Fort McMurray hotel items auctioned off amid economic uncertainty

Almost everything was up for auction this week as one of Fort McMurray's largest hotels closedup shop.

Items from the iconic Sawridge Inn and conference centre includingTVs, plates, artwork and cars were up for grabs over an eight-hour period Wednesday as bidders battled over goodsdisplayed in thebanquet hall.

Century Services general manager Mickey Spencersaid his auction company remains busy as the province rides out low unemployment and a sluggish business environment.

"Absolutely," Spencer said. "It's no secret what's going on in the Albertaeconomy."

• 'It's a tenant's market right now': Fort McMurray commercial landlords slash rent
• Fort McMurray's next 6 priorities in wildfire recovery

Alberta's economic downturn has been described as one of the worst in the province's history. Alberta's gross domestic productwas setfora three-per-cent contraction in 2016, adding up to a 6.5 per cent total loss since the downturn started in 2014.

The declineinoil prices and the shutdown of oil production during the Fort McMurray wildfire in the spring dealt a blow to the province's petro-based economy, and to the oilsandscapital itself.

Spencer saidhis company six years agodidtwo or three company auctions annually. Nowit handles between six anda dozen a year.

"Yes, that's our job to extract the highest dollar out of every piece we have here," Spencer said.

Commercial and industrial companies, many going into receivership and bankruptcy,turn to his companyas a fast alternative toselling their excess stock online, he said.

"That's not what happened with the Sawridgehotel, but we do a lot of business in that side of the world," Spencer said.

'It's sad'

The closure of the 188-bed Sawridge hotel and conference centre is not a happyeventfor Sawridge Group of Companies CEO John MacNutt, wholooked on in the banquet hall as one by one almost 600 itemswent to the highest bidder.

"It's sad," MacNuttlamented."One of my very first projects joining the Sawridge was to oversee the renovation adding the conference centre."

The 35-year-oldSawridge used to be the go-to facility for conferences and accommodations for the oil town, MacNutt said.

But the Indigenous-owned company faced a market downturn,competition from new Fort McMurray conference and concert facilities, and the explosive expansionof oilsands camps. Thehotel and conference centre also needed major upgrades,which the company decidedwasn't worth the money in the current market.

"Given the nature of the wood frame structure," MacNutt said, "it really didn't warrant making that big of an investment."

But the company hasn't given up on Fort McMurray. A year ago the firm builta smaller but more upscale 151-bed facility closer to the oilsands sitesoutside of the city's downtown core.

'We see the long term potential of this town'

Still, some ofFort McMurray's commercial landlords say they've seen business after business leave town.

In November, several landlords and one of the city's largest commercial real-estate agents toldCBC Newsthey've seen higher vacancy rates, and the cost of leases cut in half, because some renters could barely afford to make payroll.

But where one company sees the end of the road, another sees the beginning. Summit Chevrolet GMC Buickpurchasedthe Sawridge Inn and plans to expand its Fort McMurray dealership and consolidate its nine locations under one roof on the site.

"We feel that it is our responsibility to look to the future," Summit general manager Trevor Christensen said, "And we see the long-term potential of this town."

The Wood Buffalo municipality's economic development officeremains positive about Fort McMurray'spresent and future.

ManagerAmanda Haitassaid Fort McMurrayexpects to see a spring building boom when thousands of labourers flood into the cityto help rebuild over2,400 homes destroyed in May's wildfire.

She said she would tellprospectivehotel developerslooking to invest in Fort McMurray that they don't need tobe shy.

"There'sis going to be a busy vibe here in the spring and people will need places to stay," Haitas said,"And people will need a bed to sleep in."

Nevertheless, Century Services expects its auction services will be in demand for some time, despite any longer term improvements to the economy.

"I anticipate we are going to have another busy year of auctions and liquidations," Spencer said."Just because it takes a while for the economy to recover."

Follow David Thurton, CBC'sFort McMurraycorrespondent, onFacebook,Twitterand viaemail.