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January 2, 2017 Vol. 20, NO. 5

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Ottawa’s BIG year

LOOKAHEAD

2017

REAL ESTATE | TOURISM CONSTRUCTION | RETAIL TECHNOLOGY | GAMING

2017 PREVIEW:

REAL ESTATE

Condo revival a no-go for 2017: Experts Millennials, baby boomers are as likely to rent as buy for foreseeable future, industry observers say BY DAVID SALI david@obj.ca

MONDAY, JANUARY 2, 2017

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lthough the city’s glut of unsold condos is easing and local realtors reported a sharp jump in November sales compared with a year earlier, Ottawa real estate experts don’t see a great condo comeback on the horizon in 2017. The number of unsold condo units in the Ottawa market fell to 529 in November from 699 in February, according to the Canada Mortgage and Housing Corporation. Meanwhile, the Ottawa Real Estate Board reported its members had sold 16 per cent more condo units in November 2016 than in the same month a year earlier, prompting new board president Rick Eisert to declare that the local condo market “appears to be on the rise.” While there does indeed seem to be a bit of a thaw in the condo market deep freeze, it will likely be a while before sunny days are truly here again, many observers say – and it definitely won’t happen in the next 12 months. “That market is still overbuilt,” argues John Herbert, the executive director of the Greater Ottawa Home Builders’ Association. “It’s going to take a few years to absorb the product in that sector. We probably won’t see quite as many new projects coming online next year or the year after as we have in the past, but they’ll start to make a comeback at that point. I think it’ll be a couple of years until we see some action on that front again.” The overall numbers on condo construction in Ottawa seem to bear out Mr. Herbert’s prediction. According to CMHC, there were 583 new condo starts in the city in the first 11 months of 2016, down from 776 over the same period a year earlier. Those 2015 numbers had already fallen significantly from the total of 1,301 starts for the same 11-month stretch in 2014. Part of the reason for that decline is the rise in the number of projects purposely designed for the rental market over the past couple of years, says Claridge Homes vice-president Neil Malhotra. According to CMHC, there were 526 apartment starts from January to November 2016, down from 654 a year earlier but almost on par with the number of condo starts. Claridge has one purpose-built rental project – a 100-unit building on Lisgar Street – already on the go and plans to break ground on a 230-unit apartment complex on Gloucester Street later this year.

Meanwhile, the company is still working on its Icon and Tribeca condo projects in the central core of the city but has no immediate plans to launch any others in the near future, Mr. Malhotra says. “There was a period where the condo market got really hot because it was being a little bit fed by a marketplace that was buying units to rent them out,” he explains. “That sort of changed. You’re just seeing the purpose-built rental markets being built now by developers and institutional (investors) and it’s taken away from those condominium units filling up that marketplace.” Changing tastes among both younger and older would-be homeowners have helped fuel the shift away from condos toward rental units, experts say. Faced with the daunting prospect of saving up a down payment in addition to a host of other fees and taxes, many potential first-time condo buyers have decided to put their dreams of ownership on hold and rent instead, Mr. Herbert explains. “Housing affordability has become such a problem that a lot of people simply can’t afford to buy,” he says. “Their only option is to rent, so I think that’s really helped the rental market.” But it’s not only millennials looking to enter the market for the first time who are shying away from condos, notes Oliver Tighe, managing director of Colliers International’s valuation and advisory services branch in Ottawa.

Claridge Homes vice-president Neil Malhotra is hoping for a real estate rebound. FILE PHOTO

Claridge Homes’ 45-storey Icon project is one of the few major condo developments currently under construction. COURTESY CLARIDGE HOMES

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Turned off by the thought of shelling out monthly condo fees and paying hefty property taxes, more and more downsizing baby boomers are also opting to rent rather than buy another home or condo, he says. “I think the value proposition of purpose-built rentals is good, and we’re seeing more and more developers continue to explore purpose-built apartment rentals as an option in Ottawa.”

“There was a period where the condo market got really hot because it was being a little bit fed by a marketplace that was buying units to rent them out. That sort of changed.”

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As a result, many major condo projects that were on the books – such as Domicile Developments’ proposed 127-unit tower in Little Italy and Azure Urban Developments’ flagship Azure highrise, a 93-unit building on Richmond Road that was supposed to be completed in late 2015 – are now in limbo. “A lot of the inventory that was coming on stream is no longer coming on stream,” Mr. Tighe says. “I think it’s going to get worse before it gets better.” Still, the 2017 forecast for Ottawa’s housing market isn’t all bad. Fuelled by a surge in row houses and semi-detached dwellings, this year’s total number of housing starts is expected to be similar to 2016’s tally of about 5,000, CMHC says. Developers say they sense the overall housing outlook is “getting more positive” in the region. “The change in government made a pretty significant difference in the city,” Mr. Malhotra says, referring to the federal election that brought the Liberals to power in October 2015. “I think it (eased) a lot of job fears within the public service. That’s bound to trickle through the economy.” Fears that rising interest rates south of the border could trigger rate hikes in Canada might also prompt potential homebuyers to jump into the market sooner, some experts suggest. “There could be a brief sort of burst for people who have been thinking about buying to get in before any interest rate increases, for sure,” Mr. Herbert says.

2017 PREVIEW:

TOURISM

Convention central: Ottawa to host record number of delegates in 2017 Canada 150 celebrations expected to double number of business travellers to capital this year BY PETER KOVESSY pkovessy@obj.ca

MONDAY, JANUARY 2, 2017

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ome 58,000 convention delegates are expected to visit the nation’s capital in 2017 – nearly double the number in a typical year, according to the head of city’s tourism marketing agency. Ottawa Tourism CEO Michael Crockatt released the figure during a breakfast speech to the city’s business leaders in December, roughly two weeks before the National Capital Region kicked off a full year of festivities marking Canada’s 150th anniversary. While the celebrations are expected to draw an influx of tourists and leisure travellers, 2017 is also shaping up to be a big year for business travellers. Many associations and organizations have chosen Ottawa for their 2017 meetings and conventions, tourism officials say. In a typical year, roughly 30,000 delegates come to Canada’s capital for such events, according to Ottawa Tourism. The organization says it’s involved in booking events that will collectively draw 58,000 individuals next year, although the actual number of delegates coming to Ottawa will be higher because some event planners deal directly with a hotel or meeting venue. Those in the hotel industry say the celebrations around Canada’s 150th anniversary are a major draw. “There are quite a bit of social events that (event planners) can base their conferences around,” says Phil Paré, a sales manager at the Ottawa Conference and Event Centre. “Some (conference organizers) have even changed their dates to match up with specific events.” He says 2017 is shaping up to be a “busy year” for the Ottawa Conference and Event Centre, which is slated to host numerous national and international conventions. “It’s an exciting time … (2017) will do wonders for the city,” Mr. Paré says. Downtown at the Shaw Centre, officials at the city’s second-largest convention space are also gearing up for a banner year. A projected 49 conventions are on the books for the 2017-18 fiscal year that runs from this April through next March, says spokesperson Sylvie Carbonneau – a whopping 60 per cent increase from the

Marquee events such as La Machine’s first North American visit are expected to be a big draw in 2017. PHOTO COURTESY OTTAWA 2017 BUREAU

“If we’re engaging with people while they’re having an incredible experience in Ottawa ... they become part of our marketing team.” – MICHAEL CROCKATT, CEO OF OTTAWA TOURISM

31 major events the Shaw Centre hosted in 2016-17. BEYOND 2017 Tourism officials want this year’s influx of out-of-town guests to result in a permanent increase in the number of visitors to Ottawa. Mr. Crockatt said that by 2022, he wants “every year to be as big as 2017” in terms of the number of major events and large conventions held in the nation’s capital. In addition to the city aggressively bidding to host more and more events, Ottawa Tourism hopes several factors

will help it reach that goal and give 2017 visitors a reason to return in subsequent years. That includes new and upgraded infrastructure around the city including the light-rail line as well as fresh offerings such as the redeveloped Canada Science and Technology Museum. Increasingly, however, Ottawa Tourism is looking for more sophisticated ways of telling would-be visitors about such attractions. “People are looking for referrals and reviews, not expert opinions,” says Mr. Crockatt. “We still need to inspire people

to travel to Ottawa, but they’re not going to only trust us. They’ll trust the crowd.” For example, during last fall’s One Young World summit – which attracted some 1,300 delegates between the ages of 18 and 30 from across the planet – delegates published on social media countless photos of themselves at landmarks across the city. “If we’re engaging with people while they’re having an incredible experience in Ottawa, helping to curate those discussions back when they go home with their own personal networks, they really do become part of our marketing team,” Mr. Crockatt says.

“We’ve changed. I think Ottawa has grown up. We’re no longer teenagers – we’re the hip new millennials.” – CHATEAU LAURIER PUBLIC RELATIONS DIRECTOR DENEEN PERRIN

Hotel industry gears up for historic year ‘Pretty spectacular’ array of events means downtown accommodations could be at a premium in 2017 BY DAVID SALI david@obj.ca

s a former general manager of two of Ottawa’s largest hotels, Pat Kelly is all too familiar with the peaks and valleys of an industry that tends to boom in the summer when tourists flock to the capital but can be sluggish at other times of the year – especially the dead of a Canadian winter. But the hotelier-turned-travel consultant doesn’t see a lot of down time on the hotel calendar in 2017. With Ottawa being the focal point of many of the nation’s glitziest Canada 150 events, local hotels are revving up for what will almost certainly be their busiest year ever, he says. “I think the (Ottawa 2017 organizers) have done a very good job of spreading activities out throughout the year,” says Mr. Kelly, a former GM of the Westin and Chateau Laurier who now runs his own firm, Pat Kelly Consulting, and is a partner in another consulting enterprise, Floor13. “Really, it begins with New Year’s Eve. Assuming that we get the hockey heritage game (the much-anticipated outdoor contest between the Ottawa Senators and Montreal Canadiens)

Pick 6: The best of Ottawa 2017 It’s never easy to pick just a handful of highlights from a slate of events as diverse as those planned for Ottawa’s Canada 150 celebrations – but with the help of expert input from Ottawa Tourism’s Jantine Van Kregten, OBJ has done just that. Here are some of our 2017 must-sees:

‘EVERYBODY’S PUMPED’ The event, which is taking place at the Rideau Canal locks, is expected to attract tens of thousands of spectators and generate up to $10 million in economic activity. That’s music to the ears of Chateau Laurier public relations director Deneen Perrin, whose hotel is right next door and stands to benefit in a major way from that and a host of other activities planned throughout the year. “Everybody’s very pumped, very excited to be part of (the 2017 festivities) – to really put Ottawa on the map and to become the (tourist destination) we know we are and to be able to showcase that to the rest of the world,” she STANLEY CUP CELEBRATION March 15-18 Countless Canadians have dreamed of hoisting Lord Stanley’s cherished mug, which is celebrating an iconic anniversary of its own in 2017 when it turns 125. This year also marks the centenary of the National Hockey League and the 25th anniversary of the Ottawa Senators’ re-entry into the NHL, so it’s only fitting that the capital will host an array of events in March to toast hockey’s holy grail and our passion for the frozen game. They include a gala at the Canadian Museum of History featuring NHL alumni, Gov.-Gen. David Johnston welcoming the trophy’s return to Rideau Hall, a meet-and-greet with NHL legends, a tribute concert and the dedication of the new Stanley Cup monument on Sparks Street.

says. “We see this as a chance to be a springboard for the future.” The nation’s capital already has one of the lowest hotel vacancy rates in the country, even in years not jam-packed with marquee tourist events. In 2015, Ottawa tied Montreal for the thirdhighest average occupancy rate among Canada’s 12 major markets at 72 per cent, according to commercial real estate firm CBRE, and the city’s average daily rate ranked fourth behind Vancouver, Quebec City and Montreal. “You take that normal demand and layer on top of it the demand from 2017 events and activities – it’s shaping up to be a very, very strong year,” Mr. Kelly says. David Smythe, general manager of the Lord Elgin Hotel, says the iconic lodging is expecting to have its busiest year ever. The 355-room hotel, which celebrated its 75th anniversary in 2016, recently invested more than $10 million into renovating every unit from top to bottom in anticipation of a major influx of visitors. The hotel is also planning to hire extra employees to deal with the increased volume. “Ottawa’s going to be seen in a completely new light,” Mr. Smythe says. “I think that image of boring

Travel consultant Pat Kelly. FILE PHOTO

Ottawa is going to be shattered in 2017.” Even Canada’s largest city is casting an envious glance toward its smaller provincial cousin’s full slate of celebrations marking the nation’s 150th anniversary, he says with a smile. “Toronto’s never looked at Ottawa that way before,” he says. Ms. Perrin agrees, saying Ottawa is positioning itself to move into the forefront of the tourism conversation. “We’ve got infrastructure in place, we’ve got the LRT coming in 2018,” she notes. “It’s about people putting us on the map. We’ve changed. I think Ottawa has grown up. We’re no longer teenagers – we’re the hip new millennials.” What better view of the fireworks than from the convention centre’s breathtaking glass facade?

KONTINUUM End of June to September Billed as “an ultimate underground experience,” this interactive multimedia show is produced by Moment Factory, the Montreal company that was also behind the Mosaika sound and light production on Parliament Hill. Set in the future Lyon light-rail station slated to open next year on the western edge of the downtown core, the free production will highlight the LRT project and its role in transforming Ottawa’s transportation system.

105TH GREY CUP AND FESTIVAL Nov. 22-26 With the possible exception of the Stanley Cup, no trophy is more emblematic of sport in this country than the Canadian Football League’s championship mug. The CFL’s resurgence in the nation’s capital – thanks to a strong, committed local ownership group, a spiffy new stadium and a revitalized fan base – means Ottawa is sure to host one heck of a grand national party in late November. Being the home of the defending champs doesn’t hurt either, and the RedBlacks would love nothing more than to reward the city with a third straight Cup appearance, this time in the friendly confines of TD Place on Nov. 26.

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CANADA 150 PARTY July 1 One hundred and fifty years to the day after the British North America Act of 1867 came into effect, the Shaw Centre will host the biggest birthday bash the country has ever seen, complete with cuisine from some of Canada’s top chefs and an eclectic mix of live music and theatre performances.

LA MACHINE July 26-30 Fire-breathing dragons, gargantuan spiders and other large-scale machines are set to take over downtown in late July – a spectacle that is the brainchild of French production company La Machine, which is bringing its creations to North America for the first time. Another free event, this one is sure to thrill and awe spectators of all ages.

MONDAY, JANUARY 2, 2017

RED BULL CRASHED ICE March 3-4 The final leg of the ice cross downhill world championship crashes the capital’s Canada 150 party in early March, with more than 100 athletes expected to hurtle down an icy track on the Rideau Canal locks at speeds of 50 km/h or more.

in December, it really is a 12-month program of some pretty spectacular events taking place. That will help to spread the business out, spread the demand out.” Many other industry insiders agree, pointing out that even the traditionally barren month of March will be livened up with events such as the Red Bull Crashed Ice championship, in which about 100 athletes from around the world will lace up their skates and zip down a 480-metre track of sharp turns and steep drops.

2017 PREVIEW:

CONSTRUCTION

‘Fierce competitors’ PCL and EllisDon team up to rehabilitate Centre Block BY PETER KOVESSY pkovessy@obj.ca

entre Block has loomed large over Ottawa’s economy for more than a century, symbolizing the outsized role the federal government plays in the local business community. The popular tourist attraction will take on added importance to the local construction industry in 2017 as preliminary work starts on what the federal government says will be the largest heritage rehabilitation project of its kind in Canada. It’s expected to take a decade to fully restore and modernize the building, addressing a long list of deficiencies that includes crumbling mortar, aging water pipes and outdated mechanical, electrical and safety systems.

“We’re fierce competitors. And we remain fierce competitors. But (this) one made some sense.”

MONDAY, JANUARY 2, 2017

– ELLISDON CEO GEOFF SMITH, ON THE COMPANY’S HISTORIC JOINT BID WITH PCL

OBJ.CA

While work won’t begin in earnest until next year, much of the groundwork will be laid in 2017 as contracts are negotiated and enabling work – such as relocating underground sewer and water lines as well as building a temporary loading dock – begins. In addition to being unprecedented in its scope and complexity, the project has already broken new ground in the construction business. The federal government prequalified only one entity to bid on the main project and received a single bid for the main construction contract: A joint venture of EllisDon and PCL, the two largest general contractors in both Ottawa and across Canada. EllisDon CEO Geoff Smith told OBJ this project marks the first time the rival

Who’s already involved in the project? A real property management services contract, valued at $566,469, was awarded in March 2016 to Mobile Resources Group for pre-planning services; A $4.72-million consulting contract to implement and monitor a purposebuilt project delivery model, combining the principles of lean design and construction, was awarded to the ReAlignment Group on Nov. 30, 2016; Carleton University received a $1.76-million contract in September 2015 to develop a building information model for Centre Block, advance the research and understanding of the structure and heritage elements of the building as well as develop training for applying digital technologies to heritage conservation. A request for proposals for project management support services closed on Dec. 1, 2016. A contract is expected to be awarded later this year. A request for proposals for cost, time and risk management services will close early this year. The construction management contract is far from the only Centre Block job up for grabs. Three consortiums qualified to bid on an architectural and engineering services contract. They are:

firms have ever teamed up for a project. “We’re fierce competitors. And we remain fierce competitors,” he said. “But (this) one made some sense.” Mr. Smith said the Centre Block rehabilitation project is too large for any one company to take on itself, leading EllisDon and other construction firms to look for joint-venture partners. For PCL’s part, Kevin Skinner – the company’s vice-president and district manager – said the firm is “excited” to work with EllisDon and “appreciates the opportunity” to work with the federal government on the Centre Block project. Federal officials said they had been hoping to prequalify three firms to submit bids with an evaluation criteria that was “very open,” but only received the joint EllisDon-PCL submission. However, a spokesperson for Public Services and Procurement Canada, Pierre-Alain Bujold, noted that the firms are “two very large and reputable construction companies” and that the department “is confident they have both the competency and the capacity” to manage the project. The joint venture must meet all technical and financial criteria, Mr. Bujold said, adding that the construction management job may be re-tendered if the government is unable to negotiate a “fair and reasonable contract.” Mr. Bujold declined to give a timeline for negotiating a deal or provide an estimate on its expected value.

Centre Block Architects and Engineers, consisting of: DIALOG Architecture Engineer Interior Design Planning Inc.; NORR Limited; and RTKL Joint Venture Centrus, consisting of: Architecture49; WSP; HOK; and Parsons Brinckerhoff Semper Paratus Group, consisting of: Arup Canada; Fournier Gersovitz Moss Drolet Associés Architectes; and Perkins+Will Canada

SOURCE: PUBLIC SERVICES AND PROCUREMENT CANADA

What’s wrong with Centre Block, anyway? Quite a few things, according to the federal government. Centre Block has not received a major upgrade since it was rebuilt following a fire that destroyed the previous building in 1916. A century later, the structural steel is rusting and is at risk of losing its integrity. Major building systems are approaching failure, while embedded electrical and mechanical systems have been stretched beyond their useful lifecycle and cannot be accessed or serviced while Centre Block is in use.

Leaking roofs, walls, windows and plumbing are damaging historical interiors, while mechanical failures – such as broken elevators – are affecting parliamentary business and tourist visits. Additionally, the building does not meet current seismic construction standards. During work on Centre Block, the newly built West Block courtyard will become the interim home of the House of Commons Chamber while the Government Conference Centre will serve as the interim Senate Chamber.

2017 PREVIEW:

RETAIL

Market resurgence in store for Ottawa? Mid-range retailers should see gains after years of losing market share, industry analyst says BY DAVID SALI david@obj.ca

fter a flurry of activity in 2016 that saw the Rideau Centre unveil a $360-million expansion and Costco open a new outlet in Barrhaven, the Ottawa retail sector is set to experience steady if unspectacular growth over the next 12 months, a prominent analyst predicts. Mid-range retailers such as clothing chain Gap and Sears department store have been steadily losing market share to discount and luxury stores for the better part of a decade, noted Barry Nabatian, director of market research at ShoreTanner & Associates. However, he thinks the sector could

see a bit of a turnaround in 2017 driven by public servants who feel their employment is more secure and consequently are more willing to open their wallets. “They know that their jobs are not going to be cut and they’ve begun to spend money,” Mr. Nabatian told OBJ, adding the sports and recreation sector in particular stands to benefit from an increase in discretionary spending. Steady growth in the tech sector – fuelled by the continued rise of Shopify and other good-news stories such as BlackBerry’s recent announcement that it expects its QNX subsidiary in Kanata to hire more than 500 workers over the next few years – is also giving the local retail economy a boost, he adds. “There is a certain level of confidence that is building up,” Mr. Nabatian

Quebec retailer Simons anchors the Rideau Centre’s new $360-million expansion. FILE PHOTO

explained. “That’s very important. Basically, the news is positive, and positive news attracts (retail spending) growth.” Discount stores such as Costco, Value Village and Winners will continue to flourish in 2017, he predicted. On the other hand, he said, much-ballyhooed new entries on the higher end of the retail spectrum, including Nordstrom and Michael Kors, still need more time to establish themselves in the Ottawa market before making the kind of impact they’d hoped for.

“They are not doing as well as had been expected,” Mr. Nabatian said. “I think the expectations were a bit too ambitious. They are not promoting themselves much. I think they are sort of taking for granted that people will come.” Venerable Canadian retailer Simons is one newcomer to the Ottawa scene that has lived up to its advance billing, he said. The Quebec-based chain opened its first store in the nation’s capital – a 100,000-square-foot space in the Rideau Centre’s new wing – in August. Continued on page 13

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their own way. What can we learn from organizations that are doing excellent work and achieving superior results in their specialty? This intent is to go beyond “best practices” and identify the universal messages that can apply in any organizational context, said Richard Clayman, Sessional Professor and Executive-inResidence for Leadership Development at Telfer. “How do we recognize the need for improvement and the building blocks by which we answer that challenge?” said Clayman. “How do we recognize it, frame it, bring resources to it, think our way through it and then how do we test and measure how well we’ve done?”

MONDAY, JANUARY 2, 2017

n 1977, a failed research project at McKinsey & Co. set in motion the wheels that would lead Tom Peters and Robert H. Waterman, Jr. to publish In Search of Excellence, a controversial bestseller on organizational change. Forty years later, what have we learned about what can make a company great and how to get it there? The University of Ottawa’s Telfer School of Management will explore this topic in the January edition of its MBA Conferences series on Saturday, Jan. 28. In Search of the New Excellence will feature three companies with local operations that have achieved excellence each in

The three featured companies all hail from different industries and have different pedigrees, but Clayman is confident what consistent themes will emerge. “I think all three will focus on the key factors of having quality HR resources within their organizations and having strong relationships between those people and the people who bring revenue in the door – understanding customer wants and delivering on them,” he said.

COMMENTARY Coach houses open the door to better urban planning

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But if the city really wants to get serious about boosting intensity inside the core, it needs to let homeowners build both granny flats and in-home suites, Bruce Firestone argues

MONDAY, JANUARY 2, 2017

OBJ.CA

s many of you probably know, the City of Ottawa recently changed its bylaws to permit construction of coach houses on many existing residential lots. The new bylaw allows homeowners to construct small, self-contained accessory apartments called coach houses that are detached from the primary dwelling but still on the same lot. This is part of a worldwide effort to increase density in existing urban areas. I expect coach houses – also known as “granny flats” – to have a profound impact not only on the urban fabric of Ottawa, but also on individual homeowners’ abilities to take care of themselves and their families financially. How so? Here’s an example. Let’s assume you own an existing house in Ottawa that is worth the city average of $380,000. You decide to add a two-bedroom, one-bath coach house in your backyard covering 40 per cent of the area there. The thought is that it’s going to add a bit of income for you when you retire. Now, let’s suppose it costs you $120,000 to build your new coach house. What is your return on investment if you build something like this? I’ve calculated them in the table on the right. So your cap rate (capitalization rate, a measure of return based on you making this investment as if it was funded in cash – that is, without adding to your mortgage) is 13.6 per cent a year. When you compare this to what you earn on your savings at your bank (anywhere from 0.99 per cent to 1.7 per cent annually today) or what most of your

mutual funds are probably doing (mine are horrible – around 2-4 per cent in annual gains), it looks quite satisfactory. There is also the hope that your real estate will go up in value over time, which compounds your return. A cap rate measures only cash returns, not inflation or mortgage principal paydown (if you have a mortgage). Now, $16,316 of extra annual income might not sound like a whole heck of a lot, but when you compare it to the average Canada Pension Plan payout of just $550 per month, it can make a big difference, especially to elders living on fixed incomes. So far so good. But changing bylaws is not sufficient to see a new industry bloom in Ottawa. We have to be cautious in our early assessment, because the coach house idea is not new. I worked on a Kanata subdivision called Briarbrook more than 25 years ago when I was at Terrace Investments, the first parent company of the Ottawa

Senators. We put in the zoning that granny flats would be permitted on larger pie-shaped lots – the ones that are created when a roadway turns a corner. None were ever built. How come? Because the former City of Kanata imposed rules that made their construction impossible. The flats had to be rented to tenants related to the owners, who could only get a “temporary” building permit of five years (presumably after which time you’d have to remove the structure or tear it down). Owners also had to pay a full development charge to help fund off-site infrastructure, even though none was needed. Ottawa’s new coach house bylaw calls for a significant development charge of about $6,000, and it prohibits having both a coach house and an in-home suite on the same lot. This is a big mistake, in my view. Essentially, you have to choose between, say, a legal basement

Wendy Baily, 238-1818 ext. 244 wbaily@obj.ca Carlo Lombard, 238-1818 ext. 230 carlo@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 SUBSCRIPTIONS/DISTRIBUTION Patti Moran, 238-1818 ext. 248 subscribe@obj.ca PRINTED BY Transcontinental Qualimax 130 Adrien-Robert, Parc Industriel Richelieu Gatineau, QC J8Y 3S2 NEWS RELEASES Please e-mail to editor@obj.ca. 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.

What’s the potential ROI on a coach house in Ottawa? • Cost of construction:................................. $120,000 • Rental income:.......................................... $1,800 per month, including utilities • Tech package (netflix, basic cable, phone, internet, wi-fi, large-screen tv):.............................. $115 per month • Total rental income:................................... $1,915 per month • Operating costs, utilities, property management, tech package, administration and insurance:................... $459.60 per month based on 24 per cent of total rental income • Vacancy allowance:................................... $95.75 per month based on five per cent vacancy rate • Net operating income:............................... $1,359.65 per month or $16,315.80 per year • Cap rate:.................................................... 13.6 per cent per year

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. A guaranteed minimum of 11,000 copies per week are printed and distributed.

apartment and a granny flat in your backyard. As someone who coaches hundreds of real estate investors, I already know this is a difficult choice. So here’s what’s likely to happen: We are going to return to the situation that prevailed before in-home suites were legalized a decade ago. Folks will build coach houses, and after they get their occupancy permits, they will construct illegal basement apartments. The city probably had tens of thousands of those illegal apartments before the rules were changed, many of them not only illegal but unsafe as well. If the city really wants to increase density, why not allow both coach houses and in-home suites? Well, city planners and politicians live in perpetual fear of the NIMBY movement led by backyard political activists who detest almost any change in their neighbourhoods. Their concerns? You’re bound to hear lots of talk about more traffic, increased pressure on municipal infrastructure and schools, negative environmental consequences such as tree removal and higher policing costs due to “undesirables” taking up residence in basement suites or coach houses. But in reality, it all boils down to

City planners and politicians live in perpetual fear of the NIMBY movement led by backyard political activists who detest almost any change in their neighbourhoods one thing: Money. NIMBYites fear their property values will drop if coach houses are allowed in their neighbourhoods. Yet in almost every instance I have studied, higher densities have resulted in higher, not lower, property values. Take the Glebe, for example. A desirable neighbourhood to live in, no? It has lots of side-yard, backyard and basement apartments, plus coach houses, an array of businesses, restaurants, offices, an arena, a stadium and, yes, traffic galore. But trust me, a home in that area is not going down in value. The caveat on this is order and peace need to be maintained, the sine qua non of creating value in any society or town. Fortunately, Ottawa-Gatineau is still one of the safest cities of its size in which to live. If we are still afraid of a NIMBY attack,

maybe we could do worse than borrow a concept from radical English Prime Minister Theresa May, who found a way to turn NIMBY activists into PIMBYs (“please in my backyard”) supplicants. She did it by making sure that any socalled “undesirable” use of property requires a royalty, which instead of being deposited in the coffers of governments goes directly to neighbours affected by the change. That might be a bridge too far for Ottawa councillors, but it would probably work. Out of curiosity, I calculated what would happen if other cities, towns and villages followed Ottawa’s example and permitted coach houses. I estimated there are about 195 million dwellings in the United States and Canada. If 20 per cent of those are suited to adding coach houses, and if

all of them did so, it would add $1.8 trillion per year to the total GDP in those nations. Wow. I love what the tech industry can do for a town like Ottawa. It’s also great to have other economic engines running flat-out, such as the public sector, tourism, education, health care and entertainment. No industry, however, is bigger than real estate. Everyone needs a place to live, shop, work, learn, make, play and earn. If we could take the planning shackles off urban designers and real estate investors, they’d be able to create a much more vigorous environment in which to generate wealth. Why not try to create neighbourhoods that encourage innovative planning solutions without the dead hand of regulators constantly shooting them down? Here’s wishing everyone a safe and prosperous New Year.

Bruce M. Firestone is founder of the Ottawa Senators and a broker at Century 21 Explorer Realty. Follow him on Twitter @ProfBruce.

WE’RE A FULL SERVICE CENTRE

haw Centre is a beautiful meeting facility in an iconic location in the heart of Canada’s

capital. But you can’t get by on looks alone. Which is why we’ve always put customer service first. We’re proud to have just won the 2016 Ontario Business Achievement Award for Service Excellence. That comes on the heels of our 2016 Trip Advisor Certificate of Excellence for customer experience, and our 2014 runnerWorld rankings. We’re a full service centre, and look forward to serving you soon.

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2017 PREVIEW:

TECHNOLOGY

Invest Ottawa startups ready for network prime time $10M research facility set to open at Bayview Yards later this year aims to help fledgling firms test 5G, “smart city” and Internet of Things capabilities BY ADAM FEIBEL adam@obj.ca

MONDAY, JANUARY 2, 2017

ichel Paquet’s company needs all the mobile network coverage it can get. After watching his 83-year-old aunt’s struggle with Alzheimer’s disease and noticing the difficulty she had letting her family and health care providers know what she needed, Mr. Paquet started Aetonix to address the problems experienced by his aunt and many others in similar situations. Founded in 2014, the startup develops a personal communication and emergency alert system designed for seniors and others with complex care needs. The Aetonix system features face-toface communication, patient monitoring and emergency alerts using secure, on-demand communication between many different devices. Users including patients and care providers rely on their system at all times, so dependable and high-performance mobile networks are crucial to building and maintaining their customers’ confidence.

OBJ.CA

NEXT-GENERATION TECH “People depend on our product, so uptime is really critical,” says Mr. Paquet. A new research facility coming to the Innovation Centre at Bayview Yards will feature millions of dollars’ worth of nextgeneration network communications technology. For Invest Ottawa portfolio companies like Aetonix that will be working right in the thick of it, these advanced systems could offer major opportunities for growth and scalability. The facility will be an extension of the Centre of Excellence for Next Generation Networks, a Kanata-based collaborative organization that looks for ways to bring new communications technologies to market more quickly. With resources from among CENGN’s 12 members – which include Cisco, Nokia, Juniper, Fujitsu, Telus and more – and equal funding from the city and Invest Ottawa, the facility will feature up to $10 million worth of telecommunications equipment, including the latest in cloud infrastructure, high-speed Internet connectivity, optical switching and routing infrastructure. Expected to be operational in the next

Aetonix founder Michel Paquet (left) and SweetSeat COO Cody Spicer see big opportunities ahead at Bayview Yards. PHOTO BY MARK HOLLERON

three to four months, it will act as an evaluation testbed for potential products or services that startups are trying to bring to market. With access to equipment and technology that is normally unavailable or too expensive for validation testing, companies working in fields such as 5G networks, “smart city” infrastructure and the Internet of Things will be able to conduct multi-vendor testing and certification that’s crucial to proof-ofconcept projects. “What we’re really trying to do is get something on the résumé of these small Canadian companies so that they can go sell globally,” says CENGN chief executive Ritch Dusome. Mr. Paquet, for one, says he’s excited about the prospect of testing the scalability of Aetonix. The startup currently has close to 1,000 users at an adult care centre in Brampton and two Health Links groups in the Ottawa area. Mr. Paquet says he hopes to tap into the roughly 680,000 people served by Health Links across Ontario – a market that, as the population ages, is expected to multiply in the years ahead – by stresstesting their product’s ability to meet the demand. “That’s a lot of people,” he says. “If you have a portion of them all doing a

call at the same time, that’s a lot of data flow on the system. If we can actually test what we do on new infrastructure like this and see that yes, we can scale to this number of people no problem – or a much bigger number, like millions – that will be a very good thing for us.” Meanwhile, another Invest Ottawa portfolio company, SweetSeat, sees major potential in mobile, on-demand purchases of products and services – whether it’s a sports fan ordering food and drinks to their seat during a game, a worker ordering lunch in advance to save time on their break or any number of other services that could be made more readily available through a mobile web application like the one the firm has been developing.

“What we’re really trying to do is get something on the résumé of these small Canadian companies so that they can go sell globally.”

COMPATIBLE WITH 5G “We’re itching to make full use of the resources here,” says Cody Spicer, the company’s chief operating officer. “Our technology is completely centred around the G networks … and it’s very compatible with the 5G networks. Our vision, especially within a smart city, is that for any business that needs people to pay for something, it can be done through a mobile device.” Mr. Spicer sees his company’s model as the future of sales for products and

services, and he says that being able to use CENGN’s resources while working out of Invest Ottawa’s headquarters at Bayview Yards will prove to be a major advantage for SweetSeat. “The more coverage and the better access people consistently have to the Internet, the better for our business in particular,” he says. “As they expand those coverages and lay that bandwidth pipeline, it’s going to help a lot of different companies expand.”

– RITCH DUSOME, CEO OF KANATA’S CENTRE OF EXCELLENCE FOR NEXT GENERATION NETWORKS

FANTASTIC FIVE: Ottawa’s top tech firms to watch in

2017

QNX:

YOU.I TV:

A fixture on OBJ’s annual fastest-growing companies list, You.i TV continued to make waves in 2016 with a $12.1-million Series-B funding round backed by media giant Time Warner. The Kanata-based company’s software allows developers to use a common code to build a variety of media user-interface platforms, and its growing customer list includes high-profile entities such as Turner Broadcasting’s TNT network, the Canadian Football League and Corus Entertainment. Now at nearly 200 employees, You.i is sure to keep grabbing its share of headlines in 2017.

PAGECLOUD:

MITEL:

It wasn’t all wine and roses for Ottawa’s largest telecommunications technology company in 2016. CEO Rich McBee’s bold bid to challenge industry front-runners Cisco and Microsoft with a proposed $1.96-billion friendly takeover of California-based Polycom collapsed when Mitel decided it wouldn’t match a rival offer from Siris Capital Group LLC. The Ottawa firm rebounded with strong earnings performances fuelled by its surging cloud services sector. In late December, Mitel sold its mobile operations to Massachusettsbased Xura for $360 million and said it planned to focus on unified cloud-based business communications systems. Still, few industry observers believe Mitel is going to sit on the acquisition sidelines for long. The Kanata company is always worth keeping a close eye on, and 2017 will be no exception.

RANZURE NETWORKS:

11 OBJ.CA

A relatively new kid on the tech block, this Texas-based firm was also acquired by Xura in December. Ranzure, which has a significant R&D presence in Kanata, is developing super high-speed 5G network technology for radio access networks – the portions of wireless networks that connect devices such as computers and smartphones to the networks’ core and help form the backbone of the Internet of Things. Founders Erik Boch, Pardeep Kohli and Ashok Khuntia are no strangers to the tech startup scene, having played key roles in firms such as DragonWave and Spatial Wireless. Mitel chairman Terry Matthews – a man who knows a thing or two about building market-leading companies – is a big fan of Ranzure, making this startup a must-watch enterprise in 2017.

MONDAY, JANUARY 2, 2017

The ByWard Market startup with the audacious mission of “fixing the Internet” closed 2016 with a splashy anniversary bash in November and the announcement of $5.4 million in Series-A funding. Founder Craig Fitzpatrick plans to use that cash to beef up the company’s marketing and development teams for what he hopes will be a momentum-building year in 2017. PageCloud’s drag-and-drop web design software has quickly become a hit with seasoned developers and newbies alike – more than 15,000 users have already signed up. Still, Mr. Fitzpatrick thinks that’s just the beginning, and he anticipates the firm’s headcount will double to 40 by year’s end.

The BlackBerry subsidiary made a major splash in the closing days of 2016, when Prime Minister Justin Trudeau joined BlackBerry boss John Chen at QNX’s Kanata facilities to announce a new $100-million “innovation centre” dedicated to developing software for connected and self-driving vehicles. Mr. Chen told reporters the new hub would lead to some 650 new Ottawa-based jobs in the coming years, on top of QNX’s current local headcount of about 400. The company is already a leader in the automotive software space, developing so-called infotainment systems for major manufacturers including Ford, General Motors, Hyundai and Volkswagen. In recent years, QNX has expanded its efforts into the realm of autonomous vehicles through projects such as object recognition technology so that a car can read a stop sign, for example, or recognize an adjacent lane. Mr. Chen says the company will be “building an ecosystem” by involving its industry partners, such as the University of Waterloo, in the new autonomous vehicle centre, a move that is expected to further bolster employment in Ottawa’s tech sector.

GAMING

2017 PREVIEW:

Gaming expo owner sees bright future BY CRAIG LORD craig@obj.ca

n Ottawa-based marketing and events firm has has acquired Capital Gaming Expo (CGX), and the new owner is hoping to turn the annual event

into a beacon for Ottawa’s burgeoning gaming sector. Under former owner Ottawa Geek Market, the multi-day convention had a broad appeal that targeted tabletop, card, role-playing, board and video game enthusiasts. The Ottawa Geek Market was looking

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to focus on its successful trade show, which features vendors selling handicrafts and nerd paraphernalia. It sold its Game Summit to new owners Christian Gilbert and David Gagné and approached Jillian Mood & Partners about acquiring CGX. The company’s CEO, Jillian Mood, said she hopes to focus CGX more on high tech and gaming as well as turn the event into a hub for Canadian game development. “I’ve really always wanted to run an event that was very inspiring for people who go, that brings together gamers and developers,” she says. New CGX owner Jillian Mood. PHOTO PROVIDED That inspiration will hopefully come in the form of success stories from developers examples of Ottawa successes that don’t get who left established firms and started their the attention they deserve. own ventures, as well as letting attendees The coming year will be big for Ottawa experience the Canadian tech being gaming, Ms. Mood says. In addition to developed in virtual and augmented reality. her first iteration of CGX, the Canadian “There are so many new game studios Video Game Awards are coming to the city, popping up. Indie studios are where it’s at. coinciding with Ottawa 2017 festivities. They’re taking over the video game market,” For JM&P, she’s hoping to expand her own Ms. Mood says. “The Ottawa market is full external marketing efforts and grow her of successful indies … I love that feel.” 10-person staff to as many as 20 people by She mentions local companies such year’s end. as Snowed In Studios, Steel Crate Games, “2017 is going to be massive, in Ottawa Breakfall and Karman Interactive as especially, for gaming,” Ms. Mood says.

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WE BELIEVE IT’S ALL ABOUT THE FIT.

“There is a certain level of confidence that is building up. That’s very important. Basically, the news is positive, and positive news attracts (retail spending) growth.” – BARRY NABATIAN, DIRECTOR OF MARKET RESEARCH AT SHORE-TANNER & ASSOCIATES

Continued from page 7 “Based on what I hear, Simons is doing better than Nordstrom,” Mr. Nabatian said, explaining the Canadian retailer offers a larger selection of goods at generally lower prices. In an e-mail to OBJ, CEO Peter Simons said the chain is happy with the performance of the Rideau Centre location so far. “There are still many people discovering who we are, but sales are exceeding our expectations,” he said, adding the company is doing particularly robust business on its website in Ottawa. “We can see that there is incredible synergy between the store and e-commerce in this market.” Though fewer headline-grabbing retail debuts are in the works this year than in 2016, Canadian sporting goods giant

Sport Chek is opening a new flagship store in the downtown mall later this month, and Rideau Centre general manager Cindy VanBuskirk said several more “firstto-market” retailers will appear in the shopping centre throughout 2017. The influx of millions of tourists expected for the city’s Canada 150 celebrations will also create “tremendous opportunities” for local retailers this year, Ms. VanBuskirk said. However, the outlook isn’t as rosy for Ottawa’s restaurant scene, Mr. Nabatian said. Rising hydro rates and escalating food costs are making what is already a challenging industry at the best of times even more cutthroat for eatery owners, and he expects another spate of restaurant closures in 2017. “How can these people make money?” he said.

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Company/Address Phone/Fax/Web Minto Communities 200-180 Kent St. Ottawa, ON K1P 0B6 613-230-7051 / 613-788-2758 minto.com Mattamy Homes 100-50 Hines Rd. Ottawa, ON K2K 2M5 613-831-4115 / 613-831-9060 mattamyhomes.com Richcraft Group 201-2280 St. Laurent Blvd. Ottawa, ON K1G 4K1 613-739-7111 / 613-739-7102 richcraft.com Tamarack Homes 3187 Albion Rd. Ottawa, ON K1V 8Y3 613-739-2919 / 613-739-7334 tamarackhomes.com Tartan Homes 233 Metcalfe St. Ottawa, ON K2P 2C2 613-238-2040 / 613-238-1056 tartanhomes.com Mastercraft Starwood 204-2525 St. Laurent Blvd. Ottawa, ON K1H 8P5 613-247-7616 / 613-247-1431 mastercraftstarwood.com Urbandale Construction 2193 Arch St. Ottawa, ON K1G 2H5 613-731-6331 / 613-731-0619 urbandaleconstruction.com Domicile Developments 1-371A Richmond Rd. Ottawa, ON K2A 0E7 613-728-0388 / 613-728-0046 domicile.ca Cardel Homes 100-301 Moodie Dr. Ottawa, ON 613-820-1959 / 613-820-3191 cardelhomes.com Uniform Urban Developments 300-117 Centerpointe Dr. Ottawa, ON K2G 5X3 613-225-0770 / 613-723-1675 uniformdevelopments.com Valecraft Homes 210-1455 Youville Dr. Orleans, ON K1C 6Z7 613-837-1104 / 613-837-5901 valecraft.com Glenview Homes 3894 Prince of Wales Dr. Ottawa, ON K2C 3H2 613-692-8439 glenviewhomes.com Braebury Homes 400-366 King St. E. Kingston, ON K7K 6Y3 613-546-3400 / 613-546-4213 braeburyhomes.com EQ Homes Inc. 200-1737 Woodward Dr. Ottawa, ON K2C 0P9 613-288-0412 / 613-288-0718 eqhomes.ca Brigil Homes 98 Lois St. Gatineau, QC J8Y 3R7 819-243-7392 / 819-243-5126 brigil.com Campanale Homes 200-1187 Bank St. Ottawa, ON K1S 3X7 613-730-7000 / 613-730-3030 campanale.com Doyle Homes 1367 Terrace Ridge Dr. Carp, ON K0A 1L0 613-831-7924 / 613-831-7925 doylehomes.ca Ashcroft Homes 18 Antares Dr. Ottawa, ON K2E 1A9 613-226-7266 / 613-226-7161 ashcroft-homes.com Longwood Building 5-1010 Polytek St. Ottawa, ON K1J 9H8 613-746-1300 / 613-746-3997 longwoodbuilders.com Talos 1-5509 Canotek Rd. Ottawa, ON K1J 9J8 613-747-3993 / 613-747-2868 taloshomes.com

LARGEST HOME BUILDERS (RANKED BY NUMBER OF POSSESSIONS IN 2015)

Possessions Key local executive/ 2015 Year founded

Percentage of work subcontracted

Types of homes built

Recent area projects

831

Brent Strachan senior vice-president 1955

WND

Terrace homes; townhomes; two-storey single-family; high-rise condominiums; bungalows

Quinn’s Pointe (Barrhaven); Avalon Encore (Orleans); Arcadia (Kanata); Mahogany (Manotick); Potter’s Key (Stittsville)

415

Kevin O’Shea Ottawa division president

WND

Townhomes; two-storey single-family; village homes

Half Moon Bay; Longfields; Stonebridge; Fairwinds West; Monahan Landing; Summerside West

350

Kris Singhal owner 1985

WND

Townhomes; two-storey single-family; bungalows; condominiums; flats

Brownstones; Riverside South; Fernbank Crossing; Fieldstone Barrhaven; Woodroffe Flats; TrailsEdge; The Bowery; Strandherd Meadows

241

Chris Taggart president 1987

100

Singles; townhomes; semi-detached

Poole Creek Village; The Meadows; Greenwood Park West; Findlay Creek; Chaperal; Cardinal Creek Village

219

Ian Nicol president 1968

Semi-detached; single family; bungalows; condominiums

Findlay Creek Village; Havencrest; Poole Creek; Russell Trails

156

Bruce McMahon vice-president 1951

100

Luxury condominiums

SoHo Italia; 192 Forward

150

Peter Weiss general manager 1979

Single-family homes; bungalows; townhomes; bungalow townhomes; stacked condos; boutique condos

Riverside South; Bridlewood; Kanata Lakes; Country Walk in Kemptville

141

David H. Chick vice-president 1976

Condo apartments; townhomes; flats

The Corners On Main in Old Ottawa East; Crème in Orleans; Bergeron Terrace in Chapel Hill, Orleans; The Kavanaugh in Beechwood Village; hōm towns in Little Italy

111

Greg Graham regional president 1992

Townhomes; two-storey single-family; bungalows; condominiums; custom homes

Blackstone; Longfields; Miller’s Crossing; Richardson Ridge; Ridgewood Estates; Stonewater Bay

107

John MacDougall president 1997

Two-storey single-family homes; townhomes

The Orchard; Richardson Ridge; Maple Creek Estates

Frank Nieuwkoop director of sales and marketing 1982

WND

Terrace homes; condo flats; townhomes; rear-lane townhomes; bungalows; two-storey single family

Aviation Private; Bradley Estates; Place St. Thomas; Trailwest; Woodroffe Lofts

Frank Cairo president Jacob Shabinsky managing director 2010

WND

Townhomes and single detached homes

Monahan Landing (Kanata); LIV Towns (Kanata); Tempo (Kemptville)

Peter Splinter president and owner 1983

WND

Townhomes, two-storey single-family, bungalows

Richardson Ridge (Kanata)

David Wallace president 2009

Two-storey singles; bungalow singles; townhomes; low-rise and mid-rise condominiums

Greystone Village in Old Ottawa East

49*1

Gilles Desjardins president and founder 1985

Townhomes; two-storey single-family; bungalows; semi-detached; stacked condos; highrises

Plateau du Parc; Plateau Symmes; Chateau Golf; Jardins McConnell; Rivermead

Vince Campanale vice-president 1987

100

Two-storey single-family; bungalows; attached bungalows; semi-detached; executive townhomes; custom homes; terrace homes; condo flats

The Station, a low-rise four-storey apartment condo in Longfields Station

Trevor Doyle owner 2001

Custom; serviced and estate; infills; multi-unit projects

Sunset Woods; Kings Grant; Whitemarsh Estates; Forestview Estates; Stonewalk Estates

David Choo president 1991

WND

Townhomes; two-storey single-family; semi-detached; condo apartments; bungalows.

CityPlace; Eastboro; Central Park; Grenwich; Chorus

Guy Whissel president and founder 1988

100

Two-storey single-family; bungalows; attached bungalows; condominiums; terrace towns; stacked terrace towns; townhomes

Mondavi Court; Richmond Gate; Sonia on the Rideau; Montage Condoes; Deevy’s Homestead

David Toscano president 1962

WND

Two-storey singles; bungalows; super-semis; single-family homes

HighGate in Carleton Place; Richmond Gate

WND

*1: Ontario possessions only. 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 Contracts The following contains information about recent contracts, standing offers and supply arrangements awarded to local firms. CGI Information Systems and Management Consultants Inc. 1410 Blair Pl. Description: Application development and database management Buyer: Office of Infrastructure

Canada $7,910,000 Notra Inc. 2725 Queensview Dr. Description: Unexploded explosive ordnance removal Buyer: PWGSC $7,125,000 ADGA Group Consultants Inc. 110 Argyle Ave. Description: Informatics

People on the move Kinaxis has announced that Robert Courteau is joining its board of directors. Mr. Courteau brings more than 25 years’ experience as a senior executive with major companies. Currently, Mr. Courteau serves as CEO of Altus Group, a leading provider of independent advisory services, software and data solutions to the global commercial real estate industry. Before that, Mr. Courteau was a corporate executive with SAP AG, holding positions such as president, North America and global chief operating officer. Solacom Technologies has appointed Bruce Lazenby to its board of directors. Mr. Lazenby joins the board with more than 30 years of experience in leadership, senior management and growth of technology companies. Prior to joining Solacom, he served as the president and CEO of Invest Ottawa. He’s currently the head of business development at the Regional Group. LeoNovus has appointed David Chow to its board of directors. Additionally, Michael Gaffney was voted in as chair of the board of directors and also appointed as chief executive officer. Mr. Gaffney is an entrepreneur and former CEO of In-Touch Insight Systems. Mr. Chow is president and chief financial officer of Stoneworks Technologies, an Ottawa-based systems integration and value-added reseller company.

Boris Teksler has been named president, CEO and a member of the board of directors at Conversant Intellectual Property Management. Mr. Teksler is a 24-year Silicon Valley veteran with a career spanning research, product development and intellectual property commercialization. Most recently he was the CEO of Unwired Planet. Greg Graham has been appointed chief operating officer for Cardel Homes. Mr. Graham has been leading the company’s Ottawa division as regional president for the past 10 years. His achievements include the acquisition and development of several subdivisions, the successful purchase and control of over 4,000 units of single- and multi-family development lands and multiple awards from the Ottawa Home Builders’ Association, including Builder of the Year accolades.

Hats off 360pi was recognized by RIS Software LeaderBoard for the fourth year in a row, with 17 top-10 rankings, including three No. 1 rankings by tier-one retailers and recognition as a leader in technology innovation. The RIS LeaderBoard 2016 is an industry ranking of retail technology software vendors. Shopify has been recognized as Canada’s best place to work for 2017 by Glassdoor, with a 4.5 out of 5 rating. Ratings are based on the input of employees who voluntarily provide anonymous feedback on their job, work environment and employer. Glassdoor is a jobs and recruiting marketplace. Ranya Tantawy of KPMG Canada was named to the Chartered Professional Accountants’ National Honour Roll as one of the top writers in the country of CPA’s Common Final Examination. Thermal Energy International was named the best energy efficiency solutions supplier and received the award for excellence in clean-tech implementation at Corporate Vision’s 2016 Small Business Awards.

ADRM Technology Consulting Group Corp. and Randstad Interim Inc. in joint venture 1052 St. Laurent Blvd. Description: Informatics professional services Buyer: Indigenous and Northern Affairs Canada $3,426,140 Stantec Consulting Ltd. 1331 Clyde Ave. Description: Gordon Lakes site supervision Buyer: PWGSC $3,233,736 ADGA Group Consultants Inc. 110 Argyle Ave. Description: EC IT professional services Buyer: Office of the Chief Electoral Officer $2,833,002

Johnson Controls L.P. 30 Edgewater St. Description: Chillers and turbines, preventive maintenance Buyer: PWGSC $2,806,571

Advanced Chippewa Technologies Inc. 802 Nesbitt Pl. Description: ADP software Buyer: Canada Border Services Agency $1,999,999

J.P. Gravel Construction Inc. 5440 Canotek Rd. Description: Renovate the ground floor, east and west wing at M-58 Buyer: National Research Council Canada $2,232,947

ADGA Group Consultants Inc. 110 Argyle Ave. Description: Informatics professional services Buyer: Indigenous and Northern Affairs Canada $1,834,469

Itex Inc. 555 Legget Dr. Description: Secure KVM switches and peripherals for DND Buyer: Shared Services Canada $2,006,275 Public History Inc. 270 Albert St. Description: Research services pertaining to Indian residential schools – open – standing offer agreements Buyer: Indigenous and Northern Affairs Canada $2,000,000

ADGA Group Consultants Inc. 110 Argyle Ave. Description: IT professional services Buyer: Indigenous and Northern Affairs Canada $1,692,353 S.i. Systems Ltd. 170 Laurier Ave. W. Description: Informatics professional services Buyer: Indigenous and Northern Affairs Canada $1,384,653

25 ANNUAL

making cold days warmer

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SILVER SPONSORS

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Vince LaPietra has joined Peak Sales Recruiting as director of sales. Mr. LaPietra, who has more than 20 years of experience in sales leadership, was previously North American sales director at AVG Technologies.

S.i. Systems Ltd. 170 Laurier Ave. W. Description: Informatics professional services Buyer: Indigenous and Northern Affairs Canada $4,111,368

Coradix Technology Consulting Ltd. 151 Slater St. Description: EC IT professional services Buyer: Office of the Chief Electoral Officer $3,462,558

MONDAY, JANUARY 2, 2017

Members of the Ottawa Real Estate Board elected a new board of directors for the upcoming year. The new executive will be comprised of 2017 president Rick Eisert, past-president Shane Silva, president-elect Ralph Shaw and vice-president Dwight Delahunt.

professional services Buyer: Indigenous and Northern Affairs Canada $6,167,052

IT’S HERE!

Ottawa’s 2016 Buying Guide VIEW ONLINE AT bit.ly/2BOL2016 BUY ONLINE AT bit.ly/BUYBOL2016

Ottawa-Gatineau guide to corporate event planning NOW AVAILABLE AT ALL OTTAWA BUSINESS JOURNAL DISTRIBUTION OUTLETS OR ONLINE AT bit.ly/MITC2016

MEETING Ottawa-Gatineau’s guide to corporate event planning

in the Capital

A supplement to

April 25, 2016 • $5

Canada’s

BIG YEAR

WHAT EVENT PLANNERS NEED TO KNOW ABOUT THE NATION’S 150TH ANNIVERSARY

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THE HUMAN RESOURCE PROFESSIONALS ASSOCIATION OTTAWA CHAPTER PUBLICATION

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HR MONDAY, JANUARY 2, 2017

UPDATE HR LESSONS FROM THE KITCHEN: INSIDE FRASER CAFE ALIGNING HR STRATEGIES LEVERAGING DISRUPTIVE TALENT

Never saying farewell

Managing the reality of employee turnover

OTTAWA BUSINESS JOURNAL

VOLUME 20 • ISSUE 2 • NOVEMBER 2016

FALL 2016 EDITION NOW AVAILABLE AT ALL OTTAWA BUSINESS JOURNAL DISTRIBUTION OUTLETS OR ONLINE AT bit.ly/HRUPDATE2016FALL

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