September 2014 Business in Edmonton

September 2014 $3.50 businessinedmonton.com

KEN BAUTISTA Builds Something Game On!

Edmonton’s bullish commercial real estate market enters new phase with commencement of the arena’s construction.

Small Business Week Preview Small Business Week & the Strength of Our Small Businesses

Get Defensive (About Your Health)

BOMA NEWS: Official newsletter of ‘Building Owners and Managers Association’ of Edmonton.

• K E L L Y

R A M S E Y

T O W E R •

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J O H N

D A Y

D E V E L O P M E N T S

SECTION CONTENTS TITLE

SEPTEMBER 2014 | VOL. 03 #09

View our elect ronic issue of this mon th’s mag azin e onlin e at www .busi nessi nedm onto n.com

Regulars

Features

Each and every month

Edmonton continues to emerge from its oil and gas identity as new and established companies in all sectors proudly call the Capital City home.

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Cover

ECONOMIC FACTORS

BY JOSH BILYK

Looking to the Future of Alberta – We All Have a Part to Play

12

KEN BAUTISTA BUILDS SOMETHING

BY NERISSA MCNAUGHTON

COVER PHOTO BY EPIC PHOTOGRAPHY INC.

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OFF THE TOP Fresh News Across all Sectors.

83 E DMONTON ECONOMIC DEVELOPMENT CORPORATION

Company Profiles 55 KIMBERLEY HOMES

BY NERISSA MCNAUGHTON

Building The Finest Homes and Relationships

63

SILENT-AIRE

MANUFACTURING INC.

BY NERISSA MCNAUGHTON

The Silent Solution

71

Features

MAVERICK INSPECTION LTD.

BY WARREN TESSARI

Maverick Inspection Ltd. Celebrates 20 Years

75

PROCURA

BY JOHN HARDY

The People Business

6

September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

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SMALL BUSINESS WEEK & THE STRENGTH OF OUR SMALL BUSINESSES

BY RECHELL MCDONALD

Edmonton has an impressive small business sector, more so than many are aware of, even other small business owners. What’s the key to becoming an impressive small business here in the city? Networking.

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OFF THE TOP

NEWS FROM THE MONTH

Features

PUBLISHER BUSINESS IN EDMONTON INC.

ASSOCIATE PUBLISHER Brent Trimming

brent@businessinedmonton.com

continued

Edmonton continues to emerge from its oil and gas identity as new and established companies in all sectors proudly call the Capital City home.

EDITOR Nerissa McNaughton

EDITORIAL COORDINATOR Nerissa McNaughton

ALBERTA’S OIL HISTORY

BY RECHELL MCDONALD

Have you ever wondered just how oil was discovered in Alberta, and the way the industry has evolved over the years? You may be surprised by who the catalyst for the discovery was, and the integral role Alberta has played in the development of the industry.

COPY EDITORS Nikki Mullett

ART DIRECTOR Jessi Evetts

jessi@businessinedmonton.com

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CONTRIBUTING DESIGNERS Cher Compton

Cole Ottmann

ADMINISTRATION Nancy Bielecki info@businessinedmonton.com

REGULAR CONTRIBUTORS Josh Bilyk

THIS ISSUE’S CONTRIBUTORS Rechell McDonald John Hardy

Ben Freeland Nerissa McNaughton

PHOTOGRAPHY Cover photo by Epic Photography Inc.

ADVERTISING SALES Jane Geng Evelyn Dehner Renee Neil Diva Mangal

jane@businessinedmonton.com evelyn@businessinedmonton.com renee@businessinedmonton.com diva@businessinedmonton.com

DIRECTORS OF CUSTOM PUBLISHING Mark McDonald Joanne Boelee

mark@businessinedmonton.com joanne@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

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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 Return undeliverable Canadian addresses to circulation dept. #1780, 10020 - 101 A Ave. NW, Edmonton, AB T5J 3G2

26 SOLD!

BY BEN FREELAND

Edmonton realtors are enjoying boom times as the city’s residential real estate market continues its steady – but sustainable – climb.

36 GET DEFENSIVE (ABOUT YOUR HEALTH)

BY NERISSA MCNAUGHTON

42 GAME ON!

BY BEN FREELAND

Edmonton’s bullish commercial real estate market enters new phase with commencement of the arena’s construction.

47 B OMA NEWSLETTER Official newsletter of ‘Building Owners and Managers Association’ of Edmonton

80 E DMONTON CHAMBER OF COMMERCE | BY JAMES CUMMING 8

September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

Join us at the year’s highest-flying celebration!

Join us to celebrate the achievements of the Prairies’ gravity-defying entrepreneurs — and meet the finalists and winners! For tickets and to learn more, contact us at prairieseoy@ca.ey.com.

16 October 2014 Calgary TELUS Convention Centre 120 9th Avenue SE Find out more at ey.com/ca/EOY. And follow us on Twitter @EYCanada.

National presenting sponsors

National silver sponsors

National print sponsor

Prairies sponsors Platinum

EY is a proud supporter of entrepreneurship

© 2014 Ernst & Young LLP. All Rights Reserved.

ECONOMIC FACTORS JOSH BILYK

LOOKING TO THE FUTURE OF ALBERTA – WE ALL HAVE A PART TO PLAY

BY AEG PRESIDENT JOSH BILYK

A

lberta continues to grow and business is starting to build again. Naturally we Albertans have a better understanding of this, but outside of our provincial borders, the rest of Canada, the U.S. and Europe are not in the know.

The perception is that Alberta is little more than oil, gas, cowboys and wheat fields. The view is that roads are paved with gold, there’s a BMW in every driveway, and life is wonderful. Given that 83 per cent of the new jobs in Canada last year were based in Alberta and household income is some of the highest in the country, you can see how that perception can be created; but it’s time to delve a little deeper, get a more complete understanding, and do a better job of getting the right message out.

People generally don’t know that manufacturing and the export of those goods to other parts of Canada, the U.S., China and Japan add 6.9 per cent to our GDP, totaling $24.4 billon. Or that construction and real estate development combined almost tie the GDP generated by the energy industry, each totaling just less than 25 per cent. Then there is forestry, agriculture, transportation and the technology sectors, along with tourism (the latter contributes 4.4 per cent to that financial pie). Part of this is about who tells the best story, markets that message to key audiences, and gets the good word out.

We as Albertans need to do a better job of telling our story – the complete story about why Alberta is a great place to start a business and raise a family, and how what we do here helps build a stronger and more prosperous Canada.

It’s time for us to control the mes-

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Alberta is a land of opportunity fueled by visionaries, entrepreneurs, and people who want to build a stronger, better and more prosperous province. It’s time to work together – governments, industry, and business associations alike. sage and stop letting others tell it for us (which is usually so polarized and negative that it borders on slander).

It’s time for us to work more closely with the province to develop stronger trade relations and transportation networks throughout Canada and beyond.

We must develop innovative, new approaches to exporting our goods to B.C., Eastern Canada, the U.S. and other foreign markets. We need to address ongoing labour shortages by working better together.

Alberta is a land of opportunity fueled by visionaries, entrepreneurs, and people who want to build a stronger, better and more prosperous province. It’s time to work together – governments, industry, and business associations alike.

That is one of the reasons Alberta Enterprise Group (AEG) continues to grow its membership to represent every economic sector and employ more than 150,000 Canadians in every province.

We have helped build relationships and support business development throughout Alberta, brought our members to Quebec, Moncton, Ottawa, Washington and Europe to identify allies, showcase investment opportunities and build relationships with like-mind-

September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

ed, forward-looking entrepreneurs.

This fall AEG is hosting a delegation of Atlantic Canadian metal working firms to meet with oil, gas and other industry suppliers to explore opportunities to expand the supply chain to Atlantic Canada.

Research from a variety of sources shows that the more connected people are to the economic benefits and informed about the oil sands industry’s efforts to keep environmental impact in check, the more likely they are to support its ongoing development.

It works in terms of obtaining social license, but it also makes good business sense, such as sourcing labour in places across Canada before looking overseas, but we may need to think creatively about transportation and logistics.

The challenges facing resource development are substantial, but we’re lucky to have such a tremendous opportunity.

It’s up to all of us to do our part to build relationships based on trust, share the whole story, find solutions, and work towards a mutual understanding across Canada and around the world.

There’s only one way to build the support we need across the country – one old-fashioned handshake at a time. BIE

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OFF THE TOP

NEWS FROM THE MONTH

FINANCE

FIRST WEST CAPITAL BRINGS ITS EXPERTISE TO LOCAL BUSINESSES

Vancouver-based First West Capital recently opened the doors to its new Edmonton location, led by native-Edmontonian George Coon, regional director, Northern Alberta. Expansion into Northern Alberta is a natural progression for the firm, which has closed $66 million worth of business since 2010, and offers sub-debt and mezzanine financing to small to midsized businesses across all industries throughout Western Canada.

Co-founders and vice-presidents Robert Napoli and Kristi Miller identified Edmonton as a significant opportunity to expand their team.

“There is no shortage of growth in Northern Alberta; there are plenty of businesses looking to expand and acquire, and we are committed to helping businesses in the region do that effectively,” says Miller.

First West Capital has been doing business in Alberta for the last few years, funding local businesses such as Sealweld Corporation, Accusteel Inc., and Ardrossan-based Canada Pump and Power.

“Our partnership with First West

GEORGE COON

Capital over the past few years has allowed our business to grow and thrive, and we appreciate their reliable, effective and collaborative work style,” says Canada Pump and Power CEO, Jeremy Leonard. “Edmonton businesses will continue to benefit from their knowledge and expertise.”

However, they recognized the importance of having a permanent presence in the market – someone with local knowledge in the region

Can-West Business Edmonton Ad_PRT 6x3.pdf

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2014-08-06

September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

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who understands its unique opportunities and challenges.

Coon, who specializes in management buyouts, mergers and acquisitions, will be on the frontlines in Edmonton.” There is definitely a demand for First West Capital’s partner-focused approach,” he says. “I look forward to providing locals the customized and responsive service that First West Capital is known for.”

With over 25 years experience in wealth management, accounting and corporate finance, Coon is an asset to the local market. “He is someone who always looks for opportunities to add value, bringing expertise to every deal, which is very important to our clients,” says Napoli. “With his extensive work experience, including time as a CFO, George has been on both sides of the deal and that dual perspective is a huge advantage.”

While Napoli and Miller continue to gain momentum in the British Columbia market through financing deals for clients like Helijet and Dan-D-Pak, Coon will be focused on offering sub-debt financing to small to mid-sized businesses in Northern Alberta. With an ambitious goal to grow its business to $120 million in the next few years, First West Capital has plans to further expand its team in Alberta and open a Calgary office this year. BIE

OFF THE TOP

NEWS FROM THE MONTH

FOREIGN RELATIONS

TEMPORARY FOREIGN WORKERS: BEHIND THE HEADLINES

Ninety-six thousand. That’s the number of jobs the government of Alberta tells us will be unfilled by 2023 due to labour shortages if corrective measures aren’t taken.

This is actually good news; the 2012 number was 114,000. While there are numerous factors in this progress, including active collaboration between government and private industry and a very high degree of labour force participation, the province’s 85,000-strong temporary foreign workforce has clearly been a contributing factor in this progress.

Not surprisingly, Ottawa’s recent and abrupt decision to tighten the rules around the federal temporary foreign worker (TFW) program has been greeted with widespread consternation in Canada’s fastest growing province. Angst over the federal Conservatives’ volte face on this issues has already created some unlikely bedfellows, from provincial PC leadership candidate Ric McIver to Liberal leader Justin Trudeau, who decried the move as “one of the most anti-Alberta decisions we’ve seen in decades.”

University of Regina’s professor Andrew Stevens, an expert on Canada’s TFW program, asserts that the lack of empirical data on temporary foreign workers has led policymakers to create “flawed policies based on anecdotal information” and that federal immigration minister Jason Kenney’s recent moves will “simply create a new set of problems.”

Alberta was the driving force behind the federal program’s rapid expansion back in 2006, and today remains the largest employer of temporary foreign workers in the country. In 2012 the province had 84,465 temporary for-

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OFF THE TOP

NEWS FROM THE MONTH

eign workers, or roughly 42 per cent of the country’s total. Alberta also leads the country on TFW research, and is one of only three provinces with systems in place to track complaints by migrant workers.

Many Alberta employers are increasingly disillusioned with the federal government’s handling of the issue. “The feds have really put a stranglehold on worker supply in this province,” asserts Rahim Meghji, director of operations at Platinum Investments Ltd., an Edmonton property developer whose holdings include Edmonton International Airport’s new Renaissance Hotel. “The TFW program is simply a must because we don’t have the labour base to support our growing economy.

This really is a make-or-break situation for Alberta.”

Beyond the issue of worker shortages, Meghji also adds that people’s livelihoods are at stake by this rash government decision, and that decision makers need to do a much better job of listening to the voices of those most immediately affected – the workers themselves. “We’re talking about people – people who want to come to Canada and start new lives,” he adds. “It’s a big globalized world out there. If we make it hard for them to come here they’ll simply go somewhere else.”

For better or for worse, Alberta has been the proverbial canary in Canada’s TFW coalmine, and has built the country’s best TFW infrastructure. In that light, Albertan expertise on reforming the program would seem to be intellectual capital the feds can scarcely afford to overlook. BIE AVIATION

A VERY HEAVY LOAD

Air cargo, it is often said, is the unloved side of commercial aviation.

While Edmonton International Airport’s (EIA) meteoric passenger growth over the past decade has received no shortage of attention in the media, its equally impressive growth in the cargo business – over 25 per cent growth over the past four years –

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PHOTO COURTESY OF COMMONS.WIKIMEDIA.ORG

has gone largely unnoticed.

On June 27 of this year, however, EIA’s cargo operations got a boost of publicity when an Antonov AN-225, the world’s largest aircraft, came in for a landing. Known as the Mriya (“Dream”), the Ukrainian-built cargo plane was originally designed in the 1980s to carry the Soviet space shuttle, and has since enjoyed a long life as the mother of all cargo planes under the banner of Kiev-based Antonov Airlines. Only one AN-225 was ever built, and this was it.

The cargo being transported on this occasion was no less impressive than the plane that carried it. Agrium Inc., a leading global producer and marketer of agricultural nutrients, required a new waste heat boiler (a crucial component in the production of nitrogen fertilizer) for its fertilizer plant in Redwater, roughly 52 kilometres north of Edmonton. A failed boiler back in November of 2013 brought nitrogen fertilizer production at the plant to a standstill.

Transporting the 154-metric tonne German-built waste heat boiler safely and efficiently to its new home in central Alberta was no easy task.

“This was a massive undertaking that required months of extensive planning, right down to the final details,” explains Eric Dewey, president and CEO of the Canadian subsidiary of DB Schenker, the logistics company enlisted to oversee the job.

“Agrium’s timeline negated the option of ocean transport and we were very fortunate the Antonov AN-225 was available to transport the waste heat boiler from Berlin to Edmonton.”

September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

The journey began in Berlin, home of the boiler’s manufacturers, the BORSIG Group. From there it was shipped to the major German cargo hub at Leipzig/Halle Airport in Germany, where it was loaded onto the AN-225. The aircraft took fuel stops in Reykjavik, Iceland and Goose Bay, Labrador before arriving at Edmonton International Airport, from where the boiler was transported on an oversized trailer to Agrium’s Redwater plant.

This impressive feat of logistics comes at a time of massive growth for Agrium, a company fast emerging as a world leader in agricultural products and services. This year Agrium registered second quarter sales of $6.4 billion, a 15 per cent increase from Q2 2013, supported by strong results from its recently acquired Canadian and Australian operations.

“We are undergoing a significant site construction and replacement project at our Redwater site,” explains Kevin Melnyk, manager of nitrogen operations at Agrium’s Redwater plant. “DB Schenker knew we had a critical implementation timeline and they worked to specific deadlines to transport this waste heat boiler. At Agrium, safety and reliability are the way we operate. The installation of this new boiler will significantly improve the production reliability at our site.”

The next time you are at the airport waiting for a flight, spare a thought for the folks over on the air cargo apron. It may not be glamourous, but it keeps our economy running smoothly. BIE

GLOBAL PERSPECTIVE

SMALL BUSINESS WEEK PREVIEW

SMALL BUSINESS WEEK & THE STRENGTH OF OUR SMALL BUSINESSES

SMALL BUSINESS WEEK &

THE STRENGTH OF OUR SMALL BUSINESSES Edmonton has an impressive small business sector, more so than many are aware of, even other small business owners. What’s the key to becoming an impressive small business here in the city? Networking.

BY RECHELL MCDONALD

S

mall businesses are an important structural component in any city or town. Needless to say, this is just as true in Edmonton as anywhere else, and Edmonton has a beautiful assortment of small, independently owned businesses located across the city. These businesses showcase the entrepreneurial spirit of the city, while also diversifying what Edmonton has to offer its residents and visitors.

Whether you need specialty cooking tools, vintage clothing, handcrafted furniture or a designer cake, you can find all these vendors and more in Edmonton.

The real challenge of small business is finding the time to network with other small business owners. Networking helps spread your brand, but it also introduces you to the untapped resource that is other business owners. This is particularly important for those just getting started. One tool that many small businesses find useful, and perhaps others overlook, is the annual Small Business Week celebration put on by the Edmonton Chamber of Commerce.

Small business week usually hosts a variety of small to medium sized businesses, and as Chamber president and CEO James Cumming explains, it can be a very beneficial experience.

“The events are designed to connect small business owners with like-minded peers who are actively growing their business and looking for local connections. It can be difficult for small business owners to take the time to connect with other small businesses or learn about growth opportunities, but Small Business Week makes it easy to find the time for both of those things.”

One particular event that Cumming mentions is the seminar called “Selling to the Government.” Why is it of

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September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

particular note, and why does it sell out year after year?

That’s easy – it’s all about landing those big fish kind of customers. “[The seminar] gives relevant and accurate information that allows small businesses to sell to some of the largest organizations in the province,” says Cumming. “It can be difficult for a small business owner to feel confident in bidding on projects and tenders, but this all-day seminar provides good information to help make the process easier for small business owners. Our mixers are always one of the Edmonton Chamber’s main connection points for small business. This year’s mixer at the Muttart Conservatory will draw small business people from across the city to meet and network in a beautiful setting.”

Many may not realize how important the small business sector is to the city in the big picture, but Cumming hits the nail on the head with this too. “Communities thrive when there is an active and vibrant small business sector.

Edmonton’s growth is well served by those thousands of hard-working small business owners who can be nimble and can react quickly to the demands of the market. They are the backbone of our economy.”

It’s true that small businesses are more likely to bend over backwards to earn your business, but there has to be a place for the larger corporations and franchises too, right?

There is so much hoopla in the media about the importance of supporting small, local business – from farmers to breweries. We are constantly being told to shop local. But really, what’s all the fuss?

One thing that Edmonton has an outstanding track-record for is supporting itself. This is one city where people

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SMALL BUSINESS WEEK PREVIEW

SMALL BUSINESS WEEK & THE STRENGTH OF OUR SMALL BUSINESSES

Whether you are a small business with a storefront, providing freelance services from your home, or you have five employees or none – small businesses primarily thrive from contact with other small business owners.

really take local business to heart. Edmontonians are not afraid to make their money here, and spend it here as well.

This is a major reason why the city is so healthy, from its small business sector to the real estate market. The idea of shopping local is all about putting money back in your own pocket at the end of the day. If you keep your local economy strong by supporting local businesses, you will find that your own business always has a healthy supply of customers, and the job market will continue to grow. So where does that leave the big box stores?

Undoubtedly they have their place. There is no denying the allure of selection and rock bottom pricing, but these two factors rarely run alongside the idea of quality.

Although you may find that you spend a little more when you shop at a local small businesses, you will also find that the products you are purchasing tend to last a little longer, generally speaking. In the end, everyone has their preferences. You can choose the privately owned lumber yard, or hit Home Depot. You can find a quality independently owned bookstore, or you can stop by Chapters.

Whether you are a small business with a storefront, providing freelance services from your home, or you have five employees or none – small businesses primarily thrive

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September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

from contact with other small business owners. It’s a micro-community aimed at the benefit of the whole, by focusing on the individual. There are important connections to be made amongst small business owners, and events such as Small Business Week serve as an avenue to make that happen.

Honestly though, don’t take our word for it. Alberta Finance and Enterprise has some pretty interesting statistics on small business in Alberta and these numbers highlight not only how important this sector is to the province, but to the country as a whole.

In 2009, 14.2 per cent of all small businesses employing less than 10 people, were located in Alberta. If that doesn’t impress you, then the fact that Alberta only houses 10.9 per cent of the population, might. Small businesses with fewer than 10 employees account for about 77 per cent of all business in Alberta. Despite what can sometimes seem like an influx of chain stores as the province continues to develop, the small business owner is still holding their ground, and dominating the business market.

“Alberta’s small business sector is a vital component of the province’s economy. In 2008, the sector was responsible for 31 per cent of Alberta’s Gross Domestic Product

On behalf of the entire team at Raywalt, We would like to thank the partners and suppliers below for their generous support.

We were genuinely proud to have you as part of our 35th company anniversary.

We look forward to many more years of mutually beneficial business relationships with each of you.

Dandy Oil Canadian Western Bank Lakewood Chevrolet Witten LLP N.S. Pawliuk Neptune Coring

Inland Cement Lehigh Hanson Norwood Waterworks Jatec Royal Building Products

Sincere thanks,

Ron Johnson and Mark Zutz Raywalt Construction Raywalt Construction Co. Ltd. | #506, 53016 HWY 60 Acheson, Alberta T7X-5A7 Phone: (780) 962-0030 | Email: mainoffice@raywalt.ca

SMALL BUSINESS WEEK PREVIEW

SMALL BUSINESS WEEK & THE STRENGTH OF OUR SMALL BUSINESSES

To be more specific, Edmontonians in the last decade have been moving more frequently from the ranks of the employed, to those of the self-employed. Between 2005 and 2009, the number of self-employed workers in the provinces skyrocketed by 65 per cent. During that period, at the midway point of 2007, nine per cent of Edmonton’s employed workforce was comprised of the self-employed.

(GDP), the chief indicator of economic productivity.” ~ Alberta Finance and Enterprise.

To be more specific, Edmontonians in the last decade have been moving more frequently from the ranks of the employed, to those of the self-employed. Between 2005 and 2009, the number of self-employed workers in the provinces skyrocketed by 65 per cent. During that period, at the midway point of 2007, nine per cent of Edmonton’s employed workforce was comprised of the self-employed.

When you consider these projections were taken during the period of time that Alberta (and Albertans) were feeling the blowback from the economic fallout of the United States (and subsequently the rest of the Canada),

it’s pretty incredible. If you take this into account, as well as the way the province has recuperated since that time, you can only imagine how healthy the small business sector must be now.

The moral of the story is: keep paying yourself back. Yes, shop local – whether you interpret that as buying Alberta beef, or shopping at Audrey’s Bookstore. Our ability to maintain a healthy small business sector, even in the worst of times, is what has allowed us to weather recent economic crises as well as we have. And if you are a small business owner, don’t isolate yourself. Get out there and network.

Meet other small business owners, learn the trade secrets and continue to thrive. BIE

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Nominate them today for the 2015 Celebrating Excellence Awards.

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September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

For more information on the 2015 Celebrating Excellence Awards and how to submit a nomination please visit www.hriaconference.com/nominate

OIL & GAS - DRILLING

ALBERTA’S OIL HISTORY

PHOTO COURTESY OF LEDUC #1 ENERGY DISCOVERY CENTRE.

BY RECHELL MCDONALD

T

ALBERTA’S OIL HISTORY Have you ever wondered just how oil was discovered in Alberta, and the way the industry has evolved over the years? You may be surprised by who the catalyst for the discovery was, and the integral role Alberta has played in the development of the industry.

echnology is a huge part of tapping into the planet’s, and this province’s, natural resources. Technological advances in the field of oil and drilling have been focused on efficiency, safety and environmental responsibility. The improvements in the field were slow going for a long time, with only minor changes to things like safety equipment and protocol continual advancing, while the actual drilling practices remained largely unchanged. In the last couple of decades, however, oil companies have developed new technologies that allow for more efficient methods of retrieving oil. Many people have heard of fracking, but there is also new steam technology in use.

But oil drilling had to start somewhere, right? How far have we come, and how did it all begin in Alberta? It’s actually an interesting story – one that did not start with a stroke of luck, but rather a lot of effort and manpower.

Dan Claypool, former president and historian at Leduc #1, was kind enough to relate to us the story that really pinpointed the Edmonton area as a potential oil goldmine. “Mr. Tyrell (of the Tyrell Museum) was canoeing down the North Saskatchewan River, just past what is currently Devon, when he noticed some interesting forwww.businessinedmonton.com | Business In Edmonton Magazine | September 2014

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OIL & GAS - DRILLING

ALBERTA’S OIL HISTORY

PHOTO COURTESY OF LEDUC #1 ENERGY DISCOVERY CENTRE.

mations on the banks of the river. It was the rise and fall of the banks that piqued his curiosity, but at the time all he did was make a note of it.”

According to Claypool, it was more than a hundred years later when Tyrell’s observations came to light as having some significance. It was these observations that initially prompted seismographs to be completed in the area. Approximately $120 million was spent on drilling dry wells in the 30s and 40s, and the Leduc #1 site is where they finally struck oil in 1947.

So now we know how the oil industry in Alberta got its start, but how has it changed over the years? Claypool explains that for a long time the biggest difference between traditional and modern oil drilling practices was simply safety equipment. Originally well blowouts were a huge risk for oil workers, but as the drilling field advanced, safety equipment and proper training were developed, which decreased the risks of working in the field significantly.

Aside from the development of safety equipment and protocol, one of the biggest advances in the field was the creation of jackknife derricks. Before these, oil derricks

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September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

had to be assembled and dismantled, and moved from well site to well site. This required a lot of manpower and know-how on the part of the work crew. Jackknife derricks were the first derricks that were welded together, essentially a permanent fixture that did not need to be assembled by the work crew on site, and later taken apart. There was also some redesign of drill bits and the development of blowout protectors (BOPs) that further increased the efficacy and safety of drilling.

An earlier, more basic advancement in the industry was the development of rotational drilling, which occurred in the early 1900s at KEVIN KRAUSERT the hand of Howard Hughes. This allowed for faster drilling, making the whole process more economical. Kevin Krausert, business development manager at Beaver Drilling Ltd, explains that while there were minor technical developments from that point onward, the general concept remained the same.

“There have been advancements in the speed, precision and control of the drilling rigs that have harnessed rotary drilling, but the basic premise remained the same: a der-

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OIL & GAS - DRILLING

ALBERTA’S OIL HISTORY

PHOTO COURTESY OF BEAVER DRILLING LTD.

rick that hoists a drill string that rotates and applies weight and torque to a rock formation,” says Krausert.

After this, the next major innovation was the development of horizontal drilling practices. “By placing a slight bend in a downhole tool and controlling the angle and direction at which it drills, drillers are able to reach a horizontal axis and drill through a much larger area of an oil and gas formation than drilling through it vertically allowed,” explains Krausert. “This opened up huge quantities of oil and gas reservoirs that were previously uneconomical to drill by allowing greater amounts of oil and gas to flow from a single well.”

Krausert also explains that the advances and developments in the industry have created an interesting economical dilemma. Between meeting the demands of the masses for more affordable energy, ensuring a sufficient supply and continually making drilling practices as efficient and accurate as possible, the industry has reached a crossroads. As vehicles and other daily use items, like appliances, become more energy and fuel efficient, the demand for oil and gas products decreases in first-world nations – and will continue to do so as our vehicles and other items become more and more efficient.

With a lack of demand comes a lack of profit for the industry, and part of mitigating this profit loss is making the oil finding process as accurate as possible. In this day and age, drilling a dry well doesn’t really happen. Seismogra-

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September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

phers and geologists have become very good at using both modern and historical data to find oil formations and tap into them. Krausert also mentions that the only place in the world where this isn’t true is in the very deepest parts of the ocean and in the arctic.

While we can see that things have changed throughout the years as far as technology and technique goes, one of the most significant changes has been in the safety sector of the business. Krausert, like Claypool, agrees that things weren’t always safe, but in recent years modern drilling companies like Beaver Drilling have realized that safety doesn’t simply need to be a priority, it needs to be the first priority. At the end of the day it all ties into efficiency. The safer a rig is, the more trained and educated the workers are, the less likely the chance of costly accidents – and Alberta has seen a few oil disasters in the past.

Krausert mentions, for example, the 1982 well blowout in Lodgepole, Alberta that caught fire, destroyed the drilling rig and spewed sour gas across the province, which could be smelled as far away as Edmonton. It’s been such incidences that have prompted reviews and redevelopment of safety procedures, protocol and equipment.

What about all the other things we hear in the news about oil and oil companies? From pipeline projects to major oil spills on the oceans, there seems to be no shortage of controversy surrounding the oil industry. Environmentalists are up in arms about fracking and the alleged dangers it poses,

OIL & GAS - DRILLING

ALBERTA’S OIL HISTORY

but there are companies pursuing other means of extracting.

Cenovus, a company known for their innovative thinking, has discovered the benefits of steam in oil extraction. The relatively new extraction process is unlike fracking, and therefore does not pose the same purported environmental risks.

“Cenovus uses specialized drilling techniques to unlock the oil from our oil sands resources. We use a process called steam-assisted gravity drainage, or SAGD,” explains a Cenovus spokesperson. “The oil we’re targeting is between 300 and 400 metres below the surface and is quite thick.

If you think of conventional oil like olive oil, the consistency of the oil in the oil sands is closer to molasses. We inject steam into the reservoir to melt the oil so it can be pumped to surface.

“The method we used to produce oil from the oil sands is quite different from fracking. Fracking involves the injection of primarily water and sand at high pressures to break or fracture the rock to release the oil (or gas). Our steam is injected at much lower pressures, and simply melts the oil to release it from the sand.”

Cenovus is quick to point out that their technology and accessing the oil sands is all still quite new, 15 years new, in fact. The company is quick to agree with Krausert that the development of horizontal drilling has been instrumental to the industry as a whole, and was the development that made Cenovus’s SAGD process viable. With the SAGD process still being quite young, there is no telling what new advancements we will see in the extraction process in the near future.

Striking oil has been very profitable for people in North America, but in the beginning it was a very difficult and dangerous industry. Alberta has benefitted greatly from its oil stores, and has also given rise to some very important companies that are focused on continued advancement in the field of drilling and oil extraction. From the day Tyrrell made note of the odd bank formations near Devon, Alberta has been on the fast track of oil industry and its technology. BIE

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www.businessinedmonton.com | Business In Edmonton Magazine | September 2014

25

! d l o S REAL ESTATE SOLD!

INUES ITS RKET CONT

STEADY

STATE MA E L A E R L TIA ’S RESIDEN Y IT C E H T B. AS OM TIMES USTAINABLE – CLIM O B G IN Y O S ENJ – BUT TORS ARE L EELAND A E R N

BY BEN FR O T N O M ED

Y

ou know things are going well in Alberta’s capital city when Calgary newspaper columnists, people who generally loathe to say anything nice about their northern rivals, find they have no choice but to do so. Witness Calgary Sun real estate columnist Myke Thomas’ mid-July column entitled Edmonton Looking Pretty Attractive, in which he lauds Edmonton as an increasingly attractive alternative to Calgary’s skyrocketing housing prices.

“Edmonton provides more than a viable alternative to Calgary,” he claims. “It is just as much a cosmopolitan city as Calgary. It’s closer to the centre of it all – Fort McMurray – and it is less expensive.”

Stunning as such words might be from a newspaper not known for having mad love for E-town, they’re hardly news to the million-plus residents of Alberta’s Capital Region. The city long dismissed by its citizenry as “a nice place to live but where you wouldn’t want to visit” is enjoying something of a halcyon period, fuelled by robust economic conditions and continuous population growth heightened by the city’s newfound architectural and design moxie.

Furthermore, the commensurate increases in housing prices and other living costs in the Edmonton region, while significant, have largely been in step with cities

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September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

RESIDENTIAL COMMERCIAL

REAL ESTATE SOLD!

across Canada, and have indeed been less precipitous than in Calgary. In sum, Edmonton, while certainly more expensive than it was a decade ago, is still a relative bargain compared to its southern rival – a fact that Thomas and other Calgarians are beginning to notice.

Recent reports on Edmonton’s real estate market indicate a seller’s market across the board. According to recent data from Royal LePage, the average price of a condo in Edmonton rose 7.8 per cent in 2013 to $236,429, while two-story homes also increased 3.8 per cent, to $372,112. Industry experts expect this trend to continue, with Royal LePage predicting a 4.5 per cent increase in overall housing prices for the end of 2014. Meanwhile, continuous demand is meaning boom times for residential construction contractors. BuzzBuzzHome reported that over 18,000 homes were being built in Edmonton at the end of Q2 2014 – over 80 per cent of Vancouver’s total.

But while rising prices and ever-plentiful demand make Edmonton a seller’s market par excellence, it also remains attractive on the buyer end, with the RBC Housing Affordability Index citing it as one of Canada’s most affordable housing markets. Most strikingly, Edmonton continues to be significantly more affordable than its southern rival, where the average price for a standard bungalow is $501,200 (compared to $350,401 in Edmonton).

Calgary also continues to outpace the Capital Region in year-over-year price increases, with condos up 9.3 per cent and two-storey homes up 7.9 per cent in 2013 (significant-

ly higher than Edmonton’s 7.8 and 3.8 per cent increases, respectively).

This imbalance is of great concern for Myke Thomas, and other industry insiders in Calgary. “When people begin to balk at moving to Calgary because of high housing costs, the corporations that need those people to fill jobs will start looking elsewhere to set up, or move, their operations,” he contends. Edmonton’s advantage, he asserts, lies in a relative abundance of available developed land. “Calgary’s supply of developed land is fast disappearing,” says Thomas. “Builders warned earlier this year that the supply of developed land would hit a wall by the end of this year. The supply of lots RE/MAX REALTOR MICHELE WESELAKE available for development in Calgary is the responsibility of city council, a responsibility they don’t seem to be taking seriously.”

Meanwhile, Edmonton’s real estate insiders are all smiles these days. The Realtors Association of Alberta reports that residential sales in Edmonton were up 9.6 per cent at mid-2014 compared to a year ago, with 11,595 properties sold on the Multiple Listings Service (MLS) by the end of June. The average amount of time on market for newly up-for-sale houses in Edmonton is 41 days, down from 47 at the same time last year. Meanwhile, the year has also seen construction begin on 2,357 new single-family homes in the city, a seven per cent increase from last year.

“As far as I’m concerned, Edmonton is the sexiest market in the world right now,” exclaimed Re/Max realtor Michele Weselake. “For years now naysayers have been telling us that the market is going to fall, and yet it

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www.businessinedmonton.com | Business In Edmonton Magazine | September 2014

27

REAL ESTATE SOLD!

shows no signs of doing so. We have an enviable balance between supply and demand here. We have over 20,000 people moving here every year, and great work opportunities that will keep them coming for the foreseeable future. We also have far more space to build than most other Canadian cities.”

Weselake echoes Thomas’ remarks about Edmonton’s

prevailing affordability in spite of continually rising prices.

She also notes that Edmonton offers buyers an attractive diversity of residential properties tailored to a wide range of incomes. “Right now we’re seeing a growth in the popularity of duplexes as an affordable option for people in the $300K – $400K range. We’re also seeing a massive revitalization of the condo market in the city, particularly with the

Recent reports on Edmonton’s real estate market indicate a seller’s market across the board. According to recent data from Royal LePage, the average price of a condo in Edmonton rose 7.8 per cent in 2013 to $236,429, while two-story homes also increased 3.8 per cent, to $372,112.

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September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

REAL ESTATE SOLD!

consumer protection measures now in place. That said, homeowners still want houses, and are continuing to buy them.”

Weselake adds that Edmonton’s protracted shortages in rental properties and continually increasing rents (now

at $1,375 for a two-bedroom apartment) are also fuelling a booming real estate market. “I have clients coming to me all the time saying that the money they’re spending on rent is money they could be investing into owning a home,” she notes. “They’re most definitely right – and in most cases they end up spending less on mortgage payments than they were on rent.”

Edmonton also has room to build – both vertically and horizontally.

The long-awaited closure of Edmonton’s City Centre Airport at the end of 2013 brought to an end the height restrictions that had long capped Edmonton’s downtown skyline, allowing for soaring new residential developments like The Pearl on Jasper Avenue, set to open this year.

The airport closure will also see the creation of the new community of Blatchford, which is expected to house up to 30,000 people. Builders are expected to begin pre-selling homes in the new neighbourhood in

2016, with the neighbourhood’s first residents moving in in 2016/17. In the meantime, demand continues to be high across the board, with hot spots in Windermere, Belgravia, Highlands, Crestwood, Cloverdale, Oliver, Westmount, Garneau and Strathcona.

Weselake contends that while these and other edifying building projects have raised the city’s profile, Edmonton’s allure remains much the same as it has always been. ”We’ve always had great lifestyle advantages here, be it short commutes, lack of congestion, easy access to beautiful nature areas and enviable affordability,” she contends. “The difference now is that with a booming and diversifying economy and a growing population, word is starting to get out about our city. Even with the tremendous growth we’ve been seeing, we’ve managed to maintain our affordability and our small-city advantages. As long as this continues, I’ll be sleeping well at night.” BIE

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www.businessinedmonton.com | Business In Edmonton Magazine | September 2014

29

COVER

KEN BAUTISTA BUILDS SOMETHING

KEN BAUTISTA

Builds Something

“Startup Edmonton is the beacon for all things entrepreneurship in the city of Edmonton, and in a short amount of time has become the Canadian model for what a Startup community could and should be.”

- Victoria Lennox, Founder/ CEO, Startup Canada.

BY NERISSA MCNAUGHTON PHOTOS BY EPIC PHOTOGRAPHY INC.

www.businessinedmonton.com | Business In Edmonton Magazine | September 2014

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COVER

KEN BAUTISTA BUILDS SOMETHING

K

en Bautista is a rule breaker. While you won’t find him pushing the boundaries of the law – even jaywalking – you will find him breaking the “rules” of how businesses are started and run in Edmonton.

“A big daunting issue for startups is not having money and having to do a business plan to take to the bank,” explains Bautista. “The problem with a business plan, early on, is people get hung up on what they are writing about instead of focusing on what they can do. In the early stages, you need a place where you can try and experiment.

Ninety-five per cent of what you try is going to fail; but that’s just part of the process.”

Startup Edmonton gives aspiring entrepreneurs a safe place to try, and if necessary, to fail. It’s where doers go before they create that business plan, before they quit their full-time job to work on their dream career, and before they hire a team that they don’t yet have the ability to pay.

Here’s how it works.

It starts with the space. The fact that Startup Edmonton is in a converted warehouse downtown is no accident.

“This place is modeled on places I saw in New York and San Francisco,” Bautista smiles as he points out the meeting rooms, open workspace areas, private residency offices, creative social space and the cafeteria. There’s even a games room for when weary minds need to take a quick break. “We knew this needed to be downtown so you could walk and connect with people. It had to be accessi-

ble for students on the LRT. There had to be a social aspect for people to come together; like-minded people that want to build companies.”

Next comes the membership. There is no need to quit a fulltime job or lease office space if you are in the early stages of testing your business idea. If you just need a place to put your computer and have access to the Internet and a meeting room for clients, you can have that. If your business has grown and you need office space for you and your small team, you can have that too. Let’s say your business has grown rapidly and you have a 10-person team in need of a private office suite. That’s available. From between $60 - $2,000 per month, entrepreneurs have the space and the tools to create, launch, and run their business.

Who uses Startup Edmonton? Everybody from students to established corporate professionals. Take, for instance, Kendall and Justine Barber. They took the question, “Why is it so difficult to find stylish boots that actually fit?” and answered it with, “We will design stylish boots that actually fit!” They rented space at Startup Edmonton, rolled out their leather, hardware and soles and got to work. As their client base grew, so did their need for space. Their company, Poppy Barley, now owns a suite within Startup Edmonton, and a team that works out of both Edmonton and Mexico.

Localize is another company that grew within Startup Edmonton. The TEC Venture Prize 2014 winners create

PHOTO BY EPIC PHOTOGRAPHY INC.

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September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

Know and Manage Your Risks to Protect Your Profit Margins

By David Yager, MNP LLP ADVERTISEMENT

The oilfield services (OFS) industry has a number of risks that require management to improve profits and valuations. Being realistic about margins with thorough job costing and monitoring day-to-day operations and can help protect profits and increase security.

In the restaurant business they call it “leakage”. What that really means is theft. OFS managers have had to deal with fuel theft for decades. Stealing fuel is an occupational hazard when field operations personnel drive company vehicles equipped with credit cards. Managers struggle to ensure fuel, automotive accessories and everything else purchased at gas stations is for company use. Even managers aware of the problem are frustrated by their ability to eliminate it, particularly when labour markets are tight. Managers can protect profits by starting with clear “zero tolerance” HR policies and the consequences of violating them. The right accounting, purchasing and monitoring activities can help them achieve tight job costing, monitored mileage logs and restrict fleet cards.

Another growing problem is information theft. Everything is digitalized, from proprietary operations protocols and procedures, customer contacts and price lists to confidential financial information. Having this data leave the company for the wrong reason is economically damaging. It is increasingly difficult to monitor and prevent with the near universal proliferation of personal electronic devices. IT systems to control to monitor activity and detect violations are key. Data protection requires investing in secure and robust IT systems that track activity and restrict access to the most sensitive information to the fewest people possible.

Other risk arises from a mistake in perception—the default of many in OFS sales and operations is to confuse activity with success. But having personnel who are working hard, burning diesel and putting in long hours doesn’t necessarily translate to profits. Without understanding and controlling variable expenses on job costs and field margins, operators may be taking operational risks without earning an adequate profit in return.

Successful organizations analyze variable field operating costs to ensure that an adequate direct profit margin exists before the job is sold. Major expenses are labour, subsistence, travel, fuel, thirdparty rentals and expendables. Gross profit from operations must also cover equipment repair and maintenance, service locations, field operations support staff and head office administration. Then there’s cash required for equipment replacement, debt servicing and— if all the work is priced right—next up is taxes.

Operators can ensure adequate field margins with two approaches. First, equip sales and operations with job cost templates and basic financial training so that when OFS quote or bid, there is an adequate field margin built into the price. That way, if operators lose the work on price because it costs more to do the work than they will invoice, margins are protected.

Second, prepare timely and accurate internal monthly financial statements that include gross field margins in meaningful detail.

Review them with sales and operations to ensure progress and success. The reports will reveal the accuracy of pricing models and flag unplanned expense increases. Then the company can make the appropriate corrections on a month-by-month basis.

Using this tool, operators can have a bad month or two and still salvage the year.

Remember, the goal is more profits, not more practice.

The OFS industry has a lot of moving parts on every job every day. Tight internal controls for job pricing and field margins will help increase profits and implementing and maintaining controls around fuel and IT systems can reduce non-operational risks.

To find out more about how MNP’s Oilfield Services team can benefit you, contact David Yager, National Leader, Oilfield Services at 403.648.4188 or david.yager@mnp.ca

COVER

KEN BAUTISTA BUILDS SOMETHING

PHOTO BY EPIC PHOTOGRAPHY INC.

PHOTO BY EPIC PHOTOGRAPHY INC.

QR codes that are displayed on customized labels in grocery stores, helping shoppers identify and learn about regional foods. Localize now operates out of a suite and their business reaches beyond the borders of Edmonton.

Then there is LoginRadius, whose work got them into both TEC Edmonton and Montreal’s FounderFuel accelerators; Mitre Media, who completely outgrew their Startup space and has a headquarters in Edmonton and sales offices in San Francisco, Chicago, and New York; Mover, whose founders started by attending a Startup Edmonton Hackathon (where developers and designers come together to network and pitch demos) and was accepted into Vancouver’s GrowLab, to name just a few success stories.

There are 140 regular members right now, representing over 50 potential businesses poised to headquarter right here in Edmonton; yet none of this would be possible without the dedication, passion and vision of Bautista and his Startup Edmonton co-founder, Cam Linke.

Interestingly enough, the business partners didn’t know each other for long before founding Startup Edmonton. Bautista had already founded the educational-based company, Rocketfuel Games and was highly invested in Edmonton’s entrepreneur community and events.

“It’s a great community but you really had to look to find others,” says Bautista of his search to connect with other young entrepreneurs. “Cam had organized some grassroots events around the city, like DemoCamp. People kept trying to connect us because we were so like-minded!” When they did finally meet, they discovered they had the same goals – particularly their desire to help emerging companies succeed. Bautista left Rocketfuel in the hands of his business

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September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

partner so he and Linke could focus on Startup Edmonton.

True to Bautista’s philosophy of “roll up your sleeves and plunge right in,” once he and Linke decided Edmonton needed dedicated space, after many months of holding meetings and events in locations across the city, they put together Startup Edmonton in less than six months. “Raising the money, closing the lease on the space, setting up the non-profit company; it was fast, but it was what needed to be done,” he reminisces.

Before they settled into the iconic space downtown, the business partners spent much time connecting with entrepreneurs and investors in other cities to tap into a larger base of diverse startups. The ever-visionary Bautista realized that Edmonton’s reputation as an oil and gas town, along with the notion that everyone in the city works for a corporation or up north, is rapidly changing. “Edmonton has now become more of a home base for many different types of companies. You can get started here, you can be based here and you can do business anywhere,” he says. “We have the Internet. We can connect with other cities.” He was right. “We had a lot of people come out of the woodwork! Companies we didn’t even know about! Edmonton is full of people with amazing raw technical and creative skills.

We just needed to convert this talent into startups.”

It is important for Bautista that people realize Startup

COVER

KEN BAUTISTA BUILDS SOMETHING

Edmonton is not a business incubator, not that he has anything against incubators. “My companies, Hotrocket and Rocketfuel Games, had gone through incubators. As an education student I had to learn a lot about business the hard way. I also had to rely on mentors. The great thing about incubators is that you are working alongside mentors and other entrepreneurs. But in an incubator, everyone is siloed in offices and you have to draw them out. When you are just getting started and you are having conversations with people, you need an open environment. It becomes a matter of speed and traction to prove you are solving the right problem and that your creation is more efficient than your competitors’. Incubators create ideas. Startup gets you to build something.”

He again references the location and layout of the building, both of which are designed to bring people together.

The entrepreneur working on a tech startup could be sitting next to the entrepreneur who is creating more durable fabric for overalls. The web company will need a client and the overall company will need a website. In a startup community, they can easily find each other. “Today’s startups need all types - tech, artists and entrepreneurs. We provide opportunities to create collisions between those types of people.”

“For us, it’s all about mobilizing people,” he continues with enthusiasm. “In Edmonton there is a lot of talk about our projects and the buildings, like the new arena.

But we don’t talk about the people. Startup focuses on people and community. Our first goal and mantra is to support 500 entrepreneurs in five years. Why not 500 startups or 500 companies? Because we want to create a circle of 500 people that are entrepreneurs across every industry. Those 500 people will create a ripple effect. They will create 500 things over the years and they, in turn, will mentor and inspire others. It just grows and grows. The idea is, you don’t aim to change the whole city. Change just one person and the city will change. Everyone wants to work with the winners; that’s why you have shows like Dragon’s Den. But our job is to put people on the field who have the ability to win.

Here’s an analogy. If you want that elite hockey team, you have to build a farm team. You create that pool of talent.

We build the farm team.”

As any person in business knows, having an idea and the space to develop it is a good thing, but sooner or later you have to talk dollars and cents. Bautista has that covered too.

“When we decided to settle into a space, we created Flightpath Ventures to invest in talent and early-stage companies. Sometimes you don’t need a million dollars right off the bat. What can you do with $15 – $25 thousand dollars? Along with that you have mentorships and the ability to focus on what you are working on. We have our Founders 50 group – the investors, supporters and mentors that represent a multi-generational group. These are high-profile city builders such as, TELUS, ATB Financial and BioWare. Startup Edmonton launched in 2009. In 2012, startups in our programs raised $8.7 in venture capital. In 2013, that number was $13 million. This includes American investors. More and more investors are discov-

ering that the city on the move is not Vancouver, Toronto or Montreal. It’s Edmonton!”

As Bautista likes to point out, it doesn’t matter where you are in your life or career. If you have a viable idea, you can turn it into something amazing. He points to his own career path as an example. His father was an engineer and his mother was a teacher. Bautista had an interest in both gaming and technology but he didn’t know what career path to take. “I actually thought about going into business, but said ‘I don’t know if I’m cut out for that,’ he says, laughing at the irony. He wound up taking education at the University of Alberta.

“It’s one of the best things that could have happened,” he explains. “I like the fact that I have an education degree.

It provides me with a different perspective on entrepreneurship, and exploring the impact of environment and conditions for people to learn and develop their skills.

During my studies, I focused on how technology could be used in the classroom. My companies were built around educational technologies and games. That expanded into learning and training with interactive connections for corporations and government. It was always there, that education background. The goal of a teacher is to create an environment where students can reach their potential. When I look at what we are doing today at Startup, I see that we provide a space where people can reach their potential. We don’t lay it out for them, but we create the space where they have the ability to figure it out.”

Startup Edmonton has exciting news about the company’s future. Earlier this year they were acquired by Edmonton Economic Development Corporation (EEDC).

“We didn’t want to lose any culture or our grassroots identity,” says Bautista, “but we also didn’t want to stagnate.

This was the right move at the right time, especially under the leadership of (EEDC CEO) Brad Ferguson at the helm. Our company stays intact with a new shareholder, but joining them gives us new horsepower and we are really excited about that. It’s the next step.”

The energetic entrepreneur concludes with a big smile, “We have never been afraid of change. “We focus on the outcome.” That outcome looks great as far the past, present and future of Startup Edmonton is concerned. In October, Startup Edmonton will produce the first ever Edmonton Startup Week, a five-day celebration and showcase of the local startup community.

Maybe you have an idea but don’t want to jeopardize your financial obligations to test it out. Perhaps you’ve started a side business but need a space to work that isn’t overrun by children’s toys in your basement. Maybe you are graduating and instead of entering the workforce as an employee, you want to start your career as the boss. Whatever your reasons and ideas may be, Startup Edmonton gives you the place, potential financial assistance, mentorship and community to do the action that take your idea from a startup to a thriving corporation.

What is that action? “Build something,” Bautista grins.

“Jump right in, roll up your sleeves, and build something.” BIE www.businessinedmonton.com | Business In Edmonton Magazine | September 2014

35

CORPORATE HEALTH, WELLNESS & REJUVENATION GET DEFENSIVE (ABOUT YOUR HEALTH)

GET DEFENSIVE (ABOUT YOUR HEALTH)

BY NERISSA MCNAUGHTON

“An ounce of prevention is worth a pound of cure.” ~ Benjamin Franklin

F

eeling ill or suffering from chronic disease robs the joy out of life. While some health issues occur due to reasons beyond our control, the best thing we can do is go on the defensive and take steps now that will help to prevent illness. The good news is, those small and very achievable steps can have a big impact on your future health.

Optimal health is realized when three areas are in balance: physical fitness, good nutrition and mental health.

Chris Tse is a personal trainer and the co-owner of Blitz Conditioning. “A lot of mental and chronic disease is due to lack of movement,” says Tse. “You only need to move 120 minutes per week to reap the benefits. That’s just around 30 minutes per day for four or five days out of the week.”

The biggest mistake Tse sees is people not working out in their 20s. “It’s really critical for people to look at a weight shift in their 20s,” he cautions. “This indicates future health conditions.”

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September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

Basically, if you are rapidly gaining weight and are feeling sluggish and you are only in your 20s, (and the condition is not due to a medical condition), your body is telling you that your health will just keep declining unless you do something about it. Why suffer through bypass surgery if a daily walk and an increase of fruits and vegetables can get you off that path? “Fifty per cent of the people that consult with me want to lose weight or have had someone close to them suffered through a health issue,” says Tse as he indicates the time to get active is before your health causes you problems.

The trainer’s suggestions for increasing your activity level include an attitude shift and just getting up to move.

“Change your environment,” he encourages. “Get out of the workplace and walk for 40 – 50 minutes. Even 10 – 20 minutes a day is beneficial. Stop thinking that movement is this monumental thing that you have to overcome. Go to

HEALTH TREND: The number one question new executives have when going for an executive medical – can you tell me today what my health will look like tomorrow?

Copeman Healthcare’s Dr. Koehle and Dr. Dawkins share insight on predicting your health future through family history and genetic testing.

Established in 2005, Copeman Healthcare serves the healthcare needs of over 6,000 discerning individuals and their organizations from clinics in Vancouver, Calgary and Edmonton. Through trusted partners they can extend the reach of their services to most areas of the country. Copeman Healthcare offers premium health services, programs of prevention and medically supervised lifestyle change. Integrated medical teams help clients achieve greater longevity, improved quality of life and physical and psychological wellness.

PREDICTING HEALTHY FUTURES: Learn today what your health looks like tomorrow

| By: Barbara Balfour

If heart disease and diabetes run in your family, you may be worried about what the future holds for your own health. While it’s always helpful to know your genetic history, it doesn’t tell the complete story of where your biggest health risks might be hiding.

The good news is, you often don’t have to look too far. The strongest indicator of whether you will develop certain health conditions is what you have right in front of you, says Dr. Michael Koehle, a physician and Director of Research at Copeman Healthcare Centre.

“Although family history or genetic testing can indicate an increased risk for certain diseases, this is not where the challenge lies,” he says. “A key element of preventive medicine is the behavioral aspect of care. While it’s relatively straightforward to identify a patient’s increased risk of a particular condition, the real challenge comes with helping them make the lifestyle changes to mitigate that risk.”

At Copeman, comprehensive assessments of each patient, conducted by an entire care team, play a huge role in identifying and managing those health risks.

The physical examination involves the collaboration of a team of physicians, nurse practitioners, registered nurses, registered dietitians, kinesiologists and psychologists. It also includes extensive lab testing, including but not limited to an electrocardiogram, lung function testing, hearing and glaucoma testing, and a comprehensive array of blood and imaging tests.

To determine where their dietary and activity habits could use improvement, patients are also interviewed by a registered dietitian and kinesiologist.

They undergo a customized fitness assessment which looks at factors like their aerobic fitness, biomechanics, flexibility and balance.

After the comprehensive assessment is concluded, the collected data is analyzed to identify health risks and formulate a tailored plan of care.

The patient then reviews the care plan with their physician as frequently as needed in order to get back on track, and stay there.

While serious health conditions don’t develop overnight, it is important to follow up with frequent medical testing, says Copeman family physician Dr. Chris Dawkins.

“If your tests come back showing that your fasting sugar is elevated, meaning that the body cannot bring it back to proper levels even after a 10-hour fast, you know that you are at serious risk of developing not only diabetes but also heart disease,” he says.

Such tests are part of the extensive toolkit Copeman uses to evaluate future health issues. Results from tests for fasting sugars, cholesterol levels, and blood pressure monitoring over a 24-hour period can be plugged into a risk calculator to calculate an individual’s specific percentage risks for developing various diseases.

Other tools available to patients include genetic counseling, now available through Copeman’s recent partnership with Medisys.

Just as no two people are alike, no two organizations are alike. Copeman Healthcare Centre can build a comprehensive health & wellness program designed to provide the results you are looking for within a budget you can afford.

CORPORATE HEALTH, WELLNESS & REJUVENATION GET DEFENSIVE (ABOUT YOUR HEALTH)

A CLASS IN PROGRESS AT BLITZ CONDITIONING INC.

the gym if you can afford it. Join or She admits, however, “While it is start a corporate wellness program. common knowledge that eating a balDo physical activities with your anced diet does help reduce our risk family.” of developing diseases, applying this As for those three areas of health knowledge is a different story. We can being dependent on each othset ourselves up for success by keeper? Tse agrees. “Studies show that ing our goals small and realistic at the movement is a key component in beginning. Keeping your expectations mental health. When you are menreasonable will help you succeed. tally stressed, you are not eating Don’t expect to do a 180-degree turn well. Eating means taking in energy. and completely change things for Without movement, this comes out yourself overnight. This will only lead in ways like weight gain and anxiety. to one thing: failure.”

Mental stress equals physical stress Like with exercise, the key is to and that equals no exercise. It betake small, reasonable actions. Wales comes a cycle.” suggests, “Keep a vegetable tray in Loreen Wales, CEO of Revive Wellyour fridge and fill with vegetables ness Inc. is a registered nutritionist, that require minimal effort to proand is a staunch supporter of early cess. For example, snap peas, grape actions to promote health. tomatoes, cucumbers and carrots.

CHRIS TSE CO-OWNER AND PERSONAL TRAINER AT BLITZ CONDITIONING INC. “Good nutrition habits help preBy having them ready to go on a tray vent the onset of chronic diseases. By you will be more likely to incorporate embracing balanced eating earlier in life we increase our them into your day. It will take you less than 30 seconds to likelihood of living more years with energy, vitality and fill a bag for your lunch or snacks. health,” says Wales. “In Canada, poor nutrition is linked to “Choose a vegetable or fruit and a protein for snacks four out of 10 of the top causes of death.” and save the grains for meals. This will help you keep

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September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

CORPORATE HEALTH, WELLNESS & REJUVENATION GET DEFENSIVE (ABOUT YOUR HEALTH)

your grain intake in check. Some eating habits, the way to build and great examples include: an apple maintain your mental health is surwith two tablespoons of peanut prisingly easy. butter, one ounce of cheese with “Identify your signs of stress. Maya pear, a quarter cup of cottage be you procrastinate and avoid tasks cheese with half a cup of canned when they are overwhelming or maypeaches, one cup of vegetables with be you take on too many hours to get a quarter cup hummus or tzatziki work done. When you know how you dip, a quarter cup of nuts or roasted react to stressors, you can take action beans, or half a cup Greek yogurt the moment you notice the signs,” with half a cup fruit. says Challborn. “Know your boundar“Follow the divided plate concept ies and limitations and stick to them! for lunch and supper meals where half Whether it’s turning off your work of your plate is vegetables (approxiemail at a set time, knowing when to mately one and a half to two cups), a say no to extra tasks, or eliminating quarter of your plate is protein and a destructive relationships, it’s imporquarter of your plate is grains. tant to respect yourself by maintaining As always, when it comes to food balance and wellbeing in your life.”

IONE CHALLBORN, EXECUTIVE DIRECTOR, CMHA EDMONTON REGION. there is no getting around those One word that has been popping up veggies. They are simply nutrition in mental health awareness is “resilpowerhouses designed to keep us ience.” What does this mean? Challborn healthy – if we would just eat them! explains. “To be resilient is to be able to “We [Revive Wellness Inc.] rectough through the hard times and enjoy ommend half of your plate to be the good. Resilience means being able to vegetables,” says Wales, and she has differentiate having a bad day from havsome easy tips for those that have yet ing a bad life. Resilience means creating to embrace greens. “If you are veggie a hopeful life.” adverse, start by making a list of vegResilience is a word that can be apetables you are willing to eat. Then plied to all three aspects of a healthy start incorporating them slowly into mind and body. Physical fitness, good your routine. Aim for half cup servnutrition and mental health make you ing sizes twice daily for a few weeks resilient to future diseases and helps and then gradually increase to fill half you weather life’s ups and downs. Of of your plate. You can also add vegecourse, there are always those things tables to smoothies or soups. Try a that are beyond our control, but new vegetable once every one or two when you see the few, simple actions weeks and try it in different ways, like you can take now to achieve optimal LOREEN WALES, CEO AT REVIVE WELLNESS INC. EATS HER VEGGIES. raw, grilled or roasted. future health, why wouldn’t you want Like Tse, Wales sees the relationto get started? It’s time to skip that ship between nutrition and mental health. “Food does affect rerun in favour of a walk. Swap that ice cream for cold bermood. When we eat regular, balanced meals, it helps us ry smoothie. Leave the self-absorbed friend (or stop being maintain our energy levels, keeps our blood sugar stable and that self-absorbed friend) and engage in meaningful, conthus keeps our mood more consistent and reduces the risk structive social activities. of binge eating.”

Nobody says good health is only about being able to run Addressing the mental aspect of whole-body health is marathons, smile through an amputation or bench press Ione Challborn, executive director at the Canadian Mental the equivalent of your weight. Those people have their Health Association - Edmonton Region. time and place and we applaud them; but what is impor“Poor mental health may result in many different outtant are the small actions you take now to ensure your comes,” says Challborn. There is no one outcome; every healthy future. Just like you would put a few dollars away individual experience will be different. That said, poor each month to grow financial security for your latter years, mental health may result in ulcers (from stress), digestive invest in yourself with small daily actions that improve problems, high blood pressure (hypertension), chronic your physical and mental health. Your future self will headaches, back problems (from tense muscles and heightthank you (and it’s easier than recovering from something ened blood pressure), heart attack, unhealthy changes in you could have prevented in the first place). diet leading to weight gain or weight loss, depression and/ “Be proactive in self-care,” concludes Challborn; and she or anxiety, and even thoughts of suicide.” is right. The key to feeling and being well today and in the That’s a scary list, but as with physical activity and good future is up to one person. You. BIE www.businessinedmonton.com | Business In Edmonton Magazine | September 2014

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COMMERCIAL REAL ESTATE GAME ON!

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September 2014 | Business In Edmonton Magazine | www.businessinedmonton.com

COMMERCIAL REAL ESTATE

GAME ON!

GAME ON! Edmonton’s bullish commercial real estate market enters new phase with commencement

BY BEN FREELAND of the arena’s construction.

T

his October will mark an anniversary of sorts for the city of Edmonton, namely the 10-year anniversary of when the city rediscovered its developmental mojo. In October 2004 the city elected Stephen “No More Crap” Mandel as its mayor, thus setting in motion his grand vision for the city, and in particular, Edmonton’s downtown core. At the centre of this vision right from the start was the city’s most contentious commercial real estate project: a new downtown home for the Oilers to replace the aging and costly Rexall Place.

Ten years later, after years of protracted negotiations, ground finally broke on construction of Rogers Place, in what appeared to be a final vindication of Mandel’s vision for Edmonton.

But while Rogers Place has been city’s biggest headline grabber on the real estate front, the arena is but part of a much larger story. After a brief pause in activity in early 2013, Edmonton’s commercial real estate market is once again red hot and showing no signs of slowing down, with an enviable balance between supply and demand continuing to fuel a building boom. Mandel’s other dream, the closure and redevelopment of City Centre Airport, became a reality last November with the final shutdown of the venerable aerodrome, and took a further step forward in July of this year with the city’s approval of a $632 million plan to make the ambitious plans for the new Blatchford neighbourhood a reality by the end of the decade.

Meanwhile, Edmonton’s downtown renaissance continues to unfold. By the end of this year the city will have a new architectural icon in the form of the new Royal Alberta Museum and a new LRT line connecting Churchill Station with NAIT, via MacEwan and Kingsway – the city’s first entirely new LRT branch line since the system first opened in 1978. Additionally, this summer saw the announcement that one of Edmonton’s biggest commercial real estate stakeholders, Stantec, will be moving its headquarters to a new tower in the arena district.

For Edmonton’s developers, the most remarkable aspect of Edmonton’s transformation over the past decade has been the nearly unanimous public support around it. “The public support we’ve seen around the arena project has been unprecedented,” says Rick Daviss, executive director of the downtown arena project. “As a born and raised Edmontonian I can honestly say I’ve never seen this degree of unanimity over anything here.” Daviss asserts that construction on the arena has thus far gone exactly according to plan, and that the city is well on its way to completing the project on time and on budget for the 2016-2017 NHL season. “We’ve been doing our homework since 2008 and we’re very confident that we’ll open on schedule.”

For Daviss, there really was never any doubt that a new Oilers arena was a worthwhile venture for the city, in spite of the costs involved. “It was realwww.businessinedmonton.com | Business In Edmonton Magazine | September 2014

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COMMERCIAL REAL ESTATE GAME ON!

ly a no-brainer,” he contends. “Rexall Place is a very expensive facility to maintain, and it amounted to a choice between renovating Rexall and building an entirely new arena as part of the revitalization of downtown.” Daviss adds that the city studied several other downtown sports arena projects, including Denver, Los Angeles and Columbus, Ohio, and concluded it was a sound business development model. “Denver’s Lower Downtown (LoDo) stadium development has been a dramatic success, and L.A.’s Staples Centre was a similar boon to downtown L.A. to what we’re beginning to see here in Edmonton.”

However, the ultimate success of Rogers Place will be contingent not on the speed and cost-efficiency of its construction, but on the degree to which it serves as a catalyst to further adjacent development; and on this front Daviss is confident.

“Before the construction of Coors Field and the Pepsi Centre in Denver, land in the LoDo district was going for $1.77 per square foot. Since then it’s jumped to $27, and it continues to climb. The neighbourhood has seen over $1 billion in development. It’s been a huge commercial success. If we end up with a gorgeous arena but no commercial development around it here in Edmonton, the project will be deemed a failure. But all the signs are that it will be a tremendous boost to development.”

As Rogers Place and other megaprojects continue to press forward, the region as a whole continues to attract new out-of-town developers as news of the “Edmonton Miracle” continues to spread. Most of the city’s commercial real estate experts appear to agree that the current red-hot market shows no signs of slowing down in the near future. “I don’t see any signs of a cool down,” says Rahim Meghji, director of operations for Platinum Investments Ltd., whose holdings include Edmonton International Airport’s new Renaissance by Marriott Hotel. “The economic climate in northern Alberta is phenomenal. We are one of the biggest intermodal portals on the continent. We have huge logistical advantages and we’ve become a very viable place to do business. The city has done an amazing job at leveraging these advantages.”

While Meghji asserts that he would like to see more done at expediting the building permit process as applications continue to pile up, he is otherwise thrilled with the ease

and enthusiasm for public-private collaboration in the region. “As far as development is concerned it feels like everybody is on the same page these days,” he contends. “This certainly wasn’t always the case.” Even the simmering controversy over Edmonton’s proposed annexation of EIA and the adjacent lands doesn’t worry him. “I can see both sides of the argument,” says Meghji. “As a business owner it’s probably advantageous to work with a single administration, but the costs will likely be higher, so it’s kind of a wash.”

The one looming issue that threatens to derail Edmonton’s deRICK DAVISS velopment boom, most developers agree, is access to labour. While the province has made significant steps over the past few years in grappling with anticipated labour shortages, the federal government’s decision earlier this year to ratchet up restrictions on the Temporary Foreign Worker (TFW) program has many developers concerned for the future. “The feds have behaved in a very knee-jerk fashion over this issue,” argues Meghji. “The TFW program is an absolute must if we’re to continue growing our economy, as we simply don’t have the necessary labour base at present. We need a transparent model that works for all parties.”

For the time being, however, even the threat of labour shortages down the road doesn’t seem to pose a threat to Edmonton’s continued revitalization. “As far as the arena goes, we’re not at all worried about construction labour,” says Rick Daviss. “PCL has done a phenomenal job recruiting and has a very strong labour force. This project is already proving to be a great employment opportunity, and will continue as such once the arena is open. Labour shortages are certainly a concern for surrounding industries, but I believe the upside to all this development in terms of continuous immigration and in-migration will be strong enough to weather the storm.”

Ten years after the onset of the Mandel revolution, Edmonton has truly changed – both physically and psychologically. For developers with their fingers on the city’s economic pulse, these are exciting times indeed. “Edmonton is an engine within an engine, and things just keep on heating up,” says Daviss. “I’ve seen a lot of ups and downs in my years in this city, and I’m more excited now than I’ve ever been.” BIE

Ten years after the onset of the Mandel revolution, Edmonton has truly changed – both physically and psychologically. For developers with their fingers on the city’s economic pulse, these are exciting times indeed.

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JASPER AVENUE OFFICE TOWER GETS A SECOND CHANCE TO SHINE

I

t’s not every day that a high-rise office building gets a do-over, but that’s what is happening on Jasper Avenue and 99th Street after ATB Financial outgrew its old headquarters and moved across the street.

The departure of the 16-floor tower’s sole tenant offered an opportunity to transform the former bank building into 9Triple8 Jasper, a property redesigned for the needs of a new generation of businesses. The goal went beyond providing office space. The purpose was to create a quality environment and daily experience that will help tenants attract and retain the best work force available.

“We asked ourselves, if we were putting up a brand-new building today, what would we do,” says Jordan Hokanson, president of Hokanson Capital Inc., the owner and redeveloper of 9Triple8 Jasper.

The transformation begins at the sidewalk, where one of the drabbest facades on Jasper Ave. is being replaced by bright, glass-walled retail frontage. Staff and visitors will pass through beautifully detailed new lobbies on their way up to state-of-the-art offices.

9Triple8 Jasper is also being fitted with a 2,200-square-foot conference centre and a private fitness centre, which Hokanson promises will be something special. “I want people to have the same kind of experience as they would get when they work out at a state of the art health club,” he says.

Providing a first-class working environment for employees is one reason why accounting firm Kingston Ross

EDMONTON

O F F I C E

VAC A N C Y Q2 - 2014

Overall Vacancy:

8.1%

Downtown Vacancy:

7.8%

Suburban Vacancy:

8.5%

Financial District Vacancy: AA: A: B: C:

.

8.0% 8.6% 7.7% 7.9% 6.8%

Government District: Vacancy: A: B: C:

7.4% 8.3% 12.2% 1.8%

Suburban: 118th & Kingsway: 124 Street: 149 Street: Eastgate: Southside: Summerside: West End: Whyte Avenue: Sherwood Park:

2.7% 15.7% 7.9% 10.9% 5.9% 11.2% 12.4% 5.4% 11.3%

Avison Young is the North American real estate partner businesses trust for intelligent, integrated solutions. We deliver results that are aligned with your strategic business objectives, supporting real estate initiatives that add value and build competitive advantages for your organization

www.avisonyoung.com

www.bomaedmonton.org | BOMA Edmonton Newsletter | September 2014

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Pasnak LLP chose to become the anchor tenant and acquire the naming rights to the building.

“It’s in a prime location downtown for business, and our staff like that lifestyle where it’s easy to get transportation and access entertainment,” says Bob Wilson, CEO of the firm.

During renovations, working without tenants in the building allowed crews to make some noise. They stripped all the floors to the bare concrete and rebuilt 174,000 square feet of office space to 2015 standards of connectivity, comfort and style. 9Triple8 Jasper also got a complete environmental overhaul. The 1970s-era lighting, heating and air conditioning were all replaced with the latest environmental systems.

“The building was an energy pig when we started,” Hokanson says. “We have been able to cut utility consumption in half, from 4.2 million kilowatt hours a year to 2.1 million.”

9Triple8 Jasper was designed to meet the LEED Gold for Existing Buildings standard and to attain a federal Energy Star rating of 85 for consuming 61% less energy than the average Canadian office building. These efficiencies are not only good for the environment – they are also passed on to tenants in the form of lower operating costs.

Hokanson’s vision for the rejuvenated building is to create a living space for companies that have outgrown their current location downtown or in the suburbs. At 11,000 square feet

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September 2014 | BOMA Edmonton Newsletter | www.bomaedmonton.org

per floor, it’s the right footprint for organizations like ASET, the Association of Science and Engineering Technology Professionals of Alberta, another early tenant.

9Triple8 Jasper offers a quality location in the heart of the city without the premium pricing of new or legacy properties. Two LRT stations are within a few blocks, as are the Shaw Conference Centre, Churchill Square, the Arts District and the city’s best hotels, shopping and restaurants. While close to all the bustle, the chance to relax is also at hand. 9Triple8 Jasper is next to a pocket park and the restored Alberta Hotel on Jasper Avenue and only steps away from the spectacular river valley.

Underground parking is available with abundant off-site parking nearby. Currently, the building can accommodate tenants who need up to 100,000 sq. ft. of contiguous, multi-floor space.

Downtown Edmonton has grown since the original building opened in 1979; the way we do business has also undergone a revolution. Now 9Triple8 Jasper is being transformed and renewed to face the challenges of a new generation.

To learn more, visit 9Triple8Jasper.com. Leasing information is available from Colliers International at (780) 420-1585.

The 9Triple8 Jasper redevelopment is a project of Hokanson Capital Inc., a family-owned corporation with interests in commercial real estate. HCI also manages the largest portfolio of agricultural land in western Canada.

SR&ED IN THE REAL ESTATE INDUSTRY

Dream believes in better communities to live in and work in. Our goal is to be Canada’s top real estate investment, development and management company. dream.ca

The real estate industry is currently facing unprecedented challenges. Regulatory hurdles continue to drive additional costs, particularly as they relate to the environmental attributes of real estate projects.

C

ustomers are demanding more from technological innovation in terms of originality, value and environmental design — both in the construction process and final product. As a developer, builder, contractor, investor, property manager or supplier, your challenges and opportunities in the industry have never been greater. Incentives in support of innovation in this sector are readily available but they are increasingly focused, competitive and time sensitive. Awareness and readiness are essential.

The Canadian Scientific Research & Experimental Development (SR&ED) program offers some of the most generous incentives in the world. A white lab coat generally comes to mind over a hard hat and steel toes, but SR&ED activities go beyond those taking place in a traditional research lab.

Under Canadian tax law, the key benefits of qualifying SR&ED expenditures include: • Eligibility for federal investment tax credits (ITCs) of 35% of eligible expenses to reduce tax payable for Canadian Controlled Private corporations; and 15% of eligible expenditures for other entities.

• A full tax deduction in the year the expenditures are incurred.

• The ability to “pool” SR&ED expenditures, enabling you to carry forward these deductions indefinitely, to the extent that they are not currently needed.

• Alberta offers additional incentives of 10% of qualifying activities. Most other provinces also offer SR&ED incentives. www.bomaedmonton.org | BOMA Edmonton Newsletter | September 2014

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The SR&ED program can be used to help the real estate industry with support for innovations ranging from design and development of equipment and structures to building materials and new energy sources. Some areas that may apply include: • analysis of structural designs related to dynamic structures (retractable roofs, solar energy collection positioning systems), • design and development of construction equipment, tools and temporary construction structures, • investigations related to the development of new — or the improvement of existing — construction and building materials (metals/alloys, glass, plastics, ceramics, concrete/cement, insulation), or • investigations related to the development of new — or the improvement of existing — construction techniques to improve finish quality, durability and efficiency, soil remediation and to achieve environmental certification under programs such as LEED. Real estate companies are not typically perceived as being in the “science and technology” business, but they are often paying for and taking the financial risks in respect to engineering development work. Significant eligible project incentives are often missed because it is not easy to recognize who is entitled to the claim.

By way of example, engineering firms hired by real estate and construction firms often undertake SR&ED eligible projects yet are unable to make a claim for their technological advancements. This is because they are paid for their efforts and are not undertaking any financial risk. The real estate and construction firms paying for the engineering work are taking such risk but are often unaware of the potential for making a claim themselves. Consequently, many possible SR&ED claims are missed along the real estate development supply chain.

However, contract payment rules in the SR&ED regime are designed to prevent two Canadian companies from claiming incentives on the same project. These rules are among the more complex in the program. Four criteria are examined in order to determine who is allowed to make the SR&ED claim

when one Canadian company pays another to perform its SR&ED eligible work:

Contractor performance requirements

Does the contract state that the contractor was required to perform specific SR&ED work? This is often overlooked by the real estate developers.

Pricing vs. risks assumed

Would the contractor have been paid if the work did not initially meet the specifications set out under the contract? If yes, it may indicate that the financial risks were taken on by the payer – again typically the developer or general contractor and as such they are entitled to the claim.

Intellectual property

If the rights to the intellectual property (IP) of the SR&ED work belong to the payer, this may indicate that the contractor was required to perform SR&ED on their behalf.

Contract for service vs. contract for the sale of goods

A contract for service may indicate that the SR&ED work was being performed on behalf of the payer.

The SR&ED program continues to be the single largest federal funding source and one of the most generous incentive programs in the world. There is no question that Canadian real estate companies will continue to deliver on innovation and contribute to the future competitiveness and prosperity of the Canadian economy. Make sure you do take advantage of the government’s programs to assist in the financing of such innovations. Contact a BDO specialist today or look at our website at www.bdo.ca/real-estate.

BRINGING THE OXFORD NAME BACK INTO EDMONTON’S DOWNTOWN CORE

O

xford Properties Group is proud to announce the rebranding of City Centre Place to Oxford Tower, located in the heart of the financial district in Edmonton. 2014 also marks the 40th anniversary of the newly branded tower. The

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September 2014 | BOMA Edmonton Newsletter | www.bomaedmonton.org

recent $1.3M lobby redevelopment has positioned Oxford Tower in the forefront of the city’s downtown revitalization currently taking place and ensures that it remains a landmark office tower visible from all parts of the city. Edmonton

is the birthplace of Oxford and remains an important market for the now $35 billion global company.

Oxford, an OMERS Worldwide Company, is an owner, developer, investor and manager of real estate. From our humble roots that began in Edmonton some 54 years ago, the portfolio now extends to approximately 50 million square feet of office, retail, hotel, industrial and multi-residential assets

located in major international markets including Canada, the U.S. and Europe.

www.bomaedmonton.org | BOMA Edmonton Newsletter | September 2014

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USING ADVANCED TECHNOLOGIES TO STREAMLINE THE OPERATION AND MAINTENANCE OF FIRE AND LIFE-SAFETY SYSTEMS W

hen it comes to the operation and maintenance of fire and life-safety systems, advanced technologies have emerged that can be put to powerful use today to help building owners and managers create a safe environment and ensure the facility operates as effectively and efficiently as possible.

In all types of buildings and environments, the trend toward embedding more intelligence and capability into fire and lifesafety systems can improve the protection of life and property and provide added value. The array of innovative technologies available from Tyco Integrated Fire & Security includes remote diagnostics capabilities for fire alarm systems, automated inspection and reporting for fire and life-safety systems, and secure access to service information via an online customer portal.

For building owners and managers, these smart technologies can: • Enhance life-safety protection for building occupants • Simplify the inspection, testing and maintenance process as well as related documentation and reporting • Improve a facility’s operational efficiency • Reduce or eliminate nuisance or unwanted alarms resulting from a lack of system maintenance • Increase business continuity • Lower overall life-cycle costs • Support compliance with applicable codes and standards • Help to manage risk

Remote Fire Alarm System Diagnostics

Using a cloud-based software platform, fire alarm system devices can be connected and accessed through the Internet.

These connected products contain embedded technology that enables data to be turned into valuable information to help optimize efficiency and provide a higher level of customer service.

Remote diagnostics technology gives expert Tyco technicians, based in the company’s Service Resource Centre, a 24/7 electronic window into the status and operation of our ad-

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September 2014 | BOMA Edmonton Newsletter | www.bomaedmonton.org

The automation is achieved by having technicians use handheld, electronic devices that read bar coded information on system devices and components. The software guides the technician through the process, highlighting each of the devices due for inspection. When the inspection is complete, an electronic inspection report – formatted to meet compliance standards – is automatically generated and emailed to the customer. Additionally, all the inspection data is stored on an online portal, giving customers easy, secure access to essential service information – 24 hours a day, seven days a week.

Not only can these tools save time and money that would have been spent generating reports to support compliance, they can also provide an efficient online means for a building owner or facility manager to mine his or her own data to develop customized reports and detect important trends. The trend data can help benchmark how well an organization is performing and identify areas for improvement

vanced fire alarm systems. The remote service technicians are automatically alerted to system issues. They then use their expertise and the fire panel diagnostics to identify the root cause of the issue. If a service call is needed, the responding local technician can come to the facility with a clear, upfront understanding of the problem, the appropriate solution, and the parts required to fix it on the first visit.

The remote service technicians can also identify upcoming predictive maintenance needs, such as smoke detectors that will soon need cleaning to prevent them from causing a system trouble or nuisance alarm. Based on the diagnostic information, a practical schedule of site visits can be arranged to clean detectors in a timely, efficient and non-obtrusive way.

Building owners and managers with connected remote diagnostics solutions from Tyco Integrated Fire & Security gain an array of important benefits, including more uptime, fewer business disruptions, faster problem resolution, in-depth system operations data, and lower life-cycle costs.

Tyco Integrated Fire & Security is a leader in the market, providing comprehensive fire, security and life-safety solutions for businesses and large enterprises across Canada. We provide single-source solutions with a portfolio that includes fire alarm, sprinkler, suppression, healthcare & emergency communications, access control, intrusion, video, and monitoring. Our 2,000 employees, across 35 local offices, help protect over 100,000 Canadian businesses.

For more information, visit www.tycoifs.ca

Automated Life-Safety System Inspection and Reporting

Conducting timely inspections of fire protection and lifesafety systems and properly documenting the results in inspection reports are vital elements of any comprehensive life-safety strategy. Technology available today makes it possible to automate a portion of the life-safety system inspection process. Electronic inspection reporting is a software solution from Tyco Integrated Fire & Security that supports the inspection of fire and life-safety systems using a laptop or a pocket PC with a bar code reader. The power of electronic inspection reporting lies in how it speeds the inspection process, improves record-keeping and documentation, and works in concert with the company’s online customer portal. www.bomaedmonton.org | BOMA Edmonton Newsletter | September 2014

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TOGETHER WE’RE CREATING MORE MOMENTS FOR ALBERTANS FACING CANCER

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BUILDING THE FINEST HOMES AND RELATIONSHIPS

By Nerissa McNaughton

Kimberley, proud owner of five Home Builder of the Year awards from the Canadian Home Builders’ Association (Edmonton Region), celebrates 25 years.

Kimberley was voted Edmonton’s Builder of the Year five times in the past six years.

I

n the same way a home is made up of many parts, the products Kimberley creates are made up of many relationships. The company builds a personal relationship with clients, stakeholders, staff and suppliers because this is what goes into creating the perfect home. The end result is more than walls and a roof. It’s a high-quality, well-planned, detailed space where the owner feels right at home from the first time he or she opens the door.

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The Buena Vista CustomBuilt model, features soaring two-storey ceilings and stone fireplace, and is one of Kimberley’s newest showhomes. You can find it in the prominent neighbourhood of Jagare Ridge, the first new golf community in Edmonton in over 20 years.

Dave Jewett founded Kimberley in 1989. “Dave always had a passion for housing, was involved in housing and construction in various forms in the early stages of his career and had an extensive background in marketing,” explains president Steve Ruggiero. “He reached a point in life where he wanted to accomplish something special, so he founded Kimberley Management Ltd., which became Kimberley Homes.”

The company name is the result of inspiration. While Jewett and his wife, Donna, were searching for the company name, they took a family holiday in British Columbia. Their trip took them through Kimberley, B.C. The natural beauty of the city, the beautiful day and being surrounded by family simultaneously struck a chord with Jewett. “Why don’t you write that one down,” he suggested to Donna. Soon after, the name was still resonating, so it became the name of their company.

“Every builder says they focus on quality, but there are very few players in the market that truly have quality control at the forefront of everything that they do,” says Ruggiero. “We’re not scared to pay what’s required to have the best trades. We pride ourselves on not overloading our superintendents so they can deliver, time after time, industry

Kimberley Homes | 25 Years

leading product. We have a very consultative process with our clients, right from day one. We provide opportunities to meet with our senior team and with construction staff during regular visits to the home. We really value the quality of the relationship with the customer, equal to the quality of the homes we produce. We pride ourselves on high levels of quality control, and making the homes the best they can be when we turn them over. We have a strong after possession service program and when we look at feedback from our customers, we are consistently told that we deliver on the value promised.”

Although Kimberley builds townhomes, single detached and custom homes, the majority of their projects (with the exception of multi-family products) are customized. “We have an extensive collection of standard models and allow for some customization to these plans. Our CustomBuilt collection offers a totally customized building experience and accounts for about 20 per cent of our current volume,” Ruggiero explains. In this way, Kimberley caters to both new buyers and those on their second, third or even fourth move-up purchase.

Although Kimberley has produced many successful models over the years, the most notable is the New Hampshire plan. “There are elements of that design that are, without question, trademarks of the Kimberley brand,” says Ruggiero.

The New Hampshire starts at 2,823 square feet over two storeys. Standard features include Kimberley’s signature open-rise staircase and multi-level floor plan, a chef ’s kitchen complete with two islands and a walk-through pantry, a Jack-and-Jill bathroom, spa ensuite, walk-in closets and more. As seen in the New Hampshire, those

Kimberley’s innovative townhomes in the prestigious Larch Park neighbourhood showcase the benefits – and beauty – of the City of Edmonton’s new street-oriented revisions to the zoning bylaws.

The Intrigue (and Essence) models in Larch Park feature granite and quartz countertops, upgraded hardwood and tile, and luxurious finishes throughout the home. This is not your average townhome!

Congratulations on 25 years of building breathtaking living spaces

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Kimberley Homes | 25 Years

Page 3

Ruggiero says of his team, here pictured with their 2014 Builder of the Year award: “if you surround yourself with great people, great things will happen.”

hallmark Kimberley features are built with flow, convenience and style in mind – before adding those extra-special touches such as see-through fireplaces and ample space for a home theatre, downstairs bar, or fitness room.

The New Hampshire is among the most popular models, but there have always been ones that stood out over the years – and ones that made history. Ruggiero explains, “When I think of homes that define us, there are three that come to mind from the earlier years. The first is the Davidson. For the early 1990s, it had a spectacular front elevation and won an award for best exterior. It was a spectacular home, and it was on the front of the majority of our brochures back in those days.

“Another model from the archives is the Ascot. We still build a variation of it today. What was really unique about the Ascot, going back to the late 1990s, is that it was the first bonus room concept model built in the city of Edmonton.

That home is what started the trend of homes with large bonus rooms over the garage. It became a home that set a trend that is still prominent today and was hugely successful for us.

“And again, the New Hampshire has been our flagship model for many years and still remains very popular. It has won a number of awards for us over the years, including an award for the most popular selling home/model in the city in 2007.”

Although Kimberley has initiated many industry firsts and has had many memorable models over the years, they have not yet peaked in terms of what they can do and build; and they don’t plan on reaching this pinnacle any time soon. Like each floor plan, they adapt, move and flow with the times, intent on setting the pace and the rules of the industry.

Page 4

Kimberley is proud of their involvement with the Cash & Cars Lottery over the past five years in support of cancer research. The 2014 Lottery Home opened to the public in August.

“Our Kimberley Communities Larch Park townhomes project is one of the most challenging and outstanding developments we’ve ever been a part of,” confirms Ruggiero of the in-development project. “They are very high-end, customdesigned townhomes with prices reaching well over $500K. It’s a product that was designed specifically for that site in partnership with Melcor Developments.” As recently as last summer this project was blogged about by Mayor Don Iveson and complimented for its creativity and innovation.

Strong companies are built by strong teams and at Kimberley, that’s no exception. The staff includes long-term member Sharon, who just celebrated 18 years with the company. “At the time Sharon started, the company was still quite small.

She started long before I was here,” smiles Ruggiero. “She began as a combined reception, administrative assistant, office

Kimberley Homes | 25 Years

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Kimberley Homes | 25 Years

Page 5

manager, Jill-of-all-trades. She and Susan – another longtime employee – were the only office staff back then. Garry, our current VP of construction started with us in the field about 17 years ago as well. I think it’s a testament to our environment and our values that these stellar individuals have chosen to link their careers and future with ours.”

Kimberley staff enjoy a strong benefits package, group RRSP program, reward trips, golf, fishing and other activities (depending on position and tenure). To celebrate the 25th anniversary, the entire staff and their spouses will be treated to a vacation in Las Vegas.

It’s not just the staff that Kimberley gives back to, it’s also the community. “There are a number of charities that we support both publicly and privately,” says Ruggiero. “On a public front we are big supporters of cancer research through the Cash & Cars lottery program and to date have donated over $500,000 to the charity over the past five years through the construction of the charity’s grand prize lottery home. We annually hold the Kimberley Homes Golf Classic tournament for irritable bowel disease, which has raised over $500,000 for the University of Alberta Hospital Foundation in the last two years towards research done right here in Edmonton.”

Whether it’s a townhome or a single family home, a luxury custom-built estate plan or a sprawling acreage home, an infill or a show home, each and every Kimberley home is an experience. The passion of the past and present leadership backed by an enthusiastic team, the top names in all applicable trades, and the creativity of the designers are what every customer experiences.

“We’re at a point of reflection, while also planning on the road ahead, ultimately setting the stage for the next 25 years,” says Ruggiero of the company’s future. “At the end of the day

we are moving into the next chapter, positioning ourselves for growth to build in excess of 100 homes a year while never losing sight of the importance of people, our team, our partners and our clients. We are in the process of designing and building a new office building for our company. In terms of product, it’s kind of funny how you go back to where you started. We are placing a renewed focus on the infill market, while also continuing to expand what we do from a multifamily perspective.

“Also, we are really focusing on continuing to build a great team that is relentlessly dedicated to our vision, mission, philosophy and core values. It all comes down to controlled growth and having a team that is dynamic, receptive to new ideas, concepts and continuing change.”

Ruggiero thanks founder Dave Jewett for his support and mentorship. “We would not be where we are today without Dave’s vision and guidance.” When asked about other mentors, Ruggiero also pays tribute to Jim Brown of Sherrick Management Ltd. “I was very fortunate to start working with Jim early on in my career. I learned a lot from him about what defines great relationships and I have always respected his sincerity and how fairly he treats people,” remarks Ruggiero. “I really admire his vision for the communities that he builds.” He also thanks all those the company has worked hard to build relationships with over the years. “The single focus of our business is people. Without a great team – staff, suppliers, land developer partners, and clients – we wouldn’t be where we are today. I’m a big believer that if you surround yourself with great people, great things will happen. I think that’s why we have such a tremendous future ahead of us.”

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Page 6

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Kimberley Homes | 25 Years

Congratulations

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Kimberley Homes | 25 Years

Page 7

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Lindsey, Dan and Jeff in the manufacturing plant with three CRAC units.

The Silent Solution S

By Nerissa McNaughton

ilent-Aire Manufacturing Inc. designs and builds custom heating, ventilation and air conditioning units (HVAC) and data centre cooling systems.

If you walk into a building that has a Silent-Aire custom HVAC solution inside, you may not see their handiwork. The large mechanical systems are designed to be unobtrusive, working seamlessly with the building’s mechanical design; but it’s not

what you can see, it’s how the air feels – and what you won’t hear – that matters.

A data centre houses a massive network of computer servers and are used by organizations to store and process data. Without proper cooling and ventilation, the temperature inside the data rooms will rise quickly due to the massive amount of high power density computer servers. Temperature gains through

Silent-Aire Manufacturing Inc. | 20th Anniversary | 1

20 ANN TH

Custom HVAC unit is prepped for a school.

the space will cause servers to shut down and cause data disruptions, which in turn leads to millions of dollars in lost revenue each minute the system is down.

Hospitals, schools and other institutional buildings also require temperature and internal climate regulation, quite often supplying conditioned air to spaces that are also critical in nature; possibly an operating room in a hospital or conditioned air serving an auditorium that would have very strict acoustic tolerances (such as what Silent-Aire did for the Northern and Southern Alberta Jubilee Auditoriums back in the mid 2000s when they were renovated). Other custom applications may include ventilation systems in the industrial sector where strict

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filtration requirements may exist, chemical scrubbing or precise humidity control is required in a potentially corrosive environment or even in an explosion rated area.

This is where Silent-Aire comes in. Headquartered in Edmonton with another manufacturing plant in the United States, Silent-Aire’s custom HVAC solutions have been quietly keeping data safe and building temperatures regulated for over 20 years.

The company is incredibly successful with prominent contracts in the $20 - $100 million range. It is their systems that heat and cool some of North America’s largest corporations and their technology that keeps several world-leading data centres operational.

But getting from the start to where they are today was not always a smooth ride.

In 1980, Don and Lorraine Leckelt started a contracting company. In 1987 that company was decimated by Edmonton’s famous tornado. They rebuilt the company just in time to face Alberta’s economic downturn in 1994. Contracting work was slow, so the enterprising couple diversified their company and created Silent-Aire Manufacturing Inc. Focusing on HVAC systems made good business sense for the young entrepreneurs. At the time, Don had already been building units to supplement the contracting company’s projects. Don designed his own HVAC systems for school portables that were required to be nice and quiet. Students, after all, couldn’t learn with mechanical noise humming in the background. They needed silent air; which is how the company spinoff got its name.

As the contracts and opportunities grew, so did the couple’s two sons, Dan and Lindsey. They entered the family business

Silent-Aire Manufacturing Inc. | 20th Anniversary | 2

IVERSARY

“

As the contracts and opportunities grew, so did the couple’s two sons, Dan and Lindsey. They entered the family business by working during the summers, then both going full time after graduating from engineering programs at the University of Alberta (U of A).

One of Silent-Aire’s open concept work spaces.

by working during the summers, then both going full time after graduating from engineering programs at the University of Alberta (U of A). “In grade seven I said I wanted to be an engineer and join the family business,” laughs Lindsey Leckelt who shares co-presidency with this brother, Dan. Dan and Lindsey are not the only ones that have been around since the company’s humble beginnings. “Two of our vice presidents have been with us for 14 years,” explains Dan. “They were our school friends since elementary and junior high and they are both under the age of 40.” These VPs are Neil Merkel,

VP manufacturing; and Ryan Vetsch, VP engineering. Merkel worked at Silent-Aire during the summers and started fulltime as a plant manager in 2000. Vetsch, who also started in 2000, started as a junior engineer after graduation from the U of A. “There are 10 VPs and eight are under the age of 40,” add Jeff Suggitt, VP finance. “It’s a young, strong team. That is what the guys [Dan and Lindsey] are after.”

“Having a younger company allows you to be more progressive and relate to a younger generation,” Lindsey agrees.

“Part of our design comes with being young and thinking

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20 ANN TH

outside of the box,” Suggitt nods, reflecting on his decision to transition from Silent-Aire’s banker, a position he enjoyed through Canadian Western Bank for many years, to joining the energetic Silent-Aire team. “I had an opportunity to work with young executives with similar interests in a very interesting and expanding company. It gave me an opportunity to make a difference,” he says of this decision.

Other members of the team include the 300 staff in Edmonton and over 120 in the United States.

“Silent-Aire operates five days a week, 24 hours a day,” says Dan. “We have 12 hour weekend shifts along with 10 different shift opportunities. We try to allow for what works best for our staff ’s family or personal situations. And the building is clean and safe. It’s a great working environment.

“We have a culture that our employees thrive in. In our industry there is plenty of opportunity to develop new technologies. We encourage this development. Lindsey and I are good at finding the strengths of our employees and putting them into positions to make them successful and help them develop ideas.

Our workplace is designed with a modern layout that utilizes new technology and promotes safety and esthetics to help every member of our team push the envelope and be successful, from the engineering staff upstairs to the trades and labourers on the manufacturing plant floor.”

A tour of the facility confirms this fact. Silent-Aire’s headquarters is located on the edge of Edmonton in a new, up-andcoming industrial park. The building’s impressive glass front rises regally over the parking lot and overlooks the green spaces that are primed for landscaping. The building is new. The company moved into it in February of this year. The building, which Lindsey designed with Todd Voshell from ISIS Design and Architecture, utilizes 80,000 square feet of expertly designed space and brings their engineers, managers, clerical support and manufactures all under one roof.

What comes out from under this roof is amazing.

“One product that we build is our modular data centres (MDC units),” says Lindsey. “It’s a data centre in a box. It’s turnkey. We build some extremely large air handling systems and MDC units. Either of them may range up to 100 feet long by 50 feet wide by 10 to 20 feet in height.”

Our computer room products are unique in that we incorporate energy-friendly technology into the equipment and we do it in a compact fashion. Normally when an engineer wants to use the technology we have in our units, they need to utilize a large, expensive air handling system. We achieve it in an economical, compact solution designed specific to our customer’s needs, climate and geographic location.”

Since they design and provide for clients globally, a unit designed to handle Edmonton’s cold winters and warm summers may differ from a unit situated in Arizona’s hot, dry climate. The climate, however, is not the only challenge.

“Ninety-five per cent of our revenue last year was exported out of country,” Lindsey explains. “Ireland, Brazil, the Philippines, America; we are also working toward securing work in Australia and Russia. When you ship your product overseas, you have different electrical standards, certifications, etc. and sometimes language barriers can also be an issue.”

These days jobs such as the $27 million dollar project that had to be completed in eight months or the three-year contract worth over $100 million are just part of the daily routine, but Dan and Lindsey clearly remember landing their first major contract.

These days jobs such as the $27 million dollar project that had to be completed in eight months or the three-year contract worth over $100 million are just part of the daily routine, but Dan and Lindsey clearly remember landing their first major contract.

Silent-Aire Manufacturing Inc. | 20th Anniversary | 4

IVERSARY “It was in 2004 and our first data centre client,” says Lindsey with all of the excitement he and his team felt 10 years ago. “Amazon.com! It was a turning point for our company in providing work to the data centre industry.”

“We were pumped!” agrees Dan with a huge smile.

It would be fair to assume that a contract of that size for the extremely notable Amazon.com empire would quickly turn that excitement into fear and anxiety, but that was not the case.

“When that call came, there was excitement,” Suggitt says with a knowing grin, “but these boys had a lot of faith in themselves. They knew they could get the job done for such a globalscale company. They took a big risk and it paid off in the end.

They had confidence.”

Confidence is where it all started. Confidence is what allowed their parents, Don and Lorraine Leckelt, to start a contracting company, rebuild it after it was literally torn down, and rebrand it when the market for their services changed. Confidence brought two brothers together to run the company after their parents retired, trusting in their skills and instincts to build a winning team and outstanding work facilities. Their clients from all around the world have confidence in Silent-Aire – enough confidence to want their HVAC products from the Canadian company that sits proudly on the outskirts of Edmonton.

Dan, Lindsey and the VPs of this thriving company could easily sit back and toast their accomplishments. After all, they are all young and successful. But that type of success doesn’t come from just one place. It comes from a team that includes all the staff, stakeholders, and community – and they know it.

They are heavily involved in volunteer work, charitable giving

and creating jobs and opportunities for hard workers.

Silent-Aire’s growth is on a rapid trajectory to the tune of $6 million in revenue five years ago to over $80 million last year; all organic growth with no venture or seed capital. But in typical Dan and Lindsey fashion, they are proud and confident in their achievements, while willingly, knowingly and proudly acknowledging where it all began.

“We want to thank our parents,” they both agree. “They taught us hard work and integrity.”

They certainly did; and that hard work and integrity has benefited millions over the years and will continue to reach millions more, all over the world, for years to come.

The Leckelts and the management team at Silent-Aire thank their staff for their hard work, dedication, and belief in what they could achieve. Many of their staff stayed with Silent-Aire during their growth phase despite the opportunity for higher earning potential elsewhere. The Leckelts also thank their families for their support and the community for the support and the opportunity to invest in team sports and various charities.

They thank their vendors and most importantly, their clients for their loyalty, confidence and patronage.

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TRUE MAVERICKS Maverick Inspection Ltd. Celebrates 20 Years

A

by Warren Tessari

maverick is someone who, instead of copying the behaviour of others, comes up with new solutions and chooses their own path.

When Maverick Inspection Ltd. was first established in 1994, that was exactly what the founder and president, Phil Bedard, had in mind. Coming out of a rigid culture of military and industrial non-destructive testing, Phil identified a need for innovative and adaptable solutions for unique applications. This need has only increased as Western Canadian industry has evolved, and Maverick has kept pace with that demand.

“We purchased our first video probe,” says Bedard, “because there was a need that traditional non-destructive testing was not fulfilling. Since then we have not looked back. Maverick’s economy is based on developing custom solutions and introducing prototypes and new systems, and these technologies turn into our regular services as our clients become familiar with them.”

Maverick has long-standing expertise in non-traditional technologies such as remote video robotic cameras and video scopes (RVI), ground-penetrating radar (GPR), infrared thermography (IR), specialized utility locating, and laser pipe profiling. Maverick technicians have travelled the world working with engineers, archeologists, architects, industrial plant inspectors, law enforcement personnel, geologists, geophysicists, pipeline construction crews, documentary film makers and a wide range of other trades and professions.

Maverick Inspection Ltd. | 20 Years | Page 1

A major challenge for businesses is to continually innovate and adapt. Maverick has a unique system of introducing new technology and developing new methods.

Maverick gives senior technicians the tools and flexibility to create new solutions and improve existing methods.

James Harrison, Maverick’s senior GPR technician and technology initiatives leader, is especially animated when he talks about methods that he has created and used to gather and analyse data.

“When you are using a radar system for archeology on a small island in the South Pacific, there is no electronics or department store. There is no source to replace the cable that is missing from the rental GPS system required and provided by the client on such a remote site. However, I use my knowledge of Excel spreadsheets and satellite time stamps, a handheld consumer GPS, and some lateral thinking to embed precise positioning in the radar data.

That’s what Maverick does, and that is the depth we bring to the table even for the everyday scans we perform before our construction clients cut or core concrete in an office tower or shopping mall.”

Leonard Olchove, senior video technician and sales and marketing manager at Maverick likes to remind people of the company’s culture of unique projects and technology.

“We have assembled complex robotic crawler systems by feel, one component at a time through small hand-holes in steam headers at power generating plants. Warren Tessari, operations manager, did so while basically upside down. We have created a whole range of delivery systems for our robotic cameras to get to awkward positions without massive research and development costs to our clients, whether it is on top of a flare stack or down in a pipeline crossing under a river. We are the first company to have CSA certified explosion-proof remote camera systems for hazardous environments. As we move forward into our new facility, we are expanding our in-house custom metal fabrication, electronics and research capabilities. This is what we love to do, and it is the vision we have had for this company from the beginning.”

As the company has grown, it has taken its mission of safety, diligence, and innovation to heart in all areas of operation. “We steer clear of traditional business models,”

Maverick Inspection Ltd. | 20 Years | Page 2

says operations manager Warren Tessari, “in all aspects of our work. Profitability is necessary to remain in business, but our culture is not about money. We recognize the need for the framework of procedures, legislation, and compliance that is the backbone of Alberta business, but we have worked to flesh that skeleton out with group of creative, flexible, and engaged individuals.”

Part of the struggle with doing business in Alberta is finding employees and retaining and expanding expertise. Maverick’s solution for this problem is a very open workplace with a strong mentorship program. Senior technicians are paired with junior employees, and the field teams gather and review data together, interact with clients, and overcome worksite challenges. This approach allows the core values of safety and diligence to be passed down through the ranks, providing fresh perspectives for seasoned employees as they teach the next generation of technicians.

This approach has been especially valuable to Maverick because much of the data analysis and presentation involves unique methods and techniques that have been developed internally. These include, but are not limited

to, best practises for data gathering, working with clients to understand and accomplish difficult job scopes, and generating viable and reliable results with complex and cutting-edge software.

“Maverick’s employees, both technical and administrative, are brilliant to work with,” Tessari adds. “They support each other, teach each other, and enjoy working together.

We have not had any issue attracting and keeping eager and capable people, because once they meet their coworkers, Maverick feels like home and a place they can be themselves and continue to move forwards personally and professionally. Everyone is dedicated to making Maverick work, so it is very easy to provide flexibility in scheduling and duties for a healthy work/home life balance.

“It is important to take care of material necessities such as equipment, finances, regulations, and paperwork, but ultimately Maverick is people, including not only our family of employees, but our clients, vendors, and others we interact with every day. This is an age of innovation and new technology for businesses, but those initiatives should be for the benefit of people, not at their expense.”

Maverick Inspection Ltd. | 20 Years | Page 3

After 20 years of success in Alberta, Maverick has demonstrated that innovation works, whether it is applied to technological solutions, company management, or dayto-day field operations. This is the business model that Maverick intends to develop even further in the decades to come.

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ProCura Edmonton Team at Intact Insurance Building. Photo by Epic Photography

ProCura, Building

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roCura is one of Western Canada’s most innovative, successful and respected property development and management companies, and continues to transform the good life in Edmonton.

Since 1979, ProCura has designed trend-setting landmarks and communities in the city, as well as in Calgary and Vancouver.

As ProCura expands its diverse portfolio of residential, office, retail and mixed-use buildings, the company will continue to promote and foster the creation of vibrant, livable spaces.

ProCura has earned an exceptional reputation among industry and municipal stakeholders for the performance and quality of its services – from development, investment and asset management to property management, leasing and marketing.

As ProCura owners, George and Sherry Schluessel, point out with passion and energy – affecting people’s lives is what it’s ultimately all about.

“Key business aspects like the timely acquisition of land, desirable locations, return on investment (ROI), and the innovative design and development of great properties are essential, of course,” says Sherry, senior managing partner of ProCura, “but when you get right down to it, the entire process and the finished product is about people. It is all about relationships. The attention to detail, quality of construction, and an understanding of what people want and what lifestyle they are looking for – these are ProCura priorities.”

With more than 35 years of solid industry savvy and expertise from the development of ground-breaking properties, as well as tremendous consumer experience based on complete respect for commercial and residential tenants, George, president and CEO, credits ProCura staff and development partners for the company’s success.

Lifestyles

ProCura | 35th ANNIVERSARY | 1

By John Hardy

Central Tower – Century Park

Intact Insurance Building – Jasper Avenue – LEED®GOLD

He underscores that the company’s true focus is people. “We put a lot of thought about the eventual residents of our buildings.

While suburban product is different from downtown product, all residential tenants have a right to expect an affordable and quality home that suits their daily lives,” he says.

“Our commercial tenants demand and deserve the best possible location and the facilities to enable them to conduct efficient business and make their organizations grow. ProCura is committed to ensuring they get what they need and what they are looking for.”

Sherry outlines some changing aspects of the development industry, such as fluctuating market factors and shifting consumer trends.

“Sustainability and the environment are vital ProCura issues and increasingly important considerations for our residential and commercial tenants. The sustainability of our buildings is vital, and there are many tangible benefits of developing or retrofitting to meet the new sustainability standards.”

The widely popular Leadership in Energy and Environmental

Congratulations ProCura on 35 years of Success!

Congratulations ProCura

Innovative thinking. Practical results.

Design (LEED) program is an environmental building rating system that has already transformed the building industry for a more sustainable and healthy future. LEED offers third-party certification for green buildings and provides developers with an effective way to use various “green” aspects in everything from building design, construction and operations all the way to routine maintenance.

LEED continues to re-define ProCura processes and protocols.

ProCura is proactively committed to sustainability and has an in-house LEED-accredited team that specializes in developing, integrating and maintaining LEED protocols at all new commercial and residential properties.

“There is a win-win pay-off! Reduced energy costs and water usage, increased air quality and more natural light in our commercial properties have been shown to cause 16 per cent higher levels of employee productivity, work performance and significantly reduced levels of absenteeism,” Sherry says. “It also provides a better quality of life experience that attracts and

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For more information please contact our hotline @ 780-496-5698

ProCura | 35th ANNIVERSARY | 2

Congratulations

ProCura Real Estate Services Ltd. on 35 years of innovation and crafting remarkable places to work, live, and grow!

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ProCura | 35th ANNIVERSARY | 3

Whether industry-driven, economy-driven or consumer and lifestyle-driven (or all three), various aspects of project development have changed dramatically, especially during the past six years since the 2008 downturn.

“Our focus is now residential and commercial rental properties,” George says, highlighting ProCura’s new business strategy. “We are out of the condo business. Condo buildings require heavy pre-sell. The developer has all the risks, and I’m not sure if condos, especially high-end, inner city condos, have priced themselves out of the condo buyer market.

He says that five or 10 years ago, the consumer could buy an Edmonton condo for $150,000.

“CMHC only required five per cent down and there was a lot of demand from a large pool Mayfair Village North – Jasper Avenue of purchasers. Today, the price is more like $300,000. CMHC wants at least 20 per cent retains long-term tenancies in our residential properties, and down and it requires substantial equity, Let’s face it. There just retention is the biggest advantage in our industry.” aren’t many potential condo buyers out there with $60,000 in The Schluessels knows that approved land is still the pivotal asthe bank.” pect of effective and valuable development. It’s also a ProCura It is the key reason why George and other industry insiders warn competitive-edge and ranks the company in a league of its own. that price points have pretty well ruined affordability, shrunk the “We have been on a steady course with our long-term strategy condo market, and are why developing condo buildings is no and approach about land acquisition and the development of longer a viable business. new properties,” George explains.

ProCura’s quality of development and innovative strategy are Some excellent examples of lifestyle-driven ProCura designs and proving that Edmonton’s present and future are residential and developments are: Edmonton’s award-winning, LEED®GOLD commercial rental properties. certified Intact Insurance building; the improved redesign of The Schluessels are candid, explaining that with all factors Mayfair Village North; and the urban community at Century taken into account, developers must build smaller units just Park, which will include the imminent Central Tower, Time to make the numbers work. The going rate for an outstandSquare and the Louvre. ing ProCura rental unit in Edmonton ranges between $1.60 to “ProCura has an extensive inventory of land. We have land for $2.20 per square foot. at least 5,000 suites, enough to last us 20 years,” George conIn addition to developing award-winning properties, ProCura is deditinues. “And we now also offer a full range of client services to cated to giving back. The community is at the core of everything complement our diverse asset base.”

Congratulations on your 35th Anniversary of service to Edmonton and area!

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says with pride and emotion. “We will gradually transition ProCura does. The company is a generous and long-term supporter of ProCura to employee ownership. It will allow us to stay on and local causes – from Big Brothers Big Sisters and the Heart and Stroke mentor.”

Foundation to the Art Gallery of Alberta and many others.

The high-energy married couple are good natured about their This year, the company launched the “Signs of Change Project,” hectic professional and personal schedules and laugh off clichés an ambitious initiative to engage the real estate industry across about the hazards of couples Canada in a model of CSR where working together. shared value is created. For ex“We are fortunate to have a ample, the large hoardings that unique soul mate relationship. surround ProCura’s project sites When it comes to work, we are are high-profile, high-value focused and passionate about difvenues for partners to advertise ferent aspects of the business,” their brands and services. Partsays Sherry. “And we enjoy being ners who invest in advertising busy and achieving, together.” at the sites are also investing The distinguished, 35-year track in the community, as ProCura record of innovation, long-term donates that ad revenue, as relationships with contractors well as provides $250,000 in and trades, and the loyal respect matching funds, to a range of of property residents are the ullocal, non-profit organizations. timate testaments to ProCura’s Aside from the emerging trends ProCura president and CEO George Schluessel and senior managing partner Sherry Schluessel. excellence. in the development industry, the Photo by Melissa Arthur “Our unconditional ProCura Schluessels are gung-ho about strategy and promise,” Sherry emphasizes with conviction and some exciting changes that are about to happen at ProCura. “We a radiant smile, “is the highest standards of quality, affordabilhave a truly exceptional staff. They are loyal, hardworking, creity, sustainability and the kind of lifestyle and workplaces that ative and dedicated. It’s time we stepped back a bit and give our people want and deserve.” staff a similar kind of opportunity that was given to us,” George

www.procura.ca

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ProCura | 35th ANNIVERSARY | 5

WWW.EDMONTONCHAMBER.COM

GROWING AND CELEBRATING SMALL BUSINESS

BY JAMES CUMMING, PRESIDENT AND CEO, EDMONTON CHAMBER OF COMMERCE

JAMES CUMMING

Y

ears ago, when I was just starting out in the business world, I had the great fortune to have the opportunity to buy a share of a small business in Edmonton. That experience gives me enormous appreciation for those who take the plunge into ownership and leadership of a small business. My memory of those days is one of long hours, hard work and intense focus on the customer while growing the base. The memories are full of great experiences that I would not change for a nanosecond.

At the time, I am sure the idea of market share didn’t register with me. We were just doing what we thought was the right thing for our clients, which ultimately drove tremendous growth. As we continued to grow it was clear there were not enough hours in the day and that we needed to recruit more talent to help with the load. Now we had a responsibility of ensuring that the company would grow and prosper so our new people would see the opportunities before them. Growth was not without its challenges – we needed to balance the opportunities in front of us against the resources we had to work with. Believe me, there was a quick education on working capital and cash flow! Our clients appreciated our efforts and provided us with opportunities to expand our base into the other cities in Western Canada.

Many small businesses often have little interest in growing into a larger business, and that is a choice that owners need to make. Growth is not for everyone, but for those up to the challenge here are a few of the things that I believe can help you along the way: • Create a business culture that has an intense focus on providing excellence to your customers.

• Hire great people that support your culture and want to grow.

• Never ignore the importance of working capital and strong financial systems; growth needs to be balanced.

• Look for opportunities to grow with your customer base.

• Look for educational opportunities that will grow your knowledge. Knowledge can come from other business leaders such as mentors, continued education or business groups that provide both. Examples could be Young Pres-

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The Edmonton business community is built on connection. You may not see a direct correlation to your business growth but I can assure you it is tangible. Tangible or not it is just the right thing to do. Your employees and your clients want to be part of something that is much more than just the product or service you sell. idents’ Organization, Young Entrepreneurs’ Organization, TEC, industry associations and of course, the Chambers of Commerce.

• Give back to your community as our community supports those who give.

This last piece is a key principle that has always guided my philosophy over the years. Our community is incredibly inviting and welcomes those with open arms who want to get involved and give back. The Edmonton business community is built on connection. You may not see a direct correlation to your business growth but I can assure you it is tangible. Tangible or not it is just the right thing to do.

Your employees and your clients want to be part of something that is much more than just the product or service you sell. My experience tells me that you get more than you give and your life will be so much richer in all of the ways that matter.

Small business is run by hard-working people who drive our economy. I salute them.

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A CHALLENGE TO THINK AND ACT MORE CREATIVELY

E-TOWN 2013 PARTICIPANTS SHARE THEIR IDEAS.

S

eptember is a big month for Edmonton Economic Development as we hold the second annual E-Town Festival September 11-12. You can register to attend at www.e-town.ca.

The success of last year’s event demonstrated the voracious appetite in Edmonton for idea sharing, networking and most importantly, creative thinking and action. If you are an entrepreneur, or you think innovatively, or you are a person just bursting with ideas, what you’ll find at ETown is the inspiration to go out and make your mark.

Henry Ford is famously quoted as saying, “If I had asked the people what they wanted, they would have said faster horses.” When it comes to the inventions that progress industry and civilization, we’re not talking about improving what already exists – we’re talking about imagining the future and bringing it into being. It takes work, brav-

ery and support of all kinds, but it all starts with a crazy idea. Maybe that idea is yours.

There’s nothing like experiencing it yourself, but come September 11 and 12, we will be welcoming an exciting lineup of speakers. Headliner Peter Diamandis, best-selling author of Abundance – The Future Is Better Than You Think and international pioneer in innovation, will bring us the exponential technologies causing disruptive innovation. With a personal motto like, “the best way to predict the future is to create it yourself,” we know he means business when it comes to jumping the curve.

Hayley Wickenheiser, four time gold medalist and one of the greatest female hockey players in the world, will share her advice on staying motivated when you’re already at the top. Estelle Métayer, president of Competia, will talk about competitive and strategic intelligence that www.businessinedmonton.com | Business In Edmonton Magazine | September 2014

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E-TOWN 2013 PARTICIPANTS ENJOYED FOOD TRUCK FARE, MUSIC, ENTERTAINMENT AND CONVERSATION WITH AN AMAZING VIEW, PERFECT FOR GETTING CREATIVE JUICES FLOWING.

helps businesses function smarter. Daryl Katz, founder and chairman of the Katz Group, will join Brad Ferguson, EEDC president and CEO for a conversation about taking risks, thinking big, and lessons learned throughout his journey building Rexall pharmacy into the success it is today. Raine Maida, singer-songwriter and founder of Our Lady Peace, will share the importance of creativity and using both sides of our brain in the modern age.

These speakers are just the tip of the iceberg. When so many like-minded, idea-generating, creative-thinking people from diverse backgrounds come together in one space, magic happens.

The E-Town Festival is a two-day event, but it sprung from the same spirit of creativity and innovation that we can all tap into at any time. Whether at work, home, or in our communities, the potential to make a difference in Edmonton is strong – stronger than anywhere else in Canada. Edmonton is the place to be if you are looking to build lives, businesses and careers.

As EEDC gears up for the fall, we are embracing the spirit of E-Town by challenging our own preconceptions and thinking bigger about our own capacity to make a difference. Maybe it’s the right time for you, your business and your employees to get inspired too.

It doesn’t have to be a grand gesture; all it takes is the

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gumption to get started. At EEDC, our marketing and communications department is learning to grow in creative confidence as we read and discuss our first book club selection: Creative Confidence by Tom Kelley and David Kelley, the founder of IDEO. And, at the first Make Something Monday hosted by Make Something Edmonton, a panel on social entrepreneurship asked a brave crowd of early risers to contemplate the question: what in the world needs fixing? Tackling a new theme at each gathering, Make Something Monday takes place the second Monday of each month. Registration is free at eventbrite.ca, and we’d love to see you there for a lively exchange of ideas!

Whatever you do, we hope that you will take us up on the challenge to think and act more creatively this fall.

We can’t wait to see where your ideas take you!

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