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Local. Business. Intelligence. October 18–24, 2011 • Issue 1147

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Construction boom building skills shortages and job opportunities 3

Local industrial land evolution

The aboriginal enterprise initiatives of ex-PM Paul Martin 5

n this third instalment of a three-part series, Business in Vancouver examines how Metro Vancouver’s recently adopted Regional Growth Strategy (RGS) will preserve industrial land, the loss of which is a huge concern to regional land management advocates like Bob Laurie. The series’ first instalment examined how the plan could promote

Ernst & Young’s Kristen Tisdale and B.C.’s battle to retain head offices 17

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Banker big on B.C.’s future 10 Bookriff’s iTunes take on the brave new world of publishing 12

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development via transportation and transit links (see “Banking on transit’s power to drive growth” – issue 1145; October 4-10). Instalment 2 explored the additional layers of bureaucracy that will accompany the RGS and their impact on development and other business enterprise (“Red flags over red tape” – issue 1146; October 11-17). Business in Vancouver special report – 6, 7

How to convert website visitors to customers 26

Kate and Jean-Pierre LeBlanc – wellness and business: Smallbusiness quarterly 27-32

Treaty trouble stalls development >BC Treaty Commission boss blasts lack of urgency in a process that, after 20 years and $533 million, has generated widespread investment uncertainty and yielded only two treaties

By Joel McKay

Top 100 national and global companies based in B.C. 18, 20, 22, 23

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irst Nations treaty negotiations in B.C. have slowed to a crawl, and unless the government and First Nations re-commit to accelerate the process, the province’s chief commissioner believes it should be abandoned. Last week, Sophie Pierre asked for a oneyear extension to her three-year term as BC Treaty Commission chief commissioner in an attempt to get negotiations back online. Pierre told Business in Vancouver the “lack of urgency” in negotiations is “ridiculous.” She said unless Prime Minister Stephen Harper, Premier Christy Clark and the First Nations Summit re-commits to the treaty process to hasten negotiations and implement treaties, then the process, which she criticized as being a “program,” should be shut down. “If it continues to be a program instead of negotiations, then when I leave I’ll just be telling everybody, ‘Look, folks, it’s not working, forget it; it’s a waste of time,” said Pierre. see Negotiation, 4

Dominic Schaefer

Anne Callaghan, the first American woman consul general to be based in Vancouver, on better cross-border business 43

Squamish Chief Gibby Jacob: “right now, the table is just way too slanted in favour of the other governments [in treaty negotiations]”

Daily business news at www.biv.com October 18–24, 2011

contents Columnists True Wealth Thane Stenner Real Estate Roundup Peter Mitham High-Tech Office Alan Zisman Golden Goals Bob Mackin CEO Advantage Nancy MacKay Sustainability Nina Winham Business Lessons Tara Landes Revenue Streams Anne Graham At Large Peter Ladner Public Eye Sean Holman

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Spa publicity tactic targets rioters

Businessman launches $100 m scholarship fund

Vancouver tops Canada in new-home price declines

Surrey’s CPX buys Alchemist Transport

B.C. private businesses optimistic: PwC

Dollar store consolidation continues

BMO lowers 2011 growth predictions for B.C.

HootSuite acquires Geotoko

Vancouver’s Westport buys Swedish natural gas fuel system maker

IT consultants better paid in Alberta, Saskatchewan

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Kitimat LNG project lands 20-year export licence

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Sections Technology Top 100 B.C.-based companies Sustainability Business tool kit Small business Law Comment

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News Bleak economic times are making it equally bleak for commercial and non-profit organizations like Carolyn Tuckwell’s Boys and Girls Club. Business in Vancouver explores the world of fundraising in B.C. and how charities are struggling to survive during what is traditionally the strongest time of the year to raise funds Biggest postsecondary institutions in B.C.

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News

October 18–24, 2011 Business in Vancouver

Construction boom driving B.C. job gains Major infrastructure projects keeping local market buoyant, but skill shortages emerge for site supervisors, managers around the province

Vancouver Regional Construction Association president Keith Sashaw: “our members are already experiencing skill shortages for midmanagement levels” By Glen Korstrom

ising housing starts have combined with major construction projects to create robust job growth and make B.C.’s economy one of the hottest in North America. That economy, however, shows early signs of skill shortages, particularly for experienced managers. Canada created a higher-thanexpected 61,000 jobs in September. More than half of those openings (32,000) were in B.C. In contrast, the flagging U.S. economy created 103,000 jobs nationwide in September. Construction-related jobs from housing starts and major projects are a big part of B.C.’s success story. The number of Metro Vancouver construction jobs has rebounded to pre-recession levels. Approximately 130,000 people were employed in the Metro Vancouver construction sector in late 2008 before the global economic downturn took hold. That fell to 100,000 in January

2010, but, according to Statistics Canada, has since jumped to 136,800 in September, down marginally from 137,200 in August. “Our members are already experiencing skill shortages for midmanagement levels,” said Keith Sashaw, president of the Vancouver Regional Construction Association. “That’s site superintendants, project managers and estimators. Companies are already beginning to look further afield for those positions.” Sashaw added that international construction giants, which might have an easier time transporting workers from one location to another, have increasingly become interested in the B.C. market. Large construction companies such as North American giant

“The cost of housing is a serious challenge for recruiting individuals” – Ken Peacock, chief economist, Business Council of British Columbia

Kiewit Corp., Spain’s Acciona S.A. and Germany’s Bilfinger Berger have long operated in the B.C. market. Sashaw has recently fielded calls from representatives at companies such as U.S.-based Turner Construction Co. and France-based Bouygues S.A. inquiring about joining his 700-member organization. Major projects have fuelled construction industry employment. The region’s $3.3 billion Highway 1/Port Mann Bridge project, for example, has created about 8,000 jobs. Other large projects include

the Fraser Health’s new Jim Pattison Outpatient and Surgery Centre and the new RCMP E-division headquarters. Four recently announced office tower projects in the downtown core are among those bolstering Sashaw’s belief that skill shortages will continue for at least the next few years. So do housing start figures. Metro Vancouver housing starts rose to 1,783 in September compared with 1,644 starts in the same month last year, according to Canada Mortgage and Housing Corp. In contrast, U.S. housing starts sank to a three-month low in August (571,000) and analysts at the U.S.-based Financial Forecast Center expect those starts to continue to fall to 480,000 by November. Jobs creation in B.C. helped push the province’s unemployment rate down to 6.8% in September from 7.5% in August. That rate is high enough that widespread skill shortages are unlikely, according to the British Columbia Business Council’s (BCBC) October report People, Skills and Prosperity: The BC Labour Market in a Post-Recession Context. Still, Ken Peacock, the BCBC’s chief economist and a co-author of the report, expects skill shortages in the short term in regions such as the North Coast – Nechako and Cariboo as well as in sectors such as construction and health care. Peacock told Business in Vancouver that a major stumbling block in recruiting workers from other parts of the continent is Vancouver’s high cost of living. According to an October Royal LePage House Price Survey, average prices for detached homes in Vancouver rose to $1,022,375 – triple

Oxford Properties Group’s proposal to build a 37-storey tower on West Hastings Street is one of many construction projects helping sustain positive outlooks for Metro Vancouver’s building sector

the national average – in 2011’s third quarter. “The cost of housing is a serious challenge for recruiting individuals,” Peacock said. “Companies often look outside the province to recruit executives and other high level managers. Even at the executive level, the cost of housing is an issue for people coming here from other parts of North America, particularly the U.S.” But that high cost of living could be on the wane. According to Real Estate Board

of Greater Vancouver (REBGV) released statistics October 4, increases in property listings and fewer sales during the summer months have created a buyer’s market. Sales for detached, attached and apartment properties in Greater Vancouver (not including Delta, Surrey and Langley) rose 1.2% to 2,246 in September compared with September 2010. Listings, in contrast, spiked 20.1% to 5,680 compared with September 2010. • gkorstrom@biv.com

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News

Daily business news at www.biv.com October 18–24, 2011

Negotiation: B.C. bands opting to develop business within Indian Act rather than pursue treaties from Treaty, 1

The commission was created in 1992 to negotiate modern-day treaties and settle land claims, which critics say greatly affect industry’s decision to invest in B.C. and get projects off the ground. Pierre believes treaties are the key to economic development for B.C.’s 201 aboriginal bands, releasing them from the shackles of an archaic Indian Act that makes investment and

business development on reserve lands extremely difficult. But since the commission was set up, only two treaties have been implemented, the Tsawwassen First Nation and Maa-nulth First Nations. Parliament is expected to ratify the Yale First Nation treaty some time this fall, and Pierre said there is potential for another 16 treaties to be implemented in the near term. But 18 First Nations,

including the Squamish and Musqueam, have stepped away from treaty negotiations altogether, preferring to develop business opportunities within the confines of the Indian Act and assert rights and title through the court system. Squamish Chief Gibby Jacob told BIV his community has no plans to get rid of the Indian Act, preferring to chip away at it one day at a time to maximize control over reserve land.

“Right now the table is just way too slanted in favour of the other governments,” Jacob said in regard to treaty negotiations. “Taking your chips out of the Indian Act has been a big part of what we’ve been up to over the last several years.” S t s ’a i l e s ( f o r m e r ly Chehalis Indian Band) chief Willie Charlie told BIV his community made a conscious decision to avoid treaty negotiations because it would mean “giving up

too much.” He also said overlapping territorial disputes among bands have added another layer of complexity. Pierre agreed that overlapping territorial claims is an ongoing problem. Charlie believes it could be settled with a “strength of claim” test, forcing First Nations to verify their claims. B.C. Aboriginal Relations and Reconcilitation Minister Mary Polak said two succesful agreements in

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20 years is not what the government set out to achieve, but there have been some positive results. “It would be a misreading of the circumstances to think that the two that are being implemented are the only representation of work that’s gone on,” said Polak. “There’s a whole lot of work that’s gone into the others.” In fact, the commission has allocated $533 million in negotiation support funding since 1993, approximately 80% of that money in the form of loans. Pola k said t he province remains committed to developing agreements with First Nations to create more certainty for economic development. Meantime, federal Aboriginal Affairs Minister John Duncan has appointed a special representative to look at ways to accelerate treaty negotiations. A spokesman for the ministry said Ottawa remains committed to the process. But questions remain as to how successful treaties are at creating jobs. In June, the Frontier Centre for Public Policy published a report grading the success of the Nisga’a Treaty in northwest B.C., the first since the agreement was signed in 1998. The report found that although the Nisga’a trust their government more than all others, many believe it has yet to deliver on economic development opportunities. Study co-author Joseph Quesnel said it’s difficult to determine if those concerns are a failure of the local government or a symptom of the economic downturn in that part of the province. Still, he said there is ample evidence that selfgovernment improves the odds for First Nations. But Thomas Isaac, a former chief treaty negotiator for B.C. and partner at McCarthy Tetrault, said forcing treaties on First Nations doesn’t necessarily create any more certainty for the province. “You can’t impose your will on others and expect a reasonable outcome,” said Isaac. “We can live without treaties. There’s a mythology that absent treaties British Columbia is uncertain. If there’s uncertainty in British Columbia I strongly believe the absence of treaties has very little to do with it.” • jmckay@biv.com

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October 18–24, 2011 Business in Vancouver

Former PM pushing social enterprise to tap First Nations human resources Paul Martin’s private equity fund helping underwrite aboriginal business initiatives By Krisendra Bisetty

anada should embrace the concept of “social enterprise” through regulatory and tax incentives that would encourage investment in areas that will be job creators, says Paul Martin. During his recent visit to Vancouver, the former prime minister said that in a country with a recession-induced 9% unemployment rate and almost 16% youth unemployment rate (for ages 15 to 25), the problem can’t be solved in conventional ways He said “social entrepreneurs” need to be given the same tools as business entrepreneurs. “Our problem is youth unemployment in this country. It’s not just an aboriginal problem, it’s a problem for everybody.” In a wide-ranging interview with Business in Vancouver, Martin spoke of Canada’s paradox: a high unemployment rate on one hand and a skills shortage on the other. The challenge, he said, is determining how the country’s native peoples can fill that gap and how corporate investors, big or small, can tap into the aboriginal market, make a profit and leave economically empowered communities in their wake. He cited the example of two Vancouver-based resource companies – Teck Resources Ltd. (TSX:TCK.A;B; NYSE:TCK) and Goldcorp Inc. (TSX:G; NYSE:GG) who are among 21 Canadian

Krisendra Bisetty

Former prime minister Paul Martin: “we’re 34 million people, and we’re competing with nations like China and India … we can’t afford to waste a single talent and that’s what we’re doing”

investors, including several banks, that have pooled millions of dollars in a fund run by CAPE Fund Management Inc., a private equity initiative of Martin and his son, David. The $50 million fund’s sole investment focus is to partner with aboriginal groups and individuals to promote aboriginal business, entrepreneurship and ultimately prosperity by growing businesses and thereby generating social returns and risk-adjusted financial returns. “Ours is a private-sector response to a public need,” Martin said at an earlier meeting with aboriginal and business leaders. Each of the major corporations investing in the fund handed over $2.5 million, but Martin said much more could have been raised if smaller investors were tapped. However, for that to

happen, he stressed that there needs to be a system of social enterprise such as in the U.S., U.K. and Korea. “Social enterprise essentially says that this is an investment that has a social return primarily and can have a financial return secondarily,” said Martin. He added that business solutions could be applied to social problems. On the B.C. coast, CAPE has partnered with Coastal Shellfish LP and is in the early stages of launching what Martin said could become a major scallop aquaculture operation. Three coastal First Nations – the Metlakatla, the Heiltsuk and the Council of Haida Nation – are participants in the project. Another investment – One Earth Farms on the Prairies – has become Canada’s largest farming ranch in only three years after being created by Toronto-based Sprott Resource Corp. (TSX:SCP) to build a partnership between the private sector and First Nations. “We started with three Fi rst Nat ions i n 2009, 13,000 acres and three employees,” Fred Siemens, the company’s co-founder and vice-president, business development, said at the September 29 Canadian Council for Aboriginal Business meeting in Vancouver. In 2011, the company is harvesting 113,000 acres in Alberta and Saskatchewan, has approximately 80,000 acres of ranch land and about

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News aboriginal youth who can’t afford university education are provided with help to gain access. “But we’re doing reverse affirmative action when we under-fund grade schools and high schools for aboriginals in this country,” he said. “We’re sending aboriginal kids to grade schools and high schools that most Canadians wouldn’t send their children to. … That’s morally wrong, but it’s also dumb. “We’re 34 million people, and we’re competing with nations like China and India. Well, we can’t afford to waste a single talent and that’s what we’re doing.”

8,000 cows. It’s also looking to create an all natural First Nations beef product. “We have attracted interest globally,” Siemens said of the 200-employee company, which draws 38% of its labour force and 17% management from First Nations. Martin said once investors exit an investment, they’re asked to invest in another business or startup. He told BIV that First Nations continue to get short shrift when it comes to opportunities in schooling and jobs, and that a policy of affirmative action should be used to ensure that the approximately 10,000

Gar y Merast y, v icepresident of corporate social responsibility for Saskatchewan-based Cameco Corp. (TSX:CCO; NYSE: CCJ), one of the world’s largest uranium companies, told BIV the problem is exacerbated by a “perception” that the average Canadian believes that the culture of poverty in Canada is the culture of aboriginals. That, he said, is furthest from the truth. “I’m First Nations myself, and I see such a high degree of entrepreneurialism,” he said. “I see such a high degree to move forward and do better.” • news@biv.com

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News

Daily business news at www.biv.com October 18–24, 2011

full disclosure

Industrial evolutions >Regional Growth Strategy promises to provide focus for future Vancouver development >Metro Vancouver plan aimed at preserving industrial lands and promoting development at ports, around transit hubs and in special study areas

ay goodbye to the laissez faire approach to development that allowed industrial land in Coal Harbour and on the former Expo 86 site to be turned into bustling neighbourhoods filled with condo dwellers. Me t r o Va nc ou ve r ’s n e w Regional Growth Strategy (RGS), which plays a pivotal role in how the region will develop over the next 30 years, takes a hard line on protecting industrial land. Future industrial rezonings will force developers to first gain municipal support and then jump what many say will be the insurmountable hurdle of winning majority support from Metro Vancouver’s board, which has a mandate to “support and protect industrial [land] uses.” Industrial developers believe recently approved projects, such as Fraser Mills in Coquitlam, would likely not have received the green light had their backers been forced to navigate the current rezoning process. The flip side, however, is that the RGS is likely to promote more: •Port Metro Vancouver (PMV) development; •high-density residential development around transit hubs; and •projects on so-called “special study areas” that dot municipalities across the region. Growth strategy aiming to help Metro Vancouver ports expand The Deltaport container terminal at Roberts Bank in Delta is one of many port sites that will benefit from the new RGS, according to long-time Vancouver real estate industry insider and port land advocate Bob Laurie. Laurie, executive vice-president

of Sequel Integrated Resource Management, envisions rapid develop-

ment at Metro Vancouver’s port sites because, with fewer developers competing to buy the properties, adjacent industrial land will be more affordable. He said if the port doesn’t buy the adjacent industrial land, private companies that offer port-related services will. Laurie points to the site of a former Canfor Corp. mill along New Westminster’s Fraser River shore that Port Metro Vancouver bought for $47.5 million in 2009. The port has since leased the 56-acre property to a construction company pending its long-term development for port use. That transaction and the port’s earlier $30.1 million purchase of a 50-acre site that also touches the Fraser River and was formerly an International Forest Products Ltd. site are examples of land pur-

“There’s a lot of excitement along the Cambie corridor” – Gary Pooni, president, Brook Pooni

chases that were overvalued, according to Laurie. As a believer in free enterprise, he acknowledges that any transaction involving a willing seller and buyer is a fair transaction. However, he said the properties the port bought were driven up in value by Coquitlam’s willingness to rezone the Beedie Group’s 90acre Fraser River-abutting Fraser Mills site. “Fraser Mills is the poster child for inappropriate land-use changes,” Laurie told Business in Vancouver.

Dominic Schaefer

By Glen Korstrom

Bob Laurie, Sequel Integrated Resource Management executive vice-president and longtime real estate industry insider: “Fraser Mills is the poster child for inappropriate land-use changes”

“The former Canfor land was priced at an amount that presumed developer speculation because a similar site around the bend in the river – one kilometre as the crow flies – was able to be rezoned.” Laurie said the RGS’s tough line on converting industrial land into other uses will snuff out interest from developers who want to build non-industrial structures on industrial land. The result is that Port Metro Vancouver will be able to get more bang for its buck, expand quicker and build on Vancouver’s reputation as a cost-effective Pacific Rim port city. However, the flip side of the coin is that there will be far less flexibility for an executive who wants to build a headquarters atop an industrial warehouse or for a developer to provide a mixed-use destination along the Fraser River shore in municipalities such as Coquitlam or Burnaby, which have comparatively little public access to the riverfront. Beedie Group vice-president of land development Dave Gormley thinks it would have been a shame had his company not achieved approval in 2007 to build 600,000 square feet of industrial space along with 200,000 square feet of commercial space and 3,700 homes on the Fraser Mills site.

Construction is set to start soon on the Fraser Mills development. Starting in the summer of 2012, Beedie plans to build a 200,000-square-foot residential tower on the waterfront of the Fraser Mills site along with lowrise buildings that contain some commercial space on the ground floor. The final phase of the project is scheduled to be completed within 15 years. “If you live on the waterfront in Coquitlam, or even in Burnaby, they don’t have as much public land as Vancouver,” he said. “Vancouver has lots of public waterfront space – Coal Harbour, False Creek and developments in South Vancouver such as East Fraser Lands.” Regional plan helps accelerate rezoning near transit corridors The RGS is also focused on highdensity development along transit hubs and at city centres. Having that vision set out in the regional plan gives developers more confidence that they will succeed if they bring a project along a transit corridor to a municipal council for approval, said urban planning consultant and Brook Pooni president Gary Pooni. “Municipalities, when they look at a rezoning application, will look to the regional plan and

say, ‘Yes, let’s proceed with the rezoning application because it’s in conformity with regional policy,’” Pooni said. “That enables the process to move a little quicker because the project conforms. It’s not fasttracked. The process just runs a bit smoother.” Pooni pointed to Bentall Kennedy’s 38-acre Sapperton Green project on land adjacent to the Braid Street SkyTrain station. New Westminster’s official community plan designates the site as industrial; however, it’s currently zoned as a commercial industrial district. The RGS designated the site as general urban, meaning that residential, commercial, institutional and recreational uses are permitted. Bentall Kennedy is in the early stages of public consultation for the site and has yet to release clear plans for what it envisages. “There’s a lot of excitement along the Cambie corridor,” Pooni said. “Where do people want to live? In a core area with high amenities or around transit. There’s limited opportunity for higher density development in the downtown core, so the Cambie corridor is on a lot of people’s radar.” But t he problem w it h t he Cambie corridor so far has been high homeowner expectations for

News

October 18–24, 2011 Business in Vancouver

full disclosure

Source: Metro Vancouver

Urban planning: Metro Vancouver’s growth strategy makes it more difficult to rezone industrial land and easier to rezone special study areas

their properties’ resale value. That has thus far kept developers from scooping up land. One project in its early stages, however, is the proposed Wanson Development Ltd. development at West 48th Avenue and Cambie Street, which had an open house October 11. Wanson representatives are expected to file an application soon with the City of Vancouver for an eight-storey building with 30 apartments and five townhomes.

Growth strategy lowers hurdles for special study areas Neighbourhoods for a Sustainable Vancouver organizer Ned Jacobs fought the RGS earlier this year in the lead-up to 20 municipal councils, with the Squamish Lillooet Regional District, Fraser Valley Regional District and the Tsawwassen First Nation approving the strategy. One of his biggest beefs was that it would create urban sprawl because it allows Metro Vancouver

board members to redesignate land zoned as a “special study area” – mostly agricultural land – with a simple majority vote. Previously, approval required a two-thirds Metro Vancouver board majority. But Christina DeMarco, who is Metro Vancouver’s division manager for regional development, said the Agricultural Land Commission would first have to remove the land from the agricultural land reserve. Ja c o b s , howe ve r, i s a l s o

concerned that urban sprawl will climb higher up the North Shore mountains. DeMarco countered that North Shore mountain land is protected by a “context statement” in the West Vancouver official community plan. It states that land more than 1,200 feet above sea level is to be used almost entirely for conservation and recreation. The rationale to allow projects on special study areas to pass the Metro Vancouver board with a simple majority instead of a two-

thirds majority makes sense for developers who believe that it’s a trade off for municipalities yielding power to the regional board for industrial rezonings. “Municipalities have already flagged those special study areas,” said Gormley. “They’re essentially saying, ‘We’re thinking about doing something here. It’s premature now, but 15 years from now it may not be.’ They’re thinking out that far.” • gkorstrom@biv.com

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Daily business news at www.biv.com October 18–24, 2011

PROFITS AND LOSSES

Losses are shown in brackets. Graph information by Stockwatch.

Finning International Inc. (TSX:FTT)

Radiant Communications Corp. (TSX-V:RCN)

Strike to affect Q3 results

Income history

Costs erode bottom line

Income history

Investors will be waiting until mid-November to see the financial impact of a five-week strike of 700 B.C. employees of the Vancouverbased heavy equipment dealer. The company noted in its second-quarter release that the strike and short-term challenges with its new enterprise resource planning system will affect its third-quarter results. Finning reported a record quarter ending June 30.

n Revenue n Profit/loss

While the Vancouver-based broadband Internet provider to business posted higher revenue in the first half of the year, increased costs reduced its earnings for the six-month period ending June 30. Company expenses rose because of increased marketing for its new Surelink product and the additional resources needed for development and its growing managed services connections.

n Revenue n Profit/loss

2.5

($ billions)

2.0 1.5 1.0 0.5

Revenue: $2.7 billion (6 months) Net profit: $153.4 million (6 months) Earnings per share: $0.89

Revenue: $16.1 million (6 months) Net loss: $300,039 (6 months) Earnings per share: ($0.02)

0.0 -0.5

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Vancouver companies are having a tough time attracting information technology (IT) staff due to higher living costs in the Lower Mainland and higher wages in Alberta and Saskatchewan, according to WPCG. The IT recruitement company released a study that showed technology industry consultants are paid up to 41% higher in Alberta and Saskatchewan than in Vancouver. Thursday, October 13

Full stories and other local business news at www.biv.com/businesstoday Daily business news direct to your inbox! Sign up at www.biv.com/newsletters

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How to deal with estate-related taxes

HootSuite buys Geotoko

IT consultants paid more in Alberta, Sask

May

Thane Stenner

BUSINESS TODAY

Thursday, October 13

Apr

True wealth

daily online edition

Vancouver-based Hootsuite Media has acquired Geotoko, a location-based marketing tool. Geotoko aggregates data about consumer behaviour from check-in technologies like Foursquare and Facebook Places.

Mar

Stock price

$ 35

($ millions)

$ 3.0

read an article last week in one of our national papers calling for a so-called “death tax” – a dedicated tax on one’s estate, much like the system south of the border. The article raised a number of interesting points and a fair bit of commentary, both positive and negative. T he piece got me to thinking about estate-related taxes. Even though Canada doesn’t have an estate tax in the strict sense of the word (yet), there are still a variety of fees, taxes and costs that have to be paid when you die. This can be a serious concern for highnet-worth business owners and ex-owners. Tha nk f u l ly, you ca n easily reduce estate taxes by organizing your affairs and taking advantage of certain financial strategies and structures. Let’s review some of them. Gifts and transfers Obviously, if there are fewer assets in your estate at the time you pass away, there will be less to tax;

given enough time, this is a simple and effective way to eliminate fees and taxes. Be aware, however, that there are limits to what you can give away tax-free in any one year. Exceed those limits and you may have to pay up. Life insurance Life insurance is first and foremost a tool to protect your family. But it can also be an effective estate-planning tool. Under government guidelines, proceeds from a life insurance policy pass tax-free to heirs. This can help offset taxes owing on other estate assets. And bec au se l i fe i nsu r a nce doesn’t have to be passed through the estate, the payouts aren’t subject to probate, and they aren’t part of the public record. Joint ownership If you own assets jointly with another person, when you die, those assets pass to the other person automatically without having to go through probate. But be careful: transferring assets

into joint ownership usually results in a deemed disposition for the original owner. Also, joint ownership means giving up control over a portion of the

Even though Canada doesn’t have an estate tax in the strict sense of the word (yet), there are still a variety of fees, taxes and costs that have to be paid when you die. This can be a serious concern for high-net-worth business owners and ex-owners asset and exposing that asset to the creditors of the other owner, including ex-spouses. Something to keep in mind, particularly if you’re considering owning shares of a corporation

or similar business asset jointly. Charitable gifts A donation to a registered charity can result in a tax credit of up to 75% of your net income while alive and 100% of your net income when the gift is structured through a will. Unused tax credits can be used over the following five years if the gift was made while alive, or applied against tax owing in the previous year if the gift was made through a will, up to a maximum of 100% of net income in that year. Trusts Properly structured, a trust can be an effective way to reduce the taxes and fees owing upon your death. Depending on the type, a trust can help you initiate an estate freeze (see below), avoid probate taxes or split income with members of the family. Estate freeze An estate freeze is a sophisticated financial strategy

that allows the owner of an asset to lock in (“freeze”) the value of an asset in the present, retaining ownership rights but transferring future growth (and taxes on that growth) to the next generation. This is an ideal strategy with business assets, but it can be very complex – make sure to seek out professional advice if you’re interested. E state pla n n i ng c a n be complicated enough. Throw tax planning into the mix and it can be even more so. So make sure to talk to a qualified taxation professional before implementing any of the strategies above. • Thane Stenner (thane.stenner@richardsongmp.com) is the founder of Stenner Investment Partners within Richardson GMP Ltd. He is also managing director for Tiger 21 Canada (www. tiger21.com/canada) and the author of True Wealth: An Expert Guide for HighNet-Worth Individuals. His column appears every two weeks.

finance

October 18–24, 2011 Business in Vancouver

B.C. building permits up

Insider Trading

Permits in municipalities climb 3.4%

▲14.3% ▼31.3% ▲34.4% ▲23.4% August August permits permits (residential) (commercial)

August permits (institutional)

August permits (industrial)

The value of building permits issued by B.C. municipalities climbed 3.4% (seasonally adjusted) in August. The increase was due mostly to more planned activity in the residential (14.3%) sector. Permits for non-residential buildings were off (-14.0%), with a 31.3% decline for commercial projects outweighing solid boosts in the institutional and government (34.4%) and industrial (23.4%) sectors. Year-to-date, building permits in B.C.’s regions were relatively unchanged (0.1%) compared to the first eight months of 2010.

B.C. unemployment rate lowest since January 2009 B.C.’s unemployment rate fell 0.8 percentage points to 6.7% (seasonally adjusted) in September, the lowest rate recorded since January of 2009. After fluctuating for several months, the provincial unemployment rate is beginning to show signs of levelling off, hovering around seven percent for the past four months.

-BC Stats Infoline, Issue 11-40, October 7

B.C. sees substantial job growth The improvement in B.C.’s jobless rate was the result of substantial job growth. The province boasted the highest employment increase amoung the provinces (31,600, up 1.4% from August).

-BC Stats Infoline, Issue 11-40, October 7

Retail sales growing nationally Retail sales totalled $118.5 billion in the second quarter, up 3.8% from the second quarter of 2010. Sales increased in five of the ten major commodity groupings, representing 65% of total retail sales. Sales of automotive fuels, oils and additives led the growth with a 24.4% year-over-year increase.

-BC Stats Infoline, Issue 11-40, October 7

The following is a list of the largest stock trades made by corporate executives, directors and other company insiders of B.C.’s public companies filed by the week ending October 6. The information comes from a compilation of required reports filed with the BC Securities Commission within five calendar days of a change in an insider’s holdings. Insider: Bradford Cooke, chairman and CEO Company: Endeavour Silver Corp. (TSX:EDR) Shares owned: 1,262,837 Trade date: September 30, October 4 Trade total: $837,900 Trade: Purchase of 95,000 shares at prices ranging between $8.19 and $9.52 per share. Insider: Frank C allaghan, president and CEO Company: Barkerville Gold Mines Ltd. (TSX-V:BGM) Shares owned: 689,941 Trade date: August 18, 19 Trade total: $417,905 Trade: Sale of 114,700 shares for $1.4813 per share and 160,000 shares for $1.55 per share.

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Insider : Rich a rd Zi m m e r, director Company: Capstone Mining Corp. (TSX:CS) Shares owned: 27,069 Trade date: September 27 Trade total: $363,160 (net) Trade: Sale of 200,000 shares for $2.49 per share following the acquisition of 200,000 shares for $0.6742 per share through the exercise of options. Insider: Sheldon Inwentash, major shareholder Company: Mawson Resources Ltd. (TSX:MAW) Shares owned: 4,975,000 Trade date: October 3, 4 Trade total: $248,005 Trade: Sale of 200,000 shares at prices ranging between $1.2267 and $1.28 per share through Pinetree Capital Ltd. Insider: Drew Cadenhead, COO Company: TAG Oil Ltd. (TSX:TAO) Shares owned: 144,771 Trade date: September 15 Trade total: $180,000 Trade: Acquisition of 128,571 shares for US$1.40 per share through the exercise of options.

Insider: Paul Farrow, vicepresident, safety and health Company: Goldcorp Inc. (TSX:G) Shares owned: 0 Trade date: September 9 Trade total: $175,003 (net) Trade: Sale of 16,667 shares for $55 per share following the acquisition of 16,667 shares for $44.50 per share through the exercise of options. I n s i d e r : T i m o t h y B a k e r, director Company: Eldorado Gold Corp. (TSX:ELD) Shares owned: 0 Trade date: September 7 Trade total: $168,900 (net) Trade: Sale of 30,000 shares for $21 per share following the acquisition of 30,000 shares for $15.37 through the exercise of options. Insider: Michael Jones, director Company: MAG Silver Corp. (TSX:MAG) Shares owned: 0 Trade date: September 6 Trade total: $168,527 Trade: Sale of 15,000 shares for prices ranging from $11.08 to $11.40 per share.

Insider: Richard Younker, former CFO Company: Energold Drilling Corp. (TSX-V:EGD) Shares owned: 0 Trade date: August 8, 9, 11, 12 Trade total: $165,224 Trade: Sale of his remaining 40,000 shares at prices ranging from $3.99 to $4.36 per share. Insider: Mario Szotlender, director Company: Fortuna Silver Mines Inc. (TSX:FVI) Shares owned: 315,700 Trade date: August 24, 25 Trade total: $164,766 Trade: Sale of 30,000 shares at prices ranging from $5.18 to $5.29 per share. I n s i d e r : J o h n To g n e t t i , shareholder Company: Mirasol Resources Ltd. (TSX-V:MRZ) Shares owned: 6,336,400 Trade date: September 30, October 3, 4 Trade total: $164,445 Trade: Purchase of $59,500 shares at prices ranging between $2.813 and $3.50 per share. • rchu@biv.com

10 finance

Daily business news at www.biv.com October 18–24, 2011

Banker confident B.C.’s economy is robust enough to withstand global downturn By Richard Chu

espite growing fears that the world’s economy is slowing, B.C. should remain a strong engine of economic growth in Canada over the next few years. While uncertainty persists

about the short-term direct ion of t he economy, the province’s economic diversity and growing stature as Canada’s gateway to Asia should serve as key pillars of economic growth. So says t he senior

representative of the Bank of C a n a d a’s B .C . a n d Yukon regional office. Farid Novin spoke recent ly w it h Business in Vancouver on the sidelines of a CFA Vancouver event held at the Four Seasons Hotel.

Are we prepared to deal with the challenges arising from another potential downturn in the U.S. economy? Definitely. Our position as a gateway to Asia and China becoming a growing, giant economic power are a couple of good things for B.C. The

Richard Chu

Senior Bank of Canada representative says staying agile and securing an industry niche are key to prospering in a time of persistent international economic uncertainty

Farid Novin: “the interesting thing is we don’t know the true impact of a market of a billion people”

nice thing about B.C. is that the government was proactive at the right time over the past few years, establishing trade offices in China. That is now paying off in the sense that all these ships that bring goods to B.C. at the Port of Prince Rupert or Vancouver are bringing our lumber to China on the way back. And now, if you look at the export data, there is a surge. This is just the tip of the iceberg. How significant is China as a key export market, relative to the U.S.? China is playing a very, very important role. They definitely are significant. Are they going to replace the U.S.? Nobody s talking about that. But they provide some stability and in some ways compensate for U.S. weakness. If China wasn’t buying our lumber, we’d be in bigger trouble. The surge is just staggering. Is it realistic for that surge to continue? I think so. A couple of years ago, nobody would believe it. But the interesting thing is we don’t know the true impact of a market of a billion people. All of the growth so far has been in the coastal areas. But it’s gradually going into the interior parts of China, and that’s when things can start building up. Over the past few years, B.C.’s economic recovery was bolstered by hosting the Winter Olympics and from government stimulus spending. We aren’t likely to have anything like that this time if the economy slows, so what will keep the economy going? The fundamentals of [B.C.’s] economy are right. We are not in a Greece, Ireland or Portugal situation with huge debts, because we had run surpluses for so many years. Our deficits are basically within the margin of error for these other countries. Companies, too, have a lot of cash on hand and are waiting for

opportunities. There will be bumps in the road, but we have instruments available, both from the fiscal policy side and the monetary policy side. I’m very optimistic because the long-term trends for B.C. are good. We have a good population, education system, labour force. We also have a very stable, very healthy financial sector. That’s very important. Are there any lessons from previous economic shocks that B.C. companies can employ if there is another slowdown? Definitely. For example, around 2003, I was talking with many companies and some complained about the exchange rate. Some said, “We need $0.72, otherwise we’ll go out of business.” Some of those guys are gone, but those that remain changed their production lines or found their niche. They were really agile and knew what to do to grow their business. Because B.C. has been very far from the centre of Canada, entrepreneurs here have learned to stand on their own two feet. There have been periods when things were not going well. All of those companies that weren’t innovative, weren’t agile, went out of business. Those that remained, understood the world, understood how to use new technologies. How much uncertainty will be created from an early provincial election? There are all kinds of uncertainties in B.C., but they pale in comparison to what we are seeing around the world. B.C. is in a very lucky situation. In this environment, you need to focus on what’s important. If you looked before the recession, the rate of growth in B.C. was above average. When we get back to normal, I fully expect B.C. will be a leading jurisdiction, because the demand from Asia, not just from China, for B.C. products is enormous. • rchu@biv.com

Real estate

October 18–24, 2011 Business in Vancouver

real estate roundup

Peter Mitham

Shake effects The magnitude 6.4 earthquake off Vancouver Island on September 9 was a potent reminder to the Lower Mainland that the Big One – a quake rivalling the megathrust that devastated the B.C. coast in January 1700 – is just a tremor away. But conversations around the table during a recent luncheon hosted by the Appraisal Institute of Canada-BC, Real Estate Institute of BC and Royal Institution of Chartered Surveyors suggest that we really don’t know what impact a bad quake would have on the real estate market. The suggestion was made to look at Christchurch, New Zealand, which continues to reel from the effects of a 6.3-magnitude quake on February 22. The dynamics of the quake packed a powerful 2.5 to 3 gforce punch into what might otherwise have been a minor event. An email to Marius Ogg, director, valuation and advisory services in the Christchurch office of CB Richard Ellis, elicited an informative note that described how Christchurch has been split in two by the February 22 quake. On the one hand, liquefaction of

soils – a major risk for the sedimentrich Fraser River delta – was a significant contributor to devastation on the east side of Christchurch. Unstable soils have not only diminished property values but will require five to 10 years of remediation before reconstruction is possible.

“Virtually every outhouse, hen house and dog house [is] being occupied” – Marius Ogg, director, valuation and advisory services, CB Richard Ellis (Christchurch)

By contrast, the west side of Christchurch suffered relatively minimal damage. Between the two lies the city core, where Ogg said 60% of commercial buildings were destroyed or damaged beyond repair. Tenants – including 50,000 workers – were sent scrambling for whatever alternative premises they could find, primarily on the city’s west side. “This has put huge pressure and demand on existing vacant space resulting in any previous vacancy

being absorbed and virtually every outhouse, hen house and dog house being occupied,” Ogg said. This is a turnaround from a year ago, when vacancies in the central business district stood at 6.4% for prime office space and 8.4% for second-tier space. On the surface, then, a quake is a boon for a city’s most stable areas. Winners, and losers Winners and losers following the Christchurch quake include industrial property owners and anyone needing insurance – in that order. “Of all the property sectors in Christchurch, industrial is the least affected by the earthquakes,” the Auckland office of Colliers International reported earlier this month. “The sector is a beacon of stability – in terms of both sentiment and the physical environment – recording 30% net optimism. That is a huge turnaround from -12% six months ago.” The key, of course, is the physical environment. Christchurch industrial properties are largely in the western half of the city, and their fortunes reflect the area’s virtually

Martin Luff/Wikimedia Commons

New Zealand shows Vancouver what to expect in a real estate market following an earthquake

Bogged down: property liquefaction – as on this street in Christchurch, New Zealand’s North New Brighton neighbourhood in February – is just one challenge property owners will face when a major quake hits Vancouver

unscathed character. Those requiring insurance – a prerequisite for reconstruction and ongoing operation of properties – are in less favourable circumstances. “Insurance is a major and debilitating issue for the city at present,” Ogg writes. Domestic insurance companies are subject to the terms dictated by the multinational reinsurance companies, which are shying from providing coverage in the wake of

the quake. “This is virtually non-existent, particularly while aftershocks continue,” Ogg writes. Christchurch, port operator Lyttleton Port Co. Ltd. and power distributor Orion New Zealand Ltd. all face questions regarding the insurance available, while other property owners experience frustration securing answers and certainty regarding compensation. • pmitham@telus.net

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Technology

Daily business news at www.biv.com October 18–24, 2011

Rhetorical devices 2.0 up books in chapters and really form anthologies of various kinds.” Bookriff provides a free platform f you have an iPod, chances are the music in your playlist is a col- to search for content, assemble it, lection of singles that you’ve either obtain rights from publishers, credownloaded individually or ripped ate a book – either in e-book or print format – make it available for sale in from a CD. But if you have an e-reader, you’re Bookriff’s online marketplace and pretty much stuck with a collection even market it through social media channels. of e-books in their entirety. The company is the brainchild That is about to change, thanks to Bookriff, a new digital publishing of Mark Scott, a former investment company that applies the practice banker and book collector who of “remixing” to the printed word bought D&M Publishers four years and allows virtually anyone to pub- ago. D&M has provided Bookriff lish an anthology of previously pub- with the startup funding to get it off the ground. lished work. As anyone who has backpacked “Bookriff is like iTunes for books,” said Rochelle Grayson, the through Europe can attest, carrying company’s co-founder and CEO. around half a dozen Lonely Plan“Bookriff allows consumers and et and Frommer’s guidebooks and publishers to take the book apart foreign language phrase books can into all its components, all its chap- be a pain. Scott often found himters, and remix it and resell that con- self wishing he could simply excerpt tent, either for personal purposes or the sections he wanted from travel guides and carry it all around in one for new audiences.” The idea behind Bookriff appeals “mixed” book while travelling. With so many books, magazine to Rowland Lorimer, director of the Master of Publishing program at articles and other kinds of content available either online or in ePub Simon Fraser University. “We’ve reached a stage in tech- format, that’s now possible. All that was1:49 missing was 1a simple program nology where it’s possible to divide FS11_VAN_9x7_BIV_Layout 1 07/10/11 PM Page

By Nelson Bennett

to help people “curate” their own anthologies. Scott knew Grayson from a philosophy club they both belong to. He also knew she had the skills to develop a publishing platform. Grayson has an MBA in finance and business policy from the University of Chicago and worked in Silicon Valley during the dot-com boom. She started a blogging software company in the late 1990s, and teaches social media marketing at the University of British Columbia. Bookriff works with publishers to obtain permission to excerpt portions of copyrighted material, and set prices. Say you’re a vegetarian who wants to create a cookbook featuring some of your favourite recipes from other cookbooks and magazine articles, with some of your own dishes included. Once you’ve selected the material you want to use, Bookriff obtains the content from the publisher, the permission to use it and the price. If you excerpt 15 chapters from various books, for example, the new compilation you create might sell for $15 ($1 per chapter).

Dominic Schaefer

Bookriff is writing the next chapter in book publishing with a platform that allows anyone to create compilations and anthologies from published works

Bookriff CEO Rochelle Grayson: remember remixed tapes? Now you can remix books

It costs the creator nothing to create the book. For every book sold through Bookriff’s marketplace, publishers receive 70%; Bookriff receives 30%. Bookriff is recommending to publishers that they kick back 5% of their profits to the curator-creator. And if some of the content is yours, you set your own price on your content and receive the money through Bookriff. Not all publishers are necessarily keen on the idea of having their work going into a stew with work from their competitors, and some authors might not like the idea either. But Grayson said that, for the most part, publishers like Bookriff. “The response from publishers

has been overwhelming. They’ve all been looking for ways to repurpose their content and make it fresh.” While most of the books sold through Bookriff are likely to be in e-book format, the company is working with Ingram Publishing Services, which specializes in on-demand short run printing, to publish in print format as well. Scott and Grayson believe the biggest potential market is in academia, the legal and medical professions and market research. Bookriff celebrated a soft launch last week and will work with publishers before opening the service to the general public. • nbennett@biv.com

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technology 13

October 18–24, 2011 Business in Vancouver

High-Tech Office

Alan Zisman Windows 8 a major OS overhaul gamble

espite all the talk about a post-PC era, there are still an awful lot of PCs out there. In 2008, the number of laptops and desktops, estimated at a billion, passed the number of cars, and most of those computers run some version of Windows, now most often either XP or Windows 7. Those billion-plus PCs, though, are deemed yesterday’s news, with mobile devices – smartphones and tablets – getting more and more attention. Since Microsoft has had a long history with both of these sorts of devices, it’s ironic that the company is cast as an underdog in the mobile markets. In a previous issue, we looked at a smartphone running Windows Phone 7 and saw a capable competitor to the market leaders that’s failing to attract many sales (see “New entries in smartphone market offer more iPhone options” – issue 1144; September 27-October 3). But while Apple (with its

iPhone and iPad) and Google (with a multitude of phones and tablets made by various companies) group smartphones and tablets together, separate from laptops and desktops, Microsoft has always assumed that users really need tablets running desktop operating systems and applications. The result has been a decade of touch-screen tablets running the version of Windows de jour with users poking at the start menu and close buttons with a stylus. Today’s users, though, want to interact with the screen directly with their fingers – and Windows’ screen elements are just too tiny for that to work well. Publicly demonstrated in September – and with a very preliminary pre-release version available for public download – Microsoft’s next generation Windows, Windows 8, makes Windows finger-friendly. It does that by borrowing the user interface from

Windows Phone 7, named Metro, and grafting it onto a Windows operating system designed for desktops, notebooks and tablets – with or without touch screens. The results are promising, but raise as many questions as answers. Windows 8 is designed for fast boot times – Microsoft demonstrated a system starting up in eight seconds – and loads a screen totally

In making Windows 8 more tablet-friendly, Microsoft is taking a big risk unlike any previous version of Windows. No start menu, no taskbar. Instead – like a Windows Phone 7 phone – you boot to a screen covered with large rectangular tiles, each one representing an application. While Window 8 promises to run anything that will run on Windows 7, Microsoft really wants you to run applications designed for Metro – full screen apps with finger-friendly controls. There’s no obvious way to shut them down; instead improved power management suspends

apps that haven’t been used in a while. While Metro’s tiles ought to be more fingertip-friendly than the start menu, for keyboard and mouse users they’re much more awkward – requiring much more mousing around to find a desired program. Microsoft is promising that Windows 8 will run on the ARM processors being used on most of today’s tablets, offering better battery life (though lower performance) than the Intel or AMD processors used on notebooks and desktops. It’s not clear, however, whether the ARM version of Win 8 will be compatible with the vast library of current Windows applications. In making Windows 8 more tablet-friendly, Microsoft is taking a big risk; this is the biggest change – in compatibility and in user interface (and thus in customer retraining) – of any new Windows version. The company has not committed to a release date and lots can change. We’ll try to keep you in the loop. Alan Zisman (www.zisman. ca) is a Vancouver educator and computer specialist. His column appears weekly.

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How to succeed online Attend a best-practices seminar on how to create a website that delivers long-term measurable results. In this session you’ll learn how to create an effective web site strategy and how to evaluate your website on a monthly basis. Who should attend? Vice-presidents, directors, managers and consultants involved in: communications, marketing and web services We’ll provide all the critical answers you’re looking for including: • Why aren’t more people visiting our website? • What causes them to leave and not transact? • How can the site enhance customer relationships? • How can we generate more sales leads through our web site? • We’ll teach you how to create a full search engine report detailing which search engines are driving traffic to your site and which key words visitors are using? We’ll provide you with the tools and templates to do the following: • Establish specific, measurable, attainable, realistic and timely goals and objectives for your website that tie into the success of your business. • Accurately identify your target audience, create user profiles and user scenarios • Learn how to create a simple executive dashboard which provides key information on a monthly basis When: Thursday, Nov. 3 2011, registration will take place at 5:30 event starts at 6pm. Where: Vancouver Club Cost: $100 How to register: SEminAr HoStEd by: simply email events@tidal.ca or call 604-219-6925 to hold your spot. There are only 50 spots available so please register early.

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Sports

Daily business news at www.biv.com October 18–24, 2011

Golden Goals

Bob Mackin Cheers to 225 years, as Molson scion scores NHL deal; BC Place’s continuing Friday fright night adventures

eoff Molson had several reasons to uncap a bottle of his favourite Molson Export on October 6 in St. John’s. The day the National Hockey League season opened, the Ontario Superior Court flushed the Labatt challenge to MolsonCoors’ sponsorship of the NHL. The seventh-generation descendant of Montreal brewing pioneer John Molson was also finishing a five-city, cross-Canada tour to promote the 225th anniversary of Canada’s second-oldest company. The tour, with brother and MolsonCoors chairman Andrew Molson, began at the brewery on Burrard and the Vancouver Board of Trade on September 27. The 40-year-old remains a member of the board of directors but spends much of his time tending his family’s other big asset, the Montreal Canadiens. He bought the storied team in 2009 after financially troubled American George Gillett was forced to sell. Though Molson returned to league-wide sponsorship, it’s no longer served at Rogers Arena where Labatt took over pouring

rights this season. “These things come and go over time,” Molson told Business in Vancouver. “The nice thing about being a Canadian sponsor is that you can develop programs you can bring to all markets.” Vancouver remains the mostimportant market in Western Canada, for obvious reasons. “This brewery is a very important brewery to our network, it supplies the West, and we need it, it’s a good strong-performing brewery,” Molson said. “We’re investing in this brewery to make it even stronger, regardless of the value of the real estate underneath us.” MolsonCoors holds, through its Creemore Springs division, Granville Island Brewing. It became a more significant part of the company last spring when the Six Pints microbrewing division was announced. Microbreweries, brewpubs and imports have fragmented the market and MolsonCoors wants some of that market share back. “Granville Island brews great beers, every once in a while they’ll come up with a new variant and it sticks,” Molson said. “The nice

thing about being a small brewer is you can try new things. If it works, you stick with it, if it doesn’t you move on to the next thing.” The newest is a Pumpkin Ale, just in time for Halloween. Friday fright night Memo to event promoters: you might want to avoid booking BC Place Stadium on a Friday. While the rest of the world says “Thank God it’s Friday!” the stadium says “Oh no, it’s Friday!” Consider the history. It was Friday, January 5, 2007, when the roof ripped and collapsed. An arm of the Olympic cauldron didn’t emerge from the false floor during the Friday, February 12, 2010, opening ceremony. A cable for the new roof crashed to the ground on Friday, December 3, 2010. Long lineups at box offices and short-supplied concession stands marred the reopening on September 30, 2011. Also a Friday. The BC Lions were 4,000 shy of selling out on their return downtown from their Empire Field exile. Attendance dropped to just over 30,000 for their next game on

October 8. Certainly the service levels at the “reopener” could have influenced the sharp decline and should have suggested to BC Pavilion Corp. (PavCo) that the originally contemplated November 1 reopening would have been wiser. That was the date considered last year by the Crown corporation’s construction committee. Last February, PavCo chairman David Podmore announced September 30 and stuck with it. Meanwhile Quebec steel supplier Structal and

“We’re investing in this brewery to make it even stronger, regardless of the value of the real estate underneath us” – Geoff Molson, director and Montreal Canadiens owner, MolsonCoors

French cable installer Freyssinet went tete-a-tete over tower and cable installation troubles. Structal reported a $25 million cost overrun to shareholders and the application of roof fabric was delayed from February to June. The roof was not fully welded or sealed even two weeks after the opening, allowing rain to seep in. Meanwhile, the stadium’s unionized workers voted to strike and

neighbours are complaining about the brightness of the Terry Fox Plaza advertising screen. With all the chaos, it’s no surprise that the name of Telus or one of its products is not yet on the building. Expect the long-awaited naming rights deal to finally be announced at the end of this month or early November. Crews continue to install, test and practice the Cisco-provided StadiumVision media -management system. Expect the Telus deal to be heavy on value in-kind. The company already has a 10year, $1 billion deal to supply the government. While BC Place’s benefits to citizens in Prince George, Port Hardy and Pouce Coupe are slim to none, Telus and the government are hyping plans to expand and improve mobile phone and broadband Internet service in rural areas. Correction: Scott Cousens is director of capital markets for Vancouver-based global mining group Hunter Dickinson Inc. and the donor of $23 million to the MultiSport Centre of Excellence in Burnaby. He was incorrectly identified in the previous Golden Goals column (issue 1145; October 4-10). • 2010goldrush@gmail.com twitter.com/bobmackin

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FOCUSONSUCCESS

Advertising Feature

A d v e r t o r i a l

p r o f i l e

Junior Achievement

Creating a new generation of entrepreneurs and business leaders in B.C.

Noa Glouberman

ritish Columbia, quite literally, means business. According to the latest figures from BCStats, approximately 395,000 small businesses were operating in the province in 2009, accounting for over 1 million jobs or 57% of privatesector employment – the highest rate in the country. “Small business is responsible for 98% of all business in B.C; it is obviously a very large and solid economic factor for all of us,” confirms Jan Bell-Irving, president of Junior Achievement BC (JABC), a not-for-profit organization. “That is why it is so important to make sure that young people in this province receive the education they need in the areas that count in order to plant the seeds of transformational success now. ” But according to a new 2011 report prepared independently by the Boston Consulting Group (BCG) entitled Making An Impact, which measures Junior Achievement Canada’s role, impact and reach, “There is an absence of sufficient business and basic financial literacy skills education in Canada’s primary and secondary school systems.” Fortunately, JA has been committed to closing that gap since 1955, offering its highly engaging brand of educational programs in the areas of workreadiness, entrepreneurship and financial literacy to youth in elementary, middle and high schools across the country. “In Canada, Junior Achievement reaches over 230,000 students with over 1.4 million hours of instructional hours annually,” reveals BCG, which also “attributes $425 million per year in Canada to direct entrepreneurial activity by Achievers.” “Those are tangible numbers that show a staggeringly real impact, about which we can be very proud,” says Bell-Irving, adding that approximately 30,000 students are specifically benefiting from JABC on an annual basis. “Beyond this exciting, new data confirming to our donors, volunteers, parents, teachers and students that our efforts and investments are truly yielding terrific results, what we want to do is to reach out further, to an

Junior Achievement of BC (JABC) manager of marketing and communications Christopher Hindle (left) with Paradise Coffee owner Massimo Mandarino. According to Mandarino, a former Junior Achiever, JABC gave him some of the real-world business skills needed to become an entrepreneur. even more diverse group of students,” she says. “Our primary goal is to reach the kids who are experiencing the biggest gap in skill development, whether in urban cores or the rural heartland, from corner-to-corner of the province.” JABC’s current reach is impressive. Of the 1,092 programs delivered to students in B.C. during the 2010-11 school year, Bell-Irving says that over 50% were conducted outside of the Lower Mainland and Fraser Valley hubs. “Currently we are engaged in 49 of the 60 school districts provincewide,” she says. “At this point it is so important to both maintain and extend our reach, so that potentially all B.C. kids could benefit from our programs.” Among JABC’s unique offerings: Our Business World, which lets elementary students experience making big decisions in different areas of a small manufacturing operation and

Dollars with Sense, which gives junior high school students the personal money management skills that they need in order to make better economic decisions. These and other programs, says Bell-Irving, can only be coordinated and conducted with JABC’s roster of over 750 volunteer mentors – B.C. businesspeople dedicated to delivering the organization’s programs in provincial classrooms, and transforming the key concepts of its lessons into a message that empowers and inspires. “Our mentors are integral to the children’s success,” she says. “We put a mentor in front of youth and they can usually get through to them where their parents possibly cannot.” Who better to attest to this than a former Achiever? In 1995, Massimo Mandarino participated in JABC’s signature Company Program, which inspires high school students to understand the role of business

JABC’s current reach is impressive. Of the 1,092 programs delivered to students in B.C. during the 2010-11 school year, Bell-Irving says that over 50% were conducted outside of the Lower Mainland and Fraser Valley hubs. in our society by creating an enterprise of their own in collaboration with a professional business consultant. Back then, says Mandarino, who attended Centennial High School in Coquitlam, the 12-week program was known as Project Business, and his volunteer advisor was a man named Doug Morneau. “My classmates decided to run a coffee cart in the school,

and I remember Mr. Morneau explaining to us all aspects of how to promote the business, how to market it and how to finance it,” Mandarino recalls. “A lot of it was new to me, and it helped to hear it coming from someone who was actually running a real business in the real world.” When asked about his work as a volunteer mentor, Morneau, a seasoned businessman who heads up Rhino Marketing Inc. in Port Coquitlam, remembers, “The tough part was stepping back and letting the kids figure it out as they came across different obstacles.” Mandarino and his classmates, Morneau explains, “came up against some resistance to their idea from the school cafeteria, to which I said, ‘Hey, welcome to your first labour dispute.’ Then, when they discovered there was a problem with getting electricity to their cart, they came up with a plan to use propane instead. They were really thinking on their own and using some real-world business skills to solve problems.” Years later, mentor and student were serendipitously reunited at a charity event in Coquitlam. By then, Mandarino, who learned from Morneau that “business is a rocky road – you need persistence and common sense to get over the rough patches and not give up,” had launched his own micro-roasting company, Paradise Coffee. “I was surprised that he remembered me,” says Mandarino of the chance encounter. “I told him that I am self-employed and that he had really made an impression upon me as a business mentor, in high school. Now, he’s one of my clients.” “Massimo did a great job coming in and presenting his pitch to us, and Paradise is now the coffee supplier for our office,” Morneau confirms. “It is a real bonus for me that I was able to reconnect with one of the students from that classroom after so many years. It was great to work with the kids, to meet them and find out what their perception of business is, and now to see one of them successfully running their own business – it is extremely gratifying. It shows and proves to me that what JABC has done and continues to do in B.C. is really making a positive difference.” •

Inside Premium Brands expands — 19 Series of acquisitions helps set table for food manufacturer’s eastern expansion

BC-based Annual News Report

list

October 18–24, 2011; issue 1147

Top 100 national and global companies based in B.C. — 18, 20, 22, 23

B.C.’s global reach continues to shrink Entrepreneurial effort, competitive business climate keys to increasing the province’s international corporate presence

Vancouver skyline: merger and acquisition activity in B.C. and the high cost of living in Metro Vancouver continue to reduce the number of head offices in the province

By Richard Chu

he global presence of B.C.’s 100 largest companies with national and international operations continued to decline in 2011. But the drop, which continued last year’s decrease, hasn’t resulted from uncertainty over the international economy. Not yet, at least. Total employment of companies on this year’s Business in Vancouver list edged lower this year to 326,531 from 328,946 in 2010. Since 2009, the number of staff employed by companies on the list has fallen 1.6% from 332,000 employees in 2009. Companies in the forestry, services and tech sectors reported most of the declines, which were offset by job increases in the retail, manufacturing and mining sectors over the past year. Despite the overall decline in employment, nearly half of the companies on the list (45) reported staff increases.

Kristen Tisdale, Ernst & Young: “we’ve proven that we can absolutely be home to some of the most successful companies in the world”

A few companies accounted for the lion’s share of the job growth. Among them was Northland Properties Corp., which added 1,950 employees to its staff of 8,250 over the past year. Also, Lululemon Athletica Inc. (Nasdaq:LULU) increased its staff by 1,353 employees as it continues

to roll out its aggressive expansion plans. Over the past year and a half the yogawear retailer has opened 33 stores. As of July 31 it had 147 locations. In the first half of the year, the company posted a 37% revenue increase to $399.1 million from $290.5 million in the same period in 2010. Less than a quarter of the companies on this year’s list lost jobs, but the bulk of them posted less than 50 job cuts. The largest job declines this year, however, were due to strategic divestitures rather than major business or economic challenges. Vancouver’s Versacold International Corp., Canada’s largest cold-storage company, dropped nearly 74% of its staff because it completed the sale of its international division to Americold Realty Trust last December. The staff declines at Richmondbased Macdonald, Detwiller and Associates (TSX:MDA) resulted from the $850 million sale of its property information division to

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Companies in the forestry, services and tech sectors reported most of the declines, which were offset by job increases in retail, manufacturing and mining Intrawest’s stake in North America’s largest ski resort to roughly 34% after the IPO closed last November. Foundation remains strong for head office jobs in B.C. While merger and acquisition activity in B.C. has reduced

the number of head offices in the province over the years, the same market forces that drive corporate takeovers and consolidation can also help local companies expand. Kirsten Tisdale, Ernst and Young’s B.C. advisory services leader, noted that M&A has been a key way for many B.C.-based companies to expand their market beyond Vancouver’s relatively small base. “The biggest impediment to growing into these very large companies is the fact that we have a very small market here. When you don’t have a large market locally, acquisitions are a way to buy yourself into markets in a more rapid manner than growing organically.” Vancouver’s General Paint Corp. is a recent example. Celebrating its 100th anniversary in April, the company recently expanded its operations in Eastern Canada by acquiring Societe Laurentide for an undisclosed sum. In addition to adding to its See Expansion, 21

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List

Daily business news at www.biv.com October 18–24, 2011

Top Top100 100national nationaland andglobal companies based inbased B.C. in B.C. global companies

Business class has never been more luxurious.

Ranked by number of staff nationally/worldwide Primary business

Telus Corp

Communications products and services All provinces in Canada

File: 1222.Oct.11.1_Merc_BCBus_earlug 1998 $9.8 bil. 8,0001 34,1001 $9.6 bil. 8,000 34,1002 Trim: 2” x 1.5”

Jim Pattison Group

Diversified

1961

Best Buy Canada Ltd

Finning International Inc

Consumer electronics retailer and etailer (home office, home theatre, entertainment and appliances) Distributor of heavy equipment

Darren Entwistle, president and CEO Robert McFarlane, executive vice-president and CFO North America, Central Jim Pattison, managing director, CEO and America, Europe, Asia, Middle chair East All provinces in Canada Mike Pratt, president and COO

Canada, U.K., Chile, Argentina, Mike Waites, president and CEO Bolivia, Uruguay

1933

Goldcorp Inc

Gold mining

North America and South America

Ian Telfer, chair Charles Jeannes, president and CEO

3 11,506BC1 931 • Vancouver, 1994 $3.9Wbil. Suite 730 - 1201 Pender Street $3.1 bil.3 93 • Fax: 604.639.2447 11,5065 604.639.2266 V6E 2V2 • Tel:

Northland Properties Corp

Hotels, real estate, restaurants

B.C., Alberta, Saskatchewan, Quebec, Ontario

Robert Gaglardi, chair Tom Gaglardi, president

1963

$611 mil. $549 mil.

Keg Restaurants Ltd

Steakhouse restaurants

Canada, U.S.

1971

$468.5 mil. NP $463 mil. NP

8,600 8,600

HSBC Bank Canada

Banking and financial services

Canada

David Aisenstat, chair, president & CEO Jim Croteau, COO Doug Smith, EVP James Henderson, EVP Lindsay Gordon, president and CEO

1981

$2.5 bil. $2.6 bil.

4,005 4,150

8,3596 8,4916

Teck Resources Ltd

Copper, coal, zinc and gold production

Canada, U.S., Peru, Chile

Don Lindsay, president and CEO

2001

$9.3 bil. $7.7 bil.

NP NP

8,3001 8,300

First Quantum Minerals Ltd

Copper mining

Zambia, Mauritania, Finland, Australia, Peru

1996

$2.4 bil.3 $2.1 bil.3

4 4

7,677 6,904

Pan American Silver Corp

Silver mining

Mexico and Peru

Clive Newall, president Philip Pascall, chair and CEO Martin Rowley, executive director, business development Ross Beaty, chair Geoff Burns, president and CEO Robert Doyle, CFO

1994

NP 38

7,1001 7,1007

Intrawest ULC8

Developer and manager of experiential North America destination resorts

Bill Jensen, CEO Mike Forsayeth, CFO

1976

$650.9 mil.3 $519.4 mil.3 NP NP

NP NP

7,0009 11,000

London Drugs Ltd

Retail drugs and mass merchandiser

B.C., Alberta, Saskatchewan, Manitoba

Wynne Powell, president and CEO Brandt Louie, chair

1945

$1.6 bil.9 $1.6 bil.9

NP 3,9609

7,000 7,500

West Fraser Timber Co Ltd

Forest products

B.C., Alberta, southeastern U.S.

Henry Ketcham, chair, president and CEO

1955

$2.9 bil. $2.4 bil.

2,895 2,845

6,932 7,315

Teekay Corp

Energy shipping

$2.1 bil.3 $2.5 bil.3

232 213

6,300 6,300

Ledcor Group of Companies

Diversified construction company

Peter Evensen, president and CEO Vincent Lok, executive vice-president and CFO Ron Stevenson, COO Dave Lede, chair and CEO Cliff Lede, vice-chair

1973

1947

$1.6 bil. $2.3 bil.

NP NP

5,642 5,500

Paladin Security

NP NP

1,875 1,950

5,175 5,150

Canfor Corp

Ashley Cooper, CEO Ted Reid, CFO Leo Knight, COO Don Kayne, president and CEO

1976

Guard services, home alarm installation, monitoring, mobile patrol, K9 patrol, emergency preparedness Forest products

North and South America, Africa, Europe, Middle East, Asia, Australia B.C., Alberta, Ontario, California, Colorado, Arizona, Georgia, Hawaii, Illinois, Nevada, Texas, Washington B.C., Alberta, Manitoba, Ontario, Nova Scotia

1938

$2.4 bil. $2.1 bil.

3,685 4,000

4,690 5,000

Lululemon Athletica Inc

Yoga-inspired clothing retailer

Canada, U.S.

Great Canadian Gaming Corp

Gaming and entertainment and hospitality

B.C., Ontario, Nova Scotia, Washington state

Kal Tire

Tire and mechanical sales and service

Canada

Eldorado Gold Corp

Gold producer, developer and explorer; Brazil, Greece, Turkey and iron ore producer China

CHC Helicopter Corp10

Imperial Parking Corporation11

Provider of helicopter services to the global offshore oil and gas industry in more than 30 countries Parking management

North and South America, Europe, Africa, the Middle East, Asia, Australia Thirty-four cities across Canada and the U.S.

T & T Supermarket12

Retail supermarket, ethnic specialty foods and Asian gourmet

B.C., Alberta, Ontario

555 Robson St, Vancouver V6B 3K9 P: 604-432-2151 F: 604-432-9681 www.telus.com 1067 Cordova St W Suite 1800, Vancouver V6C 1C7 P: 604-688-6764 F: 604-694-6917 www.jimpattison.com 8800 Glenlyon Pkwy, Burnaby V5J 5K3 P: 604-435-8223 F: 604-412-5237 www.bestbuycanadaltd.ca 666 Burrard St Suite 1000, Vancouver V6C 2X8 P: 604-691-6444 F: 604-691-6440 www.finning.com 666 Burrard St Suite 3400, Vancouver V6C 2X8 P: 604-696-3000 F: 604-696-3001 www.goldcorp.com 1755 Broadway W Suite 310, Vancouver V6J 4S5 P: 604-730-6610 F: 604-730-4645 www.northland.ca 10100 Shellbridge Way, Richmond V6X 2W7 P: 604-276-0242 F: 604-276-2681 www.kegsteakhouse.com 885 Georgia St W Suite 300, Vancouver V6C 3E9 P: 604-685-1000 F: 604-641-2506 www.hsbc.ca 550 Burrard St Suite 3300, Bentall 5, Vancouver V6C 0B3 P: 604-699-4000 F: 604-699-4750 www.teck.com 543 Granville St 8th Floor, Vancouver V6C 1X8 P: 604-688-6577 F: 604-688-3818 www.first-quantum.com 625 Howe St Suite 1500, Vancouver V6C 2T6 P: 604-684-1175 F: 604-684-0147 www.panamericansilver.com 375 Water St Suite 710, Vancouver V6B 5C6 P: 604-695-8200 F: NP www.intrawest.com 12251 Horseshoe Way, Richmond V7A 4X5 P: 604-272-7400 F: 604-272-7579 www.londondrugs.com 858 Beatty St Suite 501, Vancouver V6B 1C1 P: 604-895-2700 F: 604-681-6061 www.westfraser.com 550 Burrard St Suite 2000, Vancouver V6C 2K2 P: 604-683-3529 F: 604-844-6600 www.teekay.com 1067 Cordova St W Suite 1200, Vancouver V6C 1C7 P: 604-681-7500 F: 604-681-9700 www.ledcor.com 4664 Lougheed Hwy Suite 295, Burnaby V5C 5T5 P: 604-677-8700 F: 604-677-8701 www.paladinsecurity.com 1700 75th Ave W Suite 100, Vancouver V6P 6G2 P: 604-661-5241 F: 604-661-5235 www.canfor.com 1818 Cornwall Ave Suite 400, Vancouver V6J 1C7 P: 604-732-6124 F: 604-874-6124 www.lululemon.com 13775 Commerce Pkwy Suite 350, Richmond V6V 2V4 P: 604-303-1000 F: 604-279-8605 www.gcgaming.com 2501 48th Ave, Vernon V1T 3P9 P: 250-542-2366 F: 250-542-1218 www.kaltire.com 550 Burrard St Suite 1188, Vancouver V6C 2B5 P: 604-687-4018 F: 604-687-4026 www.eldoradogold.com 4740 Agar Dr, Richmond V7B 1A3 P: 604-276-7500 F: 604-232-7385 www.chc.ca 601 Cordova St W Suite 300, Vancouver V6B 1G1 P: 604-681-7311 F: 604-681-4098 www.impark.com 21500 Gordon Way, Richmond V6W 1J8 P: 604-276-9889 F: 604-232-8683 www.tnt-supermarket.com

Sources: Interviews with above firms and BIV research. NR Not ranked NP Not provided 1 - 2010 figure 2 - As of March 31, 2010 3 - Converted from U.S. dollars 4 Canadian figure only 5 - Includes full-time staff, hourly workers and contractors 6 Canadian figures only 7 - Includes employees and contractors 8 - Acquired by Fortress Investment Group in October 2006 9 - BIV estimate 10 - Acquired by First Reserve Corp. in $3.7 billion deal in 2008 11 - To be acquired by the Ontario Teachers' Pension Plan in a deal announced in July 2011 12 - Sold to Loblaws in July 2009 for $225 million 13 - 2009 figure

Location of operations

PUB: Revenue BC Business Year No. B.C. No. of DATE: Oct 18 founded '10/'09 staff employees '11/'10 '11/'10

Company

Rank '11

B.C., Alberta, Quebec, North and South Carolina

Senior executive(s)

Client: Mercedes

$7.2 bil.

16,553 17,889

33,000 31,000

3 2:55 2011bil. Time: PM Date: Oct 12 $5.6 4,042 1982 NP $5.812, bil.113 – CB File Created: OCt

19,9444 19,7084

Job: Oct Newspaper $7.1 bil. Docket: 11-MER-1222

Colour: 4C

PR: CW:

$4.6 bil. $4.7 AD: bil.

NP NP

AE:

11,9511

CD: 11,951 OP: CB

5,400 4,750

Proof:

10,200 8,250

Christine Day, CEO 1998 Chip Wilson, board chair and chief innovation and branding officer Ross McLeod, chair and CEO 1982 Rod Baker, president

$711.7 mil.3 9809 $517.2 mil.3 770

4,572 3,219

$383.5 mil. 3,1001 $382.2 mil. 3,100

4,5001 4,500

Robert Foord, president Ken Chaun, CFO

1953

$1.1 bil. $857 mil.

NP 1,417

4,500 4,000

Paul Wright, president and CEO Norman Pitcher, COO Fabiana Chubbs, CFO Bill Amelio, president and CEO Rick Davis, CFO

1992

$814.8 mil.3 $411.9 mil.3 $1.4 bil.9 $1.3 bil.

411 41

4,4481 4,448

NP 782

4,4001 4,400

Allan Copping, president and CEO

1962

NP NP

4,000 3,900

Cindy Lee, CEO

1993

$260.6 mil.3 $263.1 mil.3 NP NP

2,200 NP

4,000 3,50013

Do not miss the Book of Lists, a compilation of lists featured in BIV, including biggest law firms, construction companies, biotech firms and many more. Free to subscribers ($79.95 plus HST for one year) or $35 plus HST as a separate purchase. Purchase lists as Excel files at www.biv.com/listsforsale.

1987

Business in Vancouver makes every attempt to publish accurate information in The List, but accuracy cannot be guaranteed. Researched by Richard Chu, lists@biv.com.

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Top 100 B.C.-based Companies 19

October 18–24, 2011 Business in Vancouver

Acquisitions set table for food manufacturer’s eastern expansion Piller Sausages purchase is the largest in Premium Brands’ 94-year history

$1,000,000 800,000 600,000 400,000 200,000 2005

2006

2007

2008

2009

2010

2012 estimate

Source: Premium Brands

sales. The company’s overall strategy is to integrate vertically so it can produce highend products and deliver them directly to customers. For example, Premium Brands manufactures and delivers Bread Gardenbranded sandw iches to Chevron Town Pantry convenience stores. It also delivers protein to hospitals, restaurants and hotels. The Piller acquisition will make Premium Brands the first national player specializing in producing and delivering high-end deli meats across Canada. It could also increase profits because Premium Brands can reduce expenses for production, warehousing and transportation. Piller meats sell primarily in Ontario; sales of Grimm’s Fine Foods products are focused in Western Canada. Savings can accrue because both brands sell small a mounts in t he ot her’s bailiwick. “ W h e n y ou l o o k a t freight alone, we’re talking significant dollars [to transport meat products across the country],” said

Prem iu m Br a nd s CEO George Paleologou. “So we would look at producing some of Piller’s products out here. That would save a lot of money.”

“They don’t sell consumer discretionary items. You can’t choose not to eat in tough times” – Sheila Broughton, analyst, PI Financial Corp.

PI Financial Corp. analyst Sheila Broughton likes the way Premium Brands is spreading its reach outside B.C., where one-third of its 2,800 employees are based. “They have a very solid business in B.C.,” she told Business in Vancouver, “and they now want to replicate that in other geographic regions.” For example, the company’s FK Foods acquisition included a manufacturing facility in Nevada and its Piller acquisition came with five facilities in Ontario. “I wouldn’t say that I have a red flag on any part of their business right now,”

said Broughton, who has a buy rating on the company and a price target of $21 – a 35% premium on the company’s closing price September 28. Still, Broughton is watching closely to ensure that the company successfully integrates Maximum Seafood, which is Premium Brands’ first foray into delivering live seafood to customers. A bigger obstacle could be the volatile economy if sagging stock markets prompt grocery shoppers to either limit their purchases of products such as high-end bacon or to buy smaller sizes. Broughton groups grocery shoppers into one of three categories: •people who always buy the lowest priced products; •people who of ten buy name brands, but shift purchasing to products that are on sale; and •people who buy what they want with little regard to the price. Premium Brands’ target shoppers are in the latter two categories, and Broughton believes company sales could suffer if people in the middle category start to cut back. “It’s not a big concern. We’ve gone through a fairly strenuous recessionary period, and Premium Brands weathered that quite well,” Broughton said. “They don’t sell consumer discretionary items. You can’t choose not to eat in tough times. And they have a nice diversified mix – from pasta to seafood to sandwiches.” •

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remium Brands Holdings Corp. (TSX:PBH) has steadily expanded its high-end food manufacturing and distribution sales through boom years and recessionary times and is poised to kick growth into high gear. The Vancouver-based company closed the largest acquisition in its 94-year history in September when it spent $102.7 million to buy Ontario-based Piller Sausages & Delicatessens Ltd. Premium has made more than 40 acquisitions in the past decade. Recent purchases include: •Les Aliments Deli Chef from Canada Bread Co. Ltd. (TSX:CBY) for about $8 million in February; •Seattle’s FK Food Group Inc. for $42.5 million in October 2010; •Nanaimo’s HUB Fisheries for an undisclosed amount in late 2010; and •a 76% stake in Toronto’s Maximum Seafood for an undisclosed amount in July 2010. The transactions combine to enable Premium Brands to generate revenue at a rate of roughly $900 million annually, or about 68% more than the $535.3 million the company generated in 2010 – its best year thus far for sales. Growth will not come exclusively from including Piller’s $180 million in annual revenue. Premium Brands has six main business segments – many of which overlap and provide opportunities to leverage

Premium Brands’ revenue (in thousands)

By Glen Korstrom

gkorstrom@biv.com

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List

Daily business news at www.biv.com October 18–24, 2011

Top 100 national and global companies based in B.C. Ranked by number of staff nationally/worldwide Company

Primary business

Senior executive(s)

Year Revenue No. B.C. No. of founded '10/'09 staff employees '11/'10 '11/'10

Shato Holdings Ltd

Restaurant operations, food processing North America and real estate

Ronald Toigo Peter Toigo, managing directors

1969

$410 mil. $420 mil.

NP NP

3,900 3,700

Tolko Industries Ltd

Manufacturing and marketing of specialty forest products

B.C., Alberta, Saskatchewan, Manitoba

Al Thorlakson, executive chair Brad Thorlakson, president and CEO

1956

NP NP

3,100 NP

Gateway Casinos & Entertainment Ltd

Gaming

B.C., Alberta

Lorenzo Creighton, CEO

1992

$257.6 mil. NP $248.7 mil. NP

2,892 2,979

Premium Brands Holdings Corp1

Specialty food manufacturing and differentiated food distribution

Western Canada, Washington George Paleologou, president and CEO state

1917

$535.2 mil. 600 $462.8 mil. 600

2,800 2,183

Eastern Platinum Ltd

Platinum group metal producer

South Africa

2005

$159.6 mil.2 7 $127.2 mil.2 7

2,759 3,160

Coast Hotels & Resorts

Hotel ownership, management and franchising

British Columbia, Alberta, Northwest Territories

1972

$208.3 mil. NP $191.8 mil. 1,550

2,500 2,500

Creation Technologies Inc

Contract electronic manufacturing services provider

Canada, U.S., China

1991

$479 mil. $408 mil.

400 400

2,500 2,100

Versacold International Corp

Public refrigerated warehousing and transportation

Canada

Arthur Tymos, president and CEO Michael Walsh, CFO Geoff Reed, chair Joel Smith, CEO

1946

$339.8 mil. 675 $1.3 bil. 705

2,500 9,600

Electronic Arts

Interactive entertainment software

Jon Lutz, VP and CFO, EA SPORTS Roy Tessler, VP Operations, EA Canada

1982

$3.7 bil.3 $4.2 bil.3

2,4004 2,5004

Glentel Inc

Thomas Skidmore, chair, president and CEO Jas Boparai, CFO

1963

$412.3 mil. 386 $308.1 mil. 340

2,230 2,130

MacDonald, Dettwiler and Associates Ltd

Provider of innovative and reliable telecommunications services and solutions in Canada and the U.S. Advanced information solutions

Burnaby, Montreal, Edmonton, Kitchener/ Waterloo Canada, U.S. Canada, U.S., U.K., India, Australia

Daniel Friedmann, president and CEO

1969

$689 mil.5 795 $1 bil. 785

2,200 3,100

Silvercorp Metals Inc

China

2004

$172.3 mil.2 NP $122.4 mil.2 NP

2,2006 2,200

Glacier Media Inc7

B.C., Alberta, Saskatchewan, Manitoba, Ontario, Quebec

Rui Feng, chair and CEO Myles Gao, president and COO Maria Tang, CFO Lorne Waldman, corporate secretary Sam Grippo, chair Jonathon Kennedy, president and CEO

2000

$242.6 mil. NP $229.1 mil. NP

2,1486 2,1938

1-800-GOT-JUNK?

Removes unwanted junk from homes and businesses

Canada, U.S., Australia

Brian Scudamore, founder and CEO

1989

$88 mil. NP

185 160

2,025 1,9009

Corix Group

Providing products for water and wastewater distribution systems

Brett Hodson, president and CEO

1999

$486.2 mil. NP $403.6 mil. 390

2,000 2,000

First Majestic Silver Corp

Silver mining

B.C., Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Alaska, Wisconsin, California Mexico

1998

$132.2 mil. 13 $71.5 mil. 13

2,000 1,800

Quadra FNX Mining Ltd

Base-metals mining

Nevada

Keith Neumeyer, president and CEO Ramon Davila, COO Raymond Polman, CFO Paul Blythe, president and CEO Michael Winship, COO Robert (Don) Macdonald, CFO

2002

NP NP

1,9026 1,902

Catalyst Paper Corp

Paper and pulp manufacturing

British Columbia, Canada Arizona, U.S.

Kevin Clarke, president and CEO

2001

$986.3 mil.2 $524.8 mil.2 $1.2 bil. $1.2 bil.

NP NP

1,800 1,800

New Gold Inc

Gold mining

U.S., Mexico, Australia, Canada, Chile

Robert Gallagher, president and CEO Randall Oliphant, executive chair

1980

390 20

1,800 1,270

Canaccord Financial Inc

Independent, full-service financial services firm focused on wealth 609 Granville St Suite 2200, Vancouver V7Y 1H2 P: 604-643-7300 F: 604-643-7606 www.canaccordfinancial.com management and global capital markets

Canada, U.S., U.K., China

1950

656 NP

1,684 1,549

Dollar Giant11

Dollar store retail chain

B.C., Alberta, Saskatchewan, Ontario

Paul Reynolds, president and CEO Mark Maybank, COO10 Peter Brown, chair and founder Bradley Kotush, CFO David Kassie, group chair Joseph Calvano

$546.3 mil.2 $369.7 mil.2 $577.5 mil. $477.7 mil.

2001

$100 mil. $95 mil.

NP 8678

1,60012 1,5608

Securiguard Services Ltd

$40.7 mil. NP $37.4 mil. NP

1,600 1,600

PMC-Sierra

Darcy Kernaghan, president and CEO Nigel Bullers, vice-president, operations Branko Bejo, general manager Greg Lang, president and CEO Colin Harris, COO

1974

Integrated security solutions, security B.C. and Alberta officers, K9, mobile, bike, remote video verification Semiconductor innovator transforming North America, Europe, Asia networks that connect, move and store digital content

1992

488 NP

1,550 1,113

Super Save Group of Companies

Yukon, B.C., Alberta, Ontario, Quebec

William Vandekerkhove, president

1977

NP NP

1,540 1,825

Mercer International

Gas and propane retailing, disposal services, propane distribution, fence and portable toilet rentals Pulp manufacturing company with production facilities in Europe and North America

$635.1 mil.13 $496.1 mil.13 $358 mil. $343 mil.

Germany, B.C.

Jimmy Lee, president and CEO Claes-Inge Isacson, COO David Gandossi, CFO

1968

$1.2 bil.14 $982.7 mil.14

3996 399

1,4556 1,455

Rank '11

4088 Cambie St Suite 300, Vancouver V5Z 2X8 P: 604-874-5533 F: 604-874-2066 NP 3000 28th St, Vernon V1T 6M1 P: 250-545-4411 F: 250-549-5353 www.tolko.com 4621 Canada Way Suite 300, Burnaby V5G 4X8 P: 604-412-0166 F: 604-412-0117 www.gatewaycasinos.com 7720 Alderbridge Way, Richmond V6X 2A2 P: 604-656-3100 F: 604-656-3170 www.premiumbrandsholdings.com

1075 Georgia St W Suite 250, Vancouver V6E 3C9 P: 604-689-9663 F: 604-434-1487 www.eastplats.com 1090 Georgia St W Suite 900, Vancouver V6E 3V7 P: 604-682-7982 F: 604-682-8942 www.coasthotels.com 3939 North Fraser Way, Burnaby V5J 5J2 P: 604-430-4336 F: 604-430-4337 www.creationtech.com 2115 Commissioner St, Vancouver V5L 1A6 P: 604-255-4656 F: 604-255-4330 www.versacold.com 4330 Sanderson Way, Burnaby V5G 4X1 P: 604-456-3600 F: 604-456-5000 www.ea.com 8501 Commerce Crt, Burnaby V5A 4N3 P: 604-415-6500 F: 604-415-6565 www.glentel.com 13800 Commerce Pkwy, Richmond V6V 2J3 P: 604-278-3411 F: 604-231-2787 www.mdacorporation.com 200 Granville St Suite 1378, Vancouver V6C 1S4 P: 604-669-9397 F: 604-669-9387 www.silvercorp.ca 1970 Alberta St, Vancouver V5Y 3X4 P: 604-872-8565 F: 604-879-1483 www.glaciermedia.ca 887 Great Northern Way Suite 301, Vancouver V5T 4T5 P: 866-995-5865 F: 604-608-9143 www.1800gotjunk.com 1188 Georgia St W Suite 1160, Vancouver V6E 4A2 P: 604-697-6700 F: 604-697-6703 www.corix.com 925 Georgia St W Suite 1805, Vancouver V6C 3L2 P: 604-688-3033 F: 604-639-8873 www.firstmajestic.com 1055 Dunsmuir St Suite 2414, Four Bentall Centre, PO Box 49185, Vancouver V7X 1K8 P: 604-689-8550 F: 604-689-8556 www.quadrafnx.com 3600 Lysander Ln Suite 200, Richmond V7B 1C3 P: 604-247-4400 F: 604-247-0512 www.catalystpaper.com 666 Burrard St Suite 3110, Vancouver V6C 2X8 P: 604-696-4100 F: 604-696-4110 www.newgoldinc.com

6464 Fraser St, Vancouver V5W 3A4 P: 604-338-1496 F: 604-913-3138 www.dollargiant.ca 1575 Georgia St W Suite 300, Vancouver V6G 2V3 P: 604-685-6011 F: 604-685-0013 www.securiguard.com 8555 Baxter Pl, Burnaby V5A 4V7 P: 604-415-6000 F: 604-415-6200 www.pmc-sierra.com 19395 Hwy No 10, Surrey V3S 6K1 P: 604-533-4423 F: 604-534-3811 www.supersave.ca 650 Georgia St W Suite 2840, PO Box 11576, Vancouver V6B 4N8 P: 604-684-1099 F: 604-684-1094 www.mercerint.com

Sources: Interviews with above firms and BIV research. NR Not ranked NP Not provided 1 - Converted from an income trust on July 22, 2009 2 - Converted from U.S. dollars 3 - Global revenues in U.S. dollars 4 - Canadian staff only 5 - Only includes revenue from continuing operations not sold to TPG Capital for $850 million in February 2011 6 - 2010 figure 7 - Changed name from Glacier Ventures International Corp. on June 24, 2008 8 - 2009 figure 9 - 200 corporate staff plus 1,700 employees system-wide 10 - Also president and COO, Canaccord Genuity Corp 11 - Acquired by Dollar Tree in a $62 million deal 12 - BIV estimate 13 - U.S. dollars 14 - Converted from euros

Location of operations

Silver producer with mining, development and exploration projects located in the People's Republic of China Information communications

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David Cohen, board chair Ian Rozier, president and CEO Horng Dih Lee, CFO, vice-president, finance and corporate secretary Shuhachi Naito, senior vice-president

Downtown Victoria | Downtown Vancouver | Richmond/YVR

1,200 1,300

Business in Vancouver makes every attempt to publish accurate information in The List, but accuracy cannot be guaranteed. Researched by Richard Chu, lists@biv.com.

Top 100 B.C.-based Companies 21

October 18–24, 2011 Business in Vancouver

Expansion: B.C. still failing to cultivate company growth from B.C.’s, 17

portfolio of paint products, t he purchase expanded General Paint’s presence in Quebec and increased the number of dealers that sell its products to more than 1,200. While expansion through M&A is one way to grow a corporate presence, encouraging businesses to continually expand remains a challenge. Jock Finlayson, executive vice-president at the Business Council of BC, noted that only a relatively small number of businesses in B.C. continually grow to become large enterprises. Ensuring local businesses have the right environment to expand is key, said Finlayson. “If you’re going to grow your corporate sector, it’s largely going to be growing companies that are already here.” While it will remain a challenge to convince global companies to set up regional head off ices in B.C., Finlayson suggested government and businesses could be doing more to market

Vancouver’s strengths as an Asia Pacific hub for North America. “I’m not saying it would be a simple task, but in terms of attracting new head offices, Vancouver is a good entry point for Asian companies looking to establish a North American presence.” Several tax incentives have helped boost B.C.’s global prominence. While the film tax credits have helped to boost the province’s film sector, the International Business Activity (IBA) Act has also drawn increasing interest from overseas corporations. Bruce Flexman, president of the International Financial Centre of BC, noted several companies have joined the society in the past year, including the Canadian branch of the Bank of China. Under the IBA program, eligible international business activities receive a full refund of provincial corporate income taxes, which reduces their corporate tax rate in B.C. to 15% from 25%. Flexman noted that Canada’s relatively strong

financial system has also contributed to Vancouver’s improving standing as a global financial centre. According to the latest Global Financial Centres Index released in September, Vancouver jumped to 17th place from 22nd in the world as a desirable place to do international business. “That’s positive news and a reflection of how the international community looks at Vancouver,” said Flexman. But, fundamentally, one of B.C.’s strengths will continue to be its strong entrepreneurialism. Tisdale noted that B.C.’s corporate head office base might be relatively small compared with Toronto’s, but that will change over time. “Vancouver’s only been around 100 years. We’re a new society relative to Toronto or Atlantic Canada where their companies are measured in multi-generations. But we’ve proven that we can absolutely be home to some of the most successful companies in the world.” • rchu@biv.com

Essential Content Local Newspapers

Top 10 mining companies Company Rank Goldcorp Inc. 5 Teck Resources 9 First Quantum 10 Minerals Pan American 11 Silver Eldorado 22 Gold Corp. Eastern 30 Platinum Ltd. Silvercorp 37 Metals Inc. First Majestic 41 Silver Quadra FNX 42 Mining New Gold Inc. 51 Top 10 retailers Company Best Buy Canada Ltd. Finning International Inc. London Drugs Ltd. Lululemon Athletica Inc. Kal Tire T & T Supermarket Shato Holdings Ltd. Glentel Inc. Dollar Giant Mountain Equipment Co-op

Rank 3 4 13 19 21 25 26 35 46 50

Market Leadership

Business and Professional Information

Glacier Media Inc. is an information communications company focused on the provision of primary and essential information and related services through print, electronic and online media.

Investor Relations: Orest Smysnuik 604.872.8565 • Fax: 604.879.1483 1970 Alberta Street, Vancouver BC V5Y 3X4 www.glaciermedia.ca

GVC:TSX

List

Daily business news at www.biv.comâ&#x20AC;&#x192; October 18â&#x20AC;&#x201C;24, 2011

Top 100 national and global companies based in B.C. Ranked by number of staff nationally/worldwide Company

Primary business

Location of operations

Mountain Equipment Co-op

Manufacturer and retailer of outdoor clothing and equipment

B.C., Alberta, Manitoba, David Labistour, CEO Ontario, Quebec, Nova Scotia

1971

$261.4 mil. NP $262.1 mil. NP

1,438 1,4661

International Forest Products Ltd

Forest products

B.C., Washington, Oregon

Duncan Davies, president and CEO

1963

$625.6 mil. NP $389.8 mil. 1,0001

1,365 1,4201

Ivanhoe Mines Ltd

Copper, gold and coal mining

China, Mongolia, Asia Pacific region

1994

$82.2 mil.3 NP $41.2 mil.3 NP

1,3474 1,347

Sterling Shoes Inc5

Footwear retailer

B.C., Alberta, Saskatchewan, Manitoba, Ontario

Robert Friedland, founder and CEO Peter Meredith, deputy chair John Macken, president2 David Alves, president and CEO Daniel Gumprich, CFO

1987

$127 mil. NP $131.2 mil. 6806

1,3014 1,301

Ritchie Bros. Auctioneers Inc

Auctioneer of industrial equipment

Canada, U.S., Europe, UAE, Australia, Mexico, Japan

1958

1,253 1,162

Capstone Mining Corp

Metals and mining

Yukon, Mexico

$368.1 mil.3 $430.8 mil.3 $310.3 mil.3 $286 mil.3

363 320

NP NP

1,2074 1,2077

Aritzia LP

Women's apparel retailer

Canada, U.S.

Peter Blake, CEO Robert MacKay, president Bob Armstrong, COO Darren Pylot, president and CEO Gregg Bush, COO Richard Godfrey, CFO Brian Hill, CEO

1984

$200 mil.1 NP $200 mil. NP

1,2006 1,1001

Concord Security Corp

John Henry, president and CEO Clare Edmundson, VP Mark Forward, GM

1983

NP NP

1,2004 1,200

Village Farms International Inc8

Full range of security services from B.C., Alberta guard and mobile patrol and alarm response to loss prevention, crisis management and private investigation Grower and marketer of hydroponic B.C., Texas produce

Michael DeGiglio, CEO Stephen Ruffini, CFO

2003

$149.1 mil.3 NP $149.1 mil.3 NP

1,2004 1,200

Amica Mature Lifestyles Inc

$41.3 mil. 452 $42.4 mil. 448

1,198 1,107

Flight Centre (Canada)9

Samir Manji, chair, president and CEO Arthur Ayres, CFO, corporate secretary Colin Halliwell, COO Greg Dixon, president Martin Bussell, CFO

1996

Design, development, marketing, B.C., Ontario management and ownership of seniors' housing Travel agency Canada

1995

$130 mil. $125 mil.

1,15510 1,07810

Energold Drilling Corp

Fred Davidson, president and CEO Richard Younker, CFO

1995

$54.6 mil. NP $23.7 mil. 40

1,1004 1,100

China Gold International Resources Corp Ltd11

Contract drilling company with a social South America, Africa, Asia and environmental sensitive approach servicing the international mining sector Gold mining in China China

Xin Song, CEO Heather King, vice-president, finance

2000

$137.2 mil.3 NP $92.6 mil.3 NP

1,018 378

Methanex Corp

1992

$2 bil.3 $1.4 bil.3

NP NP

1,0174 8951

Dan-D Foods Ltd

Canada, U.S., Trinidad, New Zealand, Chile, Egypt, China, Japan, Korea, Belgium, U.K., UAE Canada, U.S., Vietnam, Thailand and China

Bruce Aitken, president and CEO

Dan On, president

1989

NP NP

1,000 1,000

Canlan Ice Sports Corp

Supplier of methanol to major international markets engaged in the production, distribution and marketing of methanol Fine food importer, manufacturer and distributor of cashews, dried fruits, rice crackers, snack foods, spices Ice rink operations

Joey St-Aubin, CEO Michael Gellard, CFO

1956

$69.8 mil. 170 $67.2 mil. 170

Northgate Minerals Corp

Gold and copper mining

B.C., Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Michigan, New Jersey, Indiana Canada and Australia

Kenneth Stowe, president and CEO Peter MacPhail, COO Jon Douglas, senior vice-president and CFO

1919

300 375

950 1,100

Kelowna Flightcraft Group of Companies

Barry Lapointe, president

1970

623 630

940 950

Purdy's Chocolates

Aircraft cargo, heavy maintenance and Canada, U.S. aircraft modifications, repair and overhaul, avionics, pilot flight training, leasing Chocolates, nuts, ice cream and B.C., Alberta, Ontario seasonal gifts

$499.5 mil.3 $553.8 mil.3 $235.2 mil. $238 mil.

Karen Flavelle, president and CEO

1907

NP NP

663 663

896 896

Sierra Systems12

Cal Yonker, CEO Warren Beach, CFO

1966

$209 mil.1 NP $209 mil. 320

884 925

Sierra Wireless Inc

$669.7 mil.3 $601.1 mil.3 $432.1 mil. $484.8 mil.

2364 2661

8804 9471

Inland Group

NP 490

863 854

General Paint Corp

Manufacturing and sales of paint

Canada, U.S., U.K., Hong Kong, Jason Cohenour, president and CEO China, Australia, Japan, France, Luxembourg Canada, U.S. Leigh Parker, chair Richard McConnachie, vice-chair Bill Currie, president Les Ziegler, CFO Canada with dealers in China, Dale Constantinoff, president and CEO Russia, Poland

1993

Professional service solutions for business re-engineering & strategy, systems integration, application managed services Hardware, software, connected services for mobile lifestyles, machine-tomachine communications North American truck and heavy equipment dealer

1911

$154 mil.1 $154 mil.

350 350

827 827

Raymond James Ltd

Full-service investment firm

Canada

Paul Allison, chairman and CEO

1929

$265.7 mil. NP $214.9 mil. 355

7134 713

Univar Canada Ltd

Wholesale chemical distribution

Canada

Randy Craddock, president Joel Kallner, vice-president, finance

1950

$1.3 bil. $1.3 bil.

66613 68813

149 4th Ave W, Vancouver V5Y 4A6 P: 604-707-3300 F: 604-731-6483 www.mec.ca 1055 Dunsmuir St Suite 3500, Vancouver V7X 1H7 P: 604-689-6800 F: 604-689-6825 www.interfor.com 999 Canada Pl Suite 654, Vancouver V6C 3E1 P: 604-688-5755 F: 604-682-2060 www.ivanhoemines.com 2580 Viscount Way, Richmond V6V 1N1 P: 604-270-6114 F: NP www.sterlingshoes.com 9500 Glenlyon Pkwy, Burnaby V5J 0C6 P: 778-331-5500 F: 778-331-5501 www.rbauction.com 999 Hastings St W Suite 900, Vancouver V6C 2W2 P: 604-684-8894 F: 604-688-2180 www.capstonemining.com 611 Alexander St Suite 327, Vancouver V6A 1E1 P: 604-251-3132 F: 604-251-6575 www.aritzia.com 4710 Kingsway Suite 925 Metrotower 1, Burnaby V5H 4M2 P: 604-689-4005 F: 604-689-3244 www.concordsecurity.com 4700 80th St, Delta V4K 3N3 P: 604-940-6012 F: 604-940-6312 www.villagefarms.com 1111 Melville St Suite 1000, Vancouver V6E 3V6 P: 604-608-6777 F: 604-608-6717 www.amica.ca 1133 Melville St Suite 600, Vancouver V6E 4E5 P: 877-967-5302 F: NP www.flightcentre.ca 543 Granville St Suite 1100, Vancouver V6C 1X8 P: 604-681-9501 F: 604-681-6813 www.energold.com 505 Burrard St Suite 1030, Vancouver V7X 1M5 P: 604-609-0598 F: 604-688-0598 www.chinagoldintl.com

1800 Waterfront Centre, 200 Burrard St, Vancouver V6C 3M1 P: 604-661-2600 F: 604-661-2676 www.methanex.com 11760 Machrina Way, Richmond V7A 4V1 P: 604-274-3263 F: 604-274-3268 www.dan-d-pak.com 6501 Sprott St, Burnaby V5B 3B8 P: 604-736-9152 F: 604-736-9170 www.icesports.com 815 Hornby St Suite 406, Vancouver V6Z 2E6 P: 604-681-4004 F: 604-681-4003 www.northgateminerals.com 5655 Airport Way, Kelowna V1V 1S1 P: 250-491-5500 F: 250-765-1489 www.flightcraft.ca 8330 Chester St, Vancouver V5X 3Y7 P: 604-454-2777 F: 604-301-4402 www.purdys.com 1177 Hastings St W Suite 2500, Vancouver V6E 2K3 P: 604-688-1371 F: 604-688-6482 www.sierrasystems.com 13811 Wireless Way, Richmond V6V 3A4 P: 604-231-1100 F: NP www.sierrawireless.com 2482 Douglas Rd, Burnaby V5C 6C9 P: 604-291-6021 F: 604-299-7819 www.inland-group.com 950 Raymur Ave, Vancouver V6A 3L5 P: 604-253-3131 F: 604-253-1169 www.generalpaint.com 925 Georgia St W Suite 2200, Vancouver V6C 3L2 P: 604-659-8000 F: 604-659-8099 www.raymondjames.ca 9800 Van Horne Way, Richmond V6X 1W5 P: 604-273-1441 F: 604-273-2046 www.univarcanada.com

Sources: Interviews with above firms and BIV research. NR Not ranked NP Not provided 1 - 2009 figure 2 - Until October 2010 3 - Converted from U.S. dollars 4 2010 figure 5 - Converted from an income trust in July 2010 6 - BIV estimate 7 Includes 522 contractors 8 - Converted from an income trust on December 31, 2009 9 - In 2008, Flight Centre North America was divided into Flight Centre (Canada) and Flight Centre (USA) 10 - Canadian staff 11 - Formerly Jinshan Gold Mines Inc. 12 Acquired by Golden Gate Capital in January 2007 13 - Canadian employees only

Canada, U.S.

Senior executive(s)

Year Revenue No. B.C. No. of founded '10/'09 staff employees '11/'10 '11/'10

1987

1949

NP 9751

467 400

107 NP

965 963

Business in Vancouver makes every attempt to publish accurate information in The List, but accuracy cannot be guaranteed. Researched by Richard Chu, lists@biv.com.

www.rbs.ca

Rank '11

Business | Intellectual Property Advanced Education & Research

List

October 18–24, 2011 Business in Vancouver

Top 100 national and global companies based in B.C. Ranked by number of staff nationally/worldwide Company

Primary business

Location of operations

Senior executive(s)

Year Revenue No. B.C. No. of founded '10/'09 staff employees '11/'10 '11/'10

Vecima Networks Inc

Broadband hardware manufacturer

Surinder Kumar, chair, president and CEO Hugh Wood, COO John Hanna, CFO

1988

Fortress Paper Ltd

Ainsworth Lumber Co. Ltd

Specialty paper mills (wallpaper and security paper) and specialty pulp currently producing NBHK with plans for conversion to dissolving pulp Engineered wood products manufacturing

B.C., Saskatchewan (main production facility), New South Wales, Australia (sales office) Switzerland, Germany and Quebec

CanWel Building Materials Group1

Distribution of lumber, building supplies and associated products

Central 1 Credit Union

Wholesale financial services to B.C. and B.C. and Ontario Ontario credit unions

Urban Barn Ltd

Retail home furnishings

B.C., Alberta, Saskatchewan, Manitoba, Ontario

Vision Critical Communications

Market research software

Canada, U.S., Europe, Australia

CKR Global (formally Canpro Global)

Sinclair Dental

Full-service risk mitigation firm: investigation, training, security consulting, protection, risk assessments and pre-employment screening Sales and distribution of dental supplies and equipment

Golden Boy Foods Ltd

Taiga Building Products Ltd

Rank '11

4210 Commerce Circle, Victoria V8Z 6N6 P: 250-881-1982 F: 250-881-1974 www.vecima.com 157 Chadwick Crt Suite 200, North Vancouver V7M 3K2 P: 604-904-2328 F: 604-988-5327 www.fortresspaper.com 1055 Dunsmuir St Suite 3194, Vancouver V7X 1L3 P: 604-661-3200 F: 604-661-3201 www.ainsworthengineered.com 700 Georgia St W Suite 1510, Vancouver V7Y 1A1 P: 604-432-1400 F: 604-436-6670 www.canwel.com 1441 Creekside Dr, Vancouver V6J 4S7 P: 604-734-2511 F: 604-734-5055 www.central1.com 4085 Marine Way Unit 1, Burnaby V5J 5E2 P: 604-456-2200 F: 604-434-2278 www.urbanbarn.com 858 Beatty St Suite 700, Vancouver V6B 1C1 P: 604-647-1980 F: 604-647-1005 www.visioncritical.com 17 Fawcett Rd Suite 225, Coquitlam V3K 6V2 P: 604-517-4545 F: 604-517-4510 www.ckrglobal.com

900 Harbourside Dr, North Vancouver V7P 3T8 P: 604-986-1544 F: 604-986-1543 www.sinclairdental.com

B.C., Alberta, Ontario

Canada

$113.2 mil. 68 $114.2 mil. NP

630 939

Chadwick (Chad) Wasilenkoff, chair and CEO 2006 Alfonso Ciotola, CEO, Landqart and managing director, Dresden Kurt Loewen, CFO Jim Lake, president and COO 1952 Chris Davies, CFO

$281.3 mil. 6 $198.3 mil. 6

620 646

$329.5 mil. 225 $285.9 mil. NP

610 307

Amar Doman, chair and CEO

1989

$1 bil. 105 $408.2 mil. 105

570 669

Don Rolfe, president and CEO Helen Blackburn, CFO Charles Milne, chief Investment officer Linda Letts, president

1944

$169.5 mil.2 $226.7 mil.2 $64.1 mil. $55.2 mil.

389 382

511 497

NP NP

508 NP

1990

Angus Reid, CEO Andrew Reid, president Jason Smith, president, product innovation B.C., Alberta, Manitoba, Robert Burns, president and CEO Ontario, Quebec, Nova Scotia, Ken Cahoon, director, business development Cyprus, UAE, India Brian King, chairman

2000

NP NP

257 193

497 3673

1975

$37 mil. $20 mil.

200 160

470 253

Across Canada

Arjang Nowtash, president

1971

$152 mil. $144 mil.

NP 195

468 417

Private-label manufacturer and distributor of peanut butter, snacking nuts, trail mixes, raisins, dried fruits and raw baking nuts Building products distributor

Canada, U.S.

Richard Harris, president and CEO

1973

$185 mil. $166 mil.

160 1804

450 450

North America

1973

$931.5 mil.5 NP $931.5 mil. 100

450 500

Industrial Alliance Pacific Insurance and Financial Services Inc

Insurance and financial services

Canada

Kooi Ong Tong, chair Cam White, president and CEO Tom Stefan, CFO Gerry Bouwers, president and COO

1951

$927.3 mil. NP $786.7 mil. NP

439 437

Blast Radius

Gurval Caer, president and CEO

1996

NP NP

NP 177

415 360

Nature's Path Foods Inc

Strategic interactive agency focused on Europe, Canada, U.S. strategies that engage consumers and create open brands Breakfast cereal manufacturer North America, U.K., Middle East, Australia, N.Z. and Asia

Arran Stephens, founder and president Ratana Stephens, COO

1985

$220 mil.6 125 $215 mil.6 120

400 350

STEMCELL Technologies Inc

1993

$50 mil. $39 mil.

NP NP

399 345

PEER 1 Hosting

Tissue-culture supplies, cell-separation Vancouver, B.C., Tukwila, WA, Allen Eaves, president and CEO products, cytokines, antibodies, Grenoble, France contract assays and research Co-location, managed and selfCanada, U.S., U.K. Fabio Banducci, president and CEO managed dedicated servers Gary Sherlock, executive vice-president and CFO

1999

NP NP

397 382

McElhanney Consulting Services Ltd

Surveying, engineering, GIS and mapping and environmental services

British Columbia and Alberta Chris Newcomb, president and CEO

1910

$103.4 mil.7 $106.6 mil.7 $54.6 mil. $55.7 mil.

NP NP

376 356

Absolute Software Corp

North America, Latin John Livingston, CEO America, Europe, Middle East, Rob Chase, COO Asia, Australia Errol Olsen, CFO

1993

$64.1 mil. $53.2 mil.

200 207

361 351

PRT Forest Regeneration Income Fund

Specializes in technology and services for the management and security of mobile computers, netbooks and smartphones Forest and other seedlings producer, biofuels and related technology

Canada, U.S.

1988

$26 mil. $30.1 mil.

NP NP

3568 3829

A&W Food Services of Canada Inc

Quick-service restaurants

Across Canada

1956

$794 mil. $757 mil.

NP NP

352 367

Klohn Crippen Berger Ltd

Engineering and environmental consulting

Canada, Peru, Australia

Robert Miller, president and CEO Antony Pollard, CFO, vice-president, finance and administration Paul Hollands, president and CEO Graham Cooke, vice-president, new restaurant expansion Bryan Watts, president

1951

NP NP

35210 352

Read Jones Christoffersen Ltd

Jeff Corbett, managing principal, structural Roger Steers

1948

NP NP

330 NP

Pacific Insight Electronics Corp

Structural design, building science and Vancouver, Victoria, parking planning Nanaimo, Calgary, Edmonton, Toronto Electronic solutions for commercial B.C., U.S., Mexico vehicles and other vehicle sectors

J. Cowan McKinney, chair Stuart Ross, CEO

1987

$29.2 mil. $24.2 mil.

NP NP

325 252

CIBT Education Group Inc

Education

Canada, China, Philippines, South Korea, Vietnam

Toby Chu, president and CEO Dennis Huang, CFO

1994

$56 mil. NP $44.6 mil. NP

324 533

100

Times Telecom Inc

Long distance, mobile phone, Internet, VoIP, conferencing, billspay, eRemit, mobile eLoad, remittance, TV

Vancouver, Toronto, Sydney, Terry Bahar, president Australia, California Alan Yong, CEO

2002

$18.6 mil. $16.2 mil.

315 275

7725 Lougheed Hwy, Burnaby V5A 4V8 P: 604-433-2200 F: 604-433-0051 www.goldenboyfoods.com 4710 Kingsway Suite 800, Burnaby V5H 4M2 P: 604-438-1471 F: 604-439-4242 www.taigaforest.com 2165 Broadway W, Vancouver V6K 4N5 P: 604-734-1667 F: 604-734-8221 www.iapacific.com

1146 Homer St, Vancouver V6B 2X6 P: 604-647-6500 F: 604-689-1963 www.blastradius.com 9100 Van Horne Way, Richmond V6X 1W3 P: 888-808-9505 F: 604-248-8760 www.naturespath.com 570 7th Ave W Suite 400, Vancouver V5Z 1B3 P: 604-877-0713 F: 604-675-7830 www.stemcell.com 555 Hastings St W Suite 1000, Vancouver V6B 4N5 P: 604-683-7747 F: 604-683-4634 www.peer1.com 780 Beatty St Suite 100, Vancouver V6B 2M1 P: 604-683-8521 F: 604-669-5080 www.mcelhanney.com/mcsl 1055 Dunsmuir St Suite 1600, Vancouver V7X 1K8 P: 604-730-9851 F: 604-730-2621 www.absolute.com 1006 Fort St Suite 101, Victoria V8V 3K4 P: 250-381-1404 F: 250-381-0252 www.prt.com

171 Esplanade W Suite 300, North Vancouver V7M 3K9 P: 604-988-2141 F: 604-988-5531 www.aw.ca 2955 Virtual Way Suite 500, Vancouver V5M 4X6 P: 604-669-3800 F: 604-669-3835 www.klohn.com 1285 Broadway W Suite 300, Vancouver V6H 3X8 P: 604-738-0048 F: 604-738-1107 www.rjc.ca 1155 Insight Dr, Nelson V1L 5P5 P: 250-354-1155 F: 250-505-2131 www.pacificinsight.com 777 West Broadway Suite 1200, Vancouver V5Z 4J7 P: 604-871-9909 F: 604-871-9919 www.cibtcorp.com 5811 Cooney Rd Suite 400, Richmond V6X 3M1 P: 604-279-8787 F: 604-279-8775 www.timestelecom.ca

Sources: Interviews with above firms and BIV research. NR Not ranked NP Not provided 1 - Converted from an income trust in January 2010 2 - Net interest income and other income 3 - As of Dec. 31, 2009 4 - B.C. employees 5 - 2009 figure 6 - BIV estimate 7 - Converted from U.S. dollars 8 - 2010 average 9 - 2009 average 10 - 2010 figure

NP NP

Business in Vancouver makes every attempt to publish accurate information in The List, but accuracy cannot be guaranteed. Researched by Richard Chu, lists@biv.com.

>Next week: Biggest post-secondary institutions in B.C.

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Management

Daily business news at www.biv.com October 18–24, 2011

CEO Advantage

Nancy MacKay How to cultivate better business growth CEO challenge: The CEO of a company in a highly competitive industry, with less-than-compelling market drivers, knew that she needed a significant growth strategy. In fact, she believed that without such a strategy, the company would be out of business

due to the difficult industry conditions. At the same time, the board had made it very clear that it was expecting growth far beyond what had been achieved over the last three years. She decided to hold a strategy planning session

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with her executive team, focusing on ways to grow the organization. To her disappointment, her reports spent the session focused on discussing the barriers to success and the company’s past failures, refusing to entertain legitimate ideas. The team was left uni n s pi re d , d e m or a l i z e d and no closer to avoiding disaster. CEO mistake: This CEO made a number of mistakes. First, she leapt straight into strategic planning without first getting buy-in to the goal of significant growth. Most significantly, not only did she fail to create a sense of urgency for change, she neglected to explain the board’s expectation for significant growth. Without agreement that such growth was not only possible, but also necessary, any discussion of strategies was virtually useless. The second error was a

failure to include all key stakeholders in the session. By limiting the planning to the executive team, when others in the company were much closer to customers and competitors, she ensured a lack of credible input and overall resistance to any subsequent plans. CEO solution: After reflection and consultation, our CEO held another session and made the following changes. First, she clearly defined the context for planning, making sure the team understood the board’s specific expectations for significant growth. Next, she created a sense of urgency for change by requiring that participants complete pre-work before the meeting. The team was asked to develop a SWOT (strengths, weaknesses, opportunities and threats) analysis relative to the company’s top three competitors, all of which had

already achieved significant growth. They also had to prepare a customer analysis, including a forecast of customer needs three, five and 10 years

Not only did the CEO fail to create a sense of urgency for change, she neglected to explain the board’s expectation for significant growth out. And, finally, they had to complete an industry analysis including competitors, suppliers, buyers, new entrants and barriers to entry to aid in identifying the organization’s most important market drivers. Next, the CEO invited top talent from the next level down. These were the folks who were accountable for the profit and loss of the business units and were a

lot closer to the grassroots of the business. Not only did this bring much-needed perspective to planning, it would ultimately speed strategy execution. In addition, external “rock stars” – people who had achieved significant growth in the same or a related industry – were invited to share insights and lessons learned as well as inspire the team to realize that significant growth was indeed possible. More work? Perhaps. But the effort made planning infinitely more valuable in the long run with the result that the company’s prospects were much better several months later. • Nancy MacKay is the president of MacKay & Associates (www.mackayandassociates.ca) and the CEO coach and facilitator of 15 CEO and executive forums across Canada with more than 150 members.

Business in Vancouver celebrates B.C.’s most influential business women every year. Past winners over the past 12 years include some of B.C.’s most talented business leaders, whose career paths and individual achievements continue to inspire business people throughout the province.

Nominations are open. Go to www.biv.com/iwib Nomination Deadline: December 2, 2011 Issue: February 2012 Awards Luncheon: March 2012

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Sustainability

October 18–24, 2011 Business in Vancouver

SponSor’S MeSSage

Sustainability

Nina Winham Consumers use carrots to green business

magine this: You get a call from someone who promises to lead a landslide of new customers to your door for a one-day spending spree. In return, they ask what you’ll do to green your operations – primarily by using that landslide of revenue. If you come up with a more compelling plan than the other businesses they approach, the deal is on. You’re on your way to being “carrotmobbed.” Carrotmobs (think carrots, not sticks) started in 2008 in San Francisco, when a small market experienced what can happen when consumers pool their buying power to encourage change. With one-day revenues at $9,200, the market followed through on its pledge to use 22% of the day’s take to do an energy-efficient lighting retrofit. The Carrotmob movement was born. In 2009, Victoria-based ecopreneur Josh Schmidt brought the idea to Canada.

“I thought, here’s an incredible way of making some tangible change in the face of what is seen as an overwhelming challenge: climate change,” he said. “It’s such a big problem, and of course you can make changes in your personal life, but how do you go beyond that? Carrotmob is a great link.” Schmidt, whose consultancy, Small Feet Inc., helps organizations improve their environmental performance, started by targeting coffee shops in Victoria. Discovery Coffee stepped up with a bid to spend 100% of their day’s revenues on green improvements, and thanks to the power of web-based communications, Schmidt rounded up 300 people who increased the store’s daily revenue by about 70%. Discovery Coffee invested in reducing its waste stream and is now operating at close to zero waste levels. “It’s a win-win-win scenario,” said

daily online edition

BUSINESS TODAY Canopy pilots eco-paper, pitches new industry In a step toward commercializing a new eco-friendly paper – and launching a new industry in Canada – Vancouverbased Canopy has partnered with author Margaret Atwood to demonstrate the viability of its product: Second Harvest Paper. The paper is made from straw leftover after a grain harvest plus recycled paper. Last week, Atwood and Canopy – a forest-advocacy non-profit – released a limited edition of Atwood’s new book, In Other Worlds: SF and the Human Imagination, printed on the paper. Earlier this year, Canopy executive director Nicole Rycroft told Business In Vancouver about plans to comFull stories and other local business news at www.biv.com/businesstoday

mercialize Second Harvest Paper as a social enterprise that would fund Canopy’s work. “A high-profile initiative like printing this special edition of Margaret Atwood’s new book on Second Harvest Paper is a critical next step in our work to kickstart commercial-scale production of straw-based papers across North America,” Rycroft told BIV. Rycroft said there’s a clear business case for commercializing the paper. “It promises to spark a whole new resource sector for Canada and a number of the states in the U.S. which then creates green jobs and value-added revenues to farmers.” Jenny Wagler Tuesday, October 11

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Schmidt. “I believe in protesting and going to rallies and making your voice heard, but you can lose steam doing that when you don’t have some sort of defined success. Carrotmob is a very easy, definable success. Here’s what we’ll do, we’re going to focus on this one business, and here’s what they promise to do. Then you arrange this wonderful, fun event, and it happens. “Your Carrotmob group is just buying things they would already buy. We’re getting our voices heard, the planet wins, and the businesses win because they’re investing in

“I believe in protesting and going to rallies and making your voice heard, but you can lose steam doing that when you don’t have some sort of defined success” – Josh Schmidt, eco-preneur

improvements that are probably going to reduce their ongoing costs. Plus they’re getting exposure, and probably new customers, and they’re doing the right thing. There are a lot of benefits across the board.” Schmidt’s next Carrotmob, in conjunction with UVic students, increased daily revenues 350% at Wannawafel at its launch event in Victoria. The company used 100% of the take to shift their supplies to environmentally friendly options and reduce their waste stream. In Vancouver, Saltspring Coffee won its bid to be “mobbed” by offering to spend 110% of their revenues on green improvements. UBC students joined Schmidt to increase Saltspring’s revenues by 30%. Then this spring, Schmidt and students at UVic organized what is touted as the largest Carrotmob ever in North America. The Fernwood Inn, a historic restaurant in Victoria, was the winning bidder for the mob, initially pledging 50% of its revenues for the day, then upping their offer to 100%. The day of the mob, the restaurant announced it would match the mobbers’ expenditures one for one,

meaning 200% of revenues were planned for green upgrades. Nearly 400 people came out to spend, for revenues of $8,000 and a business commitment to $16,000 for energyefficiency improvements. (The Fernwood went on to win BC Hydro’s Energy Fix contest in June, gaining another $35,000 for upgrades and leading to an overhaul of lighting, refrigeration, weatherproofing and ventilation systems – see bchydro.com/energyfix for online videos of the work. Its bid to win the popular vote in the contest was supported by its wide network of carrotmobbers – an example of cascading popular support for green initiatives and the value of gaining good-news business profile. The business is now saving nearly $5,000 per year on energy bills as a result.) Says Schmidt, “In the green movement in the past, environmental action usually had a connotation with negativity. It was, ‘We’re going to boycott this business or protest this summit or have a big rally.’ Now, it’s about positivity: ‘We can tackle these things, we have ways of collaborating.’ Carrotmob is an example of all that coming together.” Schmidt – who reckons he has the most Carrotmob experience of anyone in Canada – has provided help to mobs in Halifax and Toronto. And now that he’s seen the success of enabling businesses through buying power, he has a new carrot to offer. “The next step for Carrotmob is that businesses will approach us and say, ‘Hey, I want to host an event, and here’s what I’m willing to give to green improvements.’ If businesses are interested, tell them to drop a line.” See “Carrotmob Makes it Rain” on YouTube for the story of the first Carrotmob, or the animated “How Organized Consumer Purchasing Can Change Business” on vimeo.com. Or you can just contact the Canadian Carrotmob expert, josh@smallfeet. ca. If you’re lucky, you might rake in a load of orange – and green. • Nina Winham (nina@newclimate. ca) is principal of New Climate Strategies, helping clients build value through sustainability and communications strategy. She writes regularly on sustainability topics. www.newclimate.ca

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Zero waste is the new goal “Businesses and communities choose Waste Managaement because they know we can help them achieve their sustainability goals,” said Chris Lynch, Sales Director for Waste Management-Pacific Northwest. “We listen to customers and deliver innovative, cost-effective solutions that reduce waste and increase recycling,” he said, noting WM’s most popular services: • Sustainability Audits help businesses streamline operations, increase waste diversion and often reduce garbage costs • Food Waste Collection turns food waste into compost for healthy gardens • Property Management Services deliver custom-built solutions for every property and every tenant • The Bagster® “Dumpsterin-A-Bag”® is an economical, “ready-when-you-are” option for construction and clean-up projects • New Clean-Air Trucks reduce greenhouse gases and make for quieter streets How can we help you achieve your sustainability goals? Property Managers and Commercial Customers 604-520-7954 Municipalities Alex Limongelli 604-520-7865 wmcanada.com

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Business tool kit

>“Leadership is a potent combination of strategy and character. But if you must be without one, be without the strategy” – Norman Schwarzkopf, commander of the Coalition Forces in the Persian Gulf War

>“High expectations are the key to everything” – Sam Walton, Wal-Mart founder

>“Your time is limited, so don’t waste it living someone else’s life” – Steve Jobs, co-founder Apple Inc.

>“I like to go for cinches. I like to shoot fish in a barrel. But I like to do it after the water has run out” – Warren Buffett, chairman and CEO of Berkshire Hathaway

>”It is difficult to say who do you the most harm: enemies with the worst intentions or friends with the best” – Edward G. Bulwer-Lytton, English politician and poet

>“Men who do things without being told draw the most wages” – Edwin H. Stuart, American actor Book reviews

Driven: How to Succeed in Business and in Life By Robert Herjavec, with John Lawrence Reynolds HarperCollins Canada, 2010

o meet Herjavec in person is to fall under the spell of the “nice” dragon – the one who fixes you with brilliant blue eyes and instantly discerns what you are proudest of, then compliments you on it. I came under that spell last winter when Herjavec visited my library and raved about its new technology. Herjavec is a Canadian self-made multimillionaire and one of the celebrities on Dragon’s Den – a CBC reality television show, and a worldwide franchise phenomenon that features entrepreneurs who pitch their business ideas to venture capitalists in order to obtain financing. Herjavec sold his original Internet security business to AT&T Canada near the end of the dot-com era. A second company he was associated with was later sold to Nokia for $225 million. His current company – the Herjavec Group – has been described as one of Canada’s fastest-growing technology companies. Also familiar is Herjavec’s rags-to-riches story

of immigration from Croatia to Toronto, suffering poverty and ridicule as a child, waiting tables (and learning valuable business lessons from it) and coming up with his first business idea as the Internet era began to gather speed. Herjavec shares considerable personal insight, discussing how his close-knit and supportive family gave him the resilience to succeed despite the odds. From his mother, he received unqualified affection and support, while his father modelled curiosity and a fearless ability to ask questions. Herjavec’s advice and wisdom are part of what makes this book so compelling, because he seems to have the proverbial golden touch – not only as a serial entrepreneur, but also as an author (his book has been on various bestseller lists). He speaks convincingly as he offers advice from his own hard-learned experiences about topics ranging from getting an early start to the day to ensuring healthy cash flow, focusing on sales and firing underperforming employees. Some of the book’s most fascinating sections include discussions about the qualities that Herjavec believes set entrepreneurs apart – comfort with chaos and uncertainty, absence of fear of failure, the need to be one’s own boss, and higher-thannormal energy and passion for work. What Driven provides is a collection of business homilies – many of which are well-known and repeated elsewhere – about the things our parents taught us: work hard, be yourself,

learn from failure, believe in yourself. But the fact that the insights come from a Canadian success story gives them power and credibility. Like Dragon’s Den, Driven was not written for experienced business people, but to encourage and guide would-be entrepreneurs. What Driven doesn’t provide is a detailed roadmap to building a high-technology company in Canada. However, Herjavec is reportedly working on a second book, which may provide a deeper look at success in the tech industry. Jan Wallace is head of the David Lam Management Research Library at UBC’s Sauder School of Business.

Daily business news at www.biv.com October 18–24, 2011

BizPharmacy

Cyri Jones and Ivan Surjanovic How to convert your website visitors into customers Symptom “We built quite a nice website a while ago, but it has never produced any significant new leads or new clients. Am I doing something wrong?” Recommended medications Ivan: This is a typical case of “website non-performance syndrome.” Many websites today suffer from the same condition. Cyri: Yes, a lot of companies have outgrown the websites they initially built. It’s important to remember, though, that the website still might be producing some branding or information-delivery value. Ivan: Exactly. During my first meeting with clients, umm, I mean patients, I insist that we decide which of the seven web strategies they are most interested in: 1. To improve image; 2. To provide information; 3. To generate leads; 4. To sell; 5. To promote; 6. To deliver; 7. To build relationships. Cyri: And pursuing two or three strategies is fine, as long as they don’t try to do everything at once. Ivan: Yes, to me the key is to be realistic in terms of goals and to see your web marketing as an ongoing project with different priorities over time. Cyri: Here are 10 key tactics that will help you convert your visitors into clients.

The Chairs Are Where the People Go: How to Live, Work and Play in the City by Misha Glouberman with Sheila Heti Faber & Faber, June 2011 (paperback)

chose to review this book because the title intrigued me. Happily, the contents turned out to be pretty interesting too – thoughtful, universally applicable and often LOL-funny. You don’t even have to start at the beginning – you can sample subjects that

pique your interest. Heti is the scribe who thought that her friend Misha’s general observations about life in a big city should be published. As she states in the introduction, “One day, I told him I thought the world should have a book of everything he knows. He agreed to collaborate on this project with me, but only if I promised not to quit in the middle as I always do with everything.” And why should we care about what Glouberman has to say? He’s not particularly original in his thinking, but it’s the manner in which he

1. Be visible. The first thing to check is your rank on search engines for all important phrases (see “How to increase your website’s visibility” – BizPharma – issue 1135; July 26-August 1). Also, you need to seriously consider advertising on Google through the

Reassure your visitors that they have come to the right place Google Adwords program (www.adwords.google.com). Pay-per-click advertising may be the best solution to your problem. 2. Create a landing page. Bring website visitors from Google Adwords to a special page, different from your home page. The landing page is like a sales letter; its purpose is to close the sale and convert the website visitor. 3. Ensure they don’t leave too early. This is critically important; many visitors leave immediately after they land. Reassure your visitors that they have come to the right place. You have the solution to their problem. Catchy headings help here. Also, make sure to focus on benefits in the copy. 4. Provide a call to action. Ask website visitors to call or email now. 5. Provide prominent contact buttons (Call us now; order today, etc.) 6. Provide a guaranty. Describe your return policy and your privacy policy. 7. Provide social proof or credible endorsements.

speaks (writes) that is compelling, and he does provide food for thought on several subjects. “A Decision is a Thing You Make” interested me because I too agonize over decisions (including which books to review!). Many of the chapters have similar practical life/ work applications. The “Negotiations” chapter is stunningly simple and should be required reading for everyone. Donna Kaye is an assistant trade buyer at UBC Bookstore.

8. Provide a contact form. Some people prefer to call you, others like e-mailing, but many will just fill out the form and hit the submit button. That’s all you want! Make sure the form is very simple: first name, company name, phone number and email will be all you need in most cases. Whenever possible, put the small contact form on each page of your site. 9. Provide an incentive if they contact you right away. A discount or a bonus helps a great deal. 10. Test. The key is to test different landing pages. Use A/B test tools, such as www.performable.com/calculator to help you decide which landing page performs the best. Prognosis Ivan: Again, the key is to know what your goals are and then measure progress toward your goals. Think in terms of small steps. That said, the first desired outcome might be just an inquiry through a contact form, rather than an order itself. Decide how many visits, how many leads and how many new customers you want to have each month. Future management of this condition Cyri: Remember: test, test, test! You can’t have a good diagnosis if you aren’t constantly monitoring your symptoms. There are great online tools to help you plan and track your progress, including the online ROI calculator at www.clickz.com/ website-optimization-roi-calculator, as well as cost per acquisition (CPA) calculator at www.clickz.com/cpacalculator. • Cyri and Ivan’s medication rating: ★★★★ Cyri Jones teaches entrepreneurship, project management and information technology at BCIT and Capilano University and is the co-founder of ZedPress.com, a lifelong learning publishing platform and social network. He blogs at 24posts.com. Ivan Surjanovic is a marketing faculty at Capilano University and CEO of iPower Lab.

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October 18–24, 2011; issue 1147

B.C. could see Groupon class action By Jenny Wagler

s an Ontario class action targeting Groupon Inc.’s deal -xpiry provisions joins similar class actions launched south of the border, legal experts say B.C. could well see a comparable class action launched against the “daily deal” company. In June, Toronto law firm Sack Goldblatt Mitchell LLP launched a class action on behalf of representative plaintiff Hitendra Patel. Christine Davies, a lawyer on the case, said the three key components of the case are: •whether the expiry of daily deal vouchers is permitted by Ontario’s consumer protection legislation; •whether Groupon’s policy of redeeming just the amount paid for the Groupon is permitted by the legislation; and •whether the language used to describe Groupon’s terms and conditions is confusing and misleads consumers. The statement of claim states that Patel purchased a $50 groupon for the Gap for $25 from Groupon in the fall of 2010. It says that when shopping at a Gap location shortly after the coupon’s November 19, 2010, expiry date, Patel attempted – but failed – to redeem the groupon for either the face value or purchase price. The class Patel is looking to represent includes anyone in Ontario who purchased or acquired a groupon from Groupon for services or products prior to the date of certification of the action; the action has yet to be certified. “It’s happened at least once, and I expect we’ll hear from a number

of other individuals who’ve encountered the same problem,” Davies said. Companies that have used Groupon’s deals haven’t been named in the suit; just Groupon. “I think from the consumer’s perspective, they deal with Groupon, they purchased the Groupon through Groupon’s website and become bound to Groupon’s terms and conditions so we consider Groupon to be liable,” Davies said.

“Highly publicized lawsuits could damage the meaning and the value of the brand, from the perspective of the consumer” – Steve Kates, associate professor, Beedie School of Business

Patel is seeking: •$110 million in damages; •various orders; •a declaration that Groupon has engaged in unfair practices under Ontario’s Consumer Protection Act; •injunctions halting Groupon from relying on its “illegal contractual terms and representations” and doing so in future; •a declaration that Groupon charged or received illegal fees or payments contrary to Ontario legislation as the result of expiry dates and partial redemption provisions; and •an injunction restraining Groupon from charging or receiving “its illegal fees or payments” in

the future. Both Davies and Vancouverbased class-action lawyer Reidar Mogerman, a partner with Vancouver-based Camp Fiorante Matthews, said a similar class action could emerge in B.C. “It’s a viable case in British Columbia,” Mogerman said. “It makes both procedural sense and it makes substantive sense.” Whether it will emerge, he said, will turn on whether B.C. classaction lawyers think they’ve got a real case. He added that B.C.’s consumer-protection statute is actually stronger than Ontario’s. “There’s no reason you couldn’t have a case like this in British Columbia – in fact it would probably be easier to have a case like this in B.C. than in Ontario.” But Mogerman said such a case wouldn’t hit B.C. businesses that have been using the daily deal site. “I’m very certain that from a legal point of view, it would only hit Groupon,” he said. “Whether each business, from a business point of view, wants to be associated with practices that are called into question – that’s up to that business. But that’s a business question, not a legal question.” Steve Kates is an associate professor at Simon Fraser University’s Beedie School of Business who specializes in marketing and consumer behaviour. “Highly publicized lawsuits could damage the meaning and the value of the brand, from the perspective of the consumer,” he wrote in an email. “On the other hand, consumers do have

Get your point across.

Dominic Schaefer

Legal experts say B.C. could join Ontario, U.S. juridictions in suing Groupon over deal expiry provisions

Reidar Mogerman, a partner with Camp Fiorante Matthews: “there’s no reason you couldn’t have a case like [the Ontario class action against Groupon] in British Columbia – in fact it would probably be easier to have a case like this in B.C. than in Ontario”

experience with coupons which expire and may value Groupon (and its competitors) still favourably regardless.” Davies said a B.C. action could be launched while the Ontario suit is still working its way through the courts.

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“I don’t think there’s necessarily a reason why such a claim would have to be delayed, pending the resolution of the Ontario action.” Groupon did not respond to interview requests. •

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n a David and Goliath story, three small businesses that provide natural beauty and wellness products have grown to compete with big name brands by maintaining an organic growth strategy. In 1992, Jean-Pierre LeBlanc turned treating personal illness into a business venture after he developed a selection of plant-derived essential oils to combat the pain and fatigue he was living with after a car accident. Saje Natural Wellness, a natural bath and body product company, grew from LeBlanc’s research into herbal remedies and his background in chemistry. When his health began to improve more using unique natural blends of aromatherapy compared to the cocktail of prescription drugs he’d been taking, LeBlanc wanted to share his natural solutions with others. “Twenty years ago the concept of wellness didn’t exist,” said LeBlanc, Saje co-founder. “You were either healthy or

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Daily business news at www.biv.com October 18–24, 2011

FOR BUSINESS

For Kate Ross-LeBlanc and Jean-Pierre LeBlanc, natural wellness is good for business

sick. If we can make people feel better just on a personal level, then we feel like we can make the world a better place.” LeBlanc teamed with wife and Saje co-founder Kate Ross-LeBlanc to produce and sell handmade soap, which expanded to body butters, bath salts and skin care lines. The products contain zero petrochemicals, preservatives, artificial colours, synthetics or animal by-products. “We built Saje on two pillars: our commitment to 100% natural ingredients to help our own health and share that gift with people,” said Ross-LeBlanc. “The second pillar is our commitment to customer service.” Sustainabi lit y is t he cornerstone of Saje, including how materials are harvested. “Well-crafted is a method where they pick bark, leaves and roots in a gentle method that makes sure the plant is not harmed,” said LeBlanc. “Tree products are harvested in snippets that let the trees live.” Since 1991, Saje expanded from its first store at the Lonsdale Quay to a head office with nine retail locations in B.C. and is launching a new location on Robson Street. Another small-business success story is All Things Jill, which provides natural and organic personal body-care products. Just like the LeBlancs’ company, Jill Hawker’s business grew from something she was passionate about, natural skin care. In 2004, Hawker had been working in Toronto’s financial district. One Christmas, her company invited employees to bring products to

sell. “I brought [handmade] food, ornaments and soap to the event. The soap took off right away. I call it the ‘hobby that went wild.’” said Hawker, who founded All Things Jill in 2005. From day 1, providing allnatural health products has been the foundation of every product that All Things Jill sells.

“Our customers are looking for healthy choices in the bath and body products they use, but they’re also looking for peace of mind in the choices that they make” – Jules Tough, CEO, Rocky Mountain Soap Company

“Our society is laden with toxicity in food, packaging and vehicle emissions. So many products are chemicalbased,” she said. “When I started the company it was to bring products to people that are healthy.” Hawker also has an eye for filling niche markets. Her Peas in a Pod line features products as safe for new mothers as their babies. “The skin is our largest organ; it absorbs everything,” she said. “We make sure every product is super clean and contains no chemicals, no preservatives and no colourants.” Today, All Things Jill can be found throughout B.C.

and dozens of stores across Canada. Two new stores are opening, and there are negotiations with Whole Foods. Rocky Mountain Soap Company is another natural bath and body-care success story that started as a 300-square-foot shop by founders Karina Birch and Cam Baty in Canmore, Alberta. The store appealed to nature-loving locals who were health-conscious and grew from there. Birch and Baty focused on providing handmade soap, body butter and aromatherapy products that can offer relief to customers with issues like dry and itchy skin. “People often try our products or receive them as gifts and like them so much they buy them for family members,” said Abby Knorr, marketing director for Rocky Mountain. “Our customers are looking for healthy choices in the bath and body products they use, but they’re also looking for peace of mind in the choices that they make. Sustainability should be important in every business; for us it’s just the right thing to do,” said Jules Tough, CEO of Rocky Mountain Soap. The product line expanded to meet growing demand. Today, Rocky Mountain Soap has eight stores, including three in Vancouver, Whistler and Victoria and a 7,000-square-foot workshop. By maintaining a focus on all natural ingredients and following their passions, these three beauty and wellness players have achieved success in local and global markets. • news@biv.com

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October 18–24, 2011 Business in Vancouver

Business Lessons

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Tara Landes How to keep your clients: account review meeting

ncrea si ng re venue is a mong t he top t h ree goals of company owners, and bringing in new clients is what those presidents talk about. Converting new prospects is an easy way to measure the return on investment for a sales implementation, but there is almost always a larger untapped pocket of potential in the clients the company already serves. The first step to accessing this potential is an account review. An account review is a regularly scheduled meeting between a supplier and client held to review performance and further develop the relationship. On the client side, participants include the decision maker, the purchaser and the user of the good or service.

Clients that do not insist on formal reviews with their suppliers find it difficult to provide them feedback, get substandard service and pricing, and tend to drift away when a new, potentially stronger alternative presents itself On the supplier side, the sales rep always attends and may bring the sales manager, president and/or technical expert. Frequency is less important than consistency. For some industries, annual reviews are enough, while for others, quarterly is best. Suppliers without an account review process are often surprised when they lose business and shocked when they discover their competitors are also supply ing product to their client. They speak of “strong relationships” with their clients but also express resistance to asking them the review questions for fear of “wasting their time.” Regrettably, they miss the incongruity between the two statements. Clients that do not insist on for ma l rev iews with their suppliers find it

difficult to provide them feedback, get substandard service and pricing, and tend to drift away when a new, potentially stronger alternative presents itself. This test, while not scientific, will indicate if your compa ny has room for improvement. Are the top 20% of your clients: •aware of your full range of products and services; •single-sourcing from you and comfortable they are getting good value; and •routinely providing referrals and references? If they‘re not, then it’s time to find out why. Questions to ask Describe a great supplier relationship. No one enjoys being put on the spot, so if your first question is, “What do you think about me as your supplier?” you will make them uncomfortable and you’re less likely to get an honest response. Instead, open by asking about their ideal supplier. They’ll likely relax and provide a few key points to consider for your offering. If they give you generic answers such as, “I like good communication” or “I want the lowest prices,” ask them to think of their favourite supplier and draw out what it is that is so great. Questions like, “How quickly do they respond,” “Do they phone or email?” and “How were any bumps handled?” will give them the space they need to give you the information you’re looking for. Tell me about one that was not working. As important as knowing what suppliers are doing right is finding out where they let clients down. Again, you want to put them at ease by asking about their relationships generally, not their relationship with you specifically. However, if a client starts talking about your offering, rather than other suppliers, you must listen. Allow them the time to vent. Remember, you want this feedback so you can improve the relationship. Wr it i ng dow n w h at they’re saying will disrupt your urge to be defensive and will make them feel heard.

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What are the company’s goals for the next few years? Ask open-ended questions about the importance and urgency of these goals. For example, are they planning to double sales? Are they considering introducing a new product line? What will the value of accomplishing those goals be? Are these short-term or long-term plans? Once you have explored the company’s direction, ask about their vision of their suppliers’ part in accomplishing it. What challenges do you anticipate along the way? This is the other side of the goals. What will it cost to achieve them in terms of time, money or personnel? Probe using open questions to understand their direction. Here’s what others are doing successfully. This is when you get to talk. Avoid tel ling t hem what t hey should do and suggest to them what they could do. Refer to a third party to explain what other companies are doing and see if they opt in to wanting a similar solution.

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32 Small Business Sponsored by

Daily business news at www.biv.com October 18–24, 2011

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Revenue streams

Anne Graham Two time-tested tactics focus on profitable revenues and boost your bottom line

ost sma ll-business owners at some point fall into the trap of “any revenue is good revenue.” Yet uncontrolled growth in revenue often leads to a decrease in bottom-line profits. These t wo practica l, actionable tactics will help you boost your bottom line quickly and safely by focusing on profitable revenues to grow your business.

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Fact: Just a 1% decline in price typically leads to a 16% decline in profitability, and I’ll bet you’re discounting a lot more than 1%. These five steps focus on value and drive profitable revenue across a wide range of possibilities: 1. Ra ise less-v isible prices. What are “less-visible prices”? Do you know the difference in extra baggage charges from one airline to the next or the price of Internet services at various major hotel chains? Most businesses have a range of less-visible prices. Brainstorm them, and raise each of them by 5%. 2. Price for value-add services. Your customers are probably following the rule of “do more with less” so ask them how you can expand

your offering to meet their needs and then charge more for something they don’t want to do themselves. Precut and pre-washed vegetables are a good example of this. If no-charge-yetvalue-added services have crept into your business model over time, bundle them into a chargeable “premium service,” and make that the standard for all new customers. 3. Justify a price premium by saving time or money. Consider cost of ownership versus initial purchase price – could your product save time or effort by being shipped or packaged differently? Could your product save money with a longer mean-time-tofailure? For example, cheap printers that end up using a lot of toner could have a low purchace price but a high ownership cost. Clients may pay a premium if they know the ink will be less expensive to replace. As well, if a colour printer has all four colours packaged in one cartridge, when one colour runs low, the whole cartridge has to be replaced. If the inks are packaged in separate cartridges, they can be replaced one at a time, thereby reducing owners’ expenses. 4. De-commoditize your pricing by solving a real problem. Look at the bigger picture of what your customer is actually trying to do as a result of using your product, ask them what drives them crazy trying to do it and then solve that problem. Remember, customers want the hole, not the drill. 5. Justify a price increase by providing peace of mind. Think back to the “nobody ever got fired for buying IBM” days, and you’ll find that the emotional side of the brain is often the decision maker – facts and figures are merely used to support the decision. Make sure your products or services have emotional value to your customers. Are you lower risk? More trustworthy? Offer higher service levels? Have a “cool” factor? Easier to do business with? II. Reduce business costs 15-25% by getting it right the first time, for bottom-line results Sometimes our revenue doesn’t turn into the profit

we expect as a result of what I call “self-inflicted wounds.” Fact: 70% of calls to customer service lines are due to the company’s own failures, not unreasonable customer demands. Fact: Your business may be able to reduce costs-toserve by as much as 25%, and can often sustain an 8% higher price than competitors, just by eliminating common failures. Fact: 80% of service issues are caused by just five categories of complaints. Fact: 97% of most companies’ service time is spent simply responding to the complaint, rather than fixing the source of it. Next Steps 1. Schedule front-line staff (even if that’s just you) to spend one day per week identifying where your failure as a company is resulting in support and service requests from customers and staff.

Just a 1% decline in price typically leads to a 16% decline in profitability, and I’ll bet you’re discounting a lot more than 1% 2. Seek input from customers and staff involved at each stage to identify roadblocks, cumbersome workarounds, inefficient systems and missing information. 3. Solve problems for good at a root-cause level by repeatedly asking, “Why is this occurring?” until the root cause is identified. Tackle each of these tactics diligently for the next three months, and you’ll see a terrific boost to your bottom line in time for yearend. • Anne C. Graham is the author of the Profit Maximization Breakthrough System and the forthcoming book Bottom Line Traction: How to Transform the Top 10 CEO Challenges into Profit and Growth. For a free profitability analysis and customized report to find out exactly where to focus first to drive bottomline results, visit www.profitmaximizationsystem.com or contact 604-830-5478 or anne@legendaryvaluecom.

For the record

October 18–24, 2011 Business in Vancouver

People on the Move Email your For the Record information to: fortherecord@ biv.com. Please include a highresolution, colour headshot where possible.

•Advertising

Tara Steinberg has joined Pound & Grain Digital as managing director. She was previously director of operations at Dare North America.

Dennis Kolic joins GrowthPoint Group as partner

•Associations/Societies

Ben Taddei has been elected chair of the Greater Vancouver Home Builders’ Association (GVHBA) for 2011 and 2012. He is COO of ParkLane Homes and president of Bluetree Homes. Elected to the 2011 and 2012 GVHBA executive committee were first vice-chair Blake Hudema, Genstar Development Co.; second vice-chair Lynn Harrison, Harrison Marketing Resources; and secretary and treasurer, Avtar Johl, Platinum Group of Companies.

•Design

Keath Seeton has retired as principal partner of SSDG Interiors and Julie Campbell, previously an associate, has bought his share to become a partner at SSDG.

•Finance

John Pyles and Jarrod Gabbard have joined Novadx Ventures Corp.’s subsidiary, MCoal Corp. as safety manager and manager of coal sales and logistics, respectively. Pyles was previously a senior supervisor and manger for the U.S. Department of Labor, Mine Safety and Health Administration division. Gabbard was previously manager of southeastern sales and logistics at US Coal Corp.

•General

Dennis Kolic has joined GrowthPoint Group as a partner. He was previously vice-president with Jim Pattison Lease. Kevin Parenteau has stepped down as CMO and co-owner of Wolfgang Commercial Painters. CEO David Notte has re-assumed full ownership of the company.

Tony Kirschner joins Davies Park Executive Search as senior consultant

Tara Steinberg joins Pound & Grain Digital as managing director

Craig Lehto is assistant general manager of the Vancouver Convention Centre

Josephine Nadel joins Owen Bird Law as a shareholder

•

Hospitality/ Tourism/Convention

Michael Guzmicky has been appointed program manager, certificate of recognition, at Go2. He was previously an industry specialist, hospitality, at WorkSafeBC. Cr a ig L ehto ha s b e en appointed assistant general manager of the Vancouver Convention Centre. He was previously director of sliding sports and venue general manager of the Whistler Sliding Centre. Adrian Thomas has resigned from the board of the Great Canadian Gaming Corp.

•Human Resources

Tony Kirschner has joined Davies Park Executive Search as senior consultant. He was previously executive director, HRIS and employee records at Provincial Health Services Authority.

•Legal

Alan Monk, Lisa McDonald, Ryan Chalmers and Terence Whalen have joined Fraser Milner Casgrain LLP as partner, associate, associate and consultant, respectively. Monk will practise in the corporate and commercial group and is an adjunct professor of mining law at UBC and was previously with Davis LLP. McDonald has joined the construction and infrastructure group. She previously practised with the Department of Justice Canada and Davis LLP. Chalmers has joined the construction and infrastructure and P3 groups. He was previously legal counsel

Alan Monk, Lisa McDonald, Ryan Chalmers and Terence Whalen join Fraser Milner Casgrain as partner, associate, associate and consultant, respectively

to SNC-Lavalin and articled and practised with Blakes. Whalen joined the financial services group. He was previously an associate with Bull, Housser & Tupper LLP and senior in-house counsel to the Bank of Nova Scotia, debt products. Josephine Nadel has joined Owen Bird Law Corp. as a shareholder and will practice in the corporate, wealth management, succession and estates group. She previously practised with Borden Ladner Gervais and was director, Western Canada, of the Centre for Entrepreneurs and Family Business at PricewaterhouseCoopers LLP. Jordan Toye has joined Lawson Lundell LLP as an associate in the corporate commercial group. He was previously with Osler Hoskin & Harcourt LLP.

•Public

Robin Dhir, Irene Yatco,

B.C. Lee, Simon Jackson and Deepak Gill have been appointed vice-chairs of the NPA election campaign. Dhir is president of Twin Brook Developments Ltd. and co-chair of the fundraising committee for Junior Achievement of BC and a cabinet member for the business laureates of BC Hall of Fame committee. Yatco is the owner, publisher and editorin-chief of the Phillipine Journal and hosts Tayo’y Pinoy on RJ1200 AM. Lee was previously a Vancouver city councillor. Jackson founded the Spirit Bear Coalition. Gill is an associate at Borden Ladner Gervais LLP and is a director of the Indo-Canada Chamber of Commerce (BC).

technical services, and vicepresident and head of operations at Kloof Mines. Malcolm Burne has resigned from the board of Cangold Ltd. Darryl Lindsay has been appointed COO of Batero Gold Corp. He was previously a project manager for Corriente Resources and a consultant with SRK Consulting, CODELCO, and the Geological Survey of Canada.

David Sinitsin and Peter Mordaunt have joi ned Canaco Resources Inc. as vice-president, project development, and member of the advisory board, respectively. Sinitsin was previously director of project development at Silver Standard Resources Inc. Mordaunt was previously chairman, cofounder and CEO of Stingray Copper Inc. and chairman, founder and CEO of Corner Bay Silver Inc. Jasper Bertisen and Steve Botts have been appointed

•Resources

D a n a Ro e t s h a s b e e n appointed COO of Great Basin Gold Ltd. He was previously vice-president, corporate development, at Gold Basin; and vice-president,

SAP Canada is pleased to announce the promotion of Jayme Smithers to the Canadian Business Unit. Jayme joined SAP in 2001 and since joining has worked in a number of different offices across North America in multiple positions. Most recently, he led a large team focused on Volume Sales for Small, Medium and Large Enterprises in the United States. Jayme’s new role will see him lead the Field Sales Team for Western Canada. This team focuses on SAP’s Analytics Portfolio which includes the fastest growing product in SAP’s History. SAP wishes Jayme continued success.

www.sap.com/canada

34 for the record

Daily business news at www.biv.com October 18–24, 2011

Mike Cheevers receives the 2011 Keith G. Collins Memorial Award from the Canadian Association of Insolvency and Restructuring Professionals

Michelle Pockey, cofounder and national chair, Professional Women’s Network

Rory Green, revenue development co-ordinator, Canadian Cancer Society, BC & Yukon; Kayvan Rahmati, marketing director, Waves Coffee House; and Karen Zygun, director, corporate and foundation giving,Canadian Cancer Society, BC & Yukon

to the board of AQM Copper Inc. Alan Edwards has been named a director and chairman of the company. Bertisen is a principal with Resource Capital Funds. Botts is founder of Santa Barbara Consultants and was previously vice-president of sustainability for AngloGold Ashanti Americas, general manager at Rio Tinto, vicepresident of environment, health and safety for Minera Antamina and director, environmental affairs for Echo Bay Mines. Edwards is a director of Copper One Inc., Entree Gold Inc., U.S. Silver Corp. and Gammon Gold, Inc. and was previously president, CEO and director of Frontera Copper Corp., general manager of operations for Phelps Dodge Corp., president and general manager for Cyprus Amax Minerals Co. and executive vice-president and COO for Apex Silver Mine.

Finore Mining Inc., replacing Peter Hughes who has resigned and been appointed chairman. Laurent was previously vice-president, exploration, for Frontier Pacific Mining Corp., exploration manager for Palmarejo Silver & Gold Corp. and president and director of Nortec Minerals Corp.

manager at Nalco Canada.

Anthony Cange has been appointed to and Shawn Wallace has resigned from the board of Full Metal Minerals Ltd. Wallace will remain an adviser to the company. Cange is the president of Aleut Real Estate, LLC. George Ga le ha s been appointed a director of Worldwide Promotional Management Inc. He was previously vice-president, exploration, and director for Harvest Gold and VMS Ventures Inc. Darryl Clark has resigned as CEO and director of East Asia Minerals Corp. and has been replaced by Edward Rochette. Rochette is chair of the company’s board and was previously senior vice-president of Ivanhoe Mines Ltd. Robert Felder has resigned as president of Jayden Resources Inc. John Black has been appointed to the advisory board of Redhawk Resources Inc. He was previously founding president and CEO of Antares Minerals Inc. Winnie Wong has been appointed CFO and corporate secretary of Estrella Gold Corp. She is vice-president of client services at Pacific Opportunity Capital Ltd. and acts as CFO and corporate secretary to Rare Element Resources Ltd., Animas Resources Ltd. and Avrupa Minerals Ltd. Ia n L au rent ha s b e en appointed CEO and director of

Mitchell Alland has been appointed president, CEO and secretary of Crazy Horse Resources Inc., replacing Johan Raadsma, who has resigned. Alland, a director of Crazy Horse, is CEO and executive chairman of Copper Development Corp. Chad Williams has been appointed strategic adviser to NuLegacy Gold Corp. He was previously president and CEO of Victoria Gold Corp., director and head of mining investment banking for Blackmont Capital Inc. and founding principal of Agilith Capital Inc. Dwayne Melrose has been appointed president, COO and director of Riverstone Resources Inc. M.D. McInnis will continue to serve as CEO of the company and has been appointed chairman of the board. Melrose was previously vice-president of exploration for Minco Silver Corp. Jonathan Singh has been appointed interim CFO of K a mi na k Gold C or p., replacing Chris Twells. Singh was previously corporate controller for Magma Energy Corp. and Silver Standard Resources Inc. Michael Zamora has been appointed president of Red Ore Gold Inc., replacing Paul Pitman who has stepped down but will remain a geological consultant to the company. Zamora is president of Galahad Metals Inc. and Pueblo Lithium Inc. Yale Simpson has retired from the board of Dynasty Metals & Mining Inc. to concentrate on his roles as executive chairman of Exeter Resource Corp. and co-chairman of Extorre Gold Mines Ltd.

•Technology

David Speed has joined BioteQ Environmental Technologies, Inc. as director of technical sales. He is principal at David Speed Consulting Inc. and was previously director, sales and marketing at Corix Water Systems, sales manager at Kemira Water Solutions and account

•Telecommunications

Chris Convey has been appointed CFO of Uniserve Communications Corp., replacing Anne Wong, interim CFO, who will stay on as human resource manager. Convey was previously vice-president, finance, at Wantsa Inc. and Zensify Ltd. Kelly Cunningham has been appointed financial controller. She was previously a senior associate at PwC.

Companies on the Move • Name Change

Western Copper Corp. has changed its name to Western Copper and Gold Corp. The company will continue to trade as TSX: WRN.

• New In Town

Ken Fedoruk, Cam Landell and Richard Clune, partners at Big House Communications, have decided to go their separate ways. Fedoruk will retain the Big House name and restructure the business into a boutique agency, located at 1226 Rosewood Crescent, North Vancouver. Landell will lead Watershed Communications Group at Suite 201, 1226 Hamilton Street, Vancouver. Clune will lead Treetop Marketing and Promotions at 1272 Vernon Drive, Vancouver. Western Copper and Gold Corp. has spun out two new companies, Copper North Mining Corp. and NorthIsle Copper and Gold Inc. The companies will commence trading as TSX:V COL and TSX:V NCX respectively.

Hats Off Business in Vancouver wel-

comes submissions from local small businesses and large corporations alike that demonstrate examples of corporate philanthropy and community involvement in the Vancouver area. High-resolution images are also welcome. Sardul Gill donated $5 million to the University of Victoria’s Gustavson School of Business to establish a permanent endowment that will disburse funds for scholarships and financial awards, international projects, teaching and research. The university will recognise the gift by naming its graduate business program the Sardul S. Gill Graduate School.

Ken Mayhew, chief development officer, MS Society of Canada; the Great A&W Root Bear; and Paul Hollands, president and CEO, A&W

A&W donated $1,050,000 to the MS Society of Canada. Fund were raised during A&W Cruisin’ for a Cause Day. The B2Gold Big Brothers Golf Classic, sponsored by B2Gold and Cannacord Financial, raised $270,000 for Big Brothers’ mentoring programs for children. The 26th annual Ivanhoe Cambridge golf tournament raised $74,000 for the MakeA-Wish Foundation of BC & Yukon. G&F Financial Group’s Charity Golf Tournament and Raffle raised $45,100 for SOS Children’s Village BC.

YWCA Crabtree Corner volunteers and staff and Vincent Fong and Gus Stassinopoulos, assistant branch manager and branch manager, respectively, RBC Main and Hastings

RBC donated $40,000 to the YWCA’s Crabtree Corner in support of food programs for women and their children accessing support services in the Downtown Eastside. TELUS donated $21,150 to the Arts Club for its annual Musical Theatre Intensive youth program. Waves Coffee House donated $5,200 to the Canadian Cancer Society. Funds were raised during the society’s Daffodil Campaign in April, at all Waves locations in B.C. Team DASH of Richmond’s RE/MAX Westcoast brokerage, led by principals Martin Dash a nd Carmen McCracken, raised $2,200 for the Richmond Hospital Foundation at the BMO Vancouver International Marathon. Robert Little, founder and CEO of Regency Fireplace Products, was named the Ernst & Young 2011 Pacific Entrepreneur of the Year. Category winners were: businessto-business products and services, Darby Kreitz, Allnorth Consultants Ltd.; business-to-consumer products and services, Attila Koronczay and Boldijarre Koronczay, Eminence Organic Skin Care Inc.; cleantech and information technology, Donald McInnes, Alterra Power; hospitality and tourism, Vikram Vij, Vij’s Restaurant Inc.; manufacturing, Robert Little, Regency Fireplace Products; mining and metals, Keith Neumeyer, First Majestic Silver Corp.; professional and financial services, John Nicola, Nicola Wealth Management Ltd.; real estate and construction, John Tilstra, Centra Construction Group Ltd.; young entrepreneur, Joshua Huen,

Steven Hui, chair, G&F Financial golf tournament; Bill Kiss, coCEO, G&F; Nicole Minions, executive director, SOS BC; and Jeff Shewfelt, co-CEO, G&F

Dr. Battery; and special citation – social entrepreneur, Diane Johnson, Descriptive Video Works Inc. Odlum Brown Ltd. was recognized with the CIBC Corporate Team Spirit Award as the top fundraising corporate team at Vancouver’s Run for the Cure. The Professional Women’s Network celebrated the 15-year anniversary of its founding and 15 years of success in assisting business women to grow their businesses and become business leaders. Canada Place won the International Festivals & Events Association’s Grand Pinnacle Award for Canada Day at Canada Place 2011 presented by Coast Capital Savings. Canada Place was also awarded the Gold Pinnacle Award in the digital media category for the Canada Day mobile app and social media outreach. The Canada Day at Canada Place website was awarded a Silver Pinnacle Award. The Pacific Institute of Culinary Arts participated in the Ford Green Challenge where they created desserts that incorporated ingredients,

including soy, wheat and corn, all of which are being used in Ford vehicles. The winning team of Ida Khodyat and Sonia Huang received funding to support their education. Ballard Power Systems was the recipient of Frost & Sullivan’s 2011 New Product Innovation Award in the North American stationary proton exchange membrane fuel cell category for the company’s CLEARgen multi-megawatt distributed power generation system. Hemmera and Prima Properties’ Davie Village Community Garden, received the Canadian Urban Institute’s Brownie Award for Best Small Project. Correction: Mike Cheevers, a partner of Wolrige Mahon LLP received the 2011 Keith G. Collins Memorial Award periodically given to a member by the Canadian Association of Insolvency and Restructuring Professionals (CAIRP). Cheevers is chairman of the CAIRP Intervention Committee. •

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36 for the record

Daily business news at www.biv.com October 18–24, 2011

Trouble

The Professional Women’s Network (PWN) Honours 40 Women and Men Devoted to Advancing Business Women On Thursday September 29, 2011, the Professional Women’s Network celebrated the 15-year anniversary of its founding and success in assisting business women to grow their businesses and become business leaders. The gala event, held at the Fairmont Waterfront Hotel, attracted over 300 business leaders, professionals, entrepreneurs and politicians from Vancouver and Calgary where PWN’s two chapters are run. The PWN is a Canadian-based non-profit organization, with currently over 1000 members in its two chapters and is growing globally. Its work focuses on helping women in business and the professions to realize their business and career goals by helping them to make key business contacts and to learn from and connect with senior business leaders. PWN also helps its members refer business to one another where appropriate, and to learn strategies and techniques for increasing their profile and profitability. The PWN holds regular monthly events and partners from time to time with other Vancouver-based women’s organizations to present special events including an annual leadership conference called “Leadership Lessons from Influential Women in Business.” Information about PWN can be found at www.pwncanada.ca.

Special Thanks to our Generous Supporters:

PWN’s honourees are: Christina Anthony, Board Chair, Forum for Women Entrepreneurs Janet Austin, CEO, YWCA Metro Vancouver Jill Bodkin, Board Director Bev Briscoe, Board Director Cheryl Carter, Vice President, Business In Vancouver Media Group Laurel Douglas, CEO Womens Enterprise Centre Jill Earthy, CEO Forum for Women Entrepreneurs Bob Elton, Board Chair, Former CEO, BC Hydro and Board Director Joanne Gassman, Vice President - BMO Anne Giardini, President, Weyerhaeuser Canada Dr. Frieda Granot, Senior Associate Dean, Sauder School of Business Gayle Hallgren-Rezak, Author, Entrepreneur, and Advisory Council, Women’s Leadership Circle at Board of Trade Sue Hammell, Founder Minerva Foundation and MLA Laura Hansen, Board Director, Minerva Foundation and Principal, The Image Group Julia Kim, Partner, PH&N Peter Ladner, Publisher and President, BIV Media Group Anne Lippert, Board Director and Principal Anne Lippert Consulting Paulina Lipska, President, Young Women in Business Organization Doreen McKenzie-Sanders, President and CEO, Women in the Lead Inc. Betty McLeod, Senior Manager, RBC and former VP Olympic Business Development Leslie Meingast, Principal, The Personnel Group Emily Molnar, President, Ballet BC Barbara Mowat, President, Impact Communications and GroYourBiz.com Sarah Morgan-Silvester, Corporate Board Director and Chancellor, University of British Columbia Lois Nahirny, Vice-President, Teekay Shipping and Board Director, Women’s Executive Network Tazeem Nathoo, Corporate Director and Consultant with Western Management Consultants Vanessa Noga, President, Association for Women in Finance Patrick O’Callaghan, Principal, Women on Board Catherine Osler, President, The Excecutive Committee Sue Paish, CEO, Pharmasave Benjamin Perrin, Assistant Professor, Faculty of Law, UBC Cynthia Roney, Principal, Executive Passage Barbara Ross-Denroche, President, The Refinery Leadership Partners Jennifer Sung, Vice-President, Young Women in Business Organization Tracy Theemes, Principal, Sophia Financial Group Judy Thomson, Author, Entrepreneur, and Advisory Council, Women’s Leadership Circle at Board of Trade Liz Watson, Former Deputy Minister and Board Governance specialist Lisa Vogt, Partner and National Practice Group Leader, McCarthy Tetrault LLP Tamara Vrooman, CEO Vancity

BUYER’S ALERT Companies listed below,

which are not members of the Better Business Bureau, have failed to respond, as of October 7, 2011, to Better Business Bureau of Mainland B.C.’s efforts to mediate complaints from September 26, 2011, to September 30, 2011. In some instances, the company may have taken care of the complaint and considered the matter closed, or may believe the complaint is unjustified; however, if the BBB has not received a response, records cannot reveal either position. Please note that BBB members must respond to customer complaints that are brought to their attention. Source: BBB. Active Doors and Mouldings, Surrey Best Price Express, Richmond Brentwood Cleaners, Burnaby Cascade Dental Clinic, Merritt Dollarama, Burnaby Global Health Savers, Richmond Kikara Martial Arts Academy, West Vancouver L A Weight Loss Centers, Prince George Land of Print Ltd., Vancouver Leo’s Plumbing & Heating Ltd., Vancouver Okanagan Roofing & Contracting, Kelowna PDFConverter.com, Vancouver Pink Limousine Service Inc., Vancouver PSI Plumbing, New Westminster Ronco Roofing, Kelowna Star Rebates, Burnaby The Internet Marketing Center, Vernon VINCI Park, Vancouver Wirelesswave, Burnaby The following companies have responded to the BBB subsequent to being published: Alltek Patrol Corp., Richmond Assured Pardons of Canada, Vancouver Cheeki Cherry, Chilliwack Lougheed Laser Dental Group, Burnaby Maple Leaf 1st Realty Ltd., Surrey

Who’s Getting Sued These corporate writs were

filed with the B.C. Supreme Court registry in Vancouver. Information is derived from notices of civil claim. Civil claims have yet to be proven in court. Defendant: Lawrence Austin 510 Cardero St., Vancouver Plaintiff: Reliance Properties (Coal Harbour) Ltd. 700–401 W. Georgia St. Claim: $2,439,000 for the unpaid portion of the purchase price of a home. Defendants: Masoud Shahraki-Ghadimi and Bahareh Tavangar Address unavailable and 1918 Russet Way, Vancouver Plaintiff: Reliance Properties (Coal Harbour) Ltd. 700–401 W. Georgia St. Claim: $1,372,500 for the unpaid portion of the purchase price of a home. Defendant: Maliheh Abbas Zadeh aka Maliheh Abbaszadeh 603–918 Cooperage Way, Vancouver Plaintiff: Reliance Properties (Coal Harbour) Ltd. 700–401 W. Georgia St. Claim: $1,007,100 for the unpaid portion of the purchase price of a home. Defendants: Pacific Van & Camper Holdings Inc. and Stephen Montgomery and Linda Montgomery 5359 Highridge Pl., Nanaimo and 7940 Northwind Dr., Lantzville Plaintiff: GE Commercial Distribution Finance Canada 1000–1290 Central Pkwy, West Mississauga, ON Claim: $1,452,966 arising from default on a loan and security agreement; or, an order; a declaration that the agreement is in default; a declaration that, under the agreement, the plaintiff is entitled to an interest in all the present and after acquired personal property of Pacific and all proceeds from it; enforcement of the agreement; inquiries; an accounting; possession of Pacific’s property charged by the agreement; a tracing; and appointment of an interim receiver. Defendant: 0729076 B.C.

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Ltd. aka Liquid Zoo Holdings Ltd. 320–205 Newport Dr., Port Moody Plaintiffs: Amacon Management Services Corp. 1300–777 Dunsmuir St., Vancouver Claim: $859,085.75 for debt. Defendant: Nisga’a Valley Health Authority 4920 Tait Ave., New Aiyansh Plaintiff: Orest Wakaruk 4117 Benner St., Terrace Claim: $423,905 for contractual damages for wrongful dismissal from the position of CFO; and damages. Defendant: Bronco Industries Inc. 700–5951 No. 3 Rd., Richmond Plaintiffs: Chieng Xong Tham 11173 Scarborough Drive, Delta Claim: $304,375 for debt. Defendant: Global Horizons (Canada) Inc. 305–1650 W. 13th Ave., Vancouver Plaintiff: Aviation Labor Supply and Import-Export Joint Stock Co. 1000–840 Howe St., Vancouver Claim: $307,077 and US$300,000 for breach of a contract to organize employment for Vietnamese workers; and damages. Defendants: Contour Systems Ltd. and Ronnie Mattie Slapinski and Mira Slapinski and Michael Claude Lount 21532–126 Ave., Maple Ridge and 2250 W. 8th Ave., Vancouver Plaintiffs: Dryco Drywall Supplies Ltd. and Dryco Building Supplies (Langley) Ltd. and Dryco Building Supplies Inc. 316–2800 E. 1st Ave., Vancouver Claim: $296,369 for debt for drywall and drywall supplies for the SFU Surrey Podium 3 Project; builders liens totalling $226,725; a declaration that a transfer between Ronnie Slapinski and Mira Slapinski of a half share of a home is a fraudulent conveyance and thus null and void; and

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for the record 37

October 18–24, 2011 Business in Vancouver

Trouble orders. Defendants: 649358 B.C. Ltd. dba Northstar Builders and M M Project Management Services Inc. and Marnie Dawn McEachern aka Marnie McEachern 700–275 Lansdowne St., Kamloops and 263 W. St. Paul St., Kamloops Plaintiff: Bodkin Capital Corp. 1200–805 W. Broadway, Vancouver Claim: $195,943 for debt owed under leases for commercial equipment. Defendant: Bronco Industries Inc. 700–5951 No. 3 Rd., Richmond Plaintiffs: 572511 B.C. Ltd. 601 W. Broadway, Vancouver Claim: $131,250 for debt. Defendant: Pulse Energy Inc. 25th fl, 700 W. Georgia St., Vancouver Plaintiff: Robson Communications Inc. 800–885 W. Georgia St., Vancouver Claim: $115,997 arising from breach of a contract for the plaintiff to provide Pulse with Enterprise-hosted Exchange 2010 email services; and damages. Defendants: Laurel Hudson Law Corp. and Terrance Hudson and Laurel Hudson aka Laurel Bieber aka Laurel Nast, and the said Laurel Bieber and the said Laurel Nast 200–4630 Lazelle Ave., Terrace and 620 Seventh Ave., Prince Rupert Plaintiff: MCAP Leasing Inc. Box 49314, 595 Burrard St., Vancouver Claim: $104,666 for debt under a promissory note. Defendant: Mantra Venture Group Ltd. 1820–925 W. Georgia St., Vancouver Plaintiff: John Russell 800–885 W. Georgia St., Vancouver Claim: $54,129 for consulting services. Defendants: Sa Cao and Shafik Ladha and Re/max Westcoast Realty Ltd. and Real Estate Errors

& Omissions Insurance Corp. 223–4940 No. 3 Rd., Richmond and 110–6086 Russ Baker Way, Richmond Plaintiff: Xiang Bin Chen 2600–4720 Kingsway, Burnaby Claim: $50,000 for a deposit for a property for which the square footage was misrepresented; and rescission of a purchase contract for the property. Defendants: G. Paul Holdings Ltd. and Nirmal Athwal and Harjeet Athwal 200–8120 128th St., Surrey and 4922–44B Ave., Delta Plaintiff: Nando’s Chickenland (West) Ltd. 1700–1075 W. Georgia St. Claim: $45,999 for unpaid royalties. Defendant: Mid-Island Aggregate Ltd. 204–655 Tyee Rd., Victoria Plaintiffs: Island Timberlands Limited Partnership and Island Timberlands Limited Partnership by its general partner Island Timberlands GP Ltd. Box 51, 458–550 Burrard St., Vancouver Claim: $36,532 for debt for aggregate. Defendants: 0786418 B.C. Ltd. and Gurbax Singh Sohal and Harbans Kaur Sohal 1348 E. 60th Ave., Vancouver Plaintiff: Nando’s Chickenland (West) Ltd. 700–1075 W. Georgia St. Claim: $34,357 for unpaid royalties. Defendant: Comfort World Furniture and Mattresses Ltd. and Universal Furniture Ltd. and Navjeet Deol and Daljit Doel and Sakattar Singh 101–13030 76th Ave., Surrey and 102–13030 76th Ave, Surrey and 8433–171A St., Surrey and 13016 64th Ave., Surrey Plaintiff: DMi Furniture Inc. 605–938 Howe St., Vancouver Claim:$34,132 for failing to fully pay for products ordered. Defendants: Catherine A. SAS, Q.C. dba Catherine A. SAS, Q.C. Immigration

Law Centre and Terene Edward La Liberte, Q.C. 1000–840 Howe St., Vancouver and 1190–605 Robson St., Vancouver Plaintiff: Salient Properties (Alhambra) Ltd. 1600–925 W. Georgia St., Vancouver Claim: $23,926 for outstanding rent; and damages. Defendants: Alex Burdet and Heather Meehan 409–2234 1st Ave., Vancouver Plaintiff: Briar Design & Construction Ltd. 925 W. Georgia St., Vancouver Claim: $23,543 for services performed. Defendants: Stephen Fahringer and Melanie Fahringer 8889 Okanagan Landing Rd., Vernon Plaintiff: X-Sensible Footwear North America Ltd. 605–938 Howe St., Vancouver Claim: $22,431 for not paying for products ordered. Defendants: Cobalt Custom Homes Builder Ltd. and Paramjit Singh Pandher and Rupinder Kaur Pandher 1048 E. 58th Ave., Vancouver Plaintiff: Allied Ready Mix Concrete Ltd. 300–1122 Mainland St., Vancouver Claim: $6,639 for building materials; and a builders lien for $6,639. Defendants: Postmedia Network Inc. dba The Province and Sam Cooper and Wayne Moriarty and Kevin D. Bent and Christopher Crerar and Chris Holland and Roy Duncan and Jerry Detta and John Doe Plaintiffs: Donald Robert Zimmerman and Maxxco Contracting Ltd. Box 4072, Fort Nelson and Box 306, 182 Memorial Ave., Parksville Claim: Damages for libel; an injunction; and an order.

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38 for the record

Daily business news at www.biv.com October 18–24, 2011

Trouble Vancouver Claim: Damages for damage caused by a flood of raw sewage from an obstruction in Joey’s grease trap. Defendant: Megabite Pizza Ltd. 410–1333 W. Broadway, Vancouver Plaintiffs: STK Triple Holding Ltd. and Sandeep K. Mand 4691 Rumble St., Burnaby Claim: Rescission, in favour of the plaintiffs, of a franchise agreement due to misrepresentation, negligence and breach; restitution; damages; damages for defamation in favour of Mand; and damages. Defendant: Rio Tinto Alcan Inc. Box 11130, 1055 W. Georgia St., Vancouver Plaintiffs: Jackie Thomas on her own behalf and on behalf of all members of the Saik’uz First Nation and Reginald Louis on his own behalf and on behalf of all members of the Stellat’en First Nation 500–221 W. Esplanade, North Vancouver Claim: A temporary injunction restraining Alcan from conducting its operations at the Kenney Dam in such a manner as to cause nuisances to the plaintiffs, arising from Alcan diverting water toward a reservoir used for power production; and

injunctions. Defendants: The Board of School Trustees of School District #38 (Richmond) Plaintiff: Noah Francis Dosen Argao, an infant suing by his mother and litigation guardian, Andrea Dosen Argao and the said Andrea Dosen Argao Claim: Damages for injuries sustained when the infant plaintiff fell from a metal net frame on the school grounds of Westwind Elementary School. Defendant: Crest Shopping Centre Inc. 1300–777 Dunsmuir St., Vancouver Plaintiff: Barbara James 307–6330 Fraser St., Vancouver Claim: Damages for injuries James sustained when she slipped and fell over a cement slab; and healthcare costs. Defendant: Hall and Haddad Properties Ltd. 216 W. 2nd Ave., Vancouver Plaintiffs: Harry Stryer and Wendy Stryer 2550–555 W. Hastings St., Vancouver Claim: An order requiring the defendant to remove the defendant’s foundation from the plaintiff’s property as the foundation interferes with the plaintiff’s potential redevelopment plans; an order; and damages. Defendants: 615053 B.C.

Ltd. dba Fire Eyed Jack Management and Gateway Hotel Inc. and Abby Garcha and John Doe #1-2 1160–777 Hornby St., Vancouver and 1219 Granville St., Vancouver Plaintiff: Luciano Monteiro Miranda 601–815 Hornby St., Vancouver Claim: Damages for injuries suffered when the plaintiff was pushed or assaulted outside the Gateway Hotel and fell to the ground; and health-care costs. Defendant: The Owners, Strata Plan BCS 2127 103–5711 Mermaid St. Plaintiffs: Davis Bay Development Inc. and Denka Holdings Inc. and Farheen Madatali and Gulizeeba Ventures Inc. 203–1571 Bellevue Ave., West Vancouver and 703–938 Howe St., Vancouver and strata lot 48, Strata Plan BCS 2127 and strata lot 54, Strata Plan BCS 2127 Claim: Specific performance of the agreement for the defendants to replace letters of credit used as security for a sewage treatment facility, arising from breach; and damages. Defendants: City of Vancouver and Her Majesty the Queen in right of the Province of British Columbia and Her Majesty the Queen in right of the Province of British Columbia by her

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representative the Ministry of Transportation and Infrastructure and Her Majesty the Queen in right of the Province of British Columbia by her representative the Ministry of Community, Sport and Cultural Development and Mainroad Lower Mainland Contracting Limited Partnership and Mainroad Lower Mainland Contracting Ltd. 453 W. 12th Ave., Vancouver and Box 9290 6th fl, 1001 Douglas St., Victoria Plaintiff: Kerry Alan Short 500–1122 Mainland St., Vancouver Claim: Damages for injuries sustained when the plaintiff’s bicycle gave way on Imperial Drive, due to fracturing and cracking pavement plus oil and debris on the road surface, causing him to fall; and health-care costs. Defendants: Klondike Contracting Corp. and Eric Schapira 300–1375 W. 6th Ave., Vancouver Plaintiff: T.E.C. Management Ltd. 1100–505 Burrard St., Vancouver Claim: Damages to repair deficiencies in Klondike’s renovation work. Defendants: SerVantage Services Corp. and John Doe 1000–595 Burrard St., Vancouver and address unknown Plaintiffs: Ontrea Inc. and Oxford Properties Group Inc. and Cadillac Fairview Corp. 2600–595 Burrard St., Vancouver and 1200–200 Burrard St. and Vancouver and 1300–777 Dunsmuir St., Vancouver Claim: Damages related to water damage from a sprinkler system. Defendant: 6505589 Canada Inc. dba Winmar Vancouver 1200–925 W. Georgia St., Vancouver Plaintiffs: Dave Kunicki and Roslin Segaar and Economical Mutual Insurance Co. 15975 36A Ave., Surrey and 840 Howe St., Vancouver Claim: Damages related to

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Lawsuit of the week

Tenants sue apartment owner over surprise drug lab inspection Tenants Gina Briggs and Gregory Petrigo are suing the owner of their apartment for what they allege was a “false and unwarranted” drug lab inspection. The statement of claim, filed in B.C. Supreme Court on August 26, names as defendants: apartment owner Paul Lepik aka Paul Lepik, as well as Yuriy Bespalov, Valentyna Bespalov, Colliers International aka Colliers Macaulay Nicolls Inc. and the Vancouver Police Department. The lawsuit alleges that in August 2009, Yuriy Bespalov, Valentyna Bespalov, and Jennifer Gallagher came to Briggs and Petrigo’s Beach Avenue home, ostensibly for a routine suite inspection. “Instead, we were subjected to a false and unwarranted drug lab inspection conducted by a team of four armed undercover Vancouver police drug enforcement officers,” the statement of claim reads. Briggs and Petrigo are suing for damages. The suit claims that the inspection of the plaintiffs’ residence resulted in damages that were caused by “the willful and intentional breach of duty of care as set out in the Residential Tenancy Act” by Lepik and his associates. The court document alleges that the breaches include: -failing to take any or reasonable care to ensure that the plaintiffs or other persons would be reasonably safe in using the premises; and -failing to take any or reasonable measures to prevent injury or damage to the plaintiffs or other persons from hazards or dangers of the premises which Lepik knew or ought to have known were present. The defendants allege that the incident has caused and continues to cause the plaintiffs: pain and suffering, discomfort, sleep disruption, nightmares, inconvenience, loss of earnings, loss of earning capacity, loss of amenities, loss of abilities to perform housekeeping and maintenance duties, interference with recreation and loss of or impairment of capacity to enjoy life. None of these allegations has been proven in court. As of press time, no statement of defence had been filed.

improper fixing of a waterdamaged floor. Defendants: Depuy International Ltd. and Depuy Orthopaedics Inc. and Depuy Inc. and Johnson & Johnson Inc. St. Anthony’s Road, Leeds, Great Britain and 700 Orthopaedic Dr., Warsaw, Indiana Plaintiff: Theodore Wilson Address unavailable Claim: General damages stemming from the failure of a hip replacement. Defendants: Mertin Hyundai and Mertin Imports Ltd. Box 390, 9259 Main St.,

Chilliwack Plaintiff: Her Majesty the Queen in right of the Province of British Columbia Box 9280 Stn Prov Govt, 1001 Douglas St., Victoria Claim: Past and future health-care costs for Ross Tanner’s injuries, sustained when he slipped and fell at the Mertin Hyundai premises in Chilliwack. Defendant: Katzie Coast Marine Operations Inc. 89 Rogers St., Vancouver Plaintiff: 489667 B.C. Ltd. 211–1015 Austin Ave., Coquitlam Claim: General damages for breach of contract. •

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Datebook

October 18–24, 2011 Business in Vancouver

Deadline for Datebook listings is noon Tuesday for the following week’s paper. All submissions are subject to approval and cannot be guaranteed. We reserve the right to edit for brevity and clarity. Please go to www.bivdatebook. ca to post your listing. Questions may be directed to Jennifer at 604-608-5103.

Breakfast, Luncheon, Dinner Meetings Noel Fox - From Small Beginnings to Global Powerhouse October 19, 8:00 AM: CSMPS presents: Noel Fox, Noel Fox Inc. Learn how he helped translate the vision of the humble startup, Lululemon, into a corporate phenomenon. Fox shares how the power of strong messaging can elevate a business. Members $45, non-members $70, students $25. Four Seasons Hotel, 791 West Georgia Street. Vancouver. 604818-6614 or info@csmps.com. www.csmps.com. One Night by Lora Frost - Success Party October 19, 7:00 PM: A unique opportunity for entrepreneurs to embrace their power. Guests attending the One Night party will arrive as the person they want to be in five years and act as though they have already achieved their goals. $ 150. Shangri-La Terrasse. Vancouver. Marion Houchard at mhouchard@ karranfinlaymarketing.com. www. onenightbylorafrost.com. What makes a good pitch? Developing, Presenting and Landing Business October 20, 5:00 PM: Linda Oglov, business development consultant and Bill Baker, principal and founder, BB&Co Strategic Storytelling. SMEI members $55, non-members $75. Pan Pacific Vancouver, 300-999 Canada Place. Vancouver. 604-266-0090 or vancouver@smei.org. www. smeivancouver.org. BUBBLE TROUBLE? Leading experts discuss Vancouver’s real estate sector October 21, 11:45 AM: Moderator: David Podmore, Chairman and CEO, Concert Properties Ltd., Eugen Klein, commercial real estate investment, Klein Group; and president-elect, Richard Wozny, principal, Site Economics Ltd . M em b er s $ 69, fu tu re members $96 + HST. The Fairmont Waterfront - Waterfront Ballroom, 900 Canada Place Way. Vancouver. reservations@boardoftrade.com. www.boardoftrade.com. ECONOMIC EDGE 2011: Getting Canada back on track in the digital economy October 26, 7:30 AM: James Moore, Minister of Canadian Heritage and Official Languages and Chris O’Neil, managing director, Google Canada. The Renaissance Vancouver Harbourside Hotel, 1133 West Hastings Street. Vancouver. reservations@boardoftrade.com. www.boardoftrade.com

GAINING AN EDGE: Ernst & Young Business Transactions Seminar October 27, 8:00 AM: Business own er s are invite d to join Ernst & Young’s transaction advisory services group for an interactive session on how to build a competitive advantage through transactions. Topics include: pricing a business in the current market, the current state of financing markets, raising financing, transaction processes, private equity deals, organizing a deal team and strategies to minimize taxes. Northview Golf & Country Club, 6857 168 Street, Surrey. 604-648-3655 or teresa. fuergutz@ca.ey.com. PRIORITY MARKETS: Canada shifts trade focus to Asia October 28, 11:45 AM: Edward Fast, Minister of International Trade and Minister for the AsiaPacific, Gateway. Members $79, future members $110 + HST. Westin Bayshore Vancouver Grand Ballroom, 1601 Bayshore Drive. Vancouver. reservations@ b o a r d e o f t r a d e . c o m . w w w. boardoftrade.com. LUFTHANSA: Mobility for the world November 9, 11:45 AM: Don Bunkenburg, director of corporate sales and regions, North America, Lufthansa $69 members and guests, $96 future members + HST. Renaissance Vancouver Hotel Harbourside - Harbourside Ballroom, 1133 West Hastings Street. Vancouver. reservations@ b o a r d o f t r a d e . c o m . w w w. boardoftrade.com. The Science of Productivity: Practical Applications in the Workplace November 17, 8:00 AM: Armed with the latest science of productivity management, participants will create an action plan for renewing and sustaining their energy. They will understand the biological implications of stress and learn how to go beyond willpower to get things done. $474 + HST. Vancouver. Gurjeet Phungura gphungura@apeg.bc.ca. www. ap eg. bc. ca/p ro dev/even ts/ the_ science_of_ productivity_ vancouver.html. Spirit of Vancouver Awards November 18, 11:45 AM: $69 members and guests, $96 future members + HST. Vancouver Marriott Pinnacle - Pinnacle Ballroom, 1128 Hastings Street West. Vancouver. reservations@ b o a r d o f t r a d e . c o m . w w w. boardoftrade.com. Practical Intellectual Property Strategies November 23, 12:00 PM: This seminar will delve into the practical details of managing intellectual property, focusing on the ownership of IP, mitigating IP-related risk, and acquiring and using IP, with a focus on trade secrets, copyright and patents. $229 + HST. Vancouver or via webcast. Gurjeet Phungura gphungura@apeg.bc.ca. www. ap eg. bc. ca/p ro dev/even ts/ practical_intellectual_property_ nov11.html.

LinkedIn - Using Social Media to Market Your Personal Brand November 24, 5:00 PM: Gary Fe a r n a l l , d i r e c t o r g l o b a l marketing solutions, LinkedIn Canada. The brand called you is the professional brand you show to employers, collaborators, clients and colleagues. How you market that brand is essential to your professional success. SMEI members $60, non-members $78 (before Nov 11). Pan Pacific Vancouver, 300-999 Canada Place. Vancouver. 604-2660090 or vancouver@smei.org. smeivancouver.org. Port Metro Vancouver Annual Address November 25, 11:45 AM: Robin Silvester, president and CEO, Port Metro Vancouver Members $79, future members $110 + HST. Four Seasons Hotel Vancouver Park Ballroom, 791 Georgia Street West. Vancouver. reservations@ b o a r d o f t r a d e . c o m . w w w. boardoftrade.com. Spirit of Vancouver Christmas Luncheon and Year-end Wrap-up November 29, 11:30 AM: Celebrate another memorable year at The Vancouver Board of Trade’s annual Spirit of Vancouver Christmas lunch and year-end wrap up. $79 Members and guests $110, future members + HST. Hyatt Regency Vancouver - Regency Ballroom, 655 Burrard Street. Vancouver. reservations@boardoftrade.com. www.boardoftrade.com.

Street. Vancouver. reservations@ b o a r d o f t r a d e . c o m . w w w. boardoftrade.com. Leading Performance Conference - FIOSA-MIOSA Safety Alliance of BC October 27, 7:15 AM: Speakers: Dave Anderson, president and CEO, WorkSafe BC; Howard Behar, former president, Starbucks Coffee; Paul Henning, vicepresident, Rio Tinto Alcan; and Jayson Myers, president and CEO Canadian Manufacturers and Exporters Association. Business leaders will meet to set the health and safety agenda in B.C. industry for the next four years. At the conference CEOs and senior executives will discuss and agree upon B.C.’s first Health and Safety Charter. $499. Terminal City Club, 837 West Hastings Street. Vancouver. www.fmiosa.com/ lpc.

learning how to communicate more effectively with others. Increase your job performance and career satisfaction. $25 – includes MBTI assessment and guide/workbook . 7000 Minoru Boulevard #140 Rooms 345/350. Richmond,B.C. 6 0 4 -2 0 9 -76 8 4 o r r u s s @ teamperformancesolutions.ca. www.teamperformancesolutions. ca. BCIC Commercialization & Business Planning Workshop October 21, 9:00 AM: An intensive workshop that compels the entrepreneur to think critically and develop the successful elements for the commercialization and positioning of their business idea. It covers

sres/9118.aspx HR Tech Group: Human Capital Symposium October 26, 8:00 AM: Tech indus tr y event on b es t H R practices to grow your business (revenue, talent , lea der s). Keynote: Don Bell, co-founder of Westjet Airlines: $350. Sutton Place Hotel, 845 Burrard St. Vancouver. Allison Rutherford, HR Tech Group, 604-874-2653; arutherford@hrtechgroup.com. www.hrtechgroup.com. Business After Business Trade Show O c to b e r 26, 5: 0 0 PM: The Vancouver Board of Trade’s signature tra de show. $ 20 members and guests $30 future members + HST. The Fairmont H o te l Va n c o u v e r - P a c i f i c Ballroom, 900 West Georgia

Business 2011: Embracing Online Marketing October 25, 5:30 PM: Learn how small and medium-sized businesses use Social Media to build relationships, increase brand awareness and find new customers. Learn from Terri Davies, owner of Sociability.ca. Enjoy snacks and refreshments, networking and an interactive workshop. $99. 915 Fort Street, 3rd Floor. Victoria. Terri Davies, terri@ sociability.ca, 250-588-2877. www. biz2011.eventbrite.com/.

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Courses, Conferences, Workshops, Conventions, Seminars Tradeshows Surrey Regional Economic Summit October 20, 7:30 AM: Featuring a special conversation with former U.S. presidents Bill Clinton and George W. Bush among other presenters, the summit is a unique opportunity to discuss a broad range of timely issues with some of the world’s leading experts in economics, finance and global politics. $599. Sheraton Vancouver Guildford Hotel, 15269 104th Avenue, Surrey. Adam Stowe 604-646-3563 or sres2011@ pacegroup.com. www.surrey.ca/

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Comment

Daily business news at www.biv.com October 18–24, 2011

letters

B.C. government should not abandon the province’s goal of energy self-sufficiency The BC Liberal caucus is considering recommendations contained in the recent BC Hydro rate review. Contrary to one of the recommendations, I urge the energy minister and the caucus not to abandon the goal of electricity self-sufficiency for B.C. Developing our province’s renewable energy resources rather than relying on imported power has many benefits, not the least of which are the construction jobs it would create and the economic boost it would provide for B.C.’s First Nations communities. As someone who has always been supportive of the BC Liberals, I trust that the energy minister and the caucus will make the right decision for B.C. and continue to support the goal of electricity self-sufficiency and the many good jobs it would create in this province. Mike Taylor, Port Moody

Smart meters raise health, surveillance concerns A few days ago, I took the unusual step of sending BC Hydro a registered letter. In that letter I told Hydro that it does not have permission to put a “smart meter” on my house. I also affixed a copy of that letter to the side of my house, beside my power meter. In my considerable research I had found that these smart meters: •transmit waves that are harmful to living tissue into our home and across our neighbourhood; •monitor our family activities by detecting our use of various electrical devices in and around the home (which makes them an in-home surveillance system); and •put the metering of power into a digital format subject to manipulation (by a nearly bankrupt corporation) and outside my ability to monitor or contest. The data I have uncovered is in stark contrast to the “helping” tone of BC Hydro commercials. It’s obvious we are being manipulated. This mental engineering is designed to win our complacent souls over to the bosom of mother Hydro. Little do we know that mother will sew cancer in our bodies, raise our hydro rates through the roof, and peek into our homes day and night, selling off our consumption habits to the highest bidder and distribute information on our private activities in our own homes to insurance investigators and law enforcement. Hydro is doing its best to advertise this into a non-issue. When a huge corporation like BC Hydro takes a decision to run against to our interests and safety, we and our elected officials are duty-bound to take control of that decision and turn it around. Dave Hickey, 100 Mile House

BC Fed’s call for tax increases bad for businesses and workers alike It’s not surprising to see Jim Sinclair and the BC Federation of Labour call for tax increases. Along with the NDP bankrolled by big labour union dues, they have forgotten that tax cuts help keep people employed and even keep union dues flowing. When the big unions in B.C. try to pit citizens against business, they are pitting workers against their paycheques. Tacking an extra $12 billion on their tax bill isn’t free money. It will suck the same amount of money out of employers’ ability to hire and pay people. Faced with this level of increased costs, employers will have to hike their prices and will be forced to let people go. Businesses will be forced to look for better places to do business – just like the last time Sinclair and the NDP called the shots. Philip Hochstein, president, Independent Contractors and Businesses Association of BC.

What’s your opinion? BIV welcomes readers’ opinions. All letters, including those sent by e-mail, must include the author’s name, address and daytime telephone number. Business in Vancouver, 102 East 4th Avenue, Vancouver, B.C. V5T 1G2. Fax: 604-688‑1963. E-mail: news@biv.com. We reserve the right to edit for brevity, clarity and legality.

Cartoon by Rice

At Large

Peter Ladner Questions about affordable housing need answers now

few weeks ago I got an invitation from a woman I’ve never met to come to her house in Shaughnessy and talk with her neighbours about what was happening around them: perfectly good homes being bought up at exorbitant prices, torn down and replaced with trophy-like mansions; newly-built homes sitting empty; transient renters occupying other ones. We met in her beautifully-appointed living room, with nicelyseasoned fir logs crackling in the fireplace, where a dozen friends and dog-walking neighbours expressed their frustrations. They were, of course, happy that their house values were going up, but they didn’t want to see more nice older homes torn down and replaced by fancy new homes that sit empty. They also wondered what’s to become of their city when their adult children and their peers can no longer afford to buy a home here. They were echoing conversations that are going on everywhere in our city except in the political arena: “How am I ever going to compete against millions of cash-flush foreign investors buying up real estate in Metro Vancouver?” One younger woman at the gathering said one couple she knew – both surgeons – couldn’t afford to buy in their preferred neighbourhood. Who can afford to buy here, if not surgeons? An obvious response to high housing prices is to increase the supply, but that isn’t a complete answer.

“You can add all the supply you want,” architect Gregory Henriquez told the recent HousingNow workshop at the Wosk Centre, “but it won’t change affordability if it’s all bought up by speculators.” There’s a feeling among many in our city that we’ve reached the point where we somehow have to dampen

“You can add all the supply you want, but it won’t change affordability if it’s all bought up by speculators” – Gregory Henriquez, architect

demand: out-of-reach housing prices are hollowing out the local economy, educated young people are leaving town, neighbourhoods are less safe, extended families are being split up. Sandy Garossino, an independent candidate for Vancouver City Council who came to the Shaughnessy meeting, pledged to “start a public conversation” on this thorny topic: “We stand to lose an entire generation as our best and brightest decamp for opportunities elsewhere.” Here are the thorny questions that we have to get out into the open: What kind of a city will Metro Vancouver be if the cachet and security of owning here continues to spread across the newly-rich elites in corrupt, unstable countries where unscrupulous behaviour can be

highly rewarding? Can we depend on the market to sort this out? Is our housing unaffordability driven as much by local speculators as by foreign investors? Should housing be treated as just another investment asset, or does it have non-economic value in bonding families and communities? We give local residents preferential access to our schools and universities; should we do the same with housing? Is foreign ownership helping us by making subsidized market rentals available in new developments? Does the local economy benefit when an offshore buyer sells to another offshore buyer? How does absentee ownership affect neighbourhoods, local businesses and the wider economy? Does foreign residential investment lead to business investment? How many non-resident foreign investors eventually move here and become a valued part of our community, economy and tax base? What has been the impact of non-resident foreign ownership restrictions in Alberta, Saskatchewan, Manitoba, Prince Edward Island, Australia, Switzerland, Thailand, Austria, Mexico, Malaysia, France and other countries that have them? It’s time to get reliable data – beyond festering anecdotes shared around the fire by frustrated and increasingly angry neighbours. • Peter Ladner (pladner@biv.com) is a founder of Business in Vancouver and a former Vancouver city councillor. His book, The Urban Food Revolution: Changing the Way We Feed Cities, will be published by New Society in October 2011.

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comment 41

October 18–24, 2011 Business in Vancouver

Public Eye

Sean Holman Premier Clark wants to be yes woman for development

t may have been music to the oil and gas industry’s ears. But recent comments made by Premier Christy Clark in Fort Nelson have struck a discordant note for the environmental community. Speaking at an industry conference in the northern city, Clark told attendees, “I’m tired of hearing people say, ‘No, I don’t want that development. No, I don’t want those trees cut down. No, I don’t want that mine. No, I don’t want that well drilled.’ “We need to move to yes. We need to move to yes as a province. As citizens. And we need governments to move to yes as well in getting out of the way of economic activity if you want to succeed in British Columbia,” Clark continued, according to comments first published by trade publication Pipeline News North and confirmed by the premier’s office. But Will Horter, the

executive director of the Dog wood I n it iat ive – one of the province’s most prominent environmental groups – countered that British Columbians are,

“I’m tired of hearing people say, ‘No … We need to move to yes. We need to move to yes as a province. As citizens” – Premier Christy Clark

“saying yes. They’re saying, ‘Yes we want sustainable industries in our communities. Yes we want to have a say-so in what happens and decide whether projects are compatible with our vision for our community or not.’ They don’t like those things being imposed by Christy Clark or anybody else.” University of Victoria political science professor emeritus Norman Ruff was

less certain about whether Clark will pay a political cost for making such comments at a time when the world seems more concerned about jobs being lost than trees being cut down. But he said it’s noteworthy her language is similar to that of former Encana Corp. president and chief executive officer Gwynn Morgan, who was one of the premier’s economic advisers during her leadership campaign. “It shows she’s not just keepi ng compa ny w it h people in the oil and other industries but she’s absorbing their mindset as well,” stated Ruff. This isn’t the first time Clark has made controversial comments that appear to put the economy ahead of the environment. During her run to succeed Gordon Campbell as leader of the Liberals, she made no apologies for supporting the Prosperity Mine proposal near Williams

Lake – which is opposed by both environmental and First Nations groups.

“It shows [Premier Christy Clark] not just keeping company with people in the oil and other industries but she’s absorbing their mindset as well” – Norman Ruff, political science professor emeritus, University of Victoria

Clark becomes natural gas industry storyteller What do Clark and her lobbyist supporter Jay Hill have in common? Both, it turns out, want to tell the natural gas industry’s “story.” At last month’s oil and gas conference, the premier

told attendees she had a job to do, “making sure people understand the contribution your industry makes to British Columbia. “It’s a story that needs to be told because it’s a story that matters to a lot of people,” she continued, adding that the industry’s 5,000 employees have “family-sustaining jobs that make it possible for people to put food on the table for their children.” But that self-appointed job is similar to the one Spectra Energy Corp., the province’s largest greenhouse gas-producing firm, has given to Hill, one of the premier’s most vocal right-

wing supporters. In an earlier interview w it h Publ ic Eye, Ga r y Weilinger, the company’s vice-president of strategic development and external relations for its western Canadian operations, said the former federal Conservative government house leader’s work for Spectra mostly involves “getting the natural gas story out in B.C. from a whole bunch of different perspectives.” • Sean Holman (editorial@ publiceyeonline.com) is editor of the online provincial political news journal Public Eye (www.publiceyeonline. com).

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42 Datebook

Daily business news at www.biv.com October 18–24, 2011

Profits on Purpose October 25, 6:30 PM: Looking for your success secrets? Have you ever felt like your business takes too much time and effort and makes too little money for you? This workshop will give you the tools to improve your business and make it more profitable! Free. Executive Inn 415 North Road. Coquitlam. Glenn Plunkett 604-420-4949 seminar@ theaccountingstore.ca. www. theaccountingstore.ca/seminar. Positive Thinkers Toastmasters Club Open House October 25, 7:20 PM: Experience the fun and benefits of a Toastmaster meeting. Improve public speaking and general communication skills. Improve sales and presentation skills. Develop and refine leadership skills. Build confidence. Improve English speaking skills. Free. BC Hydro Building, 2nd Floor, 333 Dunsmuir Street. Vancouver. I s a a c Ta i 6 0 4 -2 6 4 - 1 6 8 0 isaactaiprogrammer@gmail.com. www.positivethinkers.ca/. Selling Your Business Workshop October 28, 8:30 AM: If you are a business owner considering your exit, this workshop will give you a significant competitive advantage when it comes time to sell. Speakers include a business mentor, M&A specialist, business law yer, financing

expert and tax specialist. $50. Cascade Community Church 35190 DeLair Road. Abbotsford. Tracie 604-859-5388 ext 115 tcraig@pavilionservices.com. www. pavilionservices. com/ workshops. CAPS Vancouver: Todd Hunt -Creating a killer keynote. Plus Rising Stars and Podcasting How to clinic October 29, 8:30 AM: Learn the secrets to creating a great keynote a ddres s . For b oth emerging and experienced speakers. Plus, Rising Stars co nte s t fo r n ew sp e a ker s . Members and first time guests $57 ($62 door), guests $87. Morris J. Wosk Center for Dialogue (SFU), 580 West Hastings St. Vancouver. Ron Grender 778-688-7065. www. capsvancouver.com. Mastering the Rockefeller Habits Four Decisions Executive Workshop November 2, 8:00 AM: For CEOs and their leadership teams. Learn how to accelerate profitable growth using the Rockefeller Habits. The Four Decisions refer to the critical decisions that growth companies must get right to maximize their revenue, profit and time. $495 to $795 per person. Terminal City Club, 837 West Hastings Street. Vancouver. Janice Watkins 604-313-2229 Janice@CoachKevin.com. www.mrhworkshopvancouver. eventbrite.com .

Sustainable Economics for the Real World November 4, 9:00 AM: This course provides an overview of the emerging field of sustainable economics, as well as the tools for building the business case for sustainability. $600. 515 W. Hastings St. Vancouver. Joshua Randall 778-782-5254. www.sfu. ca/city/course3popup.htm. Financing Symposium November 9, 8:00 AM: This oneday financing symposium will cover early stage and expansion financing; international trade and investment finance; funding acquisitions, succession and shareholder buy-outs; real estate financing; and alternative sources of financing. $350. Vancouver Convention Centre We s t - 1 0 5 5 C a na da P la ce . Vancouver. PD Department, ICABC 604.681.3264 or pdreg@ica.bc.ca. www.icabc-pd.com/pd-seminarsseminar.php?id=2054. Invest in the U.S. Real Estate Market November 15, 11:00 AM: Learn what you need to know before buying in the U.S., the U.S. tax effects, immigration and Visa requirements and financing op p or tunities . Fre e. 1 5 269 1 0 4 t h Ave n u e . S u r rey, B C . doherty@vshcpa.com. www. vshrealestateseminar.eventbrite. com.

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Business Development, is it legal? Client Development strategies for legal professionals November 16, 8:15 AM: Lawyers attending this workshop will learn techniques for converting their legal skills into client development ones. Techniques such as utilizing the power of references will enable lawyers to improve revenues and drive higher rates of client retention. $289.00 Table of eight $1,750. 609 Granville Street - Canaccord Tower. Vancouver. To register 604-637-2088 x 201 or info@ c o m p a s s p e a k . c o m . w w w. compasspeak.com. Communicating Sustainability for Awareness, Accountability and Action November 25, 9:00 AM: This course provides tips and tools for effective communications practice and examines how sustainability is perceived by the public. $600. 515 W. Hastings St. Vancouver. Joshua Randall 778-782-5254. www.sfu.ca/city/ sust906.htm.

Fundraisers, General Events Book Launch: The Urban Food Revolution by Peter Ladner October 27, 5:00 PM: Peter Ladner’s The Urban Food Revolution: Changing the Way We Feed Cities is a handbook for community food security based on leading innovations across North America. Presented by the Centre for Dialogue at SFU. A portion of the proceeds of each book sold at the event will be donated to FarmFolk CityFolk. Free – pre-registration required. Barbara-Jo’s Books to Cooks, 1740 West 2nd Avenue. Vancouver. RSVP www.websurvey. sfu.ca/survey/90744556. www. newsociety.com/Books/U/TheUrban-Food-Revolution. Rainmaker Auction Obakki Foundation November 1-14: An online eBay auction to raise money for the drilling of 200 water wells in Sudan by the end of the year. Featuring one-of-a-kind experiences and signed items from celebrities such as Beyonce, Tiger Woods and more. www.ebay. com/obakkifoundation. www.

obakkifoundation.org. Variety Auction and Vintage Market November 6, 9:45 AM: The Variety Auction and Vintage Market is an annual fundraiser to benefit Variety - The Children’s Charity. Ticket includes lunch, access to the vintage market, featuring discounted prices on everyday grocery items, an auction and extensive craft fair. $55/$60. 1601 Bayshore Drive. Vancouver. 604-320-0505. www.variety.bc.ca/ vintageauction.htm.

Gala Events The 19th Hole October 19, 5:30 PM: Vancouver’s most fun fundraiser! The 19th Hole is a golf and spa themed

event that raises funds for Kids Up Front to provide access to ar ts, culture, sports and recreation for local kids who would not otherwise have the opportunity. $150. $1,500 table. 1755 Cottrell Street. Vancouver. Cindy Graves 604-266-5437, cindy@kidsupfrontvancouver. com. www.kidsupfrontvancouver. com.

Sponsorship, single tickets, and premium/standard tables available. $500/$700. Table $ 5 0 0 0 / $ 7 0 0 0 . Va n c o u v e r Convention Centre East, 1055 Canada Place. Vancouver. 6046 88- 02 2 1 ex t 5 37 or paige. mackenzie@fraserinstitute.org. www.fraserinstitute.org/eventsm u l ti m e d i a /e v e n td i s p l a y. aspx?id=17774.

Torch Awards 2011 October 26, 11:30 AM: A gala awards luncheon recognizing ethical and sustainable businesses from across B.C. To be announced. The Metropolitan Hotel, 645 Howe Street. Vancouver. susanh@mbc.bbb. org. www.mbc.bbb.org/torch.

Networking functions

BC Cancer Foundation - Inspiration Gala October 27, 6:00 PM: This year’s gala will support the Personalized Medicine Project, a critical first step for science, for doctors and for cancer patients in B.C. The Project will begin by focusing on Acute Myeloid Leukemia and a number of rare pediatric cancers. Special guest speaker and Master of Ceremonies is Peter Mansbridge, chief correspondent of CBC News. $500. Table of 10 $5,000. B.C. Rocky Mountaineer Station -1755 Cottrell Street, Vancouver. Sacha Lehto 604-6758242 or slehto@bccancer.bc.ca. www.bccancerfoundation.com/ events/inspiration-gala. BCIT Distinguished Alumni Awards October 27, 5:45 PM: The 9th a n n ual B CI T D is tin g uish e d Alumni Awards celebrate and honour BCIT alumni and faculty who have notable achievements in their careers and community endeavours. $125. Table of 10 $1,200. Four Seasons Hotel, 791 W. Georgia St. Vancouver. 604-4328847 or alumni@bcit.ca. www. bcit.ca/alumni. 29th Annual BC Export Awards October 28, 11:00 AM: Exporters f ro m a ro u n d th e p rov i n c e are recognised for their excellence and achievements in exporting and their tremendous contributions to the economy. Networking trade show at 11:00 AM. Hyatt Regency Vancouver, 655 Burrard Street. Vancouver. 604713-7809 or kimberly.hall@cmemec.ca. www.bcexportawards. com. Bluebird Gala - Arthritis Society, BC & Yukon November 16, 6:00 PM: A cocktail reception with proceeds supporting vital research and essential programs for people living with arthritis. $150. Vancouver Convention Centre – 1055 Canada Place. Vancouver. Madeline Tattersall 604.714.5588 or mtattersall@bc.arthritis. ca. www.arthritis.akaraisin. com/Common/Event/Home. aspx?seid=4476&mid=8 2011 T. Patrick Boyle Founder’s Award November 17, 5:30 PM: The Fraser Institute will honour D a r ren Ent wis tle, C EO a n d president of Telus, with the T. Patr ick B oyle Fo un der ’s Award at a gala reception .

Mature Women’s Network AGM and Teresa Ferris on Living Vision October 28, 12:00 PM: Invitation to women over 40 years for annual general meeting and guest speaker Teresa Ferris on Living Vision. Do you know the benefits of having a living vision for your life? This presentation will explore the many benefits of living a visionary life $4.00 pay at door. No reservations. 411 Dunsmuir Street, 3rd Floor m e etin g ro o m . Va n co u ver. 604-681-3986 or m_miller77@ hotmail.com. www.upcoming. yahoo.com/venue/36939/BC/ Vancouver/Mature-Women39sNetwork/. Women in Biz Network Presents: Branding your Biz with Rebecca Bollwitt & Heather White November 1, 6:30 PM: Women in Biz Network presents its first Vancouver event. Become brand savvy with Miss 604’s Rebecca Bollwitt and Heather White of 2020 Communications $24. Opus Hotel, 22 Davie St. Vancouver. kerry@womeninbiznetwork. com. www.womeninbiznetwork. c o m / 2 0 1 1 / 0 9 / 1 1 /o u r- f i r s tvancouver-event-bran dingyour-biz-with-rebecca-bollwittheather-white/. C3: Coffee, Conversations & Connections November 10, 9:00 AM: These Casual Conversations are designed to connect you with smart, savvy women and start your day off right! Tell us your thoughts, share your knowledge and learn from other women’s experiences over a freshly brewed cup of coffee (or tea!) Guests: $12.50 / Members: $10 [+ HST]. Cheers Restaurant 125 E as t 2nd Street . Nor th Vancouver, BC. Cathy connect@ theconnectedwoman.com. www. theconnectedwoman.com. Forum for Women Entrepreneurs: Exploration Session November 17, 3:30 PM: Join the monthly exploration session to explore its programs and opportunities for your business. Meet other like-minded entrepreneurs and two existing FWE members who will share their FWE experience. Learn about FWE's educational and mentoring programs, as well as their events and opportunities. Complimentary. Space is limited to 10 attendees. FWE office – Suite 850, 1095 West Pender Street, Vancouver. rsvp@fwe. ca. www.fwe.ca. •

Profile

October 18–24, 2011 Business in Vancouver

Anne Callaghan

By Glen Korstrom

Border lines Anne Callaghan, the first American woman consul general to be based in Vancouver, is focused on building cross-

Dominic Schaefer

border business relationships

Anne Callaghan: “my last office [in the Iraq province of Maysan] was made of plywood and had no windows”

draft report from U.S. Customs and Border Protection (CBP) suggested in September that fences could eventually be built along the world’s longest undefended border to manage “trouble spots where passage of cross-border violators is difficult to control.” Even though officials promptly told media that they were not considering building any fences “at this time,” many Canadians and business leaders were alarmed by the prospect of additional border hurdles between Canada and the United States. And the spectre remained that Americans’ security fears might trump their desire to ease cross-border access for trade and travellers. Anne Callaghan, Vancouver’s new U.S. consul general, wants Vancouverites to rest assured that Americans recognize the benefits of an open border. “It’s a false choice between security and enhanced travel and trade across the border,” Callaghan said inside her office at the consulate’s headquarters in a mirrored-glass building on Pender Street, where security measures include bullet-proof doors, a metal detector and multiple guards. “We can do [border security] smarter, using, in large part, new technologies. These are some of the things that we’re expecting will come out in the action plan for the Beyond

the Border initiative.” In February, Prime Minister Stephen Harper and President Barack Obama launched Beyond the Border, which outlines a continental approach to border security. An action plan related to the agreement is expected to be released soon. It could include initial steps to ease cross-border travel for temporary workers and better pre-clearance for trucks at manufacturers’ premises. Callaghan has a leg up on past consul generals in that she has a deep understanding of U.S.-Canadian relations. She worked on Canadian and Mexican issues for the U.S. Department of State in Washington in the late 1990s. In late August, Callaghan became the first female U.S. consul general to Vancouver and is settling into the U.S. government-owned mansion in Shaughnessy where she will live during her three-year stint. Callaghan’s experience dealing with border issues came in her first posting after joining the U.S. foreign service. It was 1985, and she was based at the U.S. embassy in Mexico City. With nearly 1,000 workers, it’s the largest U.S. embassy in the world. She went from there to Tijuana, Mexico, where she opened that consulate’s first public affairs and border

affairs office. “What I took away from my posting in Mexico that would be relevant to my posting here is an understanding that there are a vast array of actors on the border,” she said. “It’s not just the CBP people or the Canadian Border Services Agency (CBSA) – people who travellers see when they cross the border. There are also actors who affect border policy and relations – everybody from local government to provincial or state people to business organizations, environmental groups, civic organizations, cultural groups and universities on both sides of the border.” Callaghan has focused much of her first six weeks in Vancouver on meeting many of these local players. She toured Blaine’s border crossing, met the CBP’s regional manager and attended a meeting in White Rock that included residents on both sides of the border. “There are a certain number of things that you have to do in your job as consul general. You supervise the consulate and make sure people do their jobs. You develop relationships with the provincial government, the government of Yukon and the various economic players. Beyond that, it’s up to you,” said Philip Chicola, who preceded Callaghan as the U.S.A.’s consul general in Vancouver.

Mission: To be the U.S. government’s eyes and ears in B.C. and the Yukon Assets: Fluent in English, Japanese, Italian and Spanish and a background working on border security and bilateral U.S.-Canadian issues Yield: Top post in the U.S. government in B.C. and the Yukon

Chicola has spoken with Callaghan several times and believes that she is as prepared as anyone who has come to the job since the U.S. first established a consulate in Vancouver in 1897. “She is really into cultural affairs and the arts. I was supportive of the opera and the symphony, but I think Anne will be more handson. My support was more in terms of helping with fundraisers. Anne will be a more happy, active participant. You get to put your own stamp on the job.” Some Canadians might not think U.S. culture needs much promotion in Canada given high viewership for top rated U.S. TV shows. Promoting culture, however, is one of the consulate’s functions, in addition to: •helping U.S. citizens with passport issues; •promoting initiatives such as the Nexus pass for frequent border travellers; and •encouraging trade with U.S. companies. The consulate helped finance a Seattle-based dance troupe’s attendance at this year’s Vancouver International Dance Festival, and Callaghan intends to do the same thing for a San Francisco-based dance troupe next year. Callaghan’s interest in culture is clear from her past stints in the cultural departments of U.S. embassies in Rome, Italy, and Tokyo, Japan, as well as the U.S. consulate in Perth, Australia. Her first taste of cultural affairs at a diplomatic mission, however, was in San Francisco, where she landed a job at the Japanese consulate. New Jersey-born Callaghan studied Japanese at Colby College in Maine, where she earned her bachelor’s degree. She took a year leave of absence from Colby to study in Japan and then travelled extensively around Asia. Future jobs helped her learn Italian and Spanish. “You never get bored in foreign service, because the languages are different, the cultures are different and the issues change,” she said. “That’s why I find it so fascinating.” She is quick to disabuse people of the notion that foreign service jobs are always glamorous. “Look at that fabulous view of Vancouver,” she said, pointing across Coal Harbour to North Vancouver. “My last office [in the Iraq province of Maysan for a one-year stint starting June 2010] was made of plywood and had no windows.” • gkorstrom@biv.com

DiD you miss these recent eDitorial profiles? Rowland Kelly

Andrea Shaw

Outgoing Central 1 CFO on building the country’s credit union system Issue: October 11

Olympic gains and Twentyten Group challenges Issue: October 4

Richard Day and Diana Douglas Self-Counsel Press celebrates 40 years in publishing Issue: September 27

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VA N COU VE R C H A P T E R 12th annual

Regional

METRO VANCOUVER

Municipal Development Costs New this year:

CHAPTER

Industrial

Development Cost Survey Fall 2011

The Vancouver Chapter of the National Association of Industrial and Office Properties (NAIOP) is pleased to present the 2011 edition of their Commercial Development “Report Card”

s NAIOP will be acknowledging four municipalities that have excelled in creating environments Vpositive ANC O U Vcreation. E R The C H A P T E R to business 3 categories of awards are: • Most Improved • Most Fiscally Responsible • Most Business Friendly The awards will be presented at the October 20th breakfast meeting This year’s winners are: • Most Improved – City of North Vancouver and City of Chilliwack – both these cities recorded overall cost reductions of 6% from the previous survey results in 2009 • Most Fiscally Responsible – City of Delta –this city has managed to limit cost increases over the 10 GREATER VANCOUVER year timeframe of the study to just over the average rate of inflation • Most Business Friendly – City of Abbotsford – 5 year staggered tax incentive programs for commercial and industrial development have been put in place to encourage new investment.

CHAPTER

Some Positive Highlights to Note: s Processing times are stable with increases in four municipalities offset by a decrease in two

Willingdon phase 8 and 9

s Five cities have lowered their costs s Three cities held their cost increases to approximately the rate of inflation

Some Not-So-Positive Highlights: ▼ Compared to the rate of inflation from 2009 to 2011 (just under 2% per annum), more than half or 11 out of 18 municipalities have posted increases in excess of the annual inflation rate, with 2 municipalities posting close to a 50% hike in costs over this 2 year period

▼ Letters of credit and other forms of refundable security are becoming excessive which will become more of an issue in today’s credit-restricted environment. Four jurisdictions require bonds of $750,000 or more

▼ Increases in Development cost charges are again becoming a trend with almost half of the municipalities surveyed recording increases in DCC’s from 2009 figures

n the sixth anniversary of the Industrial survey which began at the eve of the new millennium in 2001, we continue to find ourselves mired in a time of economic uncertainty that began with the financial crises in 2008 with a potential debt crisis and another recession possibly looming on the horizon. With the availability of investment grade product in short supply, Metro Vancouver’s Industrial market weathered the 2008 downturn in relatively good fashion, with a stable rental rate trend and very little submarket weakness apparent. Despite the dramatic financial turmoil since 2008, the overall vacancy in the market has been on a downward trend. The current industrial vacancy rate of 4.1% is up slightly from a year ago. The Survey, which is distributed to 20 communities within Metro Vancouver and the Fraser Valley, requires each municipality to identify the costs and processing times associated with the parameters of the case study outlined within this article. For 2011, the development project was, as per the previous Surveys, the construction of a 2 storey, 100,000 square foot industrial warehouse distribution building on 5.5 acres of land requiring both subdivision and rezoning. As this is the six year mark, we thought it would be interesting to show the costs we first reported back in 2001 at the Survey’s inception to give some historical interest of the increases (or decreases) compared to the

CPI which has averaged 1.8% during the time period. We are sure you will find these particular results quite informative. In producing this annual publication, NAIOP strives to provide its membership and the business community as a whole with a reference tool that quantifies the costs and processing times associated with typical development projects within Metro Vancouver municipal jurisdictions. Moreover, we believe the Survey can be utilized by the municipalities, whose active participation makes this survey possible, as a gauge for their own development costs and approval processes.

Index Industrial Development Scenario Overview Surrey reducing red tape to increase investment Municipal Fees Timing Municipal Fees and Approval Times NAIOP Icon Speaker Recipient for 2011 The tax burden Tax ratio Move Towards Green Future trends

3 5 6 8 8 9 11 12 13 14 15

Regional Office Development Cost Survey — Fall 2011

SOUTH FRASER PERIM

ETER ROAD

WESTMINSTER 1

91 RICHMOND

SURREY

DELTA

TSAWWASSEN DELTA PORT

WHITE ROCK

INDUSTRIAL | OFFICE | RETAIL

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Regional Industrial Development Cost Survey — Fall 2011

METRO VANCOUVER

CHAPTER

Industrial Development Scenario

VANCOUVER

BURNABY New Westminster

RICHMOND

DELTA

Lower Mainland/Fraser Valley VANCOUVER

Po r CO Mo t QU ody ITL Po AM rt C oq uit lam Pit tM ea do ws Ma ple Rid ge

WEST VANCOUVER

NORTH VANCOUVER

SURREY

Fort Langley

LANGLEY WHITE ROCK

his year’s survey is based on an industrial development scenario, similar to the scenario tested in 2001, 2003, 2005, 2007 and 2009 – the construction of a 100,000 square foot distribution warehouse on 5.5 acres of land. The development also includes 15,000 square feet of office space within the warehouse. Municipalities received a “development proposal” where rezoning, subdivision, development permit and building permit approvals would be required. They then reported on development costs and approval times according to their usual standards and processes. 20 municipalities were sent the survey representing a real life situation in a mock development scenario, intending for them to run this request through their approval time line and assess overall cost requirements. This level playing field provides

CHAPTER

GREATER VANCOUVER

Mission

CHILLIWACK

ABBOTSFORD CANADA USA

meaningful comparison to actual building and development permit requests made by industry, and holds municipalities accountable for delivering on promises to efficiently process development opportunities in their respective jurisdictions. All municipalities were provided with an opportunity to review and comment on the results prior to publication. Please note that the survey results are based solely on the responses of the municipalities. The Metro Vancouver and Fraser Valley District water and sewer charges have been broken out as separate items for comparative purposes but have not been included in totals due to regional variation in methods for calculating these items. Returnable letters of credit and security deposits have been included in this year’s survey as a separate category.

CHAPTER

Subject Property is currently: • Not subdivided • Zoned Residential • 6.0 Acres Development Proposal • Single storey 100,000 square foot concrete tilt-up building with 15,000 square feet of mezzanine office space • Interior lot with 490 feet of frontage on dedicated municipal roadway • Net size of 5.5 acres after road and other dedications Required Municipal Processes • Rezoning • Subdivision • Development Permit • Building Permit Construction Costs • $79.50 PSF for the Building ($7,950,000) • $7.50 PSF for site improvements ($750,000) • $750,000 for street and drainage improvements (not DCC rebatable)

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Regional Office Development Cost Survey — Fall 2011

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location in the Central Business District to some of the city’s best restaurants, eateries, pubs, and cafés • Waterfront opportunities remain available www.collierscanada.com/186 Sheldon Scott* 604 662 2660

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FOR LEASE

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100 available immediately – 55,111 SF Building 200 now under construction – 110,360 SF • Build to suit lease options available from 50,000 – 750,000 SF www.collierscanada.com/1115 Chris Morrison* DIR 604 661 0875

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This document/email has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and /or its licensor(s). © 2011. All rights reserved. This communication is not intended to cause or induce breach of an existing listing agreement. Colliers Macaulay Nicolls Brokerage Inc. (Vancouver). *Personal Real Estate Corporation. PO#11064.

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Regional Industrial Development Cost Survey — Fall 2011

Overview

CHAPTER

Market forecast Industrial vacancy rates have been steady since fall 2010 and are curVANCOUVER rently at 4.1%, up slightly from 4.0% in the Fall of 2010.

CHAPTER

ABSORPTION has been positive in Metro Vancouver, showing in excess of 2.5 millin square feet absorbed over the last 12 months. NEW SUPPLY in excess of 2 million square feet is expected to be constructed by mid-2012.

Rent vs. Vacancy

GREATER VANCOUVER

$10.00

4.8%

$9.00 $7.86

$8.00

4.7%

$7.67

$7.71

$7.76

$7.72

$7.53

$7.46

$7.41

”

4.6%

$7.00

4.5%

$6.00

4.4% 4.3%

$5.00

4.2%

$4.00

4.1%

1 ,2

1 Q2

0 01

Lease Rate Vacancy Rate

,2 Q4

0 01 ,2 Q2

01 ,2 Q1

00 ,2

3.9%

$2.00

4.0%

$3.00

Metro Vancouver industrial real estate activity during the first half of 2011 trended positively, but the subsequent re-emergence of economic crises in the U.S. and Europe ... will likely result in industrial activity slowing

CHAPTER

4.9%

“

and Canada’s economic performance in 2011 as a result of global economic turmoil. Industrial strata projects remain the primary focus of industrial developers in Metro Vancouver. Metro Vancouver industrial real estate activity during the first half of 2011 trended positively, but the subsequent re-emergence of economic crises in the U.S. and Europe, which have worsened since the end of June and contributes to increased instability in global markets, will likely result in industrial activity slowing as developers, tenants and owner/users evaluate the potential economic fallout and wait on the sidelines for the picture to clear.

trong debt markets and constrained supply of investment product defined the recovery of the Metro Vancouver industrial market in 2010 and provided the support necessary to stabilize local deal activity driving the uncertain economic times that have punctuated global markets so far in 2011. With industrial vacancy generally holding steady throughout the region since fall 2010, submarket weakness is difficult to identify but may become more pronounced by year-end as the instability that has roiled equity markets since mid-July continues. Investor demand remains strong for Metro Vancouver industrial product despite revised downward estimates of B.C.

METRO VANCOUVER

Regional Industrial Development Cost Survey — Fall 2011

METRO VANCOUVER

CHAPTER

Surrey reducing red tape to increase investment By Linda Hepner, City of Surrey

s part of our focus on job creation Mayor Dianne Watts initiated the Red Tape Advisory Committee. I’m privileged to Chair this Committee working to reduce costs and increase certainty for investors. Unnecessary red tape stifles investment and is a source of frustration and wasted time. We’re striving to achieve the important balance between eliminating bureaucracy and ensuring that it doesn’t compromise the important regulations that create a great place to live and do business. When the City wants to improve policies that effect business we understand the best way to deliver results is to talk to people in industry. Industry can quickly identify priority issues, and suggest practical solutions that will get the City where it needs to be. The Red Tape Reduction Committee was formed in January 2011 to assist with the review, refinement and, where appropriate, abolishment of bylaws, regulations and process. The sixteen-person committee has strong representation from the regional building community, including expertise from engineering, architecture, land development, and industry associations such as NAIOP.

We’ve been focused on leveraging technology to improve information sharing with clients, and the City has had early successes with eBusiness improvements. Clients can check project status, find engineering drawings and request inspections online - this allows clients to access information when and how they want. Another example is how mobile reporting for building inspections has dramatically improved the process. Previously, hand-written inspections produced notes that were at times unclear or illegible. This could be

a very frustrating experience. Now inspectors carry mobile devices with wireless printers. Reports are distributed on-site, can be easily e-mailed and automatically update the database at City Hall. Less trips to City Hall saves our clients time and money for more important activities. All changes need to be measured to track whether the outcomes are positive. We will continue to work with NAIOP, UDI and the Greater Vancouver Homebuilders’ Association to develop indicators and benchmarks to measure the efficacy

of the Committee’s actions. I’m happy to report early success related VANCOUVER CHAPTER to development applications in our Economic Investments Zones with a 9% reduction in processing time on service agreements for City Centre projects. With the help of the Red Tape Reduction Committee, the City has reviewed over 300 policies, and identified almost 25% to streamline or delete. If policies aren’t relevant then were going to make them better, or get them off the books. To reduce unnecessary bylaws in the future, the Committee also recommended putting a sunset clause on new bylaws and policies. Not all bylaws will have a sunset clause, but for those that make sense, particularly those focusing on process, we’ll put it in place. Nationally red tape costs the economy $30 billion – in BC it amounts to $5 billion. That’s money that should be freed up to help get things done, create jobs and build a great city. And that’s what we want to see. Industry’s involvement and input is welcome and critical for success. I think we’re on track, and doing the right things. The future lives here and we need to get it right. GREATER VANCOUVER

“

Nationally red tape costs the economy $30 billion – in BC it amounts to $5 billion. That’s money that should be freed up to help get things done, create jobs and build a great city. And that’s what we want to see.

”

— Linda Hepner, Councillor, City of Surrey

CHAPTER

Cost Consulting & Project Management Realty Tax Consulting Research, Valuation & Appraisal

“Know & Control All Your Costs!”

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Regional Industrial Development Cost Survey â&#x20AC;&#x201D; Fall 2011

Regional Industrial Development Cost Survey — Fall 2011

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

$9,625 $2,587 $4,740 $15,000

n/a $6,000 n/a n/a

$19,140 $20,184 $2,492 $1,200

$11,893 $20,946 $5,590 $13,077

$81,100 $81,100 $81,100 $81,100

$705 $650 $1,425 $1,650 $1,800 $1,478 $435 $1,630 $2,500 $1,822 $1,700 $7,300 $1,100 $765 n/a n/a

$50 $50 $107 $100 $0 $100 $0 $0 $0 $0 $0 $0 $0 $50 n/a n/a

$61,300 $71,841 $81,121 $70,776 $52,810 $64,845 $52,430 $71,550 $62,688 $68,639 $59,925 $35,512 $60,000 $61,603 n/a n/a

$0 $0 $2,477 $1,848 $0 $0 n/a n/a $3,886 $0 $0 $2,239 $360 $1,162 n/a n/a

$31,620 $8,750 $23,500 $34,250 $30,750 $37,500 $30,000 $10,250 $0 $46,104 $34,250 $0 $33,750 $30,000 n/a n/a

$112,565 $191,002 $161,026 $156,263 $254,317 $220,359 $219,893 $287,559 $323,570 $404,405 $430,034 $417,000 $429,398 $896,000 n/a n/a

$1.13 $1.91 $1.61 $1.56 $2.54 $2.20 $2.20 $2.88 $3.24 $4.04 $4.30 $4.17 $4.29 $8.96 n/a n/a

$30,000 $84 $31,635 $40,000 $0 $24,500 $35,000 $13,200 $0 $0 $0 $37,234 $26,000 $11,300 n/a n/a

$15,000 $40 $28,475 $18,000 $0 $7,500 $40,000 $10,100 $0 $0 $7,500 $16,576 $31,000 $10,800 n/a n/a

$8,100 $0 n/a $11,925 $6,552 n/a $8,500 n/a $28,350 n/a n/a n/a n/a n/a n/a n/a

$4,628 $720 $3,545 n/a $0 $2,277 n/a $5,287 $7,539 $8,554 $7,510 $25,879 $10,000 $12,030 n/a n/a

$8,242 $2,300 $5,150 $7,406 $6,039 $4,348 $3,913 $4,725 $5,839 $5,887 $10,000 $45,500 $5,928 $2,605 n/a n/a

$81,100 n/a $60,500 $60,500 n/a n/a $81,100 $81,100 $81,100 $81,100 $81,100 $44,300 $81,100 $50,500 n/a n/a

$750,000 $1,050,000 n/a 110% of Landscape Cost n/a n/a n/a $750,000 n/a n/a n/a n/a n/a n/a $128,400 n/a $750,000 n/a n/a n/a

Sewer and water hookup fees are estimates only. Actual hookup done at cost. Development Permit Fee provided would be required if this building was to be located in the City Centre Planning Area. Outside of the City Centre a DP would not be required in most instances. Survey not applicable due to no industrially zoned land within the city. Assumes development in mainland area - If in Queensborough DCC charges of $191,600 would apply. As in past surveys, Metro Vancouver / FVRD charges based on West Richmond. Richmond DCC charges are applicable City wide. Developer installs sewer/sanitary lines from property to main through servicing agreement. Water hookup costs between $5,000 and $10,000 depending on depth and length. Based on Area 1 DCCs. Area 2 DCCs would be approximately $360,277. For calculation on Annual Inflation Rate from 2001, 2003 costs used as incorrect DCC’s numbers were provided for 2001 Based on Area A DCCs. Does not include Joint (with Mission) charges which add an additional $165,000. Sewer and Water Hookup Costs ar charged back at actual cost Reduction in DCC’s from 2009 due to City reclassification of office component, Administration and Processing fee, Site Profile and Landscape fees do not include applicable taxes. Landscaping fees assume $300,000 in on-site landscaping costs DCC’s variable within Mission, based on rates for non-Silverdale Industrial Areas. Silverdale Rates would be $366,000. Rates used are from new DCC Bylaw pending adoption Oct 2011 Port Moody noted error in 2009 survey where DCC’s were overstated by $67,428 as $115,736. Actual 2009 DCC’s were $48,308. Landscaping fees are 2% of cost - assumed $300,000 to match N. Vancouver’s estimate Delta Landscape fees based on $500 per 9m of frontage DCC’s based on infill area Based on 2011 Industrial mil rates with $8,700,000 of building/site improvements without land cost which varies widely - see Mil Rate Table for additional details.

$0 $500 $0 $0

$87,267 $165,946 $105,309 $126,789

$169,792 $219,428 $255,532 $257,208

$162,383 $168,936 $246,323 $248,458

V 5% A N C $73,660 O U V E R 131% C H 7.88% APTER

$0 $0 $585 $25 $0 $0 $0 $0 $0 $0 $8,949 $3,736 $0 $0 n/a n/a

$224,336 $76,623 $188,927 $83,226 $106,241 $114,769 $91,017 $130,619 $107,127 $57,484 $85,092 $80,030 $80,409 $78,770 n/a n/a

$272,210 $275,437 $339,046 $342,243 $352,268 $362,907 $390,171 $404,301 $434,372 $535,411 $559,868 $590,976 $597,536 $1,026,314 n/a n/a

$183,262 $291,897 $331,695 $364,067 $363,505 $318,846 $321,617 $360,359 $438,199 $517,152 $550,950 $404,790 $594,351 $879,264 n/a n/a

49% $96,209 183% -6% N/A N/A 2% $210,330 61% -6% $259,729 32% -3% N/A N/A 14% N/A N/A GREATER VANCOUVER 21% $310,784 26% 12% $154,747 161% -1% $304,339 43% 4% $322,563 66% 2% $350,357 60% 46% $202,039 193% 1% $132,130 352% 17% $416,481 146% n/a N/A N/A n/a N/A N/A

Decrease from 2009 Survey Increase from 2009 Survey

1. 2.

Pre-Application Design Review (days)

Rezoning Process (days)

Development Permit Process (days)

Subdivision Approval (days)

Building Permit (days)

2011 Approval Timing*

2009 Approval Timing

Percentage Change

Municipality

2011 Rank

2009 Rank

Timing Metro Vancouver 1 1 Abbotsford 1 1 Chilliwack 2 2 Surrey 2 2 Langley (City) 2 2 Mission 2 2 Pitt Meadows 2 2 Township of Langley 3 2 Richmond 3 3 Burnaby 3 5 District of North Vancouver 4 4 Port Moody 5 5 Maple Ridge 5 5 Coquitlam 3 6 Port Coquitlam 5 6 Delta 6 6 City of North Vancouver 5 7 New Westminster 6 7 Vancouver West Vancouver 1 City of White Rock 1

n/a n/a n/a n/a 3-5 5 30 5-10 n/a 30 <30 n/a 15 60 2 3 n/a 1 n/a n/a

30-90 30-90 30-90 30-90 30-90 30-90 90-120 90-120 120-150 90-120 150-180 90-120 90-120 120-150 120-150 120-150 150-180 >180 n/a n/a

concurrent concurrent concurrent concurrent concurrent concurrent concurrent concurrent concurrent concurrent concurrent concurrent concurrent concurrent concurrent concurrent concurrent 30-90 n/a n/a

concurrent concurrent <30 <30 <30 <30 concurrent concurrent concurrent 30 concurrent 30-90 30-90 30-90 30-90 30-90 30-90 concurrent n/a n/a

90 90 120 120 120 120 120 120 150 150 180 210 210 240 240 240 270 270 n/a n/a

90 90 120 120 120 120 120 150 150 150 180 210 210 150 210 270 210 270 n/a n/a

0% 0% 0% 0% 0% 0% 0% -20% 0% 0% 0% 0% 0% 60% 14% -11% 29% 0% n/a n/a

Outside estimate inclusive of concurrent processing of rezoning, subdivision, DP and BP where allowed, not including pre-application review. Survey not applicable due to no industrially zoned land within the city.

Equivalent Annual Average Inflation Rate

Metro Regional Sewer and Water Charges

$19,650 $6,318 $19,067 $31,000

Decrease from 2009 Survey Increase from 2009 Survey

30% $140,251 4% $163,165 4% $193,743

Percentage Change from 2001

Rezoning Application Fees

$0.00 $0.60 $1.36 $0.97

2001 Totals

Development Permit Fees

$0 $59,907 $136,455 $96,521

Percentage Change

Landscaping / Street Improvement Fees

$25,913 $45,000 $30,000 $27,750

2009 TOTAL

Water Hookup Fees

$1,936 $1,982 $0 $1,900

TOTAL (Excluding Metro Regional Charges & Taxes)

Sewer Hookup Fees

$79,593 $53,101 $54,766 $69,810

Taxes #

DCC Charges per Square Foot

$100 $75 $0 $200

CHAPTER

Other Fees

DCC Charges

$1,942 $2,828 $2,422 $750

Returnable Security Deposits / Letters of Credit

Administration and Processing Fees

New Westminster 4 Chilliwack District of North Vancouver City of North Vancouver 9 Abbotsford 8 Mission1,10 Delta 12 Pitt Meadows 1 Coquitlam Surrey Township of Langley 6 Vancouver Langley (City) 1 Richmond 2,5 West Vancouver 3 City of White Rock 3

Inspection Fees for Sprinklers11

5 6 7 8 9 10 11 12 13 14 15 16 17 18

Building Permit

2 6 9 12 11 7 8 10 14 15 16 13 17 18

Site Profile

Metro Vancouver 1 1 Burnaby 3 2 Port Moody 11 4 3 Maple Ridge 13 5 4 Port Coquitlam 1,7

METRO VANCOUVER

Subdivision Permit

Municipality

2011 Rank

2009 Rank

Municipal Fees

56% 57% 33%

4.15% 4.15% 2.62%

9.93% N/A 4.45% 2.55% N/A N/A CHAPTER 2.33% 9.14% 3.29% 4.72% 4.35% 10.24% 14.70% 8.55% N/A N/A

Regional Industrial Development Cost Survey — Fall 2011

Municipal Fees and Approval Times

METRO VANCOUVER

CHAPTER

Municipal Development Costs Fees and Approval Times or 2011, the development project was, as per the previous Surveys, the construction of a single storey 100,000 square foot industrial warehouse on 5.5 acres of land requiring both subdivision and rezoning.

1,026,314

Richmond

597,536

Langley (City)

CHAPTER

559,868

Township of Langley

535,411

Surrey

434,372 404,301

Coquitlam Municipality

VANCOUVER

590,976

Vancouver

Pitt Meadows

390,171

Delta

362,907

Mission

352,268

Abbotsford

GREATER VANCOUVER

342,243

City of North Vancouver

339,046

District of North Vancouver

275,437

Chilliwack

272,210

New Westminster

257,208

Port Coquitlam

255,532

Maple Ridge

219,428 169,792

Port Moody Burnaby -$50,000

$150,000

$350,000

$550,000 Cost ($)

$750,000

$950,000

$1,150,000

Municipal Approval Times Fees and Schedule he total fees levied by each municipality for the construction of a 100,000 square foot industrial distribution warehouse and office building development (as described on page 3) are presented on the left, above. On the right, the total approval times – from application date to Building Permit – are shown. Approval time frames shown can and will extend beyond the periods noted if the developer does not supply necessary information with the initial application or respond to requests for additional detail or clarification in a timely manner. Carrying costs (interest and taxes) represent a considerable component of pre-construction expenses and additional time spent in the municipal approval process increases those costs.

270

Vancouver

270

New Westminster 240

City of North Vancouver

240

Delta

240

Port Coquitlam 210

Coquitlam

210

Maple Ridge 180

Municipalities

Port Moody 150

District of North Vancouver

150

Burnaby 120

Richmond

120

Township of Langley

120

Pitt Meadows

120

Mission

120

Langley (City)

120

Surrey 90

Chilliwack

Abbotsford 0

100

150

200

250

300

Days

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CHAPTER

Regional Industrial Development Cost Survey — Fall 2011

METRO VANCOUVER

CHAPTER

Municipal Fees and Approval Times Annual Increase Compared to CPI from 2001 (1.79%)*

VANCOUVER

8.55%

Richmond Langley (City) Vancouver Township of Langley Surrey Coquitlam Pitt Meadows Delta Mission Abbotsford City of North Vancouver District of North Vancouver Chilliwack New Westminster Port Coquitlam Maple Ridge Port Moody Burnaby

14.70% 10.24% 4.35% 4.72% 3.29%

Municipalities

CPI Comparison March 2001 to 2011 he data shows a clear division between the traditionally “suburban” and “urban” municipalities. With some notable exceptions (Pitt Meadows and the City of Langley), the suburban locations such as Delta, Coquitlam and Surrey managed to limit their increases to just under 2.5 times CPI while the more highly urbanized jurisdictions such as Richmond, New Westminster, Burnaby and Vancouver posted increases well in excess of four to five times more than the average CPI growth. As DCC’s are normally the largest component of the overall costs of development, we would normally expect “developing” areas to post the highest increases but in this case it would appear that DCC’s are increasing at a higher rate in the already urbanized municipalities. It will be interesting to see if this continues over time as the traditional suburban locations become increasingly more urbanized (Port Moody’s Newport Village development for example) and the demand for services increase. Over this time period, the “All Goods Consumer Price Index” in the Greater Vancouver Census Metropolitan Area increased by an average of 1.79%. (Source: BC Stats)

GREATER VANCOUVER

9.14% 2.33% 0.00% 0.00% 2.55% 4.45% 0.00% 9.93% 2.62%

4.15% 4.15% 7.88%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

% Increase Abbotsford, * Mission, Chilliwack were not included in 2001 survey

Development Costs Percentage Change 2009-2011 17%

Richmond 1% Langley (City)

46% Vancouver 2% Township of Langley 4% Surrey

Fee Changes 2009 to 2011 he graph below illustrates the percentage change in development fees levied by each municipality between 2009 and 2011. Of the 18 municipalities that responded to the survey, 13 reported a wide range of increases ranging from 1% to just under 50%. Five municipalities reduced fees over this time frame.

CHAPTER

-1%

Coquitlam

12% Pitt Meadows 21%

Municipalities

Delta 14% Mission Abbotsford City of North Vancouver

-3% -6% 2%

District of North Vancouver Chilliwack

-6% 49%

New Westminster 4% Port Coquitlam Maple Ridge

4% 30%

Port Moody Burnaby -20%

20% % Change

60%

CHAPTER

Regional Industrial Development Cost Survey — Fall 2011

NAIOP Icon Speaker Recipient for 2011 T

his year’s Icon Speaker is John R. McLernon, Honorary Chairman and Co-Founder of Colliers International. John shared his insights with the NAIOP members at the October 20, 2011 chapter breakfast at the Hyatt Regency Hotel. John served as Chairman and Chief Executive Officer of Colliers Macaulay Nicolls from 1977 to 2002, and Chairman of the company until December 2004. He began his career in 1964 as an Investment Analyst with Canadian Pacific. He has been active in the real estate industry since 1968. He began his career on the development side

METRO VANCOUVER

with Marathon Realty in Montreal, and later as General Manager, Development, based in Vancouver. He became President of Vancouver-based Macaulay Nicolls Maitland in 1977 and was instrumental in the employee purchase of the company and the formation of the CMN Group in 1985. Over the past three decades of his involvement, John guided CMN through steady business growth, successfully completing some 50 mergers and acquisitions in the Americas, Asia Pacific and Europe and successfully rebranding the firm to Colliers International. John currently provides advisory services to Colliers International and several other

“

”

— John R. McLernon, Honorary Chairman and Co-Founder, Colliers International

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companies through McLernon Consultants Ltd. “Anything’s possible,” says John. “That a Vancouver based company with $2 M of commercial revenue in 1975 can grow to an organization with offices in multiple countries worldwide, with total revenues of approximately $1 Billion in 2010 is a testament to having a vision. If you have a vision – it’s not if you have a vision, you should have a vision – push that vision further than you would probably be comfortable with… and you will reach it.” Visit www.naiopvcr.com to explore our industry Blog to see John’s observations and assessments on the present state and future of the current commercial real estate industry. Profound insights from a Real Estate Icon.

VANCOUVER

CHAPTER

GREATER VANCOUVER

CHAPTER

Regional Industrial Development Cost Survey — Fall 2011

METRO VANCOUVER

CHAPTER

The tax burden Industrial to residential mil rate ratio – 2011

hile it may not be the primary consideration, a growing number of businesses are considering the impact of the property tax burden, and the variations in that burden across the region, when making the decision on where to locate. Property taxes are not, for the most part, factored into per-square-foot lease prices but, like common area and maintenance (CAM) costs, they are paid in addition to the base lease rates. Municipal property taxes pay for city services such as parks, roads, utilities, policing, fire protection and local improvements. Property tax rates within any municipality are impacted by two factors. The first is the value of the property being taxed and the second is the tax rate (mill rate) that the municipality applies to various property types. Municipalities ensure their ability to balance their budgets with their ability to adjust mill rates. The property tax burden for businesses varies from jurisdiction to jurisdiction however, compared to residential tax rates, businesses

(‘industrial’ and ‘commercial’ property designations) pay a significantly greater proportion of the property taxes. For light industrial and commercial properties, research has indicated that the ideal median tax ratio (industrial/ commercial tax rate to residential tax rate) is 3 to 1. Less than half the municipalities surveyed are in line with this ratio. The awareness among business owners of the disparity between commercial and residential tax rates is growing. Vancouver and Coquitlam’s ratio in 2009 was approximately 5 to 1 and has been reduced to 4.0 and 4.3 to 1 in 2011 by lowering or maintaining the business tax rate at the expense of an increase in the residential rate. We commend both municipalities for their efforts and we look forward to continuing future adjustments. For 2011, the five municipalities with the lowest commercial to residential property tax burden (rated from lowest to highest) were: • Chillwack • Langley (City) • Abbotsford • Surrey • Mission

“

VANCOUVER

CHAPTER

Although, it is often said that businesses “don’t vote” in local elections, in reality they do cast a ballot, by making the decision to relocate to lower cost jurisdictions in which their business can thrive and contribute to their local communities. GREATER VANCOUVER

CHAPTER

”

The five Metro Vancouver and Fraser Valley Municipalities with the highest commercial to residential property tax burden (rated from highest to lowest) were: • North Vancouver (District) • New Westminster • Port Moody • Vancouver • Burnaby Small and medium sized commercial businesses are essential to the socioeconomic health of the community

and contribute to the goal of building compact sustainable cities. High municipal property taxes for these types of businesses have serious impacts on our city, neighbourhoods and employment opportunities for residents. Although, it is often said that businesses “don’t vote” in local elections, in reality they do cast a ballot, by making the decision to relocate to lower cost jurisdictions in which their business can thrive and contribute to the sustainability and vitality of their local communities.

ACKNOWLEDGMENT NAIOP would like to acknowledge and thank all of the municipalities who took part in this year’s Development Cost Survey. Participation is voluntary and the time expended to respond to it can be significant, not unlike a “real” development application. Development in any jurisdiction is a partnership between business and the community. NAIOP is pleased to be in a position to work, on behalf of our members, with all of the Metro Vancouver jurisdictions, which participated in the publication of this information for the business community. NAIOP would also like to acknowledge the contributions from Avison Young and Wakefield for the Market Beat Report and Lawson Lundell for providing the municipal mill rate information. Thanks also to NAIOP members for their time in putting this project together: Graeme Silvera, Plenary Group Canada Ltd. Chair NAIOP Development Issues Committee Cheryl Carter, Business in Vancouver John Conicella, Wesgroup Properties

Gaelen Henry, Wesgroup Properties Darlene Hyde, Executive Director, NAIOP Emel Tetiker, NAIOP Geoff Heu, GWL Realty Adv. James Delmonte, Grosvenor

METRO VANCOUVER

CHAPTER

VANCOUVER CHAP TER ww.naiopvcr.com

Regional Industrial Development Cost Survey — Fall 2011

METRO VANCOUVER

CHAPTER

Tax ratio 2009 Rank”

2011 Rank

Municipality

Light Industrial Mill Rate

Residential Mill Rate

Light Industrial to Residential Tax Ratio

Chilliwack

8.8072

4.2315

2.081

Langley (City)

9.2424

3.697

2.500

Abbotsford

12.2116

4.7715

2.559

Metro Vancouver

Surrey

6.6073

2.3781

2.778

Mission

13.1918

4.5821

2.879

Maple Ridge

12.1045

3.8978

3.105

Langley (Township)

9.7807

3.1294

3.125

Delta

10.4617

3.2785

3.191

Port Coquitlam

14.5735

3.669

3.972

North Vancouver (City)

9.5662

2.3891

4.004

Coquitlam

12.3135

3.0486

4.039

Richmond

9.054

2.1609

4.190

Pitt Meadows

15.0137

3.5814

4.192

Burnaby

10.0307

2.3771

4.220

Vancouver

9.1988

2.1282

4.322

Port Moody

19.0743

3.2145

5.934

New Westminster

25.7857

3.6131

7.137

North Vancouver (District)

21.7157

2.4729

8.781

VANCOUVER

CHAPTER

GREATER VANCOUVER

CHAPTER

Light Industrial to Residential Tax Ratio 8.781

North Vancouver (District) 7.137

New Westminster 5.934

Port Moody 4.322

Municipalities

Vancouver Burnaby

4.220

Pitt Meadows

4.192

Richmond

4.190 4.039

Coquitlam

4.004

North Vancouver (City)

3.972

Port Coquitlam 3.191

Delta Langley (Township)

3.125

Maple Ridge

3.105 2.879

Mission

2.778

Surrey Abbotsford

2.559

Langley (City)

2.500 2.081

Chilliwack 0.000

3.000

6.000

9.000

Ratio

NAIOP names award winners – CONGRATULATIONS! NAIOP congratulates outstanding municipalities as part of the annual development cost survey. This is the first year for such awards and they will be known as the NAME Awards (NAIOP Award for Municipal Excellence). In 2011 the awards go to:

Most Improved Municipality WINNERS – TIE City of North Vancouver City of Chilliwack

Most Fiscally Responsible WINNER City of Delta

Most Business Friendly WINNER City of Abbotsford

METRO VANCOUVER

CHAPTER

Regional Industrial Development Cost Survey — Fall 2011

Move Towards Green A

s a ‘snapshot’ of the increasing move towards sustainability amongst the municipalities, NAIOP has included a section within its survey on whether there are any sustainable/green building requirements (beyond the requirements in the BC Building Code) or incentives in place within each municipality. This year significantly more than half (12 of the 18 municipalities who responded) confirmed they have requirements and/ or incentives to promote sustainable building. Some were voluntary measures covering all areas of sustainability or smart growth, others were mandatory actions on particular items such as stormwater management and green (planted) roofs for buildings over a certain size. Most municipalities now require some form of sustainability reporting as part of their rezoning/ development application, and many of these are offering incentives including density bonusing, floor area exclusions, transfers, DCC and tax exemption, as well as fast tracking the permit process for “green” projects. In future, the expectation is that many of the processes that are now voluntary will be formalized, as municipalities raise the bar on what is considered green.

Municipality

METRO VANCOUVER

Green Building Incentives

CHAPTER

Development Requirements

Delta

Delta has developed a “Green Growth Index” as a tool to identify the sustainability features of major new development projects. These features are reported to Council and secured as part of development agreements as appropriate.

City of North Vancouver

Sustainability statement required for all development applications. Building to conform to ASHRAE 90.1 2007

VANCOUVER

CHAPTER

District of Maple Ridge

Town Centre –6 year 100% property tax break for LEED Silver

Green Building Questions are included as part of Town Centre Development Permit Guidelines

District of North Vancouver

FSR Bonuses are available under GBS for meeting specific targets

Compliance with GBS adopted in Spring 2011 is mandatory when rezoning is required. Green Building guidelines are included in the OCP

District of Mission

District recently updated it DP guidelines to encourage green building practices GREATER VANCOUVER CHAPTER

Pitt Meadows

City requires the Smart Growth Checklist for all amendments to OCP and Zoning or Development permit applications. Checklist is used as a tool to ensure developments are in keeping with larger municipal goals for Smart Growth.

New Westminster City of Port Coquitlam

All applicant must complete a Sustainability Report Card Fast track building permit application process if developments meet high performance standards

Green roof or equal required where building area exceeds 500 m2

City of Port Moody

A sustainability checklist for new development is required with all rezoning and development permit applications. Includes an energy efficiency target for new industrial buildings of 25% better than Model National Energy Code

City of Richmond

Bylaw 8385 Green Roofs & Other Options requires Industrial and Office buildings greater than 2000 m2 to achieve storm water runoff objectives

Burnaby

Parking requirements can be reduced to encourage Co-op and car sharing in cooperation with developer

Green Building/LEED standards are negotiated in co-operation with developer

Vancouver

Please see http://vancouver.ca/sustainability/index.htm

Our Commercial Real Estate practice group represents clients in a variety of complex real estate transactions and development matters including: the purchase and sale of shopping centres, office buildings and industrial parks; strata property development matters, including the preparation and filing of Disclosure Statements under the Real Estate Development Marketing Act; land assemblies, subdivision matters, including providing advice regarding environ-

mental and municipal requirements; bare land strata developments, strata hotel and recreational developments, and leasing transactions (industrial, office, retail, and First Nations). We also advise our real estate clients in connection with construction, takeout and inventory financings, and the structuring of joint ventures, co-ownership arrangements and real estate syndications of all types, including limited partnerships.

Front left to right: Morley Koffman, Q.C., Patrick J. Julian, Daniel S. Remick, Andrea J. Wales, Stan Wong, Mark E. Wong, Erin K. Tait, Leslie A. Tucker. Missing: Michael M. Kalef, Andrew G. Kadler 19th Floor, 885 West Georgia Street Vancouver, British Columbia V6C 3H4 Canada Telephone 604-891-3688 Fax 604-891-3788 www.kkbl.com

Regional Industrial Development Cost Survey — Fall 2011

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Future trends A

s an indication of what the future could bring, NAIOP includes a section within its survey on future policy directions and changes to existing policies that were under consideration at the time of publication. This information comes with a general disclaimer that all or a majority of these potential changes are subject to either council or staff approval and final drafting. Below are some highlights of what could be coming in the near future to a jurisdiction near you.

Municipality

Upcoming Planned Policy changes

District of Mission

Draft DCC Bylaw currently pending adoption by council. NAIOP has used the pending rates for the 2011 Survey. For more details visit http://www.mission.ca/wp-content/uploads/2011-03-14-Council-ReportFinal-Rates-20110321.pdf. Note that there is typically a 1 year grace period for in-stream applications. Council has deleted authority for industrial development permits to senior management to streamline the approval process

City of North Vancouver

City staff is working on a revision to the OCP with adoption scheduled for 2012. Consideration of land use strategies will be part of this effort.

City of Abbotsford

1. Tax incentive programs for commercial and industrial development are in place. Exemptions are granted GREATER VANCOUVER CHAPTER where new improvements have an estimated construction value of at least $1,000,000 for industrial projects and at least $10,000,000 for Commercial projects. Tax exemptions will be provided for a term of five years based on municipal property value taxes as follows: Year 1: 100% of the increased assessed value: Year 2: 80% of the increased assessed value; Year 3: 60% of the increased assessed value: Year 4: 40% of the increased assessed value; Year 5: 20% of the increased assessed value. Other conditions also apply. 2. Pre-application meetings can be scheduled within 7-10 days and are free of charge. Written preliminary comments are provided.

City of Richmond

City staff are currently in the process of updating the City’s OCP. The review includes an Employment Lands study.

City of Langley

New DCC bylaw has been introduced with an effective date of implementation planned for July 2012

City of Vancouver

Job Lands Update - http://vancouver.ca/commsvcs/planning/corejobs/pdf/11may12memotoCouncil.pdf Metro Core Jobs - http://vancouver.ca/commsvcs/planning/corejobs/index.htm

NAIOP Vancouver

Real Estate Excellence Awards Submission deadline for applications: January 15, 2012 Award categories will include the following: » Investment Transaction » Office Development » Office Lease » Industrial Development » Industrial Lease » Mixed Use Development » Retail Development » Developing Leader Award » Lifetime Achievement Award Nomination information and forms at www.naiopvcr.com. Awards Gala to be held in May 2012.

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Regional Industrial Development Cost Survey — Fall 2011

The NAIOP advantage

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NAIOP

truly reflects the pulse of the commercial/industrial development industry in Greater Vancouver. It provides its diverse membership with a valuable network of industry professionals, a critical forum to exchange ideas, economic information and market news, and a collective voice to lobby for regulatory debate and change. NAIOP works for members year round to enhance market knowledge and exposure, to help streamline the industry, and provide a healthy sprinkling of camaraderie and fun. The Vancouver Chapter of NAIOP is one of 55 chapters within an extensive network that represent the interests of developers and owners of industrial, office and related commercial real estate throughout North America. NAIOP Vancouver committees are very active and have won several awards including Chapter of the Year 2003, the Periodical Publication Award 2004 for the Cost of Doing Business Survey and the 2007 Annual Publication Award from NAIOP National. Through a grassroots network NAIOP seeks to create, protect and enhance property values.

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NAIOP members are the principal players who shape the commercial real estate industry

Vancouver Chap ter

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NAIOP is a professional association with more than 10,000 members across North America who represent the interests of developers and owners of industrial, office and related commercial real estate. NAIOP’s Canadian network VANCOUVER CHAPTER includes chapters in Vancouver, Calgary and Toronto.

For more information on NAIOP – Vancouver Chapter or any of its events, please visit the website at www.naiopvcr.com, call 604-601-5106 or fax 604-681-4545 GREATER VANCOUVER

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NAIOP Board of Directors

Back row: Gordon Wylie, Director; John Scott, Sponsorship Committee Chair; Don Harrison, Education Committee Chair; Chris MacCauley, Developing Leaders Chair; Derek Jones, Breakfast Committee Chair; Jeff Rank, National Director; James Delmotte, Communications Committee Chair; Ernie Hee, Legal Counsel; Pav Sikham, Treasurer Middle row: Emel Tetiker, Administrator; Graham Silvera, Government Relations and Development Issues Committee Chair Front row: Geoff Heu, Past President; Maury Dubuque, President; Darlene Hyde, Executive Director; John Conicella, Vice President; Stephanie Setchell, Events Committee Chair

Why become a member of NAIOP? ✔ L ocal networking opportunities through monthly breakfast speaker series and special events. Over the years, the Vancouver Chapter of NAIOP has featured speakers that include Mr. Bob Ackles, BC Lions, Mr. Brian Burke, formerly with the Canucks, Mayor Sam Sullivan, and the City of Vancouver Planner, Mr. Brent Toderian. ✔N ational networking through conferences and access to NAIOP national database ✔ I ndustry and market information – through period publications and reports

✔ Educational opportunities – through special issue seminars and symposiums including the annual Developer’s Symposium ✔ Access to NAIOP’s online database and periodic newsletter ✔ Legislative voice – through our Legislative Issues and Government Affairs Committees ✔ Industry recognition – through our industry awards events