Business in Edmonton - April 2024

FROM CORPORATE CULTURE TO INDUSTRY INNOVATION, CRYSTAL GLASS SHINES

Providing

Loans

Flexible

Robust

NORTH PADDOCK FARMS

UNEARTHING SUCCESS

by Nerissa McNaughton

Since the 1990s, Alison Davie watched her parents launch and grow North Paddock Farms. They started with sugar beets but in 2000, the farm began growing potatoes. Inspired, Davie obtained an agribusiness degree with the intent to run the farm someday.

“Someday” came sooner than anticipated.

Davie’s parents moved to Nicaragua to work with La Semilla Ministries’ agri-development program. While her parents come back annually to help Davie and her team with the harvest, at 23-years old she and her husband Michael assumed ownership and control of running North Paddock Farms.

“That definitely came with some challenges; it was a few bumpy years in the beginning,” she reminisces.

At a time when many people their age were still figuring out their life’s path, they suddenly had a business to run and employees to manage – full-time.

That wasn’t the only adjustment. The Davies took over in 2013 and shortly after disaster struck, making 2014 North Paddock Farms’ worst harvest on record.

“We had eight inches of rain in the fall and then a killing frost. All harvest we were battling mud and rot. Once harvest was done, we turned around and started washing and shipping right away. I still remember sitting on top of a pile of potatoes with my husband and a few of our key employees thinking, ‘What can we do?’”

Compounding the issue was something all too familiar for the women-led business. People tended to overlook Davie, discount her thoughts and trying to go over her head to talk to her father. Despite being raised in the business and being familiar with the farming community, it took some time to gain acceptance and to have her voice heard.

“It takes a little while for people to warm up to you when you’re young and also a woman,” she says. “People weren’t really sure how to take me at first. However, as people got to know me and what I can bring to the table, it got easier over time. I decided to just focus on being the best farmer I could be and everyone else could just ‘get over it.’

Her skills, leadership, team and success with the farm rapidly helped the naysayers ‘get over it,’ and so did W by ATB, the financial institution’s initiative dedicated to powering possibilities for women in business. W by ATB delivers gender-intelligent practices, solutions and services designed to overcome gender bias across industries.

“I choose to work with W by ATB because my relationship manager, Ryan, likes to come out and understand our operation. Every farm is unique and because he’s been to the farm so often, he knows our crops, our cash flow cycles and our family dynamics,” says Davie. “Since he wants to understand us, we want to work with him. I also appreciate how ATB brings awareness and understanding to the challenges that women face in business.”

She continues, “Additionally, ATB empowers me by helping me have a successful business. I want to run a profitable farm with my husband and with our crew. ATB gives us access to timely funding and that’s a big part of how we succeed because I might need to act quickly on land or equipment as the opportunity arises.”

Despite weather challenges, North Paddock’s potato acres have doubled and the Davies have diversified the farm. In addition to the signature potato crop, North Paddock also grows timothy hay, seed canola, wheat, flax, faba beans and garlic.

Davie also champions the role of local, Alberta crops and their importance in the provincial, national and international food chain.

In 2023, the agri-food sector accounted for 10 per cent of Alberta’s international merchandise exports, amounting to $17.7 billion. Alberta ranks third in agricultural product exports in Canada, following Ontario and Saskatchewan. The province leads in potato and barley production, ranks second in wheat and canola production and holds the top position in beef production.

The primary agriculture sector contributed $6.8 billion to Alberta’s real GDP in 2022, while food and beverage manufacturing generated $4.2 billion. The agri-food sector’s economic impact surpasses several other industries, including information and cultural industries, accommodation and food services, utilities and arts and recreation.

Approximately 75,000 individuals were employed in primary agriculture and food and beverage manufacturing in 2022, representing 3.1 per cent of Alberta’s total employment. The Camrose-Drumheller region notably exhibits a higher proportion, with primary agriculture accounting for approximately 10 per cent of total employment.

Moreover, in 2023, food manufacturing in Alberta yielded over $2 billion monthly, constituting more than 23 per cent of the province’s manufacturing sales. With an annualized revenue of $24 billion, Alberta possesses the third largest food and beverage manufacturing sector in Canada, trailing behind

Davie helps consumers locally and abroad understand the importance of Alberta agriculture, and she does this, in part, by leveraging social media. Her modern approach shows short but impactful, punchy messages combined with colourful photos on Facebook and Instagram that immediately grab and hold attention. From veggie close ups to important information like the value of snow packs for irrigation, from conference coverage to showing off farm tech and instruments, the North Paddock Farms’ social feeds are fun, engaging and educational.

That is not the only way Davie helps promote the importance of Alberta agriculture. She encourages initiatives to inspire and support more women entrepreneurs to attend

“I’d love to see continued support for women to access training, attend conferences and other growth activities. I have attended the Advancing Women in Agriculture conference in the past and I found it a great encouragement for stepping outside my comfort zone and networking with likeminded individuals.”

Davie has overcome it all from a trial-by-fire start in the world of business to gender-based obstacles and even facing down the uncontrollable challenge of bad farming weather. Through it all she took each hurdle and turned it into a building block, growing and nurturing a diverse farm that provides local employment, shines as an example of a successful women-led business and champions Alberta agriculture to the world. With partners like her husband, team and W by ATB by her side, she invites you to watch and see what grows next at North Paddock Farms.

Learn more on Facebook and Instagram (@northpaddockfarms) and learn more about W by ATB at atb.com/womeninbusiness.

ATB is pleased to present a 2024 profile series on the businesses and people who are facing challenges head-on to build a strong Alberta.

TOP: MICHAEL DAVIE, ALISON DAVIE AND ATB RELATIONSHIP MANAGER, RYAN KWIATKOWSKI.

INVESTING IN PHILANTHROPY

Creating a donoradvised fund helped Financial Services Group focus its corporate giving

by Caitlin Crawshaw

Michael MacPhail and Scott Kwasnecha

WHAT IS AN ENDOWMENT FUND?

Endowment funds are established by donors to provide long-term support to the charitable sector. Donors can be individuals, businesses or charities. The funds are invested and every year, a percentage of the value of the funds ECF holds is provided as grants to charities. This results in tens of millions of dollars being put to work in every corner of the charitable sector annually – all while the funds continue to grow and give forever.

of this, donor-advised funds offer businesses flexibility in terms of where they direct their donations each year. “As long as the organization is registered with the government, we can direct funds to the charity or split the funds between multiple charities,” he says.

At FSG, a committee of team members convenes once a year to decide where to allocate proceeds from the fund. In previous years, the committee has chosen causes and organizations with special meaning to their colleagues. After a team member’s family member lost a baby, for instance, the fund supported young mothers who’d experienced pregnancy loss; another year, they supported the Alberta Cancer Foundation as several team members had been touched by cancer (including Kwasnecha, whose father is a cancer survivor).

Kwasnecha prefers this very intentional method of corporate giving. “In the past, I would give money to one cause and then, a week later, I’d get a phone call and wish I’d given money to

that cause instead,” he says. Like many business owners, he and MacPhail believe in giving back, but have to make tough choices as they don’t have unlimited resources. “There are lots of places where our dollars could go — whether to local sports organizations, food banks, or children’s hospitals. It’s sometimes a bit overwhelming,” he adds.

Deciding on an annual basis how the company should focus its corporate giving takes the pressure off of himself and MacPhail, and involves the whole team in the company’s corporate giving. “Charitable giving is rooted in our company culture,” he says. “So, this helps us build on that year to year.”

Having a donor-advised fund also keeps FSG’s philanthropic contributions all in one place and allows them to see how the fund is growing. ECF’s historical investment on returns has been strong, says Kwasnecha, and each spring he looks forward to receiving an annual report detailing the fund’s growth.

“It’s exciting for us to see it grow year to year, and to know that our fund is going to be giving money to certain causes in perpetuity.”

Visit financialservicesgroup.net to find out more about Financial Services Group and the services they provide.

Learn more about how a corporate fund can help establish your company as a community leader, enabling your staff to play an active role in social responsibility at ecfoundation.org

The team at Financial Services Group

Wolfe Cadillac Celebrates Five Years in Edmonton

Photos by Rebecca Lippiatt

Wolfe Automotive Group has been in the industry for over 100 years, making a difference for those that need reliable vehicles backed by outstanding customer service while also making a difference in the community by giving back. Wolfe Cadillac, the first exclusive Cadillac dealership in Edmonton, celebrates five years in May.

Along with this milestone, Wolfe Automotive Group says goodbye and thank you for 40 years of service in the automotive industry to Gary Relling, general manager, as he retires.

Ashley Wolfe, president, Wolfe Automotive Group, shares, “Relling has been an inspiration for all of our team members. His leadership, vision and tenacity have moved our Wolfe Cadillac Edmonton dealership to a premier level. We wish him the best for this retirement.”

Wolfe Cadillac warmly welcomes Nathan Murti to the general manager role. Throughout his career he has developed a passion for automobiles and this has been the driving force behind his professional journey. Over the past decade, Murti has played an integral role within the Wolfe Automotive Group, progressing through various management positions. This experience has led him to step into the role of general manager of Wolfe Cadillac.

Wolfe notes, “When you visit Wolfe Cadillac, you will be met with a friendly and knowledgeable team of product specialists, whose main priority is to make sure that you find exactly what you need. We aim to provide a great purchasing experience and amazing customer service, before and after your purchase. In order to be the best Cadillac destination in Edmonton, we have to offer one of the largest Cadillac selections. We assure you that we have the one that you are looking for and if we don’t, we will find it. At any given time, we have over 100 new and

Nathan Murti and the team.

pre-owned Cadillacs on our lot. Additionally, we are part of a large dealer group and have access to all of their used Cadillacs for our customers.

Wolfe Cadillac has a team of expert technicians that ensure your vehicle stays in great shape thanks to also being a leading distributor of GM genuine parts. Wolfe Wholesale Parts is a division of Wolfe Cadillac Edmonton. A team of dedicated experts assist clients through the ordering and purchasing process. Trust the Wolfe Cadillac service team to provide you the quality you need. The brand also prides itself on its concierge service to fully accommodate customers’ needs and schedules.

“We never fail to execute on the vision of being the best Cadillac dealership in Canada for sales, service and customer satisfaction,” Wolfe concludes. “Expectations are exceeded through the relentless drive of integrity, teamwork and innovation.”

You have successfully built your business. It was hard work to get it going and help it thrive over the years. Congratulations! But now, you are considering your next chapter in life and that means it is time to exit your business.

Many owners aren’t always clear on how to best position themselves for this part of the business lifecycle. Every business is different and the unique complexities of each one means that this journey can look different for each experience.

Entering this multi-year process can be daunting, challenging, complex, and stressful. Given the weight of the effort, some owners leave the important considerations for later, and those delays can reduce the chances of getting the best price and making the best plan for you and your business.

What is the solution? A professional, experienced team who can work with you through the process from start to finish. That is the key! From pre-sale, sale, and post-sale – this team will walk you through it all: a comprehensive plan that includes tax planning, business valuation, marketing your business to buyers, managing the sales process (including negotiations), and determining the best use of the proceeds from the sale for your goals.

The hardest part of the process is finding someone who will buy your business. With access to more than 800+ relationships with domestic and international private equity firms and family offices, and thousands of corporations, the National Bank Financial team, through the Angus Watt Advisory Group, brings their full capabilities across mergers and acquisitions, investment banking, corporate lending, and wealth management to the process.

Maximize the built value in your business with a solid exit strategy. Every business is unique with their special complexities which means that this journey can look different for each experience.

Your key take away: Don’t wait until it’s too late leaving value and opportunity on the table.

57

ECharting a New Course: Empowering Women Entrepreneurs for Economic Growth

very March, we double down and commit to furthering female empowerment. We make pledges, share stories and post commitments in the name of advancing women’s interests in a rapidly changing world. However, I don’t know if we reflect clearly on the impact of those statements.

This year, International Women’s Day had a clear call to action: “Invest in Women: Accelerate Progress.” It beckons us to recognize the transformative power of investing in women, particularly in entrepreneurship, and how it can shape the future of our communities and economies.

In a world where gender equality remains an elusive goal, empowering women as entrepreneurs is not just a matter of fairness, it’s a strategic imperative. The statistics speak volumes. Despite women’s proven acumen as entrepreneurs, a mere 16.8 per cent of small- and mediumsized businesses are owned by women in our country. This represents a significant missed opportunity for economic growth and innovation.

Moreover, recent reports from the Business Development Bank of Canada (BDC) indicate a troubling trend: a decline in entrepreneurship over the past two decades, even as our population has grown. This trend not only stifles economic dynamism but also exacerbates the gender gap in business ownership.

However, amidst these challenges, there shines a beacon of hope. Organizations like Junior Achievement (JA) are actively nurturing the entrepreneurial spirit among young women. Through hands-on programs focused on financial literacy, entrepreneurship and work readiness, JA empowers students to chart their own paths to success.

The impact of JA’s programs is profound. Alumni of the JA Company Program not only exhibit better financial habits but also demonstrate a greater propensity for entrepreneurship. Perhaps most inspiring is the statistic that 70 per cent of female JA alumni believe they can own their own businesses – a testament to the transformative power of mentorship and support.

This is why I was more than excited to launch the SHE Leads movement through Junior Achievement last month; a movement of women mentors and funders dedicated to empowering the next generation of female entrepreneurs. Together, we have the power to change the face of business in our city and beyond.

Our goal is ambitious – to create eight new girl company program groups in 2025, supported entirely by women mentors. This means 120 more girls graduating from JA’s transformative programs, equipped with the skills and confidence to thrive in the world of entrepreneurship.

Investing in women isn’t just the right thing to do – it’s the smart thing to do. By harnessing the full potential of women entrepreneurs, we can drive economic growth, foster innovation and build a future that is truly inclusive and equitable.

So, if you made a post, a pledge or a commitment to International Women’s Day last month, here is my challenge to you: recommit to the cause of gender equality in entrepreneurship. Invest in women, accelerate their progress and together, build a future where every woman has the opportunity to succeed.

CHERYLL WATSON, PRESIDENT & CEO, JA NORTHERN ALBERTA & N.W.T.

Your local Edmonton firm that thinks regionally, nationally, and globally

At APP & Associates LLP, our objective is to provide value added business advisory services including:

Accounting & Assurance | Tax & Estate Planning | Advisory & Consulting

Suite 212, 1524 - 91 Street S.W. Edmonton, AB T6X 1M5

Telephone | 780.489.4424 Fax | 780.489.4420 info@appllp.ca www.appllp.ca

PUBLISHER Business in Edmonton Inc.

ASSOCIATE PUBLISHER

Brent Trimming brent@businessinedmonton.com

EDITOR

Nerissa McNaughton

COPY EDITOR

Nikki Mullett

ART DIRECTOR

Jessi Evetts

jessi@businessinedmonton.com

ADMINISTRATION/ACCOUNTING info@businessinedmonton.com

REGULAR CONTRIBUTORS

Catherine Brownlee

Cheryll Watson

THIS ISSUE’S CONTRIBUTORS

Nerissa McNaughton

John Hardy

PHOTOGRAPHY

Cover photo by Jesse Martineau

ADVERTISING SALES/CUSTOM PUBLISHERS

Layla Jama

780-809-1913

layla@businessinedmonton.com

Mark McDonald

780-886-5545

mark@businessinedmonton.com

Mallery Hewitt

780-809-1924

mallery@businessinedmonton.com

EDITORIAL, ADVERTISING & ADMINISTRATIVE OFFICES

#1780, 10020 - 101 A Ave. NW

Edmonton, AB T5J 3G2

Phone: 780.638.1777

Fax: 587.520.5701

Toll Free: 1.800.465.0322

Email: info@businessinedmonton.com

SUBSCRIPTIONS

Online at www.businessinedmonton.com

Annual rates: $44.10 | $68 USA | $130 International

Single Copy $3.50

Business in Edmonton is delivered to 27,000 business addresses every month including all r egistered business owners in Edmonton and surrounding areas including St Albert, Sherwood Park, Leduc/Nisku, Spruce Grove, Stony Plain and Fort Saskatchewan.

The publisher does not assume any responsibility for the contents of any advertisement, and all representations of warranties made in such advertising are those of the advertiser and not of the publisher. No portion of this publication may be reproduced, in all or in part, without the written permission of the publisher.

Canadian publications mail sales product agreement No. 42455512

TA Rocky Road with Too Many Potholes

BY CATHERINE BROWNLEE, PRESIDENT OF ALBERTA ENTERPRISE GROUP (AEG), CALGARY AND EDMONTON CHAPTERS

he poor state of Canadian infrastructure should be a cause of concern to all levels of government. However, as provincial governments across the country are stepping up to make key infrastructure investments, Ottawa signals that they will continue to inconvenience Canadians on their path to a “better future.”

On Feb. 12, federal Environment Minister Steven Guilbeault said the federal government will stop investing in new road infrastructure, signalling that the Liberal/NDP coalition is no longer content with attacking our industries through increased tax and regulation but are now moving to create roadblocks for vital infrastructure projects.

Guilbeault has decided that existing road infrastructure, “Is perfectly adequate to respond to the needs we have,” although it is unclear what data is supporting that assertion. The Canada Community-Building Fund (the Gas Tax Fund prior to being renamed by the Liberals), has repeatedly dedicated billions in infrastructure dollars to provinces and municipalities to support highway construction, with 58.5 per cent of the fund invested in local roads and bridges from 2005 - 2019. In 2021, Ottawa and Alberta announced a joint investment to twin Highway 15 and 19, dedicating $73 million and $114 million, respectively.

Investments like these are vital in maintaining trade corridors such as the CANAMEX/North-South Trade Corridor, which utilizes 1,150 kilometres of Alberta’s provincial highway network and facilitates approximately $4.5 billion in annual exported goods from Alberta to the U.S. and Mexico.

The federal government halting investment in road construction will have broader implications for our economic competitiveness. If Ottawa worked alongside the provinces to champion infrastructure projects, we could

position ourselves to attract further strategic investment via trade corridors.

An example of recent key infrastructure investments is the province’s investment to twin Highway 3, expanding a vital trade route and enabling investment for agriculture and agri-food processing in southern Alberta. The government of Alberta spent $31 million on the project in 2023, with an additional $63 million forecasted to be spent between 2024-2025.

The obvious ancillary of investing in new road infrastructure is that Albertans would all be able to get where we need to go faster instead of wasting time and fuel idling in heavy traffic. Less time spent commuting and more time would not only improve productivity but decrease fuel consumption.

Ottawa’s decision to halt new road infrastructure investments should raise alarms. The Liberal/NDP coalition’s move to discontinue funding for vital projects threatens Alberta’s prosperity and exacerbates existing challenges in product distribution.

What the Liberal/NDP coalition refuse to see is that Canada must continue to build and expand trade corridors to meet growing demand. As Albertans and Canadians, we must demand our federal government increase investment in roads specifically but infrastructure generally. These vital investments have broader impacts on economic competitiveness and failing to make appropriate investments will hinder economic resilience. This policy will be yet another pothole in the road to success, impacting businesses that are already struggling with high regulation and increased operating costs.

211: Support for Workforce and Community in the Alberta Capital Region

In collaboration aimed at enhancing community and workforce support systems, United Way of the Alberta Capital Region, Canadian Mental Health Association –Edmonton Region and Distress Centre Calgary proudly highlight the essential service of 211. This service, pivotal in connecting individuals to a wide range of social and community services and support, is now more vital than ever, with the 2023 statistics revealing a significant increase in community needs.

The 211 code is accessible around the clock by phone, text and online and has become an indispensable resource for those seeking assistance in the Alberta Capital Region. It offers instant access to a vast directory of social, government and health services, addressing needs from mental health support and employment services to housing and more.

In 2023 alone, 211 Alberta responded to nearly 79,000 calls, over 4,400 live chats, 3,300+ text inquiries and had more than 280,000 website visits. There was also a notable rise in demand related to specific needs, with housing and shelter inquiries increasing by 59 per cent since 2021 and mental health and substance use inquiries by 44 per cent.

The United Way of the Alberta Capital Region’s role in this partnership is crucial, ensuring that 211 remains a robust source of support for both individuals and businesses in the community. By collaborating with the Canadian Mental Health Association – Edmonton Region and Distress Centre Calgary, United Way enhances the service’s reach and effectiveness, emphasizing a shared commitment to creating a supportive, resilient community.

This collaboration and the service it provides are integral to the health of Edmonton’s workforce and the broader community. Businesses across the region are encouraged to promote 211 as a key resource, contributing not only to the well-being of their employees but also to the overall wellbeing of the community.

“The 211 code is more than a service; it’s a lifeline for many in our community,” says Stephanie Wright, director, 211 Alberta. “Our partnerships ensure that everyone has the support they need when they need it. Together, we’re building a stronger, more connected Edmonton.”

Businesses and organizations in Edmonton and beyond are invited to join in this vital effort by raising awareness of 211 within their networks. Their involvement is critical to enhancing the comprehensive support system that 211 and its partners provide throughout the Alberta Capital Region. For more information on 211 and its array of services, visit https://ab.211.ca/.

Code

Red Safety & Rental LLC, HazTek LLC (formerly HazTek Inc.) and Concept Controls Inc. join to form Paradigm HSE

Led by CEO, Nick Mowbray and an executive team including Cody Stelly (CFO), Chris Chism (EVP operations) and Jacob Spector (VP of strategy & marketing), Paradigm has a vision to change the way organizations think about health, safety and environmental (HSE) performance.

Paradigm will function as a parent company and shared services group to the three individual operating entities that make up its pillars.

Paradigm’s pillar companies look to provide a shift in the way HSE stewardship is offered by continuing to develop tech-forward and innovative solutions delivered through the strength of true partnership. For over 30 years, customers have trusted Paradigm companies to help them find the best solutions for their workplace challenges.

It is this history and intense interaction in health, safety and environmental services that allow this group to bring proven best practices, collaboration and innovation to work sites across all markets and sectors. The Paradigm pillar companies will continue to be led by the legacy leadership teams that clients have come to know and trust.

Code Red Safety (CRS) will continue to be led by president Jeremy Dean. Since its inception in 1994, it has been the leader in supporting operators and contractors in the Gulf, mid-west and western United States. CRS, with its affiliates Turnaround Logistics and Critical 2-Way, will continue to provide the leading offering in HSE products, rentals, turnaround solutions, rescue solutions and confined space monitoring solutions coast to coast across the United States.

Concept Controls (CCI) will continue to be led by president Christina Ciampanelli. Since its inception in 1992, it has been the leader in providing and servicing portable gas detection, fixed gas detection, fall protection, industrial hygiene and environmental monitoring across Canada.

IT IS THIS HISTORY AND INTENSE INTERACTION IN HEALTH, SAFETY AND ENVIRONMENTAL SERVICES THAT ALLOW THIS GROUP TO BRING PROVEN BEST PRACTICES, COLLABORATION AND INNOVATION TO WORK SITES ACROSS ALL MARKETS AND SECTORS. THE PARADIGM PILLAR COMPANIES WILL CONTINUE TO BE LED BY THE LEGACY LEADERSHIP TEAMS THAT YOU HAVE COME TO KNOW AND TRUST.

CCI, with its affiliates Detection Measurement Solutions, Multigas Detection, Valley Technologies and Innovative Fall Protection, will continue to provide these offerings from coast to coast across Canada and the United States.

HazTek will continue to be led by president and founder Steve Jones. Since its inception in 1997, it has become the leader in providing outsourced safety management, consulting and training in the United States. HazTek will continue to provide these offerings from coast to coast across the United States and at international locations, as requested by its global customers.

Paradigm will serve the U.S. and Canada from its 20+ brickand-mortar locations and specialty operating divisions. This is just the beginning of the journey and more will be announced in the coming weeks and months. Until then, learn more about Paradigm by visiting www.paradigmhse.com or following on social media including LinkedIn, Facebook and Instagram.

BSuccession & Transition in Professional Partnerships

GREGG BECKER, PRESIDENT, PREDICTABLE FUTURES INC

usiness partnerships have an ebb and flow of participants over time and professional partnerships (like accounting, law firms and engineers) are usually owned by leaders who are experts in their fields and who (understandably) have good confidence in their own intelligence, skills and abilities. These businesses also have an added relational component that is unique and different than a traditional employer-employee relationship.

Unfortunately, partners moving in and out of the business is not something most professionals do on a regular basis and they are generally not experts in how to do this well. What’s more, since partners are often equals in their shareholdings, the power dynamic of making such decisions, especially when individual partners have conflicting ideas, can become a challenge.

Professional partnerships need an efficient mechanism to move partners in and out of the shareholding structure in ways that help each of them reach their goals while protecting the business. When the rules for transitioning people in and out are not clear or appropriate, partners can become stuck or get into conflict. This can also create a major challenge inside the business, since the partners are also often the senior leadership team.

Before engaging in decision making on partners entering or leaving the business, it is critical that a company and ownership strategy be in place to identify the goals the business and partners have over time. This strategy can then inform the many decisions that need to be made about partner succession and its impact on the business. A good process is also needed to engage in conversations and decisions which are not a normal part of the operating business. The usual management or owner meetings

and processes are not designed to do this. Further, since development of new partners and exit of existing partners takes time to do smoothly and well, there needs to be adequate time allowed to move through the decision-making and change processes.

A key aspect of effective partner succession is getting alignment across the partner group – on the strategy, on the needs for partners (coming or going), the plans and timing to make the changes in the partner group and the accepted impacts for the business of making the transitions. Technical components of partner succession (partnership agreements, buy/sells, tax strategy, corporate structures, etc.) are generally well understood by lawyers, accountants and others who work in these areas and tend to be relatively straightforward.

However, the missing pieces are generally upstream of such technical work and the transactions involved in succession. Getting the strategy right, having a good process to maintain partner relations and creating true alignment all take time and are hard for partners to manage themselves. An objective facilitator can make the process more effective, smoother and faster for all.

Changing partners within a partnership group usually creates a significant shift in ownership and leadership and has far-reaching impacts for the business. It is worth doing well and planning thoughtfully, in line with the strategy for the business and its owners and mindful of implications within the operations. What’s more, the relationships of the partners are often decades in the making and succession is worth doing well as a way of honouring those long relationships and years of work.

THE 2024 CLOSE-TO-EDMONTON MARKET

IT’S ABOUT FAMILIES AND INVESTMENT

BY JOHN HARDY

Recent stats show that the close-to-Edmonton recreational property market – from west of Stony Plain to the Pembina River and from Lake Wabamun to Isle Lake and Lac Ste Anne – is somewhere between stable, strong and hot.

Some reasons are pandemic and post-pandemic bumps of interest in being outdoors, the power of Wi-Fi and working from remote locations, inflation, the economy, benchmark prices and spiked mortgage rates, high demand and low supply.

According to national trends and numbers in the late-2023 Royal LePage (RLP) Winter Recreational Property Report, 24 per cent of RLP experts reported a decline in buyer demand, mostly due to climate factors or environmental disasters after an unprecedented wildfire season. However, more than 40 per cent reported an increase in inventory, as a direct result of rising interest rates.

Close to home, Edmonton recreational property specialists Charlene Anderson and Kelvin VanDasselaar at ReMax Edmonton Lake Property point out that, while hiked mortgage rates haven’t noticeably impacted Edmonton area recreational properties, some increasing prices, particularly for lakefront properties, can be attributed to the availability of modern, updated and new homes now on the market.

The always-popular lake properties close to Edmonton include Alberta Beach, Wizard Lake, Buck Lake, Jackfish Lake, Lake Isle, Pigeon Lake, Skeleton Lake and Lake Wabamun.

“It’s really not so much about mortgage rates and spiking prices when it comes to recreational properties,” Anderson explains. “In the Edmonton vicinity, we have been more affected by regional local weather. Last year we were especially impacted by the fires. While most of our areas were not directly burnt, we were affected by smoke, road closures and the general uncertainty of what would burn

next. We were also affected by the fact that we did not have a lot of rain/snowfall and saw some of our lake levels drop significantly. Despite the challenges, the market tends to rebound quickly once uncertainties clear.”

VanDasselaar notes that, while the recreational market is not dramatically changing either up or down, it may be shifting.

“We aren’t seeing a huge increase in buyers coming to Lake Country,” he says, “but we’re noticing that it may no longer be as much of a seasonal business. Sales have definitely been brisk through the non-traditional recreational property market months, like November to April.”

According to 2023 stats, Lake Wabamun had 12 lakefront sales at a median sales price of $954,000 and 13 off-lake sales with a median sales price of $325,000. Since the pandemic, the Lake Wabamun market has been consistent and steady.

Last year, Lake Isle had 10 lakefront sales at a median sales price of $447,500 and 40 off-lake sales (seven raw land) with a median sales price of $209,000. Lac Ste. Anne had 13 lakefront sales at a median sale price of $545,000 and 47 offlake (11 land sales) with a median sales price of $270,000.

Tom Shearer, broker/owner of Edmonton’s Royal LePage Noralta Real Estate notes that waterfront property has particularly increased in value since 2019.

“Pigeon Lake, for example, went from $603,963 to $620,099, likely due to brisk activity with a fair amount of turnover of more properties and some owners coming from places farther away, like Calgary.

“The trending shows that last year, two things may have slowed Edmonton’s recreational market. First, as COVID travel fears subsided, people felt more comfortable traveling overseas or farther away. Also, increased values and higher mortgage rates pulled some buying power away from second homeowners.”

From much experience, he adds that one of the biggest things holding recreational property sales back is the lack of overall supply.

“There just isn’t that much that comes to the market or what gets turned over. In many popular recreational property areas, it could take years for the right property to come along.”

“WE AREN’T SEEING A HUGE INCREASE IN BUYERS COMING TO LAKE COUNTRY,” SAYS VANDASSELAAR, “BUT WE’RE NOTICING THAT IT MAY NO LONGER BE AS MUCH OF A SEASONAL BUSINESS.

The sales and listing stats and trends are testimonials to the continued popularity of recreational properties, for lifestyle as well as investment, although there seems to be a generational shift about how the trends may be shifting.

Statistics Canada highlighted the fact that the Canadian population is changing, due to Baby Boomers getting older and immigration boosting numbers in the younger generations. The changes are translating into shifts in the labour market, services to seniors, the consumption of goods and services, as well as housing and investing in recreational properties.

For the first time since the end of the Baby Boom, Baby Boomers – who were born between 1946 and 1965 – now make up less than a quarter of Canada’s population. In most aspects of Canadian life, it’s Gen X’s turn.

Last year’s ReMax Cottage Trends Report showed that Gen Xers (now 43 - 58 years old) are driving demand in 91 per cent of surveyed recreational property markets. More than 51 per cent of Canadians who owned recreational property were motivated by the chance to pass their real estate assets down to children or other family members.

Some things never change. Seasoned realtors and financial planners caution that a recreational property is a big responsibility, about mortgages, maintenance and extra taxes. They also emphasize that a recreational property is almost always an emotional purchase for family enjoyment, not investment value.

Unlike primary properties and other investments, recreational properties should be considered as longterm investments.

“THE TRENDING SHOWS THAT LAST YEAR, TWO THINGS MAY HAVE SLOWED EDMONTON’S RECREATIONAL MARKET. FIRST, AS COVID TRAVEL FEARS SUBSIDED, PEOPLE FELT MORE COMFORTABLE TRAVELING OVERSEAS OR FURTHER AWAY. ALSO, INCREASED VALUES AND HIGHER MORTGAGE RATES PULLED SOME BUYING POWER AWAY FROM SECOND HOMEOWNERS,” SAYS SHEARER.

Realtors and financial advisors urge defining goals about recreational property investing. Will it be for personal and family relaxation? Or for rental revenue to cover costs?

Overall, the recreational property market is known for its potential to appreciate in value over time. Anderson emphasizes that recreational properties usually offer solid returns for sellers and the market has shown steady growth since 2012, making it a reliable long-term investment option.

As spring 2024 begins, what’s ahead for close-to-Edmonton recreational properties? Shearer foresees a strong market that will hold its value and cautions that the market may not see the same kind of activity as with Edmonton’s multi-family real estate.

Anderson is optimistic that, “So far this year we have been busier than normal in comparison to years past, partially due to the mild winter and because lake sales are directly impacted by weather. It’s early but 2024 looks to be great, if not better than last year – although there is a possibility that we could be impacted by the low snow and rainfall causing more local fires.”

ABOVE: TOM SHEARER, BROKER/OWNER OF EDMONTON’S ROYAL LEPAGE NORALTA REAL ESTATE.

CLEAR Crystal

FROM CORPORATE CULTURE TO INDUSTRY INNOVATION, CRYSTAL GLASS SHINES

BY NERISSA MCNAUGHTON

You know the name Crystal Glass. It is one of – if not the – most recognizable local names in its industry, with 50 regional retail stores, 11 warehouses, two manufacturing facilities and a commercial glazing division. In 2022, Crystal Glass opened its largest flagship warehouse in west Edmonton, a 100,000-square-foot facility that is a milestone addition to the growing brand – a brand that has been growing since 1949 when Ed Bean opened the first Crystal Glass shop on Whyte Ave in Edmonton.

In 1997, general manager Ken Franczek joined Crystal Glass.

“I started as a customer service representative,” says Franczek. “I had been working with a smaller glass company in the city but felt a lack of opportunity. A number of people suggested that, if I was interested in this industry, I should go to Crystal Glass.”

The reputation of Crystal Glass as an employer with a great workplace culture, employee-focused education and opportunities for ambitious workers proved true. When Franczek started there were about 400 employees across the brand and he puts it, “I was the most junior on the list.”

In 2008 that changed when Franczek, who had worked his way up the ranks over the years, was given the title of general manager.

“Crystal Glass has always been a business that has a history of moving people up if they showed promise,” he says. “They absolutely did that for me and we still do that for others today. This is one of the very few companies left out there,

I would suggest, where you could start at the bottom and work your way to the top. I’m proof of that.”

As the GM, Franczek knows the value of every single member of his team. From maintenance services and customer service reps to technicians, he believes everyone is equally important as the leadership group. His management style is one of relatability and approachability. His door is always open unless he’s in a meeting and he values the input of his team members.

“Any senior manager who thinks they know better than the group on your front line is mistaken,” says Franczek. “It’s so important to get out there and experience what they do and stay connected.”

Franczek also highlights the longevity of the team members, with the average tenure being over 25 years and many retiring after 45+ years of service. He himself is a testament to this longevity, having joined Crystal Glass in his early 30s with the intention of moving on after a few years but finding himself still happily there after more than two decades.

“When you become a member of this team, it is highly likely that if you have drive, you will not want to move on,” he shares.

Franczek continues, “Given that we were founded by Ed in 1949 and this was family run and owned for decades, back during the transition where Ed began the process of succession and introduced an opportunity for employees to become owners and by shares, we have one foot very firmly planted in our past. We still have the feel of a family business

LEFT: KEN FRANCZEK, GENERAL MANAGER, CRYSTAL GLASS.

PHOTO SOURCE: JESSE MARTINEAU

that comes with traditional owner-operator values. Yet the other foot is progressively stepping forward into the future, allowing growth and our employees to share in the success.”

There is an irony to all that success, however. What the brand is best known for only makes up a portion of its many products and services.

“We are known for auto glass,” Franczek confirms. “When anyone thinks about Crystal Glass, they focus on auto glass! But we have many other services!” He chuckles, “They always seem to come back with ‘I didn’t realize you did that,’ when they hear about our interior glass, custom shower doors, railing systems and sealed unit replacements for retail businesses. We are constantly attempting to address this in our marketing but it’s an uphill challenge.”

There is another challenge that Crystal Glass is trying to dispel by leveraging proprietary employee training and customer education.

“In our industry,” says Franczek, “it is important that customers do their research if presented with a price that

seems too good to be true – there is a reason for that. In Alberta, there are no governing bodies for the training of windshield auto glass installers. This means anyone can open a business and claim to install windshields. Recognizing this lack of governance, we took matters into its own hands and created our extensive training program, dubbed Crystal College.

“We ensure the quality being put into someone’s vehicle exceeds standards. If you wouldn’t let someone work on your brakes, you shouldn’t let them work on your windshield. It’s just as important of a safety component.”

Franczek also emphasizes the importance of trust in a business.

“There is something to be said for the brick-and-mortar, 75+ year business that will take care of you before, during and after. Does it cost more to do business than a tent in a parking lot? Yes, but the difference is the guarantee, the workmanship and most importantly, the safety of you and your passengers.”

PHOTO SOURCE: PRODUCTION WORLD

Crystal Glass, which employs over 600 staff across Western Canada, attributes its success to several key factors. Among them is the aforementioned Crystal College, which ensures highly qualified technicians are at the helm of every job.

“We invest a lot of time and dollars to ensure once a customer experiences us, they return over and over again,” Franczek smiles. “I also never take for granted the strength of the brand and the fact that the company has existed for over 75 years. We have generational customers. When you have your first vehicle, you go to the people you trust, mom and dad, and they recommend us. As big as we get as we continue to grow, we ensure that we still have that ‘community glass shop’ feel and the same level of service and feeling of welcome for every generation.”

While Crystal Glass is known for its expertise in the industry, it’s the company’s philanthropic efforts that truly set it apart. The commitment to giving back to the community is deeply ingrained in the culture, thanks to the influence of Ed, the founder.

“In my earlier years, I didn’t fully understand the value of giving back to the community,” admits Franczek. “But with hours spent with Ed, he made it clear how important this is. Now seeing it in action, I understand. Philanthropy is one of the foundational cornerstones of the organization. The company gives from the heart, without any expectation of recognition or reward. Ed made this very clear to me during our time together: ‘Do it because it matters.’”

Crystal Glass supports hundreds of different organizations at various levels. From helping schools in challenging areas with projects to supporting inner city youth through the Crystal Kids Youth Centre, the company makes a difference in countless ways. Women and children in crisis are a key focus for Crystal Glass. The Crystal Kids Youth Centre, for example, began as Gordon Russell’s boxing club. Today, it no longer offers boxing. Instead, it has transformed into a fully functional kitchen for meal support, counselling and city police partnerships.

While it doesn’t go out of its way to tout its philanthropy, it is a key part of Crystal Glass’ identity.

“It’s about building a stronger community and making a difference where it counts,” says Franczek, “We do it solely because we know it needs to happen.”

His experience in Edmonton’s charitable and corporate communities locally and across Western Canada gives Franczek a unique view, and plenty of optimism about Alberta’s diverse opportunities. He has a deep appreciation for the business community in Edmonton, where the

company is headquartered. He finds the community to be very accepting, especially towards those who are genuine and honest about their intentions.

“In my own experience, as I was entering into an executive level and found myself in rooms with other business leaders, I found them to be very welcoming and accepting,” he says “As equally accepting as they are, if you are not a straight shooter, if you are not honest or who you say you are, you will not last very long in this community.”

When it comes to the modern Alberta Advantage, Franczek believes that energy remains a cornerstone of Alberta’s economy. However, he is excited by the emergence of the tech sector in both Edmonton and Calgary.

“I still believe that energy is a cornerstone of Alberta and I don’t believe that will change. That being said, it is exciting to see a lot of tech emerging from Edmonton and Calgary. We are seeing brilliant young minds from development to software. That is what the province needs to invest in to continue to grow,” he notes.

In addition to the tech sector, Franczek is also thrilled to see growth in Alberta’s arts scene. From live entertainment to the film industry, he sees the arts as an increasingly competitive and vibrant part of Alberta’s economy.

As he reflects on his journey with Crystal Glass, Franczek expresses a deep sense of pride.

“This brand carries so much tradition and respect in our markets. For me personally, being given the incredible opportunity to lead such an iconic brand is a feeling of honour. I don’t even know how to describe it. When I’m asked by the few that don’t know what I do and I say I’m the GM of Crystal Glass, that is recognizable and respected. By proxy, they give me that respect and that fills me with pride.”

Franczek is excited about the future of Crystal Glass and is committed to continuing its growth. He extends his gratitude to the customers, vendors, suppliers, and communities that Crystal Glass serves.

“Thank you for supporting us. Thanks for continuing to support us. You are impacting the livelihoods of real everyday Albertans and we appreciate it. Every day we are looking to grow. Every day we are looking at new opportunities and new demographics. Just stay tuned. We are far from finished and will continue to innovate in the glass industry, empower employees and give back to Western Canada and beyond.

Learn more about Crystal Glass online at crystalglass.ca. The company is also active on Facebook, X and Instagram.

ABOVE: FOUNDER, ED BEAN.

A DIFFERENT KIND OF SUCCESSION PLAN

EMPLOYEE OWNERSHIP IS A GROWING TREND

BY NERISSA MCNAUGHTON

Succession planning. Those words bring to mind the family business being passed down to the next generation. However, that is not the only option. A practice that is rapidly gaining in popularity is transitioning established corporations to employee ownership – and there are many different ways to do this.

Rachel Bachmann, board chair, Employee Ownership Canada, explains, “New legislation for Employee Ownership Trusts (EOT) is coming into effect this year.”

An EOT is an employee ownership structure where a trust retains a business’ shares for the advantage of the company’s workforce. This arrangement allows employees to indirectly acquire the business, eliminating the need for them to directly finance the purchase of shares. For those owning the business, an EOT offers an alternative strategy for planning their succession.

Employee Ownership Canada used to be known as ESOP Canada, but with EOTs coming into play, along with the other existing models for employee ownership, they changed their name to better reflect the range of options and the services they provide to business owners and their teams.

Bachmann continues, “We educate and assist anyone interested in employee ownership, including employee share purchase plans (ESPPs), stock options, employee stock ownership plans (ESOPs) and more. We encourage people to look at new legislation coming in for employee ownership trusts and learn about the many benefits of selling to employees rather than to private equity.”

EMPLOYEE OWNERSHIP CANADA USED TO BE KNOWN AS ESOP CANADA, BUT WITH EOTS COMING INTO PLAY, ALONG WITH THE OTHER EXISTING MODELS FOR EMPLOYEE OWNERSHIP, THEY CHANGED THEIR NAME TO BETTER REFLECT THE RANGE OF OPTIONS AND THE SERVICES THEY PROVIDE TO BUSINESS OWNERS AND THEIR TEAMS.

ABOVE:

Arnold Strub, Employee Ownership Canada’s executive director, adds, “People should know that almost every employee ownership plan is the same in many ways, but also different in many ways. All plans seek to attract and retain employees and facilitate a smooth succession. However, your goals will determine what type of plan will work the best. Employee ownership presents a wide spectrum of options. We help business owners find the tools that work best for what they want to achieve.”

No matter which plan is chosen, the benefits are numerous. “Employee ownership is beneficial for employees as they acquire equity,” says Bachmann. Employees like to actively participate in the company’s growth, benefit from the hard work they are doing and see the benefits of that in the return on their shares as owners. From the employer side, when employees are thinking like owners, they think more long-term, make better

decisions and are more invested because they can get something back. Companies that are employee owned are more productive and bounce back faster after downturns.”

Many business owners put off succession planning because they think it is a long, arduous, drawn-out process. However, that does not have to be the case.

“It all depends on the model,” Bachmann says. “In some cases, it’s as simple as setting up a holding company or a trust. It can happen quickly. The important part is to have the right partners – a good legal team and a good tax team to support you and to ensure you are asking the right questions. You have to take into account that the process may not take long but getting the team on board and educating them can take the most time.”

“It is key to create trust in the relationship,” Strub adds. “That is, open communication because you are sharing

RISK RELATIONSHIP EXIT

Predictable Futures helps private companies navigate the challenges that come with transition and succession. We provide a proven process that covers off issues of leadership, ownership, business and family that come up while on the journey.

For over 35 years, we have guided business owners successfully through transitions, enhancing the value of their companies while protecting the family and other stakeholders. It’s what we love to do.

A COMPANY-ISSUED PRESS RELEASE STATES, “ARGUS’ FULL BROAD-BASED ESOP WAS LAUNCHED IN

JANUARY 2022, WITH INCLUSIVITY

BEING THE NEW STANDARD, WHERE EVERY EMPLOYEE IS INVITED TO PARTICIPATE.”

business and financial information with employees. It takes time to build a new employee culture. Typically, it takes a couple of years to do a culture shift and get everyone on board, but this step is very important.”

Employee Ownership Canada routinely runs conferences to help business owners and their teams understand the many modes of employee-led succession. Last year’s conference in Edmonton was very successful and attended by teams locally and from across Canada.

One of the presenters at the Edmonton conference was Marc Lacoursière, president of The Achievement Centre. His talk addressed the soft skills necessary for a successful transition to employee ownership.

“One of the reasons we work with those interested in employee ownership is because organizations will go down this path but need to know how to invest in their people to increase their skills and get higher engagement. There is massive demand and growth in this employee ownership space. While we are one of many providers that teach complementary soft skills that help with the transition, we are proud to have more than 40 years of experience. We are one of the few that have developed our knowledge over several decades, so we are able to integrate a lot of cultural, societal and D.E.I (diversity, equity, inclusion) shifts into what we teach.”

Lacoursière is happy to see that employee ownership is a growing trend.

“What I have noticed over the years is that the conferences I have attended seem to be building a groundswell of support. More companies that have been involved for a longer period of time are becoming great advocates and proof that organizations who invest in employee ownership have better success, engagement, longevity and better succession planning, which is a big issue for lots of businesses. Owners, demographically, are getting to that point and need a transition strategy.”

His talks address how engaging employees actively in learning new skills is a key factor in success – including for succession planning. Another benefit is how employee ownership naturally enforces the values of D.E.I.

“This structure broadens diversity; it’s naturally going to happen,” Lacoursière says. “We are seeing how employee ownership introduces a multi-owner business structure that broadens the generational perceptive.”

“However,” he cautions, “During and after the transition to employee ownership you still need to think about your organizational strategy and your growth model. You still have to find support and help to develop those areas and that is where the demand is increasing for the development of people and growth services.”

One company that has taken all this on board and succeeded is Argus.

In 1958, Argus was a small manufacturing plant in Edmonton. It has since grown substantially in capabilities and product lines and now operates out of two facilities (Edmonton and Nisku). In 2010, the two founding shareholders expanded shares to a group of 13 employees. In 2021, the offering was expanded to the leadership group and in 2022, it was offered to all of Argus’ employees.

A company-issued press release states, “Argus’ full broadbased ESOP was launched in January 2022, with inclusivity being the new standard, where every employee is invited to participate. The goal is not a transition or exit strategy but a responsibility of stewardship, where the shareholders take care of the company and leave it stronger for the next generation. The ESOP provides stability, predictability and a smooth transition for company leadership. It also ensures that corporate values instilled by founders will not be forgotten or sold off.”

The rollout of the process included information sessions, opportunities for communication and collaboration and plenty of transparency.

“Argus values its employees, embracing diversity and the benefits it brings. Innovation and progress are achieved through valuing the ideas of its people, two-way communication and being open to change. Argus’ legacy ESOP program provides a stable future for the company and its employees, ensuring a personal interest in the

success of the company and a greater sense of job satisfaction,” says the press release.

Over at Employee Ownership Canada, Bachmann and Strub are excited about what the future holds and they invite Western Canadian business owners and their teams to join May’s 2024 Conference in Montreal.

“The conferences are a great place to network with those thinking about employee ownership, those doing it and the service providers that can help you,” Bachmann concludes. “More and more people do not want to take over their parent’s companies and more employers are looking to keep their business local and not have their operations moved offshore. Employee ownership is a great way to keep your legacy going.”

Succession Planning

We get to know your needs, along with the issues and opportunities you’re facing, ensuring you leave the kind of legacy for your family and business that you intend.

Contact our team of Trust & Estate Practitioners to help with all aspects of wealth preservation and wealth transition.

felesky.com

EDMONTON’S TRANSITIONING COMMERCIAL MARKET

DEALING WITH THE SPEEDBUMPS

BY JOHN HARDY

While Edmonton’s commercial real estate market continues to transform itself and trigger renewed momentum, it is also dealing with lingering challenges and unavoidable speedbumps. Factors include economy and interest rates; work-from-home (WFH) and other post-pandemic workplace trends; the changing wants, needs and expectation of commercial tenants and their employees and the sad but negative Edmonton downtown image and perception of homelessness and on-the-street social and safety issues.

Although actual Edmonton commercial real estate stats and trends are fluid and changeable, there are 283 office buildings in Edmonton, accounting for a fluctuating total of more than 25 million square feet. The city’s 2023 downtown vacancy rate dropped slightly from 13.7 per cent to 12.4 per cent by the end of the year.

“While some other reports show significantly higher vacancy rates, those figures are not based on complete data as they do not account for all downtown office properties,” explains Chad Snow, president and broker at Edmonton’s NAI Commercial Real Estate. “Many of the data sets are based only on buildings that historically lease, while omitting owner-occupied buildings.

“WHILE SOME OTHER REPORTS SHOW SIGNIFICANTLY HIGHER VACANCY RATES, THOSE FIGURES ARE NOT BASED ON COMPLETE DATA AS THEY DO NOT ACCOUNT FOR ALL DOWNTOWN OFFICE PROPERTIES,” EXPLAINS SNOW.

“Regardless of how surveys are compiled, all vacancy numbers quoted do not speak to what the industry calls ‘shadow vacancy,’ which is space that is collecting rent but is simply not being used. This shadow vacancy is related to the new work-from-home standards and reluctancy, for various reasons, to return to a full work week in the downtown core.”

Edmonton’s commercial real estate number crunchers agree that post-COVID workplace transitions, WFH and the gradual back-to-theoffice normals continue to impact leasable space, absorption and rates in Edmonton’s commercial real estate market.

“While there’s no question that workplace needs and behaviours have evolved, there is strong evidence that many employees are returning to the office,” notes Cory Wosnack, principal and managing director at Edmonton’s Avison Young. “There’s positivity and Edmonton’s office market closed 2023 with a total absorption of over 234,000 square feet, marking the most positive absorption since 2018.”

Positive absorption means more space was leased than was vacated.

According to stats, transactions and activity surged for properties in or near the ICE District, highlighting a shift

in the area’s real estate dynamics. A key example is Henry Singer’s relocation to Stantec Tower’s main floor.

“It is a testament to retailers’ confidence in the region, further enhancing the district’s appeal,” Wosnack says.

Conversion from commercial to residential space is a hot trend in many major markets throughout North America. Edmonton is no exception. For building owners and developers, it is an opportunity to convert an underperforming asset into a performing asset.

“THERE’S POSITIVITY AND EDMONTON’S OFFICE MARKET CLOSED 2023 WITH A TOTAL ABSORPTION OF OVER 234,000 SQUARE FEET, MARKING THE MOST POSITIVE ABSORPTION SINCE 2018,” SAYS WOSNACK.

“There are pros and cons about conversions,” Snow explains. “While there are obstacles around building codes and practical concerns in converting buildings designed for a commercial into residential, it will happen where it’s viable. However, conversions are costly and not all buildings convert well. The process is also time consuming.”

Edmonton just completely overhauled zoning bylaws as of January 1st, which seems to be solving many problems that existed under the former zoning system. The city has lingering building code issues and residential standards when it comes to downtown conversions, but it is happening.

Examples include conversions like Peak Tower, which already had the potential for hotel elements built into the design. Newly built residentials like Qualico’s tower in the Stations Lands are also creating downtown activity.

However, real estate professionals and Edmonton community leaders acknowledge a sad but real factor which is not so easy to manage. The urgent, tragic social reality, the facts and causes and the public safety risk and perception surrounding Edmonton’s homeless situation.

“In a city as prosperous as Edmonton, in a province as wealthy as Alberta, no one should think it’s acceptable to have people living in squalid tent encampments,” says Doug Griffiths, president and CEO of the Edmonton Chamber of Commerce.

“We do have makeshift encampments in our city. They are more than just eyesores. Officials with the Edmonton Police Service (EPS) say they pose a public safety hazard with serious risk of injury or death to those who live there and to anyone in the downtown core. One EPS official told me there are as many as 800 encampments (each with eight or more tents/structures) scattered across Edmonton. The encampments are a stark reminder of the growing homelessness problem and how our various levels of government have not been up to the challenge.”

Griffiths emphasizes that earlier this year, the Alberta government announced it would pay for 150 new emergency shelter spaces in northeast Edmonton, increasing the number of shelter spots in the city to almost 1,500 spaces.

ABOVE: CORY WOSNACK, PRINCIPAL AND MANAGING DIRECTOR AT EDMONTON’S AVISON YOUNG.

“IT’S A VERY REAL AND URGENT,” WARNS HUGHES. “DOWNTOWN’S HOMELESSNESS AND ADDICTION IS A SAFETY ISSUE, PARTICULARLY THE WAY IT IS PERCEIVED BY RESIDENTS, COMMUTERS AND VISITORS.”

“It’s a positive step, but solving the homeless problem, or at least mitigating it, will be a marathon.”

The Edmonton Chamber’s 1,900 members consider it a call to action.

Perhaps it is unintentionally crass and mercenary, because homelessness is an undisputably urgent community and social issue, but the situation does significantly impact commercial real estate. It invariably weighs on people who commute via transit or park and walk to work or shop from outside parkades.

“It’s a very real and urgent,” warns Scott Hughes, broker and owner of Edmonton’s RE/MAX Commercial Capital. “Downtown’s homelessness and addiction is a safety issue, particularly the way it is perceived by residents, commuters and visitors. When it comes to the impact on commercial real estate, it makes landlords and tenants uneasy. Many businesses have had to add security and safety expenses for employees and visitors. The downtown tenants aren’t social workers and are not used to dealing with street people. The safety of employees and visitors is a real problem which must be resolved.”

Snow is optimistic that with steps taken over the last year or so and as more people return to the downtown area, the perception of a safe downtown will improve.

“Many building operators have improved security, with some

even providing security escorts to parking facilities. I think everyone from building owners to downtown businesses and the city are working to improve the situation.”

By all indications, Edmonton’s commercial real estate market challenges – from WFH and new-normal workplace trends, vacancy rates and lingering on-the-street safety issues – are being dealt with. There is cautious optimism about a rebound or maybe even a transformation.

“Edmonton’s commercial real estate market is showing more activity in the first quarter of the year than at any point in 2023,” Wosnack points out. “The stability in the financial markets together with decreased inflation are encouraging real estate players to come off the sidelines. Occupiers are more confident in making long term decisions.”

Now that the cost of debt and construction is more predictable than it has been in the past two years, developers are positioning themselves to meet the demand of Edmonton’s record setting population growth.

As Edmonton’s commercial real estate manages the various speedbumps, Snow shares optimism about the encouraging momentum.

“Money is smart and more of it is coming to Edmonton. The city is positioned to remain one of the best markets for growth and employment in Canada in 2024.”

ABOVE: SCOTT HUGHES, BROKER AND OWNER OF EDMONTON’S RE/MAX COMMERCIAL CAPITAL.

2024 Board of Directors

Board Executive

Doug Griffiths President and CEO

Chair: Aziz Bootwala

Managing Principal, Edmonton, Vice President, Business Development, Kasian Architecture Interior Design and Planning Ltd.

Vice-Chair: Annemarie Petrov

President and CEO, Francis Winspear Centre for Music

Secretary-Treasurer: Jason Pincock CEO, DynaLIFE Medical Labs

Past Chair: Haydar Al Dahhan, Design Works Engineering

Board Directors

Nicole Bird Owner, Rsvp Design Inc.

Nathan Carter Vice President, Projects and Construction, ATCO Energy Solutions

Jonathan Gallo Managing Partner, Gallo LLP Chartered Professional Accountants

Sandy Jacobson Vice President, Richardson Executive Search

Sam Kemble Chief Operating Officer, Workforce Delivery Inc.

Amir Shami President and CEO, Rotaflow

Randy Allaire Chief Risk Officer, Servus Credit Union

Edmonton Chamber Executive

Heather Thomson, Vice President, Strategy, Research and Engagement

Akanksha Bhatnagar, Director, Communications and Marketing

Amin Samji Director, Member Services

Drew Sveinson Director, Finance and Operations

Christopher Martin Director, Policy and Government Relations

Contact Edmonton Chamber of Commerce

#600 World Trade Centre 9990 Jasper Ave, Edmonton, AB T5J 1P7

T: 780.426.4620 | F: 780.424.7946 edmontonchamber.com

Tourism Doesn’t Just Boost Our Economy – It Helps Shape Our City

Doug Griffiths, President & CEO

he first Indigenous people in the area we now call Edmonton arrived at least 3,000 years ago and the first European to set foot here in 1754 was likely the explorer Anthony Henday (now of Edmonton ring-road fame).

The first train arrived in 1902, the first automobile in 1904, and the first airplane in 1911. But I have no idea when the first “tourists” came. But come they did.

More than six million a year, spending almost $2 billion annually. That was in 2019 before COVID hit. We have few recent statistics specifically for Edmonton but

The city enjoyed a strong tourism rebound in 2023 thanks to, among other things, hosting the Juno Awards and the Snowboard Big Air World Cup, alongside annual events like the Folk Fest and The Fringe. We also held the Heritage Classic which drew more than 55,000 hockey fans to Commonwealth Stadium.

According to Travel Alberta, our city could see the tourism economy grow more than 60 per cent by 2030 with visitors spending up to $3 billion a year. In any given year, about 10 per cent of Edmonton’s workforce is employed in tourismrelated jobs. (The Alberta government says in 2022 the province as a whole saw $10.7 billion in tourism spending, an increase of $600 million from 2019 levels).

Because Edmonton tends to be a fly-in destination for visitors, it’s always good to see the Edmonton International Airport welcome more scheduled service as it will do this year when WestJet expands its transborder network to Atlanta Nashville, and San Francisco.

Janelle Janis, executive director of events and business development for Explore Edmonton, told CTV News last December, “We have surpassed the levels that we were at in 2019, which is pretty incredible to be able to state.”

We all know tourism is important but I don’t think all of us realize just how crucial it is not only to our economy but to our civic pride and our “brand.” There’s also the easily overlooked benefit that all tourist “attractions” – whether they be concerts, festivals, River Valley trails or a world-renowned shopping mall – add to our quality-of-life. That is an important consideration.

We don’t build museums and art galleries or hold concerts and music festivals only to impress visitors. We do that first and foremost for ourselves. The tourists will follow.

Take the West Edmonton Mall, for example. At 5.3 million square feet it is larger than Vatican City and home to more than 800 stores and services. While it is the number-one tourist attraction in Alberta, many of the visitors to the mall are from Edmonton itself.

A build-it-and-they-will come mentality should be aimed first at our own citizens. There is an added benefit to tourism that is difficult to measure but can’t be ignored.

Share your thoughts on business issues with the Edmonton Chamber at policy@edmontonchamber.com

Some visitors to a destination will be so impressed they will return and stay.

That’s a point raised in Travel Alberta’s “Bootstrap Plan” to jumpstart the

province’s tourism strategy. It says destination development and promotion create a “halo effect” where visitors are left with a positive impression of a destination: “Consumers who recalled destination promotion campaigns were not only more likely to visit, but also more likely to have a positive impression of a destination as a good place to live, retire, start a business, or attend post-secondary.”

The Alberta government has increased Travel Alberta’s budget to $72 million over three years and in 2023 spent $20 million to help boost tourism across the province.

Building on that commitment, the government launched a long-term provincial tourism strategy in February to sell Alberta’s story to the world — with the aim of growing Alberta’s visitor economy to $25 billion by 2035.

It’s an ambitious goal and one dependent on closing the labour gap already plaguing the industry. With that in mind, on March 1, the government launched a new immigration stream dedicated to the tourism sector that, in

conjunction with the federal government, will nominate skilled and experienced workers, who have already been working in Alberta for at least six months, to fill job vacancies.

Government help is crucial but we must be strategic in how we approach tourism.

John Newby, a consultant and syndicated columnist in the United States, wrote an article in 2022 entitled, “Communities built for locals always attract new residents.” It points out that trying “to grow local tourism before pleasing your own community has always been a lost cause akin to placing the cart before the horse. When you can create an environment that excites your local community and brings vibrancy to the core of your community, a chain reaction of success will then be well on its way.” He added, “Tourism is a by-product of a community that has confidence and believes in itself.”

Confident and optimistic. That is Edmonton in a nutshell.

Andersen in Canada

Member Profile

Krista Rabidoux Partner ca.andersen.com

What’s your story?

At Andersen in Canada, we offer integrated tax services. We are a Canadian member firm of Andersen Global®, an international association of independent firms comprised of tax and legal professionals worldwide through our member firms and collaborating firms under Andersen Global®. We provide a broad range of tax, advisory, international tax and related consulting services to businesses and individuals.

Our values

We adhere to the values associated with the Andersen name. We pride ourselves on our premier quality services, ensuring the success of our clients. We hire the best and brightest tax professionals, offering them a career in a challenging and stimulating work environment. We are aware of our responsibility to our tax professionals and their development in the organization, giving them the opportunity to develop their skills in an international environment.

Our services are transparent to our clients, and we want to be partners to their business: our clients know what we do, and we understand our clients’ needs. We are a global and independent organization.

Andersen in Canada does not offer audit services, eliminating any conflicts of interest resulting from statutory audits. This makes us a unique partner with global expertise to our clients.

Our people

Our tax professionals strive to be best-in-class. Beyond their local education they share the same values in all locations where Andersen Global® has a presence, allowing our clients to receive seamless service.

We follow a growth strategy motivated by the goal of offering the best quality service possible to our clients. This includes hiring laterals and integrating teams and firms who share our values and commitment to excellence. Transactions of this nature are not of a pure local nature but are coordinated within the

member firms and collaborating firms of Andersen Global® to ensure that from day one all laterals, teams and firms work on the international platform that the organization makes available.

What do you enjoy most about being a member of the Edmonton Chamber of Commerce?

The people: The Edmonton Chamber team and their members demonstrate positive energy, creative ideas, a welcoming spirit and plan great networking and social events.

What is one thing people are surprised to learn about your business?

While Andersen in Canada provides customtailored tax solutions for businesses or individuals in Canada with activities in the U.S., as well as U.S. persons living in Canada or U.S. businesses with activities in Canada, we are also a group of fun loving, comical accountants and other professionals. We focus on building trusted relationships with everyone we interact with, especially our clients.

Krista Rabidoux, Partner, Andersen in Canada

SOCIAL SWING OF GOLF

BY NERISSA MCNAUGHTON

Golf, a globally adored sport with over 60 million players worldwide, is more than just a game of clubs and balls. This sport, dating back to the 15th century, is a mix of precision, patience and strategy. However, beyond the fairways and bunkers, golf serves as a catalyst for social interaction and community building.

The appeal of golf lies not only in the challenge of the game itself but also in its ability to bring people together. From friendly weekend matches to high-stakes professional tournaments and community fundraisers, golf has a unique

way of fostering connections. Its slow pace allows ample time for conversation, making it an ideal setting for both business networking and personal bonding.

Let’s take a closer look at two golf courses that exemplify this spirit of togetherness and see how the world of golf is more than just a game – it’s a community.

“The Links Golf Course in Parkland County stands out for its tremendous customer service, scenic community setting, challenging layout, quality course conditions, affordability, accessibility from major roads, well kept facilities and

community atmosphere – all of which we feel helps to make it an ideal destination for golfers from Edmonton and surrounding areas to make the drive out to Spruce Grove,” says Vee Thephasouvanh, head golf professional.

“Golf is often played in groups, providing ample opportunities for socializing and forming connections. Whether it’s through casual rounds with friends or participating in tournaments, golfers often bond over their shared experiences on the course. Additionally, golf has long been associated with business networking. Many deals and partnerships are formed or strengthened on the golf course. The relaxed atmosphere of a round of golf provides a conducive environment for building professional relationships.”

Thephasouvanh also sees golf as a place of learning, bringing together teachers and students, new golfers and mentors.

“Golf is a sport that requires tremendous skill and technique. Experienced golfers often teach and provide guidance to newer players, creating mentorship opportunities and fostering a supportive learning environment.”

When it comes to fundraising, Thephasouvanh knows golf is an ideal vehicle to bring together people with important causes.

“The combination of broad appeal, networking opportunities, high perceived value, community engagement, brand exposure and flexibility make golf fundraisers an effective and successful strategy for many charitable organizations and causes.”

ABOVE: THE DERRICK GOLF & WINTER CLUB

What does Thephasouvanh wish more people know about the benefits of hitting the greens?

“Golf is a sport that emphasizes etiquette, respect and sportsmanship. Players are expected to adhere to a code of conduct that promotes fair play, honesty, and integrity. Learning and practicing these values on the golf course can translate to other areas of life. Playing golf teaches valuable life lessons such as patience, perseverance, discipline and resilience. Golfers learn to deal with adversity, manage emotions and problem-solve on the course; skills that are applicable in various aspects of life.”

Over at The Derrick Golf and Winter Club, the year-round activities and family-friendly atmosphere bring people together in different ways.

“The Derrick strives to create a home away from home for all members. More than a golf course and athletic facility, there is a strong community that makes our club a special place for all members to fit their lifestyle. At the club, all ages can find likeminded people and build lasting relationships through shared participation in club activities and unique social opportunities,” says communications coordinator Izzy Agostini.

Being a club that offers winter activities means plenty of choices for families, individuals, teams and groups of all kinds.

“Each season offers something different,” Agostini continues. “Experience skating, cross-country skiing and special holiday events like brunch with Santa, the summer kick-off party, and our Halloween party. Seasonal camps are offered during school breaks for junior members to keep active and social. With an extensive recreation guide for every season, all members can find new activities to take part in or participate in their favourites.”

“GOLF IS AN EXCELLENT OPPORTUNITY FOR BUSINESS OWNERS TO SUPPORT LOCAL CHARITIES. THIS IS SUCCESSFUL BECAUSE OF GOLF BEING INCLUSIVE TO ALL AGES, CREATING A FUN WAY TO GIVE BACK TO THE COMMUNITY FOR ALL,” SAYS AGOSTINI.

Agostini also values how golf and fundraisers are so compatible.

“Golf is an excellent opportunity for business owners to support local charities. This is successful because of golf being inclusive to all ages, creating a fun way to give back to the community for all.”

Agostini wishes everyone knew that, “Many people assume you must start golf at a young age. Golf is a game you can start playing at any age! It is never too late to learn the game and to enjoy it. Golf is a great sport where people of all ages, from different walks of life and different skill levels can enjoy time together.”

As we wrap up our journey through the greens and fairways, it’s clear that golf is much more than a sport. It’s a social institution that fosters camaraderie, builds community and bridges generations. From the casual weekend golfer to the high-stakes professional player, the golf course remains a unique arena where relationships are forged and strengthened. So, whether you’re drawn to the call of the course for its challenge, its tranquility or its social allure, remember that each swing, putt and holein-one is part of the larger narrative of connection and community in this wonderful world of golf. Here’s to teeing up togetherness in every game!

CHAMPIONS LUNCHEON

CELEBRATING MEN’S AND WOMEN’S OLYMPIC HOCKEY

Featuring US Olympian Jeremy Roenick and 4x Women’s Olympians

Rebecca Johnston & Meghan Agosta with Special Guests

Luncheon Hot Stove hosted by 4x Stanley Cup winner and 17 year NHL veteran, Craig MacTavish

FRIDAY, APRIL 26, 2024

Edmonton Convention Centre

A Complete Sphere of Benefits

By Nerissa McNaughton

OpenCircle, an Alberta-based not-forprofit organization, is the evolution of Merit Contractors Association and Merit National. To bring together more than 35 years of experience and service, the organizations have rebranded under one name that encapsulates its mission – to support construction workers and industry partners across the nation.

How does OpenCircle do this? By providing strong, sustainable and supportive workplaces with a full suite of tools to help employees grow, and with an industry-leading health benefit plan. As a member-based association, OpenCircle also provides programs and services to empower employers and employees in the construction industry.

With nearly four decades of experience in this sphere, OpenCircle fully understands the challenges faced by the construction industry, especially in Alberta. From health benefits to skills training and from mental health supports to diversity, equity and inclusion (DEI) integration, OpenCircle is making a tangible difference across Canada.

Line Porfon, CEO. Photo by Rebecca Lippiatt.

There is no doubt that the construction landscape is rapidly changing. There is a huge push to get more youth into the trades and more women are entering construction and its related industries as well. More eco-friendly initiatives are emerging, as is the technology employees use to do their jobs. As the landscape changes, so must policies, workplaces and ideals. OpenCircle proudly helps its 1,7000+ members and 50,000+ employees across Canada face this changing future with confidence.

The story of OpenCircle began in 1986 with 15 contractors forming Merit Contractors Association to ensure construction companies were rewarded for being competitive. In 2020, the association went national with Merit National. Now, as OpenCircle, the new branding minimizes confusion in the market.

Line Porfon, CEO, explains, “OpenCircle recently underwent a significant rebranding and business reorganization. We shifted our focus towards initiatives that would better serve our members as employers and employees. New initiatives will be launching soon and I am truly excited about how they will support our members and transform the industry.”

Porfon joined OpenCircle in 2014 after spending more than 25 years serving the public sector. She was appointed CEO in 2023. She is the association’s first female CEO, demonstrating the continued progressive stance of the organization.

“Our association represents close to 25 per cent of the construction industry in Alberta,” she continues. “With more than 35 years in the market, we have advanced the industry and moved with the times. We are representing an industry with increasingly more competition.”

One of the areas in which OpenCircle is making a difference is the increasingly present trades labour shortage. Factors contributing to the shortage include the retirement of Baby Boomers from the workforce and the diminishing crew sizes on construction jobs.

According to a report by BuildForce Canada, the province will soon need approximately 20,000 skilled workers to support $22 billion worth of resource value-added projects. It’s evident that addressing this labour shortage is crucial for sustaining Alberta’s trade industry and ensuring the continued growth and development of the province. OpenCircle is taking the challenge head on.

“OpenCircle has been advocating with decision makers for years, working with government, industry and other likeminded associations to address the labour shortage,” assures Porfon. “We also provide advice and support for programs in elementary, junior and senior high schools to boost interest in construction and its related trades.”

One of OpenCircle’s proud offerings is its cost effective health benefit plan for members. The plan is simple, flexible and designed to provide robust support for employers’ hourly and salaried staff.

Healthy employees are happy employees and happy employees are more productive. To this end, OpenCircle’s health benefits address physical and mental well-being by offering coverage for dental, vision and prescriptions as well as the Employee Assistance Program, which provides access to professional counselling. Life insurance, including short- and long-term disability is also offered. The association is looking into an increase in virtual programs and benefits to further support members and their families. In March, OpenCircle Benefits launched Telemedicine – a virtual offering where member employees (and their families) have 24/7 access to health professionals.

OpenCircle supports lifelong learning. Members’ qualifying dependent children have access to the OpenCircle Scholarship, while members themselves can take advantage of the Tuition Refund Program. OpenCircle’s Tuition Refund Program offers reimbursement of tuition costs for qualifying employees from member companies.

Members of the association also benefit from a very robust affinity program that offers deals and discounts for goods and services like accommodations, office supplies and gym memberships.

Another major advantage of being an OpenCircle member is the exclusive Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA) provided for members and their employees. This involves matching options, lower fees and access to essential retirement planning resources to help employees reach their retirement goals.

The association takes great care of its members while also focusing on the community. Porfon explains, “Our passionate employees work for change. Our team fundraises for causes close to their hearts and we match every dollar. It’s all part of how we empower others to be their best selves.”

OpenCircle’s employees select charities with a preference towards not-for-profits that support children, including organizations such as Little Warriors. This is an organization that provides awareness, prevention and treatment for child sexual abuse, as well as offering support for those affected.

With OpenCircle and Porfon’s many years of observing and engaging in Alberta’s changing landscape, she and the association have a bird’s eye view of the advantages of the province and how they can continue to inspire beneficial change.

“Alberta has long been known for its unique advantages – a robust economy, a thriving business sector and a vibrant community. However, what truly sets Alberta apart, in my view, is the people,” says Porfon. “Albertans are risk takers with an entrepreneurial spirit that propels our province and its economy forward. This modern Alberta Advantage is defined by the courage, innovation and determination of its residents.”

She continues, “Edmonton, where I grew up, holds a special place in my heart. The business community here is incredibly positive, resilient and inspiring. It’s a city that fosters growth and encourages creativity, making it an ideal place for businesses to thrive. The spirit of camaraderie and mutual support among the Edmonton business community is something that I deeply admire.

“Calgary, another major business hub in Alberta, is equally impressive. Known for its charitable nature and indomitable spirit, Calgary’s business community never lets any obstacle hinder their path to success. The city’s focus on philanthropy and community involvement adds a compassionate dimension to its business environment, making it a truly unique place to work and live.”

For those that have yet to enjoy the many member benefits of OpenCircle, Porfon says, “If there’s one thing I would like to tell our clients, it’s that our organization is built on not-for-profit principles. Every dollar we earn goes back into services, programs and rates that serve our members. We believe in creating value for our members and contributing to our community’s well-being.

OpenCircle is open for business and ready to welcome new members.

“Our membership is comprised of big and small companies. In fact, 65 per cent of our members are small and medium enterprises,” Porfon adds.

When it comes to long-term associations that are meeting the challenges of the construction industry and creating a beneficial environment for its workers and employers now and far into the future, it doesn’t get much better than OpenCircle. From advocacy to member benefits, to promoting lifelong learning to giving back to the community, OpenCircle continues to make a difference here in Alberta –and beyond.

Learn more online at opencircle.ca

The association is also active on LinkedIn, Facebook and Instagram.

THE EDMONTON POSITIVE

Written by John Hardy

Published by Melissa Mitchell

Throughout Alberta, and particularly in Edmonton, the multifamily market is hot.

With 26 years of extensive development and construction experience, completing more than 4,000 multifamily and commercial projects in Alberta, and with six Edmonton projects currently on the go, Edmonton is a vital part of the innovative and respected Cairo Development success story.

Ash Mahmoud, president of Cairo Development.

Photo by YYC-Headshots.com

www.grandwestelectric.com

“Traditionally, for real estate development, location is always a key factor,” says the dynamic and upbeat Ash Mahmoud, president of Cairo Development. “For us, Edmonton is also a tremendous positive when it comes to market circumstances, situations and exciting market potential.”

With much expertise, he attributes the spike in demand for Edmonton housing, particularly for rentals, to various factors.

“It’s partially the global economy of Canada, specifically Alberta. With oil prices compared to the 2015-2020 recession, more jobs were created in the oil and gas industry, which are proving to be a bonus in Edmonton and north Alberta.”

Mahmoud adds that, with the mortgage rates, the potential for getting approved for home purchases has made it difficult for many buyers to qualify.

He also emphasizes Edmonton’s provincial and international migration and the Edmonton job market are triggering the spike in the recent demand for multifamily, residential development.

“Particularly in oil and gas but other sectors as well, combined with Edmonton’s affordability compared to other Canadian areas,” he clarifies. “It’s not only the positive job market, Edmonton is also a strong attractor for students who come to get a fantastic education at the University of Alberta, NAIT and the other colleges in the region.”

The Cairo Development president highlights a key factor about the Edmonton multi-family rental market.

“The supply of purpose-built rentals is definitely not compatible with the growing demand. In fact, some stats suggest the demand has actually doubled, year to year.” Mahmoud explains that the momentum is impacting the growth of development across the city’s SW and NW sectors.

“It continues to move a lot of communities to the area, leading to a huge number of multifamily developments, mainly for purpose-built rentals. The land is cheaper and there is also available infrastructure. Many commercial facilities are being built to support the expansion and growth of SW and NW Edmonton communities.”

He is enthusiastic about Cairo Development being part of Edmonton’s exciting potential.

“The city is very successful in creating jobs and industries that will attract jobs and a workforce. For example, the new hospital being planned in Edmonton’s SW and the proposed hydrogen plant will create a significant number of jobs,” Mahmoud points out.

“It’s a win-win situation for Edmonton. As job opportunities increase, so does the workforce and the population. With Edmonton’s expanding population, there is a rising demand for housing, especially purpose-built, multi-family rentals.”

CONGRATULATIONS CAIRO DEVELOPMENT!

Avana Chappelle - Edmonton

Harmony - Edmonton

Ganville - Edmonton

A unique aspect of the Cairo Development success story –whether it is multifamily residential projects, development management, pre-construction management, construction management, construction consultancy or general contracting – is the core focus of building relationships with the company’s clients.

“Our specialty is always delivering first class, value engineered construction services,” he says with passion and pride.

Mahmoud notes that Cairo’s future is exciting and ambitious.

“In the past two years or so, Cairo has been in the process of completing several Edmonton projects, including 724 stacked townhomes or apartments with a total of almost $130 million, and created more than 1,000 jobs.”

“This year, we’re expecting more projects near the downtown Edmonton area and in the SW and NW,” he adds. “We are on track to double the number of Cairo Development Edmonton projects, especially in terms of number of units, the total value of work and creating more jobs.”

Edmonton: Suite 310, 11150 Jasper Ave. NW

Calgary: Suite 306, 5940 MacLeod Tr. SW

587.328.6303 | info@cairodevelopment.ca

www.cairodevelopment.ca

Ascent - Canmore

THE FIRST AND ONLY MISSION-CRITICAL ECOSYSTEM

Motorola Solutions has created the mission-critical ecosystem built for commercial business. It shares knowledge across your entire operation to enable powerful collaboration, streamline workflows and drive performance. A single platform — where communications, software, video and services operate seamlessly together — to reveal the insights which drive meaningful change.

VIDEO SECURITY & ACCESS CONTROL

SAFETY REIMAGINED

COMMAND CENTER SOFTWARE

MANAGED & SUPPORT SERVICES

LMR MISSION CRITICAL COMMUNICATIONS

50 YEARS OF DRYWALL

Photo by YYC-HEADSHOTS.COM

Curtis Salt – Director of Finance, Shane Drover – Purchasing/Ops Supervisor, Jody Jones – Human Resources Manager, Jason Bowley – Vice President of Sales, Greg Holunga - President and Rob Kennedy – Director of Operations.

When Clare and Judy Shoemaker, along with a handful of family members, started their drywall business in Lethbridge in 1974, they could never have imagined what Shoemaker Drywall Supplies would become over the next five decades. And while the company has experienced a great deal of change over those years, the commitment to quality and a focus on people has never wavered.

It may have started as a small family-run operation in Lethbridge and Medicine Hat, but the Shoemakers had big plans for the organization. They saw opportunity in the larger centres and decided to close the doors in Lethbridge and launch the Shoemaker brand in Calgary in 1979. The company established a reputation for integrity and a dedication to service, and as that reputation grew so did the company. They moved from Medicine Hat to Edmonton in 1985, expanded to Kelowna in 2007, spread throughout the province and into British Columbia through acquisitions, opened a second location in Calgary in 2015 and are currently expanding in the Manitoba market.

“They started a journey of growth, and Shoemaker went from being a two-store company to having locations spanning every province in Western Canada, some with multiple locations. Some came by way of new greenfield locations and some by way of acquisition,” says Greg Holunga, president of Shoemaker Drywall Supplies. “As of today, we are 14 locations strong and still looking at ways that we can continue growing.”

One of those paths to growth led them to join other influential companies in the industry in January 2009. Shoemaker merged with

Artist, Patsi Gagnon. Photo by YYC-HEADSHOTS.COM

CONGRATULATIONS ON

50 YEARS

For decades, our partnership has been the foundation of excellence, helping shape outstanding communities, while delivering the best and most innovative building materials to our customers.

Today, we stand on the threshold of a new era as CGC prepares to begin construction of our latest Gypsum plant in Alberta's Wheatland County. With your unwavering support and our commitment to quality, innovation, and sustainability, we are poised to reach new heights in the years to come.

Congratulations, and here's to many more decades of shared achievements!

Ontario’s Watson Building Supplies and the Beauchesne Group of Companies out of Quebec to create WSB Titan, the largest independentlyowned drywall supplier in the country. As a subsidiary, Shoemaker was able to expand its offerings by acquiring companies in related fields and diversifying its product lines and services to serve a larger swath of the building market. The capabilities of the WSB Titan group attracted the attention of Gypsum Management and Supply (GMS), the largest Gypsum Specialty Dealer in North America. In 2018, the group became part of GMS Canada thus shifting the company from the family business to a publicly-owned entity operating as a subsidiary division of GMS.

“It was a big transition going from private to public but we’ve overcome those initial hurdles, and while there are challenges of course, our staff retention and satisfaction have steadily improved. What we’re doing moving forward as a public company is ticking those boxes while still being true to our core values. I think it has served us well,” says Holunga.

ENERGY EFFICIENCY & COMFORT WITH JM

We’ve got solutions to maximize energy efficiency and provide comfort in every room of your home, all from one manufacturer. Johns Manville’s complete line of high-quality building insulation products provides top-notch insulation while helping to lower energy bills so you can worry about what matters most—the people.

FIBREGLASS

POLYISO SHEATHING

Those core values dictate the direction the business takes and no matter how large or diverse the company gets, the Shoemaker family’s original values remain the foundation of the company.

MUCH MORE THAN DRYWALL

Those values navigated the company through a significant growth period as Shoemaker became both larger and more diverse in the market, so much so that it outgrew its original name. The company is more commonly known as SDS due to product expansion and the wide diversity of product lines. Today, it is a trusted distributor of the best construction products in the country with applications running the gamut of residential, commercial and institutional sectors.

One significant growth area is roofing. The organization started residential roofing 14 years ago and the success of that pushed the team to recently enter commercial roofing as well. They are seeing impressive results in the test markets and they plan to offer full-service organizationwide commercial roofing in the near future.

“We’ve made heavy investments in commercial roofing and I suspect that one day it will be a key product category for us,” says Holunga.

While SDS still accommodates its traditional customers with a range of quality drywall, insulation and steel framing products, it has also extended its product lines to include fasteners, polyethylene, finishing products, roofing and general tools. SDS offers everything from spray foam and fire stop to wall fabrics and acoustical ceiling panels. That growth is mirrored in the office where SDS has built a comprehensive team of sales, finance, human resources and operations professionals who offer incredible service and build relationships to continue growing the business. Shoemaker goes above and beyond, offering after-hours

Photo by YYC-HEADSHOTS.COM

ANNIVERSARY 50 Happy

Congratulations for this truly impressive achievement. We thank you for your support and look forward to more years to come.

THE

Colour featured: RYE

Central Library in Calgary; Rogers Place, Yellowknife Hospital and Stantec Tower in Edmonton; University of Lethbridge Science Centre and Agiplex; Red Deer Justice Centre; Human Rights Museum, Wawanesa Tower and 300 Main in Winnipeg; and Royal Inland Hospital, The Parc Tower, Lionsgate Hospital and Children’s and Women’s Hospital (VGH) in British Columbia; and so many more.

“Our success has been driven by customer demand, market opportunity and a relentless pursuit to be a major contributor to the Western Canadian construction scene by providing critical products and services to meet the demands of home builders, developers and general contractors, in partnership with our customers,” Holunga says. “Through communication, coordination and execution, we are unstoppable!”

Rob Kennedy, Jason Powell, Curtis Salt, Lloyd Mills, Jason Bowley, Dmytro Kovalenko, Jody Jones, Troy Crawford, Greg Holunga, Kyle Begg and Shane Drover.

Photo by YYC-HEADSHOTS.COM

Congratulations to

DeltaStud

Delta Stud MegaJoist

MegaJoist

MegaJoist DeltaStud

UltraBond

SDS is a true partner and the company’s unstoppable success has hinged on delivering exciting projects for client partners without compromising the family atmosphere and positive culture made possible by its foundational core values.

VALUES DRIVE GROWTH AT SDS

V20

MegaJoist

Viper V20

UltraBond SteelStud

The company was built on relationships and throughout the ownership transition, challenges during COVID and economic fluctuations, the SDS team has continued to invest in them. After all, relationships are what fuel the company’s mission and vision. The goal remains to create opportunities, build significant relationships and deliver solutions, all of which are facilitated by the core values woven throughout the organization.

EngineeredLightweightSteelFraming Solutions www.imperialbp.ca

EngineeredLightweightSteelFraming Solutions www.imperialbp.ca

BUILDING PRODUCTS are proudlymade in Canada to meet tomorrow’s

IMPERIAL BUILDING PRODUCTS are proudlymade in Canada designed to meet today

“Investing in relationships and servicing others is what we do. The majority of partners, which is how we look at our customers, have been with us since the beginning,” says Jason Bowley, vice president of Sales for SDS.

780-440-4499 | www.imperialbp.ca | james.ram@imperialbp.ca

EngineeredLightweightSteelFraming Solutions www.imperialbp.ca

780-440-4499 | www.imperialbp.ca | james.ram@imperialbp.ca

BUILDING PRODUCTS are proudlymade in Canada to meet tomorrow’s needs, today

DeltaStud | www.imperialbp.ca | james.ram@imperialbp.ca

• IMPERIAL BUILDING PRODUCTS are proudly made in Canada and designed to meet tomorrow’s needs, today.

• Engineered Lightweight Steel Framing Solutions

780-440-4499 | www.imperialbp.ca | james.ram@imperialbp.ca

Congratulations Shoemaker Drywall Supplies 50 Years of business excellence! LONG

North America’s leading roofing and building accessories manufacturer.

At its core, SDS focuses on giving its people the independence and authority to be effective, investing in relationships with vendors and customers, placing a priority on service and pursuing a safe work environment and operational excellence. Its philosophy is summed up by one simple statement, “you can never go wrong doing the right thing,” and Shoemaker prides itself on doing the right thing for staff, suppliers, customers and the community every day.

By providing quality products coupled with an unbeatable customer experience, Shoemaker has created a strong, loyal client base and solid relationships with vendors that date back decades. Rather than jumping from vendor to vendor chasing the lowest price, SDS opts for loyalty and stays with partners that offer the best value for the team and the customer. Vendors appreciate that loyalty and view Shoemaker as much more than just a distribution company; they are partners dedicated to getting large amounts of quality product out to customers, making both sides successful. On any given day, SDS takes 50 B-Trains of product into its locations, allowing the teams to meet their commitments to vendors and exceed customers’ expectations.

TRUSTED BY:

www.menzies-metal.com

“Something [former owner] Ryan Shoemaker said stuck with me, and that is you should treat your vendors like they’re your largest customer, and I think we’ve done very well at that,” says Shane Drover, Supply Chain manager for SDS.

The company has also done well at attracting and retaining quality staff who are committed to the corporate culture of respect, service and quality and who are invested in making SDS a continued success.

THE KEYS TO SUCCESS: PEOPLE

At SDS, the people make the difference and the executive team does all it can to support the staff. Their extensive training and safety programs ensure that employees are qualified to do their jobs well so they’re set up for personal

success while producing exceptional results for clients. Their education goes beyond job training, and the executive team is happy to help employees develop their careers through courses or degree programs. SDS encourages growth, so whenever possible the team promotes from within to introduce those growth opportunities and facilitate an employee’s desired career change. As the company expands into new areas, employees are also able to pursue new and varied careers without leaving Shoemaker.

“We’ve done a great job of identifying talent and allowing a path for that talent to reach its full potential, in whatever capacity, and we’ll help them excel and succeed,” says Curtis Salt, director of Finance for SDS. “It’s good for the company, it’s good for our people and it’s good for morale.”

Morale is strong at SDS, and the nearly 400 employees across the organization enjoy the culture of respect and collaboration that has been a key pillar since the beginning. On top of educational opportunities, the company provides great wages and financial perks that show staff that they are valued and appreciated.

“Because we’re part of the GMS Canada umbrella, the buying power that we have now to put incentive programs in front of our employees is bigger so we can reward them more,” says Jody Jones, Human Resources manager for SDS. “We’ve just recently increased our RRSP contribution program and our benefits. We try to make sure employees are taken care of to service all the internal partners that we’ve got.”

SDS employees also have access to the GMS Family Fund which helps people cover unexpected financial setbacks ranging from replacing a totalled vehicle to repairing property damage from forest fires. Shoemaker looks out for employees, and the payoff is immense. The company boasts a large number of long-time dedicated employees, some of whom have 30-plus years of service, and the executive team is thankful to have a mix of seasoned and novice employees helping them grow the company across the region.

The company takes care of the community as well, and throughout the years SDS has supported the Red Cross of Canada’s response to natural disasters and emergencies across the country. The team also supports the people in its backyards, sponsoring local minor sports teams, food banks, children’s hospitals and huge toy drives for kids. They are proud to give back to the communities that have supported them over the past 50 years.

BRIGHT FUTURE

As Canada addresses the need for more infrastructure and housing, SDS will be there to support the construction industry to make it happen. After 50 years of growth and evolution in the industry, the future is bright and exciting at Shoemaker Drywall Supplies.

JCB 512-83R ROTATING TELEHANDLER

The roto telehandler introduces a whole new realm of opportunities by combining three machines into one with the maneuverability of a telehandler, reach and lifting capability of a crane, and access capacity of a MEWP.

HIGHLIGHTS

The roto telehandler introduces a whole new realm of opportunities by combining three machines into one with the maneuverability of a telehandler, reach and lifting capability of a crane, and access capacity of a MEWP.

■ Maximum capacity of 12,000 lbs and a maximum lift height of 83 ft 3 in

HIGHLIGHTS

■ Powered by a 145 hp JCB EcoMac engine - no DPF filters

■ 4 scissor type outriggers with AUTO functions: deploy, retract and level

■ Maximum capacity of 12,000 lbs and a maximum lift height of 83 ft 3 in

■ Powered by a 145 hp JCB EcoMac engine - no DPF filters

■ Dual seat mounted joysticks in large, ergonomic operator station

■ 4 scissor type outriggers with AUTO functions: deploy, retract and level

■ Dual seat mounted joysticks in large, ergonomic operator station

■ Load Management System (LMS) that displays capacities and limits; can be set for specific applicaiton situations

■ RFID attachments recognition corresponding with in-cab LMS system

■ LiveLink telematics for real-time machine data

■ Load Management System (LMS) that displays capacities and limits; can be set for specific applicaiton situations

■ RFID attachments recognition corresponding with in-cab LMS system

■ LiveLink telematics for real-time machine data

SUPERIOR