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‘Wow’ factor New convention centre hoping to turn heads

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September 26, 2016 Vol. 19, NO. 24

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Lazenby’s new gig Former Invest Ottawa boss ready for next challenge as Regional Group’s head of business development. > PAGE 6

Game changers Ex-Nortel employee says made-in-Ottawa technology could save video game publishers millions of dollars.

Business partners Pat McGowan and Tim Trinh say BlackBox, which launched in late July, has the potential to be a $100-million enterprise. PHOTO BY MARK HOLLERON

Creative thinking paying dividends

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Online platform for video producers aims to give artists ‘fair share’ of industry profits

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Ottawa team says virtual marketplace that shops content and collects royalties for members will help spread the wealth > PAGES 10-11

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‘Learning to be a CEO of a public company’ Veteran entrepreneur shifts mindset ahead of milestone for online education firm

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training, exam preparation as well as kindergarten to grade 12 courses.

Armed with these successes, Mr. Loiselle turned his attention to securing additional funding that would help his firm continue to grow.

However, he quickly ran into roadblocks.

“We’ve now shown that what we’re doing makes sense and is realistic,” he said. “But investors had a hard time understanding that what we are building is even possible. Educating an entire country is something that some people just roll their eyes at.”

completely out of his control.

While Mr. Loiselle said he understood the need to be transparent with prospective investors, he said he didn’t expect to have to list every single threat imaginable.

He expressed his doubts to Mr. Gerrior, who explained that defining all the risks would help protect the company.

The process changed Mr. Loiselle’s thinking as he realized his presentation to investors needed to be different than his sales pitch.

“I’m always optimistic. But this made me more careful about how I say things,” he said.

As betterU continued to prepare its IPO paperwork,

Perley-Robertson, Hill & McDougall continued to offer assistance. For example, the law firm connected the company with a chief financial officer who had experience in public markets and knew what regulators would be looking for in betterU’s application.

The biggest value, however, was PerleyRobertson, Hill & McDougall’s guidance that shifted Mr. Loiselle’s mindset.

“It’s made me think about how to be a CEO of a public company,” he said. “They elevated us from a privatethinking organization to a public-sector thinking organization.”

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Public offering preparation The challenges securing private investments prompted Mr. Loiselle to shift his focus to the possibility of raising capital on the public markets.

However, that presented

a fresh problem. Despite having started several firms and even writing a book on entrepreneurship, Mr. Loiselle had never been through an initial public offering.

He said he needed someone who understood the legal requirements, auditing exercises and how to protect the company’s interests.

To help him with the process, he met with Michael Gerrior, a partner at Ottawa law firm Perley-Robertson, Hill & McDougall, who helped betterU with its due diligence process and prepared the company for the scrutiny it would soon face.

“You have to be able to show investors that you have a real opportunity and real growth that is sustainable,” Mr. Gerrior said.

One of the first surprises Mr. Loiselle faced was identifying risks facing the firm - even those incredibly unlikely events that are

MONDAY, SEPTEMBER 26, 2016

rad Loiselle has a bold ambition: Educate an entire country.

The serial entrepreneur is the president and CEO of betterU, an Ottawaheadquartered education technology company that’s taking a simple approach to its ambitious goal.

By establishing a digital marketplace for online education, betterU connects global educators and content providers with students in India, a country of more than one billion residents who have traditionally had limited access to high-quality foreign education.

Getting the business off the ground required patience; Mr. Loiselle said it took a year to open a bank account and obtain the necessary Indian business licenses.

However, those efforts are now paying off. With 22 trips to India under Mr. Loiselle’s belt, betterU now offers 6,500 courses in technology

TOURISM New south-end event centre targets the inn crowd 15,000-square-foot facility near airport aims to be more intimate complement to larger EY Centre

BY DAVID SALI david@obj.ca

O

MONDAY, SEPTEMBER 26, 2016

ttawa’s newest convention centre hasn’t yet opened to the public, but it’s already landed enough high-profile bookings to keep a whole team of event planners busy.

The $20-million Infinity Convention Centre will be officially christened at a gala hosted by Ben Mulroney of CTV’s Your Morning on Oct. 13. Located on Gibford Drive, near the corner of Hunt Club Road and Uplands Drive north of the Ottawa International Airport, the 15,000-square-foot facility is billing itself as a more intimate complement to the much larger EY Centre a few blocks to the south.

While the EY Centre tends to draw crowds well into the thousands for shows such as Ottawa Comiccon and the Wine and Food Festival, the Infinity Centre has a capacity of just 1,200. Designed by local architect Robert Woodman with interior finishings by renowned firm Royal Design, the building’s main ballroom features elegant touches such as marble flooring and a crystal chandelier.

“We definitely wanted the ‘wow’ factor,” says Anu Sohal, who is part of the Sohal family ownership group along with her husband T.J., her brother-in-law Sonny and his wife Kiran.

“The main goal (was) I wanted anyone

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who walked in the front doors to be taken aback and, right off the hop, say, ‘You know what? I have to have my event here.’

From the feedback we’ve been getting, I think we’ve achieved it.”

In partnership with local entrepreneur Anand Aggarwal, the Sohal family also owns three hotels located close to the Infinity Centre – the nearby Hampton Inn and Holiday Inn Express & Suites, both on Gibford Drive, and the Residence Inn Marriott on Walkley Road – with a total of about 300 rooms. They are also slated to open a 100-unit Homewood Suites by Hilton hotel a half-block from the Infinity Centre on Paul Anka Drive in early 2018.

SENATORS CONNECTION When the first of those properties, the Holiday Inn, opened in 2008, Ms. Sohal says she was constantly asked what rates were like for wedding facilities near the hotel. To her dismay, she had a hard time finding suitable venues in the neighbourhood.

“I thought there was a real need for something like this,” she says.

Judging by advance bookings, it appears she was right. The first wedding reception at the facility is scheduled for Oct. 1, nearly two weeks before its official opening. Next May, the building will host 275 guests to celebrate the marriage of Dillon Leeder, the son of Ottawa Senators president Cyril Leeder, and Dillon’s fiancée Courtney Norris.

Anu and T.J. Sohal show off the new Infinity Convention Centre. PHOTO BY MARK HOLLERON

“We definitely wanted the ‘wow’ factor. The main goal (was) I wanted anyone who walked in the front doors to be taken aback and, right off the hop, say, ‘You know what?

I have to have my event here.’”

– ANU SOHAL, MEMBER OF OWNERSHIP GROUP AT NEW INFINITY CONFERENCE CENTRE

The Senators connection is fitting – the organization recently signed a multi-year deal that will make Infinity the official convention centre of the NHL club.

“We’re very excited about that,” Ms. Sohal says.

And to show there is no budding rivalry between the upstart new facility and its more-established neighbour to the south, she points out that the VIP wine- and food-tasting portion of the upcoming Ottawa Wine and Food Festival will also take place at Infinity while the main event happens down the road at the EY Centre.

There is plenty of room in the city’s south end for both facilities, Ms. Sohal says.

“I think we’ll be great partners as opposed to duelling competitors.

We’re very different as far as venues are concerned. The feel of (the Infinity Centre) is different.”

State-of-the-art amenities such as fully digital LED lighting that can display up to 256 colours, a custom sound system and seven 200-inch high-definition screens with digital projectors, are bound to delight event-goers’ eyes and ears, Ms. Sohal says.

If executive chef Jason Peters has his way, their stomachs will be just as well taken care of.

Mr. Peters, who graduated from Le Cordon Bleu Paris before embarking on a 15-year career at hotels and convention facilities around the world, heads up a

high-capacity kitchen that can serve 2,000 gourmet meals in one sitting. Separate plating areas allow the kitchen to prepare meals for up to three different events at a time.

Mr. Peters and his team will create that cuisine using ingredients from a host of local suppliers, including sustainable seafood from Whalesbone and fresh beef from Anderson Farms in Ashton.

Ms. Sohal says the culinary staff want dining at the Infinity Centre to be a true “farm-to-table” experience.

“That’s Jason’s passion,” she says. “He was looking for a place where he could actually make it happen, so that’s very exciting.”

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property, parking shouldn’t be an issue either, Ms. Sohal adds.

Analyst Barry Nabatian of Ottawa market research firm Shore-Tanner & Associates says it’s not surprising that another events centre has sprung up near the airport.

The EY Centre has been busier than even its owners expected since it opened, he says, and with annual passenger volumes at the airport nearing the fivemillion mark, there should be no shortage of takers for events at both facilities.

“The convention centre business is growing,” Mr. Nabatian says, noting his firm is currently conducting a study for a group looking at building another hotel and convention centre in the National Capital Region. “The demand is there.”

REAL ESTATE Bruce is back: Lazenby lands at Regional Group Former Invest Ottawa CEO says new role as real estate company’s head of business development is ‘best place for me to make a difference’

BY DAVID SALI david@obj.ca

W

hen he stepped down as head of the city’s main economic development agency in late June, Bruce Lazenby vowed he wouldn’t be “retired” for long.

True to his word, Mr. Lazenby is back.

The former CEO of Invest Ottawa and tech firm FreeBalance embarked on the next – and perhaps final – stage of his public career in late September as the new head of business development at the Regional Group.

For Mr. Lazenby, the opportunity to help one of the city’s largest real estate management companies expand its portfolio was too good to pass up. Despite

managing more than 1,100 condo and apartment units and nearly five million square feet of commercial, industrial and retail space, the company feels it has been “flying under the radar” since it was founded 55 years ago, he told OBJ. “They want to change that,” Mr. Lazenby said. “They want to start doing more and bigger deals, and they think I can help with that.”

In his five years at the helm of Invest Ottawa, Mr. Lazenby – an economics and commerce graduate of Royal Military College who will only say he is “over 50” – relished a role he referred to as the capital’s “VP of sales.”

Before leading Invest Ottawa, Mr. Lazenby spent years as an executive in the city’s technology sector. He plans to use his experience in the worlds of tech

and marketing to full advantage in his new position.

Led by president and CEO Steve Gordon, Regional is hoping to make greater inroads with technology companies – a sector Mr. Lazenby feels many landlords in Ottawa have overlooked.

Tech firms have unique requirements for everything from internet bandwidth capacity to how offices are configured, he said, and the Regional Group wants to work with those companies to create “better buildings” that are more suited to their needs.

“What we want to do is start a dialogue with tech teams,” Mr. Lazenby said.

“My plan is to try and bring that sector together in the hope that we can help them grow.”

Regional Group’s Bruce Lazenby. FILE PHOTO

He said he first met Mr. Gordon and his executive team about four years ago and was immediately struck by how quickly they grasped the importance of catering to the tech sector. Mr. Lazenby said he had a number of other offers on the table – including C-suite jobs at firms in Ottawa and out of town – but Regional seemed like the perfect landing spot for what’s likely his “last big gig.”

“This is probably the best place for me to make a difference,” he said.

Mr. Lazenby said he is also serving on several boards and is acting as an adviser to Willis College.

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Gary Donell, Tax Consultant, Dan Scott, Director of Tax Services, Tax Partner (centre) and Dave Cone, Tax Consultant.

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Gary Donell brings more than a decade of experience as a CRA rulings officer and national tax trainer, teaching and writing technical training material for thousands of CRA auditors. “My experience gives me a valuable advantage in dealings with the CRA to obtain a fair, reasonable and appropriate result.”

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The Syntronic team has discovered that it can support many potential customers in high-tech and other markets from Kanata North. Photo credit : Mark Holleron

5 multinationals with local operations speak out Kanata North has the right stuff to master global markets Why do multinational technology companies come to Kanata North?

We have fantastic people who are highly creative, innovative and expert at solving hard problems – that’s a given. But more than this, we have a rich and valuable technology ecosystem with a strong pedigree. This continues to support the industries that put the city on the tech map and foster the up-andcomers that are making waves in new markets.

We polled several of the big names from abroad that call Kanata North home for their thoughts on the matter:

Ciena “Kanata North is home to Ciena’s largest employee base, with roughly 30 per cent of our global employees, including half of our R&D team. This operation is focused on maintaining Ciena’s lead in key packet-optical technologies like coherent processing.

Kanata North is a thriving technology hub with like-minded companies, a vibrant higher-education community that is open to active technology partnerships, and highly-skilled workers, with a concentration of advanced engineering talent.

Additionally, there are forwardthinking economic development policies and public-private collaboration at the local, provincial and federal levels. The area offers a business climate that supports investment, growth and opportunity consistent with Ciena’s long-term strategy.”

— James Frodsham, Chief Strategy Officer

Huawei “Huawei’s Canada Research Centre has called Kanata North home since opening our first research office in 2009. Over the past seven years, we have expanded our operations to include almost 300 engineers and researchers. Simply put, there are few locations in North America that offer a similar ecosystem of leadership in advanced communications research. Our focus on chipset design and 5G technologies reflects the diverse

talent that calls Ottawa and Kanata North home.”

— Scott Bradley, VP Corporate Affairs, Huawei Canada Syntronic “Syntronic, an engineering design house from Sweden, helps customers in a variety of industries such as defence, telecom, med-tech, industrial and transportation. We discovered that from Kanata North we could support many potential customers in high-tech and other markets.

Many customers are within walking distance. When your customers realize they are being helped by a high-performance company next door, you really do have the feeling that we are neighbours helping neighbours for a true partnership. Kanata North has proven to be a vibrant hub of talented and creative people working in many great companies full of potential for growth. It’s an area that attracts smart people, that’s close to great universities and provides a playground for innovation.”

— Hans Molin, President, Syntronic R&D Canada Learn more about why Kanata North is fertile ground in which to grow successful companies and find great talent, at www.serioustechliveshere.com

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Ericsson “Ericsson is a global leader in ICT solutions and is one of the top investors in R&D in Canada. The

Kanata North site is a global R&D centre for Ericsson’s radio portfolio.

As such, when it came time to move from our original location, Ericsson chose Kanata North for its state-ofthe-art facility. The key factors in this decision included the proximity to suppliers, the vibrant technology ecosystem partners that exist here and the convenience for our approximately 1,000 highly skilled employees. Innovation is vital to our continued success. Ericsson draws on the community of brilliant and innovative talent attracted to Kanata North because of its reputation for opportunity and growth in the high tech sector.”

— Jeffrey Stanier, Head of PDU 4G & 5G Baseband Ottawa, Ottawa Site Leader

MONDAY, SEPTEMBER 26, 2016

Amazon “Amazon is an innovation company.

We are on a quest to constantly refine the experience we offer our customers by pushing the boundaries of technologies… To be successful, we surround ourselves with exceptional talents who look for new ideas from everywhere and thrive on innovation and invention. The Kanata North high tech community has a great history of leading this innovation – we want to lever this experience to create disrupting technologies. We are looking for talented software engineers who are ready to go on a path no one has ever been before and create the next generation of the

Alexa (web analytics) platform.”

— Francois Boisvert, Manager, Software Development, Alexa

COMMENTARY Great River Media 250 City Centre Ave., Suite 500 Ottawa, Ontario, K1R 6K7 obj.ca TELEPHONE Phone: 613-238-1818 Sales Fax: 613-248-4564 News Fax: No faxes, email editor@obj.ca

I see two possible future scenarios: either the Canadian airline industry becomes a lot more competitive in the Ottawa market.

Or Ottawans flock to Ogdensburg for flights to Florida, prompting more U.S. carriers to service this remote corner of New York state

PUBLISHER Michael Curran, 238-1818 ext. 228 publisher@obj.ca CHIEF MARKETING OFFICER Terry Tyo, 238-1818 ext. 268 terry@greatriver.ca EDITOR, PRINT CONTENT David Sali, 238-1818 ext. 269 david@greatriver.ca EDITOR, ONLINE CONTENT Peter Kovessy, 238-1818 ext. 251 pkovessy@obj.ca COPY EDITOR Samantha Paquin ADVERTISING SALES General Inquiries, 238-1818 ext. 286 sales@obj.ca Wendy Baily, 238-1818 ext. 244 wbaily@obj.ca Carlo Lombard, 238-1818 ext. 230 carlo@obj.ca SPECIAL PROJECTS Nikki DesLauriers, 238-1818 ext. 240 nikki@obj.ca MARKETING & SALES CO-ORDINATOR Cristha Sinden, 238-1818 ext. 222 cristha@greatriver.ca CREATIVE DIRECTOR Tanya Connolly-Holmes, 238-1818 ext. 253 creative@obj.ca ART DEPARTMENT Regan VanDusen, 238-1818 ext. 254 regan@greatriver.ca Celine Paquette, 238-1818 ext. 252 celine@greatriver.ca FINANCE Jackie Whalen, 238-1818 ext. 250 jackie@greatriver.ca

Discount N.Y. flights just the ticket for snowbirds MONDAY, SEPTEMBER 26, 2016

Ogdensburg airport slashes prices for travel to Florida in bid to capture greater share of neighbouring Ottawa market

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igh taxes and lack of competition make air travel for Canadians far more expensive than it should be.

Now, at last, people in the Ottawa area are about to get a huge break. Starting in early October, the cost of air travel to Florida will be slashed by more than half in some cases.

That is, for people in the Ottawa region who hop across the border to catch a flight from Ogdensburg in New York state. Ogdensburg is about a onehour drive from Ottawa, just across the bridge over the St. Lawrence River at Prescott.

With the Canadian dollar languishing way below the value of the American

greenback, I would not have believed it possible for Canadians to enjoy such savings.

Allegiant Air, a leading U.S. discount airline, will initially offer four non-stop flights a week from Ogdensburg to Florida. There will be two weekly flights each to Fort Lauderdale and Orlando, using a 177-seat Airbus A320 jetliner.

The cost of these flights is eyepopping. To start with, at least, an adult round-trip fare from Ogdensburg to Fort Lauderdale or Orlando will be the equivalent of about $153 in Canadian funds, all taxes and fees included.

You have to be extremely careful when comparing airfares. It’s not just the

exchange rate on the Canadian dollar that must be factored in. There are all the taxes and surcharges levied by federal and lower governments, plus any hidden fees imposed by the airlines themselves.

I compared bottom-line fares for travel to Fort Lauderdale in midNovember, looking at what Air Canada would charge from Ottawa and what Allegiant Air would charge from Ogdensburg.

To get the lowest possible fare on Air Canada required a connection in Toronto. To get a quote from Allegiant Air, I had to extend my proposed oneweek trip by a day, since the U.S. carrier operates only twice a week between

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LETTERS TO THE EDITOR We welcome opinions about any material published in the Ottawa Business Journal or issues of interest to local businesspeople. Only letters with the writer’s full name, address and telephone number will be considered for publication. Addresses and phone numbers will not be published, but they might be used to verify authenticity.

Letters can be e-mailed to editor@obj.ca.

Ottawa Business Journal is published by

CHIEF EXECUTIVE OFFICER Mark Sutcliffe PRESIDENT Michael Curran All content of Ottawa Business Journal is copyright 2016.

Great River Media Inc. and may not be reproduced in any form without permission of the publisher. Publisher’s Liability for error: The Publisher shall not be liable for slight changes or typographical errors that do not lessen the value of an advertisement. The publisher’s liability for other errors or omissions in connection with any advertisement is strictly limited to publication of the advertisement in any subsequent issue or the refund of monies paid for the advertisement.

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Real Estate Today

Ogdensburg and Fort Lauderdale.

First, the bottom lines. Allegiant Air’s total fare was $114 in U.S. funds.

Air Canada’s total fare was $387.49 in Canadian funds.

When I did my comparison, it required about $1.34 in Canadian funds to buy an American dollar. If you think that’s high, remember the money-changer always charges a fee in addition to the actual exchange rate.

By multiplying Allegiant’s posted fare of $114 U.S by 1.34, I arrive at a cost in Canadian dollars of about $153.

On the face of it, I could save more than $200 in Canadian funds by making the trip to Ogdensburg to catch a flight to Fort Lauderdale or Orlando. But there you have to factor in the extra time it takes to get there and the fuel costs of that one-hour drive. There are two-way bridge tolls totalling about $7. And there is parking at Ogdensburg airport, which used to be free but which now costs $8 a day in U.S. funds.

Parking fees at the Ottawa airport are similar to those in Ogdensburg, but maybe you can get a relative or friend to drive you to and from the airport.

Why is air travel in the U.S. so much cheaper than in Canada? It’s not as if Americans don’t pay fees and taxes for air travel. More than half of Allegiant Air’s

fare of $114 U.S. is “taxes, carrier charges and government fees.” That leaves $55.62 for the airline. But presumably some or all of those “carrier charges” also go to the airline’s bottom line.

It’s also unclear just how much of Air Canada’s fare goes to the airline and how much goes to taxes, airport fees, et cetera. The airline breaks down the Ottawa-Fort Lauderdale ticket price like this: air transportation charges are $246; taxes, fees and other charges are $141.49.

Tellingly, Allegiant Air now refers to the Ogdensburg airport as the Ogdensburg and Ottawa airport.

The municipality of Ogdensburg is aggressively promoting its new Florida jet service to Ottawans.

I see two possible future scenarios: either the Canadian airline industry becomes a lot more competitive in the Ottawa market. Or Ottawans flock to Ogdensburg for flights to Florida, prompting more U.S. carriers to service this remote corner of New York state.

Remote, that is, unless you live in or near Ottawa.

Michael Prentice is OBJ’s columnist on retail and consumer issues. He can be contacted at news@obj.ca.

L to R: Danny Sabourin, Josée Piette

We are pleased to recognize Danny Sabourin and Josée Piette who passed the 2016 Common Final Examination. This is a significant step towards becoming a Chartered Professional Accountant in Canada. We salute you for your hard work and determination, and look forward to your further achievements as valuable members of our team.

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e’ve all heard of people who stay in an unhappy marriage for the sake of the kids. But what about staying married for the sake of the house?

It may sound crazy, but many of us have deep rooted attachments to our homes.

The latest Canadian study shows that 40 per cent of first marriages end in divorce. That’s a lot of people facing the same tough decisions about what to do with the “matrimonial home”. Some can afford to stay in the same dwelling, but sadly, many cannot.

Should you find yourself in one of these unfortunate, yet ever so common, situations, here is what you need to know. In Ontario, the Family Law Act states that the full value of the matrimonial home should be divided equally between you and your ex. It doesn’t matter whether one of you bought the home prior to your marriage, whether it was left to one of you in a will, or whether only one name is on the title. The only exception to this 50/50 split occur when a pre-nuptial agreement exists, or when the court finds unusual circumstances that make such a split unfair.

Remember that talking to a professional is the best decision you can make for yourself and your family.

Selling the home to a third party is often the best scenario from both a financial and an emotional perspective. By the same token, it can be difficult. A good real estate professional will guide you through this process with minimal discomfort and help serve as an objective voice.

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ARTS & ENTERTAINMENT

Pat McGowan (top) and Tim Trinh launched their online marketing platform, BlackBox, in July and began seeing revenues three weeks later, much sooner than expected. PHOTO BY MARK HOLLERON

Perfecting the art of the deal Ottawa entrepreneur Pat McGowan says artists aren’t earning a fair share of profits from their work – but he says his company has come up with an innovative solution to spread the wealth

BY DAVID SALI

MONDAY, SEPTEMBER 26, 2016

david@obj.ca

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at McGowan believes the term “sharing economy” is a misnomer, and he’s not shy about saying so.

“There’s a lot of talk about the sharing economy out there, and I think that some of that rings a little hollow,” says the Ottawa entrepreneur.

“What we see is these large companies creating massive amounts of wealth at the apex of their corporate existence … but the workers there are not getting pure advantage of that situation. I don’t see that as a sharing economy at all.”

Mr. McGowan says musicians, filmmakers, cinematographers and other labourers in creative industries often

don’t have the time or expertise to fight for their fair share of profits from their work. Many of them receive no royalties at all, he explains, earning a salary while watching people further up the production chain get rich.

“People are getting paid less and less, and you’re at the mercy of some pretty big market forces,” he says.

About 18 months ago, with his film production company inMotion in a state of upheaval, Mr. McGowan started looking at other ways to make money.

He began selling his videos to platforms such as Shutterstock, earning royalties each time a clip was used.

“I’ve managed to take my intellectual property, which is mostly wildlife cinematography, and convert that into a commodity and do very well financially,” he says. “So I said, ‘Well, if I can do that,

other people can do it.’ I looked at the whole thing, and I said, ‘We need a paradigm shift.’”

The result is Mr. McGowan’s latest enterprise, BlackBox. Launched in late July, the online platform acts as a virtual marketplace where video producers can sell their work, connect with potential business partners and collaborate on projects.

Using software designed by cofounder Tim Trinh, BlackBox shops members’ work to a multitude of media platforms, such as Netflix, Shutterstock and YouTube. It negotiates and collects royalties on any sales and deposits the funds into members’ accounts.

“This is an egalitarian business model that any creator anywhere on the planet can take advantage of,” says Mr. McGowan, whose own artistic career

included a stint as keyboardist in a popular Ottawa rock band called the Crayons in the 1980s. “It offers the same earning opportunities to every single member, no matter where they live.”

He says the system ensures that all members’ intellectual property rights are protected and that everyone who signs on to a rights agreement receives a proportionate amount of revenues.

“Traditionally, rights holders tend to aggregate at the top (of the pyramid),” Mr. McGowan says. “Not here. There is no hierarchy. What I aim to create is a company where people are actually able to get their fair share of the work that they do from a value-laden market.”

Membership in BlackBox is free, and Mr. McGowan and his partners take a 15 per cent cut from each transaction.

The platform already has members from

“I’ve managed to take my intellectual property, which is mostly wildlife cinematography, and convert that into a commodity and do very well financially.

So I said, ‘Well, if I can do that, other people can do it.’”

– CINEMATOGRAPHER PAT McGOWAN, FOUNDER OF A NEW ONLINE MARKETING PLATFORM CALLED BLACKBOX

Asia, Europe and the United States and began generating revenue only three weeks after launch, he says, far sooner than he had projected.

“When I saw those first sales come in, my wife will tell you, I was doing backflips,” he says with a grin. “Not a lot of money, but it worked.”

For now, the system markets only video content, but Mr. McGowan says he plans to add music to the mix in the future. He predicts BlackBox will hit 100,000 members within five years and believes his company’s share of the platform’s total sales could reach $100 million by then.

Several “noteworthy” local investors have taken notice, he adds, and he scoffs at doubters who think the concept sounds too utopian for the real world.

“They’re going to think I’m a commie,” he says flatly. “I’m not. I’m a businessman.”

With an estimated $10 billion in artistic content available today on the Internet, he says, the pie is big enough to feed everyone.

11 OBJ.CA

‘DIFFICULT PROBLEM’ “Young people today are more familiar with the concept of trying to be more entrepreneurial, trying to be more risk-taking, doing things on the side, crowdsource funding, et cetera. So that entrepreneurial mindset of taking a risk and trying to get something on the upside, it’s there.”

But finding buyers to generate that upside will be easier said than done, Mr. Edwards contends.

“You can be on iTunes, as millions of games are, (but) have no visibility and no revenue,” he says. “Merely accessing a distribution channel is not in and of itself a predictor of sales. That really is a very, very important and difficult problem to solve. It’s very difficult to get a broadcaster to pick up your show. It’s not difficult to get your show or your film on YouTube, but it’s very difficult to find an audience for it.”

Mr. McGowan remains undaunted.

Although the platform is still in its infancy, he says he can see a day when even full-length feature films will be produced by crews that came together through BlackBox. “Do you want to do a $200-million film this way?” he asks rhetorically. “I wouldn’t recommend it in 2016, but we’ll be able to do it in 2021. We can now become collaborators and co-owners of the outcome. That’s a joyous thing.”

MONDAY, SEPTEMBER 26, 2016

‘EVERYBODY SHARES’ “Everybody shares – and what’s wrong with that?” Mr. McGowan says. “An egalitarian business model is better than a usery, capitalistic business model in the digital world. And it hasn’t been done yet.”

It’s a great idea in theory, says Ottawa entertainment lawyer Mark Edwards. But he thinks many content creators will be reluctant to simply hand over their work to a third-party agent with no guarantee of any return.

“How many people are willing to spend two months working without pay?” he says. “Most people would only follow that kind of model in their spare time. It’s never going to be their day job because they need a (pay)cheque at the end of the week. Most of the product in the world is and will continue to be produced by individuals who conceive of the thing to be built, who put together the financing … and who develop a market and sell it. Everybody else will contribute to it on the basis of a payment for services rendered. That’s how the world works.”

Mr. McGowan says that once people grasp the concept, they quickly see its potential.

“It takes a little bit for them to understand that this is a good idea,” he concedes. “We’re talking about a longerterm return.”

James Bowen, a professor at the University of Ottawa’s Telfer School of Management, says BlackBox’s biggest challenge will be in convincing potential members it has the marketing muscle to effectively promote their work. If it manages to do that, he thinks it stands a good chance of succeeding.

“If (Mr. McGowan) has the contacts and he can help increase the likelihood of the upside, sure, I’d be interested in it if I was a musician or artist or whatever,” he says.

TECHNOLOGY Making a play for greatness Ottawa programmers working on peer-to-peer system that could save publishers of multiplayer video games millions of dollars, company says

BY JACOB SEREBRIN Special to OBJ

O

ttawa’s long history of networking companies might not seem to have much to do with video games, but that history – and the talent around it – is what led one Vancouverbased game developer to open an office in Ottawa.

Akimbo Creations hired its first local employee in January. The company, which is less than two years old, has since expanded its local presence and now has five employees in the capital who are working out of an office at Invest Ottawa headquarters.

“The Ottawa area is really the

technology area,” says Akimbo CEO Behrouz Poustchi. “The Vancouver area is really the game area.”

Akimbo Creation’s Ottawa team will work on a new peer-to-peer technology that Mr. Poustchi says could save the publishers of large multiplayer games millions of dollars.

He plans to use the technology in the game his company is currently developing as well as license it to other game developers.

For Mr. Poustchi, it’s a way of hedging his bets in a fickle market.

“Creating a game is a very risky business, so I needed something a little bit more than just a game that may or may not succeed,” he says. “We obviously think it’s going to succeed, but I’ve seen a

Akimbo Creations CEO Behrouz Poustchi. PHOTO COURTESY AKIMBO CREATIONS

lot of games that don’t succeed as well.”

Mr. Poustchi says it makes sense to locate his technology team in Ottawa.

“It’s a networking project that we’re doing (and) all the good networking people should be in Ottawa,” he says.

Mr. Poustchi should know. He spent a long time in the capital’s networking industry while at Nortel in the late ’80s and early ’90s. In the early 2000s, he was the chief technology officer

of Ottawa-based Nimcat Networks, which developed peer-to-peer phone technology.

That experience is what led to the technology that Mr. Poustchi’s company is currently developing.

Currently, most multiplayer games use a client-server model, in which all the data about what players are doing has to go through central servers.

That means gaming companies

and present:

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“Creating a game is a very risky business, so I needed something a little bit more than just a game that may or may not succeed.”

– BEHROUZ POUSTCHI, CEO OF VANCOUVER-BASED VIDEO GAME DEVELOPER AKIMBO CREATIONS

require massive numbers of computers and have to pay for large amounts of bandwidth because everything a player does or sees in the game has to be sent back and forth from those central servers.

Mr. Poustchi’s technology is based on a peer-to-peer system in which the processing done by the central server is decentralized and handled by players’ computers.

His technology also has what he describes as “fault tolerance,” with multiple machines doing the same

calculations to catch dishonest players.

“If someone’s cheating, we can quickly detect it in real time,” he says.

That’s particularly important, he says, because many modern games are dependant on micro-transactions.

Cheating could upset a game’s economy or turn players off before they start spending money.

“We are talking to some developers, so the interest seems to be there,” he says.

But Mr. Poustchi’s company isn’t just developing networking technology for games – it’s also making its own games.

On Sept. 12, it launched a Kickstarter campaign to fund continued development of its first game, ARC Continuum.

The company has received some funding for development from the Canadian Media Fund and has already done significant work on the game.

However, Mr. Poustchi says the money raised through the Kickstarter campaign will allow him release a more polished product and gather feedback from potential fans.

The campaign’s official target is $100,000, but Mr. Poustchi says he hopes to exceed that sum. He says his bigger goal is to develop a game that looks as good and plays as well as any big-name title.

Fusebill, the subscription management platform that focuses on small- to medium-sized enterprises (SMEs) ready to shift to an agile billing solution that includes monetizing the Internet of Things (IoT), today announced that Rob Sutherland has joined the company in the role of Chief Revenue Officer.

Sutherland joins Fusebill from Halogen Software, where he served most recently as part of the Senior Leadership Team.

“Rob’s background within high-profile, growth oriented technology companies will add a significant strength to our management team as we continue on our hyper-growth curve. He will play a major role in Fusebill’s future success.” Said Tyler Eyamie, CEO of Fusebill.

“I am thrilled to be joining such an exciting, high-growth company and being part of taking it to the next level. Fusebill is uniquely positioned, with its industry-leading technology and services, to dominate the midenterprise on a global scale.”

As Fusebill’s CRO, Sutherland will be responsible for scaling the revenue side of the business for the company’s current and future growth forecasts.

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Building our team Carol Devenny, Office Managing Partner, is delighted to welcome our newest Partner Jonathan Dervin and returning Partner and Tax Leader, Kent Davison to our Private Company Services practice.

Contact: Carol, Jonathan or Kent PwC National Capital Region 613 237 3702

Private Company Services Advice as unique as your business

MONDAY, SEPTEMBER 26, 2016

Left to right Carol Devenny (Managing Partner, National Capital Region) Jonathan Dervin (Partner, Private Company Services) Kent Davison (Partner and Tax Leader, Private Company Services)

13 OBJ.CA

© 2016 PricewaterhouseCoopers LLP, an Ontario limited liability partnership. All rights reserved. P229728.09.2016

RESTAURANTS Rising costs turn up heat on Market eateries Hydro hikes, parking woes making life tough for high-end dining establishments in popular tourist zone, observers say

BY DAVID SALI david@obj.ca

N

ews that another acclaimed ByWard Market restaurant is closing its doors is a further indication of a shift in the city’s culinary landscape, industry observers say.

The owners of Murray Street announced in late August that the eightyear-old business’s last night will be New Year’s Eve. They blamed the decision partly on a challenging climate for restaurants in the popular tourist district.

Retail analyst Barry Nabatian of market research firm Shore-Tanner & Associates said a number of factors have contributed to the demise of

several high-end restaurants in the neighbourhood. Hydro rates have risen far faster than the rate of inflation over the past several years, he noted, and taxes and insurance costs have also been consistently going up.

“These have all been working against small businesses in general and restaurants in particular,” he said.

Restaurant owners have been forced to pass on some of those increased costs to customers, Mr. Nabatian said.

But even then, most establishments are reluctant to raise prices enough to completely make up the difference for fear of pricing themselves out of the market.

“They’re really caught between a rock and a hard place,” he said.

Even still, customers are feeling the pinch and are starting to cut back on eating out, Mr. Nabatian explained.

“People are finding (the price increases) are too much,” he said.

Mr. Nabatian and others say the ByWard Market in particular is going through a bit of a rough patch right now.

Murray Street’s owners said a lack of parking and a growing perception that the Market is becoming more of a bar destination than a restaurant haven are hurting business.

Ross Tavel, a real estate agent at Royal LePage Performance Realty, agreed.

“I feel like it’s turning from what used to be a place where you would want to sort of go as a couple or a family into a nightlife destination,” said Mr. Tavel,

Ross Tavel of Royal LePage. PHOTO PROVIDED

who brokered the sale of Murray Street’s building at 110 Murray St. to another group connected to the food industry.

“And the traffic is awful. I think that’s been driving business away.”

Others who keep a close eye on trends in the Market say they are seeing a shift in the type of dining establishments in the neighbourhood. A number of other well-regarded ByWard Market

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Turning rooftops into renewable power generators City, Energy Ottawa team on solar power program

MONDAY, SEPTEMBER 26, 2016

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enerating new revenue for the City of Ottawa from space that’s otherwise unused, while at the same time making a positive difference for the environment with renewable energy. This is what Energy Ottawa, an affiliate of Hydro Ottawa, and the City are doing, by turning eight municipal rooftops into generating stations that feed the local power grid.

Energy Ottawa is installing solar panels on the rooftops of these buildings through a 20-year lease from the City.

The City will receive about $85,000 a year in revenue, or $1.7 million in total.

This model has been proven through several iterations of Ontario’s Feed-in-Tariff

program, managed by the Independent Electricity System Operator. Successful pilots are already operating on the rooftops of City Hall and the OC Transpo garage at 875 Belfast Rd. The first project to come online is the Jim Durrell Recreation Centre. It features a 250 kW solar photovoltaic system with an estimated output of 328,465 kWh/year – equivalent to removing more than 30 homes from the grid annually.

“We understand how important green energy solutions are to our customers, our city and our province,” said Greg Clarke, Chief Electricity Generation Officer at Energy Ottawa. “This helps us further diversify our green

generation portfolio and strengthen Energy Ottawa’s reputation as Ontario’s largest municipally owned producer of green power.”

These projects have a combined capacity of roughly 2.3 megawatts and an estimated generation of three milllion kWh/year, which is enough to power more than 300 homes in Ottawa.

“Creating new sources of renewable energy in our own backyard reduces how much electricity Energy Ottawa must draw from fossil fuel sources to meet the ever-changing needs of residents and businesses,” said Clarke. “We will trim Ontario’s greenhouse gas emissions by 41,382 metric tonnes over the 20-year term.”

Which buildings will be getting solar panels?

Ray Friel Complex, 1585 Tenth Line Rd. Jim Durrell Recreation Complex, 1265 Walkley Rd. Kanata Recreation Complex, 100 Charlie Rogers Pl. Walter Baker Sports Centre, 100 Malvern Dr. François Dupuis Recreation Centre, 2263 Portobello Blvd.

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“I feel like it’s turning from what used to be a place where you would want to sort of go as a couple or a family into a nightlife destination. And the traffic is awful. I think that’s been driving business away.”

– REAL ESTATE AGENT ROSS TAVEL, WHO BROKERED THE SALE OF THE MURRAY STREET RESTAURANT BUILDING

restaurants have said farewell in the past couple of years, including Domus Cafe and the Empire Restaurant, formerly the Empire Grill.

“I don’t think the restaurant industry is by any means dying in the Market, but it is changing,” said Bruce Wolfgram, a vice-president at Primecorp Commercial Realty who represents a number of commercial tenants in the area.

“We’re seeing fewer and fewer highend restaurants there, but there appears to be beginning to be a good abundance of mid-priced restaurants.”

Mr. Nabatian said the ByWard Market,

like any other entertainment district, must adapt to changing demographics and evolving tastes if it hopes to stay relevant.

“It just has lost its dynamism and excitement,” he said. “It hasn’t been changing with the times.”

Still, Mr. Tavel said he’ll be sorry to see Murray Street and its celebrated cuisine go.

“There’s no other restaurant that served all the Canadian meat and game that these guys did,” he said. “They had a niche, and they did it with style and quality from top to bottom.”

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FINANCE Kanata consulting firm to merge with national accounting giant MNP A Hundred Answers says deal will allow fast-growing company to expand national presence

BY DAVID SALI david@obj.ca

A

major Ottawa player in the management consulting industry has announced it is merging with one of the country’s largest accounting firms in an effort to expand its national presence.

A Hundred Answers, a Kanata firm that provides services ranging from human resources management advice to software and website support, said it is combining its operations with Calgarybased MNP LLP as of Oct. 1.

Under the deal, A Hundred Answer’s owners will acquire a stake in MNP, with CEO Sean Murphy and other top executives becoming partners in the combined firm. All of the Kanata company’s more than 50 employees will

be absorbed into MNP and the Hundred Answers name will be gradually phased out over the next few years.

Mr. Murphy said his company felt it had grown as much as it could organically and needed to combine forces with a bigger player in order to expand its reach into other Canadian markets. MNP has 3,500 employees in more than 75 offices from coast to coast.

“We’ve been in Ottawa for the last number of years, and I think we looked at this merger as a way for us to go national in a really big way,” Mr. Murphy said. “MNP is a great partner for us to do that.”

MNP executive vice-president for Ontario and Quebec Jeremy Cole said the merger helps further the company’s long-term strategy of offering a wider range of services to compete with multinational professional services firms

A Hundred Answers’ Sean Murphy. FILE PHOTO

such as Accenture and Deloitte.

“It’s just continually adding to our portfolio of services, particularly on the technology side,” he said. “The service line that A Hundred Answers provides gives us another business area that we as a firm can exploit for our clients.”

It’s the second time this year MNP has pulled the trigger on a merger with a professional services firm. In April, it combined with Mississauga-based cybersecurity company NCI. Founded in 2009, A Hundred Answers has a client base that includes several federal government departments as well as private corporations such as WestJet. With the company doing more and more work outside Ottawa in markets such as Toronto and Calgary, Mr. Murphy said the merger provides a springboard to reach customers across the country.

MNP has provided accounting services to A Hundred Answers for the past few years, Mr. Murphy said, so the two companies were already well acquainted with each other even before merger talks began. In the end, the deal came together “quite quickly” over the summer, he said.

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Canopy Growth Corp. aims to ‘dominate’ world weed market: CEO

This annual event will examine trends and opportunities in the city’s business sector and provide an insightful forecast about Ottawa’s economic future.

BY DAVID SALI david@obj.ca

T

This event will include: •

Canopy Growth CEO Bruce Linton. FILE PHOTO

Canopy’s stock has risen nearly 25 per cent.

The company has inked agreements to distribute cannabis abroad in Australia, Brazil and Germany and has raised more than $140 million in capital, much of it from U.S. investors.

In August, Canopy reported revenues of $7 million in the first quarter of fiscal 2017, a whopping 300 per cent increase from a year earlier and a 39 per cent rise from the previous quarter.

•

Presentation by Douglas Porter, CFA, Chief Economist & Managing Director, BMO Financial Group An important update from The Mayor of Ottawa

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17 OBJ.CA

$7-BILLION INDUSTRY But Mr. Linton said the company sees a whole different level of growth potential in the recreational marijuana market, which he estimated is already worth at least $7 billion a year even before legalization.

The federal Liberal government has said it plans to introduce legislation next spring to begin the process of legalizing and regulating marijuana for recreational use.

Mr. Linton conceded he is “a bit afraid” of potential competitors from the alcohol, tobacco and pharmaceutical sectors, adding he sees big tobacco as Canopy’s biggest threat.

“Tobacco companies have tons of money, and they have really no future business,” he said. “The cigarette guys are going to be a bit desperate, and they’ve got lots of money.”

Despite that, he said Canopy is still in the driver’s seat because “right now we have the momentum and a bunch of products.”

•

A Keynote address by Geoff Smith, President and CEO, EllisDon

MONDAY, SEPTEMBER 26, 2016

he head of Canada’s largest medical marijuana producer had a clear message for a crowd of businesspeople at Ottawa City Hall earlier this month: legalized weed is coming soon, and his company is ready to be No. 1 in that space as well – and not just in Canada.

“We didn’t want to stand around and wait and have a big company form in another country to come take us over,” Bruce Linton, the chief executive of Smiths Falls-based Canopy Growth Corporation, said in his keynote speech at the Mayor’s Breakfast event sponsored

by OBJ and the Ottawa Chamber of Commerce on Sept. 15.

“We want to dominate the world.”

Mr. Linton said Canopy is already working on new products to compete directly with alcohol, including beverages infused with THC, the active ingredient in marijuana. Such drinks could come in a multitude of flavours and in different strengths comparable to beer, wine and spirits, he added, but without the nasty side-effects of booze such as hangovers and weight gain.

“The alcohol market’s a funny one,” Mr. Linton told OBJ after the speech.

“It’s very fickle. Some genius invented flavoured vodka. Now everybody’s spending their money on brown alcohols that are stored for long times. I think because of its fickle nature, (alcohol) is susceptible to disruption from other products. The products that we’re bringing to market are substantial disruptors.”

Founded in 2014 as Tweed Marijuana, Canopy Growth Corporation currently controls more than 25 per cent of the Canadian medical marijuana market.

It now supplies medical cannabis to more than 16,500 customers across the country under the Tweed brand and owns production facilities in Smiths Falls, Toronto and Niagara-on-the-Lake.

The first medical marijuana producer in Canada to go public when it debuted on the TSX Venture Exchange, the company graduated to the TSX in July of this year. Since its debut on the TSX,

THE LIST 1

The Ottawa Train Yards Inc. 835,000 Marty Koshman 2007

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Kanata Entertainment Centrum 570 Kanata Ave. Kanata, ON K2T 1K5

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Kanata Centrum Shopping Centre 110, 130 and 510 Earl Grey Dr. Kanata, ON K2T 1C1 Grant Crossing 5577 Hazeldean Rd. Kanata ON K2S 0P5 Chapman Mills Marketplace 101-131 RioCan Ave. Ottawa, ON K2J 5G5 SmartCentre Orleans 3900 Innes Rd. Ottawa, ON K1W 1K9 Trinity Crossing 4210-4312 Innes Rd. and 2020 Lanthier Dr. Ottawa, ON K4A 5E6

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WND WND

Canadian Tire; Walmart; Super C

Trinity Common Orleans (RioCan Orleans) Innes and Tenth Line roads Ottawa, ON K4A 4C5 Silver City Centre 1525, 2280, 2300, 2385, 2401 City Park Dr. & 1750, 1820, 1880 Ogilvie Rd. Gloucester, ON K1J 1G1 RioCan Gatineau* 720 Maloney Blvd.

Gatineau, QC J8T 8K7 Riocan Centre Belcourt Innes and Belcourt roads Orleans, ON K1W 0C8 Ottawa South SmartCentres 2210 Bank St. Ottawa, ON K1V 1J5 SmartCentres Kanata 5357 Fernbank Rd Ottawa, ON Silver City Hull 115 de Plateau Blvd.

Gatineau, QC J9A 3G1 Barrhaven Town Centre 3777 Strandherd Dr. Nepean, ON K2J 4B1 Innes Road Plaza 1720 Innes Rd. and 1899 Cyrville Rd. Gloucester, ON K1B 3K5 Merivale Place* 1-1651 Merivale Rd. Ottawa, ON K2G 3K2

RioCan Management Steven Glazer 2009 RioCan REIT 269,440 Yoed Goldstein 2010 SmartCentres 261,551 Andrew Marit 1996 SmartCentres 195,072 Andrew Marit 2010 RioCan Management 184,000 Jeff Klaiman 1999 Centrecorp Management 171,979 Denise Kirk 1992 RioCan Management 167,511 Yoed Goldstein 2000 RioCan Management 160,966 Ryan Mitz 2003 283,877

1,800 N WND

WND Y 16 acres

WND Y WND 1,300 Y 39 acres 2,982 N 56 acres WND 850 N WND WND Y WND 1,000 N WND 1,200 N WND

Barbara Farber College Square Properties Inc.

WND WND

WND WND WND SmartREIT SmartREIT WND WND

Lowe’s; Empire Theatres; The Athletic Club; Food Basics; CIBC; Moxie’s; East Side Mario’s Walmart; Loblaws; Cineplex Odeon; Winners; Future Shop; Chapters; Business Depot; Globo Walmart; RBC; Dollarama; CIBC; Bulk Barn; First Choice Haircutters; Subway; Jiffy Lube Famous Players; Rona; Winners; Walmart

Sandy Pommainville Loblaws; Shoppers Drug Mart; North American Property McDonald’s; BMO; CIBC; Dollarama; Group/Sun Life Rogers; Swiss Chalet RioCan Management WND

Petsmart; Swiss Chalet/Harveys

WND WND

HomeSense; Winners; Jones New York

WND = Would not disclose. *Did not respond to 2016 survey – using data from previous years.

Should your company be on this list? If so, please send details to research@obj.ca This list is current as of August 11, 2016. © 2016 by Ottawa Business Journal. All rights reserved. This material may not be reproduced by any method in whole or in part without written permission by Ottawa Business Journal.

While every attempt is made to ensure the thoroughness and accuracy of the list, omissions and errors sometimes occur. Please send any corrections or additions by e-mail to research@obj.ca. OBJ lists are primarily compiled using information provided voluntarily by the organizations named. Some firms that may qualify for the list are not included because the company either failed to respond to requests for information by press time, because the company declined to take part in the survey or because of space constraints. Categories are drawn up in attempt to gather information of relevance to the Ottawa market.

Research by Patti Moran. Please send questions and comments to research@obj.ca.

FOR THE RECORD People on the move

talk

CEO

communities and working with them to help seek out native speakers.

Feenics has expanded its sales force with the appointment of Fadi Hajjar as director of sales for Canada. Mr. Hajjar will be responsible for expanding the company’s footprint for the Keep by Feenics cloudhosted security management platform and bringing new systems integrators into the company’s value-added reseller program.

SERIES

Cloud automation company Embotics announced that Scott Davis has joined the company as chief technology officer. Mr. Davis will be responsible for managing technology and product strategy for vCommander, the company’s solution for hybrid cloud automation. He will also head up the office of the CTO, an advanced technology team.

Hats off

Richard Mahoney joined McMillan LLP as partner and leader of the company’s national practice and corporate governance group. A former senior political adviser and president of the Ontario Liberal Party, Mr. Mahoney brings experience in the energy, public infrastructure, telecommunications, financial services, technology and land use and planning fields.

Jillian Morgan has been appointed lead of the Aboriginal translation unit at wintranslation. Ms. Morgan, who grew up speaking Mohawk, will be tasked with creating connections with Aboriginal

John Herbert, executive director of the Greater Ottawa Home Builders’ Association, was presented with the David Horton Leadership Award recognizing his contributions to the industry and his fellow association professionals. Mr. Herbert worked as a planner for the City of Edmonton, and from there he moved to an international stage where he managed the exportation of Canada’s wood-frame technology to Russia.

Which exit transaction would you likely follow?

“The M&A activity in Canada has continued to grow year over year and we are also seeing this trend locally. Baby boomers are finally ready and positioned to capitalize on their businesses. A good, well-prepared business has no shortage of strategic buyers.” — STEPHAN MAY, MANAGING DIRECTOR, M&A ADVISOR,

Steve Beauchesne

Co-Founder, Beau’s All Natural Brewing Company They are an award-winning, local, family-run, organic and independent brewery located in Vankleek Hill.

Individual Tickets: $35.00 + HST (Chamber Members) $45.00 + HST (Non-Members)

Wednesday, October 5, 2016 5:00 pm - 7:00 pm

WELCHGROUP CONSULTING

2% 2% WIND UP THE COMPANY

Corporate Group of 8: $245 + HST (Chamber Members) $315 + HST (Non-Members)

IPO

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12%

SALE TO MANAGEMENT

SALE TO FAMILY MEMBER

53% UNSURE

20% EXTERNAL SALE

Join us for a beer and hear from Steve Beauchesne about the unique and certified organic craft beer, conceived with honest consideration for the environment and local communities.

Register online at www.ottawachamber.ca

Presented by

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OBJ.CA

This data is part of the Ottawa Business Growth Survey. Conducted by Abacus Data and made possible by Welch LLP, the Ottawa Chamber of Commerce and the Ottawa Business Journal, the survey gathered input from hundreds of local businesses. A free 36-page report can be downloaded at www.ottawabusinessgrowthreport.ca.

Want to peek inside the mind of a top business executive?

MONDAY, SEPTEMBER 26, 2016

11%

SPONSORED BY TAKOL REAL ESTATE INC.

The Office Condo: Growth Opportunity O

wners of small- and medium-sized businesses looking to buy decent workspace condo, with ample room for growth, know how difficult it is to find premises that offer everything they want for a price that will fit their budget. In fact, there simply isn’t much that is available in Ottawa.

Enter Takol Real Estate Inc., a company on a mission to repurpose and optimize quality commercial office space into affordable and professional office condo for growing startups and established firms alike. Daniel Kolber, Takol’s partner in charge of this development, points out that these companies are underserved when it comes to affordable Class A condominium workspace.

“If you require only a few thousand square feet, there aren’t a lot of standalone buildings of that size available,” he said. “They’re simply not there, and most industrial condominiums do not have any amenities.”

“Owning your office condo is superior to renting and grows equity”

MONDAY, SEPTEMBER 26, 2016

Daniel Kolber

OBJ.CA

20

Takol’s newest offering for early 2017 occupancy is 21 customizable units in the Ottawa Business Park at 2283 St. Laurent Blvd. The units range in size from 690 to 1,804 square feet, and are priced to keep pace with the enthusiasm of motivated business owners in search of improved workspace performance and growth. Prices range from $254,000 to $654,000, with full-floor occupancy options still available.

The various unit sizes and pricing allow potential buyers to purchase a single workspace best suited to their needs, or to take ownership of a cluster of contiguous units for maximum flexibility. With today’s low mortgage rates, translating rental payments into an affordable, comparable mortgage option makes ownership an optimal business case.

Owners can expand into the extra space, rent out their additional units, or sell off investment units as necessary.

The building’s current tenant, the Medical Council of Canada (MCC), is a perfect example of how an organization can make the most out of a workspace condo with a growing workforce.

The MCC was the original owner of the third floor after the building was constructed in 1989. They subsequently bought all floors, but have finally outgrown the available space.

“It was seen as a bit of an investment,” explained MCC executive director Dr. Ian Bowmer. “We couldn’t find this level of office space downtown for the price, and as we expanded, it seemed to make

sense to buy the space on the other floors rather than try to work out rental deals. So we gradually took over the whole building.”

Twenty-Two 83 Workspace Condominiums is a 30,000-square-foot, three-storey building that has been repurposed to respond to an evolving market.

“This is a building with a contemporary exterior that offers a lot of interior flexibility,” Kolber said.

“Instead of using your precious office space for certain support functions, we provide these for you.”

Takol has shouldered most of the burden and front-end costs normally associated with securing business premises of this calibre. The savings are significant enough that, within 10 years, additional equity will have built up to offset what a business might have paid in rent.

The building has undergone significant infrastructure improvements over the past four years — including a roof replacement — and will have a new, energy-efficient HVAC system installed this fall. Among the shared indoor amenities are a finished boardroom with caterer’s bar, ideal for client presentations or staff events; newly renovated washrooms; a private meeting room; on-site bike racks; and shower facilities for a modern workforce.

The facility has dedicated on-site unit parking,

and flexible additional parking options that would put any downtown office location to shame. The building is also served by OC Transpo bus routes 112 and 114, has easy access to Highway 417 via Walkley Rd., and is just minutes away from Ottawa International Airport.

Architect Paul Martineau, Takol’s vice-president for the National Capital Region, likes what he sees.

“This is a highly efficient building with a very steady operating history,” he said. “The landscaping, the building envelope — everything has been meticulously maintained. The bones are very good.”

Good bones indeed.

“This building has served us exceptionally well,” Bowmer said.

For more information, contact Michael Pyman at (613) 683-2202, or visit twenty-two83.com

This story was created by Content Works, Postmedia’s commercial content division, on behalf of Takol Real Estate Inc.