 employees; plus 273,000 square feet of industrial buildings housing shops, warehouses, storage and maintenance areas.

Sterling Truck & Trailer Sales, Hornoi Leasing, and S.H. StorPark Inc.Sterling Truck & Trailer has been a staple in the Saskatchewan trucking community for over 40 years while Hornoi Leasing Ltd is one of Canada’s largest leasing operations. S.H. StorPark Inc. provides container transportation, handling, storage and repair services.

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Regina CMA Key Economic Indicators

After several years of explosive growth, the economy of Regina will continue to grow at a more modest pace from 2015 to 2019 according to the Conference Board of Canada.

Economic forecast 2015-2019

Economic Indicators 2012 2013 2014 2015f 2016f 2017f 2018f 2019f

Real GDP at basic prices(2007 $ millions) Percentage change

12,807

4.8

13,538

5.7

14,209

5.0

14,484

1.9

14,789

2.1

15,025

1.6

15,259

1.6

15,547

1.9

Total employment (000s) Percentage change

1283.3

1366.2

1370.4

1380.6

1401.5

1421.5

1441.3

1451.2

Unemployment rate (per cent) 4.2 3.8 3.6 4.7 4.2 4.1 4.2 4.2

Personal income per capita ($) Percentage change

45,9662.3

48,3825.3

48,9201.1

49,1990.6

49,8831.4

50,9172.1

51,9422.0

53,0742.2

Population (000s) Percentage change

2253.3

2312.8

2382.8

2442.5

2502.4

2552.3

2612.1

2661.9

Total housing starts 3,093 3,122 2,223 1,956 2,128 2,038 1,836 1,798

Retail sales ($ millions) Percentage change

4,9687.1

5,2515.7

5,5746.1

5,5850.2

5,7312.6

5,9463.8

6,1653.7

6,3853.6

CPI (2002 = 1.0) Percentage change

1.2461.8

1.2671.7

1.2972.3

1.3141.3

1.3422.2

1.3702.0

1.3972.0

1.4262.1

f = forcast. Sources: Statistics Canada; CMHC Housing Time Series Database; The Conference Board of Canada.

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Total Employment to grow by 7,000 jobs

Personal Income Per Capita to rise by 7.8%

Population to rise by 22,000 to 266,000

Total housing starts of 9,756 over 5 years

Retail sales to increase by 14% to $6.3 billion

Real GDP to continue to grow every year, by an average of

1.8%

Workforce 15 years and older, by census metropolitan area

Regina CMA Key Economic Indicators

2014

City Population Labour force Employment Unemployment Unemployment rate

Participation rate

Employment rate

Thousands %

Regina 194.1 141.8 136.7 5.2 3.7 73.1 70.4

Halifax 343.9 237.9 223.3 14.6 6.1 69.2 64.9

Montréal 3,324.7 2,199.2 2,019.5 179.7 8.2 66.1 60.7

Ottawa–Gatineau 1,085.3 758.1 707.0 51.0 6.7 69.9 65.1

Toronto 5,023.4 3,357.5 3,087.4 270.1 8.0 66.8 61.5

Winnipeg 643.2 436.3 410.8 25.5 5.8 67.8 63.9

Saskatoon 245.4 176.5 169.1 7.3 4.1 71.9 68.9

Calgary 1,146.8 841.8 799.5 42.3 5.0 73.4 69.7

Edmonton 1,075.2 784.8 744.8 40.0 5.1 73.0 69.3

Vancouver 2,094.3 1,355.6 1,276.3 79.3 5.8 64.7 60.9

Victoria 300.5 185.0 174.9 10.0 5.4 61.6 58.2

Source: Statistics Canada, CANSIM, table 282-0129 and Catalogue no. 71-001-X. Last modified: 2015-05-08.

Regina’s dominant industries, 2014

Class* Industry Employees (000s)

4411-4543 Retail trade 15.6

2311-2329 Construction 13.8

6220 Hospitals 8.1

7221-7224 Food services & drinking places 6.9

9120 Provincial government 6.1

6111 Primary & secondary schools 5.5

4111-4191 Wholesale trade 5.4

5211, 5221-5223, 5231-5239 Finance 4.5

5241-5242, 5261-5269 Insurance carriers & related activities 4.3

6211-6219 Ambulatory health care services 4.3

* North American Industrial Classification System. Source: Statistics Canada.

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Labour force characteristics

19

Regina CMA Key Economic Indicators

Real estateNew housing market (2014)

Single-detached absorptions 1,100

Growth 1.8%

Average price of absorbed single-detached units $514,165

Growth 4.7%

Resale housing market (2014)

Unit Sales 3,726

Growth 0.9%

Average Price $314,968

Growth 0.8%

Apartment market (October 2014)

Two-bedroom vacancy rate 3.0%

Average two-bedroom rent $1,079

Sources: CMHC Housing Time Series Database, Canadian Real Estate Association.

Output of Regina’s construction sector is set to rise 6% in 2015.Conference Board of Canada Metropolitan Outlook, Spring 2015

Building permits

CommercialResidential

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

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Source: City of Regina

Regina CMA Key Economic Indicators

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Office rental rates

Class A (sq.ft.) Class B+ (sq.ft.) Class B (sq.ft.) Total (sq.ft.)

Rentable Area 1,411,204 796,021 1,962,035 4,169,260

Vancancy 63,861 139,228 256,635 459,724

Occupied Space 1,347,343 656,793 1,705,400 3,709,536

Vacancy Rate 4.53% 17.49% 13.08% 11.03%

Source: Harvard Real Estate Report, March 2015

Industrial vacancy

Indicator Q2 ’14 Q2 ’15 YoY

Vacancy CMA 1.9% 2.9% /\ 100 bps

Net Rent CMA $12.00 $12.00 0%

Industrial Employment Growth ‘15 -4.1%

Industrial GDP Growth Rate ‘15 2.8%

Real GDP Growth ‘15 1.9%

Source: Colliers International Market Outlook Q2 2015

Regina office historical vacancy

Source: Harvard Real Estate Report, March 2015

2003

7.16%

2004

5.48%

2005

4.28%

2006

5.67%

2007

3.01%

2008

1.95%

2009

2.72%

2010

2.17%

2011

1.63%

2012

4.28%

2013

9.09%

2014

11.03%

2015

12.50%14.0%

13.0%

12.0%

11.0%

10.0%

9.0%

8.0%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

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Real estate

Corporate Tax Rates and Incentives

Saskatchewan corporate tax incentives

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• Refundable 15% tax credit for research and development expenditures • 5% refundable investment tax credit on manufacturing and processing equipment

• Manufacturing and Processing Exporter tax incentive provides tax credits for expansion of full time employees over 2014 baseline

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Corporate Tax Rates and Incentives

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Corporate tax rates

Province or territory Lower rate Higher rate

Saskatchewan 2.0% 12%

Newfoundland & Labrador 3.0% 14%

Nova Scotia 3.0% 16%

Prince Edward Island 4.5% 16%

New Brunswick 4.0% 12%

Ontario 4.5% 11.5%

Manitoba nil 12%

Alberta 3.0% 10%

Quebec 8.0% 11.9%

Source: Canada Revenue Agency

Generally, provinces and territories have two rates of income tax–a lower rate and a higher rate.

• Lower rate–The lower rate applies to the income eligible for the federal small business deduction. • Higher rate–The higher rate applies to all other income.

Regina Municipal Taxes

Tax exemption policySupporting the Regina region’s business advantages is a competitive property taxexemption policy. The policy is designed to encourage plans that satisfy one or more of the following criteria:

• Create significant new investment in Regina

• Identify key businesses in Regina’s economic development plans

• Locate the business in the designated City locations to help achieve their growth plan

• Implement a new technology with national or global potential

• Have a significant research and development focus

• Utilize sustainable technologies/practices in construction and/or operations

2014 estimated commercial property taxes per $1000 of assessment

$15.91

Vancouver

$17.62

Saskatoon

$18.00

Edmonton

$21.37

Regina

$24.25

Average

$25.00

Winnipeg

$28.98

Toronto

$30.41

Ottawa

$34.02

Halifax

$37.12

Montreal

$

$40

$5

$10

$15

$20

$25

$30

$35

Source: 2014 Property Tax Rate Analysis, Real Property Association of Canada

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Regina CMA Demographics

24

PopulationThe 2014 estimated total population for the Regina CMA is 237,758 people, according to the postcensal report released by Statistics Canada in July 2014.

Population growth compared to national average

9.2%population growth2011 - 2014

Regina is one of the fastest growing cities in Canada. Statistics Canada, Annual Demographic Estimates

9.2

3.5%20

11-2

014

Regina National Average

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Regina CMA Demographics

Population by age groups

TOTAL MALE FEMALE

Total 210,560 102,985 107,5700-19 years 51,040 26,075 24,975

20-29 years 32,670 16,490 16,180

30-39 years 28,895 14,320 14,570

40-49 years 29,250 14,370 14,880

50-59 years 30,035 14,730 15,305

60-69 years 18,660 8,950 9,705

70-79 years 11,390 4,990 6,400

80 + years 8,620 3,070 5,555

Statistics Canada, 2011 Census of Population

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Median family income

Median family income in Regina ranks third among Canada’s major cities.

Conference Board of Canada

Regina CMA Demographics

26

Population migration

Regina’s population growth has largely benefited from international migration and an increase in interprovincial migration. Conference Board of Canada

$91,200

$74,540

Regina Canada

Canada International

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Conference Board of Canada

Availability of Skilled Labour

Experienced labour forceAll occupations 110,625

Management occupations 10,600

Business, finance, and administrative occupations 24,250

Natural and applied sciences and related occupations 7,245

Health occupations 6,925

Social service, education, government service and religion occupations 10,415

Art, culture, recreation and sport occupations 3,430

Sales and service occupations 27,675

Trades, transport, equipment operators and related occupations 15,380

Occupations unique to primary industry 2,440

Occupations unique to processing, manufacturing and utilities 2,260

Source: Statistics Canada, 2006 Census

Post-secondary educational attainment-Saskatchewan

90,720

98,820

127,295

383,320

32,780

33,705

Total post secondary (50%) University below a bachelor level (4%)

University at bachelor level (12%) University above bachelor level (4%)

Trades/apprenticeships (13%) Non-University certificate (17%)

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Availability of Skilled Labour

Average weekly earnings

Source: Statistics Canada, CANSIM: 281-0027

From 2015-2019 the Conference Boardof Canada predicts that the Regina economy will create 7,000 new jobs.

Employment growth

N.A. Industry Classification System (NAICS) 2012 2013 2014 2012 2013 2014

Saskatchewan Canada

Industrial aggregate excluding unclassified businesses (11-91) 918.04 945.59 975.36 895.34 911.28 935.31

Goods producing (11-33) 1,301.13 1,332.90 1,405.91 1,143.38 1,173.65 1.217.78

Mining, quarrying, oil & gas extraction (21) 1,857.26 1,859.87 2,023.73 1,846.36 1,879.33 2,048.30

Utilities (22, 221) --- --- --- 1,641.14 1,652.08 1,777.89

Construction (23) 1,141.96 1,218.91 1,252.54 1,136.64 1,187.73 1,224.44

Manufacturing (31-33) 1,024.09 1,055.64 1,097.23 1,007.73 1,023.52 1,044.18

Service producing industries (41-91) 837.66 859.68 881.66 838.25 851.14 871.01

Trade (41-45N) 690.37 729.70 762.32 678.25 684.73 704.89

Transportation & warehousing (48-49) 1,016.82 1,076.73 1,117.80 930.01 969.96 1,004.82

Information & cultural industries (51) 1,086.70 1,051.77 1,132.33 1,121.66 1,136.38 1,168.60

Finance and insurance (52) 992.72 1,009.43 1,077.60 1,092.40 1.111.93 1.166.92

Real estate, rental & leasing (53) 1,011.95 1,006.26 1,026.00 861.87 868.48 932.36

Professional, scientific & technical (54, 541) 1,188.66 1,211.11 1,220.07 1,244.56 1.274.06 1,308.06

Management of companies & enterprises (55, 551) 1,024.61 1,064.86 1,108.80 1,217.79 1,253.47 1,335.28

Admin & support, waste management & remediation (56) 675.73 738.09 697.81 729.49 749.97 751.87

Education services (61,611) 996.93 891.94 900.21 981.91 988.18 982.77

Health care & social assistance (62) 873.92 891.94 900.21 817.09 833.71 853.82

Arts, entertainment & recreation (71) 512.01 531.71 554.88 543.24 562.61 581.54

Accommodation & food services (72) 372.62 366.16 368.96 368.12 362.38 371.36

Other services (except public admin) (81) 709.72 784.56 770.36 732.98 751.61 755.53

Public administration (91) 1,086.71 1,100.33 1,155.30 1,152.69 1,177.38 1,201.07

From April 2014 to April 2015, the Regina CMA gained 2,400 jobs, a 2.4% increase. Statistics Canada

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Availability of Skilled Labour

Labour force survey estimates

Source: Statistics Canada. Table 282-0073.

Wages Job permanence 2015

January February March April May

Average hourly wage rate

Total employees 24.96 24.96 25.03 25.17 25.07

Permanent employees 25.63 25.61 25.68 25.82 25.89

Temporary employees 20.11 20.19 20.22 20.47 19.88

Average weekly wage rate

Total employees 907.43 908.32 910.45 917.19 917.88

Permanent employees 950.22 950.00 952.24 958.26 963.44

Temporary employees 599.55 603.82 604.60 623.57 629.48

Median hourly wage rate

Total employees 21.75 21.67 21.79 21.92 21.63

Permanent employees 22.50 22.33 22.45 22.50 22.55

Temporary employees 17.00 17.00 17.00 17.00 16.05

Median weekly wage rate

Total employees 800.00 800.00 800.00 800.25 800.00

Permanent employees 846.00 840.00 840.00 846.30 855.60

Temporary employees 475.00 460.00 477.84 500.10 520.00

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Top Employers

30

Rank Business Name Business type # of Employees

1 Saskatchewan Public Service provincial government 10,590

2 Regina Qu’Appelle Health District health care 9,700

3 Sask Power Corp. electrical utility 3,210

4 SaskTel telecommunications 3,196

5 City of Regina municipal 2,700

6 Regina Public School Board education 2,045

7 Saskatchewan Government Insurance insurance brokerage 1,831

8 University of Regina education 1,373

9 Innovation Place Research Park 30 research & development tenants 1,200

10 Sask Energy Inc. natural gas distribution 1,018

2015 top 10 public sector employers in Regina

2015 top 10 private sector employers in ReginaRank Business Name Business type # of Employees

1 The Mosaic Company potash, borate, and soda mining 2,397

2 Brandt Group of Companies industrial equipment manufacturing 1,800

3 Evraz Inc. steel plant 1,500

4 Conexus Credit Union personal banking 925

5 Co-op Heavy Oil Upgrader oil refinery 900

6 ISM Canada IT services 873

7 Thyssen Mining Construction of Canada mining technology 800

8 Co-operators Life Insurance insurance brokerage 750

9 Loblaws - Global Transportation Hub storage and logistics 700

10 Staples Call Centre Inc. call centre 400

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The University is home to 10 faculties and 25 academic departments which have established reputations for excellence and innovative programs leading to bachelor’s, master’s, and doctoral degrees. In the Fall 2014, a total of 13,902 full-time and part-time undergraduate and graduate students enrolled at the University, including our three federated colleges: Campion College, First Nations University of Canada, and Luther College.

The University offers specialized programs in a number of areas including journalism, social work, media production and studies, actuarial science, petroleum engineering, fine arts, software systems, education, police studies, health studies, public policy,

business administration, and many others. The undergraduate Petroleum Systems Engineering Program is one of the largest in North America.

The U of R was the first university in Western Canada to offer a co-operative education program, meaning graduates leave the campus prepared to succeed in the world. The Co-operative Education & Internships Program is available in arts, business administration, engineering and science (computer science, physics, chemistry and biochemistry, and mathematics and statistics including actuarial science internships).

uregina.ca

31

Education, Training, and Research

University of Regina

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The University of Regina’s main campus and historic original College Avenue campus, covering 930 acres, provide an attractive study and work environment for students, faculty and staff.

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Education, Training, and Research

First Nations University of Canada

The First Nations University of Canada is a First Nations’ controlled university-college which provides educational opportunities to both First Nations and non-First Nations university students selected from a provincial, national and international base.

In May 1976, the Federation of Saskatchewan Indian Nations entered into a federation agreement with the University of Regina, to establish the Saskatchewan Indian Federated College (SIFC). The Agreement provided for an independently administered university-college, the mission of which is to serve the academic, cultural and spiritual

needs of First Nations’ students. In 2003, the Saskatchewan Indian Federated College officially changed its name to the First Nations University of Canada (FNUniv).

The FNUniv now maintains an average annual enrolment of over 3000. It offers academic programs in a wide variety of disciplines, from Business and Public Administration to Indigenous Arts and Health.

The First Nations University of Canada provides an opportunity for students of all nations to learn in an environment of First Nations cultures and values. With the diversity and scope of the First Nations degree programs, the university occupies a unique role in Canadian higher education. The university promotes a high quality of education, research and publication.

Since 1983, the university has entered into over twenty-five agreements with Indigenous peoples’ institutions in Canada, South and Central America and Asia and signed agreements with academic institutions in Siberia (Russia), Inner Mongolia (China) and Tanzania.The university has been a member of the Association of Universities and Colleges of Canada (AUCC) since 1994.

fnuniv.ca

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Education, Training, and Research

Saskatchewan Polytechnic

Over 40 years ago post-secondary technical/vocational education was established in Regina when the Government of Saskatchewan established the Saskatchewan Institute of Applied Arts and Sciences (SIAAS). That institution later became known as the Saskatchewan Institute of Applied Science and Technology, or SIAST. SIAST was reorganized and renamed as Saskatchewan Polytechnic in 2014.

Saskatchewan Polytechnic serves 26,000 distinct students through applied learning opportunities at campuses in Regina and four other cities, and through extensive distance education opportunities. Programs serve every economic and public service sector including construction trades, business administration and accounting, hospitality industry management, and health care careers.

As a polytechnic, the organization provides the depth of learning appropriate to employer and student need, including certificate, diploma and degree programs, and apprenticeship training. Students receive technical training that offers appropriate credentials in applied fields, including degrees, apprenticeship training, diplomas and certificates.

All programs are based on labour market needs. Curriculum is developed through consultation with industry. Applied research partnerships help employers access funding and find solutions to real-world problems.

saskpolytech.ca

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University of SaskatchewanThe University of Saskatchewan, in Saskatoon, 230 km from Regina, offers a wide variety of programs and courses: agriculture and bioresources, arts and science, biotechnology, business, dentistry, education, engineering, graduate studies and research, kinesiology, law, medicine, nursing, pharmacy and nutrition, physical therapy and veterinary medicine.

In addition, the University’s affiliated colleges and Centre of Continuing and Distance Education offer degree programs, certificates, and training programs. Affiliated colleges allow students to complete the first two years of a Bachelor of Science or Bachelor of Arts degree, and some offer full degrees in Education, Native Studies, and Theology.

Gabriel Dumont Institute of Native Studies and Applied ResearchThe Gabriel Dumont Institute of Native Studies and Applied Research is the educational arm of the Métis Nation of Saskatchewan. The Institute is the only wholly Métis owned and controlled education institution of its kind in Canada.

Regina Trades and SkillsThis is a new initiative to help develop new skills in the labour market. Students are taught by experienced tradespeople. As a result, employers are hiring entry level workers with a small learning curve, thus spending less time training new employees.

Saskatchewan Indian Institute of TechnologiesSaskatchewan Indian Institute of Technologies (SIIT) has been in existence since 1976, offering training and education programs to First Nations adults in Saskatchewan. SIIT’s programming mixture has evolved to include certified technical, vocational, and trade programming.

Education, Training, and Research

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The 78-acre group of buildings comprising Innovation Place was established in 2000. It emphasizes collaborative university and industry research in the areas of information technology, petroleum, and environmental science, and has produced world-leading research and development projects.

Some current tenants include: Information Systems Management Canada Corporation (subsidiary of IBM Canada); the Government of Saskatchewan Information Technology Office (Operations Division); the Petroleum Technology Research Centre; GB Internet Solutions; Titanium Corporation; Greenhouse Gas Technology Centre; Information Services Corporation; Mera Technologies; the Saskatchewan Disease Control Laboratory building, and numerous start-up companies in the IT sector.

Education, Training, and Research

Innovation Place

Innovation Place is home to approximately 30 tenants in six buildings, employing more than 1,200 people.

innovationplace.com/regina

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Utilites

SaskPowerOwned by the Saskatchewan government, SaskPower operates three coal-fired power stations, seven hydroelectric stations, six natural gas stations, and two wind facilities, generating 3,513 megawatts of electricity. In 2015 SaskPower launched the first commercial-scale carbon capture and storage facility at a coal fired generator in North America. To address future demand SaskPower will add approximately 1,300 MW of capacity to the system by 2017.

SaskEnergy/Trans GasAlso government owned, SaskEnergy delivers natural gas to more than 365,000 residential, farm, commercial, and industrial customers. They purchase natural gas from independent suppliers and transport it through a 68,100 kilometre pipeline system to 93% of Saskatchewan communities. SaskEnergy sets its rate each fall using the forward 12 month price for natural gas, with adjustment in April.

SaskWaterSaskWater is a government corporation that helps communities and industry gain access to reliable water supplies and professional water and waste water management services. Currently they serve 63 communities, 81 pipeline groups, seven rural municipalities and 15 industrial end users.

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Saskatchewan Turnkey ProgramTo support the province’s booming economy and growth, SaskEnergy, SaskPower and SaskTel, along with local cable providers, have partnered to introduce the Saskatchewan Turnkey Program. The program is a new approach to the design and construction of shallow underground utility services. This process empowers subdivision developers by giving them more control over their schedules and provides timely, cost-effective and coordinated service to residential customers that includes the installation of gas, electric, telephone and cable lines in a common trench.

Advanced ICT services

37

The Regina CMA has an advanced infrastructure in the ICT (Information and Communications Technology) sector comprised of several active major communications companies.

SaskTel

Telus Communications

Access Communications

• Largest 4G LTE (Long Term Evolution) network in Canada. 4G LTE is currently available in Regina, including Deer Valley, Lumsden, Pense, Pilot Butte, and White City. • SaskTel 4G wireless network covers over 98% of Saskatchewan’s population.

Rogers Communications• Rogers Communications has GSM/Edge service in most of Saskatchewan–this technology is limited to speeds of 120 kilobits per second, which is only twice the speed of dial-up. • LTE service (75 Mbps) is available for Regina and Saskatoon.

• Telus Communications offers 4G LTE service in both Saskatchewan and Canada. • The company is planning to expand the network speed to 150Mbps in the near future. Currently, Telus offers a download speed of up to 75 Mbps with expected average speeds of 12–25 Mpbs. Fastest service is in the Regina and Saskatoon regions.

• Access Communications is non-profit cable television, internet and phone service co-operative that is Saskatchewan owned and operated. • Access Communications offers several data packages for both residential and commercial users throughout Saskatchewan including the Regina CMA.

Bell Canada• Higher speed service is available in the Regina and Saskatoon regions. • Lower service levels are available throughout the Province.

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At RROC, we are passionate about supporting investors to make the most of the opportunities in our region.

RROC’s Investment Attraction Office provides free, confidential, and customized advice to companies and investors. We are an “investment concierge”, offering business intelligence, path-finding to local resources, and introductions to government agencies as required.

RROC provides direct support to entrepreneurs through its Square One business resource office, and delivers

services to immigrant investors under the Saskatchewan Immigrant Nominee Program.

Regina is among the leading metropolitan areas for economic growth in Canada and RROC can connect you to a diverse range of enterprises and new initiatives.

Connect with one of RROC’s knowledgeable specialists to receive additional site selection information, relevant economic data and potential emerging trends in the region. RROC is here to help you succeed.

About RROC

Contact usRegina Regional Opportunities Commission

1925 Rose StreetRegina, SK S4P 3P1

P: 306-789-5099TF: 1-800-661-5099F: 306-352-1630 E: info@reginaroc.com

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