Vancouver-based Arbutus Properties is establishing a residential and retail neighbourhood in the city's southeast. According to president Jeff Drexel, Arbutus hoped Costco would develop in the area, but he said Saskatoon is too small of a market for a second store.

"Traditionally, they just don't entertain doing more than one store in a marketplace of less than 300,000 people," he said.

Arbutus is developing a neighbourhood called the Meadows, about three kilometres from Boychuk Drive. It's made up of 350 acres of residential land and about 75 acres for a commercial area called Meadows Market.

Drexel said they hope to lease part of Meadows Market to a big retailer.

Aside from Costco, Arbutus has been in touch with Canadian Tire, Lowe's, Walmart and other major retailers. So far, they don't have a major tenant secured.

"We'd love to have them, but whether or not that's a reality, that's not yet to be determined," he said. "At this point, there's definitely no deal in place."

Arbutus hopes the commercial development will include restaurants, coffee shops and local businesses.

The commercial development is scheduled to begin in 2016 and open in the spring of 2017.