Varing Magazine 2022 - The Future of Our Cities

2022 H O M E L I F E A D VA N TA G E R E A LT Y (C E N T R A L VA L L E Y ) LT D.

THE TUNE OF DEVELOPMENT

A MISSION FOR THE FUTURE

CEO of Landcor Data Corp., Jeff Tisdale, reflects on the everevolving scene of transit in BC.

How the City of Mission is planning and preparing for rapid growth in the near future.

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PG 22

NEW PATHWAYS TO BET TER COMMUNITIES

GROWING WITHIN THE BOUNDARY

Michael von Hausen shares his suggestions for future communities.

Mayor Stewart of Coquitlam shares how the City strives to balance key concerns.

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PG 34

DEVELOPING OPPORTUNIT Y

THE PSYCHOLOGY OF INVESTING

Diane Delves of Quantum Properties shares what makes Quantum unique.

A look at the ways our thoughts can actually impact our investment decision making.

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PG 48

"Greatness is not a measure of how great you are but how great others came to be because of you."

— CUS D’AMATO

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LET TER FROM JOE

A letter from our visionary Joe Varing sharing his reflections and thoughts on an unexpected year.

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MARKET REVIEW

Find out how the Fraser Valley real estate market shifted in response to the state of global affairs.

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THE TUNE OF DEVELOPMENT

CEO of Landcor Data Corp., Jeff Tisdale, reflects on the ever-evolving scene of transit in BC.

BUILDING A L ASTING PORTFOLIO

Helpful insight to building a diversified real estate portfolio.

VARING MAGAZINE 2022 ISSUE Publisher + Art Director Gabriella Denizot gabriella@varinggroup.com Editor Joel Love

Contributors Joe Varing Jeff Tisdale Dan Sommer Michael von Hausen Mayor Richard Stewart Rick Gendemann Diane M. Delves Aaron Duhra Jasneet Varing

Printed by Glenmore Printers, Richmond BC Contents ©2022, Varing Marketing Group

Varing Marketing Group HomeLife Advantage Realty (Central Valley) Ltd. #360-3033 Immel St. Abbotsford, BC V2S 6S2 604.565.3478 WWW.WESELLDIRT.CA

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A MISSION FOR THE FUTURE

How the City of Mission is planning and preparing for rapid growth in the near future.

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NEW PATHWAYS TO BET TER COMMUNITIES

Michael von Hausen FCIP shares his suggestions for future communities

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GROWING WITHIN THE BOUNDARY

Mayor Stewart of Coquitlam shares how the City strives to balance key concerns in a compact urban region.

HOW TO TAKE YOUR FAMILY BUSINESS TO THE NEXT LEVEL

Rick Gendemann of Manning Elliott accountants gives key insight on taking family business seriously.

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THE PSYCHOLOGY OF INVESTING

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DEVELOPING OPPORTUNIT Y

As an experienced and innovative developer, Diane Delves of Quantum Properties shares what makes Quantum unique.

A look at the ways our thoughts can actually impact our investment decision making.

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ALTERNATIVE FINANCING YOU CAN COUNT ON

Aaron Duhra of PHL Capital shares their history and unique ways to look at financing development.

UNLEASH YOUR POTENTIAL

Insight into ways we can live our life to its fullest potential.

A LETTER FROM JOE 2021 – we thank you for your optimism. Many businesses have persevered and fully re-opened; many people have adopted the flexibility of working from the office and from home; many local not-for-profits have continued to step up and push forward to provide essential services to those in need. In short, we witnessed the world make a collective pivot to a new form of normalcy. We have also seen rippling effects to supply chain management all over the world – reminding us again of how connected of a world we live in.

Times like this can test our spirit, but at Varing, we remain grateful, grounded and relentless in our pursuit of excellence to serve our clients for the greater good of our communities. More than ever before, we are incredibly proud of where we live, work and play. We’ve come to the realization that balance comes from within.

Once we anchor ourselves, all else continues to fall into place like clockwork. Our clients, our communities and our families have stepped forward and faced the challenges of the last 2 years with hope and confidence. Much of our confidence stems from our unwavering belief that the future is bright here in British Columbia.

Mother nature may have tested our spirits, but our resiliency as a Province made headlines around the world. The Lower Mainland continues to be a magnet of opportunity for investment.

Dirt is more valuable than ever – and in 2022, we pledge to stand with our clients as they continue to develop their real estate portfolios in the “dirt” asset class. The best asset class to own, bar none.

We are all well aware of the impacts of inflation in all sectors of the economy – it is no different in our sandbox. As always, we hear conjecture

surrounding the sustainability of this current market climb and the potential pressure for government intervention. What we know is that many of our clients who are in the real estate development space are ready to work with municipalities, realtors, lenders, contractors and most importantly, the consumers to create sustainable living spaces for those who desire to live in the Lower Mainland. We have the utmost confidence that cities will step up and lean in to help build our communities and create awesome spaces for our future generations. Let’s think a hundred years out.

At Varing, we are all in to shape the future of our cities – working with landowners and developers alike. So, let’s expect excellence from those around us and let’s believe and hold dear to our hearts what we are capable of.

Remember, the truth about life is that it all goes by real quick, and although you can't buy happiness, you can buy dirt!

Live well and let’s go for it, Joe Varing

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PEACE AND SERENITY ON THE EARTH.

The Breitling Cinema Squad Charlize Theron Brad Pitt Adam Driver

LAND

PREMIER

AIR

SEA

#SQUADONAMISSION

Every great community starts with planners.

Learn more: www.mcelhanney.com/services/planning/ Engineering | Geomatics | Geospatial | Planning | Environmental | Landscape Architecture

MARKET MARKET REVIEW 2021 marked another year surrounding the presence of Covid-19. With a turbulent economy and unprecedented circumstances, many questioned how much longer the Greater Vancouver real estate market could remain strong. After the drop in activity and volume in mid 2020, we have since seen a continued rise in sales. As BC pushed its residents to get vaccinated and promoted return to work conditions, many saw their financial conditions improve and a brighter future ahead. However, with new variants of the Virus such as the Delta variant and most recently the Omicron variant, lock down and restrictions are still a threat to the economy and people’s livelihood. Despite these factors and concerns, the prices across Greater Vancouver have risen quarter after quarter. At the core is the discrepancy between supply and demand. Total active listings in 2021 entered the lowest amount ever. In 2022, we expect this to remain as the primary driver of the market. The economy is forecasted to continue to recover for the most part with further recovery in employment levels. With a growing economy and inflation, a rise in interest rates is highly likely in 2022. Low mortgage rates were one of the factors for the rapid rise in demand, but the main issue remains the lack of supply. The municipalities, Agriculture Land Commission, and Metro Vancouver will need to come together to revisit their zoning and planning policies to allow for greater density and streamline development approval processes for the success of our real estate market.

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AREAS OF INTEREST

Locations that we expect to see the most growth this year.

BURKE MOUNTAIN, COQUITLAM Coquitlam has flourished with new developments and has sparked the interest of various developers. As downtown Coquitlam becomes saturated, the city has positioned its northern regions as master communities to support the growth. With access to both the Skytrain and the West Coast Express, rapid transit is a core factor for the growth.

Northeast Coquitlam, referred to as Burke Mountain, has seen various townhome projects from developers such as Mosaic and Polygon. Despite the difficult terrain and creeks at Burke Mountain, strategic planning from the city has aided the success of this community. As developers and investors look for what’s next, they will be pleased to find Northwest Burke as a great option with neighbourhood plans being implemented. Sitting at the edge of Westwood Plateau and Burke Mountain, both of which have already seen development, Northwest Burke positions itself as a natural path of development and riverside living.

DOWNTOWN CORE, CITY OF LANGLEY With the Skytrain expansion from Surrey to Langley securing federal funding, the City of Langley has further gained traction from developers. The city spans 10.22 square km and consists of little to no vacant land so naturally, the only way to develop is to build up. In July of 2021, the revised Official Community Plan (OCP) received a 3rd reading from City Council and now awaits the final approval from Metro Vancouver. As the City pushes for higher density, certain zones will allow for up to 5.5. FAR and 15 storeys after density bonuses. The City is reshaping its community around a set of guiding principles: affordable housing, connected city, safe & inclusive, jobs, and climate change. The OCP will harvest a city that supports growth and nourishes a vibrant community.

AREAS OF INTEREST

continued

CEDAR VALLEY, MISSION Housing affordability is an increasing concern across the Fraser Valley, as Abbotsford and Mission home prices have only gone up across both single-family and townhomes.

Mission has acknowledged this reality and hopes to address it through several new master plan neighbourhoods. Cedar Valley has been structured into 4 phases with Phase 1 already being developed. As such, Cedar Valley offers a more immediate solution to housing concerns with sites ready for development. The City has voiced its commitment to ensure land is designated for attached and multi-family residences. We expect many new developers to target Cedar Valley for their projects in the coming years.

ANNIEDALE–TYNEHEAD, SURREY Surrey continues to plan for future growth and development. Tynehead's current rural acreage lots and agricultural properties will soon be characterized as urban development land and the future home of up to 25,000 residents. 1,008 acres of land with easy access to Highway 1 and 96 Avenue will see tremendous growth in the years to come.

The vision for this NCP is a complete community with commercial nodes, employment lands, a mix of residential uses & densities, and community amenities such as schools, parks, pathways and natural areas. With numerous active development applications, we will begin to see this area thrive within the next few years.

STRENGTH IN NUMBERS

A recap of the Lower Mainland's Real Estate Market in 2021

$2.5B TOTAL LAND DOLLAR AMOUNT IN 2021

$98.6M LARGEST LAND SALE PRICE

410

TOTAL LAND SALES COMPLETED IN 2021

1,312 TOTAL LAND ACRES SOLD IN 2021

98.54AC LARGEST LAND SALE ACRES

Focus cities, Langley, Surrey, Abbotsford, Mission, Delta, White Rock, Maple Ridge.

Data provided by Commercial Edge. Although the data shown above is accurate to the best of our knowledge, we cannot guarantee the accuracy of the data provided.

$5.88M AVERAGE LAND SALE PRICE

BUILDING A LASTING PORTFOLIO Written by Varing Marketing Group

Considerations when forming a portfolio Under the subsector of real estate investments lies an array of options and decisions that one must make.

Each investor will have their own objective guiding their investment decisions and markets of choice. A real estate portfolio is simply some combination of different real estate investments, typically aimed to fulfil a particular objective.

Real estate investment types typically fall under one of the following categories: 1.

Rental Income Properties • Retail • Office • Industrial • Residential

2.

Shares of Real Estate Investment Trusts

3.

Raw or Development Land

Different property types and markets will carry varying levels and types of risks. At a portfolio level, diversification considerations are vital for reducing risk and increasing expected returns. Including properties in different sectors can help reduce macroeconomic risks that one sector may face. Additionally, combining land into an income portfolio and vice versa can offer further diversification benefits.

As with most investments, returns come in two main forms: income returns and capital gains. Take a rental apartment building for example. The return generated today from that investment is the rent minus expenses and debt services.

When you sell that asset 10 years down the road, the difference between the original purchase price and sale price minus debt servicing is your capital gains return.

It is crucial to note that both types of returns are treated differently for tax purposes.

With land, assuming it is just raw dirt and has no income cash flow, the return depends on capital gain once you

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Land as a possible hedge against inflation

decide to sell. While this may sound daunting, it may not necessarily make land any less favourable than income properties. Hence, the recent rush to include land in a real estate investment portfolio.

Real estate investment in specific land can be a great way of protecting oneself against inflation and devaluing of cash. The term “inflation hedge” refers to attempts to invest in assets that will have an increase in value during the inflationary period and ideally exceed the rate of inflation. Dr. Wilson at the University of Saskatchewan created the two graphs below as part of his study:

Cumulative Inflation & Housing Price Index 60% 50% 40% 30% 20% 10% 0%

‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10

Introduce concept of inflation and time value of money The real return of any investment is moderated by the rate of inflation. Inflation is defined as the general rise in price level within an economy, therefore making your cash less valuable. Following this is the concept “Time Value of Money”. Simply put, you can buy more today with $100 than what you could in 100 years with the same $100.

When applied to investing, it creates a need to discount income and return in the future to today’s value. Then comes the question – is it better to have some return every year for the next 5 years or a larger return in year 5 but no return through years 1 to 4?

Well, it depends on how much the said returns are.

Take the simplified example below: •

Option A: $20 return annually for 5 years

•

Option B: Only $100 return in year 5

For simplicity, assume inflation is 2% and there is no other risk.

The total of Option A return is actually $94.27 while Option B's actual return is $90.57. Clearly, one should go with Option A. However, real estate values, particularly with land, tend to increase dramatically. So, imagine if the Option B return was $150 in year 5 still with no returns through years 1 to 4. Now the actual return of Option B is $135.85.

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‘12

∆ New Price Housing Index

‘13

‘14

‘15

‘16

‘17

‘18

‘19

‘20

∆ Inflation

Statista (2021) and Statistics Canada (2021b)

Cumulative Inflation & Farmland Value Change 180% 160% 140% 120% 100% 80% 60% 40% 20% 0%

‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ∆ Farmland Value

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‘12

‘13

‘14

‘15

‘16

‘17

∆ Inflation

Statista (2021), Farm Credit Canada (2019), and Farm Credit Canada (2020)

What may be surprising to some is that farmland value outpaced inflation even more than residential housing. This clearly illustrates the attraction of investing in land due to the greater expected upside.

Ending remarks One possible strategy an investor may employ to combine land and income in their portfolio is to acquire properties in different sectors that have positive cash flows and reinvest a portion of that cash flow into development land. This has the potential to increase both diversification benefits and the expected return.  CHECK OUT THE QUESTION GUIDE ON THE NEXT PAGE

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Questions To Ask When Buying Vacant Land 1. What is allowed to be built on it?

• This will depend on the zoning, community plans, and future plans.

2. What can I actually build?

• Just because something is allowed does not make it feasible. The area might have too many slopes or creeks, limiting the development potential.

3. Is there demand for what someone could build?

• Some property times are not ideal for certain communities. Looking at the overall community and tenant consideration can give insight to this question.

4. How much will the debt payments cost?

• Since there is likely no income, how do you plan on making the debt payments?

5. Consider different scenarios because things don’t always go according to plans.

6. Finally, ask why is the land vacant?

• Maybe it is a great opportunity with development potential in the long run.

• But asking this question can bring up problems with the land that may not be initially apparent; such as soil conditions.

by Jeff Tisda le

// CEO of La ndcor Data Corp.

 We built this city—well, sort of…

It might not be a city built on Rock and Roll, but it’ll be a region that’s built on transit.

The Fraser Highway Skytrain Extension (FHSE) project, from King George to Langley City may only be an extension of 16 km of track, but its’ impact on supporting regional growth will be far more widespread. The opportunity to tackle affordability and diversity, from a housing perspective happens once in a generation. Expansion of transit should enable more walkable communities with less reliance on the car – which may ultimately lead to better land use planning that maximizes the scarce commodity of dirt!

Seeing the transformative prospect ahead, various communities that are intersected by the line are actively updating their community plans, with consultation occurring throughout 2021 and into 2022. To continue with a twist to our Starship song, It’s definitely not another Sunday in a tired old street!

Speaking of tired old streets, the revitalization of the Fraser Highway corridor with the introduction of 8 new stations along the FHSE, coupled with the Metro 2050 Regional Growth Strategy, will help the region prosper by focusing on five key objectives:

1. CREATE A COMPACT URBAN AREA 2. SUPPORT A SUSTAINABLE ECONOMY 3. PROTECT THE ENVIRONMENT AND RESPOND TO CLIMATE CHANGE AND NATURAL HAZARDS 4. PROVIDE DIVERSE AND AFFORDABLE HOUSING CHOICES 5. SUPPORT SUSTAINABLE TRANSPORTATION CHOICES These five key principles will be the template that guides the neighbouring municipalities and by extension, the various neighbourhoods as they plan for transformative growth along the FHSE. If history serves as a handbook for managing future development, each station can be looked upon as micro cores from which growth will emanate out. Each micro core currently has its own distinct housing and commercial mix which will ultimately determine future real estate mix and conversion strategy.

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SURREY-LANGLEY SKYTRAIN CORRIDOR STATION CORE SIMULATION

To help visualize these future micro cores, we’ve created station enclaves (grouped by color) to better display the current make up and for you, the reader, to ultimately determine the opportunities.

Interestingly, between the 166th and 184th Street stations the FHSE rider will be passing through a large portion of ALR lands which intersect Fraser Highway and Highway 15. These lands, while attractive to the golfers, walkers, bird watchers – basically anyone who looks to enjoy the outdoors “in the city”–, will most likely be outside of the scope of densification.

As we turn our focus back to the planned developable lands, we need to understand what the current mix is around these stations. For this arbitrary analysis, we’ve selected a 500m buffer along either side of the Skytrain line. This benchmark property mix will be important to be mindful of, given the key projections along the lines of (a) population (b) dwelling units and (c) employment as it relates to the South of Fraser/ East region of the Metro 2050 strategy document.

MAP CREDIT: Elexis Harrison, Landcor

PROPERTY MIX (500m buffer around each station)

Station:

140 th

152 nd

SINGLE-FAMILY

133

1,480

414

901

1,028

752

395

14

ATTACHED

148

18

2,563

862

1,365

967

458

124

CONDO

860

18

583

­—

—

582

926

1,592

PURPOSE BUILT RENTAL

160 th

166 th

1

184 th

190 th

196 th

203 rd

1

6 SOURCE: BC Assessment

Clearly the current residential property mix, with the overweighting of SFD property types, is not a viable solution to support this level of sustained long-term growth. The aforementioned 5-point strategy put forward within the Metro 2050 planning document should enable better collaboration to establish a unified vision for the key stakeholders in the region. To put the South of Fraser East population growth projections in a broader context, the Metro region is calling for 3.8 million residents by 2050, with the need for 500,000 new homes (appx 17,000 annually).

KEY PROJECTIONS 2020 TO 2050: SOUTH OF FRASER EAST (Surrey, Langley City, Langley Township, & White Rock)

2020

2030

2040

2050

POPULATION

782,500

939,200

1.077,300

1,185,100

DWELLING UNITS

266,900

332,300

395,200

441,000

EMPLOYMENT

309,500

372,900

426,600

465,200

SOURCE: Metro Vancouver 2050 population growth forecast by sub-region (Metro Vancouver Regional District) From a Metro Vancouver housing mix perspective, the future is multifamily. The plan is that over the next 30 years, the new housing mix will evolve to represent 50% condo development, 43% attached/townhouse, with the remainder being traditional single-family home. In fact, Metro is anticipating that the SFD stock will begin to decline in 2040, after flatlining for much of the 2030’s.

Further, the recent PWC study, Emerging Trends in Real Estate 2022, highlighted Vancouver (city and region) as a Market to Watch, citing “…the Vancouver Region is focusing on opportunities to build transit-orientated communities as it continues to pursue transit expansion plans through projects like Surrey-Langley Skytrain extension…”. In addition, as Canada continues to slowly move to ‘normal’ post pandemic conditions, the boost from immigration will continue with over 400,000 new permanent residents added in 2021 and further increases planned in 2022 and 23. These reports, with an emphasis on population growth, indicate the need for a long term, planned regional growth strategy.

STATION IN FOCUS: 152ND STREET Creating a Compact Urban Area & Providing Diverse and Affordable Housing Choices As the map below illustrates, the predominant housing type around the 152nd street station is single family and over the long term, an area that would appear to be a candidate for densification – or at least a better mix of housing types.

SURREY-LANGLEY SKYTRAIN CORRIDOR RESIDENTIAL PROPERTIES

A quick snapshot of the 500-meter buffer area around the proposed 152nd Street station illustrates the following insights on the current housing stock, which is predominately SFD: While the Metrotown station is often referenced as an example of densification around a SkyTrain station, a new case is underway near the 160th station on the FHSE. The Bucci Investment Corp. have presented plans to build three towers on 2 lots (appx 5 acres) and add just over 1,300 homes as well as 87,000 sq ft of new commercial development.

MAP CREDIT: Elexis Harrison, Landcor

2011

2021

NUMBER OF UNITS

1,463

1,480

NUMBER OF SALES

85

86

APPROXIMATE AGE OF IMPROVEMENTS

43

37 SOURCE: BC Assessment

HOUSING FOR MANY The Opportunity in Langley to Create Better Affordability and Housing Access The City of Langley will soon be home to two stations (196th & 203rd) on the FHSE line, which has prompted a review of the OCP based on the following revised Population, Employment and Households:

2019

2035

2050

28.085

35,481

41,438

12,855

16,901

20,125

20,087

22,185

POPULATION HOUSEHOLDS EMPLOYMENT

16,293

SOURCE: Metro Vancouver

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From a housing needs assessment, the City has further determined that by 2024, a further 1,354 housing units will need to come to market as follows: Unit Type

Current Inventory*

Net New Units Required

Estimated 2024 Inventory

1 BDRM

1,422

575

1,997

2 BDRM

4,606

442

5,048

3 BDRM

2,523

169

2,692

4+ BDRM

1,610

167

1,777

*SOURCE: MBC Assessment (City of Langley)

To achieve longer term housing goals and broader growth within the City, the OCP strategy has moved from the longheld belief of building out from the core to now adopting targeted strategies to address the need for more diverse housing. Consider a few of the tactics proposed: 1.

Set the highest densities, tallest buildings, and greatest mix of uses around 196th Street and 203rd Street Skytrain stations and along the Fraser Highway corridor.

2.

Townhomes along future frequent bus routes

3.

Five new neighbourhood commercial nodes for small scale shops and businesses to enhance walkability in residential neighbourhoods.

FINAL THOUGHTS A lot of good and positive change can come with a 22-minute ride along 16 km of new track. The opportunity to address many current housing needs, plus the ability to plan for sustained growth to 2050 allows for an attainable goal of affordable housing to meet a growing population’s needs. As mentioned, various community plans are currently in the consultation and discovery phase, and now is the time to add your voice to the conversation. Check with your local government on when the next round of discussions will take place.

As for the song “We Built this City” – wouldn’t it be great if we could change the lyrics to something like this...

 I'm looking out over that Port Mann Bridge, on another gorgeous sunny Saturday, and I'm (NOT) seein' that bumper-to-bumper traffic—thanks to FHSE!

From a land use capacity perspective, the City forecasts growth in the following unit/property types as means to achieve goals around housing diversity and affordability: Unit Type

Current Units

Total Capacity

CONDO

28.085

35,481

ATTACHED

12,855

16,901

DETACHED

16,293

20,087 SOURCE: Metro Vancouver

The City of Langley housing strategy also addresses policies to encourage Rental and Non-Market Housing in the form of: •

Density Bonuses

•

Incentives for Affordable Housing (i.e. parking reductions)

•

Aging in Place (smaller multi-unit residential and townhouses in walkable/ transit accessible locations)

•

Strata Conversion (prohibit rental buildings from being converted to strata unless Langley’s rental vacancy rate reaches/ exceeds 4% as determined by CMHC)

•

Facilitate the formation of innovative housing models such as co-op, specific need based (i.e. recent immigrants and/or special needs).

Jeff Tisdale / CEO of Landcor Data Corporation Established in 1988, Landcor Data Corporation is a leading provider of Financial Services and Real Estate solutions that enable fast, accurate and unbiased valuation and analysis of properties throughout the province of British Columbia. Landcor maintains the best source of real estate data and analytic tools available.

Visit Landcor.com or email jeff@landcor.com for more market trends and property analytics.

A Mission for the Future How the City of Mission is planning and preparing for rapid growth in the near future

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Dan Sommers is the Director of Development Services for the City of Mission.

With ample room to grow, the City of Mission is rapidly becoming one of the most desirable destinations for developers and their projects. While this growth is exciting and brings many possibilities, there are several challenges, considerations, and competing priorities to contend with. To see how Mission is preparing for this growth and the challenges associated with it, we sat down with Dan Sommer, the Director of Development Services for the City of Mission.

Thanks for taking the time to speak with us, Dan. You’ve had a unique journey compared to a typical planner. As the Director of Development Services for Mission, what would you say is the most important thing about your Job? Of course! I’m always glad to answer questions. For a bit of background on me, I started my career at the City of Prince George as a planner. After this brief period of time I moved to Mission and accepted a position as a planner.

Although I was working up north, I have lived most of my life in the Lower Mainland and in particular Vancouver. I also worked for the City of Surrey for a brief period as I thought I needed experience working for a bigger city. But before all that, I worked in the building industry for about 15 years as a ticketed carpenter with my own company in residential framing. Through this experience, I was able to gain a good understanding of the aspirations and challenges of the building and the development community.

For me, the most important element of my job is balancing competing interests. We've got an obligation to consider the interests from the community through the OCP, the city council and their constituents, and as well as from a business perspective. Builders, developers, and all the businesses, each with their own interests, and trying to advance the City's objectives and goals. I think that's probably the most challenging, most important, and most rewarding part of my job.

That sounds challenging! Along those lines, what is the biggest challenge when deciding what Mission needs regarding development?

market in our community. However, the City has noticed the gradual shift to higher density multi-family development such as townhomes, row homes, and apartment development; something that I never saw back when I first started in the early 2000s. One thing that the community continues to lack is viable employment lands. These are areas developed for industrial and commercial uses that generate "living-wage" jobs which will directly support the future growth of our local economy.

A lot of people leave the community on their daily commute to work elsewhere. If I'm not mistaken, I think the City’s tax assessment proportions are more than 90% residential where the remaining assessments are made up of commercial, industrial, and other uses. This imbalance is often referred to as a “bedroom community”. The important thing to note from these assessments, about 75% of the City's tax revenue comes from residential property tax.

The taxation revenue we collect from that group doesn't really pay for the ongoing maintenance needed to maintain our existing infrastructure, let alone, increasing demands for amenities and potential replacement costs of existing facilities and infrastructure. We're trying to shift to a healthier balance. I understand that some communities tax distribution is at 70/30 or 60/40 as it relates to the residential properties and employment properties. If you go to the council's goals and objectives, you'll see that one of their bold economic priorities is to diversify the municipality's tax base by aggressively targeting new business and investment opportunities but again that is a challenge.

That's a good question. Mission consists predominantly of single-family development which continues to be a strong

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That makes sense. With the additional homes, Mission will need more jobs. For homes, which residential development areas do you think will see the most growth in the next few years?

While I see increasing investment interest throughout the community, I do see reinvestment in Cedar Valley. We now have some of the bigger development companies looking in this neighbourhood area to purchase large parcels for development. Although the area has been planned under the Cedar Valley Comprehensive Development since 1996, the Plan has recently been updated resulting in the Cedar Valley Local Area Plan. As a result we're seeing developers coming in with proposals that match the City's plans for land use and densities, road and lot configurations as well as infrastructure servicing plans. If you were to come in today to develop in Cedar Valley, staff would be able to tell you with a high degree of confidence what would be required for servicing, road developments, water supply, sanitary, drainage, and other key considerations for development.

As for the Waterfront, it’s a similar situation. We've had many concepts developed for the Waterfront over the past 20 years, but they've never really gotten off the ground. For this reason, a different approach was needed for the Waterfront.

Staff looked at what really matters to the development community to bring about the necessary certainty and investment need to initiate land development. With a realistic and comprehensive plan to guide them, a developer can make an informed decision to invest in the community in a way that works for everyone. We've got incredible investment opportunities in this area. Once planning of this area is complete, I’m certain we’ll see significant investment and growth for the Waterfront.

Sounds like growth is happening in multiple areas then!

Can you provide a brief update on the Silverdale planning process? What are the next steps and what kind of timeline do you anticipate?

Absolutely. In the CNP, two phases of the planning process have already been completed. Right now the City is in phase three, which involves the selection of a preferred land-use option. That option for land use and infrastructure is being fine-tuned with all the technical deliverables related to water, sanitation, drainage, and so forth. There has also been significant work completed on a road network plan, plans for parks and trails, environmental protection, and traffic impact assessments. They're really moving along quite nicely.

Once those items have been considered, staff and the consultants will have the preferred neighbourhood plan presented to council for authorization to proceed to the next phase, which involves a public open house. It is anticipated that this would be done sometime in early 2022.

Elsewhere in Mission, development planning is occurring in Southwest Mission and on the Waterfront. We're in phase three of the preferred plan for Southwest Mission. We've got a larger development company—Polygon—interested in this area and that's really driving things there. They’ve got the horsepower to make things happen once the plan for the first precinct is completed. Southwest Mission has been a topic of councils going back to the seventies. The 3,500 acre area has been considered for potential urban growth for many years, and it appears that we’re really starting to see things move there. Having significant land holdings in the area, Polygon is an important sponsor in the preparation of the Central Neighbourhood Precinct (CNP). Once completed, we anticipate that the CNP will evoke the same reaction as we are having in Cedar Valley.

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The next step would then be to finalize phase four where plan completion is targeted before the end of summer 2022, so that's when we'll likely see applications for development coming in. It’s all moving at a fast but steady pace. We are entering the public consultation phase soon, so we will gain a better understanding of how residents feel about this plan.

Things are moving quickly! Though a lot of growth is planned for Mission, affordability and constraint of residential supply has been an ongoing topic throughout the Lower Mainland and the Fraser Valley. Are there policies or discussions taking place in Mission to address this concern?

It's top of mind for Mission. You'll see this in the council's strategic goals and objectives for a livable and complete community. We've got an affordable housing strategy that's in its final stage of preparation and is scheduled to be presented to council in early 2022. It includes a series of objectives with key priorities that support residential development, particularly for affordable rental accommodation.

We also know that secondary suites are everywhere in Mission, but because many are unauthorized, they're not being managed as well as they could be from the City’s perspective. We know that these units fill a gap in housing needs and therefore any management program would certainly not look to displace people. At the same time though, we want people to be living in safe units that meet all safety and fire prevention standards while, at the same time, mitigating their impact on the surrounding neighbours.

In this regard, parking is a big issue. Staff often hear complaints that there is no parking in front of an owner’s house because the person next door has two suites in

their basement and happen to have four children of driving age living with them. A secondary suites program would also need to consider the impact on utility consumption like water, garbage and, recycling. In early 2022, you'll see the Affordable Housing Strategy presented to council.

We’ll be looking at these issues and the possible measures we could employ to address these issues.

Yeah, affordability has been an issue throughout the Lower Mainland so it’s good to hear that it’s a priority for Mission. You mentioned parking, so to continue that thought, could you comment on any transportation strategies that Mission is employing to accompany the new development projects?

For sure! From a transportation planning perspective, we've got Mission Mobility 2050, which is a transportation master plan. It includes a planning framework with key pillars that, in combination, support safe mobility, land use integration, and streets designed for people and changing technologies. The greater emphasis is on designing roadways as “complete streets” where more space is provided for pedestrians and cyclists to move about in a safe environment.

The transportation plan includes strategies to create multi-use paths, trails, and good connections between neighbourhoods. Planning in Southwest Mission and the Waterfront consider transportation a key component to a successful plan. With all the planned growth envisioned over the next decade, the City will need its public transit system to further support these new developments. We’re excited to see how everything continues to grow and come together and City staff will continue to work on plans that will help make Mission an even better place to live.  Visit engage.mission.ca to learn more about the City of Mission's current projects and for the latest updates.

All Images Sourced from: City of Mission

COQUITLAM

RECENTL Y SOLD O UT

MAPLE RIDGE

A Remarkable Past. An Exciting Future

To view more projects:

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Nordel Developments Ltd.’s journey began over 3 decades ago; a group of friends came together with a vision of building homes distinguished by superb quality and long-lasting value. They began constructing luxurious single-family homes and quickly garnered a reputation for uncompromised quality and meticulous attention to detail. Expanding to include multi-family townhomes, Nordel Developments Ltd. has since become one of the elite construction companies in the Lower Mainland, Alberta and Vancouver Island.

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MAKING SURREY AN OPPORTUNITY CITY

Anita Huberman

Chief Executive Officer

Indra Bhan

Chief Operating Officer

The Surrey Board of Trade attracts business to Surrey and supports business in Surrey.

We provide businesses and organizations with economic opportunity, workplace development and education, international trade, government advocacy, business connections and marketing.

Become a member. businessinsurrey.com

New Pathways to Better Communities

Written by Michael von Hausen FCIP, RPP, CSLA, LEED AP

The time is now. We are at a watershed moment at the intersection of a climate emergency, a world-wide health crisis, and the re-emergence of racial inclusion and social equity.

These are affecting each one of us personally. One or all of these are in our living rooms. They are not distant concepts but personal challenges.

I want to share with you seven real estate form-makers of the future, and then finish with two process essentials for business success that are necessary to build the next generation of great communities in the Fraser Valley.

Let’s first look at seven emerging trends that are reshaping our communities: 1. Climate Emergency. Climate change is here to stay, moving us toward Net-Zero Buildings and Level 4 in Energy Step Code.

Just weeks ago, I was on a net-zero city seminar, and it was estimated that a net-zero building cost 6 to 15 percent more than the standard. We must find ways to create incentives to reduce if not eliminate this barrier, otherwise it will be a dream for the rich not the common standard that brings increased comfort, health, and value to every home. Homeowners should then save up to 50 percent on energy the minute they step inside their new home.

2. Regulations Overhaul. We need an overhaul of development regulations including Official Community Plans and zoning bylaws to reshape cities and communities. There needs to be consistent standards between municipalities and more inclusive permissive mixed zones. I have already developed common zoning templates for four communities on Vancouver Island, so they share the basic zones and then customize to their individual needs. With recent cases in White Rock and elsewhere, there also needs to be more certainty in development regulations and permits to ensure that development rights are not removed too late in the process.

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 Density done well is the way of the future

3. Parking No More. The City of Edmonton recently eliminated parking requirements in their downtown. Residual parking in existing structures (this is the trend) needs to be redesigned to have multiple uses. A good friend of mine, vice-president of a large development company, doesn’t even own a car.

Owners use their second car only 15 percent of the time when living in an apartment building. An apartment building in Ottawa recently was built with no parking at all. With increased density, decreased parking, and increased carshare, we can now design buildings for people, not cars.

4. Single-Family Homes No More.

Townhomes are the new single-family home. Did you realize that 40–50 percent of your buyers are singles! Who wants to sit on a lawn mower cutting a lawn that you don't use? Even eight years ago, I asked a senior executive of a major development company for a single-family case study for our Urban Development Institute real estate development course, and he said “we don’t do those anymore”. One community that I helped master plan – Garrison Crossing in Chilliwack, reversed the trend from 25/75 to 75/25 (ratio of multifamily to single-family homes) back in 2002! That is now the trend reinforced by Canada Mortgage and Housing Corporation (CMHC) statistics.

New Zealand has moved towards higher density requirements country-wide just a few months ago.

5. Compact Communities. Invisible density and density done well is the way to suburban regeneration. In 2005 my firm helped the Township of Langley complete the Willoughby Town Centre Plan in and helped the Township double the density in the area through a mix of housing as only 25 percent of the Township is developable. The City of Ottawa recently approved their new Official Plan that illustrates up to six units in a single-family looking home.

Right now, Vancouver allows outright three units on a lot – three times the Density. Seattle has a use-friendly guide that enables ADUs (Auxiliary Dwelling Units) and allows up to two units on Single-Family lots depending on their size. https://aduniverse-seattlecitygis.hub.arcgis.com/ 6. Affordability by Design. Diversity and choice of housing is part of housing affordability. We are moving towards a requirement of 15–30 percent non-market housing in each project of any magnitude. Replacement housing, missing middle housing, and seamless mixed-use are the ways of the future – building true “community”, not just “commodity”.

Essential amenities are part of the development equation.

Isolated towers or even three–six storey infill buildings must provide on-site or close amenities. They add value to the homes and the community.

7. First Nations First. First Nations are the largest landowners in British Columbia. First Nations come to the table with their own unique views in mind, which should be addressed separately from those of other communities. Care should be taken to actively consult with them and listen to their needs and concerns. Respect and acknowledgement, along with heartfelt sincerity and sharing, are at the core of building constructive understanding and relationships with First Nations.

Townhomes are the new Single-Family Home

GETTING TO THE NEXT GENERATION OF BETTER COMMUNITIES So how do we get to that next generation of thinking and processes in business and real estate development in the Fraser Valley?

First: We need to build a common commitment: Building TRUST through engagement/building partnerships early, often, and differently from the beginning.

Second: We need to understand 9 distinct characteristics to transformative change in real estate development, not just incremental change that ends up in the same old place: 1.

Combine three interacting elements: comprehensive due diligence, 3 engagement levels (#5 below), and efficient approvals

2.

Consider a third alternative from the beginning (another option besides yours and theirs)

3.

Create a dynamic interactive process that is driven by community support

4.

Shape specific rules of engagement that guide effective process

5.

Engage from the beginning with community, council, and staff

6.

Develop proactive community benefits

7.

Embrace agile thinking in this age of disruption

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People should be at the top of the pyramid, supported by policy and the economy in the approvals system.

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Michael von Hausen has developed and facilitates the sought after School of Development for the Urban Development Institute. He is adjunct professor at Simon Fraser University and Vancouver Island University and President of MVH Urban Planning & Design Inc., a global consulting firm with roots in Western Canada. Michael is launching a digital-first urban design and development certification program in 2022. Visit courses.greatcommunitiesinstitute.com to learn more.

— Michael’s book New Pathways to Approvals: Developing Better Communities Together is available at Amazon.ca or his website at mvhinc.com.

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A TRUSTED NAME IN LAND.

Looking to have a crane holding this if I can find the image

How the City of Coquitlam Strives to Balance Environmentalism, Sustainability, and Affordability in a Compact Urban Region.

How will Coquitlam continue to grow while maintaining a compact urban boundary? Is it possible for this growth to be sustainable and affordable while minimizing environmental impact? These are just two of the most pressing challenges faced by the City of Coquitlam and Metro Vancouver.

While many other cities have the space and land to continue their urban sprawl, Coquitlam is tasked with optimizing growth within an urban containment boundary by making efficient use of their existing and remaining land. Through speaking with Mayor Stewart, it is easy to see how the city aims to address these challenges and why Coquitlam remains one of the most desirable destinations for tenants, homeowners, and developers alike.

“Coquitlam has adopted Metro Vancouver’s Regional Growth Strategy, which envisions a compact urban region”, says Stewart, “Unlike so many other places in North America, where urban sprawl continues, this region has developed an urban containment boundary and then held it firm. Coquitlam is a strong supporter of that process as it creates a more sustainable region”.

In addition to sustainable growth, Mayor Stewart notes that this urban containment boundary is also necessary due to the terrain that

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developments, and townhouses as a way of reducing the land component to increase affordability and create more places to live while making sure that the region remains compact”.

These densified forms of housing will be prominent for the Austin Heights area, Burquitlam-Lougheed, Coquitlam City Centre, Maillardville, and Burke Mountain neighbourhoods, making them a key part of future growth throughout the city.

surrounds Coquitlam and the region. “The region has some restrictions based on physical geography”, states Stewart, “We can't go further west than the Pacific Ocean, the mountains to the north hem us in, and we also have agricultural land to the east and to the south of us”. With these types of terrain hemming Coquitlam in and limiting its potential for horizontal growth, the city must determine how to make the most of its existing land through vertical growth, efficient developments, and forward-thinking planning.

To ensure sustainable growth and affordable housing for Coquitlam, Stewart acknowledges the importance of residential densification and efficient land use. “We'll now see densification in many cases,” says Stewart, “This is because we, as a region, can no longer support the kind of housing that we lived in as kids”.

“As a child, I grew up on a quarter acre lot. It was $3,000 when my parents bought it. Now, a quarter acre lot is 1015 years wages and is no longer viable for a lot of people. So, we are looking at high-rises, common-corridor, multi-family

While these densified forms of housing undoubtedly offer advantages in terms of affordability, sustainability, and capacity for future population growth, they also reduce environmental impact by allowing residents to live more compactly and efficiently while utilising less resources and land.

It is well-known that Coquitlam is home to some of the best hiking trails, biking paths, natural environments, and scenic views in the Lower Mainland. It is no wonder then, that residents of Coquitlam wish to protect these natural elements that make the city so desirable and unique.

“People want to make sure we're embracing the environment and protecting the setting that drew people here in the first place”, says Stewart, “That is why our 2022 Business Plan includes, as key elements, the sustainability and the livability of our community. We've always worked to have our community be sustainable while being sensitive to the surrounding environment. We have a new Environmental Sustainability Plan that is guiding the way that we develop, including the development of Burke Mountain”.

In a further effort to reduce environmental impact, Coquitlam has always been looking for ways to reduce greenhouse gas emissions and reliance on cars. With many

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residents commuting to other areas of Metro Vancouver for work or school every day, public transit is an essential component for Coquitlam.

While buses certainly play an important role, SkyTrain is a crucial mode of transport for thousands of Coquitlam residents. Mayor Stewart cites the Evergreen expansion of the Millennium Line as one of the most important developments for efficient transportation and environmental sustainability.

“Decades ago, we knew that SkyTrain was a vital way for Coquitlam to be more environmentally sustainable”, says Stewart, “The rapid transit we always envisioned would go all the way to the western edge of the region at UBC. We envisioned the Millennium Line expansion into UBC as a Coquitlam line because it will carry thousands of our residents per day to a part of the region that is a destination for workers and students. For Coquitlam, SkyTrain’s Millennium Line was a game changer. We fought hard to get it to happen. Now, we're seeing a line that will go all the way to UBC come to fruition”.

SkyTrain in conjunction with the West Coast Express makes Coquitlam extremely accessible to workers, students, and visitors throughout the Lower Mainland. This accessibility is one of the driving forces behind Coquitlam being designated as a Regional City Centre within the Metro Vancouver Regional Growth Strategy. This positions it as a key urban centre North of Fraser River from a growth and economic development perspective. Coquitlam is strategically situated and supported by leading community infrastructure,

amenities, and services to attract talent and enable businesses growth. Stewart expands upon this plan, stating that “the City Centre Area Plan envisions central Coquitlam as a hub that will attract business groups that are trying to identify areas where their employees can live, work, and enjoy natural amenities”.

This combination of affordable housing, environmentally conscious development, exceptional transit, and the creation of a centralized mixed-used City Centre reveal how Coquitlam is continuing to grow within the urban containment boundary. While these space limitations would be crushing for some, Coquitlam is embracing these challenges and continues to be one of the most desirable areas in the Lower Mainland. As the city continues to grow, Stewart knows how important efficient land use will be for the future of Coquitlam and is committed to helping the city reach new heights.

“We need to be as efficient as possible with all of our land uses. Contemplate something like an artificial turf field, which is the high-density option for parks and rec use. It allows for nonstop games, dawn to dusk for the whole year.

A grass field, on the other hand, can only be used for a few games before you have to let it rest. Otherwise, it will turn to mud and it won’t be usable for anyone. So, you need to find ways to take the precious land supply and use it as efficiently as possible. We'll do that for industrial, we'll do it for office, and we'll do it for residential as well”. 

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HOW TO TAKE YOUR FAMILY BUSINESS TO THE NEXT LEVEL Written by Rick Gendemann, CPA, CA, Partner of Manning Elliott LLP Accountants and Business Advisors

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You have been operating your family business now for several years and you have been able to enjoy wonderful success to date.

To date, this success has been driven by your entrepreneurial spirit and leadership. You now find yourself facing a new stage in the life cycle of a successful family business. I am referring to that period of transition from entrepreneurial venture to a long-term, sustainable, and strategically directed business. This period of transition is critical to the continued success of the business, but it's often one that many family businesses never make.

As the business begins to mature and plateaus into a steady state, family business owners struggle to identify the next big idea or strategy. Owners often find themselves too focused on the operational issues of the business rather than looking at the long-term direction, and driving those initiatives needed to get the business there.

Many family managers are superb business operators, marketers, or manufacturers in the present, but they are relatively unversed in planning the future. The business may be operating well, but does it run the risk that stagnation may set in? That's where a family business advisory board (FBAB) can play a major role in moving a family business to the next level - by fostering planning to create strategies for future success and introducing sound strategic advice to continually move the business forward.

HOW CAN A FBAB ENHANCE YOUR FAMILY BUSINESS? As you will no doubt appreciate, the success you have enjoyed to date has likely been supported by not only your guidance and leadership, but also that of your management team. The key is how to continue increasing the range of management know-how for the business to support its future success.

Advisory board members are typically selected based on their detailed knowledge of the business or because of their specific knowledge and experience in the business operations, marketing, or financial performance and the industry in which the business operates. When looking for potential advisors for your business, focus on finding individuals who are well versed, experienced, and able to assist in evaluating business ideas and opportunities.

You should also consider their ability to assist you in developing the future succession and ownership transition program of the business. Their experience and their skills should provide a depth and range that greatly extends the current managerial capacity of the business.

Studies have shown that family businesses use their FBAB’s to fulfill multiple mandates. Most commonly, FBAB’s are used to assist in strategy-setting, as a sounding board for ideas, as mentors to extend the owners and other manager's skills and to suggest and assess new business development ideas.

ROLE OF A FBAB It is important to understand that an FBAB is not acting like a board of directors. An FBAB does not have the legal responsibilities and authority of a board of directors. Rather, they are an informal group of (primarily external) advisors chosen by the business owner to provide guidance and advice.

When establishing an advisory board for the first time, the members might consist of a CPA, a lawyer, the owner/ manager(s), an industry consultant or specialist, and possibly a family member or non-participating shareholder. As the business continues to evolve, the range of expertise needed may encompass changes to the specific make up of the board. This may include bringing on experienced business leaders who understand your specific business and industry and whom can help guide your business strategies.

Having a FBAB offers a flexible platform to access advice from advisors. Owners may choose to act on this advice as they feel appropriate. Further, as advisors are appointed, they can be laid off or replaced without a consenting vote of any sort being required as in the case of a formal board of directors.

Please be sure to exercise caution for personal characteristics that may come into play. Although it might be tempting to consider a well-regarded friend or colleague who knows the industry for a position in your FBAB, do they have sufficient personality to give you a totally independent view that may be in contrast to your own?

Compensation for advisory board members can be extremely variable in nature ranging from meeting only their actual expenses for the time and work they put in, to a reasonable retainer. It will be important to monitor any compensation arrangement you put in place to make sure it is commensurate with the value the members bring to your business success.

It is also important to recognize that business needs will change over time and you will need to adapt the board's makeup as circumstances change and necessitate different types of knowledge. Appointment to a FBAB should be for a predetermined period of time with the option of renewing the appointment.

GETTING ON BOARD WITH A FBAB FOR YOUR BUSINESS Although there is limited data demonstrating a direct link between advisory board activity and business growth indicators, there is a plenty of anecdotal evidence from surveys and business articles that growth-oriented family businesses find FBAB’s a key asset in enhancing their future success. Based on my experience and that of business owners I work with that have a FBAB, the following factors will contribute to ensuring an advisory board does add value to your business.

In selecting the individuals to appoint to the board, they should either: •

Have specific skills the business has identified as being necessary to achieve its goals (for instance in operations, marketing, technology), or

•

Have experience of a generalist nature (a business consultant or successful entrepreneur) to be able to offer advice or assess the viability of suggestions.

Having a group of independently minded experts can bring a significant advantage to your business. The challenge will be to seize the opportunity, utilize their talent, and ensure you don’t ignore their advice when given. An effective FBAB can be an invaluable resource to your business.

RETAIN CONTROL AND ENHANCE BUSINESS PERFORMANCE As your family business continues to grow and strengthen its position, it may neither need nor want a formal board including outside directors. However, there may come a time where the family may need more than informal business advice to keep it growing and remain competitive.

Establishing an active, effective outside advisory board that openly offers advice and mentoring can be the single greatest resource for a family business. Creating a FBAB for your business will allow you to retain control over the business and create a platform to continually enhance business performance going forward. 

Rick Gendemann, CPA, CA Partner with Manning Elliott LLP Rick has developed an extensive background providing accounting, tax, business advisory, estate and succession planning services for privately-held businesses. His practice focuses on businesses operating in real estate development, manufacturing and food processing, agribusiness, wholesale distribution and R & D industry sectors. Rick’s practise also includes a focus on delivering income tax consulting and tax planning services to owner-managed businesses and their shareholders.

Rick can be reached at (604) 557-5760 or rickg@manningelliott.com

The above content is believed to be accurate as of the date of posting. Canadian tax laws are complex and are subject to frequent changes. Professional tax advice should be sought before implementing any tax planning. Manning Elliott LLP cannot accept any liability for the tax consequences that may result from acting based on the information contained herein.

Accounting Assurance Business Advisory Estate Planning Transition Planning Tax “From the time the shovel hits the dirt, to the eventual sale, we’re with you every step of the way”

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As an experienced and innovative developer in British Columbia, Quantum Properties seeks to create homes that are a perfect fit for investors, tenants, and future owners alike.

With decades of experience in real estate, construction, appraisal, design, and sales, Quantum Properties is committed to providing quality investment properties and rental opportunities for all types of individuals and families. In speaking with Diane Delves, the President and CEO of Quantum Properties, it is easy to see what makes them unique as we learned about their values, plans for future developments, and exciting programs that are unlike anything else on the market.

While some developers are primarily focused on profit margins, Quantum directs their attention to quality, opportunity, and their commitments to the communities they build in. “We always try to do what's right even if it costs us money because we value our reputation and our commitment to the communities that we build in”, says Delves, “The biggest misconception is that people think all developers are just in it for the money, and that is not the case at all. Everybody that I know in the industry really has a passion for what we do. It's that desire to create homes for people, build great communities, and feel that satisfaction when you achieve it. Sure, we have

to make money or the banks don't finance our projects, but it's never all about the money”.

“In development, you need to have a vision that's about creating something that has value for people and families, not to make the most money. The money comes when you do it well”.

In addition to doing it well, Delves understands the importance of knowing the market and

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fulfilling demands. That is why Quantum is starting to focus on purpose-built rental buildings to support renters who are trying to find a home in an unstable rental market.

Delves recounted her experience with displaced tenants, stating, “we’ve had people calling us crying because they were being evicted from their condo. Their landlord had sold it and they couldn't find anywhere to rent because it's such a hard market. It’s so devastating for people to lose their home due to this instability”. By developing quality rental-focused properties, Quantum aims to give tenants a comfortable and stable place to call home.

While developing quality residential and commercial properties is a significant priority for Quantum Properties, they also strive to recognize and serve the needs of renters, investors, and future owners with their projects.

As condos become more prominent in major cities across BC, more families are raising children in these smaller spaces. Delves recognizes the challenges associated with this task, ensuring that condo developments feature large outdoor areas and dedicated play areas for young children.

“There's nothing worse than living in a small condo with a toddler”, says Delves, “you need somewhere for them to run around and scream. If families are going to have to raise their children in a condo, they need space for those children and it’s not just the four walls that they live in”. In addition to play areas and green space, Delves hopes to include daycare facilities in future developments to further enhance the living experience for growing families.

In addition to their several successful and unique developments, Quantum’s desire to promote stability and opportunity is easy to see through two unique programs: one for investors, and one for the tenants that live within these investment properties.

Below: Quantum Properties—A family business; Diane Delves photographed with her sons Markus (left) and Rob (right).

Guaranteed Rent Program While purchasing a rental property is a common type of investment, it is not without risk. Sometimes it can be difficult to find suitable tenants, leaving owners without rental income for a month or several months at a time.

To minimize risk and ensure peace of mind for investors, Quantum Properties offers their Guaranteed Rent Program. This unique program provides the following benefits for investors: •

Complete rental management by a licensed property manager.

•

Rent paid on time every month for 24 months, even if the unit is vacant.

•

No property management fees for 24 months.

•

No tenant placement/screening fees, advertising fees, or walkthrough inspection fees for 24 months.

•

Carefree rental ownership for 24 months that delivers unmatched peace of mind.

After 24 months, owners can then pay Quantum to continue managing their property or handle management themselves. This allows for flexibility based on the owner’s preferences, experience level, and goals. By providing the Guaranteed Rent Program, Quantum is creating stable rental properties for owners and tenants alike by drastically reducing the risk of lost rental revenue and displacement due to sold properties.

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“That's our driving force: helping people get into good homes.

That's doing our part and giving back where we can."

The Quantum Rewards Program As rent continues to increase, it is becoming increasingly difficult for buyers of any age to save up enough money for a down payment. That’s why Quantum Properties is proud to offer the Quantum Rewards Program for tenants in their developments. This unique program allows tenants to make the most of every rent payment. Participants will automatically have the equivalent of 15% of their rent payment tracked by Quantum and available for use toward the purchase of a new Quantum home, helping turn happy tenants into satisfied homeowners.

For example, if a tenant pays $1,500 per month for rent, they accumulate $225 of credit each month, and $2,700 per year. This credit can then be applied toward the purchase of any new Quantum home so long as it does not exceed 3% of the purchase price, making homeownership more feasible and attainable than ever.

Quantum is proud to offer this program because, while they know how difficult it can be to enter the current market, they know how beneficial it can be to own property.

“I strongly believe in homeownership”, says Delves, “I realize that it's not for everybody, but I really encourage homeownership because at the end of the day, it's one of the best financial decisions you can ever make. There are benefits other than financial too, such as the security and the pride in owning your own real estate. There's nothing better”. Through the Quantum Rewards Program, Delves hopes to help more tenants experience these benefits.

“That's our driving force: helping people get into good homes. That's doing our part and giving back where we can. We can't create world peace, but we can assist buyers and build some nice homes where families can live and grow, one building at a time”. 

Diane M. Delves | President and CEO Diane Delves has been the President of the Quantum Properties Group of Companies since its formation in 2000.

Quantum has developed residential and commercial properties throughout the Lower Mainland.

Diane was a real estate appraiser for many years and holds the Accredited Appraiser Canadian Institute, Professional Appraiser designations (AACI, P. App).

Diane has served on many government and industry boards and is currently a Vice President at Large of the Urban Development Institute, Pacific Region.

To learn more about Quantum Properties and to view their recent projects, visit quantumproperties.ca

Psychology of Investing in Real Estate Written by Varing Marketing Group

As an asset class, real estate has several unique characteristics that make it a complicated and imperfect market. Unlike the Stock or Bond market, real estate does not have a centralized marketplace for transactions and prices are highly fluid, creating asymmetry between market participants. Each property, whether commercial or residential, is valued individually and will vary between different buyers and sellers. Real estate assets are known to be highly illiquid as transactions take time and are costly, further adding variance to valuations. These are just some of the reasons that make real estate an imperfect market and allow for the formation of biases. This is particularly true in the residential real estate market as many buyers are less sophisticated and, due to the nature of finding a home, emotion and psychology play a more integral role.

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Perception of Risk Risk appetite and perception vary greatly amongst participants in a real estate deal. Due to the lack of a centralized marketplace, risk in real estate cannot be simplified to a measurable concept such as standard deviation. We know investments with greater risk demand higher expected returns, yet the framing effect can hinder our ability to stay true to this notion. When risk and return are not expressly framed together, people who claim to understand the risk/return principle still miss it.

Individuals often end up taking on more risk after past earnings, implying some overconfidence as we are prone to attributing successes to our skills but failures to bad luck or external variables. This phenomenon underpins rational decision making and risk analysis.

Sunk Costs and Disposition Effect When making investment decisions, one should not consider past costs that are no longer recoverable. Yet, most people have a hard time ignoring sunk costs. Take the following example: you buy a ticket for a hockey game but the day of the game, you are feeling ill. Will you still go? Many people will encompass the mindset “I already paid for it” and go. However, from a utility maximization approach, not going will yield higher utility as the ticket is a sunk cost.

A similar process can be applied to real estate.

There is a greater tendency to continue an endeavour once an investment in money and time has been made.

It is similar to pouring good money after bad. Investment decisions should be made based on future expected returns as of now, not based on previous unrecoverable costs.

As such, investors tend to sell winners too soon and hold onto losers for too long. This behaviour is partly driven due to pride and avoiding regrets. Unrealized losses don’t hurt as much while unrealized gains don’t feel as good as realized ones. When an investment drops in value, many people hold onto it with the false belief that prices may recover.

Making investors less cognitive to market indicators. Not only does this behaviour increase potential losses and limit opportunities for further gains, but it is also harmed by taxes on gains and not fully taking advantage of tax reduction

through losses. One of the reasons behind this effect is the cognitive dissonance caused by thinking we made a bad decision.

Cognitive Dissonance Cognitive dissonance is defined as the mental conflict or discomfort that arises from two conflicting beliefs, values, or attitudes. When any of the mentioned don’t align, people often resort to some level of re-framing the events or reality to better match their beliefs. Take the following example in real estate: you purchase a piece of land with the expectation of up zoning by this time next year, but now it is one year later and the zoning has not changed. This reality conflicts with your initial belief, leading to cognitive dissonance. One may re-frame their thoughts and focus on not buying a neighbouring lot that got down-zoned or attributing the event of not being up-zoned to a change in city council. While readjusting the success of past events may reduce psychological discomfort, it distorts reality and decision making.

Cognitive dissonance and regret are lowered when the outcome can be attributed less to one’s own skill and decision making. The COVID-19 pandemic is considered to be a fairly unexpected event. Therefore, when investment markets crashed, there was less cognitive dissonance. This effect is also seen for investments that are managed by others such as a mutual fund with an active fund manager. Losses can be blamed upon the manager, resulting in reduced cognitive dissonance.

Mental Accounting and Portfolio Allocation Once someone owns multiple assets, whether that be stocks, bonds, or real estate, decisions should be made at a portfolio level. Investors should be more concerned with portfolio returns and risks, yet people tend to think of investments in isolation and not together. Mental accounting leads investors to consider each investment as completely separate from their other investments, failing to consider how the various investments interact with one another and any correlations. When considering whether to buy or sell a property, one should take into account the other properties to make adequate portfolio allocations. One strategy to reduce risk can be holding assets that are negatively correlated to offer diversification benefits.

Real estate is subject to many psychological biases and investment decisions that involve a complex process.

By becoming more aware of some of our psychological processes and biases, we can work towards making more rational decisions. 

When your home becomes your office, cafe, gym, theatre, daycare, sports bar, bakery, craft studio, bike repair shop, yoga studio, doggie daycare, classroom, book club... we’ve got you covered.

Building homes for the 21st Century | zenterra.ca

The UDI Awards for Excellence celebrate the outstanding accomplishments of developers who had the vision to take our cities, neighbourhoods, and the people who live in them into the future.

We honour these top achievers whose projects have had a positive impact on our communities and the urban landscape.

The 2021 Award winners will be announced and honoured at UDI’s 50th Anniversary Celebration in February 2022.

udi.bc.ca/awards

Urban Development Institute – Pacific Region

*Award participants from 2018

Alternative Financing You Can Count On Written by Aaron Duhra, Sales Manager of PHL Capital The idea for PHL Capital began over a decade ago, when our founding partners, Steve Ponte and Parm Purewall, gained valuable experience as senior commercial lenders at a national financial institution. Throughout their banking careers, they consistently met individuals and businesses that required credit but could not meet conventional bank lending criteria. They understood that many of these applicants were of low credit risk and deserved an opportunity.

SEEING A COMMUNITY NEED…AND AN OPPORTUNITY The idea of PHL materialized as the founding partners saw the need for a different type of credit provider. Very few Mortgage Investment Companies (MICs) originate from understanding the lending side of the business—which is the basis of their experience. They truly enjoyed getting to know their clients and seeing opportunities beyond the comfort of rigid national bank guidelines. They also knew their mortgage and real estate experience would give them an advantage in assessing risk and understanding hidden opportunities.

BUILT ON A FORMULA FOR SUCCESS It was a formula for success. Today, PHL Capital has grown from a small fund into one of British Columbia’s leading MICs with over $500M in assets under management.

Through the company’s proven and established underwriting process, PHL has provided exceptional returns to investors while providing a much needed solution for borrowers.

IT’S ABOUT PEOPLE AND THEIR FUTURES Most importantly, PHL enjoys bringing investors and borrowers together to fuel the economic growth in communities across British Columbia. At the same time, they’re helping companies and individuals build the future's wealth.

What inspires the team at PHL the most is bringing people together in win-win situations. PHL takes pride in building strong relationships and seeing how they help people achieve their goals.

LAND DEVELOPMENT FINANCING PHL Capital’s land financing program provides the flexibility that conventional lenders cannot. The program was built with an understanding of the challenges developers face with Municipal timelines and tough bank requirements.

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As a result, PHL takes a common-sense approach to helping its clients. As an equity-based lender, their guidelines are centered around the value of the real estate.

In fact, PHL can lend up to 75% of the value of a property.

Many developers have a difficult time finding financing within the early stages of their development application, as many conventional lenders require municipal approvals to be in place. PHL understands how this can prove to be a challenge and has comfort with lending on raw developable land and providing bridge financing solutions that many developers need.

PHL offers fully open mortgage loans, meaning borrowers can pay out their loans at any time without penalty. Their loans are typically 1–2-year terms with interest only payments and they have the ability to entertain loans up to $50,000,000, making them one of the most unique and sought-after alternative lenders in the province.

A recent example is a file where PHL Capital lent on an existing apartment building that was designated for highrise density in the OCP. The borrowers were paying for the development potential and the building did not have longterm leases in place as they wanted to vacate the building in preparation for the new development. Their bank declined

the file as it did not work on an income approach. PHL stepped in and financed the project given the strong value in the land and the experience and strength of the borrower.

The borrowing group took the project through to 3rd reading and then sold the property, essentially doubling their initial investment and successfully repaying PHL’s loan.

These are the win-win situations PHL strives to help its customers with.

This is just one of many examples where PHL took a common sense approach and understood the underlying value of the asset, which gave our clients an opportunity to execute a profitable plan.

Whether land financing is required for acquisition, servicing, or as an inventory loan, PHL Capital has the flexibility required to support today’s everchanging and evolving development sector. 

If you would like to learn more about our land financing program please contact Sales Manager, Aaron Duhra at 604-579-0847 or aaronduhra@phlcapital.com.

Unleashing Your Potential As the great Nelson Mandela said,

“There is no passion to be found playing small—in settling for a life that is less than the one you are capable of living.”

These powerful words challenge you and I to consider the all-important question: 'How can we live our life to its fullest potential?'

Imagine doing what you love every day, doing things that give you unlimited energy, so much so that you wake up before your alarm clock every morning. Everyone deserves to live their ideal life in such a way, but sadly most of us don’t. The art of using one’s full potential is the same as the art of shooting an arrow head. One begins by pulling the arrow back on the bow, and as the arrow is drawn back, it gains maximum strength for going forward. A useless shot will result if the arrow is not first pulled back. The art of using one’s full potential demands bringing the mind back to the field of absolute being, before it is brought out to face the many facets of life.

How do we live the most enriching and fulfilling life that fills our soul, brings the best out of us every day, and inspires others to do the same? The answer lies within us. If we go seeking outwards, the journey is endless. If we turn inward, it is just one moment and, in that moment, we are not pursuing joy anymore. Instead, our life becomes an expression of our joyfulness.

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Below are a few techniques that can help us go within, perceive life beyond physical boundaries, and open doors to endless creativity and possibilities.

WHAT’S YOUR LIFE PURPOSE? Every organization has a mission and purpose that makes the company stand out and inspires its employees to reach their full potential. But do we have a personal mission statement that directs our life’s purpose? According to a Harvard Business Review study from 2014, less than 20 percent of business leaders have a strong sense of personal purpose. It is no surprise that corporate leaders are some of the unhappiest, unhealthiest, and most stressed people in our society. Just as a company with a well-defined purpose is able to align decisions around a clear intention that drives success, so too can we align our personal decisions around a clear intention to drive us toward a more powerful and directed existence.

Let’s take some time to recognize our innate gifts and talents, cultivate them, and find ways to use them in our daily life to serve others in a positive way. Life will become richer and more fulfilling and you will start to see your boat rowing with the current instead of against it.

YOU CAN’T WIN IF YOU DON’T ENVISION YOURSELF WINNING Henry Ford once said, “Whether you think you can or whether you think you can’t, you’re right.” If you take a look around, everything that was ever created by humans, first existed as an image in someone’s mind. Psychologists have been using visual imagery for years as a way to help people enhance performance, increase productivity, create desired emotional states, and achieve life goals. Broadly speaking, visualization is a simple technique that you can use to intentionally create mental images and bring it into your consciousness to create real-life outcomes. What we focus our minds on, we tend to create in our lives.

Before you head into your next important meeting, sit quietly for five to ten minutes in a quiet space and create a moving picture in your mind on what is about to happen.

Once the meeting has started, lay back and try not to force the action but to allow it to unfold naturally. This will mentally and purposefully prepare you for an event that is going to happen and will give you an extra edge on others.

CLARITY BRINGS OPPORTUNITIES According to the National Science Foundation, an average person has about 12,000 to 60,000 thoughts per day. With our minds racing at this speed and always trying to figure out what’s next, we block our ability to respond creatively to what’s going on in the present moment. We tend to get lost in our thoughts and give them the power to run us.

One technique that is proven to unleash our full potential and is used by many successful people like Russell Brand and Oprah Winfrey is Transcendental Meditation (TM). Most meditations aim to control or train the mind by a way of thinking. TM, on the other hand, involves no concentration, control, or training. This technique is a very simple and natural way of letting the mind go beyond surface level thinking towards a calm state of rest.

When practicing TM, you sit in a comfortable position with your eyes closed and silently repeat a mantra. This helps to transcend or go beyond our ordinary thinking process and allows us to enter into a state of pure consciousness. In this state, you can achieve perfect stillness, rest, stability, and a complete absence of mental boundaries. Practice this technique for 20 minutes twice a day, to ignite your creativity and inner power.

LIVING A LIFE OF BALANCE Do you like many others find yourself doing more and accomplishing less? Being overly busy has become a way of life in the Western world. In contrast, some cultures place a higher value on relaxation. In countries like Spain and Japan, an afternoon siesta is still the norm, even at a workplace. Recent scientific research has proven that a midafternoon nap can be an excellent productivity boost, improving focus and efficiency. Even as little as a sixminute nap has been shown to improve memory recall.

Building regular activities into your life that help you to relax and rejuvenate will center you on your journey. Aim for ten to twenty minutes of real relaxation per day. You might add simple exercises to your office routine such as breathing exercises, a ten-minute power nap, or you might want to go for a stroll in a park during lunch. Once you start to incorporate these tools into your daily life, you will be on the path to improved self-awareness, balance, fulfillment and most importantly your ability to better tune in to yourself.

Remember that, as often as we look to the outside world for teachers, the ultimate teacher is within us. Our joy, our misery, our love, and our bliss all lie in our hands. There is a way out, and the way out is in. It is only by turning our awareness inward that we start singing the song of our heart and break free from the unconscious patterns that are holding us back.  Jasneet has committed herself to the practice, study, and teachings of Ayurveda and Yoga since 2016. Originally trained in Kundalini Yoga, Jasneet has expanded her teaching into Yoga for Youth affected by trauma and is also a Certified Ayurvedic Counsellor on her way to becoming a Practitioner.

VARING COMMUNITY COMMUNITY MEMBERS OF

PROUD SPONSORS OF

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No singular person achieves success alone. Similarly to this, our success as a company over the past fifteen years is nothing without the wonderful communities, clients and industry we belong to. As a part of the Fraser Valley, it brings us great pleasure to give back to the communities who support us, as we support them. We are fortunate to live in one of the most diverse regions in the world, and it is deeply important to us to be consciously investing not only our money, but our time into continuously building and strengthening this community. Every day is the opportunity to make a profound impact in our society, let’s start today!

FEATURED IN THE MEDIA

RECOGNITION 2021 # 1 AGENT BC Sales Volume, Homelife Realty

2020 # 1 AGENT BC Sales Volume, Homelife Realty

2019 # 1 AGENT BC Sales Volume, Homelife Realty

1 AGENT CANADA Sales Volume, Homelife Realty

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1 AGENT CANADA Sales Volume, Homelife Realty

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1 AGENT CANADA Sales Volume, Homelife Realty

The access to and acquisition of land has driven much of the growth in the Fraser Valley. From Metro to Translink, to a changing climate and people, to startups and established business, to immigration and settlement; Land has been woven into the very core of what makes the Fraser Valley a great place to do business. Here’s to the next 25 years!

– Joe

LAN

ND For the Love of Dirt.