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David Yager | Alberta Will Redefine Resiliency Yet Again in 2020
ALBERTA WILL REDEFINE RESILIENCY YET AGAIN IN 2020 by David Yager
T
he way that 2020 has started off, the time has come for Alberta to change its official bird from the great horned owl to the black swan. Black swan? When an unplanned severe economic phenomenon occurs – when a financial curve ball comes out of nowhere and wrecks everybody’s plans – economists, analysts and financiers call it a “black swan event.” While all swans were thought to be white for centuries, extremely rare and previously unimagined black swans were discovered in Australia in 1697. Online financial dictionary Investopedia reads, “A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, their severe impact, and the practice of explaining widespread failure to predict them as simple folly in hindsight.” The definition is fraught with irony. First something unplanned changes things dramatically after which multiple observers are miraculously blessed with perfect 20/20 hindsight.
Alberta adopted the great horned owl as its official bird in 1977. But black swans have been breeding, laying eggs and hatching chaos ever since. That Albertans have always found ways to regroup, recover and forge onwards is the reason the province has long called itself, “next year country.” Alberta has been forced to bounce back so many times it has become a synonym for resiliency. And in 2020 we get to do it again. This year started with three major events affecting the economy that nobody foresaw. The worst was coronavirus which has clobbered oil and stock markets. No business planners put a serious contagious disease outbreak and potential global pandemic in next year’s financial forecast. “Revenue and profits for 2020 look pretty good, unless of course people can’t leave the house for fear of contracting a fatal disease.” The second was the decision by Teck Resources to abandon its Frontier oilsands mine before the federal government rendered its decision. Lots of people predicted it would never be built. But after investing 10 years and a billion dollars, nobody imagined Teck would throw in the towel only days before Ottawa made an official pronouncement one way or the other.
4 • Business of Energy • April 2020
Alberta Will Redefine Resiliency Yet Again in 2020 | David Yager
The combined impact was somewhere between awful and devastating depending on your job, company or economic sector. As cases of coronavirus infections and deaths grew, world stock markets lost $US6 trillion of value in a week. Because of air travel restrictions, it was soon clear oil demand was falling fast. WTI, which opened the year above $US60 a barrel, had lost 25 per cent of its value by early March. Not knowing when and where this would end, the expanded oilpatch capital budgets that had spurred so much optimism to begin the year were in doubt only weeks after 2020 began. “Only a matter of time” the world’s disease-expert pundits sagely observed. The Teck decision was more psychological than economic. Frontier had been hyped as a major positive turning point for the economy of Alberta if it was built and the fragmentation of the country if it was rejected by the Trudeau government. Teck’s unexpected withdrawal precipitated endless rounds of commentary, none of it good. As Investopedia observed, everyone who ever had a doubt about Frontier was able to say, “I knew it.” Oilsands haters rejoiced, and endless columnists opined that the era of Alberta’s economy being driven by new bitumen development was officially dead. The blockades clobbered everybody. Following the RCMP entering Wet’suwet’en to arrest people restricting access for Coastal GasLink construction activities, all manner of people across the country seized the moment to participate in civil disobedience by blocking railways, roads, public buildings and whatever else they could think of that would irritate the most people with the lowest personal risk. The issues were indigenous rights, fossil fuel development, climate change and “power to the people”; not big governments and big companies. “No wonder and totally justified,” progressives cried, given the appalling treatment of First Nations by Canadian “colonials.” Pollsters asked Canadians for their response to the statement, “Right now, Canada is broken.” Nearly 70 per cent agreed with the main issue being the blockades and the failure of governments to remove them. Discontent in Alberta, also stung by falling oil prices and shelved oilsands mega-projects, was at 83 per cent. Prime Minister Justin Trudeau’s response, or the lack of it, saw his approval sink below 30 per cent. For Albertans, having plans, careers, ambitions, investments and companies derailed or destroyed is hardly new. Since 1977, when Alberta clearly embraced the wrong provincial bird, there have been multiple unplanned black swan hatchings. But we’re still here. And we will be next year. That high oil prices always come down is well understood today. Modern electronic commodity markets wiggle continuously in both directions. Price volatility is part of the modern oil business. But this was all new 40 years ago after the national energy program was introduced in 1980. With oil prices 10 times what they were seven years earlier, federal professional extrapolators
5 • Business of Energy • April 2020
Alberta Will Redefine Resiliency Yet Again in 2020
The last was nationwide blockades of railways and roads, allegedly in solidarity with the Wet’suwet’en hereditary elders opposed to the Coastal GasLink pipeline from northeast B.C. to Kitimat. LNG Canada is the only good news natural gas has enjoyed in 13 years. LNG is supposed to help Asia use less dirty coal. No other country in the world has or will ever experience mass protests of this type of project for this reason.
David Yager | Alberta Will Redefine Resiliency Yet Again in 2020
concluded this would continue forever and therefore legislated massive wealth redistribution from oil and gas producers to consumers.
Alberta’s economy retooled to oilsands creating an economic boom that rivalled anything experienced in prior years.
The ink was barely dry on the hard-fought 1981 federal/provincial revenue-sharing agreement between Ottawa and Edmonton when oil prices started to slide. By 1985, they had collapsed entirely and didn’t start to rise in real terms for nearly 20 years.
Hundreds of billions of dollars were committed and invested in oilsands production and upgrading. Export pipeline capacity expanded and more was planned. When the NDP and Liberals introduced higher corporate taxes, carbon taxes and aggressive climate policies in 2015, Canada had four export pipelines in the works to haul away up to two million of additional oil production.
As a result, Alberta was introduced to resiliency in ways it had never previously imagined. House prices collapsed, businesses went broke, banks failed, deficits skyrocketed and income from the Heritage Fund – the built-to-last safety net from 1970s oil boom money – was drained to support general government revenues. The spectacular oil boom of the 1970s became the spectacular bust of the 1980s. The next major black swan that would clobber Alberta’s economy and finances was the unlocking of shale gas using extended-reach horizontal drilling and hydraulic fracturing. This began about 2007 in the Barnett Shale of Texas. The 21st century started with a natural gas boom of unprecedented proportions. During the 2005 hurricane season in the Gulf of Mexico, Henry Hub gas peaked at over US$13, nearly 10 times current levels. LNG import terminals would be required to supply North America with gas because of falling domestic production and rising demand. That natural gas would one day be abundant and worthless by comparison was not predicted. This is evidenced by the investment in billions of dollars in wells, gas plants and specialized oil service equipment, much of which is either gone or valued at a fraction of what it cost to create. The technology-driven gas price meltdown devastated and completely changed the Canadian oilpatch. Climate change activism and its impact on the oilsands was a huge black swan that took 15 years to incubate and hatch. In the period 2004 to 2006, Alberta experienced a one-time oilsands leasing boom that had never been seen before or since. As natural gas tanked,
Then the biggest, baddest black swan of all descended in the form of collapsed oil prices – again – and the unforeseen and fundamentally irrational selection of oilsands and oil pipelines as the greatest threat in the history of mankind to the world’s climate. Not one of 2015’s four pipelines are in operation five years later. Tens of billions of dollars in oilsands and pipeline development capital has fled Alberta. And here go again. Incredibly resilient Alberta. Not particularly happy, but ready to do whatever it takes to make things go. We’re routinely advised to do something different. We will. Just wait a minute. And as challenging as events appear when the world throws us another black swan curve ball, the default behaviour of focusing on the negative while taking the positive for granted does not serve us well. Combined oil and gas production are at record levels. Enbridge Line 3 will be carrying additional oil soon. LNG Canada and the Coastal GasLink pipeline will get completed, blockades be damned. Trans Mountain is under construction. Keystone XL will not die. The world still runs on oil and gas and will for the foreseeable future. We’ll bounce back. We always do.
B O E
David Yager is a Calgary-based writer, author and oil service executive. He is currently president and CEO of Winterhawk Well Abandonment Ltd.
6 • Business of Energy • April 2020
Investing in Alberta Energy | Melanie Darbyshire Michael Tims, vice chairman, MATCO Investements.
INVESTING
IN ALBERTA ENERGY MATCO INVESTMENTS’ MICHAEL TIMS IS STAYING THE COURSE
M
by Melanie Darbyshire
ichael Tims has spent his career investing in Canadian oil and gas. Currently the vice chairman at MATCO Investments, he previously spent 33 years at Peters & Co., the Calgary-based investment firm specializing in oil and gas, oilfield services and energy
infrastructure, where he served as president and CEO, and latterly as chairman. He’s lived through highs and lows in the market, enjoyed the bounty of booms, survived the merciless busts; his perspective today is seasoned with the benefit of this experience.
7 • Business of Energy • April 2020
Melanie Darbyshire | Investing in Alberta Energy
That perspective predicts fairly modest growth in Alberta’s energy industry for the foreseeable future. “You have to look at all the sub-segments,” he advises, which include oilsands, conventional light and heavy crude oil, condensate and natural gas liquids, and natural gas. “The majority of Alberta’s oil production comes from the oilsands,” Tims continues, “and I’ve thought for some time that the combination of economics (the oil price in the US$50/ barrel range) and politics make large-scale, mega-mining projects much less likely to be built.” He notes the decision in February by Teck Resources to withdraw its application for its Frontier mine. “Projects like Teck’s were predicated on the assumption of higher oil prices – $80/90/100 oil. There aren’t many mining oilsands projects that appear on the cusp of proceeding. Capital spending in the oilsands is now fairly low.” Indeed, a number of non-Canadian companies – Shell, Total, ConocoPhillips – have sold Canadian oilsands assets, predominantly to three Canadian players: Canadian Natural Resources, Suncor and Cenovus. “And we don’t see, for the most part, any large amount of non-Canadian money coming in that wasn’t here already,” Tims says. While mining projects may be less economical, Tims does see the potential for incremental growth of steam-assisted gravity drainage (SAGD) projects, which are more modular and don’t involve such large commitments of capital. “Very often these projects are added onto existing infrastructure,” he explains. “So, the economics at the margin of incremental additions to these projects will continue at a moderate pace. But again, at US$50 oil, nobody has a huge incentive to be super aggressive about it.” The conventional light and heavy producers, he says, seem to have enough capital spending to sustain themselves, but are not growing dramatically. “The Canadian independents are continuing their activity, but are hampered by the fact that there hasn’t been much capital raised or available,” Tims says. “There’s only a few of them that you would call vibrant. What it really takes now are very high-return projects and a decent amount of internallygenerated capital, because it’s so hard to access outside capital.”
Oil pipeline capacity is needed, Tims says. “The first key towards reducing the imbalance between production and transportation, which has taken longer than everybody expected, is Enbridge’s Line 3 replacement and expansion. ABOVE: FRASER INSTITUTE FOUNDERS’ AWARD HONOURING MICHAEL J. TIMS, OCTOBER 4, 2018. PHOTO SOURCE: LEBLOND STUDIOS
8 • Business of Energy • April 2020
Noting major protests and blockades against the CGL pipeline, Tims points out the environmental upside to LNG. “Natural gas has half the emissions of oil. It can displace oil and coal elsewhere in the world, which is a good development. Maybe it’s not what the purists want, but it’s a major step forward.”
It appears to be coming through. The big question with the Trans Mountain expansion (TMX) is the risk of disruption and whether or not there will be the resolve to see it through. I think we’d be naive to think there won’t be some of the same kinds of protests [as with Coastal GasLink]. Industry and governments need to be ready for that.” The market for natural gas remains weak, with solely gas-focused drilling activity almost nil. “The economics don’t support it,” he says. “When you take the drilling and completion and tie-in costs, plus the transportation costs, it doesn’t make sense.” In the first quarter of 2020, the price of natural gas stayed around $2. Liquefied natural gas (LNG), however, is a good opportunity for Canada. “I think there has been relative consensus – among the provinces, federal government, First Nations, and companies and the public – about LNG,” Tims offers. There is currently just one LNG project moving forward in Canada: LNG Canada, a joint venture between Shell, Petronas, PetroChina Company Limited, Mitsubishi Corporation and Korea Gas Corporation. “There is a strong hope that they’ll double the size of it, because the economics actually get better on a per-unit basis,” he continues. “It appears to be proceeding, assuming we can get the Coastal GasLink (CGL) pipeline actually constructed and then the project itself constructed.” Noting major protests and blockades against the CGL pipeline, Tims points out the environmental upside to LNG. “Natural gas has half the emissions of oil. It can displace oil and coal elsewhere in the world, which is a good development. Maybe it’s not what the purists want, but it’s a major step forward.” Another bright spot for the industry is large-scale petrochemical projects. “To the extent that these projects have good economics, we should definitely be encouraging them,” he says. “It’s nice to see more finished and upgraded products being made here. It makes a ton of sense for everybody.”
9 • Business of Energy • April 2020
Investing in Alberta Energy
“
Investing in Alberta Energy | Melanie Darbyshire
“
Melanie Darbyshire | Investing in Alberta Energy
At MATCO, Tims and his team are working on the belief that another positive cycle will occur. MATCO is invested in approximately 60 companies, the bulk of which are Canadian oil and gas, oilfield services, and oil and gas infrastructure companies. Taken together, the various sub-segments of Alberta’s energy will likely provide for a modest rate of growth for the next stretch. “But it’s not likely to be overly buoyant,” Tims offers. “A slight improvement over the last five years.” The best indicator of where things are going is what the companies are spending their money on. “Both in the oilsands and in conventional oil and gas they’re down roughly 60 per cent from peak levels in 2014,” he advises. “So, things have fallen off significantly. I think they feel flat right now. It’s not falling dramatically further, but they’re certainly not rebounding vigorously either.” Given weak natural gas prices, Tims predicts a large reduction in capital spending for natural gas in the U.S. as well, which could in turn lift prices. “There’s an old saying in the oil and gas industry that the best cure for low natural gas prices is low natural gas prices. Because it removes the incentive for new drilling and then the decline rates will set in and bring it back to a level that the market will actually demand.” The price of oil, he predicts, will not go up dramatically in the near term, absent the small possibility of major disruption in the Middle East. “Right now, it’s particularly weak because of the coronavirus scare,” he says. “And it depends on how disciplined OPEC and the OPEC plus members want to be. It’s dependent on geopolitical considerations – Libya’s got production problems, Venezuela has production problems. And we do see various parts of the world, especially in Europe, where there’s a greater drive to get away from fossil fuels, which is clearly not going to help oil demand in the long run.”
In the short term, Tims believes prices might still rise if capital spending drops off enough. In addition, the movement to transition off fossil fuels to other sources of energy might have an unintended effect on prices. “It is highly likely to take quite a long period of time for this transition, but if people anticipate it happening more quickly and they stop spending on oil and gas projects, it could actually boost the price in the near term. Because that transition just can’t happen overnight.” He doesn’t discount the anti-fossil fuel movement, or that renewable sources of energy will continue to grow. “But we will need hydrocarbons for probably decades to come,” he says. “We don’t know the rate of growth in consumption, or how much of the growth can be picked up by other sources. But in 10 and 20 years from now, I think Alberta’s oil and gas industry will be OK, though I don’t think we’ll go back to a boom town. That was predicated on large-scale additions to oilsands capacity, and I’m having trouble seeing that happen right now.” At MATCO, Tims and his team are working on the belief that another positive cycle will occur. MATCO is invested in approximately 60 companies, the bulk of which are Canadian oil and gas, oilfield services, and oil and gas infrastructure companies. “Prices will probably improve over time,” he predicts. “But in the near term, they can be buffeted by many factors, including the ones we’re seeing right now. So, it’s not a super bullish statement, but we’re not exiting the picture either. We’re trying to create value out of the B investments that we have.” OE
10 • Business of Energy • April 2020
Canadian Energy is an Incredibly Persuasive Global Story | Cody Battershill
CANADIAN ENERGY IS AN INCREDIBLY PERSUASIVE GLOBAL STORY by Cody Battershill
L
et’s get back to basics and take a closer look at the case for Canada maintaining its strong position as a global oil supplier.
According to some analysts, the industry must invest several trillion to meet future oil demand through 2040, with that increased future demand pegged at more than 14 million barrels per day. The International Energy Agency puts growth in global energy demand at 32 per cent by 2040. Given Canada’s strong reputation for responsible resource development and its rigorous regulatory regime, it makes sense we play a central role in meeting that demand. I’ve stated this before, but it’s worth repeating: of the world’s top 10 oil exporters, Canada ranks number one globally in ESG metrics in every single one of the following rating indexes: Resource Governance Index 2017; Environmental Performance Index 2018; Democracy Index 2018; and Sustainable Development Index 2019. Canada also ranks first among oil top suppliers in the following indexes: Global Cleantech Innovation Index 2017; Women, Peace, and Security Index 2018; Rule of Law Index 2019; and Global Peace Index 2019. But Canada’s global market access is largely blocked due to, among other things, a lack of pipeline capacity. Non-democratic national actors with inferior environmental and human rights records are free to meet growing global oil demand while Canada is forced to sit on the sidelines. Meanwhile our human rights, environmental and worker and community safety standards are the global gold standard. Next to competitors like Saudi Arabia, there is no comparison.
And for indigenous leaders like Roy Fox, Makiinima, chief of the Kainai Blood Tribe, there’s growing support among First Nations for greater participation in the sector. Chief Fox acknowledges the causes of climate change. In fact, his tribe has invested in wind power as part of its transition to renewable sources of energy. But he wants his people to be able to develop their oil and gas resources at fair prices in order to generate revenues to improve the quality of life for community members. The same thinking has helped grow the support of almost every First Nation community located along the Trans Mountain pipeline’s right of way. Equally important, Canadians can be especially proud of the sector’s record of innovation. For example, innovation in the oilsands made steamassisted gravity drainage (SAGD) possible which removes oil from the ground and allows for a large geographic area to be developed with minimal impact to the land. While many Canadians have been led to believe Canada’s oil and gas sector is a high emitter of greenhouse gases, oilsands developments account for only about 10 per cent of Canada’s GHG emissions, and 0.15 per cent of global emissions. Even through these tough times, Canada’s industry has managed to reduce GHG emissions by 32 per cent per barrel since 1990. It’s a persuasive story, and we just have to keep B telling it. OE
Cody Battershill is a Calgary realtor and founder/spokesperson for CanadaAction.ca.
11 • Business of Energy • April 2020
Chuck Bean | The New Age of Data
THE NEW AGE OF DATA
by Chuck Bean
I
love data. I love the information it provides, and I love being able to take that data and use it to make smart decisions.
I also believe that very soon, most of our decisions will be data based and that we will not need a human to engage in the process. If the data says go left, then go left. There is no doubt that data-based business decisions are now starting to mainstream. Soon the roll of middle management will change from someone that interprets data and directs people, to someone who is a supporter and trainer, charged with ensuring that their people are energized to follow data-based directions. It is that time again when one of my favorite sources of data is published, The Edelman Trust Barometer. The 2019 edition has 78 pages of stuff all about who trusts who. Representing 27 markets with 33,000 participants, this is a rockstar report that tells the truth about who trusts who, why, how, where and when. Once again at the top of the list is Canada. In fact, this year, Canada was tied for first with Germany specific to this question; “Please indicate how much you trust global companies headquartered in the following countries to do what is right.” Now you may not be spitting out your Shreddies when you hear that statement, but I sure am. For me this information is golden and all of us who are engaged in the patch, should be thinking long and hard about how we can export our Canadian technologies, if for any other reason the fact that we are trusted and people will more likely engage commercially with us due to that trust. Out of 17 of the largest economies, the top five most trusted in order are, Germany, Canada (tied), Switzerland, Japan and the U.K. with the USA in the middle of the group of 17 and Mexico at the bottom of the list. This translates into a very distinct advantage to Canadian companies
especially if they are marketing high value or hightech products and services. Inside of the countries, NGO’s and family businesses have the greatest position of trust, and most importantly, Technical Experts rule the roost when it comes to the people that are most trusted within the corporation. This is also particularly fascinating. While so many of us believe that building a large business with a big footprint is the key to success, this data states that small family businesses with sharp technical people are the most trusted, and therefore most likely to engage and do business worldwide. Regardless of size I need to say - sorry CEO’s… the trust barometer states once again that senior executives such as CEO’s, COO’s and related executive roles are only mildly trusted. If you want to see international business growth, do your company a favor and cut your C-Suite travel budget and give it to the tech team. Another suggestion – dump C-Suite titles for your key people and replace them with titles that are more specific to what their job descriptions or outputs are. Do this and you will likely gain more engagement in the international market. What does all of this mean for us here in the Alberta Oil Patch? It means we need to leverage our global trust and take our technologies out of country where we are highly respected. It means we need to get out there, get international and get in the face of our potential clients with our technical folks leading the discussion. This sort of data paves the way and will be a significantly impactful path for growth. We can’t wait for anyone to do it for us, we need to take action and as Larry the Cable Guy would say, “get er done!” PS… do you want a copy of the trust barometer? Shoot me a note and I will send one over! B Cheers, Chuck. OE
12 • Business of Energy • April 2020
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AN ISSUE OF TRUST // BRAD FIELD
An Issue of Trust BY BRAD FIELD
A
drink here. Lunch there. What’s $300 bucks in the grand scheme of a $4.5-billion City of Calgary budget? What does that really cost?
Unfortunately, the recent mini-scandal about the expense claims of a certain city councillor isn’t just a dollars-andcents issue. The cost to Calgarians is the further erosion of trust in our municipal government. It is very difficult, if not impossible, for a government to move forward when they’ve lost the trust of those they govern – and even harder when our elected leaders don’t trust each other. We have a trust issue, and therefore a progress issue. I remember learning this lesson the hard way as a kid. My father used to say, “Trust takes a lifetime to establish, and one moment of stupidity to break down.” I must have been a slow learner, because I heard the phrase more than once, and I had to work my way back up the trust tree on several occasions. But I took the lesson with me into business, and it has served me well. An erosion of trust in business can take you down in a moment. An erosion of trust in politics is more of a slow burn. Calgary city council has stated a desire to modernize municipal government and restore public trust. Anyone who has to deal with the city on a regular basis, as my employees do, knows that modernization and trust-building are badly needed. Yet Calgary’s current municipal dysfunction starts at the top. We can all understand that there will be work that needs to be done in camera, which means behind closed doors and without public eyes, for reasons of commercial
confidentiality or personal privacy. But Calgarians have to be able to trust our elected leaders to work together professionally and respectfully, in the public chamber, most of the time. Right now, they don’t. Ideology and dogmatic positioning divide our elected representatives, who spend too much time posturing and not enough time seeking consensus or even really listening to one another. Extended processes and reversals of direction on everything from the Olympics to the Green Line suggest an inability to make sound basic decisions, let alone restore trust with voters. Nuanced, rational discourse is not happening. Yet many of our city councillors are highly-educated, intelligent people with claims of expertise in urban planning. What has gone wrong? I believe we have a “smartest person in the room” problem. From the mayor’s chair all the way around the table, we have councillors who like to talk more than they like to listen. There was a time when elected officials were unafraid to apologize for mistakes and rectify them, not make excuses. Maybe that was before Twitter. Building trust through leadership isn’t rocket science. Hire good people, give clear direction, trust them to do their jobs and be authentic in every interaction. Successful business owners learn how to do this in order to be successful business owners in 2020 and beyond. Calgarians aren’t going to be bothered by lunch here or a drink there if they’re confident that trustworthy people are working hard on their behalf. We need such people in the chairs, because there is so much work to be done to get our great city back on track.
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // APRIL 2020
9
NO-FAULT INSURANCE IN ALBERTA? // FRANK ATKINS
No-Fault Insurance in Alberta? BY FRANK ATKINS
A
s I write this article in early March, the Kenney government has convened an expert panel to examine what is widely being called Alberta’s car insurance problem. As far as I can tell, the so-called problem is being defined by the insurance industry. For instance, Celyeste Power, who is the vice-president of the western region for the Insurance Bureau of Canada, was quoted in the Edmonton Journal as saying that injury lawsuits are the biggest factor driving up insurance costs. In addition, Alberta Finance Minister Travis Toews has recently said he is hearing from insurance companies that they are selling insurance at a loss. This is a rather odd statement as, if this is true, the question is why are they even selling insurance? What appears to be going on here is that the Kenney government is yielding to the intense lobbying of insurance companies. The scary proposition is that the insurance companies, in an attempt to reduce personal injury claims, are seeking to move Alberta toward a full no-fault system for car insurance. In Alberta, we already have a form of no-fault insurance, coupled with the provision that individuals have the right to sue if they do not receive adequate compensation for their injuries. A full no-fault system would remove the right to sue. This would be extraordinarily unfair to individuals who have lost their livelihood due to negligence on the part of other drivers. In addition to this, in a full no-fault system, drivers have no incentive to correct bad habits, as insurance premiums would not be driven up by a bad driving record. The important question: why would the Kenney government consider moving toward a no-fault system? Jason Kenney ran for the leadership of the UCP and conducted the recent election based on the underlying conservative principles that free markets and less government intervention will lead to
an economy which will function more efficiently. A no-fault insurance system is exactly the opposite of these free market beliefs. Further, I cannot see how a no-fault system, such as those in Saskatchewan and British Columbia, could be implemented without the creation of a provincial insurance corporation. Imagine the bureaucratic inefficiencies that would arise with the creation of the Insurance Corporation of Alberta. It is worth pointing out that Jason Kenney recently endorsed the federal Conservative leadership candidacy of Erin O’Toole by saying, “We need a leader who is competent and principled. A leader who won’t run away from conservative principles under pressure from the media or the left.” Apparently, in spite of the reasons for his support of Mr. O’Toole, Mr. Kenney is abandoning his conservative principles in response to lobbying pressure from insurance companies. In addition to the above, Albertans need to give serious consideration to the unemployment consequences of moving to a no-fault system. As with any government policy, the implied reallocation of resources will put some people out of work. It is difficult to actually quantify how much unemployment may be created by this change. The Alberta economy already has high unemployment. A great deal of this unemployment is centred in the Calgary region, where troubles with the oil and gas sector continue. Given this, any increase in Calgary unemployment would make the current problem even worse.
Frank Atkins is a Senior Fellow at the Frontier Centre for Public Policy.
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APRIL 2020 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
• Recent $7 million renovation • 15 meeting and event spaces • Multiple menus to enjoy • Award winning wine cellar • Easy access through the +15 • Monthly member events • Free spousal membership • 60+ reciprocal clubs • Open to all businesses
You Belong Here I have been so fortunate to have had The Calgary Petroleum Club (CPC) be a big part of my life, both personally and professionally, for the last 15 years. The staff, services, food and ambiance are first class. They go the extra mile to make sure they have a memorable experience. I have always felt such a warm welcoming atmosphere when at the CPC. As a second-generation club member, I look forward to being a member for many more years to come and enjoying many more amazing memories! Thank you to the team at the Calgary Petroleum Club for running such a world class club! - Chantel Hambrook RBC Group Advantage
HOW DO I WANT TO LIVE? // GARTH MANN
How do I Want to Live? BY GARTH MANN
A
lthough our genes determine everything from our height to our physical features, our genetics account for about one-third of how healthy we are and our longevity on this planet. Indeed, there is no reason why most humans don’t live to be 100 years young, retaining good health with memory. The Dynamics for Healthy Aging, is mainly about understanding that many diseases called Chronic Health Conditions, are preventable. These diseases are traditionally known as cardio-respiratory conditions such as hypertension (high blood pressure), obesity, type 2 diabetes, anxiety— depression—dementia, toxins and substance abuse, some auto-immune illnesses and even some cancers; all of which can be prevented. Alberta Health Services stats show that a high percentage of patient visits to their doctor plus hospital emergency visits to the hospital, were related to Chronic Health Diseases. Every doctor should greet their patient with this question; HOW DO YOU WANT TO LIVE? Your doctor’s goal in assisting your health, would be better served, if they knew the answer to How Do You Want to Live? How can your doctor do his or her job well, if you are not assisting with your health? Did you know in Canada, we are diagnosed and clinically treated excessively with PHARMA? Because healthcare in Canada is free, it is essentially having little value to many Canadians. In the mind of many patients it is not their responsibility to be healthy. It is their doctor’s responsibility and the Canadian system that is accountable for those who are suffering with chronic health diseases.
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APRIL 2020 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
There are only Four Main Pillars for The Dynamics of Healthy Aging. 1. Physical stretch & flex with mobility for 20 minutes daily combined with Mental activity as a significant factor in preventing chronic health conditions. Improvement in health is measured through your biometrics (lab test results) and vitals. All of us need to read and understand the normal range and the risks for abnormal biometric results. 2.Heart and Mind Smart nutrition that is based on a Mediterranean Diet. Start your morning with whole grains such as oatmeal and perhaps limit your dairy, by adding fruits to your cereal. This will start your day with a smile on your colon. 3. Add Sleep Benefits to your Program by engaging a routine where you avoid caffeine and over-eating after 6:00 pm. Mindfulness & Meditation should be a regular 10-minute program for destressing of your mind, before you lie down in bed. Turn off your cell phone and the television then enjoy the serenity of a warm evening bath to assist your relaxation. 4. Social Activities and Stimulation and often laughter with friends or by enjoying music with others of similar interests. We are social beings who need creativity, learning additional information, and keeping our body and mind active. Do not forget compassion because in our hectic world, this is often forgotten. Now ask yourself, “HOW DO I WANT TO LIVE”?
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Liftboss is proud to introduce another first in the construction industry, JCB’s compact, tracked backhoe loader. The 1CXT provides superior maneuverability, an optional handheld tool auxiliary, as well as a universal quick hitch that is compatible with most skid steer attachments. The machine is equipped with a 49 hp engine that requires no aftertreatment. iftboss Inc. was established in May 2006 by adding JCB construction equipment in 2017 has been Lessfour than six feet wide 7-feet-6 other backhoe loader willmore fit. partners John and and Andre Gagnon,tall; Daleput it to awork great where addition,no and has made Liftboss Inc. even
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Beatty and Marc Tougas to be a one stop shop visible in the heavy equipment industry in Alberta. dealership for all material handling needs. Having They will always stay true to their material handling worked in the industry before, the four partners, roots, but having an established and well respected Give us a call for more info or to arrange a demo. pooled all there resources, previous experience construction line has solidified the fact that Liftboss together and designed a new business model to fill Inc. is here for the long haul and ready to compete. the much needed niche that the industry needed. Liftboss Inc. is an Alberta owned and operated Whether you are looking for a new machine, a rental, dealership, offering new and used equipment sales, service or parts on an existing unit, or simply want a total parts department, forklift rentals, forklift a second option on something, give them a call and training, trained and certified mechanics to perform they will be happy to point you in the right direction. repairs in shop and service vehicles to handle on site As a group, Liftboss Inc. do what they do based repairs. Liftboss Inc. prides it’s self on quick response on four core values: do what you say you will in a time to customer’s breakdowns. timely manner; be open and honest; do whatever it takes; and service the customer above all else. As Customer service was the reason the company each department grows, each team member is held was born, and has captured an impressive share accountable to those principles, their focus of business for Liftboss. In the past 3 years, the is to be a quality company that people downturn in the Alberta economy has definitely are proud to work for. affected the sales activity, but comparatively the service and parts business has noticed substantial growth. The sales team builds portfolios for each client’s needs and service preferences; this way, they can have a conversation with a client instead Introducing the future of construction equipment. of simply walking them around the The new JCB Hydradig is the world’s first wheeled excavator and showroom. Their clients appreciate tool carrier designed for purpose and built without compromise. the attention and reward them with Travel to—and around—work sites faster than ever, maneuver into repeat business and referrals.
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An Open Letter to Everyone Affected by Cancer Hi, I’m Steve. Iʼve met a bunch of you at cancer events over the years but I want to re-introduce myself and see how youʼre doing. Iʼm that guy with the microphone, cheering you across a finish line, reading out cancer statistics -- Iʼm that emcee guy. I love that role and getting to meet so many of you and hear your stories, but a lot of the time I feel like Iʼm still on the sidelines…just talking. Every time I read out those cancer stats they haunt me: “About 1 in 2 Canadians will develop cancer in their lifetimes and 1 in 4 will die of the disease.” Those numbers mean every one of us is affected. So, when I ask how youʼre doing I know Iʼm not just talking to those of you currently in treatment, Iʼm asking you, the person with a parent who was just diagnosed; and you, the person whose treatment was successful, but went through hell to get here; and you, the person honouring loved ones who were taken by this disease.
I want cancer to be solved. I want more memories and fewer goodbyes. I’ve decided to get off the sidelines and I need your help. Iʼve teamed up with some of the most visionary and determined people in Alberta to create a new kind of fundraiser. Itʼs starting in Calgary then expanding to over 100 events across Canada in the next ten years. Weʼve built it to address the concerns and hopes Iʼve heard from many of you. Itʼs called Spin For Life and it benefits the Canadian Cancer Society. Hereʼs the deal: I need 1,400 of you to sign up and say you want to kick cancerʼs ass. Individually, youʼll spend one hour on a spin bike and commit to raising $1,000. But, together -- 1,400 of us -- weʼll raise over $1.4 million and spin 40,075 km -- the circumference of Earth -- in one day. It will be literally record breaking. I promise you weʼre making it accessible, indoor, and packed with entertainment. Itʼs an immersive experience themed around biking a different area of the world each hour. Thanks to our like-minded growing list of sponsors and patrons who are covering all the event costs, 100% of your donations are going where you want them to: the cancer cause. We can, together.
Steve Klintberg Nagy, Co-founder of Spin For Life
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Calgary Jewellery Carries on its Legacy while Redefining Luxury
Building on the foundation laid over 65 years by three generations, Calgary Jewellery is set to carry on its legacy towards a new chapter that will Redefine Luxury. Les and Dora Florence first opened doors in 1955 building Calgary Jewellery into a thriving and welcoming business for the generations to come. Now onto its 65th year, Calgary Jewellery is a respected business where many families have built CJ Rendering January 2020 long-lasting memories. While it is no secret that jewellery is beautiful and easy to admire, great jewellery Over the past 15 years, Calgary Jewellery has had the evokes a powerful deep-rooted sense of happiness in honour of bringing smiles to many faces and has built all of us. From loose diamonds to beautifully curated countless memories while serving the people of Calgary in designs, Calgary Jewellery houses both national its 2500 sq. ft. of retail space. and international jewellery brands while offering its Now in 2020, Calgary Jewellery is working towards taking customers the choice of designing their jewellery. a step into the future where luxury as we know it is set to Additionally, Calgary Jewellery has the largest selection be redefined. Carrying on the legacy of offering exceptional of more than 20 Swiss watch brands, some of which are jewellery and timepieces via excellent personalized customer exclusive to the business. They also carry a wide selection of service, Calgary Jewellery will be moving two giftware ranging from luxury pens, notebooks and leather blocks west to 1317 - 17th Avenue in 2021 from its current goods to exquisite pieces of crystal art from France. location of 1201 - 17th In 2004, Calgary Jewellery went through a complete Avenue. With an upgraded retail space of over 6000 sq. ft. renovation that welcomed modernization in its design and plus a second floor that will house its administration office service that helped in the acquisition of new brands. More and a patio for exclusive events, Calgary Jewellery is excited importantly, they saw a growing increase in customers who to once again be a landmark in the city of Calgary. felt intrigued and welcomed into the new space.
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APRIL 2020 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
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CALGARY’S SINGLE-FAMILY MARKET // REAL ESTATE
CALGARY’S
Single-Family MARKET
BUYER’S MARKET CONTINUES AS OPPORTUNITIES VARY WITHIN PRICING, LOCATION AND COMPETITION IN NEW AND RESALE INVENTORY
BY NATALIE NOBLE
W
hile Calgary’s single-family housing market is shifting towards stabilization, conditions are not balanced across the board. Still classified a buyer’s market, opportunities vary based on divergent trends according to price bracket, location and competition between new and resale product. “After five years of weakness, we’re starting to see much more stabilization for the citywide numbers, but I can’t stress enough that trends will vary depending on price range and location,” says Ann-Marie Lurie, chief economist with the Calgary Real Estate Board (CREB).
“AFTER FIVE YEARS OF WEAKNESS, WE’RE STARTING TO SEE MUCH MORE STABILIZATION FOR THE CITYWIDE NUMBERS, BUT I CAN’T STRESS ENOUGH THAT TRENDS WILL VARY DEPENDING ON PRICE RANGE AND LOCATION,” SAYS ANN-MARIE LURIE.
As 2019’s detached sales slightly decreased over the previous year, activity remains low compared to historical numbers. “Detached sales really came down over the past several years, especially when the stress test changes came in in 2018. We saw a pull-back in sales activity and it’s taking some time to rebound,” says Lurie.
ABOVE: ANN-MARIE LURIE, CREB’S CHIEF ECONOMIST. PHOTO SOURCE: CREB
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APRIL 2020 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
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CALGARY’S SINGLE-FAMILY MARKET // REAL ESTATE
LOCATION IS ALSO TIPPING THE SCALE. INCREASINGLY ROBUST AS PROXIMITY TO DOWNTOWN ADVANCES, THE SINGLE-FAMILY MARKET WEAKENS AS IT RETREATS, ACCORDING TO CHRISTIAN TWOMEY, SALES ASSOCIATE WITH RE/MAX LANDAN REAL ESTATE. Creating some movement later last year, benchmark prices decreased over the previous year by over three per cent. “As they came down, it started to bring back some of the buyers. As we move through this year, we could start to see improved sales activity in the higher end, but not because prices are improving,” says Lurie. “It’s because there have been price declines and that should help support some sales improvement this year. But, especially in the upper end, we’re far away from seeing price stability quite yet.” Homes priced over $500,000 currently account for nearly 60 per cent of the detached market so areas with excess supply could see more price movement. “The areas struggling the most in terms of the highest price decline are the city centre and the west end [which are] some of the highest priced areas on a district level basis,” she says. These areas saw benchmark prices decrease up to five per cent, while the northeast saw the lowest price decline at under two per cent. Demand for homes under $500,000 grew with price declines, favourable lending rates and lowersector job growth. However, those price declines are slowing in the more affordable areas, including the north, east,
northeast and southeast districts. “That market is starting to see a lot more stabilization,” says Lurie. Location is also tipping the scale. Increasingly robust as proximity to downtown advances, the single-family market weakens as it retreats, according to Christian Twomey, sales associate with Re/Max Landan Real Estate. Illustrating this trend, Twomey recalls a recent experience with a client relocating from the southeast corner of the city to downtown. After struggling for three months to even pique buyer interest, the property sold. But the downtown purchase presented its own challenges. “They went from clawing for a showing in the southeast, let alone an offer, to looking to buy really close to downtown and going into multiple offers,” says Twomey. “It was such a contrast they couldn’t believe it.” Canada Mortgage and Housing Corporation (CMHC) findings confirm location is dividing this market. “In terms of area, the highest absorbed average price for a singlefamily home in Calgary occurred in what we call the North Hill survey zone and that was at just over $1.3 million,” says Heather Boyer, senior analyst for CMHC. In contrast,
ABOVE: CHRISTIAN TWOMEY, RE/MAX LANDAN REAL ESTATE. PHOTO SOURCE: BRENT TAYLOR PHOTOGRAPHY
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APRIL 2020 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
CALGARY’S SINGLE-FAMILY MARKET // REAL ESTATE
“We have the lowest occurring in the Fish Creek zone at just over $550,000.”
aware of competing supply,” says Lurie. “That’s not just on the resale side, but on the new home side as well.”
Meanwhile, moderate oversupply in the new-build market is also a factor, according to CMHC’s 2020 first quarter Housing Market Assessment. “We are seeing a bit of overbuilding in Calgary,” says Boyer “There is some upwards movement in inventory levels there and part of this can be attributed to the buyer’s market conditions. People may be choosing to go to the resale market where there’s a bit more leeway in average price than purchasing a new home.”
Still, with the right strategy, Twomey says today’s market provides an opportunity to move up while the potential equity gain is greater. “There are some phenomenal buys in Calgary right now. If you’re a first-time homebuyer, it is fantastic. Also, if you’re looking to move up, now is the time,” he adds. “There are huge advantages right now and I couldn’t imagine a better position to be in.”
That competition within the new and resale sectors weighs in heavily, particularly in the suburban areas where new builds are predominant. While “brand new” appeal is high for buyers wishing to customize various features, they are typically responsible for the extra costs of finishing the property. These items, such as fencing, landscaping and building decks, are normally included in a resale purchase.
Of course, this may mean a disadvantage for those in other positions. “If you’re equity locked and you’re looking at downsizing, my advice over these last couple years has been, ‘maybe now is not the right time. And if you can hold on – hold on.’”
“I would say there’s more volume being traded in the resale market because people don’t have that extra liquid cash laying around right now to accommodate these things,” Twomey says. “What’s interesting is that we’re starting to see new-home builders recognize where their shortfalls are and they’re accommodating that need by adding these features into their specifications.” While increasing buyers’ options, competition complicates matters for sellers. “Sellers have to be aware of how much supply is available in their region. Not just in their own neighbourhood, but in those around them so they are
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // APRIL 2020
23
Papa John’s Delivers
by Rennay Craats
T
he path to becoming the master franchisee for Papa John’s in Western Canada started with a favour. Mark Murphy was an electrical engineer at a naval weapons facility in Louisville, Kentucky, when his friend needed a delivery driver for his new Papa John’s Pizza franchise. Murphy was happy to help. “I delivered for a couple weekends for him and thought, ‘wow, people like this stuff’ and that’s when I first pursued opening my own store,” says Mark Murphy, Papa John’s Western Canada Master Franchisee and Senior Managing Director for Perfect Delivery Canada. While Papa John’s has more than 4,700 stores in 37 countries and territories today, in 1987 it was a fledgling company. Papa John’s opened the first store in 1984 and Murphy wanted to be part of the Papa John’s movement. He opened store #20 in Prospect, Kentucky, in 1988. “I built my own store, laying every brick, putting up all the drywall and installing every counter myself,” he says. Today’s franchisees undergo an eight-week training course to learn everything they need to know about the pizza business, but Murphy tackled the challenge of running his own store with only a work ethic and what he had learned about the business while delivering pizzas. It should have been a disaster, but Murphy was committed to succeeding—and he did. Within a few years he opened another Papa John’s in Kentucky, and along with various business partners opened nearly 20 more locations in North Carolina, California and Alaska. Murphy and his partners sought a market that allowed them to buy multiple units, and that search brought them to Canada. They decided to start their northern pizza expansion in Calgary, and in 2000 opened the Bonavista location. “The prairie provinces reminded me more of middle America, and that was a feel I was used to,” Murphy says. “When I came to Alberta it felt comfortable to me and I felt the entrepreneurial spirit. That’s what drew me here.”
the city under the company he and his partners formed called Perfect Delivery Canada. Murphy lived in Calgary for the next five years to manage the stores and soon expanded its portfolio to eight local restaurants. Despite the rocky provincial economy, Papa John’s thrived and as the economy turned around, business started booming. The problem was he couldn’t find enough people to run his Calgary locations and even looked to foreign workers to ease the labour shortage.
He was so comfortable here that he bought the development rights for Calgary and quickly opened three more stores across
“I was working about 126 hours per week. I had no employees and was watching everything I built fall apart,” he says.
www.papajohns.ca
Murphy approached the Papa John’s team and suggested the area switch to an owner/operator model and head office agreed. Perfect Delivery Canada became the master franchisee for Western Canada and Papa John’s continued to expand across the province. It has proven a successful model. The western Papa John’s franchisees are all local, independent individuals and businesses, many of whom were already in pizza or food service. These Canadian entrepreneurs support the local economy, hiring employees from the community as well as buying predominantly Canadian ingredients including 100 percent real Canadian mozzarella. Papa John’s growth has been meteoric. Alberta has 55 restaurants with almost 20 in Calgary—and adding more all the time. Murphy and his partners plan to open 100 more franchises in the Prairies while retaining ownership of their own six stores. “We want to feel what the franchisees in the area are feeling. Papa John’s wants us to live in reality with the rest of the franchisees. It makes us a better partner,” Murphy says. Papa John’s supports its franchisees and as a result the brand has flourished. By opening their own distribution centre and regional office in Calgary, Perfect Delivery reduces costs for franchisees, thus further encouraging growth of the brand. More growth means there are more restaurants providing Calgarians with “Better Ingredients. Better Pizza.” From top to bottom, Papa John’s Pizza is made with only the best quality ingredients. The dough is delivered fresh to each restaurant and Papa John’s signature sauce, made from vine-ripened tomatoes, is a source of pride. The toppings offered are only superior quality meats, fresh vegetables and high-quality cheese to guarantee a spectacular slice. “There’s a lot of accountability in the ingredients,” he says. “We have no fillers, no added MSG, no additives.” Patrons can taste the difference carefully selected ingredients makes. It is what makes Papa John’s a go-to pizza choice for Calgarians—and a first option for company lunches. Account representatives liaise with companies to ensure these corporate menu orders go off without a hitch. “Companies develop relationships with our account reps. If companies need something special like delivering at a certain loading dock or plates and napkins or heated bags, we make sure things go right,” Murphy says. “We do whatever it takes to make them happy.” Papa John’s has been making hungry Calgarians happy for twenty years. Mark Murphy and his team make sure of it.
NOT YOUR
The Tower Cleaner team.
Tower Cleaners Goes Above and Beyond
TYPICAL DRY CLEANER by Rennay Craats with photos by Riverwood Photography
W
hat started as a small dry cleaning business in 1978 evolved into an industry-leading operation reaching far beyond dress shirts and stain removal. When Tony Stephen and his wife Sassa bought Tower Cleaners in 1996, they did so with little more than $90 cash, their home as collateral and a loan from his parents. While Stephen wasn’t looking to buy a six-store business right out of the gate, the previous owner had a good feeling about him and was committed to making a deal. “He allowed us to leverage the equipment against the bank loan and we did vendor take-back financing,” says Tony Stephen, CEO/Owner of Tower Cleaners. “The first couple years, I wasn’t sure we were going to make it but then we just started taking off.” He built the brand, buying out smaller dry cleaners along the way and slowly opening new stores as communities grew in Calgary and surrounding areas. Today, Tower Cleaners is the largest privately-owned retail dry cleaner in the country with 26 locations across Calgary and Airdrie plus 17 stores in Winnipeg under other names and a commercial laundry in California. The Tower Cleaners staff of more than 120 in Calgary (and another 180 across divisions) contributes years of experience
and takes pride in where they work. They are treated like family and know that management protects them like family too. “Everything here is eco-friendly, all of our soaps, all of our processes. We’ve always been ahead of the curve on environmental practices,” Stephen says. Tower Cleaners has been using machines and solvents that are gentle on garments and environmentally safe since long before regulations dictated it. They continue to go above and beyond to be more efficient. The plant recycles water, harnesses heat from the dry cleaning machines for the hot water tanks and replaced fleet vehicles with more efficient models to reduce the company’s carbon footprint. Through the years, Tower Cleaners has been able to provide next-level service and efficiency through its adoption of the latest technology. “This is one of the most automated dry cleaning plants in North America. We were the first to automate everything right through to the payment system,” says Rajesh Manan, President of Tower Cleaners. With state-of-the-art machines like folders, cuff-and-collar machines, and steam tunnels, Tower Cleaners can clean and press 500 shirts and 200 pairs of pants every hour. Then an
Rajesh Manan, Sassa Stephen and Tony Stephen. Huong Le and Nicky Pathammavong .
automated conveyer system distributes finished garments around the plant until an order is assembled, bagged and labelled for delivery. Every garment is barcoded so staff knows exactly where an item is and where it needs to go for maximum accountability. Despite the incredible automation across the 15,000-squarefoot plant, Tower Cleaners still applies personal touches to each garment. Stain specialists address spots on clothes to ensure garments are properly treated and ready to wear. There are also delicate or unique pieces that staff work on by hand for best results, all the while checking to ensure there are no broken or missing buttons that need replacing before returning garments to customers. Tower Cleaners also introduced a subscription wash and fold laundry service where clients fill a bag with their weekly laundry, which is picked up, washed and returned folded in a few days. “It’s really simple for people. They can just fill up their bag and leave it on their doorstep for us to collect, clean and return to them – at a fixed monthly cost. It has been super popular and we’re getting good traction with it,” says Manan. What Tower Cleaners offers customers goes beyond retail stores and standard cleaning services; the company also offers restoration after a fire or flood through its CRDN franchise for Southern Alberta and Manitoba. After a fire or flood, a CRDN team is dispatched to collect clothing, drapes, rugs, cushions and even electronics from the home for proper cleaning.
Clothing, shoes and purses are processed using a specialized decontamination process, while electronics like televisions, phones, treadmills, fridges, stoves and dishwashers are assessed to ensure damage is related to the incident so covered by insurance and then dehumidified, cleaned, and thoroughly tested before being returned to the client. As with dry cleaning, each item is barcoded and tracked through the process with clear labels and documentation so clothes and electronics can be returned to exactly where the team found them. “Restoration services has significantly grown since we took it on 12 years ago. It’s one of the fastest growing areas of our business right now,” says Stephen. Stephen and his wife Sassa, Manan and his wife Dalmy, and Stephen’s son Terrell created a supporting business to restoration called Accomsure, which helps secure temporary accommodations for fire or flood victims across Canada. These services are amazing resources that people often don’t realize are available through insurance. With 30 years of experience in dry cleaning and an incredible team around him, Tony Stephen has built Tower Cleaners into an industry leader. “It’s grown because of his vision and belief, and he’s always been the guy to push us forward. He’s never steered us wrong,” says Rajesh Manan. Tony Stephen is excited to continue steering Tower Cleaners forward with its diverse services and commitment to quality.
Main Plant: 402-53 ave SE. Calgary, Alberta | Ph: (403) 262-3791 | Email: info@towercleaners.ca
www.towercleaners.ca
GOING GREEN // ENVIRONMENTAL STEWARDSHIP
Going Green WHAT COMPANIES ARE DOING TO PROTECT THE ENVIRONMENT BY ERLYNN GOCOCO
I
n a time when climate change is on the forefront of people’s minds, companies are making it a priority to promote environmental awareness and demonstrate a shared responsibility for practices, which support a healthier environment for all.
R&D centre in Lyon, France. The company is driven by their awareness of societal development’s dependence on concrete. In fact, they project that 60 per cent of the buildings and infrastructure that humanity will need by 2050 has not yet even been constructed.
Several Calgary-based companies are making significant investments into environmental stewardship and technologies that protect the environment and Alberta’s natural resources including water quality, air, natural lands and wildlife.
“This gives us an opportunity to make a fundamental change by leading transition towards low-carbon, recyclable and recycled models that support the circular economy,” says Jill Truscott, Lafarge’s manager of communications for Western Canada. “The most cost-effective carbon reduction will be achieved by improving the carbon efficiency of buildings and infrastructure across their life cycle.”
Lafarge Canada Inc., a member of LafargeHolcim, aims to reduce emissions to 520 kg CO2/tonne by 2030. And they are well on their way with more than 70 per cent of this trajectory already achieved, thanks to a sizable investment in the development of low-carbon solutions, led by Lafarge’s
Truscott adds, “Until recently the focus has been on building energy consumption and now we are focused on the carbon intensity of construction materials.” She also says that
ABOVE: SOUTHLAND TRANSPORTATION SCHOOL BUS. PHOTO SOURCE: PACIFIC WESTERN TRANSPORTATION
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Lafarge is confident they will achieve the remaining 30 per cent of their goal to reduce emissions by leveraging existing technologies including reducing the clinker content in cement, improving energy efficiency and increasing the use of alternative materials and energy sources. “We also advocate for a level playing field between domestic producers and importers at a policy level to reduce the likelihood of carbon leakage.”
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Technology upgrades, says Truscott, have also led to a 60 per cent reduction in sulphur dioxide emissions, a 40 per cent reduction in nitrogen oxide emissions and a significant reduction in fugitive dust and noise, which comes from the plant’s equipment. She adds that Lafarge’s Exshaw plant also has achieved a zero-water discharge from its operations and emphasizes the company is not complacent or stopping there. “The facility is currently undergoing additional upgrades to
// ENVIRONMENTAL STEWARDSHIP
GLASS IS PROUD TO SHARE THAT SOUTHLAND TRANSPORTATION’S PROPANE BUSES HAVE RESULTED IN THE REMOVAL OF 3,229.30 METRIC TONS OF CO2E (STANDARD UNIT FOR MEASURING CARBON FOOTPRINT) FROM ENTERING THE ATMOSPHERE IN 2019 ALONE. allow for alternative fuel co-processing, which will further reduce the use of fossil fuels.” On the energy front, Lafarge has investigated alternative methods in order to maximize efficiencies at its Richmond, B.C. cement plant. These methods, which produced impressive results, included a compressed air audit, fan studies and end-use assessments. Consequently, the plant upgraded their combustion and cooler systems to optimize performance leading to 15.6 gigawatt hours per day in energy savings, with the possibility of an additional 21 gigawatt hours per day of identified energy savings. Murray Glass, Pacific Western Transportation’s vice president of student transportation, says Southland Transportation, which operates under Pacific Western, has been exploring propane as an alternative to diesel fuel for its school bus fleet since the early ’80s.
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“Our propane fleet presents a sustainable solution to reducing toxic emissions and is a major step towards transitioning the transportation industry to a lowcarbon economy,” says Glass. “Propane-fuelled buses are an excellent fit for the environmental mindset shift occurring in society, and they expand upon the benefits of a strong vehicle-idling policy as they warm up faster and reduce idling time.”
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Glass is proud to share that Southland Transportation’s propane buses have resulted in the removal of 3,229.30 metric tons of CO2e (standard unit for measuring carbon footprint) from entering the atmosphere in 2019 alone. That, says Glass, represents the equivalent of preventing approximately 686 passenger vehicles from being driven for a year, or 3,558,246 pounds of coal being burned.
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“Our propane fleets help us reduce greenhouse gas emissions by 44 per cent compared to using diesel fuel and, unlike liquid fuels, in the event of a leak, propane becomes vapour, which does not contaminate the soil, air or aquifers. Propane emits 60 per cent less carbon monoxide than gasoline, 98 per cent less particulate matter than diesel and contains virtually no sulphur, a contributor to acid rain.
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“Student transportation can be considered a mass transportation solution; thus, it is inherently environmentally friendly,” adds Glass. “In fact, a single
SMWL.COM LEFT: MURRAY GLASS, VICE PRESIDENT OF STUDENT TRANSPORTATION, PACIFIC WESTERN TRANSPORTATION. PHOTO SOURCE: PACIFIC WESTERN TRANSPORTATION
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// ENVIRONMENTAL STEWARDSHIP
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school bus has the potential to prevent 72 school-bound vehicles from taking to the road.” Southland Transportation boasts the largest fleet of propane-fuelled school buses in Canada with 731 buses and was a finalist for an Emerald Award in the Large Business category. The Emerald Awards recognizes companies exhibiting outstanding environmental achievements. Also recognized for its environmental stewardship is homebuilder Jayman BUILT. President and chief operating officer Dave Desormeaux says the company sells homes in the range of $300,000 – $900,000, which can be challenging when it comes to innovation, sustainability and energy efficiency. However, over time, Jayman BUILT has been able to make standard in every home a 96 per cent highefficiency two-stage furnace, LED lighting, triple-pane windows, high-efficiency instant hot water on-demand systems and heat-recovery ventilators, which replaces air every three hours with fresh air. Desormeaux adds that as of 2019, all Jayman BUILT homes come standard with six solar panels. “The time was right; it made sense. Climate change was being universally acknowledged as a serious concern and the economic downturn in Alberta also made the utility/energy cost savings highly desirable by customers. Energy costs also were continuing to increase, especially electricity.” Jayman BUILT is pleased to have entered into an exclusive agreement with Western Canada’s leading solar contractor, SkyFire Energy. “The addition of solar panels saves our customers an average of 25 per cent on electricity bills, and as electricity rates rise, future savings will as well. In 2019, based on the number of homes we sold, collectively, our homeowners are now producing 1.5 megawatts of clean electricity from our amazing bright Alberta skies through the 4,700 solar panels installed that year.”
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As an added bonus, electric vehicle charging stations are now also standard in most Jayman BUILT homes. Desormeaux says charging outlets may seem premature, however, by 2021/22, the number of electric vehicles on the road is expected to increase. Electric vehicles also will have an operating cost 58 per cent less than conventional gas and diesel cars.
ABOVE: SOLAR PANELS ON JAYMAN BUILT HOMES.
APRIL 2020 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
Calgary Stampede communications advisor Christine Thompson says she is proud of the number of programs and initiatives in place to protect the land on and around Stampede Park. “All of our paved parking lots that line the river have sediment separators and stormsceptors and storm vectors to minimize the sediment entering into the river.” In partnership with Trout Unlimited Canada, Calgary Stampede also participates in the Yellow Fish program, which sees storm drains marked with a painted yellow fish to ensure no contaminants are entering into the river. The organization also has a rigorous spill-response program, which ensures all spills on Stampede Park are reported, monitored and cleaned up accordingly, with the intent of preventing spills from entering any storm drains, and subsequently, the river. By investing in environmental stewardship, companies are investing in the future. “What better motivator to engage clean and sustainable transportation practices than the very children who will inherit the future? Each day, our fleet of school buses safely transports close to 100,000 students, which provides us with a constant reminder of what truly matters and what to keep at the forefront of our day-to-day operations,” says Glass.
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THE PREMIER’S PLAN – ONE YEAR IN // COVER
THE PREMIER’S PLAN
ONE YEAR IN J A S O N K E N N E Y O N A L B E R TA’ S F U T U R E
BY MELANIE DARBYSHIRE
A
year ago, in the midst of one of the worst and prolonged economic downturns in Alberta’s history, Jason Kenney led the United Conservative Party (UCP) to victory in the 30th provincial election. Winning 54.88 per cent of the popular vote and 63 seats in the legislature (with 64 per cent voter turnout, the highest since 1982), Kenney’s UCP ran on a platform of 375 specific commitments – from lowering the corporate tax rate to scrapping the carbon tax to opening Alberta for business again – aimed at turning Alberta’s economic prospects around. Since forming the government on April 30, 2019, Premier Kenney and his team have been busy: over 30 (and counting) bills and two budgets (with a deficit of $6.8 billion); negotiations with and amendments (including cuts) to contracts with public sector employees; numerous cross-country and border trips to foster alliances and “sell” Alberta; creation of the Canadian Energy Centre (the CEC or so-called “war room”); legal challenges against harmful
federal legislation; and, creation of the Fair Deal Panel, now travelling around the province to hear from Albertans. Nonetheless, the province continues to suffer. Unemployment remains high; the federal (and some provincial) government(s) appear resolved to eradicate Alberta’s oil and gas industry; Canadian public opposition – ranging from banal apathy to organized protests and dangerous blockades – to energy developments persists; mega-projects have been delayed (Trans Mountain expansion), rejected by the feds (Enbridge’s Northern Gateway pipeline) or abandoned (Teck’s Frontier oilsands mine and TC’s Energy East pipeline). Public sentiment in Alberta is understandably low. How does the man in charge see things? “I’m very happy with how quickly our government has acted to deliver on over 200 of our electoral commitments,” Kenney says frankly. “It’s been a super-packed agenda and I’m very impressed with our team. I have a largely rookie cabinet, but they haven’t made rookie mistakes.”
RIGHT: JASON KENNEY, PREMIER OF ALBERTA. PHOTO SOURCE: BOOKSTRUCKER
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THE PREMIER’S PLAN – ONE YEAR IN // COVER
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THE PREMIER’S PLAN – ONE YEAR IN // COVER
He acknowledges that many problems remain. “We continue to dig our way out of five years of economic malaise,” he says. “We inherited a province that was basically in recession in 2019 and we continue to face very strong challenges – from the campaign to landlock our energy to a federal government that seems hostile to our economic interests. Those challenges remain, but I like a good challenge.” A key pillar to Kenney’s plan is the reduction of the corporate tax rate, from 12 to eight per cent over two-and-a-half years (the rate was lowered to 10 per cent last June). Critics have argued the cut is burdensome on public expenditures and is not having the intended effect. (In January, Scotiabank reduced its forecast for the province’s 2020 economic growth to 1.6 per cent from its initial 2.4 per cent projection.) “We didn’t expect it to have a significant economic lift until closer to full implementation,” Kenney counters. “We’ve gone from 12 to 10 points, but we still have to take it down to eight. The economists all underscored the stimulative effect would be felt most in the outer years, because businesses can’t change their investment decisions overnight.” Once it drops to eight per cent, he predicts more money will flow to Alberta. In fact, his government is in discussions with some major corporations in the financial services and aviation industries with advanced plans to move significant operations from other parts of Canada to Alberta, in large measure due to the corporate tax cut. “When Telus announced last fall that it’s going to increase its planned capital investment in Alberta over the next five years by $16 billion, it identified the job creation tax cut as one of the reasons,” Kenney says. “We’re also working on three prospective major petrochemical projects in Alberta, each in the game for $10 billion plus in capital expenditures. They’ve all identified the tax cut as a major reason.” Alberta competes against places like Texas for energy business, he continues, which effectively has no corporate state tax. “We believe this [Alberta’s tax cut] has got us back in the game. And I’m confident when you look back a couple years from now, we’ll see that it really has been a game-changer.” Indeed, in February the Canadian Association of Petroleum Producers (CAPP) projected a positive turnaround in
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ALBERTA COMPETES AGAINST PLACES LIKE TEXAS FOR ENERGY BUSINESS, HE CONTINUES, WHICH EFFECTIVELY HAS NO CORPORATE STATE TAX. “WE BELIEVE THIS [ALBERTA’S TAX CUT] HAS GOT US BACK IN THE GAME. AND I’M CONFIDENT WHEN YOU LOOK BACK A COUPLE YEARS FROM NOW, WE’LL SEE THAT IT REALLY HAS BEEN A GAME-CHANGER.” investment in the Alberta energy sector for 2020, with a projected $2 billion of increased investment this year, with eight per cent growth in the oilsands and four per cent in the conventional basin. And the corporate tax cut is beneficial to all Alberta businesses. “It’s the best way to promote diversification,” Kenney says. “We need to create the right overall market conditions, rather than narrow subsidies or tax preferences, with some very limited exceptions.” Those exceptions include the petrochemical diversification program, necessary to compete against the Gulf Coast. Diversification, he cautions, can’t come at a cost to the energy industry. “The two have to go together,” he urges. “We have a current global market value of over $11 trillion worth of oil in this province. And trillions more in natural gas. So, whether people like it or not, this is by far and away the largest industry in Alberta, the largest sub-sector in the Canadian economy. “One of the best ways to continue the 30-year gradual diversification of the Alberta economy is by extracting greater value from our energy sector,” Kenney continues. He points to several sectors – for example information technology, research and development and petrochemical – which are spinoffs of energy. The tourism and agri-food industries are other sectors with promising growth potential.
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THE PREMIER’S PLAN – ONE YEAR IN // COVER
Other business-boosting measures implemented by Kenney’s government include amending labour laws (elimination of automatic union certification with carding and a reduced minimum wage for youth, among other measures), the red-tape reduction initiative (to reduce by at least one-third the number of regulatory requirements imposed by government), and the Royalty Guarantee Act. “We want investors to know that when they invest in a well in Alberta, the royalty regime is not going to be jerked around by politicians,” Kenney offers. “It’s predictable and stable. “Our goal is to be the freest and fastest moving economy in North America – to give us that competitive advantage on the regulatory cost of doing business.”
The decision by Teck Resources to withdraw its Frontier mine application in February (the blame for which Kenney places squarely on the Trudeau government) undermined that goal, as have the rail blockades and protests. “The Government of Alberta is prepared to do whatever it takes to ensure our economic future, including a future of responsible resource development,” Kenney says categorically. “We will not back down. Alberta is prepared to invest directly and support companies and indigenous groups when necessary to ensure the future of responsible resource development. We rule nothing out in that regard.” The first bill tabled by the government in the spring session aims to prevent protesters from setting up blockades, protests or similar activities on infrastructure deemed essential by imposing stiffer fines and potential jail time.
ABOVE: PREMIER JASON KENNEY SHARES A LAUGH WITH THE LATE JASON GOODSTRIKER FOLLOWING ALBERTA’S SPEECH FROM THE THRONE (MAY 22, 2019)
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THE PREMIER’S PLAN – ONE YEAR IN // COVER
KENNEY’S GOVERNMENT ESTABLISHED THE $1-BILLION ALBERTA INDIGENOUS OPPORTUNITIES CORPORATION, TO INCREASE INDIGENOUS COMMUNITIES’ ACCESS TO CAPITAL AND TECHNICAL SUPPORT TO INVEST IN NATURAL RESOURCE PROJECTS AND RELATED INFRASTRUCTURE. Another critical fight with Ottawa is over Bill C-69, the so-called “no more pipelines” law. “It creates massive uncertainty and potentially endless timelines for major projects, not just in oil and gas but in other industries,” Kenney warns. The fight will end up at the Supreme Court of Canada, where nine out of 10 provinces and every major industry group will oppose it. “We’re also looking to support prospective First Nations challenges to the constitutionality of C-69 and the tanker ban [Bill C-48],” he adds. “We’ve created the $10-million indigenous legal defence fund to level the playing field.” The first recipient of the fund is the Woodland Cree First Nation, which received $187,688 to join the province’s challenge to Bill C-69. “So much of what we read in the news about Aboriginal opposition to resource development is completely distorted,” Kenney laments. “The truth is that the vast majority of western Canadian First Nations support responsible resource development.” Indeed, in his first month in office, he convened a meeting of all 48 Alberta chiefs who were virtually unanimous in their support for economic and resource development. “All 20 northern B.C. First Nations, through which the Coastal GasLink pipeline is projected to pass, support it and have benefit agreements with TC Energy. All 14 northeast Alberta First Nations in the area around the proposed Teck Frontier mine supported it. We have three Aboriginal consortiums vying for prospective co-ownership of TMX. For me, indigenous inclusion in resource development is key.”
To facilitate this, Kenney’s government established the $1-billion Alberta Indigenous Opportunities Corporation, to increase indigenous communities’ access to capital and technical support to invest in natural resource projects and related infrastructure. While his government scrapped the provincial carbon tax and won a key victory against the federal carbon tax at the Alberta Court of Appeal in February, he reiterates his government’s commitment to reducing greenhouse gas emissions. To this end, the Technology Innovation and Emissions Reduction (TIER) plan was implemented, projected to help reduce emissions by 53 megatons per year. “It took a lot to get an equivalency agreement with the federal government,” he says. “We worked very closely with industry on that.” Apart from legal challenges, Kenney has other key parts to his plan to deal with an antagonistic federal government. “There is a wide spectrum of ideas to get Ottawa’s attention and to demonstrate our willingness, if pushed to the wall, to stand up and exercise our full constitutional autonomy,” he says. Two options are the creation of an Alberta pension plan (which, he says, would save taxpayers $3 billion per year) and an Alberta provincial police force to replace the RCMP. He also wants to give Albertans a greater voice, and tabled the Citizens’ Initiative Act in the spring session, which gives citizens the right to propose legislation on an issue of their choice, and have it voted on in a referendum. He also plans to build upon alliances with other provinces in order to gain more victories like that won in November at the Council of the Federation. “We got all 13 premiers to sign onto our request for a retroactive lifting of the cap on fiscal stabilization,” he says. “The feds had capped our payments at $500 million when we should have been getting roughly $2.6 billion. We calculate there’s about $2.5 billion outstanding to Alberta. That’s our ask from Ottawa, plus to lift the cap prospectively.” If the federal government fails to pay, Kenney is prepared to hold a referendum on equalization in October 2021. “We would propose a constitutional amendment,” he explains. “To delete the principle of equalization from the Canadian Constitution. Albertans are not against equalization, but we
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THE PREMIER’S PLAN – ONE YEAR IN // COVER
need to send a message that if Ottawa and some provinces will not allow us to fully develop our resources and get them to global markets through pipelines, we cannot be expected to pay all the freight in the federation.” Pipelines remain at the forefront of the issues and oil pipelines, including TMX, are essential. Kenney is optimistic that TMX will be completed, noting that pipe is now being laid. “There’s strong public support for the project across Canada and in B.C., and a growing number of First Nations on side. I believe that there will be indigenous co-ownership at some point, which will be a game-changer.” He’s also hopeful Keystone XL and Enbridge Line 3 will be completed, and expects the latter to come online by the end of the year, adding 380,000 barrels of egress.
industry’s environmental, social and governance metrics, and LNG as a way to unite the country and generate prosperity.
“But even in these challenging times and with the application of curtailment production caps on Alberta crude, we are producing and exploiting more oil than we ever have in our history, partly because of pipeline optimization,” Kenney points out. “We have seen a quadrupling of rail shipments in 2019 from roughly 100,000 to 400,000 barrels per day. Between pipeline optimization and additional rail shipments, I think we have a clear path forward until we complete TMX and/or Keystone XL.”
Not in favour of “Wexit” or any form of Alberta separation, Kenney nevertheless understands the frustration and doesn’t dismiss it. “I told the prime minister: ‘You’ve got the second-largest economy in Canada’s modern history where 80 per cent of the population says they sympathize with the separatist sentiment.’ This is real. But my patriotism is unconditional, and if the people of Alberta ultimately want to secede from the federation, they’ll have to find a different premier in a different party to lead them through that.
The public relations battle is being fought by the CEC, which, despite some early gaffes, Kenney believes is producing good content. “We need to be consistent about these efforts because we’ve been victims of a massively-funded campaign to landlock Alberta energy, which has been effective in the courts, politics and increasingly with investors,” he says.
“Having said that, it’s clear the current arrangement is not working for Alberta. We are expected to pay the majority of the bills but not allowed to develop the wealth to cover those bills. So, that’s why we’re lining up all of these points of leverage – the prospective provincial pension plan, provincial police force, equalization referendum and a number of other tools. Our government will have to calibrate when we play those cards and how to maximize our leverage with Ottawa, while at the same time reinforcing alliances.”
The CEC will respond in real time to the lies told about Alberta energy and tell the positive story. “Our shrinking carbon footprint. The cutting-edge new technologies. The progress on carbon capture, utilization and storage. The huge investments in gas cogeneration and the replacement of steam with solvents in the oilsands. The fact that we are now below the benchmark for carbon intensity for energy in North America. These are the stories we need to tell to the general public and investors in Canada, Europe and elsewhere.” It will soon launch significant advertising campaigns to promote TMX in B.C., energy literacy across Canada, the
All in all, Kenney is confident in his government’s plan, urging Albertans not to give up. “I know it’s been a tough ride for five years, but I really believe 2020 is the beginning of the turnaround,” he says earnestly. “We are projected to lead the country in economic growth. We have the youngest population in North America and the best educated in Canada. We have a diverse society and population growth. Alberta is a value buy right now. By the end of 2020, I believe we’ll get our mojo back.”
ABOVE: PREMIER JASON KENNEY MEETS WITH WORKERS AT TOTAL ENERGY SERVICES AS HE ANNOUNCES THE FIRST INITIATIVE FROM ALBERTA’S BLUEPRINT FOR JOBS (MAR. 2, 2020)
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JA Southern Alberta Celebrating 60 Years 1960-2020
Work Readiness
Entrepreneurship
Financial Literacy 41
MESSAGE FROM THE PRESIDENT AND CEO
O
n behalf of the staff, Board of Directors and the hundreds of thousands of students JA has reached in the last 6 decades, we want to thank our many donors and volunteers for continuing to help mentor and develop our young people. You help to ensure that JA Southern Alberta remains part of the solution to bridging the talent gap by inspiring a productive and talented future workforce. It is difficult finding words to express gratitude for changing lives. While many folks would find it hard to understand how teaching money management and business skills can change lives, we know it does. All of the students that participated in a JA program in the last 60 years remember their JA experience as a unique opportunity that enhanced their understanding of money, helped them navigate through career choices and sparked their entrepreneurial spirit. This knowledge has impacted their future and added value to their lives, our communities and our economy. Our important work cannot be done without the generous support of individuals and partners from the community. To our donors, thank you for providing funding to our organization so that our students, teachers, parents and schools can have free access to our life-altering curriculum. To our volunteers, you are critical to our success; your time, skill and personal stories about money and work add value to our curriculum and provide that ‘special impact’ that engages students and creates memorable moments.
JA Southern Alberta Celebrating 60 Years 1960-2020
Your gifts of time and money are valuable to us and we are most grateful. We humbly request your continued support as we deal with an inordinate waitlist. Please accept these two simple words – THANK YOU – but know that they come filled with heartfelt gratitude for your support. We look forward to working with you for many more years and decades to come! Sincerely yours, Melissa From
JA Southern Alberta • Celebrating 60 Years • 2
Q: What year(s) did you participate in Junior Achievement? A: 1960 to 1965
BRIAN SIDORSKY
Founder and CEO at Lansdowne Equity Ventures Ltd.
Q: What was the product or service that you sold? A: Over the five years of company program the products were varied. Our products included aluminum cookie sheets. Ironing cord clips, which held the ironing cord out of the way. Planters made from cedar and shaped as red river carts. Q: If you were to join company program today, what product would you make and sell over 20 weeks with your high school friends? A: Given twenty weeks I would probably develop an internet marketing company that would direct ship our custom designed products directly from the manufacturer to our customers door. The business skills necessary today have evolved dramatically in the past sixty years. Word of mouth advertising has become the standard of social media. The basic necessary skills are still pretty much the same, only they have evolved to a much higher degree. The saying, “nothing happens until a sale is made,” is more true today except that a Degree in psychology is almost necessary to understand the selling techniques employed. 3D printing also has opened up an unlimited amount of possibilities. The creation of a new product goods or services today can all be accomplished by a consortium of designers, manufacturers and marketers, all located in different parts of the world. Q: What was the biggest learning lesson that you took away from your time in the JA program?
JA Southern Alberta
A: There were several learning lessons, but the biggest lesson that I learned and have used all my life was how to run a business. Almost all businesses operate on the same fundamental principles. Creating and providing products goods and services to customer clients in the most efficient and economical way are the basis for most businesses. Junior Achievement provided the opportunity to learn those basic skills necessary to survive and thrive. Even the companies that lost money or failed, learned as much through their failures as they did through their success.
Celebrating 60 Years 1960-2020
Q: Would you recommend young people join Junior Achievement Company Program and if so, why? A: Yes, JA provides the opportunity to experience LEARNING BY DOING . Almost everyone on the planet will be involved with business in one way or another, so the more knowledge you possess on how the systems works, the easier and more successful your life will be.
Q: What advice would you give to your younger self? A: Learn how to learn. Read, read, read. Knowledge is the most important part of success. Learn and earn. Read at least one business book a week and learn how to sell. Seek out the best mentors for the path you have chosen and always ask for help from those that know more than you and are willing to share. Go the extra mile and read Think and Grow Rich by Napoleon Hill and Maximum Achievement by Brian Tracy.
1960 Junior Achievement of Calgary is established, beginning a rich tradition of innovative student companies. 1967 Junior Achievement of Canada is established to oversee Canadian JA Charters, becoming the first international JA member. JA Southern Alberta • Celebrating 60 Years • 3
Q: What year(s) did you participate in Junior Achievement? A: 1965-1967
SUSAN NELSON CEO at Open Gate Properties Inc.
Q: What was the product or service that you sold? A: During my first year with JA, we used core samples and dipped them in plastic to sell as coasters to corporations. These core samples were derived from oil and gas discovery projects. During my second and third year with JA, I worked at the JA Bank tracking all of the deposits from JA Company Program teams. Throughout the years I won multiple major awards and radio recognitions for my participation in JA. Q: If you were to join company program today, what product would you make and sell over 20 weeks with your high school friends? A: I would grow into new areas that JA hasn’t approached
Congratulations on 60 great years, JA Southern Alberta!
yet, something in a growing industry like robotics and the agro-food industry.
JA Southern Alberta
Q: What was the biggest learning lesson that you took away from your time in the JA program?
CWB is proud to partner in shaping our future leaders through education and mentorship.
A: The biggest lesson I learned was that collaboration is the key to team success.
Celebrating 60 Years Looking forward to more anniversaries 1960-2020 together.
Q: Would you recommend young people join Junior Achievement Company Program and if so, why? A: Yes I would, because it allows students the opportunity to meet others who might be outside of their peer group. It allows for diversity and strong inter-generational opportunities working with various business mentors within each group, from different industry specialities.
CWBANK.COM
Q: What advice would you give to your younger self? A: The importance of persevering and learning to work through difficult situations.
OBSESSED WITH YOUR SUCCESS ™
1971 Name changed to Junior Achievement of Southern Alberta. JA Southern Alberta • Celebrating 60 Years • 4
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BRUCE LEE
Director of Service Development at Everyone’s a Caregiver Learning Systems. Strategist, Speaker and Productivity Coach at Bruce Lee Productivity Resources.
Q: What year(s) did you participate in Junior Achievement? A: 1967-1969
Q: What was the biggest learning lesson that you took away from your time in the JA program? A: To step up and take as big of a risk as you can. Be a leader and support and encourage others to be the best that they can. Step over limiting beliefs, and when someone believes in you, to live up to that expectation.
JA Southern Alberta
Q: What was the product or service that you sold?
Celebrating 60 Years 1960-2020
A: During my first year, my team created a combination of both bottles of candy and bottles of bath salts. In the following two years I represented JA as President of the Achiever’s Association.
Q: If you were to join company program today, what product would you make and sell over 20 weeks with your high school friends? A: I did come up with a number of ideas from special customized aprons for kitchen work, to self-sticking platforms for car dashboards that keep items secure from moving, to unique luggage tags with GPS, but I would have to check with the team as to their ideas too.
Q: Would you recommend young people join Junior Achievement Company Program and if so, why? A: Yes. JA gives you insight into the real real world and allows you to build connections and learn about business. Business is about who you know and how to get there faster and JA gives you the opportunity to fast track this and open doors. Q: What advice would you give to your younger self? A: To join earlier in my high school career, rather than at the end. I would also tell myself to really work on the development of the product.
1980 JA launches business programs for elementary school students. 1989 JA launches the Economics for Staying in School program for junior high students. JA Southern Alberta • Celebrating 60 Years • 6
CONGRATULATIONS TO JUNIOR ACHIEVEMENT FOR 60 YEARS OF INSPIRING TODAY’S LEADERS.
EXCELLENCE Going far beyond the call of duty. Doing more than others expect. This is what excellence is all about. It comes from striving, maintaining the highest standards, looking a er the smallest detail and going the extra mile. Excellence means caring. It means making a special effo to do more. – R.D. Southern, Founder, ATCO and one of the business leaders who brought JA to Calgary
Ron Southern closing a deal, 1951, California. Age: 21.
PROUD TO SUPPORT JUNIOR ACHIEVEMENT SOUTHERN ALBERTA Congratulations on 60 years of investing in the future of Alberta! At Shane Homes we believe in building a legacy of giving and making a difference by supporting the communities in which we live, build, work and raise our families.
THE BETTER WAY TO BUILD.
info@shanehomes.com shanehomes.com #YourShaneHome
JA Southern Alberta • Celebrating 60 Years • 7
MANJIT MINHAS
Q: What year(s) did you participate in Junior Achievement? A: In Grade 10 and 11 – 1996 and 1997
CEO at Minhas Breweries, Dragon on CBC’s Dragon’s Den
Q: What was the product or service that you sold? A: Hand Rolled Beeswax Candles Q: If you were to join company program today, what product would you make and sell over 20 weeks with your high school friends? A: Something baby related Q: What was the biggest learning lesson that you took away from your time in the JA program? A: The value of teamwork and having a plan to execute upon, but also understanding not to be rigid with the plan as you have to listen to the market and your customers. Q: Would you recommend young people join Junior Achievement Company Program and if so, why? A: Absolutely! It gives you valuable insight into some of the realities of being an entrepreneur and all the work and decisions involved in a short amount of time. It also teaches you about finances, job descriptions, responsibilities, working with others and free enterprise. JA gives students an advantage by providing real world opportunities and skills not taught in schools.
JA Southern Alberta Celebrating 60 Years 1960-2020
Q: What advice would you give to your younger self? A: Ninety Nine percent of the things you worry about never happen. Dream more, worry less and enjoy every day. It goes fast.
1995 JA holds the first annual Economics of Staying in School week at Mount Royal College. 1996 Company Program is modified so it can be delivered during daytime classes for the first time. JA Southern Alberta • Celebrating 60 Years • 8
Q: What year(s) did you participate in Junior Achievement? A: 2000-2003 - all three years when I was in high school Q: What was the product or service that you sold? A: The most innovative product we created was a set of sushi candles, (candles shaped and packaged like sushi). What made this extra special was that it wasn’t our first idea. It emerged out of an earlier attempt at a product which was less creative and hadn’t been selling well. This was a first lesson in successfully iterating and pivoting a business strategy, and the sushi candles ended up generating strong profits despite having less time to produce and sell them. Q: If you were to join company program today, what product would you make and sell over 20 weeks with your high school friends? A: I’ll caveat this by saying that I’m pretty disconnected now from the high school market, and it would depend on the skills and strengths of my team and local demand. At the forefront of my mind, alongside commercial returns, would be environmental sustainability and innovation. I would create a business that explained the fourth Industrial Revolution to high school students and our parents, including what it meant in terms of our studies and future job prospects and help us prepare for what is to come. I might build a website or an app that held some basic information, plus offer a paid-for customized phone, text or in-person consulting service for those who wanted tailored advice.
BAILLIE AARON
Founder and CEO, Spark Inside, Founder of Venturing Out risk, and see if it might be a fit. Even if that doesn’t appeal, the interpersonal skills learned through the experience are invaluable: leadership, creativity, teamwork, ideation, resilience and drive, to name a few - all of which are becoming more important as we enter into the fourth Industrial Revolution and an unprecedented time of uncertainty. Q: What advice would you give to your younger self? A: I would give my younger self the same advice as I would give to my current self: to own my power. Marianne Williamson said, “Our deepest fear is that we are powerful beyond measure...There’s nothing enlightened about shrinking so that other people won’t feel insecure around you. We are all meant to shine, as children do.” To my younger, current and future self: Now is the time to be radiant, to grow to the limits of my potential, and not to concern myself with what others might think - because, as Dr Seuss said, “Those that mind don’t matter, and those that matter, don’t mind.”
Q: What was the biggest learning lesson that you took away from your time in the JA program? A: There were so many! I think the biggest takeaway for me was the confidence in my leadership abilities. After holding the role of VP of Human Resources for one year, and then President for two years, I knew that I enjoyed leading teams and that I had a gift for it. It felt natural to take on leadership roles in the future including CEO. I was also exposed to vulnerabilities that would continue to challenge me over the years, mainly involving management and communication.
JA Southern Alberta Celebrating 60 Years 1960-2020
Q: Would you recommend young people join Junior Achievement Company Program and if so, why? A: A resounding yes! While the entrepreneurial life isn’t for everyone, JA’s Company Program enables young people to test it out in a safe way, without any financial
2000 JA Titan, an online business simulation for high school students is launched. 2001 JASA pilots the first online version of the Investment Strategies Program, an online stock market sumulation for junior high students. 2004 The Frist Annual Calgary Business Hall of Fame Awards Gala and Induction Ceremony hosted by Ron MacLean. 2009 JASA Company Program student team, Smile, wins the first ever JA North American Company of the Year competition. JA Southern Alberta • Celebrating 60 Years • 9
Q: What year(s) did you participate in Junior Achievement? A: I have participated in the JA Company Program for the last three years, starting in the 2017 school year.
SAHIL KALE
Current High School Student
Q: What was the product or service that you sold? A: In Unwind, I sold foot hammocks! They were designed to stylishly fit under a desk and allow you to keep your feet up at work in a fashionable way; a stark contrast with my second company, Allure, which sold organic lip balm to help with our dry winters. As of now, Reusabag sells foldable bags that have the ability to velcro, meaning they fit snugly in pockets while having all of the space a conventional bag would offer. Q: If you were to join company program today, what product would you make and sell over 20 weeks with your high school friends? A: Although I’m currently in the company program, if I were given a fresh start, I would try to make electrically-heated gloves. Calgary is known for going from -40ºC to +5ºC in a matter of hours, and having something to help with the extreme cold would be a massive hit in the market. Q: What was the biggest learning lesson that you took away from your time in the JA program? A: The biggest lesson I learned was the power of compromise. Regardless of the setting, every individual offers a unique perspective for every problem and a solution. Knowing how to strike a balance and come out with a solution that all parties agree with is a powerful skill, regardless of what is being dealt with. One of the best pieces of advice I received was that “compromise is never a flaw; it is simply a tool”. Knowing this, I approached every problem with this mentality and allowed the team to make decisions that everyone could get behind.
JA Southern Alberta
Q: Would you recommend young people join Junior Achievement Company Program and if so, why? A: Absolutely! JA is an innovative program that allows you to experiment with solutions that apply in the corporate world. I often like to describe it as a program where you make mistakes so that you can fix them. While it sounds odd, I’d much rather make those mistakes and lose a few dollars, compared to millions on a large scale operation. You get to make friends, learn about business, and walk away with marketable skills, win-win-win!
Celebrating 60 Years 1960-2020
Q: What advice would you give to your younger self? A: I would always encourage my younger self and other young individuals to go out and try something new. If it weren’t for a very persuasive friend of mine, I wouldn’t have joined the company program and reaped the massive amount of benefits that were offered. There will undoubtedly be an element of challenge involved, but the programs offered by JA ultimately result in having learned a new skill that can be applied in many other places in life.
2010 JASA expanded program reach to nine rural regions. 2014 JASA introduces Entrepreneurial Artist (EA) Program which provides Calgary’s Fine Arts students with business and entrepreneurship skills they will need to succeed in an arts career. 2014 JASA launches Indigenous Programming to Treaty 7 Schools. 2016 JASA introduces Entrepreneurial Trades (ET). The program provides Calgary’s Trades students with business and entrepreneurship skills they will need to succeed in a Trades career. 2019 JASA hosts first National Company of the Year Success Summit. 2019 JASA hosts first JA Day with Caucus. JA Southern Alberta • Celebrating 60 Years • 10
Become a JA Supporter: Invest: Donate Today Involve: Volunteer to Deliver a JA Program Inspire: Today’s Youth...Tomorrow’s Leaders Junior Achievement of Southern Alberta 870, 105 12 Ave SE Calgary, AB T2G 1A1 403-237-5252 www.jasab.ca
SENIOR LIVING // HEALTH CARE
SENIOR LIVING HOW TO FIND THE BEST RESIDENCE FOR AN AGING PARENT
BY DANYAEL HALPRIN
A
ging, the journey is different for each person. Some seniors are cycling around the reservoir yet craving social interaction while others are struggling to prepare meals and bathe themselves. Helping a parent move out of the home they’ve lived in for decades is a major life change but it need not be traumatic. Today there are more exceptional senior living opportunities than ever before. “It’s a buyer’s market for senior living, and seniors and their families are in the driver’s seat right now,” says Martha Rayner, sales consultant at Revera-McKenzie Towne Retirement Living. People are shopping around to make sure they’re getting the best value in support, services and amenities to enjoy the best lifestyle.
ABOVE: REVERA-MCKENZIE TOWNE RETIREMENT LIVING.
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While people plan financially for their retirement and beyond, with wills and personal directives, it’s also encouraged to prepare for the “what if I can’t stay at home?” scenario. Quite often a health crisis is the impetus for moving a parent into a senior residence, sending adult children scrambling to find the right one and adding high stress to an already emotional situation. “It’s also extremely upsetting for your parent to go into the hospital and then be told they can’t return home,” says Rayner. Get in front of this move before there’s an emergency; discuss your parent’s wishes and then pre-scan some senior residences.
Go On a Tour After you’ve selected three to four residences for consideration, schedule a tour of each. Do you get a good feeling when you walk into the building? Is the staff friendly? Look at the kinds of activities offered on their recreation schedule, ask what services are available (housekeeping, laundry), what kind of care is provided, can they meet specific dietary needs (celiac, low-sodium, diabetic), and ask the residents what the food is like. Be sure to inquire about programs that are important to your parent. For example, the private SL3 Trinity Lodge Retirement Residence aims to meet its residents’ religious expectations by offering daily chapel service, mass for Catholic residents and Shabbat services for Jewish residents. Trinity opened in 1975 and testament to its happy environment is the longevity of its staff, many of whom have remained for more than 20 years. In addition to its varied activity schedule, there is live entertainment, shopping trips and outings to Canmore and Okotoks, and visits by therapy dogs. Started in 1961, Revera Retirement Living owns and operates 500 properties – seniors apartments, independent living, assisted living, memory care and long-term care – across North America and the United Kingdom. In Calgary, it has six retirement residences, with a seventh currently being built in Scenic Acres, and three long-term care homes. Revera celebrates the ageless spirit of people, and its biggest social cause, Age is More, addresses ageism in society.
DEFINING THE LEVELS OF CARE
I
f you’re unsure of the level of care your parent requires request Alberta Health Services’ (AHS) Home Care to assess your parent at home. If your parent is in the hospital, AHS’ Transition Services conducts the assessment. The private system offers many different care and living options and controls the assessment and placement of residents. AHS exclusively manages the assessment and placement of seniors, based on their top three choices, to its publicly-funded care designations. SL1 Independent Living (mainly private): a.k.a. retirement living, where residents manage on their own without health-care staff. SL2 Supportive Living (mainly private): no health staff on site, but residents may receive care for personal hygiene or health-care needs, from either Home Care or a private agency. SL3 Designated Supported Living: 24-hour health staff on site. SL4 Supportive Living: 24-hour health staff on site handling more complex medical needs. SL4D: people living with dementia. Long-Term Care: (a.k.a. nursing homes) supports individuals with highly-complex and unpredictable health needs whose care cannot be safely provided in their own homes or in designated supportive living. AHS Adult Day Program: some residences offer recreational activities, health monitoring, social interaction and a meal during the day; it also serves to give respite to caregivers.
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SENIOR LIVING // HEALTH CARE
RESOURCES:
The Housing Directory for Seniors • an invaluable resource for researching senior accommodations. • published annually by the Kerby Centre, a notfor-profit organization that provides services, information and programming for older adults. • lists all the different types of housing in Calgary along with prices, amenities, care services, transportation options, neighbourhood features, etc. Its Reel Youth learning program pairs seniors with youths from across the country to create short films, 170 to date, about important social issues. In holding true to its belief that everyone should have the opportunity to live a life of purpose, 800 of Revera’s employees are older than 65, working in sales and marketing, housekeeping, culinary services and recreation. Says Rayner, “We focus on making it the residents’ place. We actively request what food they want us to be serving, what activities they’d like. Our chefs have also prepared meals from a resident’s personal recipe to give them that special moment. The reality is that we work in their home and not the other way around.” Invite your parent to visit your top two choices, more than two becomes overwhelming. In fact, good residences encourage seniors to come for a complimentary trial stay, from overnight to up to a few days. “By partaking in an exercise class, trying the food, talking to the people who live there and meeting the staff, it gives your parent an idea of what life could look like for them in that community,” says Val Bracey, Trinity’s marketing manager. Featuring stylish independent living, assisted living, enhanced care, palliative care and memory care, the Manor Village Life Centers are known for their exemplary programs for happy and fulfilling lifestyles. The Manor Villages in Calgary are reflecting the concept that senior living should not be institutional.
• available online, at the Kerby Centre, and at Co-op, Sobeys and Safeway newsstands.
Seniors Directory of Services • published by the Kerby Centre. • lists health and recreational community programs and services, contact information for government departments such as tax, pensions, health benefits, citizenship and immigration.
The Calgary Seniors’ Resource Society; Carya; the Kerby Centre • can assist in navigating the realm of senior living, plus other services.
Garth Mann developed the Manor Villages because his mother was aging, and she insisted that she wanted to live in a happy atmosphere that provided exceptional services for exercise, entertainment, activities and socialization. Today, there are eight Manor Village Life Centers in Calgary and additional locations in London, Ontario and Arizona. Part of daily living at the Manor Villages are the provisions for avoiding memory loss with aging, plus programs to avoid needless falls. Through the Academy of Aging, a non-profit Canadian society (focusing on the dynamics for healthy aging through the prevention of age-related chronic diseases), the
ABOVE: THE BALANCE TRACKING SYSTEM AT THE MANOR VILLAGE LIFE CENTERS.
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SENIOR LIVING // HEALTH CARE
residents of the Manor Villages are lowering their risk factors for falling. Kendra Kovacik RN is pleased to be the director for fall prevention for the residents at the Manor Villages.
WHO SAID SENIORS AREN’T GAMERS? BSF WAS THE FIRST IN CANADA TO
The Brenda Strafford Foundation (BSF) owns and operates four senior care communities (Bow View, Wentworth, Clifton and Tudor) in and around Calgary, offering a combination of private and publicly-funded levels of care accommodation as well as the adult day program at most of its manors. Its fifth seniors wellness community, Cambridge Manor, is currently being built in the University District for a June opening. This predominantly privately-funded manor will offer assisted living, enhanced care and memory care.
IMPLEMENT RENDEVER, A VIRTUAL
Established in 1975 as a charitable organization, BSF’s core business and operations focus on senior care and wellness. A significant portion of its charitable contributions fund research and innovation in seniors care at the University of Calgary through the Brenda Strafford Centre on Aging, the BSF Chair in Geriatric Medicine and the BSF Chair in Alzheimer Research.
GROUP SETTING, RESIDENTS PARTAKE
REALITY (VR) PROGRAM DESIGNED SPECIFICALLY TO PROVIDE MENTAL STIMULATION FOR SENIORS, PRIMARILY THOSE LIVING WITH DEMENTIA. LED BY A FACILITATOR IN A IN VR ADVENTURE ACTIVITIES SUCH AS SKYDIVING, FLYING A PLANE OR SWIMMING WITH DOLPHINS. ABOVE: A RESIDENT AT ONE OF THE BRENDA STRAFFORD FOUNDATION MANORS EXPERIENCES THE WONDER OF RENDEVER’S VIRTUAL REALITY.
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SENIOR LIVING // HEALTH CARE
IN CONJUNCTION WITH ALBERTA HEALTH SERVICES, ALBERTA SENIORS AND HOUSING AND ALBERTA INNOVATES, BSF LED THE DEMENTIA FRIENDLY COMMUNITIES PROJECT IN SEPTEMBER 2019. In conjunction with Alberta Health Services, Alberta Seniors and Housing and Alberta Innovates, BSF led the Dementia Friendly Communities project in September 2019. Part of this initiative included the development of a guide for businesses, civil society organizations and individuals to educate and provide strategies to support those living with dementia in the neighbourhoods in which BSF operates. Who said seniors aren’t gamers? BSF was the first in Canada to implement Rendever, a virtual reality (VR) program designed specifically to provide mental stimulation for seniors, primarily those living with dementia. Led by a facilitator in a group setting, residents partake in VR
adventure activities such as skydiving, flying a plane or swimming with dolphins. “It can be used to create new experiences, like travelling to places on their bucket list, and it can be used to encourage the reliving and reminiscing of past experiences,” says Julie Arnold, BSF manager of communications and marketing. “With VR, a resident was able to travel back to his homeland of Germany and walk down a street from his childhood.” The experience of being immersed in a familiar place or activity can be a calming therapy. With Wii bowling, maître d’ seating in elegant dining rooms, specialized health-care aids on site, art therapy … it really is a great time to be a senior in Calgary!
Opening
June
Cambridge Manor
2020
Leading Force in Research and Innovation The Brenda Strafford Foundation and Cambridge Manor aim to drive innovation through integrated research and education in a continuing care environment, in collaboration with the University of Calgary and other partners.
Introducing Cambridge Manor The Brenda Strafford Foundation’s newest seniors wellness community in University District, NW Calgary’s newest urban neighbourhood. Cambridge Manor | University District 403-536-8675 cambridge@theBSF.ca Visit us online at: cambridgemanor.ca | theBSF.ca
Cambridge Manor is home to: • A purpose-built, state-of-the-art neighbourhood dedicated to advancing research and innovation in seniors care and wellness • The University of Calgary’s Brenda Strafford Centre on Aging
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THE HAPPINESS FACTOR // RECREATION & INVESTMENT REAL ESTATE
The happiness factor BY TAMARA ISBISTER
T
he decision to purchase a seasonal home for personal use and enjoyment is often motivated by lifestyle benefits. While it may make little economic sense, justification comes from the joy the home brings. Those with summer homes often refer to the nostalgia of their youth (relaxing days at the lake) and those with flexible schedules may be looking for a warm escape from long Canadian winters.
SUMMER HOMES ARE PLACES WHERE
Summer homes are places where memories are made. Families associate them with good times and togetherness. Relationships are built with neighbours, often from other cities, who become friends to look forward to seeing year after year.
FROM OTHER CITIES, WHO BECOME
Calgarian Rod Maxwell says his fond memories of lake life prompted him to invest in a second home in West Kelowna. Initially his plan was to return to his family’s childhood destination, Christina Lake, British Columbia. “To do this day,” says Maxwell, “my best childhood memories are at the lake.”
MEMORIES ARE MADE. FAMILIES ASSOCIATE THEM WITH GOOD TIMES AND TOGETHERNESS. RELATIONSHIPS ARE BUILT WITH NEIGHBOURS, OFTEN FRIENDS TO LOOK FORWARD TO SEEING YEAR AFTER YEAR. In searching for their summer retreat, something less remote was practical for his wife and daughter. “I knew that to have an enduring summer-lake lifestyle I had to understand and consider my wife’s needs, and find a suitable option that we could both be happy with,” explains Maxwell.
ABOVE: WEST KELOWNA, B.C PHOTO SOURCE: SHAWN TALBOT PHOTOGRAPHY
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Looking for a great investment opportunity? We’ve done the math, now it’s your turn to get on the board.
One low, all inclusive monthly payment of only $1,116.00 (including all GST, condo fees and property taxes) vs the existing average rental rate in the area of $1350.00 means this particular property is not only a great value, but could potentially yield up to a 21% percent return on rental opportunities.* The established amenities in Auburn Rise, prime location with easy access to Seton Health Campus and Deerfoot Trail make this an ideal investment for both first time and experienced investors alike. **Approximate total based on 20% down, 5 years fixed, 2.69% interest rate amortized over 25 years. Condo price is based on the 2 bed + 1 bath Richler unit ($213,045.00). Condo fees are estimated at $220.00 per month and property tax is estimated at $115.00 per month. Rental rate is based on the average rental price of a comparable condo in Auburn Bay. Calculations taken on September 5, 2019. Pricing and promotions are subject to change without notice.
For more information call Judy-Lynn Lavelle: 403.768.4323, or judylynn.lavelle@logelhomes.com Visit our Sales Centre at 100 Auburn Meadows Common SE Hours: Mon - Thurs: 2 PM - 8 PM Weekdays + Holidays: Noon - 5 PM • Closed Fridays
AUBURNRISE.CA
THE HAPPINESS FACTOR // RECREATION & INVESTMENT REAL ESTATE
IN SOME CASES, HOFFMAN HAS HAD CLIENTS WHOSE RECREATIONAL PROPERTY VALUE HAS INCREASED CONSIDERABLY, BUT, SHE ADDS, THEY DON’T CHOOSE TO SELL. “THEY PUT MORE VALUE ON THEIR FAMILY LIFE AND THE MEMORIES THEY ARE CREATING. THAT GOES BACK TO THE CLOSENESS THEY FEEL WHEN THEY’RE ENJOYING THEM.” Their criteria included location, a community of people to provide social interaction (particularly if Maxwell was back in Calgary working), a variety of amenities close by, an airport and a low-maintenance property that could easily be left unoccupied for long periods of time. After eliminating other lake communities, the Maxwells found a 20-unit complex in West Kelowna, which has become their beloved second home in a tight-knit community of other summer residency neighbours. According to Maxwell, there are some challenges that come with seasonal usage. “The home is underutilized, improvement and maintenance issues come up, as do operating costs.” Owners may feel obligated to use it rather than travelling to new places. The Maxwell’s home is a strata so exterior maintenance isn’t an issue, but in a free-standing home, the care and upkeep can cut into leisure time. The Maxwells enjoy their home throughout the summer months, and occasionally during the “off season.” Their purchase was not motivated by investment potential. “I always felt lake-front property would hold its value given finite supply and increasing population/demand,” he says. “Having said that, investment potential never factored into the decision. The big factor was lifestyle, quality of life and summer recreation.” Jane Hoffman has no trouble singing the praises of the area. “You can’t ask for more: vineyards, restaurants, shopping,
an airport, water sports, winter skiing; it’s got such a menu.” Through her Kelowna-based company, Jane Hoffman Realty, she works with recreational buyers fitting two profiles: those with younger families, many looking for low-maintenance condos; and those looking for homes they will eventually make their full-time retirement residence. The value she places on recreational properties is based on personal experience – time spent as a child at her summer home on Mara Lake, B.C. “Parents are different people on vacation,” she says as she recalls her family’s time at dinner and on the boat where her father was ‘present.’ “I liked that feeling,” she says. “We were the focus, and I think the same thing holds true for people who buy properties here, and enjoy them in the summer. Those times stay in your mind. The busy days come and go, and you don’t remember anything about them, but the recreation days, when you are present, they’re imprinted on your mind, and that’s what matters.”
ABOVE: JANE HOFFMAN, OWNER JANE HOFFMAN REALTY.
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Diversification: Calgary’s New Normal
D
oing business in (and from) Calgary has always been unique. The innovation. The ingenuity. The entrepreneurial spirit. Managing through cycles. And dealing with challenges, like the business broadsides of the past three years. As Calgary deals with the new normal of doing business, it also embraces diversification. “The new normal in Calgary has led to creativity in business,” says Colin Reardon, CEO and president of TerraBurst, Western Canada’s trenchless sewer and water experts, and an EO Calgary member. “And a strong focus on our customers, building the right team for the job and placing emphasis on strategy – how to combat added external pressures and barriers to growth.” EO Calgary member Crosby Cook, president of CG Engineering – involved in every aspect of oil and gas exploration, production and operations – is motivated about the Calgary business situation. “We are in the trenches of the recovery phase and hopefully moving towards a new normal,” he says. “CG Engineering has been in business for 13 years and we have seen a few cycles of the oilpatch. This one is different. It continues to require a philosophical change in our approach.” According to Jeff Neufeld, EO Calgary member and president of Trimet Building Products, a leading manufacturer of metal construction products, there may be silver linings in the timing. “It gives us the time and forces us to be much more competent, stronger and self-reliant. I attended a business breakfast in 2015. The guest speaker, an oil company CEO, said ‘Don’t waste a good crisis!’ He was absolutely right. I’m still thankful for his blunt advice.” Calgary business leaders agree about the positivity but Reardon cautions, “We still face challenges in the current stage of
economic ambiguity. There is a lot of unsurfaced opportunity in Calgary. We’re placing importance on efficiency in day-to-day business, streamlining processes and automating where and what we can. Our focus is to capitalize on business through effective marketing, customer management and experience, and training our key employees.” Calgary business is embracing diversification while still acknowledging the energy sector as a dominant player. “The oil and gas industry is a foundation of this city and this province,” Cook emphasizes. “The industry itself is changing but it’s not going anywhere any time soon. The world needs hydrocarbons in order to improve the standard of living and Calgary is helping Canada and other countries produce cleaner and more efficient energy.” Neufeld is enthusiastic about business diversification and says it happens organically. “We all have to get better at doing it and looking for new and better ways to solve the customer’s problem. We must play to win again, not to lose.” For Reardon, diversification is inevitable. “As more companies enter the market, businesses are pressured to generate efficient and better ways of doing business to differentiate and create that competitive advantage needed to survive. Innovation is a predominant factor for successful diversification; continuous improvement of technology, process and new strategies to reduce costs, manage risk and drive production.” Diversification may be the Calgary new normal. “We have a dynamic, young city that is chock full of talent,” Cook says with enthusiasm. “There is huge opportunity in refining our legacy industries with a new way of business, combining new technology with the lessons learned over generations of business history to draft a plan going forward.”
Contributing Members:
Colin Reardon
Crosby Cook
Jeff Neufeld
CEO and president of TerraBurst
president of CG Engineering
president of Trimet Building Products
The international Entrepreneurs’ Organization (EO) is the respected, world-wide business networking group — with more than 10,000 members in 35 countries — where business leaders meet informally to brainstorm, compare notes, learn and share relevant discussions about business. EO has 122 chapters around the world, including the Calgary chapter which is the fifth largest and one of the most active EO chapters in the world.
www.eocalgary.com
|
For membership inquiries: membership@eocalgary.com
THE HAPPINESS FACTOR // RECREATION & INVESTMENT REAL ESTATE
WHILE HOUSE-HUNTING, HER PRIORITIES WERE GOOD LOCATION, A SMALL YARD AND A POOL. SHE SAYS HER PURCHASE WAS DEFINITELY MOTIVATED BY LIFESTYLE, RATHER THAN LONGTERM INVESTMENT POTENTIAL. “THE OLDER I GET,” KAPACH REMARKS, “THE COLDER I GET, AND I’VE SHOVELLED ENOUGH SNOW IN MY LIFE.”
In some cases, she has had clients whose recreational property value has increased considerably, but, she adds, they don’t choose to sell. “They put more value on their family life and the memories they are creating. That goes back to the closeness they feel when they’re enjoying them.” In 2005 (and for entirely different reasons), now part-time Calgary resident Elaine Kapach chose to purchase a second home in Scottsdale, Arizona. Kapach is semi-retired, and happily escapes the snow, spending just under six months in the desert. Drawn to Arizona in particular, she loved the scenery of blue skies, incredible sunsets and neverending acres of spacious land, dotted with cacti and natural landscape. “I fell in love with city,” she adds. “It never snows here and the only natural ‘disaster’ is sandstorms.” While house-hunting, her priorities were good location, a small yard and a pool. She says her purchase was definitely motivated by lifestyle, rather than long-term investment potential. “The older I get,” Kapach remarks, “the colder I get, and I’ve shovelled enough snow in my life.” As for the downsides of ownership, Kapach notes, “It’s not much different than owning a property in Calgary; you still pay for utilities, taxes, landscaping, insurance, etc. However, the lack of presence makes one dependent on either a company or individual to look after your property. Long-distance maintenance can sometimes be stressful.” When working with Canadian buyers shopping for a second home, Scottsdale real estate professional Danny Hicke, Caliber Realty Group, starts with location. “People unfamiliar with Phoenix don’t realize how big the city is,” he says. “The first question I ask is: do you have friends or relatives you want to be near?” If not, he encourages buyers to explore and see where they want to be.
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For ease and peace of mind, he recommends a lowmaintenance choice, such as a condominium. “Expenses include heat, pool maintenance, landscaping; a house can become expensive and more a hassle, compared to a condo (where all of that is looked after).” If a buyer intends on offsetting costs by offering the property as a vacation rental, he stresses the importance of avoiding properties where homeowner associations have rental restrictions. Unless a buyer is set on Scottsdale, Hicke says there are many (more affordable) communities in the Phoenix area worth a look. “Scottsdale may be where people think they want to be,” says Hicke, “but there are also great surrounding areas worth exploring.” According to Hicke, Phoenix is the perfect location for a second home. “It’s a very fast-forward city with great restaurants; you get everything from hiking to five major sporting teams. It’s a newer city with great freeways; as long as you are close to a major freeway, you can get around the city fairly quickly. There are also numerous options for day trips: beautiful Sedona is an hour-and-a-half drive, and popular California destinations – and even Mexico – are all easy driving distances. “The good thing about Phoenix is it’s one of the only cities in the world that you can build in any direction, so it’s always going to be affordable here, and whether you’re in Scottsdale or not, you are getting the same climate.” Whether it’s a summer or winter recreational property, owners lucky enough to have a second home tend to agree that you can’t put a price on happiness – which is what they’ve invested in.
LANDSTAR DEVELOPMENT BUILDING THE FUTURE by Rennay Craats
LANDSTAR • PAGE 1 63
I
t’s not typical to transition from submarine sandwiches to real estate development, but nothing about the Mylonas family is typical. Jim Mylonas started in the restaurant business in Calgary with a single “Mr. Sub” location in the 1970s, which he soon expanded to 13 throughout the city and assisted another 35 franchised stores across Western Canada as they started operations. As he grew the brand, he saw changes in the market and decided to diversify his business using some of the assets he’d acquired over the years. “As my dad saw the landscape become more competitive in the fast food segment, he identified other opportunities in the market, like real estate,” says George Mylonas, Jim’s son and current president and CEO of Landstar Development Corporation. “We leased some of our restaurant sites but some we had to buy and either build free-standing buildings or strip shopping centres, and we’d put Mr. Sub as the anchor tenant. We started selling off some of our restaurant holdings and retained the real estate, while also buying other parcels of land in and around Calgary.” In 1995, the Mylonas family expanded formally into real estate development by establishing Landstar Development Corporation, which quickly became a highly-respected land development and asset management company with an impressive portfolio of residential, retail and mixed-use properties. Twenty-five years forward, Landstar has proven itself a leader in the business through its quality projects in Alberta, British Columbia and Saskatchewan.
George Mylonas, president and CEO
Jim Mylonas established a solid reputation in business and passed the values that earned that reputation to his son George, who learned the ways of business and the importance of character working at his father’s side from a young age.
The result was West Springs Farm, a beautiful community of 365 single-family and multi-family homes on the west side of Calgary. Mylonas partnered with some Qualico builders as well as Sabal Homes to build this unique development, and the success of the venture put Landstar Development on the industry radar.
“I trailed around wherever my dad was – on a construction site or in the restaurant – and it gave me an opportunity to ask a bunch of questions and to be exposed to things that a lot of 12-year-olds wouldn’t dream of,” George Mylonas says about his introduction to the business world. “It was natural for me, after graduating university, to come on full time and start taking over from my father a lot of the day-to-day operations of the family real estate operations.”
Landstar was soon tapped to participate in the final phase of the luxury country residential community – Elbow Valley West. The company partnered with Peters Dewald Land Company to develop 123 picturesque acres of the Elbow Valley. It was a raving success, and both Landstar and Peters Dewald Land Company were lauded for their innovative approach to the project.
PROJECTS PAST AND FUTURE
Armed with a degree in economics from the University of Calgary and the experience earned shadowing his father since elementary school, George Mylonas stepped into the fold and helped shape the future of the company. Landstar’s real estate portfolio included land on the outskirts of Calgary in East Springbank, and at the time Jim was deciding if he should sell the land or find an experienced partner to develop it. George presented a third option: use the land to springboard into a development company of their own. Jim chose option three and handed George the responsibility of developing the 52-acre parcel into a residential subdivision.
LANDSTAR • PAGE 2
“We allowed consumers to buy their own residential lots directly from the developer and bring in their own builder. We put in place the subdivision plan outlining the sizing and locations of the lots and the architectural controls. It turned out to be a very successful sales approach,” George Mylonas says. The accomplishments of these initial projects led to others like “The Portico,” a 55-unit condo project in Bridgeland overlooking the former General Hospital site, and a return to West Springs for “The Village at West Springs.” With a mix of styles, this distinctive town-home community featured 92 stacked and row town-home units amid striking landscaping and natural areas.
Rendering for conceptual use only and may be subject to change.
Landstar expanded to British Columbia with “The Views of Forbidden Plateau,” a spectacular 120 acres in the Comox Valley featuring home styles ranging from craftsman to French country to mountain vernacular, offering residents a feeling of calm retreat in a natural wonderland. Landstar is currently working on several projects both within the city of Calgary and outside its Calgary core. It is developing an 18-acre site on the shores of Lake Okanagan in West Kelowna which will feature multi-family town-home
and condo units with stunning 180-degree views of the lake, a 241-slip marina and vineyard. They are working with the local community and municipality to implement low-impact, environmentally-friendly buildings, with minimal disturbance to the neighbouring properties and residents. Through partnerships with other builders, Landstar is also developing two four-plex units in South Canmore as well as 15 town homes at Three Sisters in Canmore, all developments that are a testament to Landstar’s ability to work creatively and effectively with like-minded partners.
E X P E R I E N C E D.
CONGRATULATIONS Landstar Development Corporation
We are proud to be a part of your success.
WE ARE YOUR EXPERIENCED DEVELOPMENT TEAM Tel: 587-350-5172 www.quantumplace.ca LANDSTAR • PAGE 4
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Congratulations to Landstar Development Corporation and the Mylonas Family on over 20 years in business and commitment to the Calgary Community.
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Rendering for conceptual use only and may be subject to change.
Congratulations Landstar on over 20 years in business!
Closer to home, the company has some incredible projects in the works including a mixed-use, high-amenity 179-suite market rental complex across from SAIT that Landstar plans to build, own and operate. Presently, the team has entitlements on a property at Crowfoot Crossing that could potentially support a premium mixed-use seniors’ assisted living facility, and is currently pursuing the entitlement for a land parcel in Inglewood, slotted for a highquality mixed-use residential development.
DOING THINGS THE LANDSTAR WAY
Shrewd real estate decisions in the early days paved the way for Landstar’s growth and success, but the team never lost sight of what got them there and what will carry them forward. For the small but dedicated team of six, it’s about more than just profit margins and buildings; it’s about contributing something meaningful, something unique, that everyone can be proud of.
Ronald S. Girvitz and Aimee E. Louie 1601, 333 11th Ave SW Calgary, AB T2R 1L9 Ph: 403-290-1601 | Fx: 403-290-0828 www.wilcraft.com LANDSTAR • PAGE 6
“We’re not interested in developing ‘run-of-the-mill’ buildings,” says Mylonas. “We’re trying to find economically-balanced, environmentally-sustainable solutions that provide a higherperformance building that eventually yields lower operating costs over the life of the building.” Whether the company is keeping the building or selling it, Landstar maintains the same high standards. It also watches and listens carefully in order to make the best decisions for the company’s direction, which has been key over the years.
Robert Moskovitz, executive vice president, development and operations
J.D. Lewis, vice president of finance
Landstar began in real estate with greenfield sites, but after detecting a municipal shift away from suburban development to more densified urban ones, it has shifted its attention into brownfield mixed-use holdings instead. Also, when the change in mortgage lending rules came down, Landstar identified opportunities toward more mixed-use rental properties over ownership models. The team at Landstar adapts to economic and market changes and takes a calculated approach to growth that takes into account government regulations, local economic factors and most importantly consumer tastes and needs – and charts its path accordingly. That path has led to impressive growth over the years, but Landstar takes as much pride in how it does business as in what it produces. Growth is the goal but only if it is achieved without sacrificing the foundational integrity that Jim Mylonas instilled from the start. “We’re not in a unique product proposition, but what we are especially proud of is that we hold on to integrity in how we do business, how we choose our real estate opportunities, how
we choose our partners and investors, and how we uphold the physical integrity of the product that we bring to market,” says Robert Moskovitz, executive vice president, development and operations for Landstar. It is important for Landstar to partner with other entities that share similar values and conduct business in the same way. Landstar has a stable of incredible industry partners the team can work with depending on the parameters and special requirements of each of its projects. Working collaboratively with quality partners and stakeholders allows Landstar to effectively develop individual projects and build a strong foundation for how it chooses to do business in the future. “We know who we are, and what we’re good at,” says J.D. Lewis, vice president of finance. “By looking at these great opportunities through the smaller-scale building lens, we ask: what are we good at? We can help with sourcing land opportunities, secure financing, do pro formas, underwriting, we can bring capital and covenant. I think emphasis on finding those right partners and coming together is what differentiates us.”
IBI Group is a proud partner with Landstar Development Corporation defining the cities of tomorrow
FORUM 17
MULTIUSE PROJECTS
LANDSTAR • PAGE 7
Photo by Riverwood Photography.
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Congratulations to Landstar Development on over 20 successful years in business and for all of the effort you’ve put into our community and city. We are proud to have worked with your team and will always be in support of your future success.
Congratulations to
Ellen Zhang, JD Lewis, Olga Zaporoshchenko and Shelleyanne Hall.
INTO THE FUTURE
The company was built on collaboration, and its talented team is excited to showcase what it can do through the design and performance of Landstar’s buildings. It currently has more than one million square feet of future developable space and is dedicated to producing high-quality design and innovative products. Landstar spends a lot of time listening when first initiating a potential development to ensure all needs are being met in the design process and identifying community needs. The company and the Mylonas family support a variety of causes, including the Boys & Girls Club, Kids Cancer Care and the Kidney Foundation’s Kidney March, both with financial contributions and active participation. “We’re not just in the building business. We’re in the people business. If you don’t actually have an appreciation for the consumer, and to what’s really important to them, you’re really not listening,” says George Mylonas. Landstar’s tag line, says Moskovitz, is “Built to Experience.” It refers to the collective individual experiences that team members bring to the team, the experience that all stakeholders have during the process of development and construction, and ultimately the quality experience that Landstar tenants, whether residential or commercial, have with their interaction with the company, its staff and its physical offerings. Landstar Development is truly ‘Built to Experience’ and built to last.
for over 20 years of success!
corey@sticksstoneshomes.com www.sticksstoneshomes.com
LANDSTAR • PAGE 8
#301 - 1026 16 Ave NW Calgary, AB T2M 0K6 Phone: (403) 233-0608 www.landstarcommunities.com
The Calgary Chamber is the voice of the business community. We double down on commerce and work with businesses to create catalysts for growth.
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // APRIL 2020
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s we enter the second quarter of 2020 with increased uncertainty in global markets, the Calgary Chamber – the voice of Calgary’s business community and the podium of record – remains ever focused on working with our political leaders to create the environment our business and our families need to grow and thrive. Today we face one of the most vital and complex challenges to business and community growth: reconciling the urgent need to solve climate change “AND” developing our natural resources. Climate change is the issue of our time and underpins nearly all major challenges we are facing as businesses, and as society. From food security to public safety to industrial supply chains and beyond, climate change is a business challenge, and also an opportunity. That is why we recently made a clear statement to all our political leaders: we need real, decisive action on climate change with tangible outcomes and conviction. This is especially urgent when our national economy depends so strongly on natural resource development. We will continue to advocate for the “AND” perspective to prevail and for progress on the creation of a national vision for the future of our natural resources. At the federal level, we will also advocate for enhanced market access and trade, a globally competitive tax system, closing the talent and skills gap, and planning for our fiscal future. We look forward to working with the federal government to make progress in these areas, particularly in light of the federal budget. At the municipal level, we remain focused on the need for long-term structural change to our property tax system, and encourage our municipal and provincial governments to come together and chart a clear path forward. We also need to see a focus on increasing efficiencies and reducing costs at city hall, in order to provide long-term sustainability for businesses and residents alike. At the provincial level, the Calgary Chamber hosted Travis Toews, Alberta’s minister of finance, for a conversation following the tabling of Alberta’s 2020 budget. As the podium of record for Calgary’s business community, the Chamber event was an opportunity for a discussion on the government’s fiscal plan for the remainder of this year. From the Chamber’s perspective, Budget 2020 provides directional stability for the business community and a path towards fiscal balance in public funds. Going forward, we will continue to encourage further exploration of Alberta’s competitive position in the innovation space. The Calgary Chamber’s purpose is to nourish, power and inspire business so that they can, in turn, nourish, power and inspire the community. To this end, we had several incredible moments this past month to do just that. We partnered with Canada’s Sports Hall of Fame and Sport Calgary for the first of a three-part event series on what it takes to succeed at the highest level, from the playing field to the boardroom. We celebrated outstanding female business leaders at the Calgary Influential Women in Business Awards. We hosted the CEO of CPP Investments for a conversation on their global strategy and held our second 403 of the year, with a focus on brand building. Coming up, we are thrilled to be hosting our summit on the Knowledge Economy. It will be a full-day summit designed to inspire attendees on the future of learning and skills development, while discovering how to be rewarded for their contributions in the workplace and community as the skills that will be in demand shift. Keynote speakers include David Roberts, Singularity University; Ryan Gill, co-founder of Communo; and John Winsor, executive-in-residence at the Laboratory for Innovation Science, Harvard University. We hope you can join us on May 12, 2020. We’re also looking forward to connecting with Calgary Chamber members at our Annual General Meeting, which is being held on April 7, 2020. As Calgary’s podium of record, we are the place where the business community, decision-makers and thought leaders convene, learn and talk with one another to chart the path forward. We invite you to join us for these important conversations, either by connecting with us online or attending an upcoming event.
Sandip Lalli President & CEO Calgary Chamber
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Canada’s Agriculture Summit – Summation
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n January 16, 2020, the Calgary Chamber hosted Canada’s Agriculture Summit, welcoming over 550 attendees from across the country. It was a unique opportunity for industry leaders, policy-makers and the public to convene and engage in a conversation about how Canada can nourish the world “AND” have sustainable agricultural practices, while remaining competitive on the global stage. Canada’s Agriculture Summit was a natural extension of the Calgary Chamber’s “AND” conversation, which asserts that Canada can be a world leader in natural resource development “AND” climate change innovation. Building on our inaugural Natural Resources Summit in the fall of 2019, we set out to achieve three key goals with the Agriculture Summit: 1. Demonstrate the significance of agriculture and agri-foods to the Canadian economy. 2. Work towards alignment on advocacy and forming a unified vision on sustainable best practices within the industry. 3. Demonstrate how the agricultural industry is accounting for environmental, social and corporate governance to measure sustainable and ethical impact of investments. The summit delivered on these goals.
The Takeaway: Reaching full potential will require collaboration From Curt Vossen’s introductory keynote to Michael Hoffort’s closing remarks, the sentiment during the summit was clear: the agricultural industry needs to develop a unified voice on what is required to nourish the world “AND” foster sustainable development. Creating a united voice is imperative to the future of agriculture and agri-foods. For Jeff Vassart, president, Cargill Limited, rallying around a consistent voice would be the first step in building trust between industry and the public, which is critical to countering misinformation around the industry. In addition
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to a national shared voice, Chuck Magro advocated for a global standard on industry best practices to foster sustainable development. To this end, the agricultural industry could borrow from other Canadian industry approaches to sustainable practices. The Canadian mining industry, for example, has a holistic approach via the Towards Sustainable Mining initiative, which has been adopted by international mining associations and is setting the standard for global best practices in sustainable development. The Canadian forestry industry has adopted a similar scope to guide its best practices, with Forest Products Association of Canada leading the way in environmental stewardship, sustainable practices and innovative development. Moving forward, Canadian agriculture must be able to do what it does best – produce and export world-class products. A priority shared by the Calgary Chamber, panellists and keynote speakers was the need to improve our infrastructure and supply chain. Without appropriate port capacity or rail transport, our ability to access global markets is limited, and therefore has a negative impact on industry growth. In addition, digital infrastructure such as 5G connectivity will be required for new technologies to be applied effectively on the farm. For the Canadian agricultural
industry to fully maximize its potential, it must have the necessary digital infrastructure in rural communities to succeed in the 21st century. Further to this, trade deals such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA), and the Canada-United States-Mexico Agreement are positive actions. The Calgary Chamber has advocated for these agreements, noting that Canada should capitalize on the advantage of the agreements and consolidate our position in these important markets. We’ve engaged with key policy-makers and underlined the importance of market access as a key issue for Canadian business.
Furthermore, academia will be crucial in closing the talent and skills gap for the agricultural industry of the future, which will need high-skilled labour to address the changing market conditions. What civil society can do Consumers are a large driver behind sustainability and best practices. Consumer choice is a powerful factor behind the direction the industry chooses to take. Civil society can be an active and willing participant to engage in the “AND” conversation on Canada’s role in nourishing the world “AND” ensuring sustainable development.
Going forward, we’ll continue to strongly support the elimination of trade barriers, and the development of new international trade agreements, because Canada will need to extend partnerships beyond multilateral agreements to fully penetrate market access for our goods. This includes, for example, capitalizing on our first-mover advantage in markets such as Japan or advancing opportunities in South America and China.
The Rally Cry:
For the agricultural industry to continue to lead and grow, it will need the support of government to effectively create regulations that support a holistic approach to agricultural development, such that all participants in the agricultural value chain have the means to prosper.
We can nourish the world “AND” have sustainable agricultural practices.
The Path Forward:
We look forward to sharing Canada’s knowledge and technologies with the world to further assist in the fight against climate change and set best practices.
What business can do The business community can work to align on advocacy and develop a unified voice, in order to build trust between all stakeholders. It can also lead or participate in the development of a global standard for industry best practices.
Canada’s agriculture and agri-foods industry are poised for strong global leadership now and into the future. We have the human ingenuity, the technology and the best practices within our borders. Canada needs more Canada. Today, we can have energy development “AND” solve climate change.
We can be in business “AND” be socially accountable to the communities in which we operate. We look forward to cultivating partnerships that enable the sustainable growth and prosperity of the industry.
Building on the success of our Natural Resources Summit in October, and Canada’s Agriculture Summit, our efforts continue to create the framework and proposal for a vision for all our natural resources.
Governments at all levels must demonstrate the political will to actively promote policies in support of sustainable agricultural development. These include improving infrastructure, removing trade barriers and incentivizing the development and implementation of technology and best practices in environmental stewardship to combat climate change.
“As the podium of record for the business community, it is our privilege as the Calgary Chamber to convene business leaders, decision-makers and thought leaders to influence the path forward for agriculture and agri-foods,” says Sandip Lalli, president and CEO of the Calgary Chamber. “Together, we will continue to advance the conversation that Canada can lead in natural resource development ‘AND’ innovative practices to build a sustainable future.”
What academia can do
These are the key takeaways of Canada’s Agriculture Summit. To read the full story, visit calgarychamber.com/ag.
What government can do
From academia, the industry needs continued support in providing evidence-based science on industry practices.
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The Knowledge Economy
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full-day summit inspiring the future of learning and skills development, while discovering how to be rewarded for your contributions in the workplace and community. • Tuesday, May 12, 2020 • 7:30 am – 4:00 pm •TELUS Convention Centre •Calgary, Alberta The knowledge economy is where goods and services are based upon knowledge-intensive activities; soft skills such as critical learning, design thinking, intellectual capital and leadership. This is a fundamentally different approach to work and learning than what has existed in the past. The future of work is changing, along with the pathway to success. Increasingly employers are asking more of their teams, while society is demanding more from organizations. The skills that will be in demand are not adequately being taught in the classroom, and the current workforce is not upskilling at a rate to stay relevant and competitive. Currently some skills are acquired through practice and experience, often over long periods of time. New approaches to learning are needed if businesses want to achieve growth and contribute to a thriving community with intelligent technologies.
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A few large corporations are experimenting with lifelong learning methods, equipping employees with the tools they need to leverage soft skills and harness lifelong learning into the future. However, this is a small group and traditional education and learning systems are becoming ineffective, leaving graduates and the general public unprepared to close the skills gap. Workplaces are changing. Are you looking 10 years into the future and asking yourself: •How will I stay relevant 10 years from now? •How am I learning to analyze information and think critically? •What skills do I need to unleash my conscious capital? Join us as we explore what is needed today to ensure competitiveness and success in the future. We will discuss future approaches to leadership, leveraging soft skills as an asset, and how the future of work is human powered. Tickets are on sale and can be purchased online at calgarychamber.com/future.
COMPETITIVE AND CREATIVE LANDLORDS // COMMERCIAL REAL ESTATE
COMPETITIVE AND CREATIVE LANDLORDS Th e c o m m e r c i a l r e a l e s t a t e r e c ov e r y
BY JOHN HARDY
“N
ot quite” or “not yet” is the consensus regarding a recovery of Calgary’s commercial AA, A, B and C real estate.
According to Avison Young’s Q4 Office Market Report, 2019 was a “no growth” year for Calgary’s economy: the Conference Board of Canada revised its GDP growth figure for Calgary to negative 0.4 per cent and Statistics Canada reported the December 2019 Calgary unemployment rate as 7.1 per cent – the fifth highest for major Canadian cities. With the unique and individual Calgary commercial space sectors, it is, more than ever, misleading to generalize the stats or circumstances of one Calgary office market. Matt Rachiele, managing director of Colliers Calgary brokerage, points out the Calgary office market encompasses three individual sectors: the downtown, beltline and suburban areas. “Downtown is usually from 9th Avenue to the Bow River, bordered on the west by 14th Street and east by Edmonton Trail. The beltline is 10th Avenue to Elbow Drive, bordered by Crowchild on the west and Macleod Trail on the east. And the suburban market is everything outside of those two areas, usually described in quadrants: southeast, southwest, northwest and northeast.”
Throndson, principal and managing director at Avison Young in Calgary. “We’ve seen over 600,000 square feet of positive absorption in the last year. However, this is well below the strong absorption years where we would see two million square feet or more absorbed in a year prior to the downturn, starting in 2015.
“Downtown office vacancy has continued to trend downwards over the last couple of years,” says Todd
“The beltline, just to the south of downtown, continues to struggle and is still seeing consistent negative absorption. It
ABOVE: MATT RACHIELE, MANAGING DIRECTOR, COLLIERS CALGARY.
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is competing directly with the downtown market, which has more amenities and ability to offer deeper inducements. The suburbs have seen positive absorption over the last year, but at a slow pace. Given the current vacancy in the downtown market and the lack of growth seen as of this date, Calgary is still waiting for signs of starting a recovery.”
“THE DOWNTOWN MARKET SAT AT
Most Calgary commercial real estate professionals agree: although actual rates and vacancies are a tale of three separate markets, Calgary commercial stats are sometimes skewed by downtown numbers.
SIGNIFICANT POLARIZATION WITHIN
“The downtown market sat at a 26.32 per cent vacancy rate overall at the end of 2019,” Rachiele points out. “But there is significant polarization within that figure. AA and A class buildings are at 17.07 and 27.14 per cent and continue to tighten up due to a steady flight to quality by downtown tenants and the migration of others from the beltline and suburban areas. “Unsurprisingly, the beltline market has been negatively impacted by the migration of tenants into downtown and was at a 22.6 per cent vacancy overall, at the end of last year. Broken down by class, vacancy in A space was 25.32 per cent, B was 20.8 per cent and C was 15.55 per cent. We expect a flight to quality within the beltline itself to drive down the A and up the B and C rates this year and in 2021.” Although not stretching for silver linings, there is good news and Calgary’s most recent office market commercial real estate stats do reflect some glimmers of positivity. Calgary may have reached the bottom of this downturn. “While we haven’t seen consistent declines in the vacancy rate, the highest level of vacancy we saw for Calgary’s office market was 26.4 per cent in the second quarter of 2017,” Throndson notes. “Although the rate has improved by about two per cent, with the amount of vacancy still remaining we have a long way to go.” Greg Kwong, executive vice-president and regional managing director, Alberta, for CBRE, echoes some encouraging aspects of Calgary’s commercial real estate stats. “Judging only by the downtown core vacancy rate, the recovery has not set in. But we have bottomed out and it doesn’t seem to be getting worse. Two years ago, it was all bad news. Overall, a positive attitude and capital investment is slowly coming back. It may be a U-shaped, not a V-shaped, recovery.”
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A 26.32 PER CENT VACANCY RATE OVERALL AT THE END OF 2019,” RACHIELE POINTS OUT. “BUT THERE IS THAT FIGURE.” As Calgary’s office space market adjusts to the emerging new normal – and while oil and gas and the related vital services continue to dominate the pulse of Calgary business – the downtown, beltline and suburban commercial real estate market is reflecting subtle but significant business changes. The high vacancy rates are continuing to pressure landlords to stay competitive in terms of rental rates and inducements and improve their creativity by being flexible with lease terms and building amenities. “Competitive and creative approaches by landlords are furthering the flight to quality across the Calgary office market,” Throndson explains. “Tenancies in class B and C buildings are now able to consider space in better quality buildings due to lower rent and the increased availability of options. Suburban tenants are also able to consider inner-city and downtown locations with this being the lead generator for growth in our downtown market. Landlords and tenants are finding a market that offers both sides opportunities to make advantageous deals. “Attractive rental rates and inducements are now at levels where tenants can either move into better quality buildings at similar or even lower rates than they are currently paying, or look at early renewals that offer to blend and extend their rates on a reduced financial platform. Either option can result in keeping a tenant’s cost structure stabilized or seeing significant cost reduction, depending on the situation.” He underscores encouraging signs that large, multi-location businesses are opening locations in Calgary, which speaks to the long-term outlook of the Calgary office market. He cites examples like WeWork, Amazon and other technology companies that have looked at Calgary’s affordability and
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COMPETITIVE AND CREATIVE LANDLORDS // COMMERCIAL REAL ESTATE
WHILE OIL AND GAS REMAINS PRIMARILY FOCUSED IN THE DOWNTOWN MARKET, CALGARY’S GROWING TECH SECTOR ALSO SEEMS TO BE FINDING ITS OWN OFFICE SPACE NICHE. THE SUBURBAN OFFICE MARKET HAS BEEN BUOYED, IN PART, BY TECH. availability of space, while some have opened or expanded offices here including Absorb, MobSquad and Finger Food Advanced Technology Group. “We have heard Google and Apple have both been in the market looking at space,” he says with a smile. Various industries are staking claim to specific Calgary office market sectors. While oil and gas remains primarily focused in the downtown market, Calgary’s growing tech sector also seems to be finding its own office space niche. The suburban office market has been buoyed, in part, by tech. “The game is changing,” Throndson says. “Instead of a market dominated by a handful of exceptionally large tenants, Calgary has seen its tenant mix change as large tenancies have downsized. The majority of deals being done today are
Different by Design
under 10,000 square feet and that is changing how Calgary landlords manage their Calgary assets. Many are investing in capital programs to better cater to smaller tenants. It’s an indication the landlords see where the market is going.” Kwong adds that the Calgary office market is not nearly as gloomy as it was two years ago as it is gradually stabilizing and recovering. And while rates are low compared to five or six years ago, price is one of the results of the downturn and a reflection of the market adjusting to a significantly lower demand. “In the ’80s, the recession was worldwide,” he notes. “This one is unique to Alberta, and government policy has a lot to do with it. There really isn’t one solution. We need a federal government that supports Western Canada and a provincial government that makes decisions to get people working.”
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SOMETIMES BUSINESS IS PERSONAL // SUCCESSION PLANNING
SOMETIMES BUSINESS IS PERSONAL BY JOHN HARDY
B
usiness can be challenging, exciting and rewarding. It can also be, as many small business owners know, notoriously unpredictable. It is smart business to be prepared. Canadian business stats show that while 72 per cent of Canadian small business owners plan to sell or transfer their business in the next 10 years, only nine per cent have a formal succession plan, 41 per cent have an informal plan and 51 per cent have no plan at all. For most small business owners, a difficult and multifaceted decision is timing. “Our most recent succession report indicates that 31 per cent of business owners did not know when to start developing a succession plan,” says Corinne Pohlmann, senior vicepresident of national affairs with the Canadian Federation of Independent Business (CFIB). “The key indicators for the timing for exiting a business will look different for each individual business owner.
“OUR MOST RECENT SUCCESSION REPORT INDICATES THAT 31 PER CENT OF BUSINESS OWNERS DID NOT KNOW WHEN TO START DEVELOPING A SUCCESSION PLAN,” SAYS CORINNE
“For some it could be a new business opportunity or an ongoing lack of profitability; for others it could be a doctor’s recommendation to take time off or meeting a potential future successor.” She emphasizes the most common reason (81 per cent of Canadian business owners) is retirement. “While only nine per cent have a formalized succession plan, 62 per cent of owners say they rely on the sale of their business as a source of retirement income.”
they aren’t seeing an opportunity to buy in, they are not aware of a plan for succession and they are concerned about the future of the business, they will move on or be pursued by other employers. Strong talent can work anywhere.”
According to Lynne Fisher, national team leader of ExitSMARTTM at MNP Calgary, while the standard reason for a succession is the age of the owner, there are also some other factors – including the loss of key employees. “When
She also mentions a delicate factor that can come into play if the majority of the leadership team – including the owner – are north of 55. “Maybe the owner’s and the leadership team’s connections with customers and suppliers isn’t
POHLMANN.
ABOVE: CORINNE POHLMANN, SENIOR VICE-PRESIDENT OF NATIONAL AFFAIRS WITH THE CANADIAN FEDERATION OF INDEPENDENT BUSINESS.
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what it used to be, leaving the business vulnerable. Or the business is growing at a rate slower than industry rates and struggles to be competitive.” The perception surrounding succession planning (detailed and intense huddling with accountants, lawyers and tax strategists) is often a contradiction of the business cliché: “it’s not personal; it’s only business.” Many (spoken and unspoken) aspects of succession are entirely personal. “Some business owners define themselves by the business they have built and the teams they have led,” explains Jim Rea, family enterprise advisor with MNP Calgary. “The transition can lead to a loss of identity. Some owners have issues with a loss of control, often surprised by how quickly their authority is replaced by the successor’s authority. It can lead to feelings of unworthiness and even embarrassment, seeing their staff, who moments ago were devoted to their leadership, now take the direction from the ‘new team.’ “And it’s not uncommon for the founder to unintentionally meddle in the affairs of the business long after their authority has been replaced, sometimes causing rifts between management who are still loyal to the founder and those following the new leader.” Most succession planning experts agree that common speed bumps of the transition process are ultimately solvable, but having a plan is a critical must-have for today’s businesses. “Creating a formalized succession plan will help minimize the costs of time and money spent on the transfer of ownership to a successor, ensure the future financial stability and value of the business, and continue to provide stability to employees,” Pohlmann adds. “Most importantly, it will ease the transition process for all involved when the owner decides to leave the business.” Planning – and timing – is crucial. “Ideally, the succession process should begin at least five years before an owner plans to exit the business,” Rea cautions. “The ease of the transition will be directly related to the efforts put in during the years leading up to the transition. Has the governance structure been formalized? Are processes functioning efficiently so that the business operates effectively when the owner is
“SOME BUSINESS OWNERS DEFINE THEMSELVES BY THE BUSINESS THEY HAVE BUILT AND THE TEAMS THEY HAVE LED,” EXPLAINS JIM REA. “THE TRANSITION CAN LEAD TO A LOSS OF IDENTITY.” absent? Are the future leaders being trained and mentored in all aspects of business ownership and management? Has a family council been created to guide family decision-making and to deal with issues of the business family outside of the operations of the family business?” With some quirky exceptions, there are three basic ways to pass a company to the next generation: selling or transferring to family members; selling to employees; or selling to a third-party buyer. Each option has different considerations. “Selling to a family member is often desirable because there is more time to groom a successor making the transition smoother,” Pohlmann notes. “It also allows a successor more access to the past owner, can bring more stability for employees, and operational business tax reporting can stay on the same timeline.”
ABOVE: JIM REA, FAMILY ENTERPRISE ADVISOR WITH MNP CALGARY.
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However, it is also the transition that gets clouded in the personal. “Barriers to family succession can include difficulty choosing the best successor, the previous owner not letting go of the business decision-making, conflicting business visions of family members, or not being eligible for tax exemptions such as the lifetime capital gains tax exemption.” With all its potential danger zones, MNP’s Lynne Fisher suggests the many pros of family succession outweigh the cons of selling. “There is the huge matter of legacy, maintaining family ownership for future generations and devotion to employees – rewarding and caring for those who helped build the business. Besides, in today’s market, there aren’t as many buyers. And those who are around, are looking for a bargain. So, transitioning to family or employees is a better option to harvest value. A transition allows for more control over timelines for exit – an owner can exit gradually on their own terms.” Jim Rea agrees. “Selling to a third party is stressful and subjects the business and owners to intense scrutiny during the due-diligence process. Successors inside the business are more comfortable with the history of the business, having lived through it, and are usually more tolerant if certain processes are not in accordance with the high standards demanded of a consolidator or private equity firm.” He underscores some undocumented possible wrinkles of a family succession. “A concern, especially among parents who know the history of their children’s rivalries and resentments, is putting siblings in supervisor and subordinate roles. It can often lead to difficulties which impact the success of the business. “In many cases, successor family members have agreed to take on the leadership role on the condition that they will be able to implement changes that may have been stifled by their parents. In these cases, staying on as a mentor may lead to disagreements over strategic changes and increase family conflict.
“THERE IS THE HUGE MATTER OF LEGACY, MAINTAINING FAMILY OWNERSHIP FOR FUTURE GENERATIONS AND DEVOTION TO EMPLOYEES – REWARDING AND CARING FOR THOSE WHO HELPED BUILD THE BUSINESS,” SAYS LYNNE FISHER. “Statistically, successors in the family business are often well into their 40s or 50s and resent the fact that their career has been under the control of their parents, when most of their colleagues have been succeeding on their own for quite some time,” Rea adds. “A clean break may be needed to give them the feeling of control over their own destiny. The transfer of full control can also spark new passion for the business and allow them to make their mark and contribute to the family legacy.” ABOVE: LYNNE FISHER, NATIONAL TEAM LEADER OF EXITSMARTTM AT MNP CALGARY.
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GOLF YOUR WAY TO THE ROCKIES WITH TOTEM GOLF by Rennay Craats
T
he Thorogood family knows a thing or two about building, founding Totem Building Supplies in 1970. After Jim and son Ryan sold Totem in 2004, they brought younger son Dane into the fold and set out to build something completely different. The result was the Totem Group – a combination of golf courses, accommodations, real estate development and a charitable foundation – that applies the work ethic that made Totem Building Supplies a success. The centrepiece of this endeavour is the unique experience that allows guests to golf their way to the Rockies, with great packages featuring a hotel stay and rounds at Greywolf Golf Course and Sundre Golf Club. “Sundre and Greywolf are both awardwinning, prestigious courses in different ways. One is a tucked in, well-maintained treed country course and the other is the best mountain golf experience I’ve ever played,” says Dane Thorogood, general manager of Totem Golf. WWW.TOTEMGROUP.CA || 1
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JAW-DROPPING CLIFFHAN
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reywolf was named the number one public golf course in B.C. by SCOREGolf, and this par-72 course earns the honour with some world-renowned holes. The Cliffhanger, Greywolf’s #6, was partially replicated on a smaller scale at the RBC Canadian Open. People were invited to hit into a simulator to reach the fairway and putt out on the recreated green so they could experience this iconic hole for themselves.
Greywolf’s restaurant draws its name from #6. Cliffhanger Restaurant overlooks the 18th hole, offering as much of a feast for the eyes as the palate. New executive chef Galasa Aden revamped the menu during the recent relaunch, filling it with from-scratch Canadian contemporary cuisine ranging from burgers to gnocchi to steelhead trout. And with its location at the foot of the mountain, it services Panorama’s skiers in the winter and golfers in the summer. The resort and golf course have a symbiotic relationship as each contributes to the success of this destination area. With ongoing improvements to the already amazing golf and world-class skiing and resort, Panorama continues to attract visitors year-round. “Greywolf is the jewel in the crown of Panorama and its reputation has grown immensely because of the investments put into not only the golf product but the resort as a whole. It’s something we’re very proud of,” says Panorama Mountain Resort CEO and president Steve Paccagnan. With an incredible golf weekend in the Alberta foothills and B.C. mountains – and a luxury stay in between – Totem has truly built something special with this unique golf experience. 2 || WWW.TOTEMGROUP.CA
Executive chef Galasa Aden.
JEWEL OF THE VALLEY
NGER G
reywolf is the ideal destination course for a ladies’ weekend or a guys’ trip. Ranked the number one public course in British Columbia, this picturesque course brings an exceptional experience at an attractive price. And to ensure it delivers that high-value, enjoyable experience to every golfer, Greywolf added forward tee boxes on 12 holes to allow less-seasoned golfers to modify their play. Thorogood wants guests to be comfortable and have fun so they come back again and again. “We want people to enjoy the experience and have fun, and if their shirt’s not tucked in or their slacks aren’t pressed, I don’t care. Golf has changed,” he says. What hasn’t changed is the amazing round to be had at Greywolf Golf Course. It guarantees a superb golf game every time, with the Purcell Mountains as a stunning backdrop and beautifully designed holes that accentuate the natural beauty of the area. WWW.TOTEMGROUP.CA || 3
SMALL-TOWN COURSE DELIVERS BIG
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undre Golf Club, ranked number one for value in Alberta, is a fantastic par-72 course with mature trees and water features. It offers a scenic round of golf with views of the Red Deer River and the Rocky Mountains. “It is always in good condition and it’s playable for every golfer but at the same time it’s challenging. For the price, it’s an unbelievable course,” Thorogood says. By adding Mountain View Inn & Suites a stone’s throw from the course, it’s an easy getaway from Calgary and Edmonton and a perfect place to hold an event or corporate tournament. The Thorogoods make it easy to golf offering a 48-seater bus – for events with over 72 participants – that picks up from Calgary, Edmonton or points in between. Participants can also stay at Mountain View at a reasonable rate. The hotel is also a great stopping point for golfers who are warming up the clubs at Sundre Golf Club before heading to Greywolf Golf Course in Panorama, British Columbia.
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BRINGING BUSINESS TO THE FOREFRONT // GOLF
BRINGING BUSINESS TO THE FOREFRONT HOW THE GAME OF GOLF TRANSLATES OFF THE LINKS
BY JAMIE ZACHARY
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oogie’s Burgers co-owner Kipp Teghtmeyer has been golfing for most of his life. From the six-hole sand greens at Ghost Lake as a kid to the pro courses at Palm Springs as an adult, he’s long been a fixture on the links, logging more than 50 rounds any given year.
GOLF ALSO HAS PROVIDED TEGHTMEYER VALUABLE LESSONS THAT HE’S TAKEN OFF THE COURSE. HE POINTS TO PARALLELS BETWEEN
“Most of the time, it’s about getting away from everything. You focus on that silly ball. You don’t think about too much else going on. It’s a good solid four hours of meditation for me for the most part,” he says.
THE GAME OF GOLF AND BUSINESS
Yet golf also has provided Teghtmeyer valuable lessons that he’s taken off the course. He points to parallels between the game of golf and business that he’s relied on when deciding to recently expand the iconic restaurant from its home on Edmonton Trail to a second location in Marda Loop.
RESTAURANT FROM ITS HOME ON
“In golf, you need to pay attention to all parts of your game to be successful. You can drive the ball all you want. You still need to know how to putt,” he says. “What I mean by that is you can market your business really well, but you also need to have your operations under control. If you can drive but can’t chip, you’re done. If you have a good product but can’t market it, you have a problem. You need to have a well-rounded game to be successful both on and off the course. “We at Boogie’s spent a lot of years doing everything really well and not really marketing to our full potential. Once we started doing that, we found the ability to open a second restaurant and possibly a third quite a lot easier.” Golf has been referred to as a game of life – an infallible test that depends less on the strength of body and more on the
THAT HE’S RELIED ON WHEN DECIDING TO RECENTLY EXPAND THE ICONIC EDMONTON TRAIL TO A SECOND LOCATION IN MARDA LOOP. strength of mind and character. Perhaps not surprisingly then, golf has also become synonymous with business where a person’s chip shot might tell you more about them than you would think. “Getting out for a round with someone will tell you everything you need to know about them,” says Carson Ackroyd, senior vice-president of sales with Tourism Calgary. “Do they overinflate how good they are? Do they under-inflate? You learn a lot about someone’s character – not only how they play and how they react, but how they position themselves. Ackroyd, who used to compete on the junior circuit, will typically get in 40 to 50 rounds annually. The acorn didn’t fall far from the tree, either. His daughter, Annabelle, has been the Alberta junior champion for the past two years and
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INGLEWOOD GOLF AND CURLING CLUB Maximizing Golfer Satisfaction
I
t is easy to enjoy a game of golf at Calgary’s Inglewood Golf and Curling Club. It boasts a great course in a superb location along the banks of the Bow River just five minutes from downtown and its maintenance staff works hard to provide meticulously maintained fairways and greens. Breathtaking river views and the service from exceptional staff combine to make Inglewood Golf and Curling Club one of the finest and most popular semi-private 18-hole championship courses in Western Canada. Despite being located in the heart of Calgary, Inglewood has large mature trees lining the fairways. With the backdrop of the city skyline, it is a popular par-71 oasis for golfers.
golfers of all ages, and particularly the younger generation, don’t have four hours or to do dedicate to one round of golf. “To maximize golfer satisfaction, we are looking at offering some nine-hole options at different times, for those members and guests who may not have the time it takes to play 18.” Stanier emphasizes that Inglewood’s location is important for golfers. “Our central location makes Inglewood an excellent venue for public play, corporate and charity golf tournaments and, of course, member play.”
General manager and executive professional Jason Stanier enthusiastically points out that Inglewood’s location and layout make it a desired destination for Calgary golfers. “We are a walkable parkland course, beautifully located along the Bow River, with some of the best putting surfaces in the city. Our very central location makes it easy and convenient to meet friends or colleagues just five minutes from downtown.”
Inglewood also offers a variety of practice facilities including a 31-stall driving range, two putting greens and a short game area complete with a practice bunker for warming up. It also has a fully-stocked pro shop with a great selection of quality merchandise at competitive prices – and five PGA Canada pros who offer professional advice and teach high-quality lessons. After a round, golfers can enjoy a drink on the patio overlooking the 18th green with both river and downtown views, or eat inside the clubhouse that is open year-round.
He adds, “Time is an important feature and a big plus for Calgary golfers and an emerging trend about the game of golf. Despite stereotypes, it’s not only a generational thing. Time is an important aspect of contemporary life, as well as in the game of golf. While the 18-hole game is still the most popular choice,
Despite predictably unpredictable Calgary winters and notoriously short golf seasons, Stanier acknowledges a Calgary passion for golf. “Golfers in Calgary love the game and they are very active players. Calgary has a much higher percentage of golfers compared to other, similarly-sized cities.”
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BRINGING BUSINESS TO THE FOREFRONT // GOLF
is currently a freshman at the University of Minnesota on a golf scholarship. According to Ackroyd, Calgary offers an abundance of opportunities to mix business with pleasure, with a multitude of private and semi-private courses within the city alongside award-winning greens in nearby Kananaskis. Having so many options ultimately gives the city a competitive advantage when looking to attract a crowd. “Calgary and the surrounding area offer world-class golf that people travel from all around the world to play on,” says Ackroyd. “Having so many exceptional courses within an hour’s drive from Calgary provides high-calibre courses that attract high-quality clients. They will travel to golf here, and will stay longer to have that experience. “I’ve run a number of different sales teams, and we have regularly had top-level clients wanting to come out and experience our courses. With that is your ability to go and connect with the right people and take your business to the next level.” For Corinne Lyall, golf is often part of doing business. Between industry tournaments, client meetings and team building, the broker/owner of Royal LePage Benchmark and past president of CREB says some of the best deals and collaborations happen miles away from the boardroom. “It’s a good way to gift your clients or promote connections,” says Lyall. “If you go consistently, you’re going to meet people. It’s that other avenue to build relationships.” She also notes it’s an opportunity to connect with fellow real estate professionals – many of whom she might never otherwise meet. “In our business, so much of it has become technology focused that you don’t always get to meet the real estate professional when you do a deal with them,” she says. “So something like an association or membership-type golf tournament gives you that opportunity to meet them and be able to have that relationship built before you have that next deal with them.” Jerry Koonar also uses golf as a way to expand his network. The Calgary-based vice-president and portfolio manager at Leith Wheeler Investment Counsel says he gets two to three rounds in a week during the season, most often with associates and both current and potential clients.
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“It’s a tool I use and continue to use,” he says. “I’ll often golf with people from within my network of accountants, lawyers and others who have contributed to my client base. It gives us a social opportunity to discuss business and things outside of business. “We’ll also see if they have a client they would like to bring along, and use that as an introduction to myself, the firm and hopefully other discussions down the road.” He adds that, unlike other sports, golf provides an intimate social environment to get to know someone better. “You’re not offered that opportunity in many business settings – that opportunity to share a considerable amount of time with somebody,” he says. “After four hours in a cart together, you’re going to start by talking about family or current affairs, but it will eventually turn to business.” Golf is also useful in the investment world where a phrase like “playing the long game” is interchangeable with building portfolios and hitting for par. “I could remind a client that investing is like a four-day tournament,” he says. “We’re helping you set up a plan so you can be successful over the four days. And even though the first nine holes on the first day might not go the way you want, we’ve got a plan in place that’s long term and strategic to get you to the end goal at the end of the four days. “It’s more about focusing on long term, making sure you’re delivering the right shots.” Lyall echoes Koonar, noting golf can teach the importance of focusing on the bigger picture. “Golf, like business, can be very frustrating, but your game can improve when you don’t hold onto things,” she says. “It’s not about getting worked up about how you do on that last hole. It’s not about what you do last. It’s about what you do the next time you’re out there. “You can make that analogy to life, as well. People who hang onto their failures are doomed to repeat them. Yet if you learn from them and take responsibility and move forward, your game is going to improve, and so will your decisions in life. “I golfed last weekend and the first nine was not great for any of us. But the last nine was a different story. It’s the sum of the game that really makes the difference.”
GOLF EVENT PLANNING 101 // SCOTT ORBAN
McKenzie Meadows Golf Tip:
Golf Event Planning 101 BY SCOTT ORBAN, PGA EXECUTIVE PROFESSIONAL, MCKENZIE MEADOWS GOLF CLUB
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hat? You have just been volunteered (or voluntold) to plan a golf event, it can seem overwhelming. Here is a tip on how to get started. Before you surf around on the net looking for a venue, answer some questions; why, who, when, and where. Team building, fun, gratitude and charity are the reasons WHY golf events are so successful. It’s bringing a common group of customers, employees, or friends together to enjoy a social event, build stronger relationships and in many cases raise funds for a cause.
• How much are they willing to pay (or is the boss willing to pay LOL… a lot has changed here in the past 10 years)? • What level of golfers are they? Do they golf a lot? Preferring a 9 hole or 18 hole format? Maybe they don’t golf at all, but would like to learn through an interactive Golf School. • What level (toughness, fun factor) of Golf Course suits the majority of your customers. • If it is a charity event, when are the sponsors available to play? They are the real customers in this case.
The most important question is ….. WHO is going to attend your event? And what are their preferences?
• Do they care who they play with, or is it more likely they will play if they can form their own group, or bring a guest.
So Who is your target Customer?
• Is it a couples outing, men, women, children?
• What month, day of week, and time of day are they available to play golf?
The choice of WHERE will be narrowed down to a few choice venues by the answers above. Time to give your short list a quick call, pick a date, and let the Golf Courses events team help you make this a great event!
• How far would they be willing to travel to play in an event?
Golf...with a smile :) McKenzie Meadows Golf Club in Calgary’s Fish Creek Provincial Park
www.mckenziemeadows.com 403.257.BALL (2255) Premium 18 Holes
Academy & Range
Events
Bar & Grill
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58th Annual Calgary White Hat Awards to Celebrate Our City’s Ultimate Hosts Individuals and organizations in Calgary’s tourism and hospitality industry to be recognized for customer service excellence BY BRIDGETTE SLATER
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or more than half a century, the Calgary White Hat Awards have celebrated the exemplary individuals and organizations in Calgary’s tourism and hospitality industry that go above and beyond to create memorable guest experiences. On Tuesday, May 12, Tourism Calgary and its event partners will proudly host the 58th annual Calgary White Hat Awards Show at the Southern Alberta Jubilee Auditorium. This year, 22 individuals and four organizations will be recognized for their exceptional customer service, leadership and performance. Customer service excellence is recognized through 20 categories that span the accommodation, airline, attraction, culinary, event, transportation, guest services and shopping facets of Calgary’s tourism and hospitality industry. Six honourary Calgary White Hat Awards are also presented to individuals and organizations that have demonstrated a long-term commitment to Calgary and to the growth of the tourism economy. The individual awards include the Mayor’s White Hat and Doug Johnson Service Awards, while the organization-specific awards include the Calgary White Hat Legacy, Restaurant, Major Tourism Event and Ultimate Host Awards. This year, Tourism Calgary received 715 Calgary White Hat Award nominations, submitted by guests, co-workers or managers working in the tourism industry. In early March, each of these nominees participated in an inperson interview where they were evaluated based on their enthusiasm, professionalism and dedication to Calgary’s tourism industry. This component sets the Calgary White Hat Awards apart from other recognition programs by
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providing the opportunity to fully capture nominees’ inspiring stories and to give them the recognition they deserve. Following the interviews, final scores are tabulated and verified by a third-party auditor and reviewed by the Calgary White Hat Awards winner selection committee. Second to none, the Calgary White Hat Awards are all about leveraging the undeniable community spirit Calgarians are known for to celebrate our city and the ultimate hosts who perpetuate our reputation for western hospitality. With almost eight million visitors contributing $2 billion to the economy annually, these ultimate hosts play a vital role in sharing all that our city has to offer. To learn more about the Calgary White Hat Awards, or to purchase tickets for the awards show on Tuesday, May 12, see visitcalgary.com/whitehat.
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Diversity Creates an Exceptional Workforce in Calgary
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algary is the third most ethnically diverse major city in Canada and new Canadians play an increasingly significant role in our city’s economic prosperity. They are employees and employers, consumers, curators of international experiences, connectors to significant emerging markets, and community builders. The value of diversity and inclusion is more important in the global digital economy concludes a report authored by Hubba Khatoon and Jason Ribeiro of the research and strategy team at Calgary Economic Development titled Calgary’s Newcomers as Economic Drivers. “The case (for inclusion) is clear and growing; in the information age, diversity is a strength,” concludes the report that details how diversity drives innovation, develops perspective and sparks creativity. Getting Calgarians back to work is a top priority for Calgary Economic Development in this economic climate. We are focused on helping displaced workers transition to indemand jobs and ensuring new grads know there are career paths for them. We also know a growing city creates new economic opportunities. Even in the current downturn, more Calgarians than ever are working. There are more than 2,000 open technology jobs in Calgary and despite producing world-class STEM talent, Calgary faces a substantial skills gap in attempting to meet industry needs. A 2017 report by the Conference Board of Canada on newcomer integration and economic growth reveals that an increase of 450,000 newcomers per year in Canada would result in a 2.05 per cent increase in real GDP, with immigration contributing to nearly one-third of economic growth. From 2009-2018, Calgary added 178,785 people from 150 countries to help bring the population to 1.5 million people. The Philippines was the biggest source of new arrivals at 22
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per cent, followed by India (15 per cent), China (7 per cent), Pakistan (5 per cent) and Nigeria (5 per cent). The economic strategy, Calgary in the New Economy, lists talent as the key to unlocking long-term economic growth. Creating opportunities for Calgarians to drive innovation and being Canada’s leading destination for global talent is critical to building a pipeline of human capital in the city for continued prosperity. “Our success will largely be dependent upon our ability to both embrace the adoption of advanced technologies and welcome an inclusive and flexible approach to transitioning, developing and attracting talent,” said the report. “In a fastchanging world, talent is the key to unlocking long-term economic growth and being Canada’s leading destination for talent is critical to Calgary building a robust pipeline of human capital for continued economic prosperity.” Whether a company has a purely local customer base, or is operating globally, hiring skilled immigrants puts the organization in a position to: • Understand a diverse customer base. • Tap into growing local and international markets. • Expand business opportunities through improved cultural awareness and connections. • Strengthen relationships with existing customers and suppliers. • Improve corporate culture by enhancing creativity, productivity and decision-making. • Attract and retain top talent. The report also offers best practices for employers to build a diverse workforce. Calgary is a vibrant city and our diversity is a strength as we work to achieve sustainable economic growth, embrace shared prosperity and build strong communities.
COWAN GRAPHICS INC.
CELEBRATES 75 YEARS This company has met and overcome every challenge to become the quiet but powerful force behind the nation’s most recognizable brands. By Nerissa McNaughton
Blaine MacMillan
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owan Graphics Inc. is a family-owned brand builder providing concept to completion services for vehicle markings, retail graphics solutions, building wayfinding signage, tactile and braille signs, murals, window graphics, event signage, decals, tags, magnets, regulatory and construction compliance signage. You know the work of Cowan Graphics. For more than 75 years Cowan has added functionality, colour and beauty to your life. The massive Lexus ad wrapping the terminals at Edmonton and Calgary International Airports? Cowan Graphics did that. The electrical box on your street beautified by a vinyl photo? Cowan Graphics did that too. Those enticing 3D signs in Safeway that show you the floral, produce, or bakery departments? You guessed it – made from scratch by Cowan. President Blaine MacMillan says of the family business, “We launched in 1945 at the end of World War II and started out by bronzing baby shoes, hand painting silk ties and making crests. Today Cowan Graphics is a manufacturer of quality graphics solutions serving multiple markets regionally, nationally and internationally.” And yet that hardly begins to describe the incredible reach of this local company.
Let’s focus on the word local for a moment. Cowan Graphics launched in Edmonton and is fiercely proud to be Albertan despite what MacMillan calls “the challenges unique to Alberta and what is being done, or not being done, to solve them.” With its global reach and massive output capabilities, Cowan Graphics could easily relocate to where staffing, production and transportation are met with less roadblocks, but MacMillan is loyal to the cities and the provinces
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that have supported the brand for over 75 years, and to the 145 working partners under the company’s employ. “We are creative,” MacMillan adds. “We are committed to asking what our customers’ needs are and then determining the best solutions for those needs. We think outside of the box. Our clients give us the use of their brand and we don’t take that opportunity lightly. Trust is a very important word in everything Cowan does. We are an extension of our customers’ brands and we need to make sure we get everything right. Dustin MacMIllan, Vice President and Jason Bamford, Vice President with Blaine MacMillan, President.
Just one example of how serious Cowan Graphics is about their customers is seen in a project they completed back in 1999. Canada Post put out a tender requiring the re-decaling (removing the old decals and putting on the new) of their fleet. The work had to be done at each Canada Post site (postal stations) from the urban centres to the small rural outposts. Naturally there were strict deadlines and the mail flow could not be impacted. “We purchased five motorhomes, put trailers behind them and drove from Victoria, BC to St. Johns, Nfld. I put newspaper ads in each city telling people that wanted a few days’ work where to meet us,” MacMillan says. “Cowan Graphics completed the job in 2.5 months, which was ahead of Canada Post’s schedule. We re-branded 4,500 vehicles in total and 95 per cent of the work was completed outdoors.” This monumental success was recognized with an Award of Excellence from Canada Post, acknowledging Cowan Graphics as one of their top four suppliers nationally. “We are the ‘finish-line’ folks,” he says modestly about the above-and-beyond effort that goes into every project, large or small. In order to get the brands they work with across that finish line, Cowan Graphics operates out of a combination of plants totalling 135K square feet across Edmonton, Calgary and Saskatoon, and uses stateof-the-art digital, screen, converting and finishing equipment, some of which is the largest of its kind in Western Canada. A lot of the work is finished and packaged by hand to ensure a high level of accuracy and stringent quality control is paramount. All this and more is managed by a dedicated team of employees that are trained and cross trained on site.
COWAN GRAPHICS • 75 YEARS • 2
Bold has no boundaries. Congratulations to Cowan Graphics on 75 years of supporting your customers with bold, innovative solutions – from concept to completion.
3M and 3M Science. Applied to Life. are trademarks of 3M. Used under license in Canada. Š 2020, 3M. All rights reserved.
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But the production floor has something more than equipment. It has a true sense of community. MacMillan knows the names of the 145 staff that are working hard on their clients’ behalf. During a tour of the warehouse he greets even the newest team members by name, and everyone is happy to see him. Flags hang high representing the home countries of all of the employees, and everyone is busy but also relaxed and smiling. Everywhere you look there are hallmarks of an expertly run company that cares about its employees as much as it cares about its clients. Cowan Graphics also cares passionately about community interests and is a long-term supporter of non-profits like Sport Central, the Cure Cancer Foundation and Youth Empowerment and
Support Services (YESS). For Cowan’s business acumen, customer solutions, and community work, MacMillan is both pleased and humbled to be recognized, on behalf of the team, with prestigious awards such as Business in Edmonton Leaders and an alumni acknowledgement from the Northern Alberta Institute of Technology (NAIT). “In this age of digital capabilities,” he says, “it feels like there is a ‘sign shop’ on every corner. We are different, not just in our size, scope, and equipment. We are different because of our focus, commitment, resources, dedication and creativity. I have a vision to take our industry to the next level and I’m excited for the journey. I plan to promote, mentor and even push so that the importance of branding and the process behind it gets the recognition and support it deserves.” He continues, “We are a custom manufacturer of graphics solutions. No two projects are the same. We are excited for each challenge and to create the optimal impact that you, and our team, are looking for.”
Congratulations to Cowan Graphics on 75 years! We wish you many years of continued success.
www.gandydigital.com
In a province where manufacturers are facing significant challenges, the easy thing to do would be to pack up and go where the support is more prevalent. However, Cowan Graphics is firm in its commitment to its Alberta roots, and its 145 working partners. From investing in equipment to taking exceptional care of its team, from creating the most recognizable graphics in North America
COWAN GRAPHICS • 75 YEARS • 4
Dustin MacMillan, are very motivated, resolved and excited to lead the company forward. I am happy to be part of that exciting journey.” Personally, he thanks the Young Presidents’ Organization (YPO) and the Entrepreneurs’ Organization (EO) as instrumental to his professional growth. MacMillan is also very thankful for the support, trust, and reassurance of his immediate family and says, “I extend that thanks to my staff at Cowan, whom I consider my extended family.” You know Cowan Graphics’ work because you interact with it daily. Now you know the passion, experience and dedication behind the brand that supports the brands you know and love.
“Cowan Graphics invested, at great cost, to position ourselves in our current facility three years ago so we could recognize our fullest potential,” MacMillan confirms. “I have also recently sold a small part of the business to two young and progressive entrepreneurs. Cowan Graphics has a forward-thinking plan to double the size of it’s business. I’m excited to offer my experience, mentorship, and assistance. I’m excited for the next chapter. My partners, Jason Bamford and
“Visit us at cowan.ca or through our social media links… and let’s get your brand on!” he concludes.
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ATU R G ON
ON YOUR
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4511 Glenmore Trail SE #55, Calgary, AB T2C 2R9 (403) 233-9200 | cowan.ca
LATE YOU
COW
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to supporting the community, Cowan Graphics is more than a ‘sign shop.’ It is a company that has built, and will continue to build, the identities of brands locally and abroad.
TH
ANNIVERSARY
PROUD TO BE YOUR STRATEGIC SUPPLY PARTNER
Your Material Solution Provider. VANCOUVER • CALGARY • EDMONTON • WINNIPEG • LONDON • TORONTO • MONTREAL • DARTMOUTH • ST. JOHN’S
COWAN GRAPHICS • 75 YEARS • 5
MARKETING MATTERS // DAVID PARKER
Marketing Matters BY DAVID PARKER
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lways a believer in hiring local talent, it is more important than ever to provide as much work as possible to Calgary companies during the current economic blip. So why, for heaven’s sake, has the University of Calgary contracted a Vancouver company to handle its media buying services. I know that for the past 12 years this task has been handled very well by Deborah Lam, an experienced specialist who was national media buyer for Hayhurst for a number of years, but now I understand the university has made a change. Fine if it felt new blood – or whatever – was needed, but there are other media buying firms in town that are quite capable of doing the job well. Bad enough that the institution – willing to accept provincial government funding – hires out-of-city architects to design new buildings; our creative, marketing and public relations companies are not having the best of times and should be supported. And they are among the best you will find anywhere in the country. The impact of moving communications services has a far broader effect than on one individual firm. For instance, a move outside the city means they are termed national accounts and local reps are then also out of pocket due to the loss of local relationships. In my opinion, all Calgary companies should make every effort to support local businesses. Doesn’t matter the size of the organization, loss of revenue or perhaps even loss of jobs means those affected have lost buying power to support
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other Calgary businesses and to provide pro-bono services to support local charities.
A communications firm that does support those in need, Forward Level organized last month’s Move Forward YYC fundraising initiative at Hotel Arts. The entire ticket price went to purchase new underwear for men and women at the Mustard Seed.
One of the Calgary firms starting the year in a positive mood is Tag Advertising. Recently, it was tasked with creating an HR campaign for Aucerna that brought company representatives from around the world to the Calgary headquarters for interviews and a photo shoot to be featured in a new “Heroes” campaign. Tag has picked up more retail shopping centres with the addition of Park Place in Lethbridge, Medicine Hat Mall and Northland Village Mall in Calgary. New business has meant the need for new hires including Milan Janicek as senior art director and digital art director, and account manager Sarah Cullen, who rejoined TAG after a stint working in Ireland.
Parker’s Pick Sam Corea – who understands the value of consistent marketing.
Leasing Information: Peter Stack 403.571.2532 peter.stack@cadillacfairview.com
Grow your Business with our Experience Cadillac Fairview offers a diverse real estate portfolio complemented with comprehensive property management services. Through the strength of ownership, strategic acquisitions, and development, Cadillac Fairview provides innovative, sustainable and functional facilities that are able to deliver exceptional solutions to tenants. SHELL CENTRE
CALGARY CITY CENTRE
400 4TH AVENUE SW
215 2 STREET SW
A LEED Gold building serving a global tenant. Shell Centre is connected to the core via +15 walkways and blocks from Eau Claire and Calgary’s extended bike lanes. • LEED Gold Certified • Class A Office • 33 Floors • Retail Space Available • Close to Eau Claire • Global Tenant • Energy Star Certified
This LEED Platinum building opened the doors in 2016. Calgary City Centre is anchored in Calgary’s remarkable Eau Claire area. The building has a first-class fitness facility, professional conference centre and more. • LEED Platinum Certified • Class AAA Office • 36 Floors • 26,695 sf Floorplate • Fully Connected to the Core via +15 Walkways • Breathtaking Finishes • Energy Star Certified
ENCOR PLACE
635 8TH AVE
645 7TH AVENUE SW
635 8TH AVENUE SW
Unbeatable location with easy access, in and out of Calgary’s core. Encor Place offers an efficient floorplate providing prominent layouts for all sized tenants. The building’s lobby is finished with stunning marble and granite making it bright and welcoming. • Class A Office • 29 Floors • BOMA BESt Certified • Located on Calgary’s LRT Line • Connected to the Core via +15 Walkways • Energy Star Certified
This vibrant building has a premier location offering effortless access, in and out of Calgary’s core. 635 8th Avenue is situated on Calgary’s intricate bike lanes. The building offers efficient floorplates and an energetic atmosphere. • Class B Office • 25 Floors • BOMA BESt Certified • Cogeneration System • Located on Calgary’s bike lanes • One block from the LRT Line • Energy Star Certified • +15 Connected