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North of 49th North Growth Management Ltd. CEO Rudy North on your best bets for investing in 2011 3
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YOUR WEEKLY SOURCE OF REGIONAL BUSINESS INTELLIGENCE SINCE 1989 Local. Business. Intelligence. October 11–17, 2011 • Issue 1146
Wind behind Surrey company’s growing turbine sales 3
Red flags over red tape
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n this second instalment of a three-part series, Business in Vancouver examines the additional layers of bureaucracy that will accompany Metro Vancouver’s recently adopted Regional Growth Strategy and the complications that Maureen Enser, Urban Development Institute executive director, and other business leaders see in it. The series’ first instalment examined how the plan could promote development via transportation and transit links (see “Banking on transit’s power to drive growth” – issue 1145; October 4-10). In next week’s BIV, instalment 3 will look at the impact on business from the Lower Mainland’s shrinking industrial land base.
Retailers down on daily digital deals Jalil Asaria and Dave Haboosheh RETAILnew Metro Vancouver driving taxi advertising vehicle 12
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Glacier Media launches real estate website 14 How to narrow our housing affordability gap 40
Boundary tiff stalls flight plan Catherine Warren
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Lynda Barr, director, Dianes Lingerie: doesn’t offer mass discounts to the lingerie retailer thinks such marketing Positive altitude: Alpha Aviation has through investeddaily moredeal thansites $24because million inshe Boundary Bay Airport since it tooklist control of the operation in 2004 ploys would diminish the store’s specialized, service-oriented brand Biggest interior
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>HostSubscriber of new websites details offering subscribers huge discounts at stores and other businesses >But merchants complain that the daily deal craze has Business in Vancouver Issue 1146 few long-term benefi ts for Vancouver’s 7 71114 retail 78312 sector 6 42 PM40069240 R8876 Return undeliverable Canadian addresses to Circulation Department: 102 East 4th Avenue, Vancouver, B.C. v5t 1g2.
Boundary Bay battling By Curt Cherewayko past as it looks to expand
ByAJoel McKay critical mass of consumers taking up
the offer is usually required for the offer to spectre from Boundary Bay Airport’s be completed. troubled past has re-emerged, a Like all businesses that sign upcreating to deliver potential threat to its bottom line. offers on such sites, Townsend’s favourite Seven years ago, Aviation entered restaurant hopes its Alpha discount offer will draw into a long-term lease with the Corp. of Delta a flood of new clientele. to operate theoff, airport. “At 50% they’re not making any Since then, the company built counta new money,” said Townsend, “sohas they’re terminal at Boundary Bay, updated its heriting like blazes that somebody is going to age hangar improved local infrastruccome back aand second time and cover off that ture to help existing businesses and attract loss.” new ones. But because Townsend’s a regular patron Butfavourite in July, the airport’s former leaseholdat her restaurant, she’ll continue to er, Boundary BayorAirport filed suit patronize it with withoutCorp., the discount. against Alpha in B.C. Supreme Court seeking2 see Groupon,
S>The airport’s former leaseholder A
haron Townsend points to her own use of “daily deal” websites to question just how beneficial their proliferation is to Vanhas filed a lawsuit against Alpha couver retailers. The South Granville Business ImproveAviation seeking $950,000, but ment Association executive director bought Alpha and Corporation of Delta a 50%-off mealthe coupon to her favourite Vansay they’re focused on building couver restaurant a few weeks back from one ofindustrial the city’s nearly dozenfor daily sites. capacity thedeal future Each site follows a similar model: it sends its subscriber base a daily deal, which usually includes discounts on goods or services that range between 30% and 90% at a particular store.
design firms in Metro Vancouver $950,000 for an alleged breach of the C10 lease
purchase agreement. Subscriber details The suit, filed on behalf of a numbered company, claimed Alpha owed the former leaseholder $500,000 for a lease extension with Delta. It further alleged that Alpha aviation should pay the former leaseholder another $450,000 for an additional 10 acres of commercial development space Alpha took over since the original 2004 agreement was signed. But Alpha general manager Greg Fong Business in Vancouver isn’t worried about the suit, Issue even 1107 though his company7 has yet to78312 generate6 profit 71114 02 at the PM40069240 R8876 airport. RETURN UNDELIVERABLE CANADIAN ADDRESSES TO CIRCULATION see B.C. Upgrades, DEPARTMENT: 102 EAST 4TH AVENUE, VANCOUVER, V5T 1G2. 5
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October 11–17, 2011 Business in Vancouver
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Wind powers company growth Surrey’s Endurance expanding turbine production to meet rising demand in the U.S.A. and Europe the technology for Endurance’s 50-kW turbine at Quebec’s Energie PGE Inc. The 50-kW turbine, which sells for approximately $300,000, can power up to 20 average-size homes. Hanson said Endurance has more than 70 of its 50-kW and more than 100 of its five-kW turbines installed worldwide. Under the company’s new par tnership w it h t he TsleilWaututh Nation, the band has a $2 million equity stake in Endurance. For that investment, the band’s TWN Wind Power Inc. will become the distributor for
By Krisendra Bisetty
mall-scale turbine manufacturer Endurance Wind Power is gearing up to take advantage of growing demand for renewable energ y options in North America and Europe. In five years, the employeeowned Surrey-based company has enjoyed encouraging sales of its five-kilowatt (kW) and 50-kW turbines, particularly in the U.S., and is now looking to broaden its horizons to Europe, where it’s considering setting up a second manufacturing plant. Endurance has also formed a unique partnership with a local aboriginal business that will market its products to First Nations and indigenous groups across North America. A winning trifecta of good wind resources, high electricity costs and generous government incentives in the U.S. and the U.K. is paying off for the 60-employee company, and Brian Hanson, its sales and marketing co-ordinator, says there are still other global jurisdictions to explore. To meet soaring demand, the Surrey facility has ramped up production and is operating at full capacity. Endurance was founded by a couple of business experts along with two engineers who have more than 20 years’ experience in the industry. Initially the engineers, David Laino and Dean Davis, had done testing for the U.S. National Renewable Energy Lab (NREL) in Golden, Colorado, and the Department of Energy, which gave them a grant to try take the concepts of a utility-scale turbine and modify it for residential use. “So that’s how they came up with now what is our five-kilowatt S-343,” said Hanson.
Under the company’s new partnership with the TsleilWaututh Nation, the band has a $2 million equity Krisendra Bisetty
stake in Endurance
Endurance Wind Power’s Brian Hanson: “we’re also looking at some new markets in Europe and some other potential markets worldwide”
The turbine, which is designed for private residences, sma ll farms and wind power demonstration/training applications, can produce between 10,000 and 20,000 kWh per year. A five-kWh turbine, which costs around $40,000 installed, provides enough electricity, in the right wind conditions, to power an average-size home. W he n t he e n g i ne e r s d e veloped the product, they were put in touch with Glenn Johnson, a successful entrepreneur who had also founded Comsource Broadband Technologies Corp. Johnson had built Comsource into a top communications distributor in Canada in just six years, amassing close
to $70 million in sales and $6.2 million in earnings. Johnson is Endurance’s president and CEO. He’s also a former BIV Forty under 40 award recipient who has owned successful businesses in real estate and development and the hospitality industry. In 2001, he founded Glace Capital Corp., a merchant bank and private equity investment firm that specializes in the investment and restructuring of established companies with compelling growth opportunities. Laino, Davis and Johnson partnered with BTI Wind Energy for U.S. distribution. About a year later, while they were looking to develop and extend the product line, they found
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Endurance’s five-kW and 50-kW wind turbines in North American indigenous communities. Endurance also said in April that its 50-kW turbines would be distributed by Evance Wind Turbines’ distribution channels across Europe, including Spain, Por tuga l, Denmark, Fra nce, Greece, Germany and the U.K.. Ac c ord i n g t o t he Wor ld Wi nd E ner g y Re p or t , Eu rope accounted for 27.3% of new wind global capacity installed in 2009. Spain now gets 15% of its electricity from wind energy; 26% of Denmark’s power comes from wind, and Robert Hornung, president of the Canadian Wind Energy Association, said at the association’s annual conference in Vancouver last week that Denmark plans to increase that to 38% by 2021. • email@example.com
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Daily business news at www.biv.com October 11–17, 2011
Undoing B.C.’s wind energy deficit Proponents aiming to push renewable power source to meet 17% of province’s needs by 2025 By Krisendra Bisetty
’s nascent wind energy industry is waiting for government policy directions and BC Hydro purchasing plans to jumpstart its pursuit of equalling and exceeding other Canadian and global jurisdictions in developing the renewable energy source. The industry, seemingly
dismayed that B.C. is lagging behind the rest of the country in wind energy generation despite being better suited than other regions for its strategic development, has set ambitious targets that it says would enable the province to meet 17% of its electricity requirements from wind by 2025 – up from just under 1% today. The strategy calls on the B.C. government to install
5,250 megawatts of “cost-competitive, low impact” wind power capacity by 2025. Achieving that target would result in an estimated $16 billion investment in the province, Robert Hornung, president of the Canadian Wind Energy Association (CanWEA), said at the association’s annual conference and exhibition, which ended last Thursday in Vancouver.
B.C. currently has just two operating wind farms: •the 144-megawatt Dokie wind project near Chetwynd in the Peace River region; and •the 102-megawatt Bear Mountain wind park near Dawson Creek. Vancouver has one wind energy facility: the 1.5-megawatt Eye of the Wind turbine atop Grouse Mountain.
The three projects place B.C. in sixth place among Canada’s 10 provinces in installed wind energy capacity, but just under half of the power BC Hydro bought in its 2008 call for tenders will be sourced from wind turbines to be installed at six new projects. They will increase B.C.’s installed wind energy capacity to 784 megawatts by 2014, but Hornung reckons that’s barely scratching the surface of the province’s wind energy potential. He pointed out that other jurisdictions in Canada are far ahead of B.C. in wind energy development. “Ontario is targeting 7,500 megawatts of wind by 2018. Quebec is on track to install 4,000 megawatts by 2015. Alberta is working to build new transmission capacity that, if completed, will allow more than 3,000 megawatts of wind energy projects to connect to the grid.” If B.C. ups the ante, Hornung said thousands of jobs and billions of dollars of new investment would flow into the province. “Implementing our plan would generate an estimated 22,500 person-years of employment during construction and an additional 7,500 person-years of employment over the 20 to 25 year operating lifespan of these projects.” He added that manufacturing wind turbine components and developing local expertise in skills connected with wind farm construction and maintenance would create additional economic and employment benefits. Hornung conceded that building more than 5,000 megawatts of new wind energy capacity in B.C. over the next 15 years is an ambitious goal. But he said it’s feasible.
What’s holding B.C. back, he said, is the province’s huge hydro energy resource, the best of which remain far more competitive in the marketplace than wind. For the industry to really take off in B.C., Hornung said major changes are needed. “BC Hydro’s competitive tendering processes are technically challenging and expensive. Preparing tenders is costly and a lack of transparency on the timing and frequency of calls of power and the evaluation of bids unnecessarily increases those costs.” Hornung said B.C. needs a procurement process that brings certainty to the market. “That means regular calls for power or reforming B.C.’s standing offer program to make it more viable for new projects. Long-term policy clarity and policy certainty will decrease costs and decrease risks and give developers the confidence they need
“Implementing our plan would generate an estimated 22,500 personyears of employment during construction” – Robert Hornung, president, CanWEA
to invest in this province.” He added that there are too few people working on approvals and permits to handle the interest in new wind energy development in B.C. Industry consultant Steve Davis, of Steve Davis & Associates Ltd., told BIV that a report he had prepared for CanWEA highlighted a “huge surge” of new industrial load in B.C., particularly from potential liquefied natural gas (LNG) terminals and new mines in the province’s north. • firstname.lastname@example.org
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October 11–17, 2011 Business in Vancouver
Upgrades: $3 million invested WHAT GOES UP MUST BRING COSTS DOWN No matter how high a building reaches, it’s the bottom line that’s most important. And with BC Hydro’s New Construction Program, developers can save even more money through energy-efficient buildings. Proven to be happier, healthier places to work and live, energy-efficient buildings also enjoy Alpha Aviation general manager Greg Fong: Boundary Bay Airport’s central location should attract a wide variety of industrial tenants
Delta Coun. Robert Campbell: the airport’s lease extension to 2099 helps it attract longterm tenants who otherwise would avoid the airport
enhanced marketability, higher asset value, and lower turnover. And we’ll be there from the start, helping with building design, system design and lighting design. We’ve
from Boundary, 1
water and sewer infrastructure for tenants. Delta Cou n. Rober t Campbell said the lease extension would help Alpha find long-term tenants that were having a hard time acquiring favourable leases from banks that knew Alpha’s operation lease was up in 2050. “We felt we were able to do that and extend that lease out to a point where Alpha could then say there’s some security for the bank,” said Campbell, who is also chairman of Delta’s Boundary Bay Airport Advisory Committee. Delta has also agreed to front-end the cost of water and sewer upgrades, a project expected to cost a “couple million dollars.” On top of that, Ottawa, the province, Delta and Port Metro Vancouver have partnered on a $20 million upgrade of the 80 Street Overpass. The project, which is part of the Roberts Bank Rail Corridor program, will improve access to the airport. Fong said the improvement would bypass railroad tracks where long freight trains have impeded road access to the airport. The project is expected to be complete next year, and Campbell believes it will help the airport market its industrial land, which can be developed for aviation and light industrial uses. “You look at how much industrial land there is in the Lower Mainland, there’s not a heck of a lot,” said Campbell, “and we believe … Boundary Bay is extremely important to the economic viability of the community.” Development at the airport is also good news for Delta. Thanks to major tenants such as Heli-One, BC Fresh and a host of flight schools, Boundary Bay now generates more than $1 million in tax revenue per year compared with $140,000 in 2004. •
be energy efficient, but economically efficient as well.
“We’re dealing with it, but we don’t anticipate it’s going to be a major problem,” said Fong. On September 8, Alpha filed a response to the notice of claim, arguing it doesn’t owe any money to the former leaseholder. According to court documents, Alpha furthered alleged that it incurred “massive costs and expenses” arising from the leaseholder’s failure to comply with the lease when it operated the airport. In addition to the lease purchase price, Alpha claimed it spent more than $3 million repairing and upgrading the airport. Since 2004, Fong said Alpha has invested more than $24 million at Boundary Bay. The former leaseholder’s lawyer could not be reached for comment, but Fong confirmed the suit is related to former Boundary Bay Airport Corp. president Isy Rogowski. In 2003, a B.C. Supreme Court judge awarded Delta full control of the airport after Rogowski failed to pay $1.4 million in property taxes. Fong wouldn’t comment further on the suit. Tenants at Boundary Bay Airport say although Alpha has yet to turn a profit, they’re happy with the airport since the company took over in 2004. “It’s brought some solidity to the operating environment out here,” said Pat Kennedy, COO of the Pacific Flying Club. In addition to significant upgrades at the airport, Alpha has also been working with Delta, Port Metro Vancouver and the local business community to attract new development. Delta council recently endorsed an extension of Alpha’s airport lease to 2099, along with a master-servicing plan that would improve
streamlined the application process and increased funding to help with initial cost barriers. So not only will your next project
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Daily business news at www.biv.com October 11–17, 2011
Rolling out more regional red tape Business leaders say Metro Vancouver’s Regional Growth Strategy adds a new layer of bureaucracy that will hamper development and other enterprise in the Lower Mainland, but plan proponents say it will help preserve the region’s dwindling inventory of industrial land
Maureen Enser, executive director or the Urban Development Institute: a new regional growth strategy will complicate things for developers
By Nelson Bennett
“It was a horrible compromise
by a bunch of people who sat
oquitlam Mayor Richard Stewart calls it “amalgamation by stealth.” Metro Vancouver’s new Regional Growth Strategy (RGS) adds a new layer of bureaucracy for developers in the region and grants the regional board new powers – powers Stewart feels uncomfortable wielding. “I get elected by the people of Coquitlam,” said Stewart. “I don’t get elected by the people of Tsawwassen, and I’m not sure that I should be making decisions in Tsawwassen. “This document takes us a step – a big step, some would argue – closer to a regional planning department, in that it puts a regional approval in place for changes that are associated with industrial land.” Of the 24 signatories, Coquitlam was the last to sign the RGS. Like all other participating municipalities, it now has two years to approve a regional statement that demonstrates how its local landuse policies will conform to the new regional plan. While the city did some RGS
around the table and traded off parochial interests against each other, and the governance structure was ignored” - Bob Ransford, urban design consultant, Counterpoint Communications
fine-tuning, Stewart still shares concerns the development community has expressed over a plan they fear will add a new layer of government for them to negotiate. The plan’s critics are unanimous in saying they believe in regional planning for things like transportation, housing and protecting industrial land. They just don’t like the plan that was adopted. It’s inflexible, they say, adds bureaucracy and fails to set housing targets, especially along transit corridors. “It was a horrible compromise by a bunch of people who sat around the table and traded off parochial interests against each other, and the governance structure was ignored,” said Bob Ransford, an urban design consultant with Counterpoint Communications Inc. The strategy poses no immediate concerns for developers. But the development community is worried what might happen five, 10 or 15 years from now, as the forces of supply and demand change against the backdrop of a 30-year plan that doesn’t change. “It basically freezes, in situ,
things that you’ve got today,” said Maureen Enser, executive director for the Urban Development Institute (UDI). “Now there’s a complicated process whereby, if you require a zoning and it’s not in today’s plan, you’re going to have to go to the regional board and get approval. When you’re looking, as an investor, at ease of doing business, that is a red flag.” “It’s added a level of bureaucracy – it really has,” said Kevin Layden, president and CEO of Wesbild Holdings Ltd., a residential and commercial developer. “It’s going to add costs. That’s counterintuitive to affordable housing, and the price of housing to begin with.” Developers envision the evolution of a whole new level of government with its own planning department. But Christina DeMarco, Metro Vancouver’s regional development division manager for policy and planning, disagrees that the plan freezes anything in place. The board can always vote to change the plan. She added that a new planning function for Metro Vancouver is not in the cards.
“We’re not forecasting any changes in the resources.” DeMarco pointed out that, now that the RGS has been approved, Metro Vancouver’s planning department will shrink to 6.5 planners in 2012 from the current eight. But Peter Kenward, a lawyer specializing in municipal law, doesn’t see how Metro Vancouver can avoid taking on more planning functions. “If they don’t have a planning department, they’re going to have a huge bottleneck,” he said, “and if they do, then there’s a significantly increased bureaucracy.” The RGS replaces the 1996 Livable Region Strategic Plan. Its proponents say it was needed because the old plan failed to protect industrial land – the most productive in terms of job creation – from constant erosion. The region lost 3,000 acres of industrial land between 1996 and 2005, as local city councils, bending to local lobbying, rezoned it for residential and commercial development, resulting in what DeMarco calls “job sprawl.” Good planning calls for office space to be concentrated in urban
October 11–17, 2011 Business in Vancouver
Another planning maze to navigate: RGS critics say the regional strategy is inflexible, adds more business-stifling bureaucracy and fails to set housing targets, especially along transit corridors
centres, but in places like Surrey and Richmond, DeMarco said only 10% of the new office space has been going into urban centres. The rest was going into outlying areas onto industrial land. Richmond city councillor Harold Steves – who sits on the Metro Vancouver board – lobbied to stop industrial land erosion by placing safeguards on it, similar to the way farmland is protected by the agricultural land reserve, which Steves helped create in the 1970s. Steves said it was business leaders in heavy industry, manufacturing and port activity that first pushed for the new safeguards. “The business community is
divided on the issue,” he said. Previously, local municipalities did the rezonings. Now, industrial land rezoning will also require a simple majority vote by the board of Metro Vancouver – a type 3 amendment. But getting that simple majority might not be so simple, especially when the region’s bigger cities have weighted votes. There are 125 votes on the Metro Vancouver board (though not all have a vote on the RGS). Vancouver holds 29 votes, Surrey 20, Burnaby 11, Richmond 9. “That means that Vancouver and Burnaby combine to have something close to a veto over all
Metro Vancouver by the numbers Geographically, Metro Vancouver is hemmed in by the sea to the west, mountains to the north, the U.S. border to the south and the agricultural land reserve to the east. That geographic area is further constrained by land designations. Two-thirds of Metro Vancouver’s 283,000-hectare land base is undevelopable – protected either as watershed, or for agricultural, conservation or recreational purposes. Only 10,400 hectares is designated for industrial use. Politically, Metro Vancouver is made up of an unelected board of directors representing 24 members: •12 cities; •five villages, townships and corporations; •three municipal districts; •two regional districts; •one electoral area; and •one First Nation (Tsawwassen). TransLink is not a Metro Vancouver board member, but as a signatory to the RGS it would vote on type 1 amendments, which are required when any of the plan’s fundamental goals are changed.
changes outside of the urban containment boundary in every other municipality, even though they themselves have almost no land outside of the urban containment boundary,” Kenward wrote in analysis of the RGS for the UDI, Business Council of BC and BC Chamber of Commerce. “They could, to a significant extent, be over-ruled by the representatives of Vancouver and Burnaby, even though their representatives were elected by people who do not even live in the areas in question.” Added Enser: “If, for some reason, you don’t have Vancouver or Surrey onside, your chances of success are greatly diminished. So you not only have to go around getting everyone’s votes, you have to get the right votes. Just that complicated process is enough to turn anyone’s hair grey.” DeMarco points out that the current voting structure has been in place since 2007. She concedes the RGS adds an extra layer of approval for some land use decisions. But without it, Metro Vancouver would continue to lose industrial land. “What we’re saying is it’s worth the red tape for a regional checkin, because the way things are going, every Monday night you lose a bit of industrial land,” she said. “And before you know it, the regional economy doesn’t have
enough land to support itself.” Stewart cites a rezoning that took place in Coquitlam several years ago as an example of what developers might expect in the future. The city rezoned industrial land to allow for the Boulevard Casino and a new hotel. (The hotel got deferred, and is only now back on the drawing board.) If that rezoning had to occur today, the developer would need the approval of both Coquitlam city council and Metro Vancouver. Burnaby and Richmond both have hotels connected with casinos – and the weighted votes to nix an application. “I’m not saying it’s ever going to happen,” Stewart said, “but it does raise the possibility that two or three larger municipalities say, ‘No, no, no – those hotels belong in our communities.’” Getting land out of the ALR or conservation zones will be even tougher than rezoning industrial land. That will require a public hearing and approval by two-thirds of the Metro Vancouver board. Changing the fundamental goals of the plan – a type 3 amendment – requires the approval by all affected local governments in the region. Since the RGS was adopted, Premier Christy Clark announced her government’s jobs agenda. The UDI argues that adding new layers of bureaucracy that could stifle investment runs counter to her plan.
“We say to the province, ‘We agree with your job strategy – this is an impediment to achieving its goal,’” Enser said. “The business community is saying to the provincial government, this strategy is flawed and it requires some level of provincial intervention here.” At the very least, the UDI wants a mandatory review of the plan in five year’s time. Currently, Metro Vancouver’s board has the option to review it in five years, but isn’t obliged to do so. As minister of Community, Sport and Cultural Development, Ida Chong is responsible for local government. She has met with business leaders to discuss their concerns, but has made no commitment to order a mandatory review. However, she said wants to ensure the RGS doesn’t run counter to her government’s job creation strategy and will ask for an update one year from now. “I think it’s important that if this RGS doesn’t fit within the plan and it doesn’t work, I think the local governments will see very quickly and will want to work with us – and I will want to work with them – to see what we can do in making sure that the RGS does not appear onerous, does not add those layers of bureaucracy and does not scare away investment.” • email@example.com @nbennett_biv
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Daily business news at www.biv.com October 11–17, 2011
PROFITS AND LOSSES
Losses are shown in brackets. Graph information by Stockwatch.
Pacific Insight Electronics Corp. (TSX:PIH)
Teck Resources Ltd. (TSX:TCK.B, NYSE:TCK)
New products increase revenue
Miner invests despite uncertain times
The Nelson B.C.-based manufacturer of electronic components posted a 12% revenue increase as a result of new product launches, expanded OEM production in the automotive and heavy truck markets and growth in new business. But higher manufacturing costs and a stronger Canadian dollar pushed down net earnings for the year. The company continues to control costs in light of economic uncertainty.
n Revenue n Profit/loss
Vancouver’s largest mining company by revenue plans to invest $210 million to increase capacity at its Trail operations and $475 million to modernize its 40-year-old mill at its Highland Valley Copper mine. While Teck posted strong second-quarter results from higher prices for its copper, coal and zinc, economic uncertainty has hammered its stock as copper prices have plummeted in recent weeks.
n Revenue n Profit/loss
Revenue: $32.8 million (2011) Net profit: $163,000 (2011) Earnings per share: 0.03 (2011)
25 20 15 10
Revenue: $5.2 billion (six months) Net profit: $1.27 billion (six months) Earnings per share: $1.88 (six months)
5 0 -5
A new web portal called investnorthwestbc.ca has been launched to promote investment in Northwest B.C. The site details more than $15 billion in major projects and investment opportunities, and gives investors access to up-todate information on dozens of major projects and helps connect them with private developers and community leaders. Tuesday, October 4
Full stories and other local business news at www.biv.com/businesstoday Daily business news direct to your inbox! Sign up at www.biv.com/newsletters
Trusts can be an effective piece of your business and personal tax plan
Unhappy franchisor sues Megabite Pizza
New web portal promotes Northern B.C.
Wednesday, October 5
daily online edition
Sandeep Mand and her STK Triple Holdings Ltd. are suing Megabite Pizza Ltd. for $195,000 plus other costs. Mand claims the 11-outlet pizza chain did not provide her with a franchise site that she could reasonably operate or equipment that worked.
anadian families looking for flexibility in tax and estate planning often set up trusts, but they can also benefit small-businesses owners. Under the right conditions, trusts can provide controlled distribution of an estate. Trusts have traditionally been viewed as planning tools for the rich, but are now much more accessible and rapidly gaining wider popularity. A trust is a legal relationship between three parties: •the person who sets up the trust is the settlor; •the person or group of people who have legal title over the property held in the trust are the trustees; and •t he pa r t ie s w ho w i l l benefit from the property held in the trust are the beneficiaries. Family trusts are generally set up as either testamentary or inter-vivos. Testa menta r y t r usts come into effect on the death of the settlor, and the trustee manages the
assets in accordance with the wishes of the deceased. Inter-vivos trusts are in effect during the settlor’s lifetime and are generally used to transfer assets to heirs over a period of time while retaining control. Inter-vivos trusts are generally taxed at the top marginal rate and testamentary trusts as individuals. Trusts can be structured so that assets are administered in a fashion most suitable to the beneficiaries. Families whose children are still dependent, either through age or disability, will establish trusts that ensure their children’s future financial needs are met. Likewise, those worried about the financial responsibility of their beneficiaries may establish trusts that ensure assets are not squandered. Trusts can a l low for some degree of protection from creditors. The assets held inside a trust are generally protected from claims of creditors against the settlor because beneficial
ownership of the assets has shifted to others. Trusts are even useful to protect assets from division of property issues in the event of marital breakdown. Many families enjoy the confidentiality that comes with trusts. Unlike wills, trusts are private documents and are not a matter of public record. Aside from regular tax returns, trusts are not required to disclose publicly either the assets held in the trust or the beneficiaries. As a tax-planning tool, inter-vivos trusts can be used to split income. Trust income distributed to beneficiaries is taxed in their hands at a lower marginal tax rate. Be particularly mindful of the kiddie tax, attribution rules and the 21-year deemed disposition rule. They can be complex and professional advice should be sought. Inter-vivos trusts may be revocable or irrevocable. Therefore, because family situations can fluctuate over time and you may want to
change your mind, all possible scenarios should be considered fully. Trusts can be used to reduce tax liabilities on death. Probate fees are minimized because the trust assets do not pass through a will on
Small-business owners can use family trusts to take advantage of the $750,000 lifetime capital-gain exemption on qualified small-business corporation shares death. Also, assets that are transferred to a trust effectively reduce the size of one’s individual estate, in turn reducing taxes. Small-business owners can use family trusts to t a k e a d v a nt a ge of t he $750,000 lifetime capital gain exemption on qualified small-business corporation shares upon the sale of
the shares of the company. When properly structured, it’s possible to multiply the exemption by the number of beneficiaries that make up the family trust. For instance, if the qualified small-business corporation is sold for $4.5 million and there are three beneficiaries in the trust, they will have tax-free capital gains (3 x $750,000). But trusts aren’t appropriate for everyone. Their structures can be complex, so it’s important to fully understand them before establishing one. Trusts used in tax planning must be set up and administered properly or tax benefits might be lost. Establishment and ongoing administration costs should be analyzed relative to your long-term goals. • Kim Inglis (www.reynoldsinglis.ca) is an investment adviser with Canaccord Wealth Management, a division of Canaccord Genuity Corp. The views in this column are solely those of the author.
October 11–17, 2011 Business in Vancouver
B.C. wages slide in july
Province posts steepest decline in country
▲0.1% ▼2.0% ▼1.5% ▲1.9% July wages (Canada)
July wages (B.C.)
July wages (Alberta)
July wages (Sask.)
Averge weekly earnings for non-farm payroll employees in B.C. fell 2.0% (seasonally adjusted) in July. Nationally, average weekly earnings inched ahead 0.1%, despite three provinces, B.C. (-2.0%), Alberta (-1.5%) and Quebec (-0.5%), reporting weaker earnings. Newfoundland and Labrador (2.1%) and Saskatchewan (1.9%) posted the largest increases.
B.C. life expectancy at birth reaches new high Life expectancy at birth in B.C. reached a new high of 81.4 years during the three-year period from 2006 to 2008, an increase of 0.2 years from 2005 to 2007. Life expectancy at birth in B.C. was the highest among the provinces. B.C. (81.4 years), Ontario (81.3 years) and Quebec (81.0 years) were the only provinces where life expectancy was above the national average. For B.C.’s seniors (aged 65 years and older), life expectancy edged higher to 20.5 years.
-BC Stats Infoline, Issue 11-39, September 30
B.C.’s sawmill production up in July Lumber production at B.C.’s sawmills rose 3.3% in July compared to the same month in the previous year. While the province’s Coastal millls saw output slip (-3.2%), this was more than offset by an increase at Interior mills (4.1%).
-BC Stats Infoline, Issue 11-39, September 30
B.C. restaurants see slight revenue gain in July B.C.’s food services and drinking places industry recorded a slight (0.4%; seasonally adjusted) gain in revenues in July. Restaurants and other food service establishments registered a moderate increase in business (0.5%), mitigated only slightly by a dip (0.4%) in revenues earned at drinking establishments.
-BC Stats Infoline, Issue 11-39, September 30
The following is a list of the largest stock trades made by corporate executives, directors and other company insiders of B.C.’s public companies filed by the week ending September 29. The information comes from a compilation of required reports filed with the BC Securities Commission within five calendar days of a change in an insider’s holdings. Insider: Jim Pattison, director Company: Canfor Inc. (TSX:CFP) Shares owned: 28,309,550 Trade date: September 21, 22, 23, 26 Trade total: $4,059,378 Trade: Purchase of 411,200 shares at prices ranging between $9.7495 to $9.9927 per share. Insider: Bradford Cooke, chairman and CEO Company: Endeavour Silver Corp. (TSX:EDR) Shares owned: 1,167,837 Trade date: September 23 Trade total: $799,600 Trade: Purchase of 80,000 shares at prices ranging between $9.97 and $10.02 per share.
Insider: Robert Gayton, director Company: Nevsun Resources Ltd. (TSX:NSU) Shares owned: 131,500 Trade date: September 21 Trade total: $325,600 Trade: Acquisition of 80,000 shares for $3.07 per share and 40,000 shares for $2 per share through the exercise of options. Insider: Gerard Munera, director Company: Nevsun Resources Ltd. (TSX:NSU) Shares owned: 502,618 Trade date: September 22 Trade total: $280,000 Trade: Acquisition of 42,618 shares for $6.57 per share through the exercise of rights. Insider: Paul Singer Company: TAG Oil Ltd. (TSX:TAO) Shares owned: 2,249,520 Trade date: September 22, 23 Trade total: $272,419 Trade: Acquisition of 24,000 shares for $6.7792 per share and $16,600 shares for $6.6095 per share through the exercise of options.
Insider: John Rothwell, president, Canaccord Wealth Management Company: Canaccord Financial Inc. (TSX:CF) Shares owned: 331,235 Trade date: September 7, 19, 26 Trade total: $250,000 Trade: Sale of 25,000 shares at $10 per share. Insider: John Tognetti, large shareholder Company: Mirasol Resources Ltd. (TSX-V:MRZ) Shares owned: 6,281,400 Trade date: September 22, 23, 26 Trade total: $208,808 Trade: Purchase of 56,900 shares at prices ranging between $3.4816 and $4 per share. Insider: Tomas Guerrero, director Company: Fortuna Silver Mines Inc. (TSX:FVI) Shares owned: 0 Trade date: September 1, 2 Trade total: $195,000 (net) Trade: Sale of 50,000 shares for $6.12 per share following the acquisition of 50,000 shares for $2.22 per share through the exercise of options.
Insider: Garth Johnson, CEO Company: TAG Oil Ltd. (TSX:TAO) Shares owned: 50,000 Trade date: September 13, 14, 15 Trade total: $188,605 (net) Trade: Sale of 35,400 shares at prices ranging between $7.30 and $7.34 per share prior to the acquisition of 50,000 shares for $1.40 per share through the exercise of options. Insider: David Hall, board chairman Company: Aurizon Mines Ltd. (TSX:ARZ) Shares owned: 990,342 Trade date: September 8, 9, 13, 14 Trade total: $187,790 Trade: Sale of 32,700 shares at prices ranging between $6.70 and $6.85 per share. Insider: Tench Coxe Page, vicepresident, exploration Company: Minefinders Corporation Ltd. (TSX:MFL) Shares owned: 479,212 Trade date: August 11, 17 Trade total: $185,760 Trade: Sale of 12,000 shares at prices ranging from US$14.72 to US$16.24 per share. • firstname.lastname@example.org
Early liquidity options RRSP/TFSA eligible
* Assumption based on forward looking projections based upon total projected average annual simple return for full 10 year holding period. See Offering Memorandum for further details. This document should not be construed as an offer to sell, nor a solicitation to buy any security. An offering is made only by private placement pursuant to a confidential Offering Memorandum issued by iFund 2011 Capital Corp. iFund does not provide investment advice on any investment. iFund 2011 Capital Corp also always recommends that every client seek professional financial advice prior to completing any investment.
Daily business news at www.biv.com October 11–17, 2011
Businesses applaud province’s plan to appoint municipal auditor general BCBC and other groups say a municipal AG would make local government spending more transparent and efficient dollars. He pointed out that municipalities are already looking for ways to get the best bang for their buck.
By Jenny Wagler
hile municipalities railed against the establishment of a municipal auditor general at the recent Union of BC Municipalities (UBCM) convention, B.C.’s business community supports the idea. “We have a strong interest in ensuring efficient use of public funds at all levels of government and lots of information and transparency around decisions that are made to raise taxes, raise revenue and then expend revenue,” said Jock Finlayson, executive vice-president and chief policy officer of the Business Council of BC. “[A municipal auditor general] is really in the spirit of enhancing that at the local level.” Establishing a municipal auditor general was one of Premier Christy Clark’s byelection campaign promises. The province plans to introduce legislation in the fall to establish the new role. It has stipulated that a municipal auditor general would conduct valuefor-money audits annually to: •review the economics of an activity; •measure effectiveness; and •identify best practices. The province has emphasized that a municipal auditor general would not: •make or overrule policy decisions of elected officials; •set or order changes to taxes; or •make binding recommendations or impose requirements. Finlayson said besides inc re a si ng s c r ut i ny on lo c a l governments, a municipal auditor genera l wou ld prov ide
“If one municipality is able to deal with waste management at half the cost of another, then it might be useful Burnaby Mayor Derek Corrigan: a municipal AG isn’t needed for cities to search out best practices: “we have absolutely no pride when it comes to getting better ways of doing things from another city”
John Winter, president and CEO of the BC Chamber of Commerce: high commercial-to-residential tax ratios mean businesses have much to lose when local governments overspend
benchmarking information on budgets and programs so that taxpayers can assess how their government’s decisions stack up. “If one municipality is able to deal with waste management at half the cost of another, then it might be useful to ask, ‘Why is that? What efficiencies have they achieved?’ Perhaps they’ve outsourced the service rather than providing it in-house.” John Winter, president and CEO of the BC Chamber of Commerce, said the presence of a municipal auditor general would encourage politicians to act more judiciously before raising taxes. “Many times we witness government saying, ‘We need this, we need that, so we’ll just add to the tax bill without going through a prioritization of some sort or creating the opportunity to review programs and eliminate some to pay for others that become priorities.’ When the
threat of an audit report is there, politicians are much more wary of doing things in a reckless way – not to say that they already are [doing so], but right now there is no safeguard.” Winter added that, for businesses, municipal taxation is a top concern, given that they face higher municipal tax rates than residents do. In extreme cases, that rate is seven or eight times higher. He added that because businesses don’t have a vote in municipal elections, it’s easier for local governments to increase their taxes rather than add to residential tax bills. “It’s easier if you need more money to assess it to the silent partner.” Burnaby mayor Derek Corrigan was one of the most vocal opponents to the municipal auditor general plan at the recent UBCM convention. He said local governments see it as a waste of provincial tax
to ask, ‘Why is that?” –Jock Finlayson, executive vice-president, Business Council of BC
“Municipalities get $0.08 out of every $1 of taxation, and we have to use it very, very carefully. So if there is another municipality doing something better, we will steal that idea immediately. We have absolutely no pride when it comes to getting better ways of doing things from another city.”
Corrigan added that a municipal auditor general would criticize municipalities after the fact rather than providing up-front advice. “That puts a municipality in a situation where they can’t un-ring that bell; they can’t change the project that has been completed.” But Ida Chong, minister of community, sport and cultural development, said a municipal auditor general will be a valuable resource for municipalities. “If you’re doi ng not h i ng wrong and you’re doing really well, you guys are going to get kudos. And if they find there’s something you can help save dollars on, wouldn’t you want to?” Chong has yet to state how much a municipal auditor general’s office will cost the province, but she estimated that it will employ six to 12 auditors. Chong sa id she hopes to see the first audits to start next spring or summer. • email@example.com
Province’s track record with AG The provincial government has responded to 74% of the recommendations made in performance or value-for-money auditor general audits since April 2009, according to an annual fall followup report. The report from the provincial auditor general’s office determined that of the 273 recommendations made since April 2009: •64% have been fully or substantially implemented; and •10% have been addressed through alternative action by the respective agency. The report assesses 13 areas of the work performed by the auditor general’s office, including: •Aspects of Financial Management (Management of Working Capital by Colleges and School Districts, Managing Fraud Risks in Government, Infrastructure Grants and Year-End Government Transfer Expenditures); •Audit of the Agricultural Land Commission; and •Upkeep of the Provincial Roads Network by the Ministry of Transportation and Infrastructure.
WHERE DO 55,000 FANS GET TOGETHER TO WATCH A GAME UNDER THE STARS? Get to know the new BC Place.
bcplace.com Follow us on Twitter at twitter.com/BCPlace2011
October 11–17, 2011 Business in Vancouver
Alan Zisman RIM’s new Bold move not quite bold enough
ncreasingly, the red-hot smartphone market seems focused on the competition between Apple – with speculation of an iPhone 5 launch this fall – and Google’s Android – with new contenders arriving more or less monthly from Samsung, HTC, Motorola and others. HP dropped out of the smartphone (and tablet) sweepstakes this summer, while Microsoft is hoping that an updated version of its Windows Phone 7 will breath new life into what have been lacklustre sales. The Canadian contender, RIM, with its BlackBerry line, appears to have been left on the sidelines. BlackBerries remain popular with enterprise IT departments for their security, manageability and compatibility with Microsoft Exchange servers. And there’s a surprising group of young people hooked on communicating via BlackBerry Messenger. RIM hasn’t seen significant sales of its PlayBook
tablet, and neither has it released promised upgrades to provide sorely needed services like email and calendar. The company has laid off 2,000 employees and watched stock prices drop to a fiveyear low. Recently, when it released three new BlackBerry models hardly anyone noticed. I’ve been using one of them – a BlackBerry Bold 9900 4G – loaned to me by Virgin Mobile. In many ways, it’s the nicest BlackBerry ever – a classy combination of stainless steel edge and black hologram-patterned back with keys that glow in dim light. It’s thinner and lighter than ever. Despite a fast 1.2-gigahertz processor it lasted several days on a charge. And it retains the classic BlackBerry keyboard beloved by millions of Curve and Bold users – far more effective than the virtual keyboard on iPhones and most Android models. While it retains the tiny touchpad of recent BlackBerry models, I never used
it. What sets the Bold 9900 apart is that it’s the first “classic-style” BlackBerry to get a touch screen. Like older Bold and Curve models, the screen is only half-sized, which is limiting if you’ve gotten used to full-screen iPhone or Android phones. But the 640x480 resolution screen is clear and crisp, and the usually responsive touch works well for navigating around it.
Combined with a new, fast browser, this is the most web-friendly BlackBerry model that I’ve used As on competing touchscreen smartphones, pinching and zooming works well to enlarge, shrink and move around screens – especially useful on web pages and maps. Combined with a new, fast browser, this is the most web-friendly BlackBerry model that I’ve used. The five-megapixel camera (720p video-capable) has a dedicated button – a very good feature – and takes reasonable images given the lack of autofocus. . Along with the other
recently released BlackBerry models, the Bold 9900 runs a new BlackBerry operating system: BlackBerry 7. While the PlayBook tablet runs an all-new QNX operating system, BlackBerry 7 is a more modest upgrade, providing better backward compatibility. Overall it’s straightforward and easy to use with one issue: icons on the Apps screen lack identifying text labels making it a bit of a surprise when I tapped on some of them. Somewhat lacklustre: RIM’s App World is poorly organized with far fewer apps than Apple or Android. The touch screen seems a natural addition to the classic BlackBerry design. The Bold 9900 adds touch without cutting off RIM’s legacy features. It’s a conservative approach that will please longtime BlackBerry users, but, I suspect fail to attract many new customers. Virgin offers the Bold 9900 from $170 (with a threeyear term) or for $600 with no term; it is also available from Bell, Rogers and Telus. • Alan Zisman (www.zisman. ca) is a Vancouver educator and computer specialist. His column appears weekly.
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How to succeed online Attend a best-practices seminar on how to create a website that delivers long-term measurable results. In this session you’ll learn how to create an effective web site strategy and how to evaluate your website on a monthly basis. Who should attend? Vice-presidents, directors, managers and consultants involved in: communications, marketing and web services We’ll provide all the critical answers you’re looking for including: • Why aren’t more people visiting our website? • What causes them to leave and not transact? • How can the site enhance customer relationships? • How can we generate more sales leads through our web site? • We’ll teach you how to create a full search engine report detailing which search engines are driving traffic to your site and which key words visitors are using? We’ll provide you with the tools and templates to do the following: • Establish specific, measurable, attainable, realistic and timely goals and objectives for your website that tie into the success of your business. • Accurately identify your target audience, create user profiles and user scenarios • Learn how to create a simple executive dashboard which provides key information on a monthly basis When: Thursday, Nov. 3 2011, registration will take place at 5:30 event starts at 6pm. Where: Vancouver Club Cost: $100 How to register: SEminAr HoStEd by: simply email firstname.lastname@example.org or call 604-219-6925 to hold your spot. There are only 50 spots available so please register early.
Daily business news at www.biv.com October 11–17, 2011
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Adcabs Media president Jalil Asaria and CEO Dave Haboosheh with their first ad-emblazoned cab
New taxi advertising venture rolls into town After signing contracts with three Lower Mainland cab companies, Adcabs Media puts its first ads on the road By Jenny Wagler
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n a nod to Big Apple-style marketing, taxi advertising pulled into town this month as Vancouver startup Adcabs Media launched its first wave of ad-emblazoned cabs in the Lower Mainland. The company’s first 16 adwrapped taxis are now on the road in Surrey and North Vancouver, where Adcabs has contracts with Guilford Cab 1993 Ltd. and Sunshine Cabs Ltd., respectively. Dave Haboosheh, 27, is the company’s founder and CEO. The licensed realtor said he got the idea of taxi advertising when he was looking for innovative ways to promote Coldwell Banker City Centre, the real estate firm he was working for. Haboosheh floated the idea with high school classmate and long-time friend Jalil Asaria – now Adcabs’ president. “[Asaria’s] response was: there must be a reason someone’s not already doing this,” Haboosheh said. But after contacting the City of Vancouver to investigate, the pair discovered there were no laws against wrapping cabs in ads. They also learned of a few previously unsuccessful attempts to launch the business in Vancouver: a taxi hubcap approach that fell below people’s sightlines and fullcar wraps that obscured cab company information. Haboosheh added that the city felt that New York-
style advertising – with triangular ads on cab roofs – would obscure a taxi’s indicator light. Steering clear of those approaches, the pair opted for a wrap technology that affixes an ad to taxis’ rear passenger doors and allows them to keep the cab company’s branding prominent on the two front doors. “There’s nobody in Canada that’s doing this,” Asaria said.
“[Taxi advertising] was kind of a perfect dovetail with our new marketing direction: we’re trying to be the most innovative trustee firm in Canada” –Blair Mantin, vice-president, Sands & Associates
He added that there’s some New York-style cabtop advertising in Toronto, but pointed out that the approach isn’t popular with cabbies because ads get nailed to cab roofs, causing rust and damage. Haboosheh said Adcabs is also affixing a QR code to cab doors and inside windows. He said the two-dimensional bar codes, which can be scanned with smartphones, allow advertisers to direct potential customers to a website, social
media network, promotional coupons or other interactive features they’ve set up. With the advertising approach worked out, Haboosheh and Asaria have been negotiating contracts with cab companies in the Lower Mainland and Edmonton. Adcabs’ business model centres around advertising revenue, which is shared with cab company partners. Besides Guilford and Sunshine Cabs, the pair say they’ve signed contracts with North Shore Taxi and Edmonton’s Co-op Taxi. They also expect to add Vancouver Taxi Ltd. to their client list soon. Bankruptcy trustee firm Sands & Associates is one of the first companies to sign on to advertise with Adcabs. The company has thus far booked a dozen cabs with Adcabs’ Surrey fleet. “It was kind of a perfect dovetail with our new marketing direction,” said Blair Mantin, the company’s vicepresident. “We’re trying to be the most innovative trustee firm in Canada.” The company has negotiated a deal to be the exclusive bankruptcy firm advertising with Adcabs in Surrey. Mantin said as bankruptcy firms move away from Yellow Pages advertising to new platforms, the company sees taxi advertising as a way to set itself apart. “None of our competitors are there so we can break out a little bit.” • firstname.lastname@example.org
October 11–17, 2011 Business in Vancouver
Real estate roundup
Peter Mitham Retailers balk at paying higher rents on Broadway; tower developments keep raising storeys and controversy Retail transition A chance run-in with a retailer along Broadway just west of Cambie Street a few weeks ago elicited a rant about how space was becoming too expensive for small momand-pop retailers like him to make a go of it. As he waved at the “for lease” signs posted by DTZ Barnicke and Cushman & Wakefield Ltd., this hapless columnist wondered if it had been really so wise asking whether the building was being readied for redevelopment. Cushman & Wakefield broker Chris Newton, whose name was on one of the signs, said space in the area is indeed expensive, but the area’s transitional nature means the high rates are difficult to achieve even if lower rates aren’t justified. Retail sales are under pressure. The latest estimates from Central 1 Credit Union peg growth at just 2.5% this year and 3.4% in 2012, and Colliers International reported that prevailing lease rates of $35 to $80 a square foot in the Broadway corridor west of Cambie were dropping this summer. While new space at the Cambie-Broadway nexus hasn’t had trouble leasing up, older product to the west and especially east of Cambie has been challenged, even with the new development transforming both areas. “You’ve got an area in transition,” Newton said. “The transit hub hasn’t necessarily translated into a lot of demand among retailers to be in that area to the east.” With net rents maxing out at $35 a square foot for older
space and property taxes and other expenses adding an additional $12 to $14 on top of those rates, smaller retailers balk. “That’s a very expensive gross monthly rent,” Newton said. “The national tenants that are out there looking at great locations, they’re still willing to pay top dollar for those locations, so the market seems to support it. But it’s the moms and pops that have traditionally held up that area that are having difficulty.”
“It’s the moms and pops that have traditionally held up that area that are having difficulty” – Chris Newton, retail broker, Cushman & Wakefield Ltd.
Sovereign ambitions Tower height is always a talking point in real estate, and comes to the fore when people want to boast (or roast) the figure. Back in 2002, Shaw Tower set its sights on being the city’s tallest building at 489 feet, but Wall Centre, at 491 feet, occupies the highest point on the downtown peninsula. Yet even before Shaw Tower’s completion in 2004, the announcement of Living Shangri-La at 1128 West Georgia Street trumped all comers as the tallest building in B.C. at 646 feet. The city’s move in 2009 to designate four sites for towers of up to 500 feet and prevent the kind of buzzcut Richmond’s downtown cityscape sports spurred more debate.
And let’s not forget Rize Alliance Properties Ltd.’s contentious proposal for a 32, then 26, then 19-storey tower at Kingsway and East 10th Avenue in Mount Pleasant. Out in the suburbs and east into the Interior, debates over height hinge on civic stature and shadow-casting. Meanwhile, local airspace was potentially threatened by an 81-storey project that former Surrey mayor Doug McCallum said Jung Ventures Inc. was planning for that city. The announcement was widely seen as McCallum voicing ambitions for Surrey prior to a civic election he lost to current mayor Dianne Watts, and Jung eventually met its Waterloo in 2008’s financial crisis. Still, tower height has its appeal as Bosa Properties Inc. knows. It recently announced that its Sovereign tower in Burnaby will be the highest-rising building in Metro Vancouver (if not the tallest) thanks to its location. Starting from an elevation of 412 feet above sea level, Sovereign will rise 485 feet, setting its roof 897 feet above sea level. Living Shangri-La, by contrast, is approximately 100 feet above sea level, and reaches just 746 feet above sea level. Investment tips The collapse of Lehman Bros. on September 15, 2008, definitively ushered in the worst financial crisis since the Great Depression, and three years later economic uncertainties continue to roil markets. The recession may be over officially, but that doesn’t mean everyone’s calm about
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investment prospects. Just take the recent breakfast discussion at the commercial real estate association NAIOP, where panellists were asked what their investment picks were. Andrew Tong, senior vicepresident, investment with Concert Properties Ltd., favours what he knows, telling interrogator Tony Quattrin, executive vice-president with CB Richard Ellis, he’s focusing on real estate with good cash flow “only because I understand it.” John Purcell, senior vicepresident and portfolio manager with Bentall Kennedy (Canada) LP, chose commodities because of China’s stable growth. But the punchline was left to Darren Latoski, president of Sunstone Realty Advisors Inc., who is doing what most of us would like to do: “I’m completely paranoid, and so I put my money only with myself. I put it in things that I can
Sovereign position: Bosa Properties Inc.’s new Sovereign tower in Burnaby is taking advantage of its elevation to rise above all other towers in the Lower Mainland
fire the fund manager.” Correction Contrary to a statement in last week’s Real Estate Round-
up (issue 1145; October 4-10), Arirang House at 2211 Cambie Street is at the south end of the Cambie Street bridge. • email@example.com
14 Real Estate
Daily business news at www.biv.com October 11–17, 2011
Glacier Media launches new real estate website Buoyant Metro Vancouver property market and demand from buyers, sellers and developers for instant listing information raising profile of house-hunting search sites By Glen Korstrom
t rong dema nd for Vancouver property and the rapidly increasing use of the Internet for residentia l listings and development opportunities has prompted Glacier Media Inc. (TSX:GVC) to enter the real estate website marketplace. Glacier, which ow ns Bu sine ss in Vancouver, launched REW.ca on October 11. Its 33-year-old Real Estate Weekly publication also now bears the REW.ca brand. General manager Ian Martin told Business in Vancouver that he expects consumers, realtors and developers will prefer Glacier’s REW.ca website to t he Rea l E state Boa rd of Greater Vancouver’s 12-year-old RealtyLink.org
Prudential Sussex realtor Annette Denk: most of her customers find her via word of mouth or the Internet
at The Fairmont Hotel Vancouver The Vancouver Board of Trade’s Business After Business™, presented in co-operation with the Small Business Council, is taking place at the luxurious Fairmont Hotel Vancouver! Come and check out The Board’s signature tradeshow! Showcase your products and services; Network with members and guests;
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The 33-year-old Vancouver icon Real Estate Weekly is rebranding as REW.ca and simultaneously launching a website that includes listings of existing homes and those under construction
a realtor photograph. “[REW.ca] sounds like a good big site,” Pruden-
“Other sites don’t have listings for projects under construction. In the Lower Mainland, we estimate that new construction is 20% of the inventory in the market” – Ian Martin, general manager, REW.ca
tial Sussex rea ltor Annette Denk told Business in Vancouver.
Denk uses social media and otherwise splits her adver t ising dol la rs between real estate-focused sites, Craigslist and e-Bay Inc.’s (Nasdaq:EBAY) classified advertising subsidiary Kijiji.ca. She believes REW.ca’s decision to shift from being primarily print-focused to targeting Internet traffic is a sound strategy. She frequently asks new customers how they found her name and, if it was not passed on by word of mout h, t he connect ion is usua lly made via the Internet. Den k a lso poi nted to the Internet’s ability to show virtual tours of homes as one of its key advantages over real estate print products. • firstname.lastname@example.org
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and the Canadian Real Estate Association’s cooperative MLS: Realtor.ca marketing system. Martin said several features set R EW.ca apar t from the pack. For example, it: •i nc lud e s l i s t i n g s for existing homes and those under construction; •has Whistler listings; •offers local real estate news alongside descriptions of each community; •a llows homebuyers to click a link to view nearby schools and other community amenities; and •enables realtors and developers to advertise and promote themselves and their projects. “Other sites don’t have listings for projects under c on s t r uc t ion,” Ma r t i n said. “In the Lower Mainland, we estimate that new construction is 20% of the inventory in the market.” Realtors can place free listings, but Martin believes they’ll get more bang for their advertising buck at REW.ca because they’ll be able to pay to promote listings by making them larger and more colourful and accompany them with
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tion and Environment at the British Columbia Institute of Technology. Goy has served for many years as associate dean and has spent the last 18 months as acting dean. “This is a great opportunity to RETAIL
the economic and environmental prosperity of B.C.,” said Goy. Keith Sashaw, president of the Vancouver Regional Construction Association (VRCA), gave his enthusiastic support to the appointment.
industry,” said Sashaw.” The VRCA looks forward to continuing its relationship with him.” Over the years, Goy has also been responsible for the Industrial Construction Group at BCIT and was previously responsible for the
including security systems technician, iron working, metal fabrication, welding, sheet metal, mining and piping trades at BCIT. Goy was the training director of the Electrical Joint Training Committee for 12 years before
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For temporary, permanent and contract staffing call today joining BCIT. He currently holds 604-694-2500 miles.ca memberships with the Wood Sector Council and the BC Aboriginal Mine Training Association. He was one of the inaugural board members for the Industry Training Authority, which manages the province’s industry training system. u
Port Mann highway project half completed Catherine Warren
By Brian Martin
Helping major media tap the 21st century power of audience participation Profile, page 43
giant is coming alive as one of the biggest construction projects in the history of British Columbia passes the halfway mark. In September, Premier Christy Clark was on hand at a ceremony to mark 50% completion of the Highway 1/Port Mann Bridge project. It is a $3.3 billion project and, contrary to common public pero matter how you slice it, ception, it is not a public-private the return to the provinpartnership. It is being financed cial sales tax from the harmoby the provincial government and nized sales tax will be painful for built by a partnership that includes British Columbia’s construction Peter Kiewit Infrastructure Comindustry. pany and Flat Iron Constructors That is the word from ManCanada Ltd. ley McLachlan, president of the At the ceremony, the premier British Columbia Construction acknowledged workers for their Association (BCCA). contr ibutions to the project, “The full impact of [the which, complete, says, retailer through daily deal sites because she thinks such marketing Lynda Barr, director, Dianes Lingerie: doesn’t offerwhen mass discounts to she the lingerie See Complex, C2 willservice-oriented improve safetybrand and reliability, ploys would diminish the store’s specialized,
Changing tax systems painful for construction
VRCA news supplement
Issue 1107 � January 11–17, 2011 $3.00 �credentials $79.95 in annually � firstname.lastname@example.org the School of Construccontinue to be an integral part of his the construction training and steel trades programs,
BCCA has questions for Victoria
Rod Goy to head BCIT construction
Minimum wage, maximum debate
Mohamed Ahmed targets city and developer in $10m lawsuit 5
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A critical mass of consumers taking up Inside the offer is usually forthe the50% offer to The massive Port Mann highway projectrequired has passed mark Subscriber details construction in vancouver haron Townsend points to her own use be completed. Aboriginal trades training gets Companies vie for awards —C3 travel time the global export opportunities. transportation. Like all businesses that sign up to deliver of “daily deal” websitessave to question just and improve important boost —C10 movement of goods for trade to Through this type of investKeith Sashaw, president of the Growing trend in construction how beneficial their proliferation is to Van- offers on such sites, Townsend’s favourite Safety tied to contracts —C4 Building permits increase — C11 the Asia Pacific region. ment, the government says, the Vancouver Regional Construcrestaurant hopes its discount offer will draw couver retailers. The Port Mann/Highway 1 province is accelerating job cretion Association, also praised the Creativity in office projects e South Granville ConstructiveTh Comment —C13 Business Improve- a flood of new clientele. Improvement Project is said to ation and growing revenues. project. Innovative designs downtown —C5 “At 50% off, they’re not making any ment Association executive director bought Legal Specs —C13 be creating 8,000 jobs and is a “From the iconic design of the “A project of this size touches a 50%-off meal coupon to her favourite Van- money,” said Townsend, “so they’re countBiggest architecture firms in key component of the provincial new bridge, to the hours of traffic every sector of the construction Metro Vancouver list —C6 Around the Industry —C14 likeaims blazes somebody to is ensure going to couver restaurant a few weeks back from one ing Gateway Program, which to that management the high- industry providing investment and comeofback a second and cover the city’s nearly dozen daily deal sites. Construction fraternity backs Provincialof View —C15 improve the movement people, waytime remains open off forthat use during jobs, not just for the main contracHonour House —C8 loss.” Each site follows a similargoods model: it sends and transit throughout the construction, to keeping people Business tors butinalso for all the1107 sub-conVancouver Issue —C15 New members list Butsays because regularwhat’s patronhappen- tractors along with manufacturers its subscriber base a daily deal, usu- Victoria Lowerwhich Mainland. that Townsend’s informedaabout Hospital project underway—C8 P3 partnerships —C16 on goods 78312said 6Sashaw. 02 at her she’ll to safely 7and71114 ally includes discounts or services infrastructure projects of favourite this cali- restaurant, ing, work hascontinue proceeded suppliers,” Software company goes PM40069240 R8876 bre provide the support that will and with minimal disruption,” Some facts and figures help patronize it with or without the discount. that range between 30% and 90% at a parinternational —C9 Next issue: January 2012 RETURN UNDELIVERABLE CANADIAN ADDRESSES TO CIRCULATION SeeVANCOUVER, Construction, boost domestic, cross-border and said Blair Lekstrom, minister of ticular store. see Groupon, 2 DEPARTMENT: 102 EAST 4TH AVENUE, B.C. V5T 1G2.C2
>Host of new websites offering subscribers huge discounts at stores and other businesses
>But merchants complain that the daily deal craze has few long-term benefits for Vancouver’s retail sector
By Curt Cherewayko
C2 VRCA News Supplement
Don’t drive distracted By Don Schouten, WorkSafeBC Manager of Industry and Labour Services – Construction
on’t drink and drive. Always buckle up. Those are two important phrases when it comes to driving safety and I’d like to add a third: Don’t drive distracted.
handling something other than the wheel, and thinking about something other than driving. Translate that to a construction context and that could mean looking at a recent change of order document or directions to the next site, listening to instructions on the radio or phone, re-arranging tools in the passenger seat, or thinking about what you have to do at the next site.
Driving is an important, but often overlooked activity when it comes to Remember to remind your workers that safety planning in the construction when they’re behind the wheel, driving industry. Workers drive from site to site is their only job. You can support this and, if it’s a large site, they’re often by not calling or texting them when driving within that one site. Looking you know they’re on at a mobile device, the road, and managing fiddling with the radio, road risks as you would or drinking a cup of In 2010, the any other occupational coffee is often viewed as just a natural part province of B.C. health and safety issue on your site. of driving. It may not made it illegal seem like a big deal, Develop a road to drive with but those actions might safety policy for your just put their lives at any electronic company and distribute risk. handheld it to your workers and supervisors so everyone devices, but Motor-vehicle is on the same page. incidents, or MVIs, are distractions You can find a sample the leading cause of go beyond just policy available on traumatic worker deaths WorkSafeBC’s web site cell phones and in B.C. On average, for you to adapt if you 30 workers are killed music players. don’t want to start from every year as a result of scratch. Head to the these incidents. Studies Road Safety page under have shown that 25 the Safety at Work tab on WorkSafeBC. percent of all vehicle crashes in B.C. com to check out videos, tip sheets, are caused by distracted drivers, which and other helpful resources. may imply that 25 percent of all workrelated MVIs can be attributed to the same reason.
In 2010, the province of B.C. made it illegal to drive with any electronic handheld devices, but distractions go beyond just cell phones and music players. When you’re behind the wheel, anything that causes you take your eyes — and mind — off the road is a distraction that can potentially lead to disaster. Employers, supervisors, and drivers can take steps to reduce the risk caused by distracted driving. If workers at your site are required to drive, part of the worksite’s safety program should address the risks workers face when behind the wheel. There are a couple of different types of driver distractions: looking at something other than the road, listening to something not related to driving,
Distracted driving is a serious issue and everyone needs to be reminded that a car, truck, or any moving vehicle is a workplace, and health and safety should be considered wherever you or your employees are working. In a fast-paced world that emphasizes multi-tasking and efficiency, it can be hard to resist the urge to do other things while driving. But when drivers focus on the road ahead — and nothing else — it goes a long way to keeping you, your workers, and the public safe. Please let me know what you think of this topic or any construction safety issue. Call me at 604 214-6989 from the Lower Mainland or toll-free elsewhere at 1 888 621-7233. Or email email@example.com. I’d like to hear from you.
Business in Vancouver October 11–17, 2011
Construction may slow because of uncertainty surrounding the transition back to the provincial sales tax from the harmonized sales tax From BCCA, C1
return to] PST on any given contract is nearly impossible to quantify,” said McLachlan. “It will certainly hurt contractors, because they will be unable to pass on the full cost of reverting to PST, at least in the short term.” McLachlan points out that changing back to the old PST system has raised a plethora of questions for contractors. “Considerable attention was paid to the residential housing sector in the original transition to the harmonized sales tax to ensure its implementation did not seriously impact the overall tax cost of a new residence – at least those at or below the average price of a new home,” he said. “There were, however, many incidents of double taxation [PST/HST] on commercial projects and non eligible projects around July 1, 2010, due to the long lead time between contracting and delivery of a product or service.” McLachlan will be asking Victoria whether current long-term agreements will be grandfathered under the HST. In other words, whether or not credits available to the builder on costs and to the purchaser where applicable will be honoured because contracts were entered into with the expectation of no sales tax. “Or will contractors be expected to and permitted to adjust prices to reflect the new embedded costs of PST for materials purchased after the transaction?” McLachlan wondered.
The BCCA president points out that the harmonized sales tax was expected to generate some $880 million in annual cost savings to the construction industry. “Conversely, will the government provide any incentives or job protection plans or otherwise ease the transition back to the PST for the construction industry?” asked McLachlan. The PST for contractors, said McLachlan, involves very complex issues and requires comprehensive books and records to satisfy the tax authorities. “Contractors will need to spend a lot more time and resources on administration of their businesses when we revert to the GST and PST,” McLachlan warned. The additional costs that result will, of course, eventually be reflected in the cost of their projects. The Urban Development Institute (UDI) in Vancouver is also very concerned about the issue. “The transition away from the HST will create much uncertainty within the development industry and among new home buyers,” said Maureen Enser, UDI executive director. “Many questions will need to be answered, and we are anticipating the government has considered the possibility of this outcome and its implications on the housing market. Further, the industry is seeking assurances that no additional taxes will be added to housing in B.C.” u
Construction “giant” hits important milestone From Port Mann, C1
to capture the enormous size of the Port Mann Project. It will be 2,020 metres long and provide five lanes in each direction. When complete, the bridge will hang from 288 cables. The towers are 160 metres high, and the bridge allows for 42 metres of navigational clearance. To build the new Port Mann Bridge requires 1,158 pre-cast segments in the approach spans and 25,000 tonnes of asphalt. Forty-five kilometres of cable are being used along with 157,000 square metres of concrete. The new Port Mann Bridge will open with eight lanes in the winter of 2012/13. Two additional lanes will be added when the existing bridge is demolished. When the full 10 lanes are complete the 850-metre main span cable-stayed structure will be the widest in North America and one of the longest. The bridge will also provide for transit bus traffic across the Port Mann for the first time in 20 years.
First announced in 2006, the improvement project includes not only the construction of the new 10-lane Port Mann Bridge, but also includes widening Highway 1, which is the Trans Canada Highway, upgrading interchanges and improving access and safety on the route. The project spans about 37 kilometres from the McGill Street Interchange in Vancouver to 216 Street in Langley. More than 30 interchanges and overpasses are being replaced, upgraded or added as part of the project. In keeping with the provincial transit plan and commitment to alternative transportation, the project includes congestionreduction measures such as high-occupancy vehicle lanes, transit and commercial vehicle priority measures and improvements to the cycling network. The new highway and bridge will also accommodate rapid buses that will provide a 25-minute service between a new park-andride facility in Langley and the Lougheed SkyTrain station in Burnaby. u
VRCA News Supplement C3
Business in Vancouver October 11–17, 2011
Local companies vie for honours Canada’s largest construction awards event By Brian Martin
ore than 600 of the Lower Mainland’s leading construction industry leaders will gather October 19 at the Vancouver Convention Centre. The occasion is the 23rd annual Awards of Excellence dinner and awards presentations. Sponsored by the Vancouver Regional Construction Association (VRCA), it is the largest construction awards event in Canada. “The annual Awards of Excellence presentations are one of the highlights of the year for the local construction industry,” says Keith Sashaw, president of the VRCA. “It gives members of the industry an opportunity to recognize their peers who have done outstanding work.” Some 200 entries representing close to $2 billion were included in the competition this year. Construction companies are rewarded for developing particularly unique methods of overcoming specific problems, as well as for their quality of workmanship and fiscal performance. A series of silver winners has already been announced in a series of categories. At the awards ceremony, one silver winner in each category will be announced as the gold winner. During the evening, the industry will single out several individuals for their contributions over the years, and WorkSafeBC will present awards to companies who have developed new safety equipment or techniques. Construction firms who are silver winners this year are: General contractors on projects worth more than $40 million: PCL Constructors Westcoast for the $75 million Sparkling Hill Resort near Vernon; a partnership between Bouygues Canada and Bird Construction for the new $237 million Jim Pattison Outpatient and Surgery Centre in Surrey; TASK Construction Management for the $52 million Poirier Sport and Leisure Complex in Coquitlam. General contractors on projects worth between $15 million and $40 million: Carillion Pacific Construction (formerly known as Van Bots Construction) for a $32 million House of Learning at Thompson Rivers University in Kamloops; Scott Construction for the $27 million Robert H.N. Ho Research Centre at Vancouver General Hospital; Stuart Olson Dominion Construction for the $23.3 million Penticton Aquatic and Community Centre.
Jim Pattison Outpatient and Surgery Centre in Surrey is among many projects to be highlighted at the VRCA Awards of Excellence evening
General contractors on projects worth up to $15 million: Vancouver Pile Driving for a $14 million contract at the Nanaimo Cruise Terminal; Manley Design & Construction Management for the $2.6 million Mahoney Pub attached to the Vancouver Convention Centre; Ledcor Construction for the $6.9 million Klahoose New Relationship Building on Cortes Island. Chairman’s Trade Awards: LMS Reinforcing Steel Group for two large projects in the Maple Ridge Area that totalled $4.4 million. One was for reinforcing steel at the Golden Ears Bridge while contracted to Bilfinger/Berger from Germany and the second was for the rebar on the Coast Meridian overpass while contracted to SNC-Lavalin; Flynn Canada for a $2.7 million project it handled while contracted to Bird Construction on the Jim Pattison Outpatient Care and Surgery Centre in Surrey; Spectrum Painting for a $2.8 million contract with Bosa Construction on the redevelopment of the Vancouver YMCA along with an attached condominium tower. President’s Trade Awards: CN Architectural Millwork and Construction for a $1.2 million project at the Sparkling Hill Resort while contracted to PCL Constructors Westcoast; Concept Aluminum Products for a $1.4 million project while contracted to Scott Construction at the Robert H.N. Ho Research Centre; Whitewater Concrete, a $2.6 million
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project while contracted to TASK Construction Management on the Poirier Sport and Leisure Complex in Coquitlam. Mechanical contractors on projects worth more than $3 million: Daryl-Evans Mechanical for a $20.8 million contract at the Jim Pattison Outpatient Care and Surgery Centre while contracted to Bird Construction; Keith Plumbing & Heating for a $48 million contract at Victoria’s Royal Jubilee Hospital, a P3 project with the Lark Group; Division 15 Mechanical for an $11.5 million job at the UBC Biological Sciences Building while contracted to Scott Construction. Mechanical contractors on projects worth up to $3 million: Jeda Mechanical for a $1.9 million contract at Samuel Brighouse Elementary School in Richmond. General contractor was EllisDon; APCO Plumbing and Heating for a $2.8 million project while contracted to Double V Construction at Garibaldi Secondary School in Maple Ridge; Paragon Mechanical for a $1.1 million project at the Garage, an historic building in Vancouver. General contractor was the Haebler Group. Electrical contractors on projects worth more than $2 million: Western Pacific Enterprises for a $5.3 million project at the UBC Biological Sciences Building. Scott Construction Special Projects was
Electrical contractors on projects worth up to $2 million: Houle Electric is a double winner: first for a $628,000 contract at a BC Hydro field operations facility near Port Alberni where the general contractor was Omicron Total Building Solutions. Houle’s second win was for its $120,000 contract on the Canada Place sails replacement project. General contractor was Ledcor Construction. Also winning silver was Mustang Electric for a $110,000 job at the Mahoney & Sons Public House. General contractor was Manley Design & Construction Management. Manufacturers and suppliers: Two firms have won silver awards as outstanding manufacturers or suppliers: Holdfast Metalworks of Nanaimo for a $40,000 contract with Ledcor Construction on the Klahoose New Relationship Centre on Cortes Island; and M&K Ready Mix of Vernon. M&K supplied PCL Constructors Westcoast with concrete for its award-winning Sparkling Hill Resort in the Okanagan. It was a $1.2 million contract. u
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the general contractor; Bridge Electric for a $2.4 million contract with Ledcor Construction on the Wesbrook Residential Tower at UBC; Nightingale Electric for a $15 million project at the Jim Pattison Outpatient Care and Surgery Centre while contracted to Bird Construction.
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C4 VRCA News Supplement
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Growing trend in the construction industry Companies’ safety records tied to winning contracts By Brian Martin
etting a construction contract is likely the most impor tant thing a construction company can do. Short of that, however, nothing is more important than safety. It is now quite likely that in the future, getting that job will be directly connected to a company’s safety record. In fact, in some cases it already is. At the heart of the issue is the BC Construction Safety Alliance (BCCSA). With headquarters in New Westminster, it is a non-profit association aimed at promoting safety within the industry. Funded from a small percentage of the premiums companies must pay to WorkSafeBC (formerly known as the Workers’ Compensation Board) the association represents all the 150,000 people who work for the approximately 35,000 construction companies in the province. Those companies range from a one- or twoperson operation to the largest companies in the industry. The BCCSA was formed just one year ago from the amalgamation of two existing and separate groups – the Construction Safety Network and the Construction Safety Association of BC. The two had represented different groups within the industry. Now all groups and all sectors are represented by BCCSA. Shortly after the merger, Mike McKenna came on board as executive director. McKenna has a long history in construction safety in the province and has worked in both the private sector and for WorkSafeBC. “What I have done in the months since I came here is try to demystify COR,” said McKenna. COR stands for Certification of Recognition. Although the BCCSA offers a number of safety-related courses and programs, COR is its key program. Started in 2003, it is comprised of several safety training programs available to construction managers and construction employees. There are two different structures. One is aimed at small
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Business in Vancouver October 11–17, 2011
Workers gather for a safety briefing during re-construction work at BC Place Stadium
companies – defined as firms with less than 20 employees – and another is aimed at large companies. It has been very successful. Since it began, base rates for the total construction industry have fallen from an average of $8.82 per $100 assessable payroll to $5.34.
“The large guys are paying big bucks to WorkSafeBC. So, 15% off their basic premium can come to hundreds of thousands of dollars” – Mike McKenna, executive director, WorkSafeBC
There are also very important direct savings for companies that are COR certified. They can see their WorkSafeBC premiums drop between 10% and 15%. Between 2003 and 2009, COR saved the construction industry $6.5 million in WorkSafeBC rebates. The majority of the companies who are COR-certified are large construction firms. Getting the smaller companies – which are often momand-pop operations – is much
tougher. “The large guys are paying big bucks to WorkSafeBC,” said McKenna. “So, 15% off their basic premium can come to hundreds of thousands of dollars. To the small guy, it’s not that alluring.” That will likely change, however. A movement is afoot to have most contractors in the province certified before they are allowed to bid jobs. Two of Vancouver’s largest general contractors have started pilot programs that involve helping sub-contractors become COR certified. Without that certification they would not be allowed to bid. “ T h a t i s t h e l e ve l o f seriousness we need,” said McKenna.” At the same time, the BC Construction Alliance is lobbying the provincial government to make COR certification a requirement for provincially financed projects. The roofing industry has gone even further. The Roofing Contractors Association of BC now requires COR certification from all its members. This is where McKenna’s goal of “demystifying” COR comes in. “There’s a feeling out there that it is hard to do and it isn’t,” he said, adding there is also a feeling among some contractors of, “It can’t happen to me.” It can happen to anyone, he emphasizes. While accident prevention is very important, return-to-work
programs are also very important. The duration of time away from work has been increasing in recent years and is very expensive. The association has a fulltime employee – Vernita Hsu – dedicated to working with companies to create programs to get workers back to work – perhaps modified work – as soon as possible. Her services are free, and she has an extensive background in injury management specific to the construction sector. Some 700 construction firms – most of them large companies – have been COR certified. The aim is to increase that by 200 per year. As part of the recruitment drive, the association is experimenting with contracting regional co-ordinators. These are safety professionals with years of hands-on experience in the industry. They are given lists of companies that are interested in COR certification and they go out to meet them in the field. They also provide safety consultation services free of charge to BCCSA members. “They can meet them first thing in the morning or in the evening if that is more convenient,” said McKenna. So far, there are three co-ordinators – in the Lower Mainland, on Vancouver Island and in the Southern Interior. If t h e p i l o t p ro g r a m i s s u cce s s f u l , i t w i l l b e expanded. u
VRCA News Supplement C5
Business in Vancouver October 11–17, 2011
Office projects highlight local architects’ creativity Larger floor plates and fewer balconies enable innovative designs square feet. Law firm McCarthy Tetrault LLP plans to relocate on the top four or five floors. Thompson’s other office project, for Oxford Properties Group, has a slim, condominiumsized floor plate of about 8,000 square feet. That 37-storey structure curves as it rises above its Oxford-owned neighbours: the Marine Building and the Guinness Tower. “The Marine Building and the Guinness Tower are both square. The Marine Building has a wedding-cake, 1920s approach with heavy materials,” Thompson said. “The new building, from its curved shape and slenderness and the way it flips and rotates at the top is something that isn’t competing with that [square blockishness].” Iredale’s Pender Street project for Credit Suisse AG and Swissreal Investments Inc. has floor-plates sized in between those of the two future MCMP towers.
Residential | Mixed-Use | Commercial | Civic | Special-Needs | Seniors
ending development of four large office towers breaks a multi-year lull where no such projects were built in downtown Vancouver and provides opportunities for architects who want to get creative and think outside the box. The city’s ongoing condominium tower boom allows little chance for architects to convert inspired concepts into brick-and-mortar reality. Commercial buildings allow more creativity largely because their footprints are larger and they do not have formulaic patterns where every so-many feet there is an identically sized balcony. “With condominium towers, the bedrooms have to be on the exterior. The living room has to be on the exterior. There simply aren’t enough other things to put inside a big floor plate if you “We’ll have two elements: your stack bedrooms and living rooms against the exterior,” said Musson Cattell Mackey Partnertraditional office tower but also ship (MCMP) partner Mark Thompson. “There’s a maximum size you can make a a large cantilevered bar that is floor plate before the layout doesn’t work any more.” four storeys tall and projects The sweet spot for a condo floor plate is about 7,000 to 8,000 square feet, compared through two city blocks over with office towers where the floor-plate is often 25,000 to 30,000 square feet, he said. two streets” The result of this restriction on creativity is – Gregory Henriquez, that Vancouver is saddled with similar-looking partner, residential towers – most being pale green and Henriquez Partners Architects white, glass-clad and tall and slim. Dialog architect Bruce Haden recently lamented Vancouver’s ocean of “seafoamIts mashing of buildings comes because coloured” condominium towers at an event to the City of Vancouver wanted to preserve the launch his Central-branded mixed-use project legendary stock exchange building that is not on Quebec Street near False Creek. officially a heritage building yet is still historic Haden’s antidote to this sameness is to by Vancouver standards. build Central – a project with two 10-storey Iredale architects have upgraded the old towers that support an eight-storey horizontal stock exchange structure with new electrical and tower which lies across the towers at a diagonal mechanical systems. Floor plates on the lower angle. floors of the 30-storey structure will be 15,500 See Ivy, C7 Thompson’s creative escape will be to work with his partners on two office tower projects slated to be complete by 2015 at the latest. One, which Bentall Kennedy LP is developing at 745 Thurlow Street, will extend Vancouver’s traditional central business district toward Robson Street. The 400,000-square-foot structure on Alberni Street will be about 300 feet high or about half the size of the Shangri-la Hotel across the street. Like the planned Iredale Group of Architecturedesigned building at 800 West Pender Street, MCMP’s project, on the former government liquor store site on Alberni Street, will look a bit like two buildings mashing into each other. “One side of the building is rectangular. It faces Georgia We utilize our LEED Accredited Professionals on our Street and is a bit more straightprojects, offering design features for environmental laced, whereas the other side, conservation and overall planning solutions that facing Robson Street, is a bit champion sustainable urban development. more jazzy,” Thompson said. The building’s jazziness stems from an inverted triangle-shaped part the structure that fans out on the upper floors to create a maximum floor plate of about 20,000
Iredale Group of Architecture designed a tower that incorporates the old Stock Exchange Building and a new 30-storey structure
C6 VRCA News Supplement
Business in Vancouver October 11–17, 2011
Biggest architecture firms in Metro Vancouver Ranked by 2010 net architectural fees Rank '11 Company
1 2 3 4 5 6 7
Noel Best, Ian Carter, Darren Burns, Doug Hamming, Bruce Knapp, Wilfred Lach, Len Rodrigues, Tom Schaeferle, Peter Wreglesworth, Bruce Raber, Brent North, Hal Owens, Michael McColl, Ray Pradinuk, Dan Zak Mike Burton-Brown, Jeremy Woolf, David O'Sheehan, Kenn Grotsky, Michelle Beggs, Daryl Hutchison, Sally Emmerson, Robert Smith
Airports, community, commercial, cultural, education, health 1954 care, hospitality, research laboratories, retail and mixed used
More than $20 million
Large-scale commercial, department stores, retail, mixed-use, 1979 residential, places of worship, institutional and complex renovation
Under $16 million
CEI Architecture Planning Interiors
Richard Bolus, John Scott, William Locking, Jim Aalders, Mark Hentze, Rod Windjack, Tim McLennan, Nick Bevanda
Health care, recreation, institutional, office, retail, multifamily 1986 residential and education
More than $12 million
Don Kasian, Wojciech Brus, Bill Chomik, Scott Douglas, Jim Ebbels, Milton Gardner, Crystal Graham, Vaughan Hoy, Carol Jones, Dean Matsumoto, Michael McDonald, Alan Nakaska, Patsy Poulin, Paul Szaszkiewicz, Oliver San Agustin, Peter Streith, Lois Wellwood Peter Busby, Susan Gushe, David Dove, Martin Nielsen, Robert Drew, Jim Huffman, Peter Thaler, Kathy Wardle, Rod Maas, Enrico Dagostini, Adam Slawinski, George Miu, Ryan Bragg, Loren Cavallin, Sean Brent, Blair McCarry William Reid, Mark Whitehead, Jacques Beaudreault, Mark Thompson
Airports, educational institutions, office buildings, laboratories, hospitals, renovations to major facilities, residential, mixed-use, retail projects, hospitality and commercial projects Architecture, planning and strategies, interiors and branded environments for aviation, transit, corporate, commercial, civic, health care, higher education, K-12 education, science and technology projects Retail, office, residential, hotel, health care, mixed-use, planning and urban design
More than $10 million
More than $10 million
More than $8 million
More than $7 million
More than $7 million
Henriquez Partners Architects
Kevin Hanvey MAIBC, Greg Richardson MAIBC, Ivica Marinic MAIBC, Institutional, retail, commercial, residential, mixed-use, George Sawatzky, Bill Tucker, Doug Vincent, Alex Riftin, Lori renewals and planning Billson, Cameron Kemp, Andy Kohler, Tim Loo, Sally Mills, Rod Yeoh, Norman Laube, Jordan Levine MAIBC, Michael Byron, Matthew Piry, Daniel van der Werff Norman Hotson, Joost Bakker, Alan Boniface, Bruce Haden Mixed-use waterfront design and planning, mixed-use urban infill, residential, educational, recreational, commercial, institutional, office and urban planning Richard Henriquez, Gregory Henriquez Cultural, institutional, office, residential buildings
More than $7 million
Chandler Associates Architecture Inc
Sheldon H. Chandler, Chris Block, Wally Ewert
Mixed-use retail/residential, lifestyle centres, multiresidential, seniors' living facilities, commercial office
More than $4 million
Neale Staniszkis Doll Adams Architects
Derek Neale, Tom Staniszkis, Jerry Doll, Larry Adams
Housing, mixed-use, health care, special-needs seniors housing, institutional, building restoration
More than $4 million
Graham Hoffart Mathiasen Architects
Ron Hoffart, Mark Mathiasen
Schools, health care, municipal buildings, commercial and multifamily residential
More than $4 million
KMBR Architects Planners Inc
Gregg Brown, Witmar Abele, George Boorman
More than $4 million
Iredale Group Architecture
Richard H. Iredale, James S. Emery, Kendall B. Jessiman, Selwyn Dodd, Peter Hildebrand, Graham Coleman
More than $4 million
McFarlane | Green | Biggar Architecture
Steve McFarlane, Michael Green, Michelle Biggar
Schools, colleges, police buildings, firehalls, health care, seniors, multifamily residential, commercial, recreational buildings, First Nations projects, sustainable design Architecture, master planning, structural engineering, building envelope, interior design, LEED facilitation, heritage restoration, cultural centres, educational institutions, commercial spaces, mixed-use developments, First Nations community buildings, residential NP
More than $4 million
Hughes Condon Marler Architects
Roger Hughes, Darryl Condon, Karen Marler, Stuart Rothnie
More than $3 million
Bing Thom Architects Inc
Bing Thom, Michael Heeney
Public buildings, sports and recreation, education, postsecondary, multifamily residential, health care, sustainable design and planning Commercial, institutional, cultural and residential projects
More than $3 million
Rositch Hemphill and Associates Architects
Bryce Rositch, Keith Hemphill
Multifamily residential and mixed-use developments, master planning, resort-related developments and seniors-related facilities
More than $3 million
Sebastian Butler, Greg Dowling, Ralf Janus, Robert Lange
More than $3 million
DA Architects + Planners
Mark Ehman, Randy Knill
Health care, education, airports, police and corrections 1972 facilities, residential, sports and recreation facilities, cultural centres and museums, laboratories, seniors housing, care centres, hotels and resorts, urban planning Hotels, highrise residential, large mixed-use projects, 1969 libraries, urban planning, education and community buildings
More than $2 million
Merrick Architecture - Borowski Sakumoto Fligg Limited
Greg Borowski, Graham Fligg, Mitch Sakumoto
Multiple-residential (high and low-rise), institutional, educational, adaptive re-use, commercial, recreational, specialty and mixed-use
More than $2 million
Bingham Hill Architects
John Bingham, Michael Hill
Multi-unit residential development, educational facilities, hotels and ski facilities
More than $2 Million
CJP Architects Ltd
James Carlberg, Brian Hulme
Institutional, recreational, education and health care
More than $2 million
Stantec Architecture Ltd
111 Dunsmuir St Suite 1100, Vancouver V6B 6A3 P: 604-696-8000 F: 604-696-8100 www.stantec.com
Abbarch Architecture Inc
505 Burrard St Suite 1830, One Bentall Centre, Vancouver V7X 1M6 P: 604-669-4041 F: 604-683-5338 www.abbarch.com 1500 Georgia St W Suite 500, Vancouver V6G 2Z5 P: 604-687-1898 F: 604-682-5398 www.ceiarchitecture.com 1555 Pender St W Suite 350, Vancouver V6G 2T1 P: 604-683-4145 F: 604-683-2827 www.kasian.com
Perkins+Will Canada Architects Co
1220 Homer St, Vancouver V6B 2Y5 P: 604-684-5446 F: 604-684-5447 www.perkinswill.ca
Musson Cattell Mackey Partnership
555 Burrard St Suite 1600, Vancouver V7X 1M9 P: 604-687-2990 F: 604-687-1771 www.mcmparchitects.com
Omicron Architecture Engineering Construction Ltd
595 Burrard St 5th floor, Vancouver V7X 1L4 P: 604-632-3350 F: 604-632-3351 www.omicronaec.com
8 9 10 11 12 13 14 15 16 17 18 19 20 21
611 Alexander St Suite 406, Vancouver V6A 1E1 P: 604-255-1169 F: 604-255-1790 www.designdialog.ca 402 Pender St W, Vancouver V6B 1T6 P: 604-687-5681 F: 604-687-8530 www.henriquezpartners.com
601 Cordova St W Suite 270, Vancouver V6B 1G1 P: 604-687-3390 F: 604-687-3325 www.caaarchitecture.com
134 Abbott St Suite 201, Vancouver V6B 2K4 P: 604-669-1926 F: 604-683-2241 www.nsda.bc.ca
10190 152A St Suite 203, Surrey V3R 1J7 P: 604-581-8128 F: 604-581-8148 www.ghmarchitects.com 1788 8th Ave W, Vancouver V6J 1V6 P: 604-732-3361 F: 604-732-1828 www.kmbr.com One Alexander St Suite 202, Vancouver V6A 1B2 P: 604-736-5581 F: 604-736-5585 www.iredale.ca
15 Chesterfield Pl Suite B, North Vancouver V7M 3K3 P: 604-980-9924 F: 604-980-9915 www.mgbarchitecture.ca 1508 2nd Ave W Suite 300, Vancouver V6J 1H2 P: 604-732-6620 F: 604-732-6695 www.hcma.ca 1430 Burrard St, Vancouver V6Z 2A3 P: 604-682-1881 F: 604-688-1343 www.bingthomarchitects.com 120 Powell St Suite 10, Vancouver V6A 1G1 P: 604-699-6002 F: 604-669-1091 www.rositchhempill.com
1500 Georgia St W Suite 950, Vancouver V6G 2Z6 P: 604-682-1664 F: 604-682-2405 www.dgbk.com 1014 Homer St Suite 200, Vancouver V6B 2W9 P: 604-685-6312 F: 604-685-0988 www.da-architects.ca 970 Homer St Suite 300, Vancouver V6B 2W7 P: 604-683-4131 F: 604-683-9313 www.merrickarch.com
1444 Alberni St Suite 201, Vancouver V6G 2Z4 P: 604-688-8254 F: 604-688-3323 www.bharch.ca 301 Sixth St, New Westminster V3L 3A7 P: 604-526-2764 F: 604-526-6995 www.cjp.ca
Sources: Interviews with above firms and BIV research. Includes firms that responded to requests for updated information. NR Not ranked NP Not provided 1 - Formerly Hotson Bakker Boniface Haden Architects + Urbanists
>Next week: Top 100 national and global companies based in B.C.
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Year Architects Architectural founded '11/'10 fees '10
Business in Vancouver makes every attempt to publish accurate information in The List, but accuracy cannot be guaranteed. Researched by Richard Chu, email@example.com.
Business in Vancouver October 11–17, 2011
VRCA News Supplement C7
Ivy joins two buildings From Office, C5
square feet. “We’ve opened up the walls where the existing building joins the new one,” said Iredale partner Peter Hildebrandt. “You can stand in the corner of stock exchange building and look right through to the new one.” Ceilings will flow continuously, as will floors. Tenants will simply walk through arch doorways, which were formerly windows in the old building. The building’s exterior will downplay the impression of merging a historic building and a new one because there will be a wide vertical sleeve running up the structure that will be filled with growing ivy. That green strip rises part way up the structure before sloping south toward the sun – an element that both helps the ivy grow and reveals an Musson Cattell Mackey Partnership’s project at 745 Thurlow artistic flair that would be will be a prominent structure visible from Robson and impossible on a condominGeorgia streets ium building where there are balconies, Hildebrandt said. Across the downtown peninsula, Henriquez is four storeys tall and projects through two city Partners Architects principal Gregory Hen- blocks over two streets,” he said. riquez is equally excited by the Telus Gardens Henriquez’ megaproject includes a 22-storey project that his firm is developing on Georgia office building, a 44-storey residential building Street for B.C.’s largest company. and retail space. u “We’ll have two elements: your traditional office tower but also a large cantilevered bar that firstname.lastname@example.org
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C8 VRCA News Supplement
Business in Vancouver October 11–17, 2011
Construction fraternity backs Honour House Companies, unions and associations all involved
EllisDon is well underway on the rebuilding of Surrey Memorial Hospital
t i s l i ke l y t h e m o s t unusual project that members of the Vancouver Regional Construction Association (VRCA) have ever taken part in. It is Honour House. Honour House is a 10-suite home in New Westminster recently opened to house first responders and their families when they are forced to leave their own communities and come to the Lower Mainland for medical treatment. It is owned and operated by the Honour House society, a non-profit organization. “First responders” covers everybody from Afghanistan veterans to firefighters, paramedics and police officers. Although such facilities exist in the United States, this is the first Honour House to be built in Canada. Word of its success, however, has spread so quickly that other cities including Calgar y, Edmonton, Winnipeg and Toronto are considering following the Lower Mainland’s example. More than a million dollars has been donated in cash and kind by members of the VRCA and consultants and engineers to make Honour House a reality. Donations are still coming in. In addition, the project is backed by such organizations as the Canadian Legion and the provincial government through BC Housing. The VRCA involvement was headed by Don Vandervoort, a retired construction executive and a veteran. He was also chair of the association’s life members committee. Vandervoort took a very strong personal interest in the project. “I was very enthused,” he said. “Because of my connection with the military
Honour House in New Westminster is now up and running
and because of my affiliation with the VRCA, I just had a strong feeling the association should do something – and I couldn’t think of anything better to do. “I am incredibly proud of this industry,” he told BIV. “So many companies, unions, trade associations and individual workers have contributed to the effort. It’s a good feeling.” Vandervoort is a ver y determined man, and Honour House kept him busy for more than two years. Last year, his efforts were recognized with a special award from the VRCA. VRCA president Keith Sashaw echoes Vandervoort’s enthusiasm. “This gave the construction industry an opportunity to give something back to the community” said Sashaw. “This is something we are continuing to emphasize as we launch our Environmentally Sustainable Construction program, which puts a heavy emphasis on community and social commitment.”
Honour House involved gutt ing and pre tt y we l l completely rebuilding a 9,000-square-foot Georgian mansion built in New Westminster in 1937.
“I am incredibly proud of the industry. It’s a good feeling” – Don Vandervoort, retired construction executive and veteran
All concerned agree it would have been less expensive to just build a completely new structure, but it would not have had the “homey” atmosphere that Honour House has achieved. This is just the latest life for the old house. It was originally built by a gentleman who had won the Irish Sweepstakes. The designer was A.J. Taylor, the engineer who oversaw construction of the Lion’s
Gate Bridge and for whom Taylor Way in West Vancouver is named. It remained a very gracious private home into the mid-1950s. After that it was employed for a number of institutional uses such as a nursing home and a halfway house. The historic integrity of the home was carefully maintained as it was expanded and upgraded. Even the landscaping has been completely redone. Dozens of trade contractors and suppliers have been involved. Construction manager was Scott Construction. In addition to a donation to the project, they forewent their usual mark-up on their work. Walter Frankl, architect, also donated his work. To make sure residents of Honour House will be able to get to and from their medical appointments the British Columbia Construction Association has donated an appropriate van. “It was just one incredible project,” said Vandervoort. u
Province’s largestever hospital investment EllisDon moves forward on Surrey hospital project
ork is well underway at the expansion of Surrey Memorial Hospital. After months of excavation and site preparation the first concrete was poured this summer. The general contractor is EllisDon. The $512 million redevelopment and expansion project is the province’s largestever capital investment in health care. It includes significant renovations to the existing hospital and addition of an eight-storey critical-care tower. The hospital will gain 151 beds for a total of 650. The Surrey Memorial Hospital Foundation will contribute approximately $15 million to the project. It is expected the project will generate 3,270 constructionrelated jobs. As a regional centre for the Fraser Valley, as well as home hospital for B.C.’s fastestgrowing city, Surrey Memorial will include a greatly expanded emergency department and other improvements that the government says will better enable staff to offer the best possible care to patients. The ER will include separate tracks for mental-health patients, seriously ill or injured persons, minor illnesses or injuries and pediatric patients. The pediatric ER will have dedicated pediatric staff. The emergency department is slated to open in 2013
with the rest of the tower anticipated to open in 2014. Ongoing renovation projects in the hospital have different completion dates. The tower will include a 48-bed Level III neo-natal intensive-care unit (NICU) for high-risk infants, and an embedded pediatric pharmacy. It will also offer Canada’s first in-hospital Ronald McDonald House, which will provide space for families. Each NICU bed has its own room with space for family to visit and stay over. Other medical floors will include an enlarged intensivecare unit, high-acuity beds, a special stroke unit and the ability to offer patients bedside hemodialysis. A new laboratory will take up one floor. Increased teaching space for the UBC School of Medicine will expand SMH’s role as a teaching and research hospital. The expansion of Surrey Memorial Hospital is the second major health construction project in the city. Recently, the $237 million Jim Pattison Outpatient Care and Surgery Centre was opened a few blocks away from SMH. “With the recent opening of the Jim Pattison Outpatient Care and Surgery Centre and this redevelopment project, we are investing about three quarters of a billion dollars in health-care infrastructure in Surrey,” said Finance Minister Kevin Falcon, MLA for Surrey/Cloverdale. u
VRCA News Supplement C9
Business in Vancouver October 11–17, 2011
Local software firm goes international
a problem. “What can happen is an owner may get a bid from a perfectly qualified contractor,” said Sulpher. “They’d love to work with him and he’s the low bidder. But they have to throw him out because he didn’t comply exactly with the bid. The owner may lose $20,000, $30,000 or $100,000 because of this.” The electronic bid form, however, won’t let the contractor submit a bid if there is an error in compliance. Using the system is free to project owners after an initial $1,000 to cover the software and training. It is the contractors who pay – and it is a modest amount. In order to submit a bid, bidders are required to be authenticated. For this process, there is an annual fee of $150 for each bidder. Although the system has only been introduced in the past few months, it has already been adopted by several major players. They include the Lower Mainland Facilities Management Group, which represents the facilities management for four provincial health authorities. They are Fraser Health, Provincial Health Services, Providence Health and Vancouver Coastal Health. In addition, the Interior Health Authority has adopted it and will no longer be accepting paper bids. Its use is not confined to construction alone. The University of the Fraser Valley, for example, intends to use it to gather bids for furniture and fixtures. Already word of the system has spread. Infinite Source Systems is now working with the State of Wisconsin, for one, which is adopting its software to conduct all their construction bids online. By joining forces with Barryhund Administrators, it has greatly expanded its business base to more than 150,000 customers. “We are excited about this new relationship,” said Robertson. “Our substantial expertise in the field and proven market-leading technology offerings combine to meet the diverse needs of the construction professionals who are transitioning the use of online technology.” u
Digital contract bidding now considered complete By Brian Martin
onstruction may be many thousands of years old. There is nothing ancient, however, about the technology being used by the construction industry. In fact, technology that has been developed right here in Vancouver is now being embraced in the United States and shows every sign of expanding rapidly. Infinite Sources of Vancouver has announced a merger with Barryhund Administrators of Sacramento, California. They say their combined market strength will allow them to quickly introduce their new technologies and services to the U.S. construction market. Those technologies have been evolving rapidly. For nearly a century, buyers of construction have dealt with the builders of construction – in other words “contractors” – through a fairly complex system involving bids and lots of paper. The system worked for a long time. In recent years, however, there has been a sea change. Led by Infinite Source Systems Corp., bidding in British Columbia has gradually been going digital. For some time, general contractors have been able view plans online rather than having to physically come into plan rooms. The plan rooms are operated across the province by the affiliate members of the BC Construction Association. In Vancouver and Abbotsford, that means the Vancouver Regional Construction Association (VRCA). Digital tenders have also meant general contractors have been able to solicit bids from trade contractors online. Trade contractors did not need to deal with paper bids. This was all made possible by using software developed by Infinite
The days of rushing around to handle tenders is ending thanks to digital advancements
Source Systems, which works closely with the associations. One of its principals, Steve Sulpher, is a former president of the VRCA, and another, Dave Robertson, CEO of Infinite Source Systems is a former president of the BC Construction Association. While trade contractors could bid to general contractors digitally, there was still a gap in the system and it involved building owners. The owners did not have access to the digital system, and general contractors still had to prepare paper tenders for them. Recently, that has changed. Infinite Source Systems has developed software that allows building owners to place their projects electronically into the plan rooms and allows general contractors to bid on them digitally. As a result, the plan rooms will be open to all contractors whether they are association members or not. There is, however, an additional fee for non-members to access the plan rooms. There are a lot of advantages to digital tendering, says Sulpher. The first one is obvious, of course. Contractors don’t have to jump in their vehicles and battle gridlock across town to get
their bids in on time. It is done with the touch of a keyboard. There are other not-so-obvious advantages, however. Electronic bidding removes a whole Aspirin bottle full of headaches. For example, it is common practice for general contractors to first submit a bid and then as they gather new prices from trade contractors to fax in amendments. This can be asking for trouble. Fax machines have a habit of jamming. Furthermore, it puts the responsibility for adjusting the original tender on the shoulders of the tendering agency or owner. This is a responsibility they don’t want. Using the electronic system, contractors can add to their bids or take away from their bids as often as they like right up to the minute tenders close. By the way, there is no doubt about tender closing time. The minute a tender is posted, a clock – quite visible to all – starts counting down to closing time. When the clock runs out, the tender closes and no amount of praying, cussing or begging can make it accept a change. The other major advantage is that electronic tendering makes it close to impossible to submit a non-compliant bid. Non-compliant bids are
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C10 VRCA News Supplement
Business in Vancouver October 11–17, 2011
Aboriginal trades training getting important boost
boriginal trades training in B.C. was given a boost by the provincial government this summer. Young aboriginal women and men are viewed by the construction industry as a potentially valuable source of new skilled workers. The average age in First Nations communities is considerably younger than in the population at large. A total of $2.2 million in funding is being provided to the provincial Industry Training Authority (ITA). It comes from the Canada-British Columbia Labour Market Agreement, which targets trades training for aboriginal people. The training will be delivered by First Nations and other agency providers to about 350 participants in two dozen communities across B.C. Mary Polak, aboriginal relations and reconciliation minister, announced the funding. At the same time, she announced a further $200,000 research project that ITA will undertake to identify barriers that limit the success of aboriginal people entering
Aboriginal apprentice David Ward with Mary Polak, Aboriginal Relations Minister
and completing skilled trades certification. The ITA’s CEO, Kevin Evans, says the funding and research are two significant strides forward in the organization’s efforts to increase
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aboriginal participation in the trades. Since 2006, aboriginal participation in apprenticeship training has increased by 118%. Last year, ITA’s aboriginal initiative program
served 21 communities across the province, resulting in 355 aboriginal people being ready for trades employment. “We know the skilled trades are particularly attractive to aboriginal people,”
Evans said. “Many aboriginal communities are close to major provincial projects, and the hands-on approach to the trades and apprenticeships offers components that are consistent with the values
of many aboriginal cultures. We need to continue to ensure aboriginal people have access to training and assessment that is flexible and responsive to their needs.” His comments were echoed by Keith Sashaw, president of the Vancouver Regional Construction Association (VRCA). The VRCA has been active in supporting aboriginal trades training. This is not something confined only to the northern and rural areas of the province, Sashaw pointed out. One of the province’s largest aboriginal populations is contained within the Lower Mainland, he said, as are many of B.C.’s largest construction projects. The government says that aboriginal tradesperson, David Ward, is an example of how well the support programs are working and the positive benefits it is providing to workers and their families. Ward is a 36-yearold first year apprentice sheet-metal worker from the Kaska Dene and Taku River Tlingit First Nations. He took a Canada-B.C. Labour Market Agreement-funded sheetmetal foundation program through ACCESS Trades and is now working full time as an apprentice. The funding announcements were made during a National Aboriginal Day celebration sponsored by the ITA, Aboriginal Tourism and Fortis BC. u
Victoria promotes northern infrastructure
ver the past summer, the provincial government has approved $120 million in royalty credits. This will lead to the development of 30 new infrastructure projects in northeastern British Columbia. Building the projects will create 2,085 jobs. Twelve companies were awarded credits under the 2011 Infrastructure Royalty Credit Program. New
and upgraded roads and pipelines, says the government, will improve access to underdeveloped areas and increase year-round production activities. This in turn will generate more jobs and more business opportunities in the province’s petroleum and natural gas sector. Industry funds the entire cost of each infrastructure project. Companies can then apply for a credit of
up to 50% of the construction costs which are applied against the royalties companies pay to the province. Victoria points out that British Columbia continuously evaluates the program and follows up on what other jurisdictions are doing. Forty-nine applications involving a total request of approximately $527 million in estimated construction costs were submitted to the
Ministr y of Energ y and Mines for review. Since its inception in 2004, the Infrastructure Royalty Credit Program has led to the development of 75 new road-based ventures and 93 new pipeline projects. They account for more than $1 billion in capital investment and about $5 billion in private-sector drilling and other investment activities. u
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VRCA News Supplement C11
Business in Vancouver October 11–17, 2011
Building permits showing increase
uilding permit values in the Lower Mainland-Southwest region are up so far this year, led by increases in both the residential and non-residential sectors, according to the Vancouver Regional Construction Association’s (VRCA) analysis of the most recent Statistics Canada building permit report, which came out in September. Permit activity slipped slightly in July with declines in residential permits offset by strong non-residential activity. Year-to-date building permit values were up 10% in the Lower Mainland-Southwest region to $3.63 billion in the first seven months of this year compared with the same period last year. Non-residential permits were up 24% to $1.24 billion from $1 billion last year. Residential permit values rose to $2.38 billion – up 3% from last year. “We are seeing a resurgence of interest in the commercial market which bodes well for the local construction industry,” said VRCA president Keith Sashaw. “This reinforces confidence in the local economy and the overall growth underway in Metro Vancouver’s private sector. Total building permit values in the region slipped 4% to $577.7 million in July from $602.2 million in June 2011. Non-residential permit values shot up 40% to $229.3 million from $163.3 million in June, while the value
of residential permits fell back 21% to $348.4 million from $439.02 in June “Building permit values in the Lower Mainland-Southwest region held fairly steady in July compared to June,” said Sashaw. “We aren’t concerned about the small July declines. Monthly volatility is a strong feature of building permits.” Metro Vancouver’s commercial real estate sector is generating more investment opportunities due to improved market conditions, according to the VRCA. Commercial permits during July were at their second-highest level this year. Seasonally adjusted, total building permits in Metro Vancouver held steady with a 1% decline to $520.9 million in July 2011 compared with $527.7 million in June. The permits outlook for 2011 is mixed with fewer public permits but more private activity, says the VRCA. Public permits increased in July but declines are expected with government stimulus programs winding down and fiscal budget consolidation ahead. With more than 700 members, the VRCA is British Columbia’s largest and most inclusive regional construction association. It represents both union and open-shop general and trade contracting companies, manufacturers, suppliers and other professionals throughout the Lower Mainland from Hope to Whistler. u
Tenants prefer “green” buildings
report carried in a recent Light House Ma r ke t In s i g h t s quarterly report by Light House Sustainable Building Centre contains some interesting facts and figures concerning green commercial buildings. It points out that a 2010 survey conducted by GE Capital Real Estate has found that 52% of Canadian tenants are strongly influenced by green building initiatives when renting commercial real estate property. The survey interviewed 2,220 office tenants from the U.S., Canada, France, Germany, Sweden, the U.K., Spain and Japan. Canadian tenants showed a slightly higher concern for green building initiatives than the international average (50%). Savings in operating expenses and energy costs associated with high-performance buildings, as well as evidence that certified buildings achieve higher rental rates compared to their noncertified counterparts are all driving the trend to more green certified buildings. Unfortunately, says the report, like so many such surveys, it does not gauge whether tenants are willing to pay for these initiatives and, if so, how much. Despite increased awareness of the
linkages between a healthy indoor environment and productivity, evidence shows that cost will generally prevail over quality. These findings, says Light House, also expose emerging concerns about whether Cana-
da’s building operators are sufficiently qualified and supported to meet increasingly exacting demands of building owners, managers and occupants, particularly in cases where performance accountability systems are in effect. u
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C12 VRCA News Supplement
Business in Vancouver October 11–17, 2011
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Canada is not alone in facing shortages Australia aggressively recruiting skilled labour By Brian Martin
here is no doubt about it: a looming shortage of skilled workers is among the most serious problems facing Canada’s construction industry. The industry, along with the federal government and provincial governments, maintains future manpower shortages as a topic priority as thousands of baby boomers begin to retire and leave their jobs behind. Canada and British Columbia are not alone in this problem, of course. It is something being faced by many western economies. The competition between areas and nations for skilled workers has begun to heat up and is likely to get considerably warmer in the very near future. Canada will find itself competing head to head in the global marketplace for the men and women it will need to sustain its economic activity. One of our “competitors” is likely to be our sister Commonwealth nation, Australia. The state of Western Australia (W.A.) has become particularly active. Western Australia, with a population of only 2.3 million people, covers nearly a third of the country. According to HR magazine, published in the United Kingdom, Western Australia has recently been very active recruiting workers in Britain. Its activities are likely of interest to employers in this country. Recently, the state’s workforce development minister, Peter Collier, led a 10-day U.K. tour. Research carried out by the W.A. government shows the state will need to recruit as many as 150,000 skilled workers by 2017. In remarks that sounded like an echo from the B.C. construction industry, the minister said hiring local residents will not be enough to fill the gap. Again, just as in Canada, the need for skilled workers covers virtually every industry
in the state including construction where some 20,200 new workers will be needed. Construction will be competing with many other economic activities such as hospitality and tourism, transportation, etc. “W.A. is facing a period of strong economic growth, creating sustained, long-term career opportunities particularly in the mining and resources sector,” said Collier. “With more than $225 billion [Australian] of resource and infrastructure projects planned, W.A. is on the cusp of a 25-year expansion, which, it is hoped, will drive forward the state’s economy.” Travelling with the minister was Kath Soumanis, regional HR manager in W.A. for the large Australian construction firm John Holland. That company, which employs 7,000 people across Australia, plans to recruit another 3,000 to 5,000 people over the next five years.
“Western Australia is facing a period of strong economic growth” – Peter Collier Western Australia Development Minister
The company has put plans in place to assist emigrants from the U.K. in moving to W.A. and setting up home there. “We know some areas we visited, such as Aberdeen and Dublin, have significant unemployment, and in those areas, jobseekers are more likely to have the skills we need,” said Soumanis. The Australian federal government has introduced rules making visa applications more flexible to speed up the immigration process. A temporary visa can now be obtained in a week. u
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VRCA News Supplement C13
Business in Vancouver October 11–17, 2011
or the last two months, there have been more people employed in construction in the Lower Mainland Southwest region than there were at the peak of construction activity before the economy took a nose dive in October 2008. In 2010, building permits have been tracking about the same level as in 2006, which was the period before the overheated and relatively unsustainable flurry of activity that characterized 2007 and half of 2008. Building permit activity has increased from the low of less than $200 million in January 2009 to around $550 million for the last three or four months. Total non-residential investment spending climbed from a low of $400 million per quarter in 2003 to reach a peak of just under $900 million in Q1 of 2008. It subsequently plunged to a low of under $600 million in Q2 of 2010 and has come back to $740 million in the last quarter. Looking at these figures, one would think that there would be a sense of buoyancy and contentment in the construction industry. Yet, speaking to many in the industry, there remains a sense of foreboding. While many are cautiously optimistic, there is a feeling we are still not out of the woods. Why would this be? I would suggest there are a number of reasons, all of which amount to the construction industry facing a significant quantum shift in the way it should b e approaching business.
markets and develop expertise in areas they never had to master before. Second, there have been a number of large global players coming into the Vancouver scene. Recently I had two calls in one day that were indicative of this development. One call was from the largest construction company in the United States with $9 billion worth of activity in 2010. They have
Now, however, as we start gearing up for more activity, the upcoming skilled labour shortages will make those of the past look like a cake-walk recently opened a Vancouver office and want to become more involved w ith our association. M e r e h o u r s l a t e r, I received a call from the largest construction company in France, which did €32 billion. It is also interested in becoming active in the VRCA and the local construction market. Clearly these companies are attracted by the fact that in spite of the doom and gloom, B.C.’s economic outlook is one of the best in the global economy. B.C. has been attracting
Keith Sashaw is president of the Vancouver Regional Construction Association.
noteworthy decision was recently handed down by the Supreme Court of British Columbia on the importance of complying with mandatory instructions in a tender. In this case, a roofing construction company’s bid was found to be non-compliant because the contractor, Admiral Roofing Ltd., (“Admiral”) showed up 15 minutes late for a mandatory site tour. The defendant, School District 57 in Prince George (the “School Board”), had initiated a tender process for a construction contract dealing with roofing for two buildings. The tender documents indicated that a mandatory site tour would be held at 8 a.m. at the first of the two buildings and would be immediately followed by a tour of the second building. The tender documents further stated that the failure to attend the tour would lead to the non-acceptance of a subsequent bid. On the day specified, Admiral’s representative arrived 15 minutes late for the tour. By that time, the tour had already left for the second building. Admiral’s representative joined the tour at 8:27 a.m. at the second building. He was asked by a representative of the board if he wanted to go back to inspect the first building. Admiral’s representative declined and stated that he would inspect the first building another day. At 9:45 a.m. the same day,
Admiral was advised by the board’s purchasing manager that Admiral was no longer able to submit a bid because Admiral was late for the tour. In defiance of the board, Admiral completed a tour of the first site, prepared a bid and submitted it to the board. The board refused to open the sealed bid and it was not considered. The board awarded the roofing contract to the only other company to submit a bid. Admiral argued at trial that because it attended the site tour, signed its name and later returned to visit the first building, it had complied with the mandatory site meeting provisions. Admiral further argued that the mandatory site meeting clause was ambiguous in that the clause did not say that a potential bidder had to “attend the entirety of ” a site tour, but merely that a potential bidder was required to attend at a site tour The court did not accept either argument, finding that it was very clear that attendance was required at both locations of the mandatory site tour which was to start at 8 a.m. on the day specified in the tender documents. Finally, Admiral argued that its failure to attend on time was a technical irregularity that should have been waived pursuant to the clauses in the tender documents that gave discretion to the school board to waive irregularities.
The court rejected this argument on the basis that the breach in this case was more than a mere technicality although it noted that had Admiral arrived five minutes late but attended both sites such a breach would be considered a mere technicality.
Representative’s late arrival for site tour killed the tender While the decision seems rather harsh, the court’s reasoning on this point was that a restrictive interpretation of discretion clauses is necessary in order to respect the mandator y requirements of the instructions to tenders and thereby protect the tender process. In other words, where a procurement authority includes mandatory language in its tender documents, the court, where it can, will interpret such language strictly so that all bidders can be assured that they will be treated equally. u Norm Streu is the chief operating officer of the LMS Reinforcing Steel Group and former chair of the Vancouver Regional Construction Association. Chris Hirst is a partner and the leader of the Construction & Engineering Group, Alexander Holburn Beaudin & Lang LLP.
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Fewer opportunities First, there has been a breaking down of the silos in which the industry operated prior to 2009. Until the 2008 downturn it was typical that construction companies would operate in niche markets, such as residential, industrial, commercial, highrise residential and institutional. With the financial crisis, there were fewer construction opportunities, requiring construction companies to look beyond their niche markets. Home-builders moved into non-residential, companies specializing in institutional projects moved into industrial, companies that specialized in mega projects looked at more modest projects. This resulted in a hypercompetitive environment in which owners were getting 20 bidders on a project as opposed to the three or four they were receiving in 2008. Construction companies have had to diversify their
major international companies for several years, and these last two examples are signs that the trend is continuing. These new entrants into the B.C. construction scene will bring with them new approaches to doing business, greater financial capacity and possibly some resources that are unique. The fact is they are here to stay, and B.C. construction companies will have to reexamine their business models to figure out how to deal with them. The third force bearing down on B.C. construction companies is the looming labour shortage. We all remember the clarion cries in 2007 and 2008 about the disturbing lack of skilled labour. Well, the economic malaise provided a respite from the problem. Now, however, as we start gearing up for more activity, the upcoming skilled labour shortages will make those of the past look like a cake-walk. The astute construction companies are already looking at how they are going to retain and recruit the best available talent, not only on the tools but in every management and supervisory position in their organization. In future columns we will look at some other factors facing the construction industry and how companies can possibly deal with the winds of change that are buffeting them now. u
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C14 News Supplement BusinessVRCA in Vancouver January 11–17, 2011
Business in Vancouver October 11–17, 2011
VRCA News Supplement
MajorAconstruction projects in British round the Industry Columbia continue record-setting pace
he list of major projects on’teither forget under to get active your consideration reservations or in theinprocess now forof thebeing Vanbuilt continues to hit record couver Regional Construction levels. Association’s Awards of ExcelThe projects tracked by lence dinner andare presentation. the provincial Time is almost government’s up, and there Major Inventory. It are onlyProjects a few tickets left. The lists allisprojects over19 $20atmilevent on October the lion Vancouver in the Lower Mainland new Convention and over million elseCentre. For$15 reservations, call where in the the VRCA at province. 604-294-3766. represents TheThis competition was“continparticuued good news” for the larly intense this year, andconthe struction industry, Keith ceremony promisessaid to be an Sashaw,one. president of the Vanexciting couver Regional Construction Association. Wood-frame construction T h e S ep tem b er 2 01 0 Wood-frame construction report showed 956 major continues to be a very controconstruction planned versial topic inprojects the construction or underway, the highest industry. The government’s number ever. The projects move to allow wood-frame had an estimated value of construction on buildings up $197.7 billion.isThe provinto six storeys being hotly cial government out debated. It is beingpoints criticized the figure isbyfour times the particularly the BC Readyvalue of construction projMixed Concrete Association, ects inwith 2001.several The number of along fire and projects planned or underway safety groups. wasLast up 8% and the was month, the value province up almost 5% over Septemreleased a new guide, saying it ber 2009. builds on industry knowledge Provincial Minisgained over theFinance past decade to ter Colinthe Hansen it was enhance qualitysaid of woodencouraging to see strong frame multi-unit residential major construction numbers buildings. given current economic Thethe government says The
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in-house costs to external bids.” He says a municipal auditor could ensure that decisionmakers are “comparing apples to apples” and supporting local businesses.
“Contracting out work to
as its new executive director. She replaces Helen Goodland, who will continue to work with Light House when she joins the board of directors. Founded in 2005, Light House is a not-for-profit company at the forefront of green building activity. It provides research, advisory and project management services to businesses, policy makers and the real estate and construction industries. B efore joining Lig ht House, Casavant was president and CEO of Eco Industrial Solutions Ltd., a planning and engineering consulting group that specializes in industrial development and eco-industrial parks. Light House, which is located in offices on Granville Island, has plans to expand into Alberta and Ontario.
professional quantity surveyor status. The role of the quantity surveyor is to manage and control costs within construction projects. The agreement is the culmination of work that began in March of 2009 involving the Canadian Institute of Quantity Surveyors, the Vancouver Regional Construction Association (VRCA), the Quantity Surveyors of BC
and the School of Construction and the Environment at BCIT. “The VRCA is pleased with this collaboration, and the outcome is an excellent example of what happens when industry works together with other July professional Between and organizations and educational institutions to improve stanSeptember 2010, the dards and qualifications,” said VRCA president Keith capital cost of all Sashaw. u
major projects under
construction inon British PCL starts work Columbia was estimated pre-trial centre at $61.7 billion
The BC Road Builders and professionals in the Heavy Construction Association has decided to wade into road building and ork is underway on the alligator pond filled with an expanded $90 milthose for and those against the road maintenance lion pre-trial centre in Surrey. provincial government’s plan PCL Constructors Westcoast to create a municipal auditor business may be is the general contractor on general. BCIT degree program the job, which is a publicJack Davidson, president one way of offering expands private partnership. of the association, has issued Thanks to a new agreement, The 216-cell project will a release saying that by worktaxpayers more British Columbia Institute more than double the centre’s ing with municipalities and New Port Mann Bridge project is among the record-setting number of major construction projects underway in British of Technology (BCIT) stuexisting capacity. Construcimproving systems, a municivalue for their tax Columbia dents who successfully com- tion is expected to create 200 pal auditor general’s office plete the quantity surveying to 500 construction jobs and would act as an effective single dollars” circumstances. Pharmaceutical Science about by the500 $80person-years million Osprey of the construcof point of contact for taxpayers between July and Septem- modules “Major projects like the ber of 2010, the highlights Building at the University master planned community – Jack Davidson, tion management degree employment over the projand businesses. proposed $43 million West of Britishwill Columbia; in Pitt Meadows; and president, program be steps closer ect’s anticipated two-year “Contracting out work to included: Kelowna rapid busroad expansion major proj- to •the capital cost of all major span. •since Septemberis2006, all BC Road Builders being registered profesCompletion set for professionals in the build- •twenty-two and and the start construction ects started projectsquantity under construction regions and Heavyconstruction. Construction sional surveyors late 2013. have experienced ing roadofmaintenance on the BC Cancer were the (PQS). in B.C. was in Partnerships total project Association The estimated graduatesatof$61.7 this increases Brookfield business may be oneAgency way of The largest of these Centretaxpayers for the more North in $500 million River Green course billion;will be accredited by Surrey numbers, with increases entered into a fixedoffering value Prince support jobs residential development the •twelve major projects comof 114% in the Nechako, Canadian Institute of price performance-based for theirGeorge tax dollars,” he said. and investmentan throughout i n Ri ch m on ddirector , t h e $ 17 0 Quantity pleted construction, larg- partnership 100% in theagreement Cariboo, with 73% executive Surveyorsthe to have “Maintaining in-house New our province,” said Hansen. million Mount Lehman est of which was the Canexus in the Northeast and 34% in crew is expensive, and this Light House Sustainable completed the necessary edu- the province to design, build, According to the latest ShoppingCentre Mall in manufacturing plant upgrade the Thompson-Okanagan hasAbbotsnamed cational requirements sub- finance and maintain the cenis not always calculated into Building Major Projects Inventory, Tracy ford and the $133 in North Vancouver, followed region. Casavant MESmillion P.Eng. ject to a final test to get their tre over a 30-year operating the costs when comparing
term. Theproject Major Projects InvenThe is designed to tory also included 47 clean achieve LEED gold certificatechnology projects an tion, the highest level with of susestimatedever valueachieved of $17.2inbiltainability a lion, such facility as the proposed correctional in British $500 million Metro benefits VancouColumbia. Expected ver waste-to-energy incinerafrom the design include an tion facility and a environproposed improved working $120 million James ment for staffFort andSt.lower green energy operating costsproject. over time as feaThe of inventory a result reducedalso energy tures 101 projects thatuse, are consumption and water certified or are aiming to be abundant natural light and certified under recognized improved indooraair quality. green sysThe building projec t rating w il l also tem like LEED innovations (leadership deliver numerous energyand and environmeninindesign surveillance. talThe design) or Green Gables, expansion is the censuch as the General trepiece of Kelowna the province’s Hospital andplan Vernon Jubilee $185 million to expand Hospital expansions correctional facilitieswith anda total estimated cost of $433 accommodate a growing million.population. ◆ u remand
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VRCA News Supplement C15
Business in Vancouver October 11–17, 2011
Provincial View Manley McLachlan
he value of a healthy trades, it is reasonable to expect construction industry a large exodus from the workto the economy can- force due to retirements over not be overstated. Without it, the next decade. the infrastructure needed to A significant number of allow the expansion of other those skilled workers own and industries and the support- operate their own small busiing services they attract can- nesses in communities across not be put in place. Without B.C. Many will be facing the the building blocks needed to need to develop an exit strategy support that robust industry, in the near future with little or economic growth will go south no expertise or resources. in a hurry. Their children will be grown One of the most critical and, in many cases, have moved building blocks is the skilled on to larger centres offerworker. A healthy construction ing more opportunity. They industry depends on skilled might wish to keep their life’s trades to get the work done, business operating, but with no and if there are not enough to one waiting in the wings to take go around we are quickly in big trouble. As trades “Skill shortages” is not a new concept. While the urgency of businesses shut the topic has waned somewhat during the economic downturn down they also of the last couple of years, it is making a comeback. Provincial take away the initiatives such as the Northwest Partnership Trade Agreeopportunity for ment have brought renewed concerns as the industry takes young people a look at the combined level of construction activity projected to apprentice in across the western provinces and the resulting numbers of that trade in that skilled and mobile workers that are going to be needed to community accomplish the work. According to the Construction Sector Council’s forecasts, over and no resources available, B.C., Alberta and Saskatchewan they are more likely to just shut will all be experiencing signifi- it down. Not only are jobs lost cant growth in non-residential and skilled workers exiting construction activity and acute the workforce, there are other skill shortages in the coming unfortunate consequences. years. In fact, they predict that In a small community, the the three provinces together loss of a local business can have will be looking outside the a serious impact. Small towns region for about 56,000 new can only thrive if they can skilled workers between now offer essential services to their and 2019. residents. If the only plumbThe need for more work- ing contractor in a community ers won’t just arise from the closes up shop, it’s a problem. increase in activity. We are also Not only is there no one to call facing the baby boomer retire- for a plumbing emergency, as ment scenario. trades businesses shut down In the construction indus- they also take away the opportry, the average age of many in tunity for young people to the skilled trades is approaching apprentice in that trade in that MT_VAN-constrution 12/16/10 4:36 PM Page 1 50 and over. Given the physical community. requirements of many of those So, not only do the provinces
need more skilled workers to complete their planned projects, the small rural communities need to attract new families and businesses just to stay alive. Finding those skilled tradespeople will include looking to underused labour pools such as women and the aboriginal community. It will require beefing up apprenticeship and selling the advantages of a career in the trades to young people. However, even after all those routes are travelled, there will still not be enough skilled workers to meet our needs. To prosper as a region, we are going to have to look to immigration as a vital avenue for growing our skilled labour force. The BC Construction Association has joined with the Alberta Construction Association and the Saskatchewan Construction Association to develop recommendations for the federal government on improving Canada’s immigration policies. Collectively we want to see the level of immigration to Canada increase, particularly among those with a trade certificate. In 2009, only 5.4% of Canada’s economic migrants held a trade certificate. Policies and criteria that enable immigration of new workers with skills appropriate to our industry need to be put in place by government. At the same time, the industry needs to ensure that the supports are there to assist new immigrants into construction careers and businesses. We believe that a collaborative approach between provincial and federal governments and the industry is the only way to go and we are actively pursuing that partnership. The clock is ticking on skill shortages. Let’s not wait for the alarm to go off. u Manley McLachlan is president of the BC Construction Association in Victoria.
The VRCA welcomes the following new members Associates Halsall Associates Ltd. Lindsey Tourand 112 930 W 1st St, North Vancouver V7P 3N4 P: 604-924-5575 firstname.lastname@example.org www.halsall.com Structural engineering, building envelope consulting, due diligence, structural and envelope restoration, capital planning and reserve funds, energy consulting and green design
General Contractors Bouygues Building Canada Inc. Clayton Welwood 1060 - 1500 W Georgia St, Vancouver V6G 2Z6 P: 604-688-9255 c.welwood@bouygues-construction. com www.bouygues-construction.com Bouygues Building Canada is a member of the Bouygues Construction Group, one of the world’s leading construction companies, with offices in Vancouver and Toronto F & M Installations Ltd. Mike Crucil 2076 Balsam Rd, Nanaimo V9X 1T5 P: 250-753-1214 email@example.com www.fminstallations.ca General electrical contractor
Suite Space Projects Inc. Shannon Stange 11th floor, 1200 W 73 Ave, Vancouver V6P 6G5 P: 877-899-8770 Shannon@SuiteSpace.com www.suitespace.com We design and build interior spaces through effective project management, focusing on tenant improvements, renovations, of f ice, retail and commercial. Designed with you – Built for you
Trade Contractors Adanac Roofing Commercial Division Ltd. Warde Shearing Unit 120, 19358 96th Ave, Surrey V4N 4C1 P: 604-888-1616 firstname.lastname@example.org www.adanac.ca Adanac’s roofing professionals have years of experience with all types of residential and commercial/industrial roofing Dallas Watt Demo Dallas Watt #149-20033 70th Ave, Langley V2Y 3A2 P: 604-777-5173 email@example.com www.dallaswattdemo.ca Eagle West Cranes Charlene Barkman 2190 Carpenter St, Abbotsford V2T 6B3 P: 800-667-2215 firstname.lastname@example.org
www.eaglewestcranes.com Holland Roofing Services Mark Kitchen 255 2416 Main St, Vancouver V5T 3E2 P: 604-685-8688 email@example.com www.hollandroofing.ca Commercial, industrial, residential roofing and waterproofing. Low-slope roofing – SBS membrane, EPDM, TPO. Steep-slope roofing – asphalt, cedar shake. Foundation waterproofing Lancelot Tile & Marble Ltd. Yann Lehoux 7790 Allman St, Burnaby V5E 2B1 P: 778-397-1766 firstname.lastname@example.org Robson Crushing & Demolition Inc. George Robson 1203 20800 Westminster Hwy, Richmond V6V 2W3 P: 604-288-8478 email@example.com www.robsoncrushing.com A one-stop company from small to large excavators to one of the largest Rammer Hammers in B.C. (G100). We have a pulverizer, mobile concrete and asphalt crusher and track dump trucks Sunwest Drywall & Stucco 2002 Ltd. Ivan Dragich 15120 Spenser Ct, Surrey V3S 5Z8 P: 604-597-3373 firstname.lastname@example.org steel stud, drywall and t-barr, residential towers and commercial projects
The Vancouver Regional Construction Association is B.C.’s largest construction association, representing more than 700 union and non-union construction companies in the Lower Mainland and Fraser Valley. Member benefits include networking, access to construction opportunities, education, industry news and advocacy and access to the Construction Job Centre. Interested in becoming a member of the VRCA? Join now by visiting www.vrca.bc.ca or call 604-294-3766.
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C16 VRCA News Supplement
Business in Vancouver October 11–17, 2011
CCA head sounds a warning Are public-private partnerships “hollowing out” industry? By Brian Martin
e’ve all read and heard stories of great chunks of concrete falling from a highway tunnel in Montreal. That city has a serious infrastructure problem. Dee Miller can tell you, however, it isn’t a problem that is confined to Montreal; it’s a problem that is nationwide and growing. By lobbying the government to change the financial component of P3s, she is determined to see something done about it. Miller is the current chair of the Canadian Construction Association (CCA). Headquartered in Ottawa, the CCA is the national voice of the Canadian construction industry. It has more than 17,000 member firms across Canada. Miller’s “day job” involves being vice-president of finance and human resources for JJM Construction in Delta. It is a family firm going back more than 60 years in this area. It specializes in heavy civil, structural and marine construction along with environmental and navigational dredging. Over the years, the Miller family has grown the company from a backyard operation to a firm
JJM Construction of Delta is a 60-year-old family enterprise that is involved with the South Fraser Perimeter Road Dee Miller, chair, Canadian Construction Association
doing in excess of $40 million per year. “Among the biggest challenges facing the economy is renewal of our infrastructure,” said Miller. “So much of our infrastructure was designed and built in the 1960s or even the 1950s. It was built for a population of 20 million people, not the 34 million we are today or the 40 million we will be by 2020.” The result, she says, is obvious to all of us. We see it in the form of crowded roads in poor condition, obsolete health facilities and a shortage of care facilities for an aging population. One of the first challenges, Miller points out, is that the
country really doesn’t have a handle on just how large a problem it is facing. The CCA is in the process of correcting that. It is conducting an audit from coast to coast with the Federation of Canadian Municipalities to discover how much infrastructure the nation has, what condition it is in and what it will cost to retrofit or replace where necessary. That study has already been started. The first phase, to be published in January of 2012, will focus on heavy civil projects – primarily roads, bridges and water and sewer lines. When that is done, the plan is to repeat the exercise for “vertical” construction – in other words, government-owned buildings. The CCA’s job has been made easier, she points out, by
We are proud to recognize the following companies for their participation in developing the Excellence in Sustainable Construction (ESC) program: Flynn Canada Gerry Enns Contracting Lark Group Scott Construction Group Western One Rentals Thanks to all for your heroic efforts in ensuring this program is of the highest standard.
recent accounting procedural changes which require Canadian municipalities to list their infrastructure on their balance sheets. They must show what state it is in and put a value on it. “This is an opportunity for us to accumulate the infrastructure data and create a benchmark,” said Miller. “Then we can track it – are we losing or gaining?” Miller points out that the federal government in its last budget committed to infrastructure renewal. The CCA, she says, wants to be at the table with all other stakeholders when it comes time to discuss that. A growing trend – particularly in British Columbia – is to finance infrastructure projects using public-private partnerships. They are nor-
mally called P3s. Generally, under a P3, a private consortium is contracted to design, build, finance and operate a public facility. Normally the contract will cover a period of 25 or 30 years after which the facility reverts to government ownership. Governments have often found this to be a very efficient way to provide infrastructure, and Miller says the CCA has no quarrel with the P3 concept. It does, however, worry that the way P3s are currently constituted may hurt the homegrown Canadian construction industry. So far, they have worked only for a handful of very large Canadian construction firms. Ninety per cent of the Canadian construction industry, however, is made up of small and medium-sized firms. The problem is in the financing component of the P3s. Traditionally, Canadian general contractors have depended on bonds purchased from the bonding industy for financial backing for projects. P3s don’t use bonds in the same way. They require letters of credit – cash from recognized financial institutions. Often P3s require 10% of the cost of a project covered by money in the bank. On a very large project, that can amount to hundreds of millions of dollars. Most construction companies in Canada are not
financially large enough to play in that arena. The result is smaller Canadian construction companies are either shut out of P3 projects in favour of very large, often offshore, consortiums or, at best, they are reduced to being subcontractors working for those consortiums. “As an industry we are lobbying for the government to consider other methods so Canadians aren’t left out of the P3 game,” said Miller. She has several areas she would like to see the Canadian government study, such as allowing performance and material bonds to back P3 projects just as they have always underpinned other construction projects. She even suggests that Ottawa launch a Canadian infrastructure government savings bond program that ordinary citizens could buy into. It would be targeted specifically at renewing the nation’s roads, bridges and buildings. “If governments plan to solve our infrastructure deficit by predominantly using the public-private partnership process as it is currently structured, they will literally hollow out the Canadian construction industry,” she warned. Considering the CCA estimates that construction in Canada employs some 1.26 million people and accounts for 7% of Canada’s gross domestic product, that is no small issue. u
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Excellence in Sustainable Construction (ESC) program is a certification designation for VRCA members. It recognizes a company’s accomplishments with sustainable practices and encourages them to improve these practices at both their office operations and on construction sites. To enrol in the program, go to www.sustainableconstruction.ca firstname.lastname@example.org • 604.294.3766 • www.vrca.bc.ca VAnCouVER REgIonAl ConSTRuCTIon ASSoCIATIon
Steels Surrey 15055 54A Avenue 604.576.9131
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October 11â€“17, 2011â€ƒ Business in Vancouver
Mary Charleson What Steve Jobs and Apple have taught us about great marketing
teve Jobs is gone, in w h at s e e me d me re weeks after leaving the top job at Apple, the company he co-founded. The bitter irony that millions would learn of his death via a device he invented was not lost on us. Over the course of his tenure, Jobs led Apple on a wild ride and changed our world irrevocably. He was arguably one of the best marketers out there. Hereâ€™s why. He understood product innovation and design. By my count, he introduced five disruptive technologies. He invented the personal computer. Emphasis on personal. It was nothing like the hulking mainframes sitting in airtight, controlled rooms that were being introduced at the time to house and crunch data. He gave us Apples and Macs, specifically. He told us a mouse wasnâ€™t a rodent, but rather an intuitive device to navigate a desktop.
He made it possible to print a document by pointing to something that looked like a printer in a pull-down menu and not some geeky series of key commands. I rememb er b ei ng a CS100 student at the University of Waterloo in 1984 and being the study group for 30 new Apple Macs. The ease of use to a non-computer science student was driven home in a subsequent work term at IBM prior to Windows launching. What a difference! He changed the music industry forever with the iPod and had the foresight to understand that the distribution system for digitized content was key to the success of that product, so he invented iTunes. The iPhone changed the way we communicate and access the web on the go. Suddenly to call it a phone was a humble misrepresentation, when it also had become a camera, a computer, a music player, a TV, a GPS
navigation system, an email platform, a voice recorder and had endless other capabilities through apps. He d id nâ€™t invent t he more than one million apps out there, but he made it so others could. He showed us that the
Jobs had the uncanny ability to give us something we needed before we knew we needed it iPad will be the most disruptive technology the computing industry has seen. Itâ€™s challenging the desktop and laptop categories. And it will change the distribution of print and broadcast media, as well as book industries just as the iPod changed the music industry. In each of these five major launches, Jobs had the
uncanny ability to give us something we needed before we knew we needed it. While other companies change, copy and upgrade products, few have invented with such success. He not only strategically saw an opportunity and evolution of the affected industries before he entered them, he moulded them to his liking along the way. Jobs understood the principles of good design. Apple products are intuitive, simple and sexy. He understood the impact of great advertising. Good design plus good advertising makes for a lustful combination. Few have created so many products that customers (shall we say fans?) lust over. He created Apple stores to ensure a consistent retail experience. He didnâ€™t go for mass distribution; he went for strategic retail representation in keeping with the premium
pricing strategy. He understood the importance of showmanship and sales. Apple, the king of â€œcontrolled leaksâ€? knows how to create anticipation around product launches like few other companies. It doesnâ€™t hurt that many of your customers are already rabid fans. And it now looks as if Apple has set its sights on disrupting the TV industry and distribution channels for content. That will be one to watch as the line
between computers and TV disappears. In short, Steve Jobs was a visionary and a great marketer. His footprint has irrevocably changed our society for the better.Â â€˘ Mary Charleson (mary@ charleson.ca) is a marketing strategist, speaker and consultant. Her recently published book Five-Minute Ma rket i ng i s available through www.amazon.com and www.Trafford.com. She writes monthly for Business in Vancouver.
Catering and Events. lazygourmet.ca
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Daily business news at www.biv.com October 11–17, 2011
People on the Move Email your For the Record
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Joan Hooper has been named senior executive vicepresident and CFO of CHC Helicopter. Hooper was previously a senior finance executive at Dell and executive vice-president and CFO of FreeMarkets.
Amanda MacNeill and Barinder Sidhu are associates at Fasken Martineau DuMoulin
So-Young Yang, Andrea Frisby and Michelle Moriartey join Legacy Tax + Trust Lawyers as associates
Jacquie Forbes-Roberts, Sid Katz, Nitya Iyer and Carol Matusicky have been appointed to the board of the St. James Community Service Society. Forbes-Roberts is a director of the Building Community Society and was previously general manager of community services, co-director of planning and heritage planner for the City of Vancouver. Katz was previously executive director for UBC’s office of community engagement and Science World and managing director of the Chan Centre for the Performing Arts. Iyer is a partner at Lovett Westmacott and is a director
of the Canadian Human Rights Reporter and West Coast LEAF. She was previously with Heenan Blaikie and an associate professor with the UBC faculty of law. Matusicky is chair of the United Way of the Lower Mainland’s Success by 6 and Middle Childhood Matters Advisory Committee and was previously executive director of the BC Council for Families and president of the Vanier Institute of the Family. Wally Oppal and Jock Finlayson have been appointed to the board of the Surrey
Board of Trade. Oppal was previously a BC Liberal MLA for Vancouver-Fraserview, attorney-general and mininster responsible for multiculturalism of B.C. Finlayson is executive vicepresident of the BC Business Council. Mark Sephton, BC branch manager of MI Petro and Brian Pittenger, president of Protec Petroleum Services Ltd. have been appointed to the board of the British Columbia Petroleum Contractors Association.
Brian Egli has resigned as a
director of the Great Canadian Gaming Corp.
So-Young Yang, Andrea Frisby and Michelle Moriartey have joined Legacy Tax + Trust Lawyers as associates. Yang practices in the area of taxation and completed her articles at Hordo Bennett Mounteer LLP. Frisby practices in the area of estate planning and administration and was previously at Valkyrie Law Group LLP. Moriartey practices in tax litigation and dispute resolution and was previously at Fraser Milner Casgrain. Alaka Chatterjee has joined Borden Ladner Gervais LLP as partner in the intellectual property group. She was
previously with Gowling Lafleur Henderson LLP. Amanda MacNeill and Barinder Sidhu have been named associates in the commercial real estate and natural resources group and securities and mergers and acquisitions practice, respectively, at Fasken Martineau DuMoulin LLP. MacNeill and Sidhu completed their articles at Fasken.
Tracy Casavant has joined Light House as executive director, replacing founding executive director, Helen Goodland, who has joined the board of directors. Casavant was previously president and CEO of Eco Industrial Solutions Ltd. T i m Wa k e h a s b e e n
appointed CEO of the Habitat for Humanity Society of Greater Vancouver. He was previously an affordable housing consultant and municipal councillor in Whistler and the general manager of the Whistler Housing Authority.
Premier of B.C. Christy Clark made the following changes to the executive council and parliamentary secretaries: Stephanie Cadieux has been appointed minister of social development; Margaret MacDiarmid becomes minister of labour, citizen services and open government; Harry Bloy has been appointed minister of state for multiculturalism; Ron Cantelon becomes parliamentary secretary for
Greg Pallone, Managing Director TRG Group Benefits, is pleased to announce the appointment of Larry V. Antonation to the firm. Larry brings a wealth of knowledge from his 35 years in the Group Pension and Investment industry, and valuable experience from his previous position as the Regional Director for a leading group services provider responsible for Alberta and British Columbia. Larry will be assuming responsibility for the on-going development and growth of TRG’s group retirement practice. Larry can be reached at 604.714.4860 firstname.lastname@example.org.
Larry V. Antonation, RPA Group Retirement Practice Leader
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October 11–17, 2011 Business in Vancouver
Tracy Casavant is executive director of Light House
Tim Wake is CEO of the Habitat for Humanity Society of Greater Vancouver
Christopher Carruthers, board member, Canadian Blood Services and Amber Branny, wellness consultant, TELUS
seniors to the minister of health; Gordon Hogg has been appointed parliamentary secretary for non-profit partnerships to the minister of social development; Donna Barnett becomes parliamentary secretary for rural communities to the minister of community, sport and cultural development; and Richard Lee has been named parliamentary secretary for Asia-Pacific to the minister of jobs, tourism and innovation.
B o b B a r ne s h a s b e e n appointed vice-president, development, at Midas Gold Corp. He was previously vice-president, operations, w it h Capstone Mining Corp.
and corporate secretary, respectively, at Prophecy Platinum Corp. Hulbert was previously senior research scientist at the Geological Survey of Canada. Langlois was previously director of investment banking at Stonecap Securities and managing director of investment banking at Laurentian Bank Securities. Li is general manager and corporate secretary of Prophecy Coal Corp. and was previously a senior auditor with the B.C. Ministry of Finance.
Michael McMillan has been appointed to the board of Galore Resources Inc. He is founder of Equipment Marketing Solutions Inc. and J&M McMillan Properties Inc.
Blanca Stella Frias has been appointed vice-president and director of Caerus Resource Corp. She will act as country manager and legal representative for the company in Colombia. She was previously administration and community relations manager for Ventana Gold Corp. Larry Hulbert, Patrick Langlois and Joseph Li have been appointed chief geological adviser; vicepresident, corporate development; and general manager
Bradley Thiele has been appointed to the board of Redtail Metals Corp. He was previously vice-president of project development for Cumberland Resources Ltd.
BCIT DISTINGUISHED ALUMNI AWARDS On October 27, BCIT will be celebrating and honouring alumni who have distinguished themselves in their careers and community endeavours. Watch for proﬁles of this year’s award winners in the November 1 issue of Business in Vancouver.
Tim Dake has joined Nevada Copper Corp. as general manager, project construction. He previously worked in project management, mill operations, and mine maintenance for Kinross Gold Corp., Freeport-McMoRan Copper and Gold Inc., Kiewit Corp. and ASARCO. Warren Stanyer has been appointed president and CEO of Guyana Frontier Mining Corp., replacing David Bending. He is chair of the board and was previously COO for Guyana Frontier, vice-president, corporate development, and corporate secretary for Pioneer Metals Corp. and president and CEO of Northern Continental Resources Inc. Mary Davies has resigned
Greg Dixon, president, Flight Centre (second from left) with staff and Adam Stewart, CEO, Sandals Resorts (far right)
as corporate secretary of Cream Minerals Ltd. Andres Tinajero has been appointed CFO of F.D.G. Mining Inc., replacing James Hurren, who has stepped down. Tinajero is CFO and vice-president of finance at Trelawney Mining and Exploration Inc. Brenda Dayton has joined Sunward Resources Ltd. as director of corporate affairs and corporate secretary. She was previously corporate manager at Ivanhoe Mines and vice-president, corporate governance at Canadian Nexus Ventures.
Steven Pleging has been appointed CEO, president and director of Quantum
Solar Power Corp., replacing Daryl Ehrmantraut, who will remain at the company as COO and director. Pleging is founder of TeamSolar BV and was previously CEO of Ecostream International BV and business line manager for Philips Lighting’s electronics division.
Companies on the Move • Name change
Theodor D. Sterling & Associates Ltd. (dba Theodor Sterling Associates) has changed its name to Sterling IAQ Consultants Ltd. and will remain at suite 310, 1122 Mainland Street, Vancouver.
34 for the record
Daily business news at www.biv.com October 11–17, 2011
Members of the Tzu Chi Foundation of Canada and Janet Weil (centre left), principal and executive director, Children’s Hearing and Speech Centre of BC
Dorette Jackson, assistant manager, client services, RBC Royal Bank; Laurie Tetarenko, vice-president, Royal Columbian Hospital Foundation; and Peter Zivanovic, branch manager, New Westminster, RBC Royal Bank
Hats Off Business in Vancouver wel-
The Tzu Chi Foundation of Canada donated $10,000 to the Children’s Hearing and Speech Centre of BC to support the centre’s Parent Guidance Program.
comes 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. The Juvenile Diabetes Research Foundation’s a n nua l R ide for Diabetes Research raised over $525,000 for diabetes research. All funds raised will go toward research for a cure and treatment for type 1 diabetes. Envision Financial donated $150,000 to Peace Arch Hospital and Community Health Foundation in support of the OH BABY appeal for a new maternity unit.
Fl ig ht C entre C a nada donated $50,000 to the Sandals Foundation as part of its community outreach program in the Caribbean. Flight Centre also created three computer labs for schools in need and completed other school infras t r uc t u re upg r ade s i n Jamaica. T he R BC Fou nd at ion donated $20,000 to the Royal Columbian Hospital Foundation in support of a new multipurpose suite that will expand cardiac, stroke and aneurysm care at the hospital. Axa Pacific Insurance raised $20,000 for Lions Gate Hospital Foundation through the Gary Dorman Memorial Golf Tournament. Proceeds will benefit The HOpe Centre and the Hospice/Palliative Care program.
RBC donated $7,000 to the Institute of Urban Ecology at Douglas College to provide environmental workshops at elementary schools across Metro Vancouver. Blake, Cassels & Graydon LLP raised $6,550 and placed first at Pro Bono Going Public 2011, a free legal advicea-thon event benefiting the Access Pro Bono Society of BC. Norco Products Ltd. donated $1,000 to the Arthritis Society, BC & Yukon division to help fund vital research and essential programs for people living with arthritis.
Rita Andreone and Michael Lee of Lawson Lundell LLP received a 2011 Lexpert Zenith Award celebrating corporate and law firm social responsibility for their work and dedication in improving corporate governance. Brad Armstrong, Chris Sanderson, Michael Morgan and Sarah Nelligan of Lawson Lundell received a Zenith Award recognizing law firm social responsibility that impacts children for their volunteer work with Family Services of Greater Vancouver. Blake, Cassels & Graydon LLP has been awarded 2011 Tax Firm of the Year for Canada and North America Tax Disputes Firm of the Year by the International Tax Review. TELUS received the Canadian Blood Services’ firstever National Partner Award recognizing the unique contribution of national partners to Canada’s blood supply. TELUS employees donated 1,731 units of blood to Canadian Blood Services and Hema Quebec in 2010. Scotiabank received the SFU Beedie School of Business Nancy McKinstry award for leadership in diversity. Wendy Grant-John, senior adviser to the aboriginal services group at Deloitte a nd former Musquea m chief, received a Doctor of Laws honorary degree from Simon Fraser University. The winners of the 2011 BCIC-New Ventures competition were: Polymer Research Technologies
Hazel Postma, associate vice-president, external, Douglas College; Thor Borgford, dean, faculty of science and technology, Douglas College; Rob McGregor, director, Institute of Urban Ecology, Douglas College; and Laura Sensarnie and Steve Campbell of RBC New Westminster branch.
Front Row: Susan Byrom, manager, corporate citizenship, Envision Financial; Myrna Webster, chair, Envision Financial regional council; Jane Manning, board chair, Peace Arch Hospital and Community Health Foundation; Lois Wilkinson, vice-chair, Envision Financial regional council; and Bryan Mavrow, senior vice-president, marketing, First West Credit Union 2nd Row: David Lanphear, assistant vice-president, Envision Insurance Services; Peter Scherle, adviser, Envision Financial regional council; and Bev Brown, president, Envision Financial 3rd Row: Don Murray (left) and Peter Podovinikoff, advisers, Envision Financial regional council
(first prize); RewardLoop (second prize); MineSense Technologies Ltd. (third prize); Awesense Wireless Inc. (BC Hydro sustainability prize); Diacarbon Energy Inc. (BC Bionergy Network prize); FundRazr (Vancity social venture prize); GreenScene AgriTek Inc. (Shildroth agritech innovation first prize); and Diacarbon Energy and KOK Technologies (tie–Shildroth agritech innovation second prize). Harold Steves, Richmond councillor, has received the Union of British Columbia Municipalities’ Special Long Service award for his 41 years of civic service in Richmond.
MET Fine Printers received a Benjamin Franklin award at the Premier Print competition for the production of its “Living Shangri-La Toronto Private Estates” brochure. JOEY Restaurant Group and BC Housing received the International Coach Federation’s International Prism Award, recognizing their commitment to coaching as a leadership strategy. T he Societ y of Tra nslators and Interpreters of BC celebrated its 30th anniversary. •
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Work With us & groW a career Glacier Media Group is growing. Check our job board regularly for the latest openings: www.glaciermedia.ca/careers
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October 11–17, 2011 Business in Vancouver
BUYER’S ALERT Companies listed below,
which are not members of the Better Business Bureau, have failed to respond, as of September 30, 2011, to Better Business Bureau of Mainland B.C.’s efforts to mediate complaints from September 19, 2011, to September 23, 2011. In some instances, the company may have taken care of the complaint and considered the matter closed, or may believe the complaint is unjustified; however, if the BBB has not received a response, records cannot reveal either position. Please note that BBB members must respond to customer complaints that are brought to their attention. Source: BBB. Adultsensations, Coquitlam Assured Pardons of Canada, Vancouver Deluxe Design & Advertising, Coquitlam Deluxe Junk Co Inc., Vancouver Dog Taxi, Vancouver Empire Vehicle Solutions Inc., Surrey Fine Line Carpentry, Prince George First Choice Haircutters, New Westminster Generation Wireless, Abbotsford Glorious Gardens And Lawns Inc., Abbotsford Grandview Travel Ltd., Richmond Happy Critters, Surrey Imperial Parking Canada Corp., Vancouver Klahanie Development Ltd., West Vancouver N-Motion Auto Net Ltd., Vancouver Peak Freaks, Nelson Peder Neilsen Fine Art, Vancouver Personal Mobility, Surrey Prince Dry Cleaners,
Vancouver RBC Holding, Vancouver Reid Jewellery Ltd., Burnaby Renelle Furniture Inc., Surrey Richmond Chrysler Dodge Jeep, Richmond Safe Security Products Ltd., Burnaby Savoir Faire Design, West Vancouver SCC Motors, Richmond Shaw Cablesystems GP, Vancouver Show in Motion, Surrey Smart Energy (BC) Ltd., Abbotsford Soha Hair Design, New Westminster Star Rebates, Burnaby Stitch International, West Vancouver Superior Energy, Burnaby Teak Marine, Surrey The Hope Chest, North Vancouver Top Quality Home Service, Burnaby Tri-Bear Glass & Screen, Delta Two Small Men With Big Hearts Moving Co., Abbotsford VanClean, Vancouver Vancouver Auto Liquidation Centre, Richmond Vienny Nails, Maple Ridge Xtralights, Richmond Zap Bike Rentals, Vancouver The following companies have responded to the BBB subsequent to being published: Delta Eastlink Cable Communications Ltd., Delta
Who’s Getting Sued These corporate writs
were filed with the B.C. Supreme Court registry in Vancouver. Information is derived from notices of civil claim. Civil claims have yet to be proven in
Defendant: Hotel Georgia Development Ltd. Box 11130, 3000–1055 W. Georgia St., Vancouver Plaintiff: Nightingale Electrical Ltd. 143–11131 Horseshoe Way, Richmond Claim: $1,356,021 for electrical work for an improvement being constructed on the lands; and a builders lien for $1,356,021. Defendants: Gold Spring Recreational Association and Gold Spring Heights Development Ltd. and Gold Spring Mountain Estates Ltd. and Double J. Developer Holdings Ltd. and Lighthouse Realty Ltd. and James Das and Richard Riediger and John Riediger and Ross Colin McDonald and Parm Judge 1000–595 Burrard St., Vancouver and 211–1015 Austin Ave., Coquitlam and 201–33832 South Fraser Way, Abbotsford and 12478–91A Ave., Surrey and 260– 2655 Clearbrook Rd., Abbotsford Plaintiff: 674191 B.C. Ltd. Claim: $1 million against the defendants jointly and severally for a deposit related to a property purchase. Defendant: Board of Education of School District No.41 (Burnaby) 5325 Kincaid St., Burnaby Plaintiff: Envoy Construction Services Ltd. 6345 197th St., Langley Claim: $547,109 for debt related to the construction of University Highland Elementary School, or,
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36 for the record
Daily business news at www.biv.com October 11–17, 2011
Trouble $344,387 for debt and damages for the extra work above the initial contract. Defendants: Premier Diagnostic Health Services Inc. and Premier Diagnostic Health Services (Vancouver) Inc. 301–3185 Willingdon Green, Burnaby Plaintiff: Tandem Builders Ltd. 2684 137th St., Surrey Claim: $166,217 for debt arising from an agreement for labour and materials. Defendants: Marnor Holdings Ltd. dba MHL
Transport and Nicusor Cioanca and John Doe 3243–264 St., Aldergrove and 1235 Huron St., London, ON and address unknown Plaintiff: Express Co. Ltd. 3 fl, No. 16, Sec 1, Nanjing E. Road, Taipei City 104, Taiwan Claim: US$151,080 for losses resulting from goods damaged during transport. Defendant: Motus Design and Development Inc. 315–319 E. 2nd Ave., Vancouver Plaintiff: Forma Apparel Inc. Box 10424, 1300 Dunsmuir St., Vancouver
Claim: $64,260 in damages for breaching an agreement to develop, design and brand eight sportswear items. Defendants: Appaloosa Holdings Ltd. and Brenton John Rusin and John Rusin 107–20644 Eastleigh Cres., Langley Plaintiff: 1327658 Alberta Ltd. 7408 Lytham Pl., Burnaby Claim: $52,317 for a loan secured by a mortgage. Defendants: Orcas Island Finance Ltd. and Christopher Hopton, aka Christopher Dean
Hopton 4623 W. 16th Ave., Vancouver Plaintiff: Suncor Energy Products Partnership dba Petro-Canada 2700–700 W. Georgia St., Vancouver Claim: $44,099 for debt for petroleum and related products. Defendant: Tightline Industries Inc. 3780 Ridgemont Dr., Lac Le Jeune Plaintiffs: Dryco Building Supplies Inc. and Dryco Drywall Supplies Ltd. and Dryco Building Supplies (Langley) Ltd. 316–2800 E. 1st Ave., Vancouver
Claim: $39,352 for drywall and drywall-related items. Defendants: C.S. Andow Constracting Ltd. dba C.S. Andow Contracting and the said C.S. Andow Contracting Ltd. and C.S. Contracting and Craig Andow aka Craig Stewart Andow aka Craig Stuart Andow 2219 W. Fraser Rd., Quesnel Plaintiff: Load’em Up Petroleums Ltd. 1064 Great St., Prince George Claim: $37,855 for debt for petroleum and related products.
Defendants: E C Environmental Control Inc. aka EC Environmental Controls Inc. aka EC Environmental Contracting and the said E C Environmental Control Inc. and EC Environmental Control Inc. and EC Environmental Controls Inc. and EC Environmental Contracting and Michael Dawes aka Michael Travers Dawes 202–5501 Kingsway, Burnaby and 5882 Eagle Plaintiff: Wolseley Canada Inc. 5950 Kingsland Dr., Burnaby Claim: $33,071 for debt for plumbing and related products. Defendant: Katzie Coast Marine Services Inc. 89 Rogers St., Vancouver Plaintiff: Hayco Industries Ltd. 856 Boyd St., New Westminster Claim: $20,160 for an equipment rental.
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Defendants: Gino Crudo and James Pitcher dba Boltz Installations and Greci Developments Inc. and 0861695 B.C. Ltd. 1150–625 Howe St., Vancouver Plaintiff: Action Electric Ltd. 1800–1095 W. Pender St., Vancouver Claim: $12,706 against Greci and Boltz for debt related to electrical equipment and installation services for a construction project; a declaration that the plaintiff is entitled to a builders lien against the lands and premises; and an order. Defendants: Westbank Projects Corp. and Icon Pacific Construction Corp. and Cordova Housing Property Inc. and Coupal Climbing Cranes Ltd. 1100–505 Burrard St., Vancouver and 9011788 West Broadway, Vancouver Plaintiff: 0733603 B.C. Ltd. Box 10424, 1300–777 Dunsmuir Street Claim: An injunction to keep the defendants from trespassing on the plaintiff ’s property and to not use a crane in the airspace above the plaintiff ’s property. Defendants: ANJ Properties Ltd. dba Realtyline and Paul W. Li and Local Venture Corp. dba Homeland Realty and Tony Lin 2239 Fraserview Dr., Vancouver and address unknown and 8280 French St., Vancouver and address unknown Plaintiff: Zowie Man Yim Tan 2973 W. 34th Ave., Vancouver Claim: Damages related to misrepresenting the age of a home that was built
for the record 37
October 11–17, 2011 Business in Vancouver
Trouble Lawsuit of the week
Legal action launched over RCMP Emergency Response Team training exercise A man who allegedly was injured during an RCMP Emergency Response Team (ERT) training exercise is suing for damages. RCMP member Vladimir Peh has filed suit against the Attorney General of Canada, Her Majesty the Queen in right of the Province of B.C., the Attorney General of B.C., the Minister of Public Safety and Solicitor General of B.C., Pete Monds, Glen Fishhook and Sebastien Pilote. A statement of claim filed August 18 in B.C. Supreme Court alleges that Peh suffered headaches, fatigue and injuries to his back, left leg, and calf muscles as a result of an incident that occurred while he was attending a 2010 candidate selection workshop for the ERP at the Pacific Regional Training Centre in Chilliwack. The court document alleges that, as part of the exercise, Peh was secured into a climbing harness, blinded with a bag over his head and then directed to climb to a 50-foot high platform on a 150-foot communications tower. The claim alleges that, once Peh reached the platform, Fishhook secured Peh with a rappel rope and instructed Peh to climb over the railing, let go of the railing and fall backward off the tower. Peh, still blinded by the bag over his head, allegedly complied. The suit claims that Pilote was responsible for conducting the bottom belay and safely lowering the plaintiff off the tower but failed to properly control the plaintiff’s fall and dropped him at a high speed. “His body swung toward a metal cross member support beam a the mid-point of the tower,” the claim reads. “The plaintiff’s back struck the beam on the tower, causing the plaintiff to scream from the pain of the impact.” Peh is suing for damages, damages “in trust” for the care and services provided by his family and past and future health-care costs.
in 1935 and substantially renovated in 1985 – a situation that made the plaintiff unable to carry out renovations for resale without extensive costs due to the age of the residence. Defendant: Adam Gefvert 531 E. 78 St., NY, NY Plaintiff: Silvercorp Metals Inc. 1378–200 Granville St., Vancouver Claim: An accounting of the profits earned by the defendant, a retired poker player, from short-selling Silvercorp stock after publishing a defamatory article about the company on seekingalpha. com; damages and/or disgorgements of the profits; and injunctions. Defendant: Lougheed Flooring Centre Ltd. dba Nufloors Coquitlam 6201–2850 Shaughnessy St., Port Coquitlam Plaintiffs: John Arthur March and Susan Margaret March 400–2955 Virtual Way, Vancouver Claim: Damages for a fire arising from glue that ignited during carpet installation. Defendant: Wal-Mart Canada Corp. 2800–666 Burrard St., Vancouver Plaintiff: Her Majesty the
Queen in right of the province of B.C. Box 9280 Stn Prov Govt, 1001 Douglas St., Victoria Claim: Health-care costs arising from injuries Linda Susan White suffered when, at a store, she got her foot caught under an empty pallet that had been left on the floor and lurched forward. Defendant: Co-operators General Insurance Co. 106–10334 152A St., Surrey Plaintiff: Rude Boy Foods, Inc. 1220–1200 W. 73rd Ave., Vancouver Claim: Damages to cover loss and business disruption stemming from a robbery and fire that ought to have been covered in an insurance policy. Defendants: Swarnjit Kaila and Swarnjit Kaila dba Total Renovations and Harcharan Hare and Harcharan Hare dba New Advance Siding & Sundeck Addresses unavailable Plaintiffs: Alsheed Mithani and Asifa Mithani 5413 Nancy Greene Way, North Vancouver Claim: Damages for a fire resulting from improper use of equipment during deck construction.
Defendant: 0726486 B.C. Ltd. dba Mountain Shadow Pub 415–1788 W. 5th Ave., Vancouver Plaintiff: Northwest Waste Solutions Inc. 1500–1055 W. Georgia St., Vancouver Claim: Damages for loss of use of waste and recycling bins. Defendant: DHL Express (Canada) Ltd. 700 W. Georgia St. Plaintiff: Northwest Waste Solutions Inc. 1500–1055 West Georgia St., Vancouver Claim: Damages for loss of use of containers.
Vancouver Claim: Damages for breach of a lease contract. Defendants: Servantage Services Corp. and John Doe Ltd. 1000–595 Burrard St. and address unknown Plaintiffs: Ontrea Inc. and Oxford Properties Group Inc. and Cadillac Fairview Corp. 2600–595 Burrard St. and 1300–777 Dunsmuir St. Claim: Damages related to negligently causing a sprinkler to damage property.
Defendant: Crown Isle Management Ltd. 201–467 Cumberland Rd., Courtenay Plaintiff: Coulson Forest Products Ltd. 1800–401 W. Georgia St., Vancouver Claim: Damages for breach of a rental agreement for a unit at The Villas resort in Courtenay; an accounting; a tracing; and an order.
Defendants: Ralph Berezan and 0810720 B.C. Ltd. 1455–126A St., Surrey Plaintiff: Larco Investments Ltd. 1908–925 W. Georgia St., Vancouver Claim: A declaration that Larco is entitled to keep deposits that Berezan made on condo units at the Residences at Morgan Crossing because Berezan failed to complete the purchase of the units.
Defendants: 0738396 B.C. Ltd. and Westover Helicopters Services Ltd. 5374 Sunhaven Pl., Nanaimo Plaintiff: Proven Enterprises Ltd. 1700–1075 W. Georgia St.,
Defendant: Western Door Manufacturing Ltd. 309–1688 152 St., Surrey Plaintiff: Northwest Waste Solutions Inc. 1500–1055 W. Georgia St., Vancouver Claim: Damages for loss of use of containers. •
Business in Vancouver celebrates B.C.’s most influential business women every year. Past winners over the past 12 years include some of B.C.’s most talented business leaders, whose career paths and individual achievements continue to inspire business people throughout the province.
Nominations are open. Go to www.biv.com/iwib Nomination Deadline: December 2, 2011 Issue: February 2012 Awards Luncheon: March 2012
Tamara Vrooman CEO, Vancity
Carole Taylor then:CorporateDirector now:ChancellorofSFU
Bev Brisco President, BriscoeManagement
Sue Paish then:ManagingPartner, FaskenMartineau now:CEO,Pharmasave
Shushma Datt Founder&CEO, i.t.Productions
Deadline for Datebook listings is noon Tuesday for the following week’s paper. All submissions are subject to approval and cannot be guaranteed. Business in Vancouver reserves the right to edit for brevity and clarity. Please go to www.bivdatebook.ca to post your listing. For more information call Jennifer Harrison at 604-608-5103.
Breakfast, Luncheon, Dinner Meetings BCAIM Luncheon: The Latest in Mobile Marketing to Deliver Results October 13, 2011, 11:30 AM: Expert panellists Pete Smyth, president and CEO, iamota corp., Syed Hasan, CEO, ResponseTek Networks and Scott Michaels, vice-president, Atimi, will share insights and case studies on keys to mobile marketing today. Members $49; Non-members $69; and Student Members $35. Four Seasons Hotel, 791 West Georgia Street, Vancouver. 604-633-0033. www. bcaim.org. Homelessness Action Week - Investing in what works October 14, 2011, 7:30 AM: Panel: Judy Graves, housing advocate, City of Vancouver; Kerry Jang, councillor, City of Vancouver; and Dick Vollet, president and CEO, Streetohome Foundation. Members $39 - Future members $55 + HST. Goldcorp Centre for the Arts, SFU - Room 2555, World Art Centre, 149 West Hastings Street, Vancouver. email@example.com. www.boardoftrade.com. Mature Women’s Network Sunday Brunch October 16, 2011, 12:00 PM: Invitation to women over 40 to join the Mature Women’s Network for a monthly social brunch. Cravings Restaurant, 8808 Osler Street, Vancouver. Call the office at 604-681-3986 by October 13 to reserve a spot, or the restaurant at 604-261-7779 for any late changes. www. up coming.ya hoo. com/ event/8495652/BC/Vancouver/ Monthly-Sun day-Brunch-atCravings/Mature-Women39sNetwork. THE DIGITAL DIET October 17, 2011, 11:45 AM: Daniel Sieberg, host, Tech This Out!, ABC News Now. Members $69 / Future members $96 + HST. Renaissance Va n c o u v e r H a r b o u r s i d e -
Harbourside Ballroom, 1133 Hastings Street West, Vancouver. firstname.lastname@example.org. www.boardoftrade.com. One Night by Lora Frost - Success Party October 19, 2011, 7:00 PM: A unique opportunity for entrepreneurs to embrace their power. Guests attending the party will arrive as the person they want to be in five years and act as though they have already achieved their goals. $150. Shangri-La Terrasse. Vancouver. Marion Houchard at mhouchard@ karranfinlaymarketing.com. www. onenightbylorafrost.com. What makes a good pitch? Developing, Presenting and Landing Business October 20, 2011, 5:00 PM: Presenters: Linda Oglov, business development consultant, and Bill Baker, principal and founder, BB&Co Strategic Storytelling. SMEI Members $55. Non-members $75. Pan Pacific Vancouver, 300-999 Canada Place, Vancouver. 604266-0090 or vancouver@smei. org. smeivancouver.org. BUBBLE TROUBLE? Leading experts discuss Vancouver’s real estate sector October 21, 2011, 11:45 AM: Moderator: David Podmore, chairman and CEO, Concer t Properties Ltd.; Eugen Klein, commercial real estate investor, Klein Group; Richard Wozny, principal, Site Economics Ltd. Members $69. Future members $96 + HST. The Fairmont Waterfront - Water front Ballroom, 900 Canada Place Way, Vancouver. email@example.com. www.boardoftrade.com. ECONOMIC EDGE 2011: Getting Canada back on track in the digital economy October 26, 2011, 7:30 AM: Speakers: James Moore, Minister of Canadian Heritage and Official Languages and Chris O’Neil, managing director, Google Canada. The Renaissance Vancouver Harbourside Hotel, 1133 West Hastings Street, Vancouver. firstname.lastname@example.org. www.boardoftrade.com.
Daily business news at www.biv.com October 11–17, 2011
Boughton / BCLI Great Debate October 26, 2011, 5:00 PM: The GREATdebate offers a fun, engaging evening of dinner and light-hearted debate. This year’s debate resolution: Resolved that the torts of champerty and maintenance should be abolished in B.C. $145 per person / $1,100 per table of 8. Pan Pacific Waterfront 300-999 Canada Place, Vancouver. Elizabeth Pinsent - 604.822.0142 or email@example.com. www.bcli.org/ news/events/great-debate-2011. PRIORITY MARKETS: Canada shifts trade focus to Asia October 28, 2011, 11:45 AM: Speaker: Edward Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway Members $79. Future members $110 + HST. Westin Bayshore Vancouver - Grand Ballroom, 1601 Bayshore Drive, Vancouver. firstname.lastname@example.org. www.boardoftrade.com. LUFTHANSA: Mobility for the world November 9, 2011, 11:45 AM: Don Bunkenburg, Director of Corporate Sales and Regions, North America, Lufthansa $69 Members and guests. $96 future members + HST. Renaissance Vancouver Hotel Harbourside Harbourside Ballroom, 1133 West Hastings Street, Vancouver. email@example.com. www.boardoftrade.com. LinkedIn - Using Social Media to Market Your Personal Brand November 24, 2011, 5:00 PM: Speaker: Gary Fearnall, director global marketing solutions, LinkedIn Canada. The brand called you is the professional brand you show to employers, collaborators, clients and colleagues. How you market that brand is essential to your professional success. SMEI Member $60. Non-member $78 before November 11. Pan Pacific Vancouver, 300-999 Canada Place, Vancouver. 604-2660090 or firstname.lastname@example.org. smeivancouver.org. Port Metro Vancouver Annual Address November 25, 2011, 11:45 AM: Speaker: Robin Silvester, president and CEO, Port Metro Vancouver Members $79. Future members $110 + HST. Four Seasons Hotel Vancouver - Park Ballroom, 791 Georgia Street West, Vancouver.
email@example.com. www.boardoftrade.com. Spirit of Vancouver Christmas Luncheon and Year-end Wrap-up November 29, 2011, 11:30 AM: Celebrate another memorable year at The Vancouver Board of Trade’s annual event. $79 Members and guests. $110 Future members + HST. Hyatt Regency Vancouver - Regency Ballroom, 655 Burrard Street, Vancouver. firstname.lastname@example.org. www.boardoftrade.com.
Conferences, Conventions, Tradeshows APEGBC Annual Conference & AGM October 13, 2011, 8:00 AM: Celebrate the accomplishments in the professions of engineering and geoscience at B.C.’s premiere engineering and geoscience event. Delta Grand Okanagan Resort and Conference Centre, Kelowna, BC. Shirley Chow, 604.412.4865, email@example.com. www.apeg. bc.ca/ac2011. HR Tech Group: Human Capital Symposium October 26, 2011, 8:00 AM: Tech industry event on best HR practices to grow your business (revenue, talent, leaders). Featuring keynote Don Bell, co-founder of Westjet Airlines: $350. Sutton Place Hotel, 845 Burrard St., Vancouver. Allison Rutherford, HR Tech Group, 604-874-2653; firstname.lastname@example.org. www.hrtechgroup.com. CSEME WEST 2011 November 2, 2011, 8:00 AM: A world-class event conference comes to Vancouver, featuring sessions from some of the world’s top event producers, networking events, and an exciting businessto-business trade show. November 2 Conference at Jewel Ballroom; November 3 Full-day Expo at Rocky Mountaineer Station, Vancouver. 1-87 7-2 12-39 76 . canadianspecialevents.com/ cseme_vancouver.
Courses, Workshops, Seminars Bullet Proof Investment Seminars October 15, 2011, 9:45 AM: Jennifer Fabre, investment adviser, DWM Securities Inc. presents a four-part series suitable for investors with some experience. Topics include Bullet Proof Portfolios, The Bond Markets, The Equity Markets and Market Strategies & Tactics. Complimentary seminars. Suite 700 - 609 Granville St, Vancouver. email@example.com or 604-895-3478. www.jenniferfabre. com. Business 2011: Embracing Online Marketing October 18, 2011, 5:30 PM: Learn how small and medium sized businesses use social media to build relationships, increase brand awareness and find new customers. Learn from Terri Davies, owner of Sociability.ca. Enjoy snacks and refreshments, networking, and an interactive workshop. October, 18 and 25. $99 session. $425 series. 915 Fort Street, 3rd Floor. Victoria. Terri Davies, firstname.lastname@example.org, (250) 588-2877. www.biz2011.eventbrite. com/. BCIC Commercialization & Business Planning Workshop October 21, 2011, 9:00 AM: An intensive workshop that compels the entrepreneur to think critically and develop the successful elements for the commercialization and positioning of their business idea. It covers business planning and product management. October 21, 28 and Novemebr 4. $269 (a $4,000 value). 1188 West Georgia Street, 9th Floor. Vancouver. lthom@bcic. ca. www.bcic.ca/programs/talent/ entrepreneurship-workshop.
35190 DeLair Road, Abbotsford. Tracie 604.859.5388 ext 115 email@example.com. www. pavilionservices.com/workshops. CAPS Vancouver: Todd Hunt–Creating a killer keynote. Plus Rising Stars and Podcasting How to clinic October 29, 2011, 8:30 AM: Learn the secrets to creating a great keynote address. For both emerging and experienced speakers. Plus, Rising Stars contest for new speakers. Members and first time guests $57 ($62 door), guests $87. Morris J. Wosk Center for Dialogue (SFU), 580 West Hastings St., Vancouver. Ron Grender, CAPS President: 778-6887065. www.capsvancouver.com. Mastering the Rockefeller Habits: Four Decisions Executive Workshop November 2, 2011, 8:00 AM: For CEOs and their leadership teams: Learn how to accelerate profitable growth using the Rockefeller Habits. The Four Decisions refer to the critical decisions that growth companies must get right to maximize their revenue, profit and time. $495 to $795 per person (see website). Terminal City Club, 837 West Hastings Street, Vancouver, B.C. Janice Watkins 604-313-2229 ext.1 Email: Janice@CoachKevin. com. www.mrhworkshopvancouver. eventbrite.com . Sustainable Economics for the Real World November 4, 2011, 9:00 AM: This course provides an overview of the emerging field of sustainable economics, as well as the tools for building the business case for sustainability. $600. 515 W. Hastings St., Vancouver. Joshua Randall 778-782-5254. www.sfu.ca/ city/course3popup.htm.
Selling Your Business Workshop October 28, 2011, 8:30 AM: If you are a business owner considering your exit this workshop will give you a significant competitive advantage when it comes time to sell. Speakers include a business mentor, mergers and acquisitions specialist, business lawyer, financing expert and tax specialist. $50. Cascade Community Church
Financing Symposium November 9, 2011, 8:00 AM: This one-day financing symposium will cover early stage and expansion financing; international trade and investment finance; funding acquisitions, succession and shareholder buy-outs; real estate financing; and alternative sources of financing. $350. Vancouver Convention Centre West - 1055 Canada Place, Vancouver. PD Department, ICABC - 604.681.3264 | firstname.lastname@example.org. www.icabc-pd. co m/p d-se m ina rs-se m ina r. php?id=2054.
Business web link
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Business web links BUSINESS WEB LINK
Operational Succession Plans We help owners exit their companies by providing internal structures and procedures so the next generation will NOT fail. Our focus is internal while your estate planners focus on the external. Cavaliere Financial & Management Inc Renato A. Cavaliere, CGA
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Business Plans Seeking venture capital or need bank financing?
We provide services in the areas of business plan preparation, market research, financial forecasting & analysis, business analysis and s trategic planning .
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Custom Precision Sheet Metal and Machined Components for Manufacturing Companies ■ CNC Machining ■ Sheet Metal ■ Waterjet Cutting ■ Robotic Welding ■ Prototyping ■ Silk Screening ■ Metal Stamping ■ Tool and Die Since 1975 ■ Wire EDM ■ Plastics and Composites
Matthew Sullivan 604-764-6012
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A good leader will take you where you want to go. A great leader will take you beyond where you thought you could go. www.visionaryleaderscanada.com firstname.lastname@example.org call 604-786-5883
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October 11–17, 2011 Business in Vancouver
Communicating Sustainability for Awareness, Accountability and Action November 25, 2011, 9:00 AM: This course provides tips and tools for effective communications practises and examines how sustainability is perceived by the public. $600. 515 W. Hastings Street, Vancouver. Joshua Randall (778-782-5254). www.sfu.ca/city/ sust906.htm.
Fundraisers, General Events Women Against MS Gala Breakfast October 13, 2011, 7:00 AM: There is no known cure for multiple sclerosis, which affects women three times more often than men. Funds raised support MS research. Special guest speaker Cassie Campbell-Pascall. $125 per ticket and $1,000 for a table for eight. Terminal City Club, 837 West Hastings Street, Vancouver. Kristina Keith, 604-602-3220, Kristina.Keith@mssociety.ca. www.mssociety.ca/bc/wams.htm.
Gala Events BCAMA evening gala - 2011 Marketer of the Year: Pacific National Exhibition October 13, 2011, 5:00 PM:
Arts Umbrella - Splash Art Auction and Gala October 15, 2011, 6:30 PM: Splash is one of Vancouver’s most established charitable art events featuring a stunning collection of works by some of Canada’s most prominent artists. Guest have the chance to bid on coveted artworks, raising muchneeded funds for Arts Umbrella. $300. Performance Works on Granville Island, Vancouver. Kelly Radcliffe at 604.681.5268 x223 or email@example.com. www.artsumbrella.com/splash. Gift of Time Gala Canuck Place October 15, 2011, 5:30 PM: The Gift of Time Gala is the signature fundraising event for Canuck Place Children’s Hospice. The Hospice relies on the funds raised during this evening to continue to provide children with life threatening illnesses and their families throughout B.C. with the highest standard of pediatric palliative care. This special black-tie gala fundraiser features a three-course meal, an exclusive private concert, and an auction. $350 or $2800 for a table of eight. The Westin Bayshore, Vancouver. Purchase tickets by contacting Canuck Place at 604646-0518 or email Robyn Zylstra at firstname.lastname@example.org. www.thegiftoftime.org.
Torch Awards 2011 October 26, 2011, 11:30 AM: Torch Awards is a gala awards luncheon recognizing ethical and sustainable businesses from across B.C. The Metropolitan Hotel, 645 Howe Street. Vancouver. email@example.com. www.mbc. bbb.org/torch.
BCIT Distinguished Alumni Awards October 27, 2011, 5:45 PM: The 9th annual BCIT Distinguished Alumni Awards celebrate and honour BCIT alumni and faculty who have made notable achievements in their careers and community endeavours. Tickets $125. Table of 10 for $1,200. Four Seasons Hotel. 791 W. Georgia Street, Vancouver. 604-432-8847 or firstname.lastname@example.org. www.bcit.ca/ alumni. 29th Annual BC Export Awards October 28, 2011, 11:00 AM: E xpor ters from around the province are recognised for their excellence and achievements in exporting and their tremendous contributions to the economy. Includes a networking trade show. Hyatt Regency Vancouver 655 Burrard Street, Vancouver. 604.713.7809 or kimberly.hall@ cme-mec.ca. www.bcexportawards. com. 2011 T. Patrick Boyle Founder’s Award November 17, 2011, 5:30 PM: The Fraser Institute will be honoring Darren Entwistle, CEO and president of Telus, with the T. Patrick Boyle Founder’s Award at a gala reception. Sponsorship, single tickets, and premium/standard tables available. Tkts: $500/$700, Tbl: $5000/$7000. Vancouver Convention Centre East, 1055 Canada Place, Vancouver. 6046 88- 02 2 1 ex t 5 37 or paige. mackenzie@fraserinstitute. org. www.fraserinstitute.org/ events-multimedia/eventdisplay. aspx?id=17774.
Networking functions IABC 101 October 13, 2011, 6:00 PM: Meet
and network with local chapter board members of the BC chapter of the International Association of Business Communicators. Learn about events and net wor kin g opp or tunities , volunteer roles, accreditation and more. Free hors d’oeuvres and drink. Complimentary. Ceili’s Irish Pub, 670 Smithe Street. Vancouver. IABC, 604.812.3346, email@example.com. www.cvent. com/events/ia bc-101/eventsummary-50a7ed418f9c43ba81 e8429c89da5459.aspx. Smart Business, Small Business: An SBA Speaker Session October 17, 2011, 5:30 PM: The Small Business Accelerator (SBA) celebrates BDC’s Small Business We e k wi th t wo co m p ellin g speakers: Paul Cubbon, a marketing instructor at UBC’s Sauder School of Business, and George Moen, a UBC alumnus, serial entrepreneur and president of Blenz – The Canadian Coffee Company. Followed by a networking reception. If unable to join in person there will be a live webcast of the event. Free and open to the public, however registration is required by October 13. HSBC Hall (C680), UBC Robson Square, 800 Robson Street, Vancouver. Aleha McCauley 604.827.3906 or aleha.mccauley@ ubc.ca. www.sba-bc.ca/biztalk. The Vancouver Board of Trade’s Business After Business October 26, 2011, 5:00 PM: The Vancouver Board of Trade’s signature tradeshow is presented in co-operation with the Small Business Council. $25 (+HST) pre-register OR $30 at the door. The Fairmont Hotel Vancouver - Pacific Ballroom, 900 West Georgia Street, Vancouver. CPitout@boardoftrade.com. http:// www.boardoftrade.com/events/ overview/2608901767.aspx. Mature Women’s Network AGM and Teresa Ferris on Living Vision October 28, 2011, 12:00 PM: Invitation to women over 40 to the Annual General Meeting featuring guest speaker Teresa Ferris on Living Vision. Do you know the benefits of having a living vision for your life? This presentation will explore the many benefits of living a visionary life.
$4 at the door. No reservations. 411 Dunsmuir Street, 3rd Floor meeting room. Vancouver. 604681-3986 or m_miller77@hotmail. com. http://upcoming.yahoo.com/ venue/36939/BC/Vancouver/ Mature-Women39s-Network. Women in Biz Network Presents: Branding your Biz with Rebecca Bollwitt & Heather White November 1, 2011, 6:30 PM: Women in Biz Network presents i t s f ir s t Va n co u ve r eve n t . Become brand savvy with Miss 604’s Rebecca Bollwitt and Heather White of 20/20 Communications $24. Opus Hotel - 22 Davie Street, Vancouver. kerry@womeninbiznetwork. com. www.womeninbiznetwork. c o m / 2 0 1 1 / 0 9 / 1 1 /o u r- f i r s tvancouver-event-branding-yourbiz-with-rebecca-bollwitt-heatherwhite/. C3: Coffee, Conversations & Connections November 10, 2011, 9:00 AM: These Casual Conversations are designed to connect you with smart, savvy women and start your day off right! Tell us your
thoughts, share your knowledge and learn from other women’s experiences over a freshly brewed cup of coffee (or tea!) Guests: $12.50 / Members: $10 [+ HST]. Cheers Restaurant 125 East 2nd Street. North Vancouver, BC. Cathy connect@theconnectedwoman. com. www.theconnectedwoman. com. Forum for Women Entrepreneurs: Exploration Session November 17, 2011, 3:30 PM: Join the monthly exploration session to explore its programs and oppor tunities for your business. Meet other like-minded entrepreneurs and two existing FWE members who will share their FWE experience. Learn about FWE's educational and mentoring programs, as well as their events and opportunities. Complimentary. Space is limited to 10 attendees. FWE office – Suite 850, 1095 West Pender Street, Vancouver. Confirm your attendance to firstname.lastname@example.org. www. fwe.ca. •
BUY A TABLE! October 19, 2011 5:30 pm – 9:30 pm A Fun, Sassy, but Classy event in support of KIDS UP FRONT
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SharePoint for managing records and retention November 18, 2011, 1:00 PM: SharePoint 2010 has great out-ofthe-box functionality for managing records. A SharePoint specialist and records manager, Marcel Roy, will be demonstrating how it can be configured to provide a state of the art records and document management system. Free. Room 281 BCIT Downtown, 555 Seymour Street, Vancouver, BC. Pat@ tracrecords.ca or 778-997-9199. www.tracrecords.ca/events.
Ridge Meadows Hospital Foundation Gala Evening October 15, 2011, 5:30 PM: Presented by Fraser River Pile and Dredge, this fundraising evening includes fine dining, shopping and fun. Proceeds will be used to purchase life saving equipment for Ridge Meadows Hospital. $175. Meadow Gardens Golf Course. Pitt Meadows. Laura Butler 604.466.6958 or laura. email@example.com. www. rmhfoundation.com.
BC Cancer Foundation - Inspiration Gala October 27, 2011, 6:00 PM: This year’s gala will support the Personalized Medicine Project, a critical first step for science, for doctors and most importantly, for cancer patients in B.C. The Project will begin by focusing on Acute Myeloid Leukemia and a number of rare pediatric cancers. Special guest speaker and Master of Ceremonies will be Peter Mansbridge, chief correspondent of CBC News. $500 each or Table of 10 for $5,000. B.C. Rocky Mountaineer Station 1755 Cottrell Street, Vancouver. For more information conatct Sacha Lehto at slehto@bccancer. bc.ca or 604.675.8242. www.
DI F F E R E N
Can You Really Do Away with Paper Records - Find Out What It Takes November 18, 2011, 9:30 AM: Find out from an expert in electronic records what it takes to be able to use your electronic records as documentary evidence. If you are scanning your records, this will also be of interest. Free. Room 281 BCIT downtown campus, 555 Seymour Street, Vancouver. Pat@ tracrecords.ca 778-997-9199. www. tracrecords.ca/website.
Attend this gala event to hear an inspiring story about how the Pacific National Exhibition, the 2011 BCAMA Marketer of the Year, has positioned itself as a premiere entertainment fair destination with its outstanding integrated ma r ketin g c a m p aign . $ 1 3 0 member. $170 non-member. $1600 for a corporate table. The Westin Bayshore, 1601 Bayshore Drive, Vancouver. Call 604.983.6AMA (6262) or Email: firstname.lastname@example.org or visit the website to register online. www.bcama.com.
Business Development, is it legal? Client Development strategies for legal professionals November 16, 2011, 8:15 AM: Lawyers attending this workshop will learn techniques for converting their legal skills into client-development ones. Techniques such as utilizing the power of references will enable lawyers to improve revenues and drive higher rates of client retention. $289.00 (Table of eight $1,750). 609 Granville Street, Canaccord Tower, Vancouver. To register please call 604-637-2088 x 201 or email; info@compasspeak. com. www.compasspeak.com.
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Daily business news at www.biv.com October 11–17, 2011
Timothy Renshaw Green power struggles in B.C.’s hinterland
an you feel the energy in the room? No? Then you’re not paying attention. It’s coursing through newswires and picking up spin all over the shop. The energy in this case is “clean” – solar, wind, run-of-river, geothermal – all those Mother Nature-approved power sources that energy paradigm shifters are betting everyone else’s money on shouldering the world’s energy needs once the demonized fossil fuel oxen have been driven to the slaughterhouse. Better news still, according to press release parade marshals, First Nations are climbing aboard the clean-energy train en masse. Native business prospects from the cresting green-energy wave was a key discussion point at the recent Generate 2011 clean energy conference in Vancouver. Elsewhere, a memorandum of agreement (MOU) was signed recently between Clean Energy BC, the First Nation Energy and Mining Council and several B.C. native bands to “collaborate on future clean-energy projects in British Columbia.” Looks to be “all good” as they say in Jargonville. If First Nations clean-energy agreements like the aforementioned yield more than MOUs, then we might be making some progress. Until then, however, rain will continue to fall on B.C.’s clean-energy parade. Native bands, especially in the province’s distant rural regions, would be among the main benefactors from the development of viable clean-energy sources like run-ofriver (ROR) hydro. It could wean their communities from dieselpower dependency and provide band members with much-needed entrepreneurial opportunities. A 10-megawatt ROR plant, for example, can generate annual revenue of between $3 million and $6 million. Some enlightened band leaders are embracing the long-term benefits of those opportunities and the independent power producers (IPPs) that help underwrite their costs. Others, however, still don’t see much beyond the traditional
parochial reserve turf and welfare dependency trap they and their tribes have been mired in for decades. IPP run-of-river development for that 10-megawatt creek faces a daunting set of hurdles, including: •at least $3 million in development costs; •more than 40 studies; •50 permits; and •four years to secure approvals. But for some IPPs, dealing with native bands themselves trumps all other hurdles. Consider that, as one IPP pointed out to Public Offerings, it can take up to six years of continuous interaction with a native
Cartoon by Rice
For some IPPs, dealing
How to fix Vancouver’s affordable housing deficit
with native bands trumps all other hurdles band for a single project, which can be derailed over the most whimsical of reasons. One proponent with $1 million invested reportedly had its project rejected by the government because of “spirits found in the creek.” Native bands wield huge power in the IPP approval process, but because few have any of their skin in the game, they suffer no investment consequences from killing projects that don’t conform to all their demands, regardless of how unreasonable they might be. Meanwhile, IPPs less practised in the complexities of dealing with B.C.’s diverse group of native bands, each with unique expectations, get no government help in First Nations negotiations. Their projects consequently have little chance of succeeding. Without better mutual understanding on both banks of the IPP energy river, the much lauded and applauded clean-energy ambitions of B.C. natives will be little more than empty PR wind and short-term cash grabs. • Timothy Renshaw (trenshaw@biv. com) is the editor of Business in Vancouver. His column appears every two weeks.
What’s your opinion? BIV welcomes readers’ opinions. All letters, including those sent by e-mail, must include the author’s name, address and daytime telephone number. Business in Vancouver, 102 East 4th Avenue, Vancouver, B.C. V5T 1G2. Fax: 604-688‑1963. E-mail: email@example.com. We reserve the right to edit for brevity, clarity and legality.
e heard it again at last week’s Business in Vancouver editorial board meeting: “Companies get a great out-of-town candidate in their sights,” said one of the participants, “then that person clicks through to the real estate listings and calls back to turn down the job. They can’t afford to move here.” That’s the business downside to Vancouver’s freakishly strong real estate market. As that boom continues, first-time local homebuyers are left gasping on the sidelines, making painful plans to move to Winnipeg or Prince George or wherever they can get a job and buy a home. The real estate economy is eating away at all the other economic sectors, silently killing the greater economy and breaking up extended families. Internationally renowned housing expert Avi Friedman, in town recently for a Housing Now: Local Solutions Through Local Collaboration (www.sfu.ca/housing) workshop, was adamant that homeowning young people are the future of any city, especially in a servicedriven economy. They provide the creative juice and energy for new enterprises. They volunteer at schools and on soccer pitches. They look after their aging parents. They fill the nursing jobs. They desperately want to be in this city, but housing prices are driving them away. Do we care? Whistler does. Whistler Housing Authority general manager Marla Zucht reported
to her council last month that for the first time in 14 years of surveys, lack of accommodation was not cited as a reason for staff shortages. Although Whistler’s most burning issue was a rental shortage, it also found a way to build housing that young local families could afford to buy – and did. Zucht was one of six presenters at the workshop, which was hosted by SFU’s Centre for Dialogue, in part-
The real estate economy is eating away at all the other economic sectors, silently killing the greater economy and breaking up extended families nership with the Urban Development Institute, Social Planning and Research Council, the City of Vancouver and the BC Non-profit Housing Association. (Full disclosure: I helped organize it.) The idea behind the developerinspired workshop was to replicate local successes in providing home ownership or rental for households whose income was in the $35,000 to $80,000 bracket, without waiting for provincial or federal gravy trains to show up. All six projects highlighted at the workshop involved some mix of partnerships, subsidies, flexibility, municipal political leadership, innovation
and expedited approvals. Among the common features: •Reduced land costs through leases, discounts or land trusts. •Limits on speculation. Architect Gregory Enriquez said his project at 60 West Cordova had a one-year hold requirement, but he’s convinced it would have sold out with a five-year hold. Some projects have income limits for ownership or restrict ownership to local residents, as Whistler does. Some cap resales at the cost price plus the rate of inflation. •Reduced fees for permits, development cost charges or property taxes. •Modest finishings (forget the marble counter tops) and no-frills marketing. •Zoning incentives. Cities have limited land, but lots of airspace available to create density. •Innovative construction materials or processes. •Flexible regulations. Take away unnecessary parking requirements and the price per unit goes down $30,000. The market is not delivering the housing we need to create jobs and prosperity outside the real estate sector, not to mention socially bonding mixed-income communities. But as this workshop showed, that can be overcome with determination, ingenuity and compromise – even in Metro Vancouver. Your business may depend on it. Keep that in mind when you vote on November 19. • Peter Ladner (firstname.lastname@example.org) is a founder of Business in Vancouver and a former Vancouver city councillor. His book, The Urban Food Revolution: Changing the Way We Feed Cities, will be published by New Society in October 2011.
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October 11–17, 2011 Business in Vancouver
Mark Milke Gordon Campbell’s character at the heart of the HST referendum failure
n the fall of 2001, I was in the Victoria office of then-B.C. Attorney General Geoff Plant to discuss why the B.C. Liberal government had flipped positions on the Nisga’a treaty. Previously, in 1999, the party, and especially leader Gordon Campbell, had opposed the agreement and had challenged the agreement in court via the BC Liberal party. There were many concerns, not least of which was the likely unconstitutional nature of some Nisga’a treaty provisions. In my conversation with the attorney general, and in response to my query as to why the Liberals changed their position, Plant told me they’d received advice before the 2001 election that the Liberals could not, as government, oppose a treaty in court to which the government of British Columbia was a signatory. And that, said Plant, is why the Liberals
had not promised, in their 2001 election platform, to continue the challenge the treaty in court. Interestingly, in an interview the next day with thentalk show host Rafe Mair on CKNW, Mair asked Campbell a question similar to my query of Plant: why did the BC Liberals and the premier drop their opposition to a flawed and possible unconstitutional treaty? In response, Campbell claimed that he and his colleagues didn’t know that they could not oppose the Nisga’a treaty, as government, until after the election. Campbell’s public contradiction of what his own attorney general told me the day previous was a light-bulb moment. Someone was being economical with the truth. I suspected it wasn’t the attorney general. Here’s the connection to the recent HST referendum: A large reason the HST failed, despite the fact it was
the least worst tax compared with the return of the GST and PST, and despite valiant efforts by pro-HST proponents to sell it, has to do with the character of the man who introduced it and how: Gordon Campbell, after the last election, and his claim it hadn’t been previously considered by his government. The public expects politicians to fib on occasion. But it also expects them not to abuse the privilege. Insofar as Campbell gained a reputation for not always being frank, some it his own fault, some of it the result of hard work by his opponents to demonize him, it became more problematic to say to the public “trust me.” Too many pundits and others have drawn the wrong conclusion from the HST referendum, that the referendum itself was the problem. Wrong. While multiple referendums California-style are problematic and confusing for voters, occasional
referendums on a key issue are useful. In the latter scenario, they are an educational exercise for the public. Also, referendums treat the public with respect, as citizens that are capable of deliberation, instead, as too often hap-
Premier Christy Clark should re-submit the HST to a referendum at the next provincial election pens, as ignorant peasantry to be deceived. Proof of the possibility for educating the public on public policy comes from the recent referendum itself. The decline in opposition to the HST was a result of a vigorous debate over the HST’s merits. And the only reason that happened was because voters had a stake in becoming informed. I’ve seen similar results before in 1992, in debate over
the Charlottetown Accord (the proposed amendments to the Constitution). There, friends who would never previously have thought about Constitution-making began to read and ponder the matter. Besides, B.C. has a proud history of referendums. Voters extended the franchise to women in 1916 and effectively ended Prohibition in 1920. Premier Christy Clark should re-submit the HST to a referendum at the next provincial election. It might just pass as the consequences of an anti-business reintroduction of the PST dawns on more people: jobs will be lost. Regardless, we should be clear about why the HST failed this time, and it’s something the philosopher Aristotle explained long ago. In the Art of Rhetoric,
he asserted that to persuade the public, three things mattered: reason or logic (the facts), the disposition of the audience and the character of the speaker. You can “win” without all three, but the more of those factors on one’s side, the better. Pro-HST proponents had one of those three elements: the logic of the HST was solid. But even after Campbell’s departure, much of the public simply was illdisposed to those selling the HST. Campbell’s too-cute deceit always loomed in the background. That made success difficult. • Mark Milke is the chairman of C2C Journal (www. c2journal.ca), Canada’s journal of ideas. His column appears monthly in Business in Vancouver.
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Daily business news at www.biv.com October 11–17, 2011
Growth in tough times BIV recognizes initiative of B.C.’s fastest growing enterprises
usiness in Vancouver’s annual celebration of the province’s fastest growing companies was held September 27 at the Fairmont Waterfront Hotel. More than 200 people attended the newspaper’s Top 100 Fastest Growing Companies dinner to accept
awards for their inclusion on BIV’s top 100 list and applaud the work of businesses that survived and thrived in extremely challenging economic times. The newspaper’s list of B.C.’s fastest growing companies is ranked by revenue growth over the preceding
five fiscal years. Companies on the list represent a wide range of B.C.’s business community, from technology startups and service businesses to the largest mining and resource companies in the country. Since 1994, the list has
provided a snapshot of the economy’s key growth sectors. It also gives readers insights into what it takes to build a business in good times and bad. Each of the 100 companies on the list received a commemorative plaque. This year, event co-presenter PwC recognized one company on the list with its Pacesetter Award. PwC’s John Bunting presented the 2011 award to Stemcell Technologies Inc. CEO Allen Eaves. •
Gordon Clissold, past-president of the board of governors, CGABC; Edward Downing, director of marketing and communications, CGA-BC; and Cheryl Carter, vice-president, Business in Vancouver Media Group
Richard Bessex, area general manager, B.C. and Alberta, Audi Canada; Janice Frome, marketing consultant, Business in Vancouver; and Corinne Shandley, business development: sales and marketing manager, Canpro Global, No. 67 on BIV’s fastestgrowing companies in B.C. list
Bryan Mavrow, senior vice-president, marketing, First West Credit Union (No. 54); Mark Nishiguchi, COO, CFO and managing partner, Noise Digital (No. 47); and JP Pressey, partner, PwC
David Rowat, CFO, corporate secretary and vice-president, administration, Clevest Solutions (No. 11); Aaron Rallo, president and COO, PNI Digital Media (No. 21); and Robin Jacobs, president, Scott Paragon Screen Printing and Sign Systems (No. 53)
Keith Neumeyer, president and CEO, First Majestic Silver, whose company is No. 14 on the BIV fastest-growing companies in B.C. list
Allen Eaves, winner of PwC’s Pacesetter Award and president and CEO of Stemcell Technologies, which holds the No. 86 spot on this year’s BIV fastest-growing companies in B.C. list
Nancy Mudford, owner of Spa Boutique, sees her company at No. 13 on the BIV fastest-growing companies in B.C. list
Photos: Dominic Schaefer
October 11–17, 2011 Business in Vancouver
Rowland Kelly By Richard Chu
Central role Rowland Kelly’s experience dealing with financial turmoil over four decades has helped him influence
ineteen-eighty-five was a pivotal year in Rowland Kelly’s career. Over the Labour Day long-weekend, Edmonton’s Canadian Commercial Bank went bust, and 27 days later, Calgary’s Northland Bank was forced to cease operations as the fallout from Western Canada’s recession and the burst commercial real estate market bubble overwhelmed the two regional financial institutions. Their collapse created a crisis at the Bank of British Columbia, where Kelly was manager and chief trader of treasury operations. “Overnight, we lost 30% of our funding,” said Kelly. “You can last with negative capital and be losing money, but as a financial institution, you can’t last a day without liquidity.” Over the next several months, Kelly struggled to keep the bank afloat with Canada’s lender of last resort closely watching. “I might be sitting here at my desk, but right beside me was a representative from the Bank of Canada. They were very much involved in making sure we made it day-to-day until we could find a merger partner, which eventually became HSBC.” His six-year stint in the mid-’80s at the now-defunct Bank of BC was Kelly’s longest foray outside the credit union system. But the lessons from his experience in what at the time was Canada’s largest financial crisis have remained with him throughout his career at Central 1 Credit Union, where he retired as CFO and COO on September 30. “There’s nothing like a financial crisis to focus your attention on what needs to be done.” Vancouver-born Kelly graduated from Simon Fraser University in 1969 with a degree in economics and commerce. His first big career break came when he was hired to work in the treasury department of Alcan’s Montreal head office. “For a young kid out of university, it was a blast.” While his career progressed, the violent bombings and high-profile kidnappings during the height of Quebec’s FLQ Crisis overshadowed the
professional opportunities of living in Central Canada. When Kelly and his family returned to the West Coast in 1977, he was introduced to the credit union system when BC Central Credit Union hired him to run its $100 million money market fund. A couple of years later, Vancity lured him away to set up and run its investment treasury operations. He left Vancity to work at the Bank of BC in 1982. But the chance to run the treasury operations for a larger, regional financial institution proved to be a less appealing career opportunity than he had envisioned. After accepting a severance package when HSBC took over the bank, he left banking to become a retail investment broker. But his anticipated independence was short-lived as market turmoil derailed his professional goals. “My retail broker’s licence is dated October 15, 1987. That was a Thursday. The next couple of [trading] days were Black Friday and Black Monday [when the Dow Jones fell 22% in one day].” Fortunately for him, a financial problem at Credit Union Central of Canada created an opening at BC Central, and Kelly returned to the credit union system as director of treasury in 1988. He held that title until 1993 when lending services were added to his responsibilities. In 1998 Kelly took over as CFO for Credit Union Central of BC (CUCBC) and served as its interimCEO from 2006 to 2008. By 2006, he had become the busiest he had ever been in his career. In addition to running CUCBC as interim CEO, he was working on the merger between CUCBC and Credit Union Central of Ontario (CUCO). But the closure of the deal that would eventually create Central 1 was delayed as the asset-backed commercial paper (ABCP) crisis began to unfold in 2007. Chris Dobrzanski, CEO of Citizens Bank and senior vice-president of risk management at Vancity, said Kelly’s long experience in dealing with unexpected market turmoil has
the growth of Canada’s credit-union system
Rowland Kelly: “there’s nothing like a financial crisis to focus your attention on what needs to be done”
influenced his work with the creation of Central 1 and the way he managed his responsibilities as CFO. “If there is one lesson he kept reminding us is that crises can occur. As he moved around in his career, he worked in places that were bigger and provided more treasury challenges, and he brought that capacity for growth and the rigour of risk management required to Central so that growth was sustainable.” Kelly’s career highlight would be the merger that created Central 1. While the merger was a decade in the making, Kelly believes that consolidation of credit union centrals is good for the system in Canada. He’s convinced that larger centrals will be better able to provide additional liquidity to member credit unions through their higher credit ratings and greater access to the capital markets. While Dobrzanski considers Kelly’s retirement a loss for the credit union system, Kelly won’t be leaving the financial world entirely just yet.
He will remain on the board of the Co-operators on behalf of Central 1 and is open to doing a few Central 1 assignments. But Kelly remains confident in the people who will succeed him and the people he’s hired over the years. “If there was a skill I’d mention, it’s being more right than wrong on the hiring front. What’s made the difference is bringing into the organization the talent that’s needed and never being afraid to look at someone and say, ‘They’re a heck of a lot smarter than I am, and I want them here,’ and then letting them do the job.” As to the latest financial crisis, Kelly’s parting advice remained simple: “What’s required is to have a longterm view and to approach it with a certain amount of calm. It’s been going on for three to four years now, so this is unprecedented in a lot of ways. But I think people will just have to be patient and keep a cool head. We’re into a new era.” •
Mission: Laying the foundation for a stronger, more resilient credit-union system Assets: Experience and maintaining a cool head in the face of a string of financial crises over the decades Yield: Creation of the largest provider of wholesale financial services to credit unions in B.C. and Ontario
DiD you miss these recent eDitorial profiles? Andrea Shaw Olympic gains and Twentyten Group challenges Issue: October 4
Richard Day and Diana Douglas Self-Counsel Press celebrates 40 years in publishing Issue: September 27
Warren Roy Global Relay boss mining rich vein of opportunities in data storage business Issue: September 20
Check them out at www.biv.com/profiles
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Business in Vancouver October 11-17, 2011; issue 1146