Business In Vancouver - Issue 1295

sun shines on summer festivals | 3

container cargo wave hits Island | 6

Attendance and dollars up at Squamish and other B.C. summer music festivals

Dubai-based terminal giant rolls dice on first Vancouver Island container terminal

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August 26–September 1 , 2014 | Issue 1295 | $4.00

town and country | industry, residents at loggerheads from main street to mine sites

BATTLEGROUND B.C. arbutus corridor clash Debate over the best future use of a once-key railway freight corridor heats up in City of Vancouver

5

mine effluent fallout First Nations raise concerns over more B.C. resource projects in wake of Mount Polley tailings pond failure

Canadian Pacific Railways workers remove community gardens along the company’s Arbutus corridor right-of-way near West 70th Avenue | Dan toulgoet/vancouver courier

6

surrey coal dust-up $20m Fraser Surrey Docks coal terminal approved, but controversy over the project is far from over

8

Protesters at a rally last year against shipping Asia-bound U.S. coal through a proposed terminal at Fraser Surrey Docks; the project was approved last week | Brent Granby

inside focus | Asia Pacific business quarterly | pages 15-18

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August 26–September 1, 2014

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contactus publisher President/Publisher |

Paul Harris

investment Incubators merge Vancouver’s GrowLab has joined with Toronto’s Extreme Startups

Editor-in-chief | Fiona Anderson managing Editor |

Condos rising Peter Mitham on smaller quarters’ competitiveness

Millennials decamping to the ’burbs

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Steady jobs

Lululemon opens flagship store The yoga-wear maker’s new location is in prime real estate at Robson and Burrard

Bryan Yu on Statistics Canada’s revised July employment numbers

Mark Falkenberg

BIV’s panel of experts on the ups and downs of co-working spaces.

Stockwell Day joins Pacific Future Energy The former Canadian Alliance leader and international trade minister has joined the company that aims to build the world’s greenest refinery

Emma Crawford Hampel, Glen Korstrom, Tyler Orton, Jen St. Denis 604-688-2398 editorial data researchers | Carrie Schmidt, Anna Liczmanska

Peter Ladner on how to resolve the fight over the Arbutus Corridor

onlineevents Business Excellence Series: Money and Finance

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Biggest B.C. insurance companies BIV’s list, ranked by total direct written insurance premiums in B.C.

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Surrey 8 Profile 13-14 asia pacific 15-18 for the record 22-23

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datebook 24 Editorial/opinion 25-26 life lessons 27

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index

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opinion Back on track

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Staff Writers | Nelson Bennett,

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EDITORIAL

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Warm weather generates cold cash for festivals culture | But

dark skies, cancellation of headliner hurt attendance at annual Vancouver folk fest

By Marke Andrews news@biv.com

B

lessed by su n ny, wa rm weather and a versatile lineup, the Squamish Valley Music Festival (August 7 to 10) experienced more than doublegrowth attendance this year.

W h i le f i n a l dol l a r f ig u res w o n ’ t b e k n o w n f o r s e vera l weeks, revenue w ill vault over last year’s event.

But it ta kes money to m a ke money, and the festival significantly increased expenses this year to lay the groundwork for future years.

The festival expanded its land base and put in more camping and parking spaces. It ran shuttle buses from Vancouver and Whistler, as well as from downtown Squamish and various area campsites. It employed 820 security and medical staff daily.

“We had a lot of startup costs this year,” said Paul Runnals, executive producer of the fiveyear-old festival. “Besides the [increased] campgrounds and parking, we did a lot of consulting over getting the right traffic plan, the right medical plan, and we purchased a lot of our infrastructure because it made more sense for us to own that equipment rather than rent it.”

T h e fe s t i v a l , w h i c h u s ua l ly r u ns for th ree d ays – a Thursday-night campers-only

Paul Runnals, executive producer of the five-year-old Squamish Valley Music Festival: “we had a lot of startup costs this year” | richard lam

opening night, then Friday and Satu rd ay – ex pa nded t h is year to include Sunday, when 34,000 attendees boosted total attendance to 105,000. Last year, attendance was 45,000.

The TD Vancouver International Jazz Festival (June 20 to July 1) also increased attendance, attracting 566,400 people, up about 10,000 from 2013.

Though final dollar numbers are not yet public, the festival showed a slight profit, despite the fact that a major Orpheum show – The Chieftains w ith Ry Cooder – wa s c a nc el le d prior to the event. The other

17th Year!

Orpheum show, Bobby McFerrin, performed below expectations, but the Vogue concerts were well attended, and good weather for opening weekend brought record numbers to the two outdoor stages at Downtown Jazz, along with a boost in revenue from more vendors at the festival’s outdoor shows.

Coastal Jazz & Blues Society executive director Mike Forrester said the festival will explore expanding the program at Downtown Jazz, have a larger educational outreach program and consider returning to year-round concert productions and co-productions.

The Vancouver Folk Music Festival (July 18 to 20) also lost a headliner when illness forced Joan Baez to pull out on the day before her Saturday-night show.

That, along with grey, threatening skies, saw the festival attendance fall to less than 37,000, a 10% drop from 2013.

With the dip in attendance, revenue from alcohol sales, vendors and festival merchandise also took a hit.

“If the gate is down, there’s a chain reaction, everything from food vendors to beer garden to raffle tickets,” said Linda Tanaka, artistic managing director of the folk festival.

The Baez cancellation did not result in refunds, because most people buy day or weekend passes and other acts took the headliner’s place, but the walk-up crowd for Saturday night was down from previous years.

The 37-year-old festival, held annually at Jericho Beach, does provide shade and rain protection at some of its seven stages, but Tanaka said that, as a purely outdoor festival, it does not plan to erect venue tents on site.

“In the seven years that I’ve been here, it’s really only poured heavily on one day.”

After nine years in Sturgeon County, Alberta, the Boonstock Music and Arts Festival (July 31 to August 3) moved to Penticton this summer, drawing 9,000 music

Squamish Valley Music Festival performers | John Bollwitt

fans each day, exceeding its target of 8,500.

T he fest iva l h ad to get by without beer garden revenue when the BC Liquor Control and Licensing Branch denied the festival a liquor licence.

Colin Kobza, president of Boonstock Productions, said in an email, “We are still waiting on final numbers from governing officials.” •

K biv.com

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BUSINESSVANCOUVER

August 26–September 1, 2014

finance | Canadian investors more satisfied this year, study finds 755 Investors’ rating, on a 1,000-point scale, of overall satisfaction with their full-service investment firms, according to J.D. Power’s annual Canadian Full-Service Investor Satisfaction Study

737

Rating of investors’ satisfaction with their investment firms in 2013

10%

Percentage of investors who said their portfolio performance did not meet expectations in 2013

17%

Percentage of investors who said their portfolio performance did not meet expectations in 2012

703

Rating, on a 1,000-point scale, of investors’ satisfaction with their investment performance in 2014

672

Rating, on a 1,000-point scale, of investors’ satisfaction with their investment performance in 2013

Source: J.D. Power

Local companies claim their share of sharing economy ventures | Homegrown

By Jen St. Denis jstdenis@biv.com

J

eff Ingratta, a sales representative for a dental implant company, spends a lot of time in his car.

About six months ago he decided to pick up a second job that he could do during the down times in his workday. As a courier for Vancouver company Zipments. ca, he delivers packages, mostly from retailers to customers who have ordered items online.

“As I’m driving around the city to see customers, if the delivery is convenient and on my route, I’ll pick it up,” Ingratta said. He earns between $6 and $18 per delivery.

Ingratta is part of the sharing economy, a business model that is growing in popularity around the world. While vacation rental company Airbnb (currently valued at $10 billion) and car service company Uber (valued at $17 billion) are the best-known examples, many other startups are attempting to gain a foothold in services such as home cleaning, moving and deliveries.

Rob Safrata, the owner of Vancouver courier company Novex Couriers, wanted in.

“A year and a half ago when I was watching what was happening with Uber, I said, ‘Well, this kind of thing applies to couriers as well,’” Safrata said.

In 2013, he licensed the Zipments app, which was developed by a U.S. company, and launched the service in Vancouver. Zipments. ca calls its casual deliverers “lifestyle couriers” and currently has 25 people signed up to do deliveries (300 people applied in the 48 hours after the service launched, Safrata said). The service uses Novex Couriers as backup.

Both sets of workers are independent contractors who get a cut of each delivery. The lifestyle couriers must cover the cost of insuring their car as a work vehicle and covering fuel and maintenance costs. While the same-day courier market, made up mostly of business-to-business deliveries,

organizations emerging as part of expanding resource-sharing movement

has seen little growth or change, Safrata hopes to tap into the growing market for same-day deliveries of online purchases.

Several retailers have already signed up, including Mountain Equipment Co-op and Purdy’s Chocolates, and Safrata said he is currently working on deals with several large national retailers.

One advantage of the service is that casual deliverers are often most available during evenings and weekends, which is the most expensive time for professional courier services to deliver.

The sharing economy includes both for-profit models and nonprofit ventures designed to bolster community and reduce waste, said David Van Seters, president of Sustainability Ventures and a champion of the idea.

Vancouver’s Tool Library and Modo: The Car Co-op are examples of homegrown sharing endeavours. Van Seters is working with a Seattle startup called Stuffster, which allows consumers to track purchases with the aim of making it easier to sell or give away the item when it’s no longer needed. He’s also involved with a Victoria venture called ShareShack that would enable a neighbourhood to share equipment and tools.

While the sharing economy is growing in popularity in B.C., Van Seters said, it is still dominated by big companies that are headquartered elsewhere.

Handybook is one such company. With its head office in New York, the business now operates in 27 cities in North America, including Vancouver and Toronto.

Customers can use Handybook to hire home cleaners or handymen who have been screened and interviewed by the company. Customers rate the workers – who, like Uber drivers or Zipment deliverers, are considered selfemployed contractors – after the job is done. Handybook collects 20% of the fee.

Handybook founder Oisin Hanrahan said the company has grown eightfold in the last seven months.

Rob Safrata owns traditional courier company Novex but launched sharing economy service Zipments.ca last November | Richard Lam

Right now it feels like the Wild West of the sharing economy and there are some negative aspects

[] David Van Seters President, Sustainability Ventures

It directly employs four people in Vancouver to administer the program.

Not everyone loves the sharing economy. In June, taxi drivers in several European cities protested what they said was unfair competition from Uber, which in many jurisdictions is not required to do business under the same regulations as taxis.

Uber stopped operating in Vancouver after a 2012 ruling from B.C.’s Passenger Transporation Board. The board determined Uber cars were the same as a limo service, meaning they would have to charge a minimum of $75 per ride. Vancouver’s city council has expressed concerns about Airbnb’s impact on hotels and rental supply and its compliance with safety and zoning regulations.

“Right now it feels like the Wild West of the sharing economy and there are some negative aspects,”

Van Seters said. He believes municipalities need to be more proactive in introducing policies and bylaws to make the playing field level for everyone.

Safrata acknowledges the sharing economy model is disruptive.

“It can completely change an industry where the old way disappears,” he said.

Safrata has been working with the Insurance Corporation of British Columbia to develop a new form of insurance that will reduce costs for Zipment.ca’s casual couriers. ICBC has been receptive to the idea, Safrata said.

“That’s why [the deliverers] can’t just do one or two deliveries a day – they need to do enough to make it pay.” •

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BUSINESSVANCOUVER

August 26–September 1, 2014

5

City, railroad collide over future of Arbutus corridor transportation | Fight for control of disused rail line heats up after CP destroys gardens along tracks

By Jen St. Denis Rail corridor strategies

jstdenis@biv.com

Rail corridors Key port truck routes Key local truck routes Other truck routes Arbutus corridor

Burrard Inlet Line

Arbutus Corridor

T

o many Vancouver residents, a tra i n r u n n i ng through Kitsilano, Kerrisdale or Marpole is unimaginable.

The Arbutus corridor has become a pleasant place to stroll or bike, with community gardens proliferating alongside the overgrown railroad tracks.

But while the corridor is currently park-like, transportation is in its near and long-term future.

“It’s still really valuable as a corridor,” said author Michael Kluckner, who has written several books about Vancouver’s history.

“It’s all caught up in the heat and the fury over whether people can have gardens there or whether people can walk their dogs there. But strategically, from a planning point of view, that part of the city will inevitably grow.”

Earlier this month, the owner of the right-of-way, Canadian Pacific Railway (TSX:CP), started destroying the community gardens that have sprouted up along the line over the past 14 years.

The company says it wants to restore the track to operational use and will likely use it for training and storage. The line was last used for freight in 2001.

The move comes as part of a long-running dispute between CP and the City of Vancouver over the fate of the 11-kilometre stretch of track. CP would like to ultimately sell or develop the land; the city wants to retain the land in its currently zoned use as a transportation corridor.

To stop using the land for a

Grandview Cut

Fraser River

Vancouver author Michael Kluckner: the City of Vancouver needs to stand firm and reserve Arbutus corridor for transportation purposes | Jen St. Denis

Somewhere along the line the city has to commit itself to using the land … more intensively than it’s using it at the moment

[] Peter Hall Professor of urban studies, Simon Fraser University

railway, CP “must go through a process of decommissioning the line,” Douglas Harris, a law professor at the University of British Columbia, told Business in Vancouver in an email.

“But once completed it could use the land for non-railway

purposes if the zoning allowed it.”

In 2006, the city won a lawsuit affirming it had the right to zone the land.

It’s very unlikely CP is seriously considering rehabilitating the line to regularly run freight cars along it, said Peter Hall, a professor of urban studies at Simon Fraser University. T he track no longer connects to the False Creek Flats rail yards because of land sales CP has made in the past, and buying and permitting land to do that would be difficult and expensive.

“There’s one vague, in-thedistance scenario that says this is a third way of having rail access to False Creek Flats,” Hall said.

“It’s not possible at the moment

– they would need to fill in the missing pieces – but it’s not absolutely impossible.”

Hall argues a case could be made that rehabilitating the line for freight would benefit the Metro Vancouver region as a whole because it would reduce pollution and congestion by taking trucks off the roads.

But the more realistic scenario, Hall said, is that the city will eventually get control of the land and, at some point in the future, use it for transportation such as light rail.

In a July 16 letter to Vancouver residents, Mayor Gregor Robertson wrote he believes the corridor “should remain as it is today – an enjoyable route for people to walk, run and bike along.”

The city’s official development plan for the corridor, completed in 2000, envisions a mix of cycling, walking, green space and

either a streetcar or light rail line.

That would return the line to one of its original uses, points out Kluckner: from 1905 to 1954, the track was part of the region’s interurban commuter rail system.

But keeping the land as a transportation corridor means planning for more density along the route, both Kluckner and Hall said. There has been pushback to public transit in the past from residents, leading to elevated rail like SkyTrain being excluded from the 2000 development plan.

“Somewhere along the line the city has to commit itself to using the land at either end and at specific points along the corridor more intensively than it’s using it at the moment,” Hall said. “If it doesn’t want to use that land for industry … that’s not ideal, but please let’s replace it with some higher-density residential areas.” •

April 2014

2004

The City of Vancouver adopts an official development plan for the Arbutus corridor, designating it as a greenway and corridor for rail, transit or cycling.

CP sues the city, saying the restrictions the city has imposed amount to the city taking CP’s land without compensation

CP sends letters to residents along the corridor, informing them they need to remove gardens and structures on the land by July 31 because CP intends to resume rail operations

The Supreme Court of Canada rules in favour of the City of Vancouver’s right to zone the land for transportation uses

August 2014

CP tells the city it is no longer economically viable to run trains on the Arbutus corridor

Vancouver wins its bid to host the 2010 Olympics.

Cambie Street, not the Arbutus corridor, is chosen as the route for a rapid transit line 2006

CP decommissions the False Creek Right-ofWay spur, a line running along the south shore of False Creek

2000

1995

1954-2001

CP asks the City of Vancouver to rezone the False Creek Right-of-Way for high-density housing. After CP sells a piece of land to a developer (the current site of Starbucks at 1500 West 2nd Avenue), the city pays CP $8.5 million to buy part of the remaining right-of-way, with the idea of running an electric streetcar there in the future 1999

The British Columbia Electric Railway Company operates an electric interurban line

CP uses the track for freight cars 1989

The Canadian Pacific Railway builds a rail line from downtown Vancouver to Steveston 1904-1954

1902

K chronology of a contentious transportation corridor

To residents’ dismay, CP bulldozes several community gardens on the Arbutus corridor and begins spraying herbicide

Sources: A Railway, a City, and the Public Regulation of Private Property: CPR v. City of Vancouver by Douglas Harris; Canadian Pacific Railway; the City of Vancouver

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August 26–September 1, 2014

news

Tailings pond fallout fuels anti-mining sentiment resources | More

bands challenging expansion plans for B.C.’s top employer of aboriginal workers

By Nelson Bennett nbennett@biv.com

E

ven before the collapse of a tailings pond at the Mount Polley mine earlier this month, relations between mining companies and First Nations in B.C. were often strained.

T he Taku River Tlingit, for example, are opposed to the Tulsequah mine near Atlin. The mine suffered a setback last month when the BC Supreme Court ruled the B.C. government had breached its duty to consult the First Nation when it extended a mines permit.

Anti-mining sentiment has been growing within some First Nations communities in the wake of the August 4 Mount Polley disaster. Imperial Metals (TSX:III), which owns the mine, has taken the brunt of it.

Two weeks ago, the Neskonlith Indian Band issued an eviction notice to Imperial Metals, saying it doesn’t want the company doing any more work on its Ruddock Creek property north of Adams Lake, where Imperial plans to build an underground zinc-lead mine. And while the Tahltan First Nation is officially still talking with Imperial about an economic

benefits agreement on the new Red Chris mine, a handful of Tahltan elders and activists called the Klabona Keepers have blockaded access to Imperial’s new flagship property. They have even launched an Indiegogo crowdfunding campaign to raise money to help finance the blockade.

Just last week, the Esdilagh First Nation or Alexandria Indian Band, which belongs to the Tsilhqot’in First Nation, withdrew from an economic benefits agreement on the Gibraltar mine, which is being expanded.

Even the Skii km Lax Ha, which has a good working relationship with Pretium Resources Inc. (TSX:PVG) on the Brucejack underground mine proposal, now has reservations about another mine 15 kilometres away from Brucejack: the KSM copper-gold mine that Seabridge Gold Inc. (TSX:SEA) wants to build.

“We were close to signing an [agreement] with the KSM project with Seabridge, and because of this breach on the tailings pond, I’m hesitant,” said Skii km Lax Ha hereditary chief Darlene Simpson. “It’s going to take a lot more work to get me to sign, to give me comfort that this [a tailings pond

It’s going to take a lot more work to get me to sign, to give me comfort that this [a tailings pond breach] isn’t going to happen in the north

[] Darlene Simpson hereditary chief, Skii km Lax Ha

breach] isn’t going to happen in the north.”

Mining Association of BC president Karina Briño said mining is the largest employer of aboriginal people in B.C., so there is rankand-file support for mining in many First Nations communities.

But the industry has some work ahead of it to restore confidence and hopes a formal investigation launched by the B.C. government into what caused the Mount Polley tailings pond collapse will help.

At least one First Nations leader says the B.C. government must share some of the blame for poor relations between First Nations and mining.

Tsilhqot’in Chief Joe Alphonse points to the B.C. government’s support for the New Prosperity

mine that Taseko Mines Ltd. (TSX:TKO) wants to build in an area where the Tsilhqot’in have hunting and trapping rights (but not title). The B.C. Environmental Assessment Office approved the mine; the Canadian Environmental Assessment Agency rejected it twice.

Now one of the bands within the Tsilhqot’in tribal group, the Esdilagh, is refusing to sign an Economic and Community Development Agreement (ECDA) related to an expansion of Taseko’s Gibraltar mine.

T hese are revenue-sharing agreements signed between the province and First Nations on new mines or mine expansions.

Just three days before the Mount Polley breach, Anne Louie, chief of the Williams Lake Indian Band, told the Williams Lake Tribune that the first ECDA instalment on Mount Polley was just $4,500.

The band had been expecting $400,000.

Alphonse said the government will have to sweeten the pot if it expects it to sign an ECDA on the Gibraltar mine.

“At this phase, it won’t stop the mine from proceeding,” Alphonse said. “But at some point,

the mine will probably get a legal challenge.”

Mining companies need to take those kinds of warnings seriously, said David Rosenberg, the lawyer who represented the Tsilhqot’in in the recent landmark case in which the Supreme Court of Canada affirmed Tsilhqot’in title.

“If I were advising a mining company that was proposing a project in British Columbia on land that was subject to a claim of aboriginal title, I would want to specifically advise that a project can later be cancelled, if the project begins without the consent of a First Nation claiming aboriginal title, if and when title is subsequently established,” he said. “In other words, it would be prudent from both a legal perspective and for business purposes for a company that wants to build a new mine in British Columbia to insist that the government has obtained appropriate consent from First Nations before the project gets underway.” •

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for more resources and mining news, go to biv.com/news/ mining

Terminal giant launches Island container cargo service ports | Duke

Point trial run comes amid rising tide of Asia-Pacific goods traffic to West Coast

By Timothy Renshaw trenshaw@biv.com

P

or t Met ro Va ncouver ’s (PMV) third-largest cargo container terminal operator is taking a trial run at servicing Vancouver Island.

Centerm operator DP World (Canada) Inc., a subsidiary of Dubai-based DP World, celebrated the arrival of its Duke Point terminal’s first container ship last Tuesday as part of its plan to test the waters of a containerized cargo shipping service directly linking the Island with Asia.

Nanaimo Port Authority (NPA) president and CEO Bernie Dumas said the opening of the Duke Point container terminal was “an exciting time for Vancouver Island importers and exporters and will prove that the NPA can offer competitive deep-sea connections to global markets.”

The NPA recently received $4.5 million from the federal government as part of its Asia-Pacific Gateway and Corridor Initiative.

DP World Vancouver general manager Maksim Mihic said the company chose Duke Point for its trial Vancouver Island-Asia container service because it’s geographically central and is the Island’s only port facility with a

container crane. He added that it will be Vancouver Island’s first container terminal.

Mihic said the Duke Point operation, with an estimated annual container throughput of around 100,000 20-foot equivalent units (TEUs), would initially be small compared with DP World’s Centerm operation.

“But this is how we started in Vancouver, with the very same crane.”

PMV’s Deltaport, Canada’s largest container terminal, can handle 1.8 million TEUs per year. Infrastructure and other upgrades will expand that capacity to 2.4 million by year’s end.

Mihic said his company’s trial container service would initially connect Vancouver Island with Japan and Korea. Main cargo shipped to Asia from the Island will be lumber, pulp, bottled water and recycling.

Mihic said container volume will determine whether the trial service becomes permanent and pointed out that before DP World started its Duke Point operation, Vancouver Island was the biggest island in the Americas without container cargo shipping operations.

Conta i ner tra f f ic between North America’s West Coast

The Westwood Pacific, the first container ship to be loaded at Vancouver Island’s new Duke Point container terminal, prepares for its departure to Asia from the Port of Nanaimo

and Asia continues to accelerate along with the US$4 trillion global trade in containerized cargo. According to analysis from Alphaliner, which collects global liner shipping and container ship data, container throughput in the world’s 30 largest ports grew 4.7% in 2014’s first quarter.

As of May, Port Metro Vancouver’s year-to-date container

cargo was up 2.2% compared with the same period in 2013. Laden inbound container cargo was up 5.8% in May 2014 compared with May 2013, and PMV spokesman John Parker-Jervis said July container numbers, which had not been released as of press time, will set a new record for the port.

Conta i ner t ra f f ic h a s a l so surged at Centerm and other

PMV terminals recently because of ongoing uncertainty over contract negotiations with longshoremen at U.S. West Coast ports.

Shippers concerned about a possible U.S. longshore strike or other service disruptions at major terminals in Seattle, L.A.-Long continued on page 7

NEWS

BUSINESSVANCOUVER

August 26–September 1, 2014

7

investment

Vancouver’s GrowLab merges with Toronto startup accelerator Vancouver’s GrowLab startup accelerator has officially merged with Toronto’s Extreme Startups, forming the Highline accelerator.

Extreme Startups managing director Marcus Daniels said the merger, which took place August 19, is good for Canadian innovation.

“Over the next decade, if you look at the talent we have, can we help 1,000 Canadian founders or 1,000 businesses that are [headquartered] in Canada create $10 billion in economic value? I certainly think we can,” Daniels said.

“As Canadians we’re happy to create

nice businesses, but often we’re not looking to aggressively expand into global markets.”

He said one big reason for the merger is to make early-stage companies in Canada even more lucrative to investors.

“We have great institutional investors in Canada. I think part of the challenge is the stage at where they invest,” Daniels said.

Highline is moving away from its predecessors’ focus on mentoring businesses still developing products at the conception stage.

Instead, the new accelerator is looking at companies that are closer to having

products ready to hit the market.

“T he Ca nad ia n dollars from the in­ sti­t ut­i onal investors, that’s the sweet spot they would love to fu nd,” Da n iels said.

The offices in Vancouver and Toronto will operate as separate campuses for Highline.

Meanwhile, Daniels said he expects startups still conceptualizing their products will be able to go through accelerator

programs geared toward those stages.

After that, he said, there is the chance for those startups to get accepted into Highline’s accelerator program.

Part of the merger is being funded through the Business Development Bank of Canada (BDC), a Crown corporation dedicated to entrepreneurs.

BDC Capital had previously invested $5.7 million in 38 graduates from GrowLab and Extreme Startups. Early-stage venture capital firm Relay Ventures is also backing Highline.

Startups that go through Highline will be eligible for up to $200,000.

livability

sales

Vancouver ranked best in North America

B.C. wholesale trade dips slightly in June

The Economist has released its annual ranking of the world’s most livable cities, and although Vancouver hasn’t topped the list since 2011, the city is still considered one of the best places in the world in which to live.

Vancouver takes top spot in North America and is the third-most livable city in the world. The city received an overall rating of 97.3 out of 100, getting full marks for health care. The city also got top marks for education and culture and environment.

The city’s lowest score, 92.9, was for

British Columbia’s wholesale sales fell in June after three consecutive monthly gains, Statistics Canada announced August 20.

The province’s total wholesale trade fell 0.7% to $5.2 billion. This was driven in part by a drop in sales of motor vehicles and parts.

Across Canada, wholesale trade grew by 0.6% to $53 billion.

“The number, which continues the string of largely better-than-expected stats for the month, was 0.2% above the consensus, although below the

infrastructure, which looks at the quality of road networks, public transport, energy provision, telecommunications and water provision, among other factors.

Melbourne, Australia, was found to be the world’s most livable city, and received full marks for infrastructure.

previous month’s solid increase, which was revised up a tad to 2.3%,” said CIBC World Markets senior economist Peter Buchanan, explaining that this increase provided a “solid contribution to GDP growth for the month.”

The largest contributor, countrywide, in terms of dollar value was in the “miscellaneous” subsector, which grew by 3.1% or $208 million to $6.9 billion.

The province with the biggest influence on the countrywide increase was Alberta, where sales rose 2% to $7.1 billion.

transportation

real estate

Gas price dips, but Vancouver still pays the most in Canada

Watch out for landlords with 13-inch rulers

The average cost per litre for gasoline at gas pumps in Vancouver dipped in July, according to data released August 19 by MJ Ervin & Associates.

The average price per litre was $1.49 in July, a drop of almost 4% from $1.52 in June. Vancouverites pay the most per litre in Canada, with the second-highest prices seen in Montreal at $1.42.

Some commercial real estate tenants are paying for “phantom” space that does not exist, according to lease consultant Dale Willerton, who warns that mistaken measurements can add up to huge costs.

“We call them landlords with 13-inch rulers,” he said. “ T h i s i s a c om mon oversi g ht i n the commercial leasing field,” said

The average price of gas across Canada was $1.35 in July, down almost 3% from $1.39 in July.

Canadians continue to pay considerably more for gas than Americans. Adjusted for currency exchange rates, drivers south of the border paid on average $1.08 per litre in July, which reflects a decrease of 1.7% compared with $1.10 in June.

Willerton, president of the Edmontonbased The Lease Coach. “Commercial tenants frequently trust the square footage reported on their leased premises. However, the amount of reported square footage can easily be wrong. The end result is that commercial tenants needlessly pay an increased rent, based on the incorrect square footage.”

K biv.com Go online to read these stories in full, along with much more business news updated daily at biv.com. terminal giant Continued from page 6

Beach and other U.S. ports consequently placed orders early and have diverted some U.S.-bound containers through Port Metro Vancouver and Prince Rupert.

That spike in business, coupled with a shortage of railcars available to service U.S.-bound containers, resulted in DP World noti f y i ng customers ea rl ier this month that, as of August 8,

it would no longer accept containers arriving in Vancouver for shipment to the U.S. by rail.

Mihic said the temporary halt to that U.S. service was regrettable but unavoidable because of the dramatic increase in containers arriving at Centerm. The resulting terminal congestion, he said, was hampering the terminal’s ability to service the flow of its containers to its main customer base in B.C. and Eastern Canada.

M i h i c e s t i m a te d t h a t t h e

number of containers shipped south from his terminal had jumped 300%.

Centerm’s percentage of U.S.bound cargo, normally less than 5% of its business, ballooned to around 40%.

“That is a massive increase for us,” Mihic said.

He estimated that it would take between five and six weeks to clear the backlog at Centerm, which handles approximately 20% of PMV’s container volume.

Canadian National (CNR:TSX)

and Canadian Pacific (CP:TSX) declined to provide reasons for the shortage of railcars available to carry containers to the United States from PMV terminals.

CN spokesman Patrick Waldon said in an email that the rail company couldn’t release details about railcar allocation to individual customers because “such commercial discussions are confidential.” But he added that the railway is discussing “the application of the allocation process to curtail further discharge of

U.S. temporary cargo at West Coast Canadian ports it serves … to ensure that its Canadian customers’ needs are protected while the U.S. ILWU [International Longshore and Warehouse Union] labour discussions are ongoing.”

CP did not respond to requests for information.•

K biv.com

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8

BUSINESSVANCOUVER

August 26–September 1, 2014

Surrey Fraser Surrey Docks coal terminal gets green light ports | Contentious

$20 million terminal will carry U.S. coal destined for customers in Asia

BY Nelson Bennett and Jen St. Denis news@biv.com

A

controversial Fraser Surrey Docks coal terminal was approved last week as Port Metro Vancouver announced a permit August 21 that clears the way for the port facility’s direct coal transfer project.

The terminal will handle thermal coal from the U.S., which will arrive by rail and be transferred onto barges, then taken to a transfer station on Texada Island where it will be loaded onto ships destined for Asia and primarily for the region’s coal-fired electricity plants.

One train a day, made up of 125 cars of thermal coal, is expected to move through the Metro Vancouver region on its way to Fraser Surrey Docks.

“Over the past two years, a significant amount of work and a number of comprehensive studies have gone into ensuring this project is safe and that concerns

Fraser Surrey Docks coal terminal opponents have concerns about coal dust and other potential environmental hazards | Brent Granby

raised were addressed,” Fraser Surrey Docks CEO Jeff Scott said.

“We’re pleased that Port Metro

Vancouver has granted the permit, and we will now begin moving toward construction.”

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Coal currently makes up a large portion of the bulk cargo shipped from Port Metro Vancouver terminals like Neptune in North Vancouver. Most of that material is metallurgical (steelmaking) coal that has been mined in British Columbia.

The BC Chamber of Commerce applauded the approval of the coal facility, which will handle up to four million tonnes of coal per year – approximately 10% of the port’s coal shipments.

Chamber president and CEO John Winter said the project would create 25 direct and 25 indirect jobs.He pointed out in a press release that B.C.’s chambers of commerce support the expansion of coal-export infrastructure in the province.

“With the approval of projects such as this, the port will continue to be a creator of jobs and economic opportunity.”

Just as a Port Metro press conference announcing the terminal’s approval was getting underway, Greenpeace, the Sierra Club and Climate Solutions were wrapping up a press conference in which they argued the long-term demand for coal in Asia was falling, meaning there’s no good economic case for a West Coast coal terminal.

Scott said the $20 million coal terminal is expected to be completed by the fall of 2015. He said names of the American companies that will use the terminal have yet to be announced.

“We hope to be able to announce that shortly, but we’re not in a position to announce the customers yet.”

Port Metro’s two-year permitting process for the project was dogged by complaints from residents and local governments concerned about the environmental and health risks posed by trains loaded with coal rolling through neighbourhoods.

Environmental groups are also

concerned about the impact of transporting the coal on marine life in the Fraser River and in the waters around Texada Island.

The chief health officers for the Vancouver and Fraser Valley health authorities raised concerns that an environmental impact assessment of the project completed

by SNC-Lavalin (TSX:SNC) for the port did not include enough information about how it would affect human health.

Port Metro Vancouver ordered Fraser Surrey Docks to conduct a second health assessment study.

Based on that study, the port authority said it’s confident the project poses “acceptable” risks to human health.

Fraser Surrey Docks will be required to continue to monitor air quality and report those results to the port. It is currently in a legal battle with Metro Vancouver, arguing that the regional district has no jurisdiction over the air pollution it emits because it’s on federally regulated port land.

Regulations to control coal dust have also been tightened, said Jim Crandles, the port’s director of development and planning. Burlington Northern Santa Fe Railway (NYSE:BNI), the company that will be shipping the coal cars by rail, has committed to spraying a double layer of binding agent on the coal to reduce the amount of dust generated from shipping it by rail.

The port will not continue to monitor the impact of the coal shipping facility on the Fraser River; however, Fraser Surrey Docks will not be permitted to transfer coal by barge during high winds. The port will monitor the sediment at the base of the coal loading facility. •

K biv.com

For more port and transportation news, go to biv.com/ports

Brief Fence linked to rising crime at legion

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A fence recently erected by the City of Surrey around a vacant lot frequented by homeless people has led to an increase in crime for the Whalley Legion.

According to the legion’s Robin Reid, since the city installed a fence around a nearby vacant lot down the road on 135A Street a month ago, the organization has been increasingly targeted with thefts, vandalism and aggressive panhandling.

“As they’ve got pushed farther and

farther down our end near the legion they’ve gotten more and more aggressive,” said Reid.

“There’s an empty lot next door with a little tent city going on and people are defecating outside our front door, hiding needles everywhere and urinating on our stairs and on our cadet hall.”

Other recent acts of crime at the legion include a break-in and theft at the cadet hall, theft of tires and vandalism of vehicles.

– Surrey Now

BUSINESSVANCOUVER

August 26–September 1, 2014

9

realestate Vancouver homes offer decent size, decent pricing on global scale

Real Estate Roundup Peter Mitham

Condo demand A comment during interviews for last week’s column prompted further research; in brief, a remark was made that with better jobs, a lower rate of household formation and fewer kids, many people were opting to live in “a shoebox condo” rather than a “3,000-square-foot home in the suburbs.”

The observation isn’t new.

Simon Fraser University city program director and fellow Business in Vancouver columnist Gordon Price quipped in a comment to the Vancouver Sun in 2010, “You come to the city to find DNA and go to the suburbs to procreate.”

Condos are great for singles, though tighter for growing families, but as University of British Columbia Centre for Urban Economics and Real Estate director Tsur Somerville explained at an Urban Land Institute event three months after Price’s quip, many condo-dwellers are making up for the lack of inside space with outdoor activities.

“They’re finding public experiences that replace private experiences,” Somerville said.

Indeed, that undoubtedly helps give Vancouver the vibrant character that contributes to our claiming the best quality of life in North America (alas, not the world), according to the latest Economist Intelligence Unit ranking.

But how does the size of

BIV

Vancouver condos compare on the global scale?

The average size of a new house in Canada is approximately 1,948 square feet; a typical Vancouver condo is approximately half that.

And in China, Russia and Hong Kong, new homes average 646, 614 and 484 square feet, respectively. (Other industrialized nations build larger digs.)

But if there’s always a smaller shoebox out there, there’s also a less expensive one.

Back-of-the-envelope calculations, using data from the latest housing affordability study by Illinois urban development consultancy Demographia, indicate that the median price for the average new home in Hong Kong is approximately $1,160 per square foot. But in Vancouver, it’s closer to $344 a square foot using Demographia’s national numbers – and approximately $420 a square foot if one uses the latest benchmark condo pricing from the Real Estate Board of Greater Vancouver and an average size of 900 square feet.

Small wonder, then, that demand for condos remains strong – not just among singles looking for DNA, but also from firsttime buyers, new immigrants and foreign investors who consider the price right when they compare the other options open for purchase.

School’s out Labour Day is coming up, and the return to classes for many.

And soon, Serracan Properties Ltd. will be proceeding with development of 510 Seymour, a new nine-storey office block on the site of a property formerly home to a language school but languishing for want of occupants in recent years.

It’s also a fresh start for former

More people are opting to live in condominiums in Vancouver instead of bigger homes in the suburbs

CP received no tax benefit

[] Breanne Feigel spokeswoman, CP Rail

Wesgroup Properties Ltd. president Gino Nonni, who left Wesgroup for Serracan in 2012. The tower is Serracan’s first project.

When completed in 2016, the office tower will total 76,837 square feet and be a candidate for LEED Gold certification.

No breaks Walking the rails is something of a family tradition, though not out of necessity (thankfully). Taught early on to listen to the rails for approaching trains, this writer finds the

smell of creosote-soaked ties as sweet as the taste of trackside blackberries.

Canadian Pacific Railway Ltd.’s work in the Arbutus corridor therefore sparks mixed emotions.

Restrictions on public access are lamentable, and yet, as CP maintains, it is well within its rights to ensure the line remains serviceable. Anyone walking the line in recent years will have noticed the deterioration in track conditions and would welcome work that makes the line safer for whatever use follows.

Yet maintenance is not the only aspect of ownership that CP has neglected in recent years.

Community garden plots typically bring property owners

pmitham@telus.net

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a tax break from the city, as in the case of the long-running Davie Village Community Garden.

But the community gardens established on CP land in the Arbutus corridor – with the de facto blessing of the city, which has final say on allowed land uses – have earned the railway no tax breaks.

“CP received no tax benefit from having these gardens on our property,” spokeswoman Breanne Feigel said in an email.

One can’t help but wonder if the railway isn’t justified in putting to use lands that others have used – one might well argue – at some expense to itself. •

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BUSINESSVANCOUVER

August 26–September 1, 2014

finance

D 45%

Prophecy Coal (TSX:PCY) weekly price gain

Oracle Mining (TSX:OMN) weekly price gain

D 43%

datapoints

10.0

2.35

9.0

2.30

8.0

2.25

7.0

2.20

6.0

2.15

5.0

2.10

4.0

2.05

3.0

2.00 2007

2008

2009

2010

2011

Employed

2012

2013

2014

Per cent

2.40

2.0

Unemployment Rate

Note: seasonally adjusted. Sources: statistics canada, central 1 credit union

Dollar reaction to Statistics Canada error The dollar rose on Friday, August 15, on the news that Canada had gained more jobs than previously reported $0.95

0.94

0.93

0.92

0.91

20 14

0.90 4 4 4 4 4 4 14 4 14 4 14 4 4 4 4 4 4 4 4 14 14 4 14 4 4 4 14 14 4 14 4 14 01 01 01 01 01 01 0 01 0 01 0 01 01 01 01 01 01 01 01 0 0 01 0 01 01 01 0 0 01 0 01 0 /2 3/2 4/2 7/2 8/2 9/2 0/2 1/2 4/2 5/2 6/2 7/2 0/2 11/2 2/2 3/2 4/2 5/2 /2 2/2 3/2 6/2 7/2 8/2 9/2 0/2 3/2 4/2 5/2 6/2 7/2 0/2 1 2 1 1 1 1 1 /0 /0 /0 /0 /0 /0 /0 /1 7/ 7/ 7/ 7/ 7/ /2 /2 /2 /2 /2 /2 /2 /3 7/3 /0 /0 /0 /0 /1 8/ /1 /1 /1 /1 07 07 07 07 07 07 07 0 08 08 08 08 08 0 08 08 08 08 07 07 07 07 07 07 07 07 0 0 0 0 0 07 /2 1/

N

ot even Statistics Canada, with its rock-solid reputation, is immune to an occasional slip-up. They happen – but when they’re made in the widely watched and market-moving Labour Force Survey (LFS), mistakes are magnified tenfold.

The agency’s difficult week came to an end as it re-released its LFS results after being forced to throw out the previous estimates due to internal processing errors. The revisions were big – instead of a national gain of 200 jobs, revised estimates popped significantly higher by 41,700 persons — signalling a stronger performance in the economy to start the third quarter. Upward revisions were particularly strong in Ontario, which gained nearly 40,000 jobs rather than the 15,100 originally reported.

On the West Coast, the labour market performed better than initially reported. Instead of shedding 5,300 jobs in July, B.C. managed to hold on to June’s modest gain but was unable to build much in the way of traction. Total employment was unchanged from

In July, significant job growth came in financial services, insurance, real estate and agriculture

07

Bryan Yu

B.C. labour market indicators

Millions of persons

Data Points

June at a seasonally adjusted 2.326 million persons.

Unemployment fell to 5.9%.

Top-line employment remained soft, but the numbers point to some improvement in job quality. Full-time employment grew 0.8% from June, and while this was offset by a decline in the number of parttime jobs, it points to an increase in real employment and hours worked in the economy.

Meanwhile, youth employment fell less than the previous estimate.

On the industry side, construction and manufacturing were the key contributors to a 0.1% decline in goods-sector employment from June. Service-sector employment was flat, but trade-related activity and business services were a drag. Significant job growth was observed in finance/ insurance/real estate and agriculture.

The positive revision to July’s LFS numbers does not change the general theme of the labour market. The hiring environment in B.C. remains soft.

Employers remain hesitant to add to their payrolls, but we do expect some pickup in the second half of the year.

Broader economic growth is driving a rise in exports, while small-business confidence has shown signs of improving – a precursor for hiring. Annual employment growth is forecast to reach about 0.8%. •

Labour

U.S. dollar (noon)

Revised labour data shows steady July employment numbers

Bryan Yu is an economist at Central 1 Credit Union.

Source: Bank of Canada

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finance Starcore Int’l Mines (TSX:SAM) weekly price gain

D 32%

F 29%

Jayden Resources (TSX:JDN) weekly price drop

Zincore Metals (TSX:ZNC) weekly price drop

A comprehensive snapshot of B.C.’s economy that includes forecasts and key indicators to provide business decision-makers with more tools to help them understand the economy’s strengths, weaknesses and direction. Compiled by Jen St. Denis

LABOUR Participation rate

B.C.’s participation rate remained flat, compared with a national rise in the number of people looking for work 75% 73% 71% 69%

72.8%

67.4% 64.2% J

A

J

2011

O

J

A

J

O

J

2012

A

J

O

J

2013 B.C.

Canada

A

J

2014 Alberta Source: BC Stats

Unemployment rate

Unemployment rate by age

B.C.’s unemployment fell to 5.9%, according to Statistics Canada’s revised employment numbers

Compared with one year ago, youth unemployment has dropped sharply 14 10

3 2

8 6 4

1

2 B.C.

Canada June 2014

15-24 yrs

July 2014

25-44 yrs One year ago

45-64 yrs July 2014

Source: bc stats

Source: bc stats

real estate MLS sales in B.C.

2007

$1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 2008

2009

2010 Sales

2011

2012

2013

Average price

Sales

In July, sales declined after three months of gains 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 2014

Average price Sources: CREA, Central 1 Credit Union

The following is a list of stock trades made by corporate executives, directors and other company insiders of B.C.’s public companies filed the week ending August 20. The information comes from a compilation of required reports filed with the BC Securities Commission obtained from DisclosureNet.com.

Insider Desmond Balakrishnan, 10% owner Company: Great Canadian Gaming Corp. (TSX:GC) Shares owned: 0 Trade date: August 12 Trade total: $31,000,000 Trade: Sale of 2,000,000 shares at a price of $15.50 per share Insider Ross John McLeod, 10% owner Company: Great Canadian Gaming Corp. (TSX:GC) Shares owned: 0 Trade date: August 12 Trade total: $31,000,000 Trade: Sale of 2,000,000 shares at a price of $15.50 per share Insider Ross J. Beaty, 10% owner Company: Amerigo Resources Ltd. (TSX:ARG) Shares owned: 27,043,500 Trade date: August 14 Trade total: $1,350,000 Trade: Sale of 3,000,000 shares at a price of $0.45 per share

12

6 5 4

Per cent

Per cent

8 7

One year ago

Dynasty Metals (TSX:DMM) weekly price drop

11

F 17%

INSIDERTRADING

dashBoard

67% 65% 63% 61%

F 21%

BUSINESSVANCOUVER

August 26–September 1, 2014

note: seasonally adjusted

Insider Barry Donald Rayment, director Company: B2Gold Corp.

(TSX:BTO) Shares owned: 800,000 Trade date: August 12 Trade total: $129,310 Trade: Sale of 47,800 shares at prices ranging between $2.70 and $2.71 per share Insider Bradford Cooke, director Company: Endeavour Silver Corp.

(TSX:EDR) Shares owned: 1,072,831 Trade date: August 14 Trade total: $129,000 Trade: Sale of 20,000 shares at a price of $6.45 per share Insider Brazos Arthur Glenn Minshew, officer Company: Abattis Bioceuticals

Corp. (TSX:ATT) Shares owned: 121,000 Trade date: August 11, 14 Trade total: $121,920 Trade: Sale of 158,500 shares at prices ranging between $0.71 and $0.80 per share Insider John Cameron Rowntree, officer Company: North American Nickel Inc. (TSX:NAN) Shares owned: 1,597,500 Trade date: August 11, 12, 13, 14, 15 Trade total: $52,270 Trade: Sale of 104,500 shares at prices ranging between $0.50 and $0.52 per share Insider Larry Johnson, director Company: Comstock Metals Ltd. (TSX:CSL) Shares owned: 2,217,000 Trade date: August 13, 14, 15 Trade total: $41,000 Trade: Sale of 1,300,000 shares at prices ranging between $0.03 and $0.04 per share Insider Charles Edgar Fipke, director Company: Cantex Mine Development Corp. (TSX:CD) Shares owned: 5,481,881 Trade date: August 15 Trade total: $37,500 Trade: Acquisition of 750,000 shares at a price of $0.05 per share Insider Christopher Ross Anderson, director Company: Ximen Mining Corp.

(TSX:XIM) Shares owned: 1,048,600 Trade date: August 13, 14 Trade total: $33,645 Trade: Acquisition of 63,000 shares at prices ranging between $0.50 and $0.55 per share Insider James Redekop, director Company: Pure Multi-Family REIT LP (TSX:RUFU) Shares owned: 10,000 Trade date: August 15 Trade total: $24,750 Trade: Acquisition of 5,000 shares at a price of $4.95 per share •

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BUSINESSVANCOUVER

August 26–September 1, 2014

askthe experts

Office-sharing arrangements foster business growth and partnerships

QUESTION | I’ve

heard a lot about people using co-working spaces, but I’m still on the fence.

How can I be sure that using a co-working space is right for my business and its needs?

MICHAEL CHENG | Co-founder, Beta Collective

I

have built a number of businesses throughout my career. Some were built in my parents’ basement, some were built at coffee shops and some had the funding to support our own private office from the getgo. However, by far, my most successful and fulfilling ventures were built out of co-working spaces.

Here are three significant ways that building your business in a co-working space could benefit your organization:

Networking The strength of your business comes down to the strength of your network. Your business is essentially a growing network of customers, employees, partners, investors and the list goes on. Having a strong and diverse network helps you obtain referrals to key customers, secure top talent, foster new partnerships, gain introductions to investors and more.

Professionalism Imagine trying to close a deal by inviting a prospect to your parents’ basement or interviewing someone for a position to work full time with you at a coffee shop. When it comes to customer acquisition or talent procurement, it really helps to have access to a professional space.

Affordability Office space can be expensive, especially in Vancouver.

We are talking about thousands of dollars per month with a multi-year contract and a huge down payment.

It is a high-risk gamble to dive into long-term commitments for commercial real estate. Co-working spaces generally cost several hundred dollars per month with no minimum contracts.

AARON CRUIKSHANK | President, Cruikshank consulting

MITCHELL PURDY | Owner, Suite Genius

s someone who works out of a co-working space and who used to manage a co-working space (HiVE Vancouver), here is how I would answer your question:

A

I

1. How many full-time equivalent (FTE) employees does your business have now and how many will you have in a year’s time?

If your business is a half-dozen FTEs or fewer and will stay that size for at least a year, a co-working space is a good, affordable option. Co-working spaces give you a business mailing address, Internet, heat, power, meeting rooms, a kitchenette, etc. That’s a lot of overhead you don’t need to invest in unless you’re growing quickly.

Potential clients As a small-business owner, you are always wearing the sales hat and are regularly introducing your business to people you meet. At a co-working space, you get lots of practice pitching your business and services because every fellow member could be a potential client. If you gained even one or two clients per year from your co-working colleagues it would most likely cover your membership fees.

2. Are you working with sensitive client files?

Lawyers and bookkeepers can rarely work out of coworking spaces because few offer locked, private offices that comply with privacy legislation. Some spaces have private offices but most have open floor plans where you get locking drawers but no room to lock the drawer in.

3. Can you handle working in an open office environment?

The openness of most coworking spaces is not right for everyone. It doesn’t work for people who need things dead quiet, are easily distracted or are loud talkers.

So if you can handle an open space, have a smaller business that isn’t adding many new staff and isn’t dealing with private files, co-working may be a great solution for you. That said, if you’ve never worked in a co-working space, most offer free trials. Try a few and see if it’s a good fit for you and your business.

f you are getting your startup off the ground, are already a small business owner or a freelancer and are looking to up your productivity, increase your client base and improve your business’ professional image, then co-working could be right for you.

Increased productivity For many co-workers, the main reason to use a coworking space is because they get more work done, plain and simple. A survey of our current members at Suite Genius found that 69% of them have seen an increase in their productivity levels, and a global survey done by Deskmag.com reported an average of 83% of co-workers worldwide increased their productivity.

Professional image If you regularly meet with clients, then a co-working environment will offer all of the typical amenities needed to impress and service your clients.

In addition to all these benefits to your business, being part of a co-working space you will work in a friendly and communal environment where there are opportunities to make new friends, share your interests and have some fun in between all your hard work.

Next week’s question – How can I incorporate online advertising into my marketing strategy without a huge advertising budget?

Comments curated by BIV news staff | Have a question for the Experts? Email: news@biv.com

2015

Nominations now open!

Business in Vancouver is once again seeking nominations of BC’s most outstanding business women in private or public sector companies. Honourees have risen through the ranks in public and private companies to become senior executives or entrepreneurs. Through corporate board placements they help influence and shape policy at some of Canada’s largest companies. Check out full event details and access the nomination form at biv.com/events/biv/iwib.

Nominations deadline: December 5th, 2014.

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BUSINESSVANCOUVER

August 26–September 1, 2014

profile | Stewart Beck

13

East-West connector Diplomat Stewart Beck brings his formidable economic and cultural bridge-building experience to his new role as president of the Vancouverbased Asia Pacific Foundation

New Asia Pacific Foundation of Canada president Stewart Beck urges entrepreneurs to “skate to where the puck is going to be” |

Mission

To broaden the Asia Pacific Foundation’s focus in strengthening ties between Canada and emerging Asian countries

Assets

Three decades of experience in the diplomatic service, with a focus on Asian trade, education and technology

Yield

Reputation for innovative leadership in fostering “business ecosystems” on both sides of the Pacific

By Gordon Hamilton news@biv.com

T

he new president of the Asia Pacific Foundation of Canada says he wants to broaden the foundation’s reach into South Asia and Southeast Asia, two areas of the world that he believes hold untapped economic promise for Canada.

The foundation, an independent think-tank created in 1984 by an Act of Parliament, has done a good job in building bridges with east Asia, but it’s time to build links with the rest of Asia, Stewart Beck said in his first interview since stepping into the CEO post August 11.

“Clearly we are recognized in North Asia, or East Asia. I’d like to bring in the South Asia dimension because it is certainly something I understand and it would be fairly easy to bring that expertise in,” Beck said, referring

to the prevalence of the English language in much of South Asia.

Beck comes to the foundation after a 30year career in the diplomatic service, where he focused on business and trade, specifically around Asia and in the areas of education and technology. He comes to Vancouver after a four-year posting in Delhi as Canada’s high commissioner to India.

Beck said he sees the foundation taking a more active role in nurturing dialogue and communication among young entrepreneurs and advising federal and provincial governments on strategies to encourage the next generation of business leaders to become successful in the international marketplace.

He does more, however, than just talk the talk.

While in India, Beck initiated an exchange program for young entrepreneurs in both countries, bringing young Indian companies

Gordon Hamilton

to Canada to experience the technology and business culture of North America and sending young Canadian companies to India for first-hand experience in dealing with a large, complex marketplace.

Vancouver businessman and philanthropist Barj Dhahan said Beck was a leader in focusing on not only entrepreneurship between India and Canada but also education during his tenure as high commissioner. Beck’s appointment to the foundation is timely, given the growth and opportunities in South Asia, said Dhahan, who is past chair of the Canada India Foundation.

“Stewart’s appointment is very timely because, as a country and a province, we are certainly looking at Asia, not just at China and Japan but all of Asia, South Asia and Southeast Asia. It’s timely that the foundation has continued on page 14

14

profile

BUSINESSVANCOUVER

August 26–September 1, 2014

East-west connector Continued from page 13

a broader focus on all of Asia,” Dhahan said.

B e ck i s e a ger to apply h i s India experience, coupled with a career-long belief in educating young people on what he calls “business ecosystems,” to shape the next chapter for the foundation.

He wants the foundation to be well positioned to act as a catalyst to engage young entrepreneurs on both sides of the Pacific as regional Asian economies grow stronger.

“It’s the Wayne Gretzky thing: skate to where the puck is going to be,” Beck said. “That’s part of the role I think the foundation has.”

Beck’s hockey analogy comes from experience. Dhahan said that, along with other Canadian officials, the former high commissioner would host an ice hockey tournament in northern India to introduce young Indians to Canada’s national sport as a bridge-building exercise. He was known to bring shipments of hockey sticks, skates and pads from Canada to India.

“A lot of people in India know about our national sport as a result,” said Dhahan.

That kind of bridge building pays dividends for both countries, Dhahan said.

The Asia Pacific Foundation

describes Beck as an innovator known for emphasizing entrepreneurial skills.

“We are pleased that a Canadian with deep Asian experience and of Stewart’s calibre and clear record of getting things done is joining us,” foundation chairman John McArthur said in a news release at the time of Beck’s appointment last spring.

Headquartered in Vancouver with an office in Toronto, the Asia Pacific Foundation provides research, analysis and information on Canada’s transpacific relations.

Beck’s experience in the foreign service spans 30 years.

His first international posting came in 2005 when he organized a trade office in Silicon Valley, California.

T he mandate was to introduce Canadian business people to U.S. product representatives and distributors. Canadians back then, Beck recalled, were not very sophisticated when it came to international trade. They would hedge over closing on deals or walk away because they didn’t like the American terms.

“It was difficult working with companies on the Canadian side who typically had good technology but were very careful and didn’t really understand how to work with reps and distributors.

So I got a little frustrated dealing with that area. I found the companies in the valley were more

Stewart’s appointment is very timely because, as a country and a province, we are certainly looking at Asia, not just at China and Japan but all of Asia, South Asia and Southeast Asia. It’s timely that the foundation has a broader focus on all of Asia

[] Barj Dhahan Vancouver businessman and philanthropist

Grand Opening

interested in investment opportunities in Canada, so it really morphed into more of an investment development kind of job, working with the big companies looking at the Canadian market.”

It was a learning experience for Beck, and in the ensuing 30 years, he said, Canadians have improved their skills in international trade. Canadians back then lacked the entrepreneurial spirit of seeking opportunities and accepting failures that characterized U.S. businesses.

“We have gone from a country that was very intolerant of people who failed to getting to a point now where we understand failure. You see many more young entrepreneurial companies coming up now. One of the things we can talk about in the context of this job with the Asia Pacific Foundation is innovation, education, entrepreneurship. We have an ecosystem that’s evolving now in Canada that a lot of people don’t completely understand or see. But it is really an interesting area and one that we can promote as an area of excellence for us.”

Beck was born in Montreal and moved to Toronto with his family as a teenager.

He received his undergraduate degree and an MBA at Queen’s University in Kingston. He taught for two years at Queen’s business school.

At the same time, he was doing economic development work for

the department of Indian and northern affairs on Ontario First Nations reserves.

“It was my first cross-cultural experience,” he said.

He wrote the foreign service exams at that time and in 1982 was accepted into the foreign service as a trade commissioner.

After spending two years in Ottawa, he received his first posting – to San Francisco. In 1985 he opened the Silicon Valley trade office. He returned 20 years later as consul general at San Francisco. In between, he worked in Asia and in Ottawa, specializing in Asian issues.

His credentials include postings to the Canadian Trade Office in Taiwan and the Canadian Consulate in Shanghai, where he was consul general.

In Ottawa, his positions at the department of foreign affairs and international trade included director general for North Asia and assistant deputy minister for international business, development, investment and innovation.

He and his wife, Brenda, have three children, all boys; one is working in India, one is working here and the youngest will be attending high school in North Vancouver. •

K biv.com

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BUSINESSVANCOUVER

August 26–September 1, 2014

15

Asia pacific

Asian economy slows, but B.C. exports east still growing

16

Natural resources still top export list, but opportunities in other areas abound

China’s spy network targets high-rolling Macau gamblers

17

Gambling junkets’ fortunes fall under government scrutiny, sagging economy

Tsilhqot’in lawyer David Rosenberg (right) with Chief Roger William: Supreme Court ruling could make treaties “inapplicable” if First Nations are not consulted

Native band battles Canada-China deal trade | FIPA

agreement raises land-use and regulatory control issues

By Jen St. Denis jstdenis@biv.com

SponSored by

T

he Supreme Court of Canada’s recent aboriginal land rights decision continues to reverberate, with experts saying it could affect the way Canada negotiates international trade agreements.

The Hupacasath First Nation has been fighting a Foreign Investment Promotion and Protection Agreement (FIPA) between Canada and China in court. While the court challenge was dismissed in September 2013, the band expects to hear the results of an appeal within the next few weeks.

In their appeal, the Hupacasath included new submissions based on the Supreme Court’s June 26 ruling that awarded aboriginal title over 1,750 hectares of land to

the Tsilhqot’in First Nation.

Potent i a l l a nd u sers mu st now get Tsilhqot’in consent before starting a project.

“For First Nations who haven’t finalized a treaty, it gives us more right to pursue it because the government is talking about lands where ownership hasn’t been resolved,” Hupacasath spokeswoman Brenda Sayers told Business in Vancouver.

The 300-member First Nation near Port Alberni is concerned the trade agreement could override land-use planning already underway on their traditional territory.

While Canada has signed dozens of FIPAs with various nations, Sayers said her band is particularly concerned about this agreement because China is the world’s secondlargest economy and because of its interest in Canada’s natural resources.

The FIPA with China has come under fire from the federal New Democratic Party and from left-leaning groups like the Council of Canadians, which say the agreement could leave governments open to expensive lawsuits and make it harder to enforce Canadian regulations.

FIPAs are used to protect foreign investors, and they’re especially important for Canadian companies looking to do business in countries like Russia or China, said John Ries, a professor at the University of British Columbia’s Sauder School of Business.

If ratified, the agreement should spur more Chinese investment in Canada.

“It reduces the perceived risk of the investors, and with less risk companies are going to be willing to do it,” Ries said. continued on page 18

16

Asia Pacific

BUSINESSVANCOUVER

August 26–September 1, 2014

Asian economy slowing down, but B.C. exports to China and other key trading partners still rising pacific rim trade | Natural

resources continue to top the province’s exports to the Far East, but opportunities in agriculture and education are growing

By David Jordan news@biv.com

I

f Asia’s economic engine is slowing down, someone forgot to tell B.C. exporters.

The province’s exports to its main Asian trading partners were up 5.8% last year compared

2010, that country remains the biggest Asian buyer of B.C. products, consuming $6.6 billion of the province’s goods in 2013 – primarily coal and pulp. (The U.S. remains by far the biggest destination for B.C. goods, accounting for 46% of B.C. exports last year, compared with 20% for China.)

with 2012, reaching $13.7 billion, and the pace continued through 2014’s first six months, up another 5% compared with the same period a year ago.

Even though mainland China’s gross domestic product growth slowed to 7.7% last year, compared with 10.4% at its peak in

B.C. exports to mainland China: 2013 ($6.6 billion) Other

Metallic mineral produts

Coal

12.7% 13.2% 27.8% 19.2% 27.1%

Wood products

Pulp and paper products

B.C. exports to Asia $7,000

Millions of dollars

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But the pace of growth in B.C.’s exports to China is slowing, and that will have an impact on B.C., according to Ken Peacock, chief economist at the Business Council of BC. With monthly growth hovering around plus or minus 2% compared with the previous year, exports to China are essentially flat, Peacock said.

“When you go from 10%, 15%, 20% year-over-year growth to essentially flat, that is a little bit of a different world.”

But Peacock added that those export numbers are a reflection more of price than of volume; B.C.’s resource companies will continue producing coal and lumber, so the jobs will still be there, but the impact will show up in earnings reports.

“It does mean lower corporate profits, which has an impact on British Columbia,” Peacock said, “and in some segments it might mean less production, which means a little bit of scaling back in job opportunities or hours worked.”

Despite a population rivalling China’s, similar economic growth and a burgeoning middle class, India remains a relatively insignificant destination for B.C. goods. It accounted for just $468 million in exports last year – primarily coal and copper ore.

I nd i a’s appet ite for B.C.’s raw materia ls isn’t l i kely to rival China’s in the foreseeable future, according to Peacock, because unlike China, which has been investing in a

2009

2010

Japan

2011

2012

South Korea

2013 India

manufacturing-oriented export economy for decades, India’s economy is geared more toward technology and services.

However, Peacock added, when services, particularly tourism, are included in B.C. exports, India shows potential for growth.

“I know with China tourism is going to be big, but we’ll probably have some opportunity with tourism in India as well.”

Education, he said, is also a growing export to both countries.

Economists consider tourism and education to be exports because they represent an injection of money into the local economy from external sources. B.C. will likely continue to depend on natural resources for the bulk of its Asian exports for the foreseeable future; however, Peacock points to growth opportunities in one value-added sector.

“Probably the biggest opportunity in Asia generally, but particularly in China, would be the agricultural sector,” he said.

That’s because as the middle class continues to grow, there will be an increasing demand for meat and fish products in particular, but also more generally for higher-quality food.

“Secure, safe, high-quality food is going to be a growth area, and B.C. is well positioned to take advantage of that opportunity.” •

K biv.com

For more Asia Pacific news, go to biv.com/news/Asia

Asia Pacific

BUSINESSVANCOUVER

August 26–September 1, 2014

17

China’s spy network spooks big-spending Macau gamblers

Asian outlook JOnathan Manthorpe

Instead of Macau, reasonably well-heeled Chinese gamblers are flying to casinos in other Asian countries, where the industry has developed hugely in recent years in an effort to eat into the Macau market

C

hinese high-rolling gamblers are avoiding their usual playground, the world’s casino capital Macau, and seeking safer tables away from the spying eyes of Beijing’s graft-busters.

In July, Macau casino revenues from VIP Chinese gamblers were down between 14% and 18% over the same month last year, according to various analysts who study the industry in the former Portuguese colony, which was returned to Beijing’s rule in 2000.

Chinese high rollers often use the private gambling facilities in Macau’s casinos provided by controversial intermediary companies known as “junkets.”

Revenues through junkets accounted for two-thirds of the $45 billion in gambling revenues generated by Macau last year, seven times that of Las Vegas.

According to Macau’s Gaming Inspection and Co-ordination Bureau, total casino revenues were down year-on-year 3.7% in June and 3.6% in July, the first time there has been a decline in five years. Many analysts saw

Buildings of Macau Galaxy, a landmark casino in Macau city. The Chinese government’s continuing fight against corruption has helped drive gamblers away from gambling junkets in the former Portuguese colony

June’s slide as a one-off, as the attention of Chinese gamblers turned to the soccer World Cup. But a similar drop in July is beginning to look like a trend, and the blame is being put at the door of China’s president, Xi Jinping, and the anti-corruption campaign he started soon after coming to power in 2012.

As he came to office, Xi warned that endemic corruption threatened the survival of Communist Party rule. State-controlled media is reporting that 63,000 officials were “disciplined” in the first five months of this year for corruption.

VIP gamblers are staying away from Macau because they fear the scrutiny of the agents of Xi’s chief graft-buster, Wang Qishan, head of the Central Commission for Discipline Inspection, the Communist Party’s internal Inquisition.

Instead of Macau, reasonably well-heeled Chinese gamblers are flying to casinos in other Asian countries, where the industry has developed hugely in recent years in an effort to eat into the Macau market.

Casinos in Vietnam, the Philippines and Malaysia are favourites. Singapore has also moved confidently into the gambling business, and revenues from its two casinos last year were only slightly less than those of the Las Vegas strip.

High-end Chinese gamblers are going even farther afield to avoid the attention of Wang’s inquisitors. They are flying to Australia, Europe and, of course, Canada to indulge their passion.

The junket operations in Macau catering to Chinese high rollers have been a matter of contention for many years.

Typically, these operations lease private gaming rooms from the casinos, where VIP Chinese gamblers are entertained with not only gambling, but also the best of wine, women and song.

The key service provided by

Gambling junkets’ fortunes fall under government scrutiny, sagging economy When he disappeared from Macau in May, Huang Shan left massive debts, but he appears to have made off with $1.3 billion of other people’s money.

Huang for many years ran a “junket” operation in Macau casinos, providing private gambling rooms and lines of credit for mainland Chinese high-rolling gamblers. Junkets have been a risky, but highly profitable, business, generating two-thirds of Macau’s gambling revenue.

The exact reason for Huang’s disappearance remains a matter of conjecture, but it is being seen by many observers of the

rising interest rates and a slump in the value of property have all contributed to belt-tightening among highrollers. Junkets frequently require gamblers to put up their property or equity in their companies as collateral for credit in Macau, and the value of both these assets has slumped.

There are reports that 14 of the small or medium-sized junket operations in Macau have been forced to close down for lack of custom.

Meanwhile, the large junket companies are scrambling to diversify.

One of Macau’s largest junket operators, Imperial Pacific International Holdings, last week announced it plans to build a $3 billion casino on the Pacific island of Saipan in the Commonwealth of the Northern Mariana Islands.

Jonathan Manthorpe (jonathan. manthorpe@gmail.com) has been an international affairs columnist for nearly 40 years.

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Macau gambling phenomenon as a fulcrum moment, heralding the decline of the junkets.

Recently, the Macau authorities, under pressure from Beijing, have put the junkets under increased scrutiny and regulation. The 220 private gambling rooms the junkets rent from the Macau casinos are a route for corrupt or wealthy Chinese business people and officials to illegally spirit their money out of the country.

In return for payment in China, the junkets offer credit in Macau, from where money can easily be transferred abroad.

But the junkets seem to be victims of China’s economic woes as much as of official displeasure. The devaluation of the Chinese currency, the renminbi, earlier this year,

the junkets, however, is credit.

Chinese are only permitted to legally take $3,000 out of the country on one visit to an overseas destination, which includes Macau. Junkets get around this by providing credit repayable at home. The casinos are unwilling to provide large amounts of credit, because there is no legal way for them to recover debts in mainland China. The junkets have a higher tolerance for risk, in part, it is alleged by various law enforcement agencies, because of relationships with the Chinese triad criminal gangs, who have many uncomfortable ways of ensuring debts are paid.

The junkets are also claimed to be channels through which some wealthy Chinese avoid Beijing’s currency restrictions and spirit assets abroad to havens in Canada, the United States, Australia, Europe and elsewhere.

Macau’s casinos are already responding to the decline in VIP business. The Macau branch of Las Vegas Sands Corp. is reported to be cutting the number of VIP tables by 28% and reinforcing its emphasis on massmarket players. •

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18

Asia Pacific

BUSINESSVANCOUVER

August 26–September 1, 2014

INDIA

CHINA

AUSTRALIA

INDONESIA

NORTH KOREA

Soviet echo to go silent

Beijing pushes eco-etiquette

Tourism down Down Under

Stock exchange delayed

Government boosts drug trade

India’s new prime minister, Narendra Modi, is moving to dismantle one of the last reminders of founding prime minister Jawaharlal Nehru’s admiration for the Soviet Union’s despotic leader Josef Stalin. In 1950 Nehru set up India’s Planning Commission, a copy of the Soviet Union’s Gosplan and similarly responsible for planning economic development. Gosplan died in 1991 along with the Soviet Union, but India’s version has survived.

In his first speech marking India’s Independence Day, Modi said the commission will be replaced by a United States-style council of economic advisers.

China’s government has issued a list of “behavioural standards” it expects citizens to adhere to in order to try to reduce environmental damage. The eight examples of bad environmental behaviour include cooking by barbecue, setting off fireworks and burning garbage. The public is also urged to walk to work or travel by bicycle and to buy goods with less packaging. Citizens should also report any environmental bad behaviour they see in others. A recent local government report on the lifethreatening air pollution in Beijing said 31% comes from vehicles, 22.4% from coal burning and 18.1% from industry.

Warnings by several governments about Australia’s poisonous or maneating wildlife, tempestuous weather and – in some places – homophobic citizens are having a dramatic effect on the picture of tourism Down Under. The biggest decline last year was 30% over 2012 in visitors to Upper Yarra in Victoria state, renowned for its nature reserve.

Bundaberg in Queensland is known as “the gateway to the Great Barrier Reef,” but it is also rated as Australia’s third-most homophobic city and tourism is down 20%. The number of visitors to Kakadu, Australia’s largest national park in the Northern Territory, is down 17%.

In a further sign that the 10 countries of the Association of Southeast Asian Nations are going to be hard pressed to be ready to form their planned economic community next year, the Indonesian Financial Services Authority says the country’s stock exchange (IDX) is far from ready. The main problem is that for the IDX to list a foreign company, its prospectus must be audited by a commission recognized

by Indonesia’s financial authority.

Any changes to the rules will have to be made by the country’s parliament, and with a new administration taking office, there’s no guarantee it can be done swiftly.

For lack of many other ways of making significant amounts of money, North Korea’s young new leader is falling back on the tried-and-true family business of producing and trafficking heroin.

Faced with a flood of the drug coming over the border, Chinese authorities have embarked on a crackdown and recently executed three North Korean drug smugglers. North Korea started exporting drugs in 1992 and managed the operation through an agency of the ruling Workers’ Party. A Chinese military journal has reported that North Korea produces 40 tonnes of opium a year, generating up to $200 million a year in revenue.

Native Band Continued from page 15

“Some people are a little bit leery – for instance, China has invested heavily in oilsands in Alberta. To some people, that’s a problem because they don’t like the oilsands. Other people think it’s going to be beneficial to Canada.”

The Tsilhqot’in ruling could mean that if government doesn’t consult with First Nations before signing treaties, those treaties could be “rendered inapplicable” by the courts, said David Rosenberg, the Vancouver lawyer for the Tsilhqot’in.

He said the court would consider three factors: “Was there minimal impairment [of a First Nation’s interest]? Did Canada take into account the First Nation’s interest and enter into an agreement that would minimally impair it? Did it offer appropriate compensation to the First Nation?”

Rosenberg added that modernday treaties can be written with a clause that acknowledges aboriginal rights and title.

“Canada could say to China, this is the law in Canada and, to the extent that the treaty infringes aboriginal title or is found to in the future, it’ll be read to not apply on those lands in the future.”

[If I were a Chinese company] I would want the First Nations at the table with me to make sure that if I do go in there and build a mine, everyone’s on side

[] john ries professor, Sauder School of Business

In light of the recent court case, Ries said Chinese companies might be concerned about the Canadian government changing the rules if a trade agreement is ratified without consulting First Nations. “[If I were a Chinese company] I would want the First Nations at the table with me to make sure that if I do go in there and build a mine, everyone’s on side,” he said.

Canada’s Department of Foreign Affairs, Trade and Development did not respond to an inquiry from BIV about whether consultation with First Nations is a consideration when negotiating trade treaties. •

K biv.com

For more Asia Pacific news, go to biv.com/news/Asia

BIVLIST Board directors and officers need to ensure they have adequate D&O insurance

BUSINESSVANCOUVER

August 26–September 1, 2014

19

One thing is certain in the financial wOrld.

The Chartered Financial Analyst® designation is a trusted mark of integrity in today’s ever-changing financial world. With its rigorous focus on investment knowledge, analytical skill, and ethical conduct, no credential is more highly regarded in the financial industry.

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Corporations conducting business in the U.S. likely carry more risk because of the more litigious environment in that country and its additional statutory exposures

B

oard directors and officers in Canada face a range of legal exposures when acting on behalf of the corporations they serve. Such personal liability is meant to ensure that they are accountable and responsible for the failure of a corporation to meet its legal obligations. Directors and officers increasingly look to the state of their indemnities and insurance and their professional advisers to assure they have appropriate protection in place.

Directors and officers reduce their risk by acting competently and honestly but still may be negligent without being aware of such situations. In most cases, directors look to their corporation to reimburse or directly pay for legal costs and any judgments against them, either from corporate funds or through directors and officers (D&O) insurance policies.

Board members are required to act in good faith and in the best interests of the organization.

Directors and officers may be liable for failure to act under a statute or the non-compliance

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of the organization with a statute. The three main provincial and federal statutes are environmental, employee-relation and tax legislation. Depending on the nature of the business, other statutes might apply.

The D&O policy for a corporation’s board is almost always placed and paid for by the corporation. Policies typically consist of a basic form, with endorsements that augment or replace various elements of the basic form, specific to the organization’s needs. Directors and officers are covered for their own wrongdoing within the terms of the policy.

Coverage is also provided to the corporation for the cost of indemnifying (compensating) the directors and officers, often with a significant deductible attached.

Corporations conducting business in the U.S. likely carry more risk because of the more litigious environment in that country and its additional statutory exposures. It can be a great comfort to have a D&O policy with sufficient limits to cover defence costs in the event of a claim and contribute to a settlement.

Examples of D&O claims: •A condo corporation’s board of directors hires a contractor

to perform significant work on the building’s common areas.

The board pays the contractor the full cost of the job prior to any work being completed.

Soon after, the contractor files for bankruptcy without completing any of the work. An investigation determines that a member of the board has a personal relationship with the principal of the contracting company. The condo owners subsequently sue the board for mismanagement of funds to the amount of the contract: $200,000. Claims negotiations are ongoing.

•The executive director of a day-care centre is terminated due to unauthorized spending of the organization’s funds.

The day-care centre is sued for wrongful termination. The suit settles for $75,000.

Directors should work with management to satisfy themselves that D&O insurance is bought as part of a corporate risk management plan that includes the advice of insurance professionals with expertise in the corporation’s coverage needs. • Mike Wilson (info@ mikewilsoninsurance.com) is a commercial insurance agent with Don Wotherspoon & Associates Ltd.

Kevin McIntyre to be honoured as Insurance Person of the Year

T

he Insurance Brokers Association of British Columbia (IBABC) congratulates its 2014-15 President Kevin McIntyre on being named B.C.’s 2014 Insurance Person of the Year.

Recipients, who are nominated by their peers, are insurance professionals who have made an outstanding contribution to the insurance industry and have demonstrated a strong commitment to their community.

Kevin McIntyre Kevin McIntyre is President of Underwriters Insurance Brokers and Guardian Risk Managers. The two firms employ more than 40 people in Kamloops and Vancouver.

McIntyre is currently serving his second term as president of the IBABC, having served previously in 2005. He has served on the IBABC board for 11 years. He represents brokers on several committees and task forces with ICBC and with private insurers Optimum West and Aviva. Nationally, McIntyre served as director of the Insurance Brokers Association of Canada, and was the founding chairman of the National Task Force on Political Action.

An avid community supporter in Kamloops, McIntyre has been honoured as Kiwanian of the Year and Rotarian of the Year and has served as president of Kamloops Crimestoppers.

McIntyre says his motivation is simple. “I can sum it up in three words: Make things better”.

The Insurance Person of the Year presentation takes place Oct. 23 in Vancouver.

www.ibabc.org

20

BUSINESSVANCOUVER

August 26–September 1, 2014

BIVLIST

Biggest insurance companies in B.C.

Ranked Totaldirect directwritten writteninsurance insurancepremiums premiums-in B.C. RANKED BY | BY | Total B.C. only Rank '14

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Company

Top local executive(s)

Specialties

Direct written premiums '13

Lloyd's Underwriters1 1155 Metcalfe St Suite 2220, Montreal H3B 2V6 P: 514-861-8361 F: 514-861-0470 www.lloyds.ca Intact Insurance Co 999 Hastings St W Suite 1100, Vancouver V6C 2W2 P: 604-891-5400 F: 778-328-6399 www.intactfc.com RSA Canada Group 200 Granville St Suite 2110, Vancouver V6C 1S4 P: 604-684-8111 F: 604-662-3599 www.rsagroup.ca Economical Insurance Group 1055 Georgia St W Suite 1900, Vancouver V6E 3P3 P: 604-684-1194 F: 604-684-1197 www.economicalinsurance.com Aviva Canada Inc 1125 Howe St Suite 1100, Vancouver V6Z 2Y6 P: 604-669-3212 F: 604-688-2656 www.avivacanada.com Wawanesa Insurance 1985 Broadway W Suite 400, Vancouver V6J 4Y3 P: 604-739-5440 F: 604-739-5410 www.wawanesa.com The Co-operators Insurance 10334 152A St Suite 106, Surrey V3R 7P8 P: 604-585-9906 F: 604-585-9924 www.cooperators.ca Northbridge Financial Corp 595 Burrard St Suite 1500, Vancouver V7X 1G4 P: 604-683-5511 F: 604-683-8968 www.nbins.com AIG Insurance Co of Canada Vancouver 595 Burrard St Suite 2073, Vancouver V7X 1G4 P: 604-684-1514 F: 604-691-2939 www.aig.ca Zurich Canada 888 Dunsmuir St Suite 900, Vancouver V6C 3K4 P: 604-685-9241 F: 604-844-3466 www.zurichcanada.com Chubb Insurance Co of Canada 250 Howe St Suite 910, Vancouver V6C 3R8 P: 604-685-2113 F: 604-685-3811 www.chubb.com

NA

Liability, commercial and personal property insurance, marine insurance

$474,645,000

Jennie Moushos, senior vice-president, Western Canada, Rick Howe, regional vice-president

Casualty, marine and pleasure craft, contract and surety bonds

$441,527,000

Tony Hayes, regional vice-president

Property and casualty insurance

$438,471,000

Gary Horga, branch manager

Property and casualty insurance

$286,016,000

Donna Cheeseman, branch manager

Property and casualty insurance

$241,269,000

Graham Haigh, vice-president, regional insurance operations

Home and business insurance

$213,566,000

Bruce Wiebe, district manager

Property and casualty insurance, life insurance

$148,225,000

Joy Banks, vice-president, Western Canada

Business insurance for a variety of industries

$132,614,000

Robert Frew, branch manager

Accident and health insurance for individuals and businesses

$122,133,000

Robert ten Vaanholt, B.C. regional manager

Commercial insurance for large corporations, Canadianbased multinationals, businesses in manufacturing, transportation and construction Property and casualty insurance for individuals and businesses

$112,252,000

Canadian Direct Insurance Inc2 750 Cambie St Suite 600, Vancouver V6B 0A2 P: 604-699-3678 F: 604-699-3860 www.canadiandirect.com The Dominion, part of Travelers Canada 1055 Georgia St W Suite 2400, Vancouver V6E 3P3 P: 604-684-5811 F: 604-688-0053 www.thedominion.ca Factory Mutual Insurance Co (FM Global) 550 Burrard St Suite 1788, Vancouver V6C 2B5 P: 604-688-8581 F: 604-688 6446 www.fmglobal.com Gore Mutual Insurance Co 505 Burrard St Suite 1780, Vancouver V7X 1M6 P: 604-682-0998 F: 800-601-9773 www.goremutual.ca

Brian Young, president and chief executive officer, Colin Brown, Home, auto, travel and RV insurance chief operating officer, Michael Martino, chief financial officer

$75,625,000

NA

Property casualty insurance for home and business

$62,571,000

Michael Key, branch manager

Commercial and industrial property insurance

$61,786,000

NA

Personal and commercial insurance

$61,761,000

Optimum West Insurance Co3 4211 Kingsway Suite 600, Burnaby V5H 1Z6 P: 604-688-1541 F: 604-688-1527 www.optimum-general.com CNA Canada (Continental Casualty Co) 701 Georgia St W Suite 225, Vancouver V7Y 1C6 P: 604-257-0400 F: 604-682-4395 www.cnacanada.ca Mutual Fire Insurance Co of BC 9366 200A St Suite 201, Langley V1M 4B3 P: 604-881-1250 F: 604-881-1440 www.mutualfirebc.com Peace Hills General Insurance Co 1201 Pender St W Suite 205, Vancouver V6E 2V2 P: 604-408-4708 F: 604-408-4718 www.peacehillsinsurance.com RBC Insurance 2985 Virtual Way Suite 301, Vancouver V5M 4X7 P: 604-689-1738 F: NA www.rbcinsurance.com

Jeremy Green, regional vice-president

Residential and commercial property insurance

$49,530,000

Gail Stroschein, vice-president and branch manager

Property and casualty carrier, provides commercial insurance products

$48,883,000

NA

Home, farm and small to medium-sized business insurance $42,948,000

Daryl Kochan, branch manager

Home and commercial property insurance

$41,619,000

Jarrod Merkel, regional vice-president, Clinton Wong, regional director

Personal home and property insurance, travel insurance

$31,603,000

Dale Chow, vice-president and branch manager

Sources: Interviews with above companies, Canadian Underwriter magazine’s 2014 Statistical Issue (www.canadianunderwriter.ca) and BIV research. NA Not applicable/available 1 - Does not have an office in B.C.; works with local underwriting agents (coverholders) and brokers 2 - Subsidiary of Canadian Western Bank 3 - Subsidiary of Optimum General Inc

Business in Vancouver makes every attempt to publish accurate information in the List, but accuracy cannot be guaranteed. Researched by Anna Liczmanska, lists@biv.com.

Next week’s lists – Casinos and gaming centres in B.C. and airlines out of YVR

Profit from good advice.

Professional guidance to help you achieve your business goals.

$84,064,000

BUSINESSVANCOUVER

August 26–September 1, 2014

HOw

Entrepreneurial instinct helps build successful business intelligence ventures

I did it Mark cunningham | Deal-maker Business in Vancouver’s “How I Did It” feature asks business leaders to explain in their own words how they achieved a business goal in the face of significant entrepreneurial challenges. In this week’s issue, serial entrepreneur Mark Cunningham talks about building and selling his fourth company, Indicee Inc., to business information giant Dun and Bradstreet Inc. (NYSE:DNB), and how the companies he founded helped foster Vancouver’s niche expertise in business intelligence and analytics.

“

21

I

n the early ’90s, we created a company – it was part of my family business, the Cunningham Group – called Crystal.

We created Crystal Reports. It became Crystal Decisions. Crystal Decisions became Business Objects and Business Objects became SAP (Canada Inc., Vancouver).

“After we sold Crystal, I started another company called

has been a driving force in business intelligence and analytics

Symmetrics, which is a software company – again in the analytics business, intelligence space. That company exists today and continues to grow. I don’t run that personally. I’m basically just the chairman of that company and a significant shareholder.

“Indicee started in 2007.

Cloud was becoming the big new movement. As well, there was an opportunity at the time where a lot of the people that I knew and trusted in at Crystal – smart people – were starting to leave SAP. It was an opportunity for me to assemble a really killer team of people, combined with a market opportunity to create this new product.

“The challenge with business intelligence is that it’s very expensive and it’s a very complex set of tools and capabilities and [takes] lots of professional

services to make it work. So what we were trying to do is create a much more simplified user experience.

“As we started moving it into the market, we were out there making waves, making noise.

We did a big partnership with Salesforce.com. We started to get courted by a number of strategic investors and buyers who started to ask us if we were interested in selling the company.

“I have two focuses as a leader of a company. No. 1 is I have a responsibility to my shareholders.

However, I’m also representing my team and what’s the best fit for the team. You want to get the good outcomes for the investors.

They’re less excited about the product than the team. It’s that balancing act of actualizing the dollar value from the exit but also maximizing the opportunity for the team.

Q&A

“We had other opportunities that I think could have resulted in more money, but we pursued this one harder. We had a number of different parties looking at us and D&B was by far the coolest opportunity. What was exciting about it is that D&B wanted to modernize their technology. They looked at our team as the experts in cloud technology, analytics, data technology that can take this older, established brand – they’ve been around for 171 years – and bring the excitement of a startup to help with the transformation.

“We’re all about data and analytics. There’s actually a lot of talent in this city around this type of technology. ...

“We’re going to keep going just like a startup, within a big company. ... We’re going to grow to hundreds of people over the next couple of years. •

Q : As part of the acquisition, you and your team stays in Vancouver.

What is your new title?

A : I’m founder and president of the D&B Cloud Innovation Center.

Q : What exactly does Indicee do?

A : Indicee is about extracting data from different data sources and being able to mash the data together to create reports, dahsboards, scorecards that you can then share and collaborate with other business users.

Q : What’s the biggest challenge of building this business?

A : Recruiting. We’re going to be going from 20-some people to 100 people.

April ’14

Indicee acquired by Dun & Bradstreet for undisclosed sum

Cunningham launches Indicee, a cloud-based business intelligence service

May ’14

Crystal Services sold to Seagate Software and rebranded as Crystal Decisions. Cunningham launches new company, Symmetrics

Business Objects acquires Crystal Decisions for US$820 million

2007

2003

Cunningham’s family launches business intelligence software product Crystal Reports, marketed by Crystal Services

1996

1992

K captain of the cloud

Cunningham founds D&B Cloud Innovation Center within D&B Canada

Next week’s How I Did It – David Helliwell, CEO and founder of Pulse Energy

How did you do it? Do you or does someone you know have a story to share? Contact Nelson Bennett at nbennett@biv.com

Seeking BC’S Top ExporTErs The BC Export Awards recognize the innovative approaches and unique contributions of British Columbia export companies across all sectors and in all regions of the province, as well as the individuals who contribute to their success.

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22

BUSINESSVANCOUVER

send your free listing to fortherecord@biv.com

August 26–September 1, 2014

for the record People on the Move Email your For the Record information to: fortherecord@biv.com.

Please include a high-resolution, colour headshot where possible.

Development/ Construction Michael McGale Michael McGale joins ZGF Cotter Architects as an associate in conjunction with a move from ZGF Architects’ Portland office. McGale brings a depth of design experience in sustainable health care and large-scale mixed-use design.

Recent project highlights include the 3.6-million-square-foot City Creek mixed-use redevelopment in Salt Lake City, Utah, and St. Joseph Community Hospital in Denver, Colorado.

Finance

Simon A. Philp Simon A. Philp, director of CIBC commercial banking for Vancouver Island and the Yukon, has been elected chair of the Certified Management Accountants of BC’s (CMABC) board of directors. Philp will lead the elected board for the year while also sitting on the Chartered Professional Accountants of BC’s transitional steering committee. Joining Philp on the CMABC board of directors are: David B. Hallinan (first vice-chair), director of corporate services and facilities at the British Columbia Lottery Corp. in Kamloops; Diane Kerley (second vice-chair), principal of the accounting and finance department of David Aplin Group in Vancouver; Mark J.L. Kennedy (treasurer), owner of Blackfish Accounting Services Ltd. in Burnaby; Vinetta Peek (secretary), president and CEO of the CMABC in Vancouver; Tammy Towill (past chair), partner at

Number CruNChiNg with Flair AUDIT

Traditional accounting values combined with cutting edge IT ■ Network of experienced professionals ■ Proud member of the Certified General Accountants of BC and Canada ■

TAX ADVISORY certified general accountant

George Wilson-Tagoe, BSc., CGA

Suite 1000–355 Burrard St. Vancouver Ph: 604-608-6156 For more information visit: www.wilson-tagoe.com wiltagoe@intergate.ca • www.wilson-tagoe.com • Cell: 604-818-0127

Peppertree Group and an instructor at Capilano University’s School of Business and School of Tourism; Lynn Casey (director), partner at Peppertree Group; Gerald (Gerry) T. Dragomir (director), managing partner at Pace Accounting Inc. in Vancouver; Elaine (Lainee) Eccleston (director), educator and instructor at the College of the Rockies in Kimberley; Timothy (Tim) J. Edwards (director), acting associate dean of the graduate certificate in business administration program and associate dean of accounting, finance and insurance at the British Columbia Institute of Technology in Burnaby; Doris Good (director), training officer with the B.C. provincial government’s Ministry of Finance, consumer taxation audit branch, in Vancouver; Bernard (Bernie) Magnan (director), managing director at Bernard Magnan and Associates Ltd. in Coquitlam; Bruce McLennan (director), principal of McLennan Consulting in Nanoose Bay; Matthew (Matt) Murray (director), director of corporate financial planning and analysis at Telus in Burnaby; and Lyndon Peterson (director), director of leasing and property services at Northern Health in Prince George. The provincial government has also appointed four public representatives to serve for the 2014-15 term: Chamkaur S. Cheema, Maxine DeHart, Sarup Mann and Stephen P. Quinn.

Tara Murphy has joined property development and investment company Grosvenor Americas as administrative assistant for its Vancouver finance team.

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Andrew Mowatt Franceen Gonzales Andrew Mowatt has been appointed to the newly formed position of executive vice-president, corporate accounts, at WhiteWater West Industries Ltd., the Richmondbased water park and attractions company. Franceen Gonzales, who joined the company last year, has been appointed executive vicepresident, business development, Americas; she will be responsible for the overall business development team throughout the Americas.

Mowatt joined WhiteWater in 1995, and his new responsibilities include client development and retention as well as implementing a new key account program called Partners in Performance.

Legal

Joy Ren Joy Ren has joined McCarthy Tétrault as an associate in the real property and planning group. Ren was previously with Boughton Law and Stikeman Elliott. Ren’s practice will cover a broad spectrum of commercial real estate matters.

Sean Foote Sean Foote has joined Harper Grey LLP as an associate in its health law and insurance law groups. Foote articled with Harper Grey and was called to the bar this year.

Rosemary John Anna Sekunova Shauna Towriss Rosemary John, Anna Sekunova and Shauna Towriss have joined the partnership of Clark Wilson LLP. John is a partner with the firm’s commercial lending group and handles a variety of transactions, including syndicated loans, commercial and residential mortgage-backed securitizations, bridge financings and restructurings, many of which are multijurisdictional. John is a solicitor of the Senior Courts of England and Wales and is admitted as a member of the Eastern Caribbean Supreme Court. Sekunova is a partner with the firm’s business litigation and infrastructure, construction and procurement groups; her experience includes resolving commercial lease disputes, real estate disputes, shareholder and director disputes, general contract issues, builders lien issues, construction delay and deficiency claims, bond claims and various other construction claims.

Sekunova is fluent in Russian and Ukrainian. Towriss is a partner with the firm’s commercial real estate, corporate and commercial, private company transactions and energy and natural resources groups. Towriss’ practice involves assisting clients in the areas of real estate acquisitions, dispositions and financing, and commercial real estate development, and assisting various private entities to raise equity through offering memoranda in limited partnership and trust structures for a variety of investment and development projects.

Manufacturing Ainsworth Lumber Co. Ltd. has elected its board of directors, who will remain in office until the next annual meeting of shareholders or until their successors are elected or appointed. Board members are Robert Chadwick, Paul Gagne, Peter Gordon, Paul Houston, John Lacey, Jim Lake, Gordon Lancaster and Pierre McNeil.

Resources John Albright, Paul Sparkes and Arthur Mesher, previously nominated to Benev Capital Inc.’s (BCI) board of directors by Difference Capital Financial Inc. (DCF), have resigned.

Their resignations follow DCF’s previously announced private sale of its 11,027,900 shares of BCI, which, according to DCF’s public filings, was completed on July 24, 2014. To the knowledge of BCI, DCF no longer holds any common shares of BCI.

Companies on the move New in town The family-run company of Mahony & Sons has opened its latest restaurant location and will be serving Irish pub fare at 601 Stamps Landing (at South False Creek) in Vancouver. During its opening phase, the restaurant will not be taking reservations and will be serving customers on a first-come, first-served basis. Call 604-876-0234 or visit mahonyandsons.com for more information.

Hats Off Business in Vancouver welcomes submissions from local small businesses and large corporations alike that demonstrate examples of corporate philanthropy and community involvement in the Vancouver area. Highresolution images are also welcome.

Scotiabank Bright Future donated $5,000 to the Jewish Federation of Greater Vancouver. The funds are in support of the annual Choices Gala, a part of the federation’s women’s philanthropy program.

Eton College donated $1,000 to Decoda Literacy Solutions to support community-based literacy and learning in British Columbia.

The National Bank Easter Seals charity regatta at the Royal Vancouver Yacht Club raised $159,000 for Vancouver Easter Seals House. The funds raised via the 21 boats participating will support the day-to-day operations of the house.

Variety – The Children’s Charity, the City of Langley and Scotiabank helped to purchase a new 24-passenger bus for the Boys and Girls Clubs of South Coast BC. Vancouver-based Japanese restaurants Minami and Miku, sister restaurants within Aburi Restaurants Canada, have donated more than $6,000 in support of BC Hospitality Foundation (BCHF) and its industry beneficiaries. For every reusable bottle of purified Vivreau water purchased at the restaurants, $1 is donated to BCHF in support of industry members during times of financial crisis due to a medical condition.

Kal Tire raises funds for the annual Kids Help Phone campaign, “Walk so Kids Can Talk.” A contribution of $12,383.44 is a combination of local Kal Tire team members’ efforts matched by the organization. It is part of Kal Tire’s culture to support the communities they operate in.

Bank of America Merrill Lynch donated $5,000 to Vancouver Police Foundation. The funds were used towards the Vancouver Police Department Student Challenge Program, an eight-day “Youth Police Academy” geared towards Grade 11 and 12 students interested in pursuing a career in law enforcement. •

for the record

BUSINESSVANCOUVER

August 26–September 1, 2014

23

trouble DISCIPLINE British Columbia Securities Commission David Michael Michaels, a former mutual fund salesperson and infomercial host, defrauded 484 clients – many of whom were seniors – of a total of $65 million, a British Columbia Securities Commission (BCSC) panel ruled August 12.

Between June 2007 and December 2010, Michaels fraudulently advised clients to purchase more than $65 million worth of exempt market securities. During this time, he was not registered as would be required for an adviser. Michaels collected $5.8 million in fees and commission for the sale of these securities.

Michaels conducted infomercials on Victoria’s CFAX 1070 radio in a regular weekly slot called “Creating Wealth with David Michaels.” On this show, which Michaels claimed had 20,000 listeners a week, he drew clients in to appointments in his office, as well as to investment seminars that he held in Victoria and Vancouver.

He then advised clients to sell their stocks, bonds and mutual funds and purchase high-risk exempt market securities instead, telling them to borrow against their homes. The BCSC said that in doing this, Michaels made misrepresentations to his clients, deceived them and betrayed their trust.

“Michaels preyed on clients by frightening them and misleading them into leaving the comparative safety of traditional capital markets for the far riskier part of the exempt market,” the BCSC panel stated in its ruling.

“As a consequence, his clients have suffered grievous deprivation, and he was greatly enriched.”

According to Michaels, the average age of his clients was 72. At least $40 million of the total investments is completely lost, said the BCSC. Sanctions against Michaels have yet to be set out.

WHO’S GETTING SUED These corporate writs were filed with the BC Supreme Court registry in Vancouver. Information is derived from notices of civil claim. Civil claims have yet to be proven in court.

Defendant Canada Dehua Drilling Ltd. 3577 W. 34th Ave., Vancouver Plaintiff Canadian Dehua International Mines Group Inc. 1411 – 409 Granville St., Vancouver

Claim $5,187,418 for debt.

Defendant Fresh Fin Sustainable Salmon Inc. 1800 – 1177 W. Hastings St., Vancouver Plaintiff West Maple Ridge Land Management Ltd. 20th floor, 250 Howe St., Vancouver Claim $271,477 for breach of lease.

Defendants Fairway Disposal & Demolition Ltd. and Ryan Weller and Shane Pedersen dba Waste Away Disposal 530 North Office Tower, Oakridge Centre, 650 W. 41st Ave., Vancouver, and 11560 Twigg Pl., Richmond Plaintiff Ecowaste Industries Ltd. 1600 – 925 W. Georgia St., Vancouver Claim $237,937 for debt.

Defendant Classic Gallery Framing Inc. 3rd floor, 1665 Ellis St., Kelowna Plaintiff Royal Bank of Canada 6880 Financial Dr., Tower 2, 2nd floor, Mississauga, Ont. Claim $133,173 for debt.

Defendant Arthon Belvedere Equipment Ltd. 200 – 537 Leon Ave., Kelowna Plaintiff Finning International Inc. 1000 – 840 Howe St., Vancouver Claim $103,782 for a wheel loader.

Defendant Keith Morrison dba Morrison Fire Protection 3 – 45695 Hocking Ave., Chilliwack Plaintiff Honeywell Ltd. dba Honeywell First Responder Products Address unavailable.

Claim $82,045 for fire and safety equipment.

Defendants 7338457 Canada Inc. dba Karma Nutritionals and Jennifer Walker dba Karma Nutritionals 207 – 27090 Gloucester Way, Langley, and 105 – 19100 Airport Way, Pitt Meadows Plaintiff RCBA Nutraceuticals LLC 1177 W. Hastings St., Vancouver Claim $66,041 for supplements.

Defendants 0811200 B.C. Ltd. dba Buy Rite #4 aka Buy Rite Foods #4 pka Buy Rite #7 aka Buy Rite Foods #7 and the said 0811200 B.C. Ltd. and Buy Rite #4 and Buy Rite Foods #4 and Buy Rite #7 and Buy Rite Foods #7 12605 67B Ave., Surrey Plaintiff Meadow Valley Meats Ltd. 8966 Nowell St., Chilliwack Claim $38,028 for meat products.

Defendants Best Choice Roofing Ltd. and Jaswant Singh Sohal 8750 154th St., Surrey, and 8746 August Dr., Surrey Plaintiff BCP Concrete Roof Tile ULC dba Columbia Roof Tile 8650 130th St., Surrey Claim $33,381 for roof tiles.

Defendants Dr. Lawrence Lai and Dr. Lawrence Lai Inc. and Sonata No. VIII Holdings Inc. 2438 W. 41st Ave., Vancouver, and 9906 180A St., Surrey Plaintiff Al Heaps & Associates Inc. 2525 – 1075 W. Georgia St., Vancouver Claim $30,031 for a real estate commission shortfall.

Defendants The Owners Strata Plan VR 1047 and Baywest Management Corp. and Arbutus Roofing & Drains (2006) Ltd. 1040 Pacific St., Vancouver Plaintiffs Yener Ciprut and Leslie Lassalle 808 – 1040 Pacific St., Vancouver Claim Damages for faulty construction work.

Defendants Jakhmee Sher Development Ltd. and Glenn Niemela 6651 Ross St., Vancouver, and 500 – 1199 W. Pender St., Vancouver Plaintiff 406326 B.C. Ltd. 2900 – 550 Burrard St., Vancouver Claim Declaratory relief that a real estate deposit is forfeited after failing to complete a real estate sale.

Defendants Rolls-Royce Corp. and Standard Aero Ltd. 251 E. Ohio St., Suite 500, Indianapolis, Ind., and 30 – 360 Main St., Winnipeg

Plaintiff Gordie Robert Parkes 400 – 856 Homer St., Vancouver Claim Damages related to a helicopter crash.

Defendants 973613 Alberta Ltd. and 11:11 Investments Inc. and James Hynes and Stacy Freudigmann and Karen Alexandra Freudigmann and Canenco Mines Ltd. 821 Silvertip Heights, Canmore, Alta., and 1177 – 100 Melville St., Vancouver, and 602 E. 4th St., North Vancouver Plaintiffs Marathon Capital LLC and Holden Mac LLC and Arch McGill in his personal capacity and Arch McGill and J. McGill as trustees of the A. & J. McGill Trust and Bernhard Ebner and Walter Richard Troisch and James Biermeier 1125 E. Mariola Way, Scottsdale, Ariz., and 27 Merlin Ave., Aliso Viejo, Calif., and 10216 E. Venao Trail, Scottsdale, Ariz., and 70 Route de Florissant, 1206, Geneva, Switzerland Claim Damages for breach of fiduciary duty and misrepresentations related to defendants misappropriation of plaintiffs’ investment funds.

Defendants Jiffy Software Inc. and 0958572 B.C. Ltd. dba Jiffy Software and Adam-Joshua Noel-Steeves aka A.J. Steeves and Earl Flormata and ABC Co. Ltd. and DEF Co. Ltd. 4720 Kingsway Ave., Metrotower II, Suite 2600, Burnaby, and 1500 – 1199 W. Hastings St., Vancouver, and 170 – 9133 Government St., Burnaby Plaintiff MyDify Inc. 2700 – 700 W. Georgia St., Vancouver Claim Damages for misrepresentation and unjust enrichment after defendants falsely billed plaintiff for work not performed under a mobile software development deal.

Defendants Rolls-Royce Corp. and Standard Aero Ltd. and Sikorsky Aircraft Corp. and Air Cruisers Co. Inc. and Floats & Fuel Cells Inc. and John Doe Corps.

1-5 251 E. Ohio St., Suite 500, Indianapolis, Ind., and 30th floor, 360 Main St., Winnipeg, Man., and One Corporate Center, Hartford, Conn., and 830 Bear Tavern Rd., West Trenton, N.J., and 1000 Ridgway Loop Rd., Suite 200, Memphis, Tenn.

Plaintiff Helijet International Inc. 3200 – 650 W. Georgia St., Vancouver Claim Damages related to the total loss of a helicopter.

Defendant Knife and Slice Café, a partnership 1443 Ellis St., Kelowna Plaintiff Kelowna Hot Yoga Studio Inc. 1100 – 999 W. Hastings St., Vancouver Claim Damages arising from a fire.

Defendant Rockson’s Plumbing & Heating Service Ltd. 3084 200th St., Langley Plaintiff Cyclone Holdings Ltd. 2400 – 200 Granville St., Vancouver Claim Damages related to a fire.

Defendants Sam Mabberley and Victoria Mabberley and Stockade Farms Ltd. and 591155 B.C. Ltd. and Robert McNeill and Richard Babcock and UWWR Holdings Corp. and Mavis Hope and 0823069 B.C. Ltd. and John and/or Jane Doe, personal representative of Joseph Mabberley, deceased 330 – 522 7th St., New Westminster, and 104 – 1080 Broughton St., Vancouver, and 3093 W. 3rd Ave., Vancouver, and 3334 Four Bentall Centre, Box 49116, 1055 Dunsmuir St., Vancouver Plaintiff Fraser Richmond Soil & Fibre Ltd. 1300 – 777 Dunsmuir St., Vancouver Claim Damages for breach of contract and misrepresentation after defendants, as part of a share purchase agreement, failed to disclose that their business didn’t have all the necessary permits to operate and that its lands were not in compliance with environmental regulations.

Defendant GP GreenPower Industries Inc. 1500 Royal Centre, 1055 W. Georgia St., Vancouver Plaintiff Zenith Quest International LLC 700 – 595 Burrard St., Vancouver Claim Damages for breach of contact after defendant failed to deliver buses under a purchase agreement and failed to return a $68,500 deposit.

Defendant Beach Grove Lumber Inc. 1429 Farrell Ave., Delta Plaintiff Dunkley Lumber Ltd. 900 – 900 Howe St., Vancouver Claim

$25,301 for lumber. •

24

BUSINESSVANCOUVER

August 26–September 1, 2014

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Deadline for Datebook listings is noon Tuesday for the following week’s paper. All submissions are subject to approval and cannot be guaranteed.

We reserve the right to edit for brevity and clarity. Please go to www.biv.com/ events/calendar to post your listing.

Questions may be directed to Carrie Schmidt at 604-688-2398, ext. 108.

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Breakfast Clio Meetup Vancouver Style

September 4 8:30 AM Who said there’s no such thing as a free breakfast? Calling all Vancouver legal professionals: join Jack Newton, Clio’s CEO, for a complimentary breakfast at the Fairmont Pacific Rim, and learn how Clio helps law firms save time and be more efficient. If that’s not enough, we’ll also be giving away some amazing prizes and you’ll have the opportunity to rub shoulders with the best and brightest in the Vancouver legal community. Space is limited, so register now. Fairmont Pacific Rim. 1038 Canada Place.

Vancouver. Daniela Szary. 888-8582546, ext. 638. daniela.szary@clio. com.

Conferences Zero Waste Conference 2014

September 16 7:30 AM Metro Vancouver invites you to its fourth annual Zero Waste Conference.

Businesses, governments and communities are stepping up and learning how to thrive in a rapidly changing, resource-constrained

world. On September 16, join leaders, emerging innovators and practitioners as we explore new product and systems design, new materials and new business models that are keeping pace with a new economic landscape – a landscape that is more circular than linear.

Featuring keynote speakers Jeremy Rifkin, Tim Brooks (senior director, environmental sustainability, Lego) and Markus Laubscher (program manager, circular economy, Philips).

More details at www.metrovancouver. org/zwc. Vancouver Convention Centre. East 999 Canada Place .

Vancouver. Metro Vancouver. 604423-6200. icentre@metrovancouver. org.

Volunteer BC – Volunteer Futures Conference 2014

September 25–26 Volunteer BC will host two days of workshops, panel discussions and networking sessions during this annual training event for the voluntary sector and non-profit organizations. This year’s conference theme is “Changing the Conversation.” Make connections and learn from other non-profit leaders. More details available online at volunteerfutures.org. Executive Airport Plaza Hotel. 7311 Westminster Highway. Richmond. L. Hart. volunteerbc@gmail.com.

Courses, Workshops, Seminars Take the Money and Run: Free, Three-Week Business Plan Working Session

September 10 5 PM You are 18 to 39 years old and dead-serious about getting your startup business off the ground or taking it to the next level.

If you have either recently launched or are ready to launch your business within three months, and are looking for some money to get started, as well as two years of mentorship after you launch, you should be here. Join Futurpreneur’s expert entrepreneurin-residence and other like-minded young futurpreneurs to learn how to optimize your business idea, work through your business plan, ask questions and get answers. There will be three two-hour sessions over a three-week period. Each session will consist of 30 minutes of networking with other entrepreneurs, strategic planning breakout sessions and action plan development for each week. This group is limited to 10 people. Registration required.

Futurpreneur BC. 425 Carrall Street.

Suite 580. Vancouver. Humaira Hamid. 604-598-2923. hhamid@ futurpreneur.ca.

Wednesday, September 10 Take the Money and Run: Free, Three-Week Business Plan Work Session If you are about to launch your business, learn how to ask questions and get answers via Futurpreneur BC

Exit Strategies for Owners, Founders and Investors

September 16 7:30 AM This full-day workshop is primarily designed for owners, founders and investors in growing tech companies.

Newer investors or entrepreneurs are also encouraged to attend as well as those more experienced wanting a refresher on selling growth technology firms. Led by Basil Peters, M&A adviser and author of Early Exits. More info at bit.ly/ExitStrat. SFU Harbour Centre. 515 West Hastings Street. Vancouver. Bob ChaworthMusters. bob@angelforum.org.

Fundraisers The Arthritis Society’s Ninth Annual Bluebird Gala

September 26 7 PM Let the sunset be your backdrop as you join us for our ninth annual Bluebird Gala at the Boathouse on Kitsilano Beach. Spend the evening with us in this dazzling spot nestled between sea and sky. Enjoy yourself as Dawn Chubai of City TV emcees this exciting evening where we celebrate our wonderful community and come together to support a meaningful cause. With live music, a silent auction and exceptional food and drink, this will be a night to remember with your friends, colleagues and loved ones. This very special cocktail reception will be the quintessential West Coast evening inspired by the surroundings, the cuisine and the wonderful people that help make the organization what it is today. “Individually we are just one drop. Together we are an ocean” (Ryunosuke Satoro). The Boathouse Restaurant. Kitsilano Beach.

1305 Arbutus Street. Vancouver.

Madeleine Tattersall. 604-714-5558. mtattersall@arthritis.ca.

Tuesday, September 16 Zero Waste Conference 2014

Metro Vancouver’s fourth annual conference exploring new products, system design and materials within a new economic landscape, at the Vancouver Convention Centre

Golf Tournaments Abbotsford Chamber of Commerce 27th Annual Golf Tournament

September 5 11 AM Come out for a great day of golf and networking fun. The Abbotsford Chamber of Commerce’s 27th annual golf tournament is a fantastic opportunity for your business to be a part of Abbotsford’s premier golf tournament. This tournament is a terrific way to meet the men and women of our business community.

Registration includes 18 holes of golf, shared power carts, patio lunch, buffet dinner, on-course contests, hole-in-one prize, live auction and raffle prizes. Ledgeview Golf & Country Club. 35997 McKee Road.

Abbotsford. Carole Jorgensen.

604-859-9651, ext. 304. events@ abbotsfordchamber.com.

MS Golf Challenge

September 8 6 AM Join us at the 18th annual MS Golf Challenge at the Northview Golf and Country Club, home of the most exciting and challenging golf courses in British Columbia. The MS Golf Challenge is a unique and prestigious event that raises funds to support multiple sclerosis (MS) research and vital services for people living with MS. Golfers are treated to a VIP experience while golfing to support a great cause. Northview Golf and Country Club. 6857 168th Street.

Surrey. Stephanie Mosher. 604-6023208. stephanie.mosher@mssociety. ca.

Hong Kong Canada Business Association (HKCBA) 2014 Golf Classic

September 8 10:30 AM The 12th annual HKCBA Golf Classic, presented by Cathay Pacific, is a full-day tournament that provides opportunities for networking and connecting with colleagues and peers in the Asia-Canada business community. Individual registration (includes lunch and dinner) starts at $315. Register online at hkcbavancouver.roundtablelive.org/ widget/event-899213. Richmond Country Club. 9100 Steveston Highway. Richmond.

Trade shows SOHO SME Business Expo

October 30 8 AM Join thousands of business owners, entrepreneurs and marketing executives who will inspire, motivate and drive your business success. You can expect featured keynotes, panel sessions, interactive exhibits and displays, a free coach’s corner, business skills competitions, live demos, Startup Alley great networking, prizes and more. Free keynote panels include industry experts and thought leaders on sales, marketing, finance and technology. Don’t miss the featured keynote, Meredith Powell, co-founder of The Next Big Thing foundation, and other amazing game-changing entrepreneurs.

Register now or become an exhibitor at www.vancouversme.soho.ca. Enter promo code “BIV” and get free allday access, plus save $20 to attend the SOHO SME after-party. This event is not to be missed. Sheraton Wall Centre. North Tower. Pavilion Ballroom. 1088 Burrard Street.

Vancouver. •

Every Day is an Opportunity Business and Tax Strategies for Private and Public Companies

BUSINESSVANCOUVER

August 26–September 1, 2014

Editorial

President/Publisher | Paul Harris, 604-608-5156 editor-in-chief | Fiona Anderson, 604-608-5183 Managing editor | Timothy Renshaw, 604-608-5131 Deputy Managing editor | Mark Falkenberg, 604-608-5174 Business in Vancouver is owned by Glacier Media Inc., 102 East Fourth Avenue, Vancouver, B.C. V5T 1G2

E-China opportunities abound for B.C.

L

umber is one way to build better export opportunities for B.C. in the Far East.

But the diversified export market future lies elsewhere. Especially if B.C. is to graduate from its hewer-of-wood and drawer-of-water status.

Victoria’s recent cheerleading release over a memorandum of understanding reached with China to increase wood-frame construction

the real potential growth in exports to China is in the digital realm is potentially good news for B.C.’s forestry sector, which the provincial government pointed out exported a record $1.4 billion worth of lumber to China in 2013, up from $1.1 billon the year previous.

But the real potential growth in exports to China is in the digital realm – specifically Internet business.

According to “China’s digital transformation: The Internet’s impact on productivity and growth,” a recent McKinsey Global Institute

25

last laugh

report, China is in the midst of a digital revolution that will have a huge impact on the country’s business operations and productivity as its Internet evolves from being consumer-focused to permeating workplaces and company operations.

As with most trends in China, the quantities are significant.

According to the McKinsey report, the number of active mobile devices in the country grew to 700 million from 300 million in 2013 alone and e-commerce marketplaces Taobao and Tmall posted US$6 billion in sales in just 24 hours during the year’s Singles Day, China’s equivalent of Cyber Monday.

McKinsey estimates that, depending on the speed at which industry adopts the Internet as a sales and business tool, it could add “0.3 to 1.0 percentage points to China’s GDP growth rate from 2013 to 2025.”

Innovation and digital savvy are going to win the day in the new world of e-business. B.C., with its burgeoning video game and digital technology sectors, its Pacific Rim location and strong Asian cultural ties, is strategically placed to tap Asia’s huge potential growth and business opportunities sparked by that region’s inevitable embrace of Internet-based business tools.

Work on targeting those opportunities needs to start now.

Middle-of-road way to right Arbutus corridor right-of-way ruckus

At Large Peter Ladner

H

ow do you untangle the train wreck of the Arbutus corridor rail line dust-up? Ever since CP made good on its promise to clear the 11-kilometre right-of-way for unknown transportation purposes, this decades-old disagreement between CP and the City of Vancouver is more off the rails than ever.

Do you get it back on track by siding with the property owner or elite squatters? Tender vegetables or banging backhoes?

Green mayor with a bicycle or big-dog CEO with a train?

City hall or bullying railroad?

Stranded shareholders or bullying city hall? Kerrisdale crème

or “anybody but”? CP shareholders enjoying a 430% share price increase over five years or “anybody but”? Fair offers or ridiculous offers? NPA business sense or NPA flip-flop?

Vision business sense or Vision fumble? Whew.

The ultimate outcome of this dispute will be city ownership of the corridor, at least until its future development is determined. CP will end up selling to the city. Consider that given.

Who else wants land locked up for transportation use?

The challenge, of course, is deciding on a price, which means determining who gets the uplift from the inevitable future upzoning at various points along the line: city taxpayers, CP shareholders or both?

The recent hissy fit by CP, sending in backhoes to uproot community gardens for no real purpose a few weeks before harvest and a few months before the November elections, is only the latest episode in years of bad blood between CP and the city.

what’s your opinion?

CP feels bullied by the city’s dogged legal protection of the corridor’s transportation status – the better to drive down the value of the property, they say. (The day the 2006 Supreme Court of Canada decision came down in the city’s favour, CP development staff were awaiting the verdict at the city hall permit department, lined up with their plans for development.)

There are senior staff at city hall who still believe the city can get the line for nothing. That faint hope is backed up by CP’s refusal to risk invoking discontinuing the rail line under the Canada Transportation Act. I’m told they fear that the federal agency that steps in when a government and railway line can’t agree might set a “net salvage value” of zero. That would make the city’s $20 million offer look generous.

On the other side, the standard “over the fence” expropriation process that’s used in other cases where a government takes

over land, is based on the adjacent zoning. In this case that means mostly single-family residential, with some commercial. If the city paid RS-1 prices for the 45-acre corridor, set some land aside for parks and a greenway bike route, ditched the train line and infilled with single-family lots, it’s worth north of $500 million.

Amazingly, there is a middleground plan that has been all but forgotten. In 2005, CP hired the highly respected outgoing sustainability director of the city, Mark Holland, and pledged to live with whatever he and a group of blue-chip planners, sustainability experts and neighbours came up with.

The city, then as now, refused to participate. (At the time – I was on council – the city was rightfully preoccupied with the Olympic Village and Canada Line.)

Holland remembers that it was the community partners, representing every neighbourhood association along the route, who

came up with the idea of combining the city’s low-value adjacent roads and rights-of-way with CP’s low-value transportation corridor to create a highvalue, vibrant, mixed-use plan.

“Our plan had a two-way rail line, a bike lane, community gardens, linear parks, an aboriginal interpretive centre in Marpole and 12 development nodes with three-storey mixed residential and retail,” Holland recalled. “The net value in 2005, after costing out public amenities [excluding rail service], was between $200 million and $300 million. Every community association signed off on it.”

At the time, CP wanted $150 million. Now they’re said to be asking $100 million.

The plan still exists. • Peter Ladner (pladner@biv.com) is a co-founder of Business in Vancouver.

He is a former Vancouver city councillor and former fellow at the SFU Centre for Dialogue. He is the author of The Urban Food Revolution.

| BIV welcomes readers’ opinions. All letters, including those sent by email, must include the author’s name, address and daytime telephone number. Business in Vancouver, 102 East 4th Avenue, Vancouver, B.C. V5T 1G2. Email: news@biv.com. We reserve the right to edit for brevity, clarity and legality.

26

BUSINESSVANCOUVER

August 26–September 1, 2014

Opinion August remains a deadly month in the war and plunder business

None of My Business Trevor Lautens

But for that general’s surrender … our economy, a 10th of the American, might have become far richer. No trade disputes, no loonie at a premium or a discount

L

et us now praise heroic soldiers. When better? Poet T.S. Eliot, best known for inspiring the musical Cats, called April the cruellest month. Wrong; that’s August.

Currently: Gaza. Ukraine.

Syria. Iraq. Pakistan. And more.

It was in August that the war that didn’t end all wars began

100 years ago. It missed by a few days being the start of the second chapter of that war, 75 years ago, but its inevitability lay in the German-Soviet nonaggression pact on August 24.

It was the month of atombombing Hiroshima and Nagasaki 69 years ago, which hard-eyed realists know was better than the alternative: when Japan’s surrender August 15 spared the Allies and Japanese civilians from the meat grinder of invasion, 20-year-old infantryman Paul Fussell, already badly injured in France and an outstanding future scholar, wrote that “for all the practised phlegm of our tough facades we broke down and cried with relief and joy.”

Later he scorned both the armchair pietists calling the bombings a war crime, and war’s romanticizers – “the sentimental, the loony patriot, the ignorant and the bloodthirsty.”

Would he have praised a supposed coward whose personal day of infamy occurred in an August two centuries earlier?

Wait, business angle! But

for that general’s surrender, today we might live under the 59 or more stars of Old Glory.

Our business big fish would be a 10th of their size in a bigger pond. Our economy, a 10th of the American, might have become far richer. No trade disputes, no loonie at a premium or a discount – helping or hurting some interests either way. No Quebec separatists? Maybe.

But the battlefield heroes of what has been called “the last just war” shouldn’t be ignored.

Are they, a bit?

There’s been recent breastswelling about Canada’s coming of age in the 1914 war, and breast-beating about internment of ethnic Japanese in the 1939 one.

Do I detect leftist unease about Ernest Alvia “Smokey” Smith, New Westminster-born Victoria Cross winner, for his reckless pluck in the Italian campaign?

He was the sort who wins wars, or else. Today Pte. Smith of the Seaforth Highlanders would be flagrantly politically incorrect, so-called.

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That’s what you’re paid for.”

Vancouver-born C.C.I. Merritt was cut from different cloth. He won his Victoria Cross audaciously commanding the South Saskatchewan Regiment in the disastrous 1942 Dieppe raid (August again!). A lawyer and later Progressive Conservative MP. Now that third soldier, Gen. William Hull. Hardly a conventional hero. Yet – fascinated since boyhood by the War of 1812, when the U.S. invaded Canada expecting quick victory – in maturity I unconventionally admire him. The oft-told story is excellently related in my late editor Bruce Hutchison’s 1955 book The Struggle for the Border, re-released by Oxford University Press in 2012.

Hull was the American commander at Fort Detroit. He had

fought commendably in the American Revolution. But now he was 57. His responsibility for the fort’s soldiers and civilians weighed heavily. Especially he feared the Indians.

British Gen. Isaac Brock shrewdly informed him that “the numerous body of Indians who have attached themselves to my troops will be beyond my control the moment the contest commences.”

Hull pictured his daughter and granddaughter scalped. Yes, the word and the fact have been banished from today’s ideology-laundered lexicon.

Hull surrendered without a fight. He was convicted of cowardice, and only presidential pardon saved him from being shot. And those whose lives he saved reviled him.

But if only every military commander – every one – copied Hull, the compassionate coward.

The date of Hull’s surrender?

August 16, 1812. • Trevor Lautens writes biweekly for Business in Vancouver.

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BUSINESSVANCOUVER

August 26–September 1, 2014

Life Lessons

27

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year and a half ago, Karl Pringle had just moved from Washington, D.C., to Vancouver when he was tapped to set up a North American subsidiary of Basis Technologies, a business-to-business technology company based in the United Kingdom.

While he was initially asked which U.S. city he’d like to work from, Pringle argued successfully that the new office should be based in Vancouver. The Vancouver office now has six employees and plans to hire more people.

Being the far-flung subsidiary of a larger company has not come without challenges. Pringle said open communication with the parent company and being ready to speak up if something isn’t translating well have been key to keeping things on track.

“The problems arise in that you’ve got cultural differences between North America and the U.K.,” Pringle said.

“You have to fight for your right because they have this view of how things should be done, and that doesn’t always correspond to what gets done in North America.”

For instance, Vancouver staff had to lobby the parent company to change language on its website that described a technical problem many customers face, but used terminology common in Europe.

“You need to understand your customers … and you can’t be relying on a marketing team thousands of miles away to do it for you,” Pringle said.

One way the Vancouver office has stayed connected to the larger company is by taking the lead on a company-wide project.

“You can very much be seen just as a colony, just as a pebble out there on the ocean,” he said.

“That’s where the fight for your right to participate in the wider company comes into play.”

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August 26–September 1, 2014

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