DECEMBER 2016 | $3.50 BUSINESSINCALGARY.COM
PM41126516
Giving Back: PART OF THE PETERS & CO. CULTURE
U R BANOMICS: COOLING OFF MARKETS THAT ARE NOT HOT
PAGE
20 |
CALGARY CHAMBER SECTION
PAGE
55
“The dream doesn’t happen overnight.”
Every entrepreneur has a story. Learn more at atb.com/amplifybusiness
NOW LEASING www.Place10.ca
FEATURES:
DOWNTOWN OFFICE AND RETAIL
PLACE 10 524 – 10TH AVENUE S.W.
2 Buildings Totaling 600,000+/- SqFt of Office 20,000+/- SqFt of Retail 28 Floors
Roof Top Patio Plus 15 Connected 456 Underground Parking Stalls
Centron specializes in
real estate development, leasing, sales and construction of office, retail and industrial projects.
CENTRON CARES Building Our Community
SUBURBAN OFFICE OVER 80% LEASED
SUBURBAN OFFICE NOW LEASING
BLACKFOOT POINT
FOUNTAIN COURT
135,000 SqFt of First Class Office Space 194 Underground and 215 Surface Parking Stalls 4 Buildings – 1 and 2 Stories Ready for Tenant Fixturing
90,496 SqFt of First Class Office Space 256 Surface Parking Stalls 3 Buildings – 1 and 2 Stories Ready for Tenant Fixturing
Centron Cares is proud to partner with Accessible Housing (Resolve Calgary) constructing a Residential Care Facility for limited mobility residents
Phone: 403-252-1120 Email: leasing@centrongroup.com Centrongroup.com
MY EXPERIENCE SPRINGBANK | $8,500,000
209
PI N N AC LE R I DG E PL AC E , S W
Crafted by exceptional artisans and boasting only the finest of imported & local materials this 14,000 SF Tuscan villa inspired home is less than 10 years old yet it almost instantly transports you to Europe with an incredible sense of old world tradition and authenticity. With a 1,000 SF gym, 1500 SF professional style theatre, gourmet kitchen, elevator, 7 bedrooms, pool house, sport court, 5 car garage, opulent master wing & south facing courtyard this home is ideal for a large family or as an executive retreat. It was used as a set in the Fargo mini-series, has been featured in the National Post & most recently leased to Leonardo DiCaprio for 6 months during the filming of The Revenant. Ideal location set on 2 acres overlooking the beautiful Rocky Mountains yet just a few minutes away from shopping & services, 10 minutes to the Springbank airport & some of Calgary’s very best private schools.
BEARSPAW | $4,900,000
103
WOODL AN D L AN E
This incredible home sits on 2 exquisitely manicured acres with stream, pond & dream treehouse! Thoughtfully designed, beautifully crafted bungalow w/ loft, walkout, elevator, 4 car garage This home boasts sophisticated, programmable lights, sound, security, blinds, water feature, pool features, sprinklers, heating & cooling. Impressive in every way with stunning curb appeal, chef’s kitchen (induction range, espresso maker, Wolf, Sub-Zero, Miele), elegant master wing (w/ sitting rm, bar, walk-in, laundry & steam shower ensuite), main floor den, homework room & ensuite guest rm. Walkout with family/games room, wet bar, laundry, 4 bedrooms & mudroom. Secure pool room w/ huge mosaic tiled pool with hard cover, water & fibre optic light features hot tub, wet bar, gym & wall of sliding doors opening wide to a private patio with pond views.
MY EXPERIENcE IS YOUR ADVANtAGE
JUST ASK ME!
IS YOUR ADVANTAGE SPRINGBANK HILL | $1,795,000
BANKVIEW | $1,595,000
115
1709
M Y S T I C R I D G E PA R K , S W
T W E N T Y- F I R S T AV E N U E , S W
New construction in cutting edge urban location, steps to tennis courts & 17th Avenue this is the perfect lock & leave home! A rare bungalow style executive townhome with 3000 SF of luxurious living space, city views, concrete construction, high ceilings, Control 4 + Lutron lighting, Fleetwood doors, frameless glass railings + white oak floors, great room with marble faced fireplace, chef’s kitchen (custom cabinetry, Miele appliances, huge island & wet bar with wine fridge), elegant dining space with access to a huge terrace and boutique-hotel inspired master suite with lux ensuite & enormous walk-in. Developed basement, attached garage.
Huge (almost 1/4 acre) pie lot, backing onto a natural ravine! 3487 SF with 3 ensuite bedrooms + developed walkout (4th bedroom, bath & media room) for total of 4635 SF of living space. Offering tranquil ravine views from most rooms it is appointed with high ceilings, big windows (custom blinds), hardwood, quartz counters, white cabinetry, stainless steel appliances (6-burner gas cook-top), chic lighting & built-in sound. Open-planning living room (fireplace), island kitchen, casually elegant dining room, expanded mudroom, big laundry and vaulted master with dressing room & ensuite(free-standing tub).
SPRINGBANK HILL | $1,395,000
WEST SPRINGS | $1,175,000
17
41
S P R I N G W I L LO W C O U R T, S W
WEST GROVE RISE, SW
Backing the trees of a natural forested area this home has 3 ensuite bedrooms (+1 down) & 3700 of total development with wide-plank hardwood, vaulted/coffered/high ceilings, 2 fireplaces, custom window coverings, speakers, elevated views, A/C and backyard/forest views from: Nook, living room, den, master, sitting room & the chef’s kitchen with high-end stainless steel appliances (warming drawer, wine fridge & 5-burner gas cooktop), farmhouse sink & granite counters. Family/media room has a west facing deck & mountain views. Basement development includes family/games room, wet bar, mudroom, 4th bdrm, full bathroom & gym/flex area. Oversized triple garage
4000+ SF of beautifully appointed living space, 5 bedrooms, 4 baths, A/C, audio system, quartz counters, designer details & 50’ west-facing lot on quiet street near schools/shopping. Features a must-see kitchen with antiqued cabinets, contrasting island (matches butler’s pantry cabinetry), herringbone backsplash, apron sink & fabulous appliance pkg (2 dishwashers, 2 ovens, 6-burner gas cooktop)! Living & bonus room both have fireplaces, mudroom has built-in lockers, master ensuite with heated floor, 2 vanities, free-standing tub & big walk-in w/ skylight. Superb bsmt w/ media/games rm + flex, wet bar, bathroom & 2 bedrooms. Oversized, heated garage with pet wash.
SOUTH CALGARY | $899,000
ASPEN WOODS | $899,000
2929
4
S E V E N T E E N T H S T R E E T, S W
A S C OT P L AC E , S W
c
403 870 8811 |
t
403 686 7800 |
70
S TO N E Y P O I N T E P L AC E
Stylish new home with triple garage & developed basement, offers over 4200 SF of total living space, set on a .29 acre south facing lot (82’ x 151’) in wonderful Watermark. Features extensive hardwood, quartz counters, chic lighting, tray ceilings, den with barn door & designer kitchen with stainless steel appliances, natural wood & classic white cabinetry. There are 3 bedrooms, laundry & bonus room upstairs. The master suite is your private retreat with big walk-in closet and spa-like ensuite with free-standing tub. The basement is developed with a 4th bedroom & bathroom as well as lots of extra space for family fun in the family room & games room.
ASPEN WOODS | $1,098,000
87
A S P E N DA L E WAY, S W
Backing greenbelt, near Aspen Landing & West 85th shopping, several schools & C-train! 3547 SF with 4 bedrooms (flex room could be 5th bdrm) & den. Contemporary touches, soaring ceilings, tiled fireplace feature wall, speakers, A/C, granite/quartz counters, stone accents & wide-plank hardwood. Mudroom with lockers, den with built-ins, island kitchen with walk-thru pantry, bar (wine fridge), nook & stainless steel appliances (gas stove & wine fridge), master suite with gas fireplace, ensuite (jet tub, oversized rain-head shower, his/her sink, big walk-in closet), bonus room with hardwood, Basement with media/games room, huge 4th bedroom, full bathroom & flex room.
PATTERSON | $895,000
359
PAT T E R S O N B O U L E VA R D, S W
Best price in the area, 2924 SF home tucked away on quiet culde-sac walking distance of Webber Academy & close to Rundle, Manning, C-train & Aspen Landing shops! Great room plan, perfect for family living & entertaining it has hardwood, A/C, custom blinds, oversized garage (built-in cabinetry), speakers, granite counters, casually elegant dining room, living room with fireplace & open kitchen with eating bar, cherry cabinets, stainless appliances (gas stv) & walk thru pantry. There are 3 bedrooms, big laundry & bonus Rm (with bar) up. The master has a sitting Rm (ideal nursery or den), big walk-in & ensuite with free-standing tub, 2 sinks. Fenced yard gets westerly sun & has a patio, maintenance-free deck & u/g sprinklers.
Sophisticated townhouse with elevator, city view & party sized rooftop deck! This 2 bedroom 2-storey with its own elevator, city views and distinctive urban look & feel, offers over 2000 SF of living space with extensive upgrades & an awesome 570 SF rooftop deck with sunroom & outdoor kitchen! Carefree lock & leave inner-city living with high-end finishes: Hardwood floors, quartz/marble counters, lacquered cabinets, Fisher & Paykel appliances, built-in speakers, A/C, 3 fireplaces, 2 bedrooms & heated garage. Entertaining is easy with an open planned living, dining & kitchen. The master is your private retreat with panoramic views, walk-in, fireplace & spa-like 5-piece ensuite.
WATERMARK | $1,499,000
Low traffic street, backing natural greenspace, this 3626 SF 2-stry was built for entertaining & family living with 4 bedrooms & den, designer colors, curved staircase, plantation shutters, speakers, A/C, oversized garage, wet bar, 2 fireplaces & new stainless steel appliances (induction range w/ dual oven feature). The vaulted living Rm is ideal for a tall Christmas tree. The kitchen, nook, dining & family rooms all overlook the yard & greenbelt beyond. Cooks will appreciate the granite counters & new appliances. There are 3 bedrooms up incl. huge master with bayed sitting room, walk-in closet & jet tub ensuite. Family/games room, wet bar, 4th bedroom, bathroom & hobby area developed down.
www.SAMCOREA.COM
|
SAM@SAMCOREA.COM
STORY TITLE // SECTION
Supporting the visions of entrepreneurs one story at a time. Volume 26 | Number 12
REGULAR COLUMNS
14 16
Fixing Equalization By Frank Atkins
Genuine Consultation Needed on New City Taxes in Calgary By Paige MacPherson
CONTENTS
86
COVER FEATURE
30
Giving Back: Part of the Peters & Co. Culture The role of corporate and individual giving is more important than ever! By John Hardy
ON OUR COVER: ABOVE: CHRIS POTTER, PRESIDENT AND CEO OF PETERS & CO. PHOTO SOURCE: EWAN PHOTO VIDEO
FIND US ONLINE! B US I N E SS I NCALGARY.COM BUSINESS IN CALGARY
6
45 55 82
@BUSINCALGARY
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
55
BOMA Calgary News Winter 2016 Leading Business The Calgary Report Current developments for Calgary Telus Convention Centre, Tourism Calgary, Calgary Economic Development, and Innovate Calgary
Marketing Matters By David Parker
When thinking snow removal this fall, think to call Liftboss for DOOSAN equipment!
C
oming out of a very wet spring/summer season, it is time to start thinking about snow removal in the months ahead. If you are looking at replacing or adding to your existing fleet, think DOOSAN!! With a great range of loaders and the two newly released DOOSAN snow pusher blades, a package from Liftboss will serve you well. With one of the best warranties in the business, a number of financing options to meet your specific needs, and a focus on your continued growth and service, Liftboss will impress in all areas. DOOSAN’s wheel loader delivers exceptional power and speed, essential requirements for the work conducted under very difficult conditions. The product’s perfect quality and advanced durability will guarantee the top operation rate and a larger profit margin for customers. DOOSAN has released two new bucket-mounted snow pusher attachments for its 13- to 20-metric-ton weight class wheel loaders and tool carriers, adding even greater utility to these versatile machines. These dedicated snow pushers offer aggregates producers an alternative to buckets and traditional windrow plowing for providing winter maintenance of parking lots, haul roads and roadways. The snow pushers – which mount to all DOOSAN general purpose and light-material buckets – are available in two widths. A 12-ft. wide attachment weighs 2,200 lb., while the 14-ft. wide versions weighs 2,400 lb. Both snow pushers are approved for use on the DL200-5, DL200TC-5, DL220-5, DL250-5, DL250TC-5, DL300-5 wheel loader models.
Head Office 7912 Yellowhead Trail Edmonton, AB T5B 1G3 (877)474-1470
Calgary Office 8010 40 Street SE Calgary, AB T2C 2Y3 (403) 301-0041
www.liftboss.ca
STORY TITLE // SECTION
Supporting the visions of entrepreneurs one story at a time. Volume 26 | Number 12
69 39
CONTENTS COMPANY PROFILES
69
THIS MONTH’S FEATURES
20
B OSS Lubricants
Celebrates 25 Years
C ooling Off Markets That Are Not Hot The new mortgage rules By John Hardy
23 39
S haron Carry Retires from her Position as President and CEO of Bow Valley College T he Occupational Second Chance Courses are constantly changing By Parker Grant
62
23 8
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
C algary Real Estate 2017 Expert Predictions for the New Year By Melanie Darbyshire
Alberta Export Awards 2016* *Only in select copies of Business in Calgary Magazine after the Continuing Education Feature
Dragons’ Den Pitcher 2012
“Canada Post is reliable, convenient and they help us run our business more successfully. We love them.” Natasha & Elysia Vandenhurk, Three Farmers Solutions for Small Business
Company Name
Customer Number
You have what it takes to succeed. We’re here to support you with a network that reaches every single address in Canada. That means fast, flexible and cost-effective shipping. It means e-commerce solutions that make it easy to sell online. It means direct mail tools to help you target and reach new customers. Find out how we can help you go further.
To see more small business success stories, visit canadapost.ca/dragonsden TM
Trademark of Canada Post Corporation.
Shipping Solutions
Marketing Solutions
E-commerce Solutions
Mailing Solutions
Control your group benefit plan costs… without compromising choice or flexibility.
PUBLISHERS
Pat Ottmann & Tim Ottmann
ASSOCIATE PUBLISHER
Evelyn Dehner evelyn@businessincalgary.com
EDITOR
John Hardy
COPY EDITORS
Lisa Johnston, Nikki Gouthro
ART DIRECTOR
Jessi Evetts jessi@businessincalgary.com
ADMINISTRATION
Nancy Bielecki nancy@businessincalgary.com Denise Templeton denise@businessincalgary.com
REGULAR CONTRIBUTORS Frank Atkins David Parker Paige MacPherson
THIS ISSUE’S CONTRIBUTORS Melanie Darbyshire Rennay Craats Parker Grant
PHOTOGRAPHY
Cover photo courtesy of Ewan Photo Video
ADVERTISING SALES
As Alberta’s largest benefit provider, Alberta Blue Cross delivers industry-leading plan management and cost containment to meet the needs of Alberta employers through challenging economic times. If your employer group plan isn’t with Alberta Blue Cross yet, now is the right time to consider switching. Call us today for a confidential no-obligation quote, or talk to your plan advisor.
Calgary
403-294-4004
Toll free 1-866-513-2555
www.ab.bluecross.ca
Prescription Drugs • Dental • Extended Health • Travel Coverage • Life and Disability • Vision Spending Accounts • Critical Illness • Employee and Family Assistance Program
Monika Blachut monika@businessincalgary.com
DIRECTORS OF CUSTOM PUBLISHING Kelsi Vescarelli kelsi@businessincalgary.com Shannon Wilson shannon@businessincalgary.com
EDITORIAL, ADVERTISING & ADMINISTRATIVE OFFICES 1025, 101 6th Ave. SW Calgary, AB T2P 3P4 Tel: 403.264.3270 | Fax: 403.264.3276 Email: info@businessincalgary.com
SUBSCRIPTIONS Online at www.businessincalgary.com Annual rates: $31.50 CDN | $45 USA $85 International | Single Copy $3.50 Business in Calgary is delivered to over 33,500 business people every month including all registered business owners in Calgary, Banff, Canmore, Airdrie, Okotoks and the Calgary Chamber members. The publisher does not assume any responsibility for the contents of any advertisement, and all representations of warranties made in such advertising are those of the advertiser and not of the publisher. No portion of this publication may be reproduced, in all or in part, without the written permission of the publisher. Canadian publications mail sales product agreement No. 41126516.
®* The Blue Cross symbol and name are registered marks of the Canadian Association of Blue Cross Plans, an association of independent Blue Cross plans. Licensed to ABC Benefits Corporation for use in operating the Alberta Blue Cross Plan. ® † Blue Shield is a registered trade-mark of the Blue Cross Blue Shield Association. ABC 83420 2016/05
Return undeliverable Canadian addresses to circulation dept. 1025 101 6th Ave. SW Calgary, AB T2P 3P4 info@businessincalgary.com
WWW.BUSINESSINCALGARY.COM
10
Alberta Blue Cross 2016 Business in Calgary 2/3 page / full colour - Trim Size: 4.5” x 9.75” DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
RUN April, June, October 2016
Business in Calgary magazine’s circulation is audited twice a year by BPA International.
They just built a better future for Calgary. Literally. The new Canadian Natural Resources Limited Engineering Complex is now open at the Schulich School of Engineering, and generous support from 17 organizations in the building engineering community helped make it happen. The new complex is a high-tech hub of learning and research, with capacity for 400 additional students. Advanced labs, research and study spaces will result in top engineering graduates — innovative leaders who will find solutions to make the world better in countless ways. Thanks to visionaries who saw the need and acted — like the building engineering community — the future of Calgary is energized. Representing the building engineering community: Garry McTighe (SMP Engineering), Norm Webster (Read Jones Christoffersen), John Munroe (Integral Group), Dave Passingham (PCL Construction Management).
ucalgary.ca/campaign
Congratulatio CIP, FCIP & GIE Graduates
Dawnie Wong, FCIP Rogers Insurance Ltd.
Sebastian E , CIP Intact Insurance Company
Karen Lobsinger, FCIP, CE The Co-operators
Jennifer Fong, CIP United Farmers of Alberta
Temiloluwa Adenipekun, CIP Desjardins General Insurance Group
Bernadette Fonmedig, CIP First Service Residential
Louise Clement, FCIP Calgary Co-operative Association Ltd.
David Airth, CIP Cunningham Lindsey Canada Claims Services Ltd.
David Forman, CIP Wawanesa Mutual Insurance Co.
Duncan Cook, FCIP D.S. Cook & Associates
Jodie Ankner, CIP Rogers Insurance Ltd.
Deborah Dolomount, FCIP The Co-operators
Bessy Yuanming Bi, CIP Intact Insurance Company
Maria Rosalie Garcia, CIP The Boiler Inspection and Insurance Company of Canada
Jena Eisenhut, N.FCIP Arthur J. Gallagher Canada Ltd
John Boone, CIP Jones Brown Inc.
Nya Gussak, CIP Travelers Canada
Kevin Hengstler, FCIP ClaimsPro Inc.
Rannya Bun, CIP Wawanesa Mutual Insurance Co.
Paul James, CIP Nordic Insurance
Sylvia Jensen, FCIP LSW & Associates Ltd.
Kathleen Caldwell, CIP A.M.A. Insurance Agency Ltd.
Corbin Ketterer, CIP Intact Insurance Company
Teresa Lacosse, FCIP
Daena Diduck, CIP Homewood Health
Jennifer Ladan, CIP Sovereign General Insurance Co.
Michael Doel, CIP Aon Risk Solutions
Teresa Laing, CIP Wawanesa Mutual Insurance Co.
Cayla Douglas, CIP Intact Insurance Company
Jody Larson, CIP TransCanada Pipeline Ltd.
Jennifer Dronsfield, CIP Intact Insurance Company
Roberta LeBlanc, CIP Intact Insurance Company
Andrey Druzhkin, CIP The Co-operators
Lauren Lunn, CIP Intact Insurance Company
Lesley Baran, FCIP Wawanesa Mutual Insurance Co. Alison Barthel, FCIP Hub International Phoenix Insurance Brokers Nicholas Bencivenga,FCIP Aviva Canada Inc.
Dustin Linke, FCIP Aon Risk Solutions Savy Nhanh, FCIP Wawanesa Mutual Insurance Co. Lisa Parsons, FCIP Intact Insurance Company Susan Pielasa, FCIP ATCO Structures Inc Suzanne Thurlow, FCIP Wawanesa Mutual Insurance Co.
Brian Franklin, CIP Markel Canada Limited
To protect your house, car or business, look for the professional standard, an insurance professional with a CIP or FCIP designation.
Congratulations to the class of 2015.
ns to the class of 2016.
When it comes to insurance, a Chartered Insurance Professional knows. Educated | Experienced | Ethical
Daniel Ma, CIP City of Calgary
Joy Qu, CIP Lloyd Sadd Insurance Brokers
Trinh Tran, CIP Calgary Board of Education
Karim Maherali, CIP
Andrea Ranaghan, CIP Wawanesa Mutual Insurance Co.
Adam Vogelsang, CIP Wawanesa Mutual Insurance Co.
Mary Jane Reyes, CIP Aviva Canada Inc.
Jessica Vokey, CIP The Co-operators
Julia Richardson, CIP Marsh Canada Ltd.
Dominic Wilcott, CIP Wawanesa Mutual Insurance Co.
Hasan Saeed, CIP Travelers Canada
Matthew Wood, CIP Energy Insurance Group Ltd
Connor Scott, CIP Braemar Adjusting
Amanda Wu, CIP Intact Insurance Company
Samantha Scott, CIP Intact Insurance
Fan Xie, CIP The Co-operators
Balvinder Singh, CIP Travelers Canada
Yanheng Zhou, CIP Royal & SunAlliance Insurance Co.
Clare Smeaton, CIP Alberta Motor Association Insurance Company
Alanna Comeau, GIE Town of High River
Fiona Malone, CIP A.M.A. Insurance Agency Ltd. Monique Manning, CIP Iridium Risk Services Inc. Jennifer Mark, CIP Desjardins General Insurance Group Kusum Mbaso, CIP Western Financial Group Helen McLeod, CIP Intact Insurance Company Lisa Michael, CIP A.M.A. Insurance Agency Ltd. Jose Monteiro da Silva, CIP Wawanesa Mutual Insurance Co. Jennifer Murrin, CIP All Service Insurance Brokers Ltd. Chelsea Nightingale, CIP Crawford & Company (Canada) Inc.
Barry Smith, CIP Alberta Motor Association Insurance Company
Marcela Nitu, CIP The Co-operators
Jennifer Strachan, CIP A.M.A. Insurance Agency Ltd.
Oladayo Okemakinde, CIP The Co-operators
Jessie Theberge, CIP Travelers Canada
Danna Petkau, CIP Godfrey-Morrow Insurance & Financial Services Ltd.
Tina Tower, CIP Allstate Insurance Co of Canada Angela Tran, CIP April Canada
Erin Matson, GIE Wawanesa Mutual Insurance Co. Mallory, Neveu, GIE Wawanesa Mutual Insurance Co. Joel Rodenbush, GIE Wawanesa Mutual Insurance Co. Brianna Rodenbush, GIE Wawanesa Mutual Insurance Co. Chelsea Trimble, GIE Alberta Motor Association Insurance Company
Chartered Insurance Professionals (CIP) and Fellow Chartered Insurance Professionals (FCIP) are dedicated experts who have completed a rigorous qualification process requiring several years of study, strict adherence to a code of conduct and years of insurance experience. The Insurance Institute salutes the class of 2016 for their commitment to education, dedication to ethics, and achievement of this professional standard. www.insuranceinstitute.ca/consumer
To protect your house, car or business, look for the professional standard, an insurance professional with a CIP or FCIP designation. Chartered Insurance Professionals (CIP) and Fellow Chartered Insurance Professionals (FCIP) are dedicated
FIXING EQUALIZATION // FRANK ATKINS
Fixing Equalization BY FRANK ATKINS
I
n late October, the Wildrose Party released the Equalization Fairness Panel report, which listed six recommendations for the reform of equalization. I was honoured to be a member of this panel. This is a topic that a lot of people just seem to accept as given, yet at the same time a lot of people only have a vague understanding of how it works. It should be understood that equalization is just one part of a larger system of transfers. Formally, this system of transfers is composed of the Canada Health Transfer, the Canada Social Transfer and the Equalization and Territorial Formula Financing. As with any government program, this whole system of transfers is somewhat complicated. There is a belief amongst a non-trivial number of people that at the end of each year, someone writes a cheque to pay for transfers. This is simply not how it works. At the risk of oversimplification, here is a convenient and understandable manner in which to view this system of transfers. In each province, the federal government taxes money away from the province, as well as spending money in the province. If the federal government spends more money in a province than it taxes out of the province, that province is a net recipient of transfers. For a long time, Alberta has been a net contributor to the transfer system, something that angers Albertans, especially in light of the tough economic times that we are going through now. However, the transfer system is something that Albertans should question in good times or bad times. This is because, in its current form, it is just
bad economic policy. A good economic policy would be one that creates incentives for individuals to act in a manner that brings about good economic performance. The transfer system does just the opposite. I once said on a national news program that the system of transfers in Canada was like having your 35-year old son living in the basement without charging him rent and giving him an allowance. He would have no incentive to move out or get a job. Unfortunately, this is what has evolved in Canada. We have created what many refer to as a “welfare trap,� especially in the provinces east of Ontario. For instance, Quebec and some of the Atlantic Provinces have banned fracking in the name of the environment, while receiving transfer payments. Because of the manner in which the transfer system works, these provinces have no incentive to develop their resource sectors, presumably fearing losing transfer payments. At the press conference for the release of the Equalization Fairness Panel report, I was asked if I could say anything good about the transfer system. My response was that the original intention was good, but that it had become something other than what was intended by political meddling. In 2019, Canada will enter the next round of negotiations regarding equalization. In Alberta, we need to be prepared for this. You can be assured that Quebec will come to the table with a carefully articulated set of recommendations. Alberta needs to do the same. Now is the time to start thinking about reform of equalization.
Frank Atkins is Research Chair of Finance & Capital Markets at the Frontier Centre for Public Policy.
14
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
GENUINE CONSULTATION NEEDED ON NEW CITY TAXES IN CALGARY // PAIGE MACPHERSON
Genuine Consultation Needed on New City Taxes in Calgary BY PAIGE MACPHERSON
W
ill a city charter mean new, higher taxes for Calgary residents?
After a series of “information sessions” in Calgary, we still don’t have an answer. City charters are special agreements between the big cities and the province that could give new tax powers. Whether city council gets new tax powers should be decided by Calgarians. The provincial government could easily require a citywide referendum, and the rapid pace at which property taxes have risen over the past decade gives the province more than enough reason to demand this. In May of last year, Calgary’s transportation committee came out with a list of new ways the city could generate funds for transit. A Calgary sales tax, a gas tax, a $144-per-year vehicle registration tax, and toll roads were all on the table. All those taxes would have substantial impacts on businesses and residents alike. However, instead of giving Calgarians a real, binding say in the matter, the provincial government has embarked upon “information sessions” to hear from the public and stakeholders, while the city charter is being drafted. So far, there have been two kinds of sessions: consultations with stakeholders and public information sessions. The problem is, many people left the sessions with no more information than before. Attendees were given a 25-page document to review, including a long list of incredibly vague “enabling proposals” that could end up in the charter. Of course, it’s impossible for anyone to give meaningful feedback on a series of proposals if they have no real idea what those proposals actually mean.
Attendees were told to write concerns and questions onto brightly-coloured sticky notes, and stick them on boards set up in the room. Though sticky notes raised many concerns over new taxes, the sessions offered no information on the topic. Government representatives have said the “fiscal stage” of the city charter process will come later. But the timeline is incredibly rushed. The city and province told stakeholders they hope to have that fiscal stage posted online in 2017. The plan is that draft city charters will be posted in the spring, then 60 days later, they’ll approve it. That means there will only be 60 days for Calgarians to review and understand the charter and communicate their feedback to the government, then for government to review and understand all that feedback and incorporate any changes. Why the rush? No matter what the fiscal framework looks like, residents should be genuinely consulted before it is imposed. That takes more than 60 days. When asked why he wouldn’t commit to a referendum before any new city taxes were imposed, Mayor Nenshi said, “It’s pretty silly in my mind to commit to anything unless you know what if anything is on the table.” Surely the mayor understands how stakeholders and residents felt at the not-so-informative “information sessions.” If the city and province are going to maintain a referendum is unnecessary, then it is absolutely necessary they provide an adequate amount of time for Calgarians to understand the city charter and offer feedback. For now, city businesses and residents are still in the dark. Paige MacPherson is Alberta director of the Canadian Taxpayers Federation, a nonprofit, non-partisan citizens’ advocacy group dedicated to lower taxes, less waste and government accountability. For more information, visit taxpayer.com.
16
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
OFF
THE
Wayne and Eleanor Chiu Given CASE Benefactor Award College donors awarded in recognition of their outstanding contributions to community colleges
Bow Valley College donors Wayne, O.C., and Eleanor Chiu have been given the 2016 Council for Advancement and Support of Education’s (CASE) Benefactor Award at the CASE Conference for Community College Advancement in San Diego, United States, from October 5-7, 2016. The CASE Benefactor Award recognizes individuals, foundations or businesses for outstanding contributions to community colleges. Recipients embody the ideals of philanthropy, leadership and volunteerism in the service of community, technical and junior colleges. The Chius were the first Canadians to receive this award in 13 years. “Wayne and Eleanor Chiu’s affinity and support for Bow Valley College started as volunteerism, grew into leadership and now shines as a leading example of philanthropy. Over the years they have both shared their time and talent to advance the College, not only in becoming the largest community college in Alberta, but in developing strong programming around social entrepreneurship. In the community, the impact of their Trico Charitable Foundation is resounding and continues to grow. The community, including our community college, is and will continue to be stronger and richer because of these extraordinary people,” says Sharon Carry, Bow Valley College president and CEO. Wayne and Eleanor Chiu donated $3 million to Bow Valley College in 2014, the largest single contribution in the College’s history. In honour of this gift, the College renamed their School of Business the Chiu School of Business. Wayne Chiu was also a former member of the College’s Board of Governors.
Through the foundation, the Chius promote community development via sustainable entrepreneurial social profit organizations.
Wayne Chiu is the CEO of Trico Homes, Inc., and along with his wife Eleanor, founded the Trico Charitable Foundation.
To learn more about the CASE Benefactor Award go to www.case.org
ABOVE: WAYNE AND ELEANOR CHIU
18
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
Looking for straightforward IT Solutions? IT can be easy when you have the right team guiding your way.
Your next step is contacting us today.
We provide completely customizable IT solutions that are clear and effective. Our Managed IT Services, Cloud Services and CommunityCloud for Non-Profit make your job stress free, so you can just focus on being successful.
• Calgary • Edmonton • Red Deer
Toll Free: 1.888.224.5770 Email: info@nextdigital.ca
nextdigital.ca
Managed IT Services | Cloud Services | CommunityCloud for Non-Profit
COOLING OFF MARKETS THAT ARE NOT HOT // URBANOMICS
COOLING OFF MARKETS THAT ARE NOT HOT THE NEW MORTGAGE RULES BY JOHN HARDY
I
t’s been just about seven weeks but the unbiased jury of number crunchers, builders, developers and, most significantly, Calgary-area homebuyers and sellers is still out!
In mid-October, the Canadian government announced new mortgage rules, with the key following changes: • standardizing mortgage insurance eligibility criteria for high and low-ratio insured mortgages, including a mortgage rate stress test • closing loopholes surrounding the capital gains tax exemption on the sale of a principal residence • consulting on the distribution of risk in the housing finance system The Canadian Home Builders’ Association-Alberta (CHBAAlberta) – the voice of the residential construction industry in the province – advocates the prime objective of federal housing policy should be to support stability and predictability in Canada’s housing markets and housing finance system. The association analyzed the mortgage rate “stress test” and is very concerned about the impacts that reduced access to mortgages will have, possibly locking more first-time buyers out of home ownership. CHBA is also concerned about the impact these rules will have on slower markets with stable prices, like Calgary.
20
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
Are the new rules a severe but wise and necessary move by the federal government to minimize families from going over their head, being “house poor” and avoiding any even unlikely possibility of the recent U.S. home ownership meltdown happening in Canada? Already one of the more contentious aspects of the new rule among builders and particularly Calgary new homebuyers is about the provision that consumers qualify for a mortgage based on the posted rate for a fixed five-year mortgage at the major Canadian banks. That rate is now 4.6 per cent, while the actual lowest rate in the marketplace is 1.95 per cent. This translates out to consumers (especially first-time, new homebuyers) qualifying for far less debt. Is it a way to make contemporary homebuyers realistically plan ahead? Or, as some Calgary-area Realtors and mortgage brokers warn, the timing stinks because the new rules, particularly the “stress test,” may be a safety valve to cool off a hot real estate market before it overheats and explodes. But on the flip side, it may also have a discouraging and negative effect on an already stressed real estate market, like Calgary is at the moment. The professionals caution the new rules will immediately affect not only the actual numbers but the formulas and the calculations. Basically, the new rules drop the qualification
COOLING OFF MARKETS THAT ARE NOT HOT // URBANOMICS
amounts by 18 to 25 per cent. Hypothetically, if it drops the price a buyer can afford from $300,000 to $250,000, it impacts selection and ultimately impacts house pricing. As mortgage brokers calculate, under the previous rules, a buyer with an annual income of about $50,000 (who makes a standard five per cent down payment) was qualified to buy a home priced at up to $300,000. Under the new rules, that will drop to about $240,000. To buy a $400,000 home – closer to the Calgary market median – the buyer will need an annual household income of $80,000, up from the previous $65,000. “Federally there has been a significant concern regarding current levels of household debt,” explains the pluggedin Ann-Marie Lurie, chief economist of the Calgary Real Estate Board (CREB). “Some studies have demonstrated that elevated levels of household debt can have a significant impact on future economic growth. “The purpose of the changes is likely aimed at preventing this type of future economic impact, by reducing the amount of debt that consumers can take on today and also acting as a catalyst to help cool the housing market, particularly in major urban centres like Vancouver and Toronto.”
She cautions about the viability of a national policy, with so many variables in real estate markets in Canada. While some segments of the housing market are deemed “too hot,” others, like Calgary, are well into the second year of a correction, due to the weak economic climate. In mid-October, when the new rules kicked in, CREB reported prices in the city were actually down 3.78 per cent over the first nine months of the year compared to the same period in 2015, while sales were off 8.3 per cent during the period. Sales in the Toronto market were up 21.5 per cent in September from the year before, and prices rose 18 per cent. “We’re concerned that this policy is aimed at Canada’s hottest real estate markets but the new rule is blanketing Canada,” warns Donna Moore, CEO of the Canadian Home Builders’ Association-Alberta. “The government should consider different areas of the country when it comes to policy. “The real intent is to slow down just two regional markets. The federal government has acknowledged that the requirement for 10 per cent down payments on loan amounts over $500,000 is aimed at cooling specific regional housing markets, particularly Toronto and Vancouver. “It’s raining in Vancouver, but first-time homebuyers need an umbrella in Alberta!”
LEFT: ANN-MARIE LURIE, CHIEF ECONOMIST OF THE CALGARY REAL ESTATE BOARD (CREB) RIGHT: DONNA MOORE, CEO OF THE CANADIAN HOME BUILDERS’ ASSOCIATION-ALBERTA BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // DECEMBER 2016
21
We’re very lucky we didn’t have term limits. Sharon Carry is retiring from her position as President and CEO of Bow Valley College at the end of 2016 after almost two decades at the helm of Alberta’s largest and fastest growing community college. Under her leadership, the College embraced its mandate as Calgary and region’s comprehensive community college; helping to supply employers with work-ready graduates who make an immediate impact in the province. In collaboration with Indigenous partners, she has also fostered the College’s meaningful commitment to enhancing accessible and culturally relevant educational opportunities. Thank you to our generous sponsors for contributing to a remarkable celebration of Sharon’s leadership.
Photo Credit: The Alberta Order of Excellence
OFF THE
Top 5 Reasons to Invest in Calgary Real Estate: • 5th Most Livable City in the World • Fastest Growing Population • House Prices Less Than Canadian Average • Young Population: Median Age is 36 • 32 Year Average Annual Price Increase of 16%
Top 5 Reasons to Use Power Properties: Managing properties in • Established in for 1980 Calgary & surrounding area 35 years. • Over $100,000,000 in Assets Currently Under Management
• Non-Resident Specialists Power Properties is a full service Property
Management Company offering 35 years of • Complete Solution From Purchase experience. We will work with you to ensure you and your property receive the very best to Management
Image Here
Calgary becomes the first city in the world to offer an autonomous parking payment option.
care and service possible.
• Fully Licensed Brokerage Whether you are an investment property
owner, or an ex-pat required to leave the country for a time, we will treat your home as we would our own. Our property teams will work closely with Property management you to ensure your property is rented Managementand maintained to your standards.
Non-Resident/ Expat Specialists Property Management
Non-Resident/Expat Specialists MLS Sales MLS Sales Lease Only
House Sitting
House Sitting Mention code ANNIVERSARY for a bonus month of advertising Member of BBB, CREB, CREA & REIC
www.powerproperties.net www.powerproperties.net info@ powerproperties.net info@powerproperties.net (877)(877) 913-7555 913-7555
Managing properties in Calgary & surrounding area for over 35 years. 24
PayBySky Launches World’s First Autonomous Parking Payment Service for Calgary’s ParkPlus System
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
As of October 2016, motorists in Calgary are the first in the world to be able to pay for their parking using a fully-autonomous payment service powered by PayBySky technology. PayBySky uses a small in-vehicle device called a ‘Skymeter’ to pinpoint a vehicle’s exact location so it can then make an automatic parking payment on your behalf using Calgary Parking Authority’s ParkPlus account. ‘The Skymeter removes the hassle and headache of paying for parking,” says PayBySky President Roger D’Hollander. “With the Skymeter, all you need to do is park your vehicle, walk away and let the system pay for your parking.” PayBySky also includes handy additional features such as a trip log book, real-time vehicle location and driving behaviour analysis, which are especially useful for company-owned vehicles. PayBySky’s technology works with Calgary’s ParkPlus System to remove the need for cash, credit cards or mobile phones to make a parking payment. All a customer needs for ultimate freedom is to install a Skymeter in their vehicle. “Calgary is recognized as a world leader in technology, and in keeping with that tradition, we are excited to extend PayBySky
OFF
THE
convenience to our ParkPlus account holders,” says Calgary Parking Authority General Manager Mike Derbyshire. “The combination of these two systems moves us one step closer to the future of self-driving and autonomous vehicles and we want to make sure that our technology is ready for that reality.’ Calgary-based Constant Fire Protection Systems was the
first customer to use PayBySky. Rob Anderson, president, comments: ‘This innovative service aligns with our strategy to use progressive technology to increase productivity in all aspects of our business.” Information about how to obtain a Skymeter can be found at www.paybysky.com.
ABOVE: ROB ANDERSON, PRESIDENT, CONSTANT FIRE PROTECTION SYSTEMS AND ROGER D’HOLLANDER, CEO PAYBYSKY SHAKING HANDS ON CONTRACT SIGNING. BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // DECEMBER 2016
25
OFF
THE
Calgary Business Hall of Fame 2016
SID, DANIELLE AND LINDA OLSEN
ROSS GLEN, MARG SOUTHERN, CAL WENZEL, MAC VAN WIELINGEN
PHOTO SOURCE: ADAM PEARISO, LIFE CAPTURE STUDIOS (LIFECAPTURE.CA)
26
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
THE
PUSH
Experience the delicious feeling of calling your own shots Get precisely what you want from every bite. Or Sip. Centini never asks you to settle for less. Our chef-run kitchen enables you to experience our culinary craftsmanship exactly as you prefer. From offsite breakfasts & all-day meetings, to lunch with a client, dinner for the board, or drinks to scope out a new opportunity, we offer the ideal environment for exploring your options. After 15 years, we’re well seasoned and professional — just like you! Think of us as your secret weapon in getting things done. events@centini.com 403.269.1600
We Mean Business
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // DECEMBER 2016
27
OFF
THE
HASKAYNE
MBA
BUSINESS IN CALGARY NOVEMBER 2016 COVER
‘‘
The highlight of my Haskayne MBA was connecting with a diverse network of leaders and peers. Real world challenges, valuable insights and timely experiences were brought to the table, providing a myriad of perspectives that challenged my preconceived notions. This experience armed me with the sound leadership, strategic thinking and collaboration skills required to succeed in today’s challenging corporate environment.”
NANCY SOUTHERN
SueAnne Fu-Joncic, MBA’10 Manager, HR Process & Integration Suncor Energy
The Haskayne MBA. Calgary’s MBA.
haskaynemba.ca
28
LINDA OLSEN AND CAL WENZEL
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
OFF
THE
MAC VAN WIELINGEN
GUESTS ENJOYING THE EVENT
MAC VAN WIELINGEN AND HAL KVISLE PHOTO SOURCE: ADAM PEARISO, LIFE CAPTURE STUDIOS (LIFECAPTURE.CA)
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // DECEMBER 2016
29
GIVING BACK: PART OF THE PETERS & CO. CULTURE // COVER
ABOVE: CHRIS POTTER, PRESIDENT AND CEO OF PETERS & CO. PHOTO SOURCE: EWAN PHOTO VIDEO
30
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
GIVING BACK: PART OF THE PETERS & CO. CULTURE // COVER
Giving Back: PART OF THE PETERS & CO. CULTURE THE ROLE OF CORPORATE AND INDIVIDUAL GIVING IS MORE IMPORTANT THAN EVER!
BY JOHN HARDY
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // DECEMBER 2016
31
GIVING BACK: PART OF THE PETERS & CO. CULTURE // COVER
T
his past year has, again, tested the cliché “when the going gets tough, the tough get going,” which makes this year’s Generosity of SpiritTM (GOS) Awards that much more special. An initiative of the Association of Fundraising Professionals Calgary & Area Chapter, GOS recognizes the many individuals, families, youth, groups and businesses who demonstrate the spirit of philanthropy through outstanding contributions of time, talent, leadership and financial support. It also provides the opportunity to acknowledge and celebrate these philanthropic leaders, including this year’s Small Business Philanthropist – Calgarybased Peters & Co. Ltd. There is unspoken consensus, especially in the energy sector and related industries and services, that Calgary’s good times and challenges have always been cyclical. And that Calgary has proven itself resilient and able to adapt. As Chris Potter, president and CEO of Peters & Co., points out, Calgary’s resilience and adaptability has always been partially business sense and partially the spirit of the people and the community. “Calgary is a city that is populated by a highly-entrepreneurial group of individuals. And many have been exposed to the cyclical nature that Calgary has been built around, and they have adapted. “It’s almost part of the community’s culture that, through good times and bad, they understand and value the opportunities that Alberta and particularly Calgary presents and a consistent willingness to give back and offer a hand-up. “What some people don’t grasp is that the attitude is so positive and different from a lot of cities,” he emphasizes with Calgary pride. “And it’s not only
32
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
business or economy related. Even during disasters like the flood, Calgary came together, rolled up sleeves and did whatever it took.” Peters & Co. is a much-respected, independent and fully-integrated investment dealer that has specialized in the Canadian energy sector for over 45 years, and Chris Potter has solid expertise and experience, dealing with the constant oil and gas sector cycles, in good times and challenging times. “Of course, cycles and trends have always been a predictable part of the energy sector and there are also common and predictable factors that cause the cycles. But there’s a consensus that this one is different, in various ways,” he points out. “It is deeper and wider than we’ve seen in a long time. Of course there’s the factor of commodity prices. There are also various regulatory, social and environment movements happening and, from an investor point of view, it’s all added additional uncertainty.
PETERS & CO. IS A MUCH-RESPECTED, INDEPENDENT AND FULLY-INTEGRATED INVESTMENT DEALER THAT HAS SPECIALIZED IN THE CANADIAN ENERGY SECTOR FOR OVER 45 YEARS, AND CHRIS POTTER HAS SOLID EXPERTISE AND EXPERIENCE, DEALING WITH THE CONSTANT OIL AND GAS SECTOR CYCLES, IN GOOD TIMES AND CHALLENGING TIMES.
||||||||||
||||
||||
ession Succ
||||
|| |||| |||| ||||
|||||| |||||| |||||| | | | | || ||||| ||||| ||||| | | | | ||||
Ma tu
re Pr ac
tic e
You’re looking out for their future. We’re looking out for yours.
|||||
|||||| |
|||||| ||||||
||||| |||||
|||||
||||| ||||
As a physician, decisions made today will have a significant impact on your future. That’s why MNP is committed to every stage of the professional cycle. From start up to succession, we are continually developing programs and strategies that ensure you’re always ahead of the curve.
|||| |||| ||||
| | || |||| |||||
||||| | || |
Contact Hall Murdoch, CPA, CA, at 403.536.5595 or hall.murdoch@mnp.ca
g
n ici t ac Pr
|||||
|||||||||
Student
|| | | | ||||| |||||| | | | | | || ||||||| |||||||| |||||||||| || | | || | | || | | || | ||||||||||||||||||||||
Professional Cycle DELIVERING MORE AT EVERY STAGE.
MNP.ca
|||||||||||||||||||||||||| |||||||
GIVING BACK: PART OF THE PETERS & CO. CULTURE // COVER
ABOVE: CHRIS POTTER, PRESIDENT AND CEO OF PETERS & CO. PHOTO SOURCE: EWAN PHOTO VIDEO
34
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
GIVING BACK: PART OF THE PETERS & CO. CULTURE // COVER
“Technology is tremendous. It has redefined the industry but unlocking technology has dramatically changed the cost structure of the oil and gas business. We don’t drill vertical wells. It’s much more capital intensive. There are enormous additional costs with new horizontal, multi-stage wells.
He is extremely energy-sector savvy, to-the-point realistic but genuinely upbeat about the recovery and the new normal. Like most of his peers, he cautions about overreacting to temporary positives and upticks and is confident about the true signs of a stable, sturdy recovery.
“In some ways, the crunch and the industry’s difficult times are having a positive effect,” Potter says with enthusiasm. “With the reduced revenues and cash, many companies are costconscious and cost-competitive. They are seizing the opportunity to squeeze out some excess costs that have become almost built in to the industry.
“The number one factor is stability in commodity prices. We have some of the best plays in North America. There will be increased capital investment when investors feel comfortable about prices and other things,” he cautions. “Of course, with each new government, there are additional taxation regulations and tax structures. Investors don’t take well to too many changes. They seek out other alternatives. Investors need to feel comfortable about consistent tax regulations and tax regimes.
“From the perspective of a lot of the capital flows, there is uncertainty about regulations and taxes. It has caused capital to pause, take a step back and perhaps be a bit more reserved for the moment, about investment in Calgary-based companies.”
“TECHNOLOGY IS TREMENDOUS. IT HAS REDEFINED THE INDUSTRY BUT UNLOCKING TECHNOLOGY HAS DRAMATICALLY CHANGED THE COST STRUCTURE OF THE OIL AND GAS BUSINESS. WE DON’T DRILL VERTICAL WELLS. IT’S MUCH MORE CAPITAL INTENSIVE. THERE ARE ENORMOUS ADDITIONAL COSTS WITH NEW HORIZONTAL, MULTI-STAGE WELLS.” ~ CHRIS POTTER
“But, the good news is that investors are looking from the outside in, and Canada still has lots of merits, especially economic and other stability. I think we have probably bottomed out and can expect recovery by mid-2017 and early 2018.” Potter professionally guesses the new normal will include the energy sector doing more with less; companies that are more effective and efficient about spending capital and what they get for the money. “Personally, I don’t think we’ll see the over-capitalization and cost escalations that we have experienced over the past 10 years.” That is then. This is now. And he underscores the unavoidable realities that although things are good in the Calgary area, the downturn has impacted various levels of Calgary life: business and the economy, of course, but also the job market, particularly downtown commercial real estate and more subtle and hard-to-document trickle-down effects on government support for the community.
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // DECEMBER 2016
35
GIVING BACK: PART OF THE PETERS & CO. CULTURE // COVER
“We’re close but I don’t think we’re done yet,” he cautions. “There is sadly lots of job losses, reduction in business revenues and profit losses and, at the community level, more and more Calgarians need a helping hand.
through charitable donations but also with volunteer time to worthwhile causes such as the Alberta Children’s Hospital Foundation. The company has also been a vital partner of the United Way of Calgary and area for more than 28 years.
“The practical reality is that agencies and charitable organizations also need more help. The donation flow has decreased and the government can no longer just step in and fill the void.”
“We encourage all our staff and we have 100 per cent participation,” the high-energy business executive and busy father of four adds with pride. “Our donation is genuinely ‘on behalf of everybody.’”
Potter explains that although it would be ideal to measure donations as companies do with other investments, it’s tough – if not impossible – to measure ROI on corporate philanthropy. Every situation is different, there is no business model and it is impossible to measure numerically.
POTTER EXPLAINS THAT ALTHOUGH IT WOULD BE IDEAL TO MEASURE DONATIONS AS COMPANIES DO WITH
“The role of corporate and individual giving is more important than ever!” He explains Peters & Co. has been a private entity for 45 years and giving back has been part of the company culture. “It’s a philanthropic ideology, and it has been passed down through the generations of Peters & Co. partners and staff.”
OTHER INVESTMENTS, IT’S TOUGH – IF
Peters & Co. supports and participates in Calgary’s community-based charitable activities, not only
TO MEASURE NUMERICALLY.
NOT IMPOSSIBLE – TO MEASURE ROI ON CORPORATE PHILANTHROPY. EVERY SITUATION IS DIFFERENT, THERE IS NO BUSINESS MODEL AND IT IS IMPOSSIBLE
ABOVE: ROB SCOTT, CHRIS POTTER, JEFF LAWSON, BRYCE WILLIAMS AND JEFF MARTIN
36
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
Currently under construction. Unique opportunity to own your medical/office space.
Only two floors remaining!
EXCEPTIONAL DESIGN. EXTRAORDINARY TENANT EXPERIENCE. Arlington Street Investments is the destination for exceptional live, work, play urban experiences. Our developments are thoughtfully designed, revitalize and enhance the neighborhoods in which they are built and set a new standard for architecture and design. Leasing and Office Condo Purchase Inquiries: kerri.mcgrath@arlingtonstreet.ca Investment Inquiries: kerri.mcgrath@arlingtonstreet.ca
ASFS invests into our students who are distinguished by their ability to overcome adversity and their commitment to achieving greatness. 403.266.5000
WWW.ARLINGTONSTREET.CA
https://www.arlingtonstreet.ca/our-foundation/
MOVING. PICTURES.
THINK He gets the job done. Seamlessly. From initial concept to final edit, Ewan has got you covered. He creates imagery that tells the story. Your story? Absolutely. Get it all. Hire Ewan. ewan.ca
PHOTOVIDEO
THE OCCUPATIONAL SECOND CHANCE // CONTINUING EDUCATION
The Occupational Second Chance COURSES ARE CONSTANTLY CHANGING BY PARKER GRANT
C
ontinuing education (CE), particularly in Calgary’s extremely changeable job market, is fascinatingly fluid and flexible.
While constantly shifting trends always impact options in education and continuing education, the supply-and-demand aspects of CE options in the Calgary area are much different from other Canadian job markets. The basics of properly targeting education and skills for the workplace are layered with special speed bumps (such as the current recession) to compound the target of CE options in popular and respected Calgary CE facilities like the Haskayne School of Business at the University of Calgary and Bow Valley College. Specializing or generalizing (or a combination of both) has always been a CE dilemma. In a dynamic job market, people may need to be both a generalist and specialist to remain marketable to potential employers. CE courses are a popular option to help build on existing knowledge
and learn practical skills to find a new career or advance a career-in-progress. Technology continues to revolutionize continuing education – particularly online learning. As today’s adult working students have full-time jobs, schoolwork and volunteer obligations, not to mention family and social commitments, online CE learning is a good solution. Another edge of online CE is participants can select courses suited to specific needs; not a classroom location. One of the newest CE buzzwords is intrapreneurship skills – the ability to approach problems inside a company with an entrepreneurial outlook. Workplace trends show many large and small employers are hiring managers who can solve company problems by utilizing an entrepreneurial mindset. Whether it’s the Calgary-downturn necessity of alternate careers, or the social trend of the economy making the clichéd freedom 55 – or even freedom 65 – a dated concept and sparking people to reconsider retirement plans, people are in need of continuing education and acquiring new skills.
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // DECEMBER 2016
39
THE OCCUPATIONAL SECOND CHANCE // CONTINUING EDUCATION
“We had been seeing significant growth in all our program offerings since before the recent downturn, so it is hard to separate out the effects of the economy from our current growth curve and increased profile in the Calgary community,” says David Allwright, dean of the Chiu School of Business at Bow Valley College. “Demand for CE has certainly increased over the past two years. The focus has been towards industry certification across a range of industries and subjects; especially courses related to supply chain management, digital marketing, project management, as well as finance and accounting, have shown significant growth. Personal development courses, like leadership skills, have also stayed strong.” In the past year or so, people are focused on CE for retraining and switching careers. And whether it’s the specific Calgary job market situation or a social trend, there is a subtle shift from degree or diploma programs to acquiring new skills, upgrading and certification. “There is definitely a noticeable trend for a desire to create fill-in knowledge and get certificates, as add-ons to qualifications they already have” says Sheila LeBlanc, director of continuing education for the University of Calgary. “About 60 to 80 per cent of CE students already have a degree. Just as an example, someone with a marketing degree from the ’90s, before technology happened, are bundling courses into a certificate series. “As recently as last year, we started noticing the impact of the economy. There was a downturn in various supervisory training programs, especially among students who were getting employer funding. But this year, some other courses are taking off, like project management, business intelligence and analytics. “And with the growing interest in people refocusing their career, we have added some courses to fill the niche, like encore careers: creating a second act with purpose and passion and career renewal and resilience.” At Calgary’s world-renowned Haskayne School of Business – home of distinguished executive and MBA programs – continuing education trends are also impacted.
TOP: DAVID ALLWRIGHT, DEAN OF THE CHIU SCHOOL OF BUSINESS AT BOW VALLEY COLLEGE BOTTOM: SHEILA LEBLANC, DIRECTOR OF CONTINUING EDUCATION FOR THE UNIVERSITY OF CALGARY
40
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
THE PRINCIPLES OF MANAGEMENT W
hat do Calgary business leaders need to succeed today? A precise grasp of financial statement analysis? Creative approach to data segmentation? In-depth knowledge of Alberta’s oil and gas landscape? At St. Mary’s University, they have a different answer: a little Plato wouldn’t hurt. St. Mary’s, located on the edge of Fish Creek Provincial Park in the city’s southeast, encourages students to create a socially-just world based on sound moral and ethical principles and to develop the courage to stand up for what they believe in. And that’s an educational proposition that’s increasingly compelling in today’s business landscape, where companies are under pressure not just to appear good but to actually behave in a socially-positive manner; where equality and diversity are increasingly in the spotlight; and where creating an authentic community is the required groundwork for building economic success. The fundamentals of leadership, communication and critical thinking are central to the liberal arts education that St. Mary’s offers to students of all faiths and traditions. Thanks to small class sizes (an average of about 25), there is none of the anonymity associated with huge lecture halls. Instead,
students are encouraged to engage in informed debate with their professors and peers and to examine the strength and validity of their own ideas within the context of the 2,500 years of philosophical and theological thought that constitutes the Catholic intellectual tradition. Graduates of St. Mary’s emerge with the ability to think independently, communicate clearly and act with conviction. When asked about the prospects of liberal arts graduates in the workplace, student services VP Bob Hann says, “St. Mary’s graduates have been having great results out in the ‘real world.’ After all, for many employers the ideal co-worker is someone who is a confident communicator and can make principled decisions. That’s basically the business we’re in.” St. Mary’s University provides interested students with an introduction to management studies situated within the breadth and depth of a liberal arts education; a minor in management is offered to those registered in certain of the institution’s eight bachelor of arts degrees or its bachelor of science degree. St. Mary’s also offers a bachelor of education (elementary) after degree – one of the fastest growing such programs in the province – and transferable university courses in 35 academic disciplines. The year 2016 marked its 30th anniversary.
14500 Bannister Road SE • Phone: (403) 531-9130 • Fax: (403) 531-9136
stmu.ca
THE OCCUPATIONAL SECOND CHANCE // CONTINUING EDUCATION
looking to gain an edge in the job market aren’t necessarily looking for another academic credential that could take years to obtain. They want to be able to fine-tune or focus their skills.” Seasoned CE professionals agree: regardless the trigger of the changes, CE continues to be a ferociously popular and indemand work-in-progress. Working people at all levels, and in all stages of careers, in just about any industry in Calgary (and throughout Canada), agree they strongly rely on CE, because there is a huge gap between the training required to move up the career ladder and the training provided by their employers.
“Many students are coming not for academic credit or even formal certification,” according to Hugh Evans, director of executive education at Haskayne. “They express a need to learn about supply chain, business innovation, finance or a need to understand the numbers, cost values or how to negotiate better. It’s all about performance as an expected outcome, not doing courses from a CV (curriculum) perspective. “Haskayne offers certificates of completion and they are popular,” he says. “They acquire the skills and have pride in completing a business program. One of our courses, business essentials, has doubled in size in the past 12 months. It’s popular with engineering, finance [and] salespeople. They have become more valuable in their career by understanding management systems; improving their portfolio systems from a career perspective. The others are students who may be in a company but looking ahead to the future; their foundation of skills to possibly change careers or maybe form their own business.” “There is a definite demand for shorter-term courses and certification,” Allwright adds. “Many people currently
A recent survey found that while 71 per cent of employers agree they have a responsibility to provide career management programs for their employees, due to the economy or slumping job markets, only 29 per cent actually offer them. Continuing education is closing gap in skills improvement and training needs. According to a recent Conference Board of Canada report, as much as $24.3 billion in economic activity is lost annually because employers can’t find people with the right skills to innovate and grow in today’s economy. It’s not only a massive lost opportunity for Canada but gives CE providers unlimited ideas and options. As one random example, a report by Engineers Canada shows there are not enough engineering graduates to fill positions being vacated by retiring senior engineers. The report recommends better inter-provincial mobility of senior engineers and better support for internationally educated engineers and traditionally under-represented groups. CE can be customized to ensure the engineering sector is able to keep pace with the world’s engineering needs. For many, particularly in the Calgary job market, by personal choice or unexpected circumstance, continuing education is proving to by a dynamic, constantly changing and popular occupational second chance.
ABOVE: HUGH EVANS, DIRECTOR OF EXECUTIVE EDUCATION AT HASKAYNE
42
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
Creating beautiful, healthy smiles is what we do! Five full-time hygienists Open lunch hours and early mornings Call today for your consultation and your start to a more beautiful smile. An amazingly convenient location you can walk to from your urban home or office, saving you valuable time and money. If you choose to drive, dedicated parking is available!
General Dentistry
DOWNTOWN DENTIST • Cosmetically related dental services • Emphasis on Prevention • General Dentistry • Tooth Whitening • New Patients & Emergencies Welcome • Direct Billing of Insurance Plans Conveniently located under the Calgary Tower, 430 Tower Centre, 131-9 Avenue SW
403-265-3146 | www.drgalan.com
“A WILD EVENING WITH DAVE
SO FIRMLY IN HIS ELEMENT." - LOUIS B. HOBSON
"DAVE KELLY LIVE
IS A SMASH.” - CALGARY HERALD
“I WOULD SUGGEST
JIMMY KIMMEL
AND JIMMY FALLON
HAD BEST KEEP AN EYE IN THE REAR-VIEW MIRROR.”
- BILL BROOKS
“THE
PERFECT
CELEBRATION
OF OUR CITY.”
- DOUGLAS MAPLETHORPE
“NOBODY MIXES
HUMOUR AND HEART
LIKE DAVE.” - LESLEY MCKERVEY
EPISODE #10 / JACK SINGER CONCERT HALL / DECEMBER 10, 2016 EPISODE #11 / THEATRE JUNCTION GRAND / FEBRUARY 14, 2016 EPISODE #12 / THEATRE JUNCTION GRAND / APRIL 5, 2016
TICKETS AT DAVEKELLYLIVE.COM
TOC
Page 1 - What if Lower for Longer is True? - Part III Page 4 - Answering the Call Page 6 - BOMA Insider Page 9 - Out of Business or Opening Soon?
NEWS WINTER 2016
By Sandy McNair
N
What if Lower for Longer is True? - Part III Succeeding in both hot and colder business climates
ot long ago, for many people, Lower for Longer referred to interest rates. Today for many Canadians and most every Albertan Lower for Longer is an even more compelling reference to oil prices and in turn business and consumer confidence as well as growth rates. That is, the rate of growth of the economy, the local population, the participation rate and the employment rate. With implications across Canada, Alberta’s, Saskatchewan’s and Newfoundland’s economic performance has shifted from being one of Canada’s key growth engines and performance leaders to the other end of the continuum. For those in the commercial real estate market, Lower for Longer may also be a comment on future rents. In this article we will explore several future scenarios by taking a close look at our history for lessons with
potentially surprising outcomes for our commercial real estate markets.
Back to the Future – Any Useful Insights and Lessons from 1982?
Between 1979 and 1983 Calgary experienced a growth spike of magical proportions. During those frenzied five years, the total inventory of office space in Calgary more than tripled. In 1981 more than six million square feet was completed. In each of 1979, 1980 and 1982 more than four million square feet was completed with slightly less than four million square feet completed in 1983 for a five-year total of 23.8 million square feet. That’s more than what has been or will be completed in the 11 years from 2007 to 2017.
1
BOMA Calgary News
BOMA Calgary News is a co-publication of BOMA Calgary and Business in Calgary.
Business in Calgary
1025, 101 - 6 Ave. SW, Calgary, AB T2P 3P4 Tel: 403.264.3270 • Fax: 403.264.3276 info@businessincalgary.com www.businessincalgary.com
BOMA Calgary
120, 4954 Richard Road SW, Calgary, AB T3E 6L1 Email: info@boma.ca • Web: www.boma.ca Tel: 403.237.0559 • Fax: 403.266.5876
Communications Committee Leah Stewart, Chair, Sizeland Evans Interior Design Carly Chiasson, Vice-Chair, Bee Clean Building Maintenance Kelsey Johannson, TransCanada Corporation Jon Holmes, Camfil Canada Inc. Lisa Maragh, Strategic Group Danielle Smith-Deveau, Strategic Group Christine White, Oxford Properties Group Aydan Aslan, BOMA Calgary
Board of Directors
CHAIR Chris Nasim, GWL Realty Advisors CHAIR-ELECT Lee Thiessen, MNP LLP SECRETARY TREASURER Richard Morden PAST CHAIR Ken Dixon, Strategic Group
Directors
Dustin Engel, Alberta Infrastructure Corrine Jackman, Hopewell Real Estate Services Jay de Nance, RioCan Management Inc. Steve Walton, Oxford Properties Group Todd Throndson, Avison Young Guy Priddle, Cadillac Fairview Marina Nagribianko, Allied REIT Rob Blackwell, Aspen Properties
The Building Owners and Managers Association of Calgary publishes BOMA Calgary News quarterly. For advertising rates and information contact Business in Calgary. Publication of advertising should not be deemed as endorsement by BOMA Calgary. The publisher reserves the right in its sole and absolute discretion to reject any advertising at any time submitted by any party. Material contained herein does not necessarily reflect the opinion of BOMA Calgary, its members or its staff. © 2015 by BOMA Calgary. Printed in Canada.
2
On a Friday in February of 1982 Calgary’s boom ended. Expectations of $60 per barrel oil were crushed and eventually met a $10 per barrel reality. Expectations of the then current interest rates of 16 per cent shifted from declining to increasing. By August of 1982 interest rates reached 21.75 per cent. In addition, the federal government’s national energy program shifted from being a remote risk to a reality. Until 1982, exploration was a key engine within the energy industry. At that time the hunt for energy included exploratory drilling in the Arctic and elsewhere. By comparison today’s energy industry is driven by mining, horizontal drilling and other emerging and breakthrough technologies. A candid look at the energy industry’s current and near-term opportunities will include a new-found and missioncritical focus on cost control to match market prices, net of delivery to market costs, even better use of technology as well as environmental stewardship, credible monitoring and compelling communication initiatives. During the 11 years of 2007 through 2017, Calgary has and will continue to experience another spike in new supply of office space. Perhaps surprising to some industry participants, taking a deeper look at the facts reveals much. While significant, this 11-year cycle has been much less frenzied with less than three million square feet per year being completed and being delivered into a much larger marketplace. Also of note is that 10 million square feet, almost half of the total, has been completed in the beltline and suburbs, shifting the breakdown of total inventory for downtown/beltline/ suburbs to 62/12/26 per cent from a breakdown of 64/12/24 per cent in 2006 and a breakdown of 67/12/21 per cent in 1999. Being human, we all have built-in survival strengths and a few weaknesses. Straight-line thinking is one of those built-in weaknesses. When things are good, like the economy, we expect them to get even better. And our natural predisposition is that a weak economy will get worse. Perhaps this is left over from the fight-or-flight imperative with natural selection over thousands of years favouring flight. In any event most of us do not see the corners in advance. One of the key lessons from 1982 in Calgary is that following the downturn, a bottom is found, but too often straight-line thinking delays and impairs the shift in confidence that contributes to the economy moving ahead. This pattern will likely repeat. Calgary specifically and most of Canada have the highly-skilled people with “can-do attitudes and cultures” who will pivot and eventually generate new and compelling opportunities.
Alternate Scenarios for the Future
No one can know with precise timing what the future will bring. There are so many variables and way too many potential combinations of local, national and global outcomes to know clearly what will happen next. What we can do is prepare for a range of different futures and scenarios. Stress test. Listen. Think. Here is but one simplified example of looking at several future scenarios. Perhaps it will inspire you to think about your properties’ and portfolios’ futures. We would welcome the opportunity to contribute to your processes and thinking. To help inform each of the forecasting scenarios in the graphic on the opposite page, we have reviewed the 10-year change in leased area (sometimes referred to as absorption) data. The 10-year average for Greater Vancouver is 494,000 square feet with the single year high at almost 1.87 million square feet and the single year low at 1.61 million square feet. For Calgary, the 10-year average is 973,000 square feet with the single year high at nearly 4.94 million square feet and the single year low reaching 3.13 million square feet. While these outliers are single year results they reinforce the need to
2,500,000
Vancouver Market - Change in Leased Area Forecast
18%
1,500,000
Q3 2016 11.1%
1,000,000
12.1% 8.6%
12% 10% 8% 6%
Vacancy Rate (%)
Inventory Growth - SF
15.6% 16% 13.8% 14%
2,000,000
4%
500,000
2%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inventory Growth No Growth (0 SF) Modest Growth (500,000 SF)
4,000,000
Availability Rate Modest Reduction (-250,000 SF) Significant Reduction (-500,000 SF)
Calgary Market - Change in Leased Area Forecast 31.4%
Inventory Growth - SF
3,500,000
Q3 2016 22.4%
3,000,000 2,500,000 2,000,000
25.8%
35% 30% 25%
23.0% 20% 20.2% 15%
1,500,000
10%
1,000,000
5%
500,000 0
0%
Vacancy Rate (%)
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inventory Growth No Growth (0 SF) Modest Growth (500,000 SF)
look at multiple scenarios as it is unlikely the next five years will resemble the average of the past 10 years.
Preparing to Win or Waiting for …?
Those who win big, really big, have a pattern of becoming very busy and focused when others are
0%
Availability Rate Modest Reduction (-500,000 SF) Significant Reduction (-1,500,000 SF)
slowing down, or even hiding while waiting for confirmation of the next upward trend. Those who seek to outperform their peers will be well served to take a similar approach.
SANDY MCNAIR IS THE DATA CURATOR OF ALTUS DATA SOLUTIONS, A DIVISION OF ALTUS GROUP. IN JANUARY 2016 ALTUS INSITE, REALNET AND SEVERAL OTHER BUSINESSES AND TEAMS WITHIN ALTUS GROUP WERE INTEGRATED TO FORM ALTUS DATA SOLUTIONS. SANDY.MCNAIR@ALTUSGROUP.COM
3
By Lloyd Suchet, Executive Director, BOMA Calgary
Serving Alberta since 1985
General Contractors and Project Managers
www.akelaconstruction.com 4
A
Answering the Call
s a society, we have made remarkable strides over the last decade in understanding our effect on the environment around us, and developing innovative ideas to lessen our impact. As customers have demanded more sustainable products, and as governments have developed more stringent environmental policies, a wide array of industries have answered the call. In 2005, the commercial real estate industry in Canada recognized that commercial buildings have an important role to play, and developed a unique, voluntary program designed by industry for industry. That program is BOMA BEST®, and with over 5,000 buildings certified since 2005, it is Canada’s largest environmental assessment and certification program for existing buildings. BOMA BEST® has been so successful because it focuses on the things a building manager can control by providing a consistent framework for assessing the environmental performance and management. BOMA BEST® buildings submit an assessment that is subject to an onsite third-party verification, and are then certified to a level based on their score for three years before they must re-certify. But it doesn’t end there as BOMA BEST® is designed to promote continuous improvement, and indeed the data shows that nearly a quarter of BOMA BEST® re-certifications obtain a higher level. The ability for existing buildings to actually improve their environmental performance as they age is an important achievement that cannot be overstated. While new and high-performing buildings are impressive in the way they use new technologies to lessen their environmental impact, they only make up a small proportion of building stock. This means we can make a huge impact by promoting the continual improvement of our older buildings, and this is a task BOMA BEST® is uniquely suited for. The results so far speak for themselves – since 2008, BOMA BEST Bronze and higher buildings have seen a 15 per cent decline in energy use intensity. Here in Calgary, BOMA BEST® buildings not only have a leg-up in controlling energy costs as the provincial carbon tax comes into effect, but they also have a tangible impact on the tenant. Being that we spend about 90 per cent of our time indoors, it should bring comfort to tenants that BOMA BEST® buildings are being proactively managed to create cleaner, healthier working spaces. In fact, last year the Journal of Portfolio Management published a paper showing BOMA BEST® certified buildings in Canada have higher levels of tenant satisfaction. Given the way BOMA BEST® promotes lower energy and water use, cleaner indoor air, better waste diversion and so on, these results should come as no surprise. So next time you walk into a building, look for the BOMA BEST® logo on the doors or in the lobby and appreciate that those building owners and managers have shown a real commitment to a more sustainable built environment.
they
Cleaning Services | Sanitization Plus Program | Carpet Cleaning | Window Cleaning | HVAC | Technical Trade Services & Energy Management Project Services | Disaster Recovery
Stuck for the perfect gift? we got this. Give the gift of clean. *GIFT CERTIFICATES AVAILABLE IN $50 INCREMENTS
*MAIDS
*CARPET
servprocleaning.com |
*WINDOWS
*FURNACE
| 403.520.7777
Maid Service | Carpet Cleaning | Furnace & Duct Cleaning | Window Cleaning | Specialty Cleaning
5
BOMA Insider Welcome New BOMA Member Companies! PWM Loss Prevention Services Inc. - Tony Headley Armour Equipment - Charles Maygard A.S.P. Residential Services Inc. - Gregg Cross Starlight Lighting Centre - Andrew Apedoe
Morguard team accepts their BOMA BEST certificate on Gold Level for 505 Third Street SW
Golf Classic Co-Title Sponsor
34 Annual BOMA Golf Classic sold out in 5 minutes and raised $14,695 for the BOMA Calgary Foundation! Special thanks to our Golf Committee and many fantastic sponsors who made it all possible! th
Real Properties team accepts their BOMA BEST certificate for AMEC Place
Warren Paulsen & Elton Ma from Brookfield Residential were our guest speakers at the BOMA October Luncheon 6
The BOMA Calgary Golf Committee at the 2016 ENMAX BOMA Golf Classic at Priddis Greens
BOMA Calgary members at the BOMEX 2016 Gala in Regina
5
susta i
dership ea
5 years of
bility l na
A Global Leader in Sustainable Property Investing
Bentall Kennedy ranked 1st globally among its peer group in the 2015 Global Real Estate Sustainability Benchmark (GRESB)
7
Stephan Poirier, Sr. VP & Chief Commercial Officer at the Calgary Airport Authority was our guest speaker at the BOMA September Luncheon
2014 BOMA Canada National Pinnacle Award - Customer Service
403.263.8170 8
www.SerVantage.ca
Colliers team accepts their BOMA BEST certificate on Silver Level for 8 West.
By David Parker
Out of Business or Opening Soon?
O
Downtown street-front retail is at 20 per cent, thanks ne has to commend Calgary Economic Developsomewhat to fewer people working downtown and the ment (CED) on its enthusiastic approach of trying tough selling job for street-front spaces like Eighth Aveto persuade corporate headquarters and branch nue Place where bicycle lanes impede deliveries, but at plants to Calgary. Working with $2 million from Alberta top performing power centres it is virtually zero. Economic Development and Trade and $1 million from Southcentre has welcomed a massive 44,000-squareWestern Economic Diversification Canada, the campaign foot Sporting Life, the first in Western Canada, and a will target the key sectors of agribusiness, transportasecond location is planned for the former Target space tion and logistics, renewable and clean energy tech, in Market Mall. financial services and creative industries. We look forward to Simons Department Store opening A good result would bring huge economic benefits to in the Lancaster Building along Stephen Avenue Mall and the city, but I wonder how CED expects to achieve the the huge Saks Fifth Avenue that is taking 116,000 square results. I suggest another approach would be to ensure feet on two levels of Chinook Centre. the ones already here are able to sustain their businesses. Add to these the 50,000-square-foot Cineplex Rec Room Too many are shutting down due to the cost of doing at Deerfoot City, two new MEC stores, the large new Bank business in Calgary. We all love the city, but higher assessof Nova Scotia branch, as well as 200,000 square feet of ments, rent increases, city hall development delays and office space in the well underway Brookfield Place – and increases in minimum wage equals tough times for many. there is some bright spots on the horizon. Escoba Bistro & Wine Bar’s website now says: “Out of business due to the challenging economic climate in Alberta, worsened by our civic, provincial and federal governing bodies.” BoConcept, the Danish design store on 11th Avenue SW, has posted it is leaving town. I’ve been told the Social Page on the corner of 8th Street and 10th Avenue is also closing. One of CED’s targets is the creative industry, yet Marketing magazine reports Travel Alberta has hired DentsuBos, a Toronto-based agency with no offices in the West, Calgary’s new Building to help attract more Asian tourists to Maintenance Bylaw will help the province. We have exceptional creative talent in this province – and building owners prevent they must be given opportunities to the risk of debris falling work for government agencies. from buildings. But the good news is companies are still coming. Do you own or operate a At the recent very well-attended building that is five storeys NAIOP Real Estate Market Update breakfast, Bernie Bayer of Taurus or taller? What you need Properties reported that although to know: rental rates in strong suburban calgary.ca/ shopping centres are flat, the overbuildingmaintenancebylaw all retail vacancy is estimated to be 2016-2430 only at four to five per cent.
What goes up shouldn’t come down.
9
The Good (and the Bad) of Doing Business in Calgary Insights from local entrepreneurs
Let’s Ask an EOer
By Melanie Darbyshire
A
s a place to live, Calgary is one of the best. Quality education, health care, cultural, environmental and infrastructure offerings have made it a place many want to hang their hat – even with oil prices in the $50 range. It is considered, in fact, as the fifth most livable city in the world by the Economist Group’s Intelligence Unit. So how does Calgary rank as a place to do business? To find out, we’ve picked the brains of three successful business people, who are also members of Entrepreneurs’ Organization. Neil Bailey is the general manager of Lynn Donaldson & Associates; Tanya Eklund is a real estate agent and managing partner of Tanya Eklund Group; and Dave Isaac is the president of Shield Industries Ltd. Eklund says one of its strengths is Calgary’s position as a business and transportation hub. “Calgary is an international hot spot for business. It is easily accessible with our international airport which has recently expanded to accommodate more international flights and population.” She notes the multitude of industries thriving in the city, and the many head offices here. “Not only do we have the global energy industry but we possess industries such as film, technology, manufacturing and finance.” To Bailey, it’s the people that make Calgary a great place to do business. “What makes this city remarkable is the amount of people willing to help,” he says. “Everybody wants you to succeed. It’s a very supportive atmosphere for virtually any type of business.” He credits this attitude, in part, to Calgary’s size. “Calgary’s always been coined as the ‘biggest town.’ Your reputation in this city is key. If you’re one of the smart ones and do what you say, people will support you.” Isaac agrees, “Calgary’s people care about Calgary. This city has surprised all on how Calgarians can show support, tenacity and love for one another.”
The city’s educational and training programs are another strength. “There are many different programs and opportunities available for everyone,” Isaac says. “From what I can see and have participated in, the staff and programs are top quality.” Both Eklund and Bailey agree with the latter noting apprenticeship programs as another strength. “If you want to learn, it’s a pretty good place to be. Whatever you want access to is here.” Far from perfect though – as the recent oil-based recession has so painfully established – Calgary does pose some challenges for its businesses. Chief among these is the primacy of oil and gas to our economy – albeit a strength when prices are up. “It is a pretty grim situation,” Isaac admits. “We have to acknowledge that we’re in a market share and price war in the energy industry. You can’t do anything about it. That’s the reality so we need to react accordingly.” For Bailey, this reaction should be led by the provincial government, whom he believes is going in the wrong direction. “The carbon tax, the increase in the minimum wage – those are the things that really have people on edge.” Eklund highlights other challenges such as the high vacancy rate, the current lack of investment in Alberta and some issues that plague developers. “[There are] challenges with time frames to acquire permitting for construction.” She says the City of Calgary is working to expedite turnaround times. She sees the current challenges as an opportunity for diversification. “We are working on strategies to keep our current talent and find ways to promote new industry entering the city.”
Contributing Members:
Upcoming Events: Dec 1 • Ugly Christmas Sweater Social Dec 7 • Leadership Breakfast
Tanya Eklund
Dave Isaac
Neil Bailey
managing partner of Tanya Eklund Group
president of Shield Industries Ltd.
general manager of Lynn Donaldson & Associates
Dec 15 • Tanya ChernovaThe Neuroscience of Success
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
Leading Business DECEMBER 2016
IN THIS ISSUE... • Policy Bites: What You Need to Know About the New Extractive Sector Transparency Measures Act (ESTMA) and How it Could Affect Your Business • A Look Back with Ted Mills • Member Profiles
CalgaryChamber.com
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // DECEMBER 2016
55
2016 Board of
Directors Executive Chair: Denis Painchaud, Director of International Government Relations, Nexen, a CNOOK Limited Company
Policy Bites: What You Need to Know About the New Extractive Sector Transparency Measures Act (ESTMA) and How it Could Affect Your Business
Past Chair: Rob Hawley, Partner, PricewaterhouseCoopers LLP Vice Chair: David Allen, Founder & President, Situated Co. Treasurer: Wellington Holbrook, Executive Vice-President, ATB Financial CEO: Adam Legge, President and CEO, Calgary Chamber
Directors Bill Brunton, Vice President of Marketing and External Relations, Habitat for Humanity, Southern Alberta Carlos Alvarez, Audit Partner, KPMG Lorenzo DeCicco, Vice-President, TELUS Business Solutions Phil Roberts, President, Vintri Technologies Linda Shea, Senior Vice-President, AltaLink Mike Williams, Executive Vice-President, Corporate Services, Encana James Boettcher, Chief Idea Officer, Fiasco Gelato Brent Cooper, Partner, McLeod Law LLP Desirée Bombenon, President & CEO, SureCall Contact Centres Ltd.
Starting in June 2017, if you are in the Canadian commercial oil, gas or mineral extraction business, and make any payments to an Indigenous government in Canada, your company will be affected by the Extractive Sector Transparency Measures Act (ESTMA).
What is ESTMA ? ESTMA (the act) was developed in June 2015, to deliver on Canada’s international contribution to the G8 anti-corruption efforts to increase transparency, by requiring all extractive entities to essentially publish publicly what they pay to any government within Canada or abroad. Governments include any Canadian and foreign governments at all levels, including indigenous governments, as well as boards, corporations, commissions and trusts. ESTMA obligations come with heavy fines for any non-compliance, and give little freedom for industry to challenge. In Canada, Natural Resources Canada (NRCan) is the responsible regulator, and has issued guidance for business on reporting rules.
Management Adam Legge – President and CEO Michael Andriescu – Director of Finance and Administration Kim Koss – Vice President, Business Development and Sponsorship Scott Crockatt – Director of Marketing and Communications Rebecca Wood – Director of Member Services Justin Smith – Director of Policy, Research and Government Relations Leading Business magazine is a co-publication of the Calgary Chamber and Business in Calgary Calgary Chamber 600, 237 8th Avenue S.E. Calgary, Alberta T2G 5C3 Phone: (403) 750-0400 Fax: (403) 266-3413 calgarychamber.com
How Will the Act Affect Your Business? Due to the number of resource-based projects that extend on to indigenous land in our country, a strong relationship between First Nations communities and industry has been extremely important in order for projects to move forward. Increased transparency will benefit companies and communities in Canada, and those Canadian companies operating abroad, by allowing access to what types of compensation have been provided to governments in similar circumstances. Without transparency, resource companies that make legitimate, but undisclosed payments to governments could potentially be accused of contributing to the conditions that allow corruption to thrive within government.
There will be some costs in terms of getting payment transparency public, because while it seems the act will sync with organizational internal accounting and financial reporting, there are some differences in what the act asks for, and how companies manage things on the financial side; expertise from lawyers and accountants will be likely, and the Chamber can recommend some.
Implications of the Act – Legal, Environmental, Sociopolitical As some indigenous communities feel the legislation may extend too far, NRCan has deferred the act until June 2017, while consultations take place. Some exemptions or concessions will have to be negotiated. NRCan has been clear that it hopes the trust and goodwill that has been built up in recent years with Canadian First Nations communities will not be at risk. Exploration and mining can potentially cause environmental damage to First Nation land. Impact benefit agreements are used to minimize any negative impact by defining and
56
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
evaluating impacts, then offsetting, by providing benefits and compensation to affected peoples. Without context, the publication of this financial information could result in inaccurate and perpetuated prejudice, or governments cutting funding to Indigenous communities.
Companies need to be careful and prepared to address the act moving forward, register on time and follow guidance provided online. This act will likely open a Pandora’s box of lawsuits, but stay tuned for the new year to find out while NRCan attempts to iron out the wrinkles.
A Look Back with Ted Mills This year, the Calgary Chamber celebrates its 125th anniversary. As we close on 2016, Ted Mills, former Calgary Chamber general manager, gives an historical look back on his time at the Chamber, and what Calgary looked like 35 years ago. There are many differences, but also many parallels to today; the work of the Chamber and the issues facing our business community remain remarkably consistent. When I became part of the Chamber staff in the fall of 1981, the Chamber owned its own building – a four-storey heritage structure on the northwest corner of 6th Avenue and Centre Street. We had just paid off the mortgage on our building, and were probably the wealthiest Chamber in the country at that time. Because of the many different sizes and types of facilities within the Chamber building, we organized gatherings of members to discuss a wide range of topics, and held breakfast and lunch meetings almost every day in the rooms adjacent to the Commerce Club (a business club operated by the Calgary Chamber). We held one major Chamber event each month with a highprofile speaker. These luncheons took place in the Calgary Convention Centre, and usually attracted about a thousand people. Speakers were often premiers of other provinces who talked about issues they faced that were different than those in Alberta, and about how they were dealing with them. When I started at the Chamber, Calgary’s population was about 700,000 and growing rapidly. In addition to being known worldwide as “Cowtown,” Calgary was quickly becoming the hub of Canada’s petroleum industry. Downtown Calgary was a rapidly developing sea of highrise buildings to be filled with mostly oil company personnel. Two business clubs epitomized
Calgary’s agriculture and petroleum elements: the Ranchmen’s Club and the Petroleum Club. The city was also developing rapidly in anticipation of hosting the 1988 Winter Olympics. Canada Olympic Park, the Olympic Plaza and the Saddledome were new features in town. In mid-1982, an economic downturn hit Calgary and put the spurt in downtown building construction on hold for several years. It was a challenging time. The Alberta government began to emphasize industry diversification. The Calgary Chamber became very prominent in the movement toward diversification. The Chamber worked to foster a sense of teamwork in the Calgary business community. Our board identified the issues that were most important. We had 12 major committees composed of active Chamber members that dealt with all of BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // DECEMBER 2016
57
A Look Back
Continued
the major business issues. The committee meetings covered all the current topics and issues that needed discussion in Calgary business circles at that time. We developed announcements and publications that were a reflection of the feelings of our members and also outlined what we felt were the best solutions to the various problems the business community faced.
with technicians before we could use it proficiently. We also engaged a local public relations firm to design a new logo, and to begin development of a Chamber newsletter for regular distribution to all members. Combined with the new logo, our visual status in the community took on a new life consistent with the rapidly-developing, highly-active business community Calgary was becoming.
We worked closely with the University of Calgary, the Stampede, the city administration, the provincial government and many business groups. The Chamber at the time was the centre point for the important discussions that took place in our city.
Then and now, the importance of the Chamber of Commerce can’t be overstated. It is the vital centre point of the business community, a place which all businesses can call home and a source of important information during changing times.
In the midst of the downturn, a group of six prominent Calgary businessmen (including at least one former Chamber president) purchased the Atlanta Flames hockey team, and brought them to Calgary as the Calgary Flames, thus launching Calgary into the National Hockey League. Calgary was now clearly moving in new directions associated with sport and with a broader, more diversified economy.
Ted Mills’ career began in banking and manufacturing. He then went on to enter politics, as the executive director of the Alberta PC Party, later becoming clerk of the Executive Council under Premier Peter Lougheed. Mr. Mills then held the position of associate director for the Banff Centre before taking on the role of general manager of the Calgary Chamber of Commerce from 1981-84.
Looking back, it seems strange now, that in 1982 we bought our first computer, had it installed and then discovered no one knew how to use it. It took about a year of consultation
The Calgary Chamber thanks Mr. Mills for his years of dedication, not only to the Calgary Chamber, but to the progression of our city’s business community.
Chamber Member Spotlights The Calgary Chamber is proud to represent many Calgary businesses large and small; this month we are highlighting some of our industry leading members.
First Calgary Financial First Calgary Financial is a leading financial services provider. As a division of Connect First Credit Union, First Calgary Financial’s 300 team members serve 80,000 members through 16 retail branches in the greater Calgary area. With a strong presence in the community and a focus on acting local, First Calgary Financial is recognized as one of the most Admired Corporate Cultures in Canada and one of Canada’s Best Managed Companies. For more information, visit FirstCalgary.com.
58
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
Air Canada Air Canada is Canada’s largest full-service airline and the largest provider of scheduled passenger services in the Canadian market, the Canada-U.S. trans-border market and in the international market to and from Canada. Together with its Air Canada Express regional partners and leisure carrier, Air Canada Rouge, Air Canada serves over 38 million passengers annually, and provides direct passenger service to more than 190 destinations on five continents. For more information, visit AirCanada.com.
AMVIC Licensed
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // DECEMBER 2016
59
Chamber Member Spotlights Continued
RGO Office Products RGO Office Products is a complete supply and service dealership offering a comprehensive line of office furniture, office equipment, window coverings and flooring. As a Calgary-based market leader in the office environment industry, RGO is committed to meeting the unique challenge of each customer’s needs by providing superior services and value for the products they market. They have been an active member of Calgary’s community since 1966. RGO is a multi-year winner of Canada’s Best Managed Companies program. For more information, visit RGO.ca.
the company for over 15 years, bringing with them a wealth of knowledge and experience to help introduce the beginner to skiing or snowboarding, without the intimidation or confusion that can sometimes happen. For more information, visit www.SkiCellarSnowboard.com.
Willbros Canada
Ski Cellar Snowboard Celebrating 70 years of business this year, Ski Cellar Snowboard’s top-quality products, excellent selection and knowledgeable staff have kept it the retailer of choice for Calgarians. Ski Cellar caters to the whole family, from the beginning toddler to the active retiree. Not just a shop for the experienced athlete, the majority of Ski Cellar Snowboard staff have been with
Thanks The Chamber thanks the following long-standing member companies celebrating anniversaries this month for their years of support to the Calgary Chamber, and their commitment to the growth and development of Calgary. Member name Calgary Immigrant Women’s Association Pivotal Capital Advisory Group Weber Shandwick Worldwide Northern Alberta Institute of Technology Alberta Cancer Foundation Global Public Affairs Leger Marketing TD Canada Trust Scoular Canada
60
Years as a member 15 15 15 10 10 10 10 10 5
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
Willbros has been present in Canada for almost a century, operating as an integrated contractor providing industryleading services in pipeline, facility and storage tank construction and maintenance across the oil, gas and water segments. Willbros serves their clients on both specialized projects and multi-year combined service programs. As a values-driven organization, Willbros Canada, under the parent company Willbros Group (NYSE:WG), is committed to safe, high-quality, productive work. For more information, visit Willbros.com.
Gibsons Energy Ltd This year, Gibsons is celebrating 50 years as a Calgary Chamber member. For over 60 years, Gibsons has delivered integrated midstream solutions to customers in the oil and gas industry. Their operations include the transportation, storage, blending, processing, marketing and distribution of crude oil, liquids and refined products. They also provide oilfield waste and water management services. As an integrated service provider, they understand the full midstream value chain and can offer cost-effective, flexible solutions that meet, or exceed, customers’ business objectives and requirements. For more information, visit Gibsons.com.
CALGARY REAL ESTATE 2017 // REAL ESTATE
CALGARY REAL ESTATE
2017
EXPERT PREDICTIONS FOR THE NEW YEAR BY MELANIE DARBYSHIRE
H
aving endured two years of the recession, Calgary’s residential and commercial real estate markets are worse for wear. Prices and sales are down; vacancies are up; lease rates have plummeted. While what’s happened in the markets is not surprising, it nevertheless hurts for many. For others, opportunities unimagined just a few years ago have provided a consoling silver lining. So what’s in store for 2017? With few expectations of a major upsurge in oil prices, most experts are calling for more of the same – in some cases somewhat better, in others somewhat worse – for next year. On the residential side, cautious optimism is in the air. “We see a slight pick up from 2016 based on an improvement in overall economic activity,” says Sue Anne Valentine, a partner at Rooney Cronin Valentine. “The increase is projected to be about five per cent in sales volume.” She expects a similar increase in listings and the average/median sales price. Others are less optimistic. “In 2017, if all the current economic conditions continue to prevail, the Calgary real estate market should begin to feel an increase in negative momentum in demand but more measurably in the average sale price,” explains Don Campbell, a founding partner and senior analyst at the Real Estate Investment Network.
62
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
While the market hasn’t dropped as much as some had expected – thanks to previously high rents and seller resilience – recent policy changes will put a damper on confidence. “Calgary’s real estate market is especially vulnerable given the addition of the coming provincial carbon tax, no end in sight for low oil prices combined with the recently implemented changes by the federal government’s mortgage qualification rules,” Campbell says.
WHILE THE MARKET HASN’T DROPPED AS MUCH AS SOME HAD EXPECTED – THANKS TO PREVIOUSLY HIGH RENTS AND SELLER RESILIENCE – RECENT POLICY CHANGES WILL PUT A DAMPER ON CONFIDENCE. Minimal improvement in the rental market is expected; rising unemployment and continued outmigration will cause vacancy rates to continue to climb. “However, the new mortgage rules will keep that upward push on vacancy rates slower than would economically or cyclically be expected,” Campbell qualifies.
403.974.8255
NEWSTALK770.COM
CALGARY REAL ESTATE 2017 // REAL ESTATE
“2017 WILL ALMOST ASSUREDLY HAVE NEGATIVE NET ABSORPTION. OVER THE TOTAL SCALE THERE’S GOING TO BE MORE SPACE PUT ONTO THE MARKET THAN COMING OFF.” ~ KEVIN GORDON
Location will matter for both sales and rentals. “Inner-core sales have definitely been stronger this year than suburban transactions and we expect this trend to continue into 2017,” says Valentine. Campbell stresses the importance of proximity to public transit. “Values and rents within 800 metres of C-Train stations will be overall more stable than those away from these well-serviced areas.” Apartment sales, which have suffered the most in the downturn, will continue to decline as a surplus of new product comes onto the market. “This will provide buyers who wish to live in the condo lifestyle an opportunity,” Campbell says. Other opportunities will prevail as well. “[It’s] definitely a buying opportunity for those wishing to upgrade into the luxury market,” Valentine advises. On the commercial side, experts predict the downtown office vacancy rate – currently at a record high of approximately 23 to 25 per cent – will continue to rise. “2017 will almost assuredly have negative net absorption,” says Kevin Gordon, partner at Cypress Real Estate Ltd. “Over the total scale there’s going to be more space put onto the market than coming off.” Gordon highlights two buildings – Manulife Real Estate’s new building of 564,350 square feet and the 1.4-millionsquare-foot Brookfield Place – will add a ton of space to the market. “By early 2018, when all these buildings are
completed, we’re going to see the vacancy rate in the high 20s, possibly pushing 30 per cent.” Greg Kwong, regional managing director of brokerage services for CBRE, expects the amount of sublease space coming onto the market to slow. “We think we’re at bottom now, and there’s a little bit of growth for next year, but the overall vacancy will still go up.” Rents will remain at an all-time low. “If you’re a company that has a lease expiring in the next two years, rejoice,” says Kwong. “Because whatever your expense line item is for rent, it’s going to come down dramatically.” As a result, many tenants are upgrading their space. Tenancy deals are all over the map and include things like net-effective rates, lease incentives, free rent and cash allowances. “We’re seeing deals done for AA space between $0 and $20/square foot,” says Gordon. “But no tenant will actually pay $20/square foot – they’re getting free rent or cash allowances to build the space out.” Despite the bad news, investment in the core continues. “We’ve noticed a spike in pension fund investments in Calgary in a number of major office buildings,” Kwong says. “I think we’ll see a few more of those deals happening in 2017.” Not surprising given the dramatic drop in prices. “Historically, the city was assessing AA buildings at about $700/square foot,” says Lee Thiessen, partner and national leader, real estate and construction,
ABOVE: KEVIN GORDON, PARTNER AT CYPRESS REAL ESTATE LTD.
64
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
CALGARY REAL ESTATE 2017 // REAL ESTATE
“YOU SEE SOME PRETTY GOOD DIVERSIFICATION THERE FROM HIGHTECH, TO TRANSPORTATION, TO MANUFACTURING. SO THERE’S BEEN A NOMINAL DROP THERE.” ~ LEE THIESSEN
with MNP LLP. “Today, you’re seeing similar AA transactions in the $400/square-foot mark.” Commercial real estate outside the core has likewise suffered, though to a lesser extent. “The industrial vacancy rate is closer to seven-and-a-half per cent,” Kwong says. “Traditionally, industrial in Calgary has been around three per cent. But if you look at the global market, seven per cent is quite a healthy market.” Vacancies in the retail market have come up slightly too. Thiessen concurs the suburban commercial market is the least exposed to the recession. “You see some pretty good diversification there from high-tech, to transportation, to manufacturing. So there’s been a nominal drop there.” As the chair-elect of BOMA, Thiessen highlights some issues BOMA members will be watching next year. One is the challenges relative to the city’s development guidelines, particularly in the downtown core. Another is rail setbacks – a major issue since the Lac-Mégantic rail disaster. “[The city] hasn’t begun to articulate this,” Thiessen says. Application of the forthcoming provincial carbon levy (on January 1) and the City of Calgary Charter (which will enumerate multiple powers of the municipal government) are other stay-awakes for next year. Property taxes are another major issue for BOMA members – and all Calgarians – in light of declining property values. Given
steep declines in downtown values, many are anticipating the city’s assessments. “Is the city going to respond to the market and how it is changing?” Thiessen queries. Nelson Karpa, acting city treasurer and city assessor for the City of Calgary, confirms commercial property values are expected to be lower. “In the downtown office community we’re probably seeing the biggest downward change in assessed values.” Retail and industrial values are also expected to be down, though to a lesser extent. As a result, Karpa says there will be a slight shifting of the overall non-residential tax burden paid by downtown offices relative to industrial and retail properties. “[The downtown office property group] will be expected to be shouldering less of the tax burden in the non-residential tax class.” Residential property taxes, meanwhile, are not expected to change since there are no similar disparities between the different types of properties within the residential tax class. “Most values generally are going to be down, but they’re all going to be down consistently across the city of Calgary,” Karpa says. Not the brightest forecast for Calgary’s real estate markets in the new year, but not completely bereft of hope either. As we move into 2017, many factors will affect commercial and residential sales, prices and vacancies. In which direction and by how much, only time will tell.
ABOVE: LEE THIESSEN, PARTNER AND NATIONAL LEADER - REAL ESTATE AND CONSTRUCTION WITH MNP LLP
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // DECEMBER 2016
65
Kenway Mack Slusarchuk Stewart LLP Celebrates 30 Years By: Rennay Craats
I
n 1986, four accountants set out to create something a bit different in the Calgary marketplace. Bruce Kenway, Ray Mack, Barry Slusarchuk and Cal Stewart lent their vast expertise and their names to a new firm, and for the past 30 years Kenway Mack Slusarchuk Stewart LLP (KMSS) has been providing exceptional accounting knowledge to local businesses. The firm began with its four founders and eight team members, all dedicated to meeting the diverse needs of the city’s business owners. The firm grew steadily over the years and today it is proud to have 15 partners (including all four founding partners) and 65 team members. While the firm grew and the industry changed around it, the firm’s philosophy never wavered. It remained focused on building meaningful client relationships and developing in-house expertise to best serve its clients. “We made a decision to be a full-service accounting firm from the beginning,” says Bryce Eidsness, managing partner at KMSS.
“We’re not afraid to tackle things, but we recognize when we need to engage additional expertise for the benefit of our clients,” he says. But there aren’t many industries that KMSS hasn’t tackled over the past three decades. These accounting professionals have developed long-lasting relationships with clients in a
“Regardless of the size, KMSS treats each client the same way: as a valued and respected partner whose needs are its priority.” variety of areas ranging from retail to construction, tourism to agriculture, health care to manufacturing. And for KMSS, it’s those relationships that have allowed the firm to thrive over the decades.
The firm has continued with this vision. KMSS offers service in general accounting and bookkeeping as well as tax services, business consulting and auditing out of its Calgary and Canmore offices. Whether clients require financial statements for shareholders or debt financing, tax preparation, or profit and not-for-profit audits, they know the professionals at KMSS have the job handled. “Our clients are local owner-managed entrepreneurial business people across many different sectors,” Eidsness says. The mid-tier firm has clients with sales ranging from under $1 million to more than $100 million. Regardless of the size, KMSS treats each client the same way: as a valued and respected partner whose needs are its priority. Team members are dedicated to exceeding their clients’ expectations, and that can entail tapping into KMSS’s solid network of other professionals in the city including lawyers, bankers and accountants who are available to address more specialized issues for clients. The firm also has a longstanding affiliation with DFK International, one of the largest accounting associations in Canada and one of the 10 largest accounting associations in the world.
KMSS’s four founding partners: Bruce Kenway, Ray Mack, Barry Slusarchuk, & Cal Stewart
The one-firm approach of KMSS helps enhance the service levels for clients. Rather than having partners operating independently of the rest of the group, KMSS’s team members work together to ensure clients have access to the best expertise available. The tax group, which consists of two partners and six tax specialists, provides tax expertise to the firm’s entire client base, freeing up the others to address additional accounting and business needs. It has proven to be a great system, and KMSS is proud to have clients who have been with the firm since its inception. “It has worked out well and has served our clients well. Our goal is to keep our clients happy,” Eidsness says. The partners agree that in order to have happy clients the firm first needs happy team members. They work hard to recruit the right people who will fit with the firm’s philosophy and culture. The partners look for people with the skill set to
“KMSS provides a positive workplace with a healthy work/life balance and encourages team members to take full advantage.” do the job, a strong work ethic to get through the gruelling months preceding tax-filing deadlines, and a positive can-do attitude. Viewing candidates through this filter has allowed KMSS to build a strong team. In return, KMSS provides a positive workplace with a healthy work/life balance and encourages team members to take full advantage. Employees can choose to reduce their hours or take an extended leave during non-peak times of the year. Some take summers off to alleviate childcare issues
while others travel or pursue their passion, and partners are happy to adjust processes to accommodate these requests. This practice helps reduce staff costs in downtimes and helps keep the team’s morale high and has resulted in KMSS consistently being recognized as one of Alberta’s Top Employers. Employees appreciate the consideration and respect shown to them. Eighteen team members have been with the firm for more than 10 years with nine of those being there for more than 15. “We accommodate work/life balance as long as the needs of our clients are being served,” he says. “We walk the talk.” KMSS hires eight to 10 new team members from postsecondary programs every year. The firm is a recognized CPA training office and mentors its students in not only obtaining their CPA designation but also continues to support their growth and development as they progress in the firm. In fact, six of the current partners started out as students who articled, got their designations, and worked up through management to become partners. Growing and developing these younger team members into partners who will be poised to run the firm has given KMSS a solid foundation for the future. And the future is looking positive for Kenway Mack Slusarchuk Stewart. With a strong client base and a multigenerational complement of partners and team members to lead them into the future, KMSS is ready for anything. “We feel there’s a bright future for the firm,” says Eidsness. As KMSS enters its fourth decade in business with the support of its remarkable team members and successful clients, that future is sure to be exciting. Read more about the firm at kmss.ca.
Brad Flegel, Jarrett Flegel, Murray Flegel, Kien Luong, Gray Savage and Steve Jakubec.
Celebrates 25-Year Legacy by Rennay Craats
BOSS Lubricants | 25 Years 69
BOSS Fleet at the Calgary Facility.
M
uch has changed in the 25 years since Murray Flegel opened the doors of BOSS Lubricants. The company has grown, expanded, and established itself as one of Canada’s largest independent lubricant manufacturer and wholesale supplier of premium engine and transmission lubricants, natural gas compressor oils, greases, and glycols. With coverage from coast to coast and an impressive head office and manufacturing facility in Calgary, BOSS is proud of its Canadian roots. BOSS was and remains 100-percent Canadian owned with products that are developed for the challenging Canadian climate. Back in 1992 it was a true family team effort. Murray’s wife, Arlene, did the bookkeeping and invoicing while Murray took care of the sales and operations. Murray’s knowledge in the lubricants industry was obtained while spending more than 20 years with Texaco and Turbo after his professional hockey career came to an end. While getting their education and business degrees, sons Brad and Jarrett worked part time to help their dad out. “I worked my way up through the company doing pretty much every job except accounting, working for $5.70 an hour,” says Jarrett Flegel, current president and COO of BOSS Lubricants. In 1996, Murray brought in a silent partner, Bill Dickson, whose business expertise and vast knowledge helped guide the company to the size and success it enjoys today. Since Bill’s passing, the company has dedicated the “Make it Happen” award to a recipient within the company that demonstrates Bill’s passion for a “Can Do Attitude.” “As the company grew, so did our workforce and delivery fleet which offers industry leading service,” says Murray Flegel, founder and CEO of BOSS Lubricants. In 1999, Jarrett graduated from Mount Royal College with a Small Business and Entrepreneurship degree and extended his education years later attending Queen’s University’s Executive MBA program. He was also the first Canadian president of the Independent Lubricant Manufacturers Association (ILMA). Older brother Brad graduated in 1993 from University of Calgary with a Commerce degree and went into the oil and gas industry, holding various positions with companies like Barrington Petroleum, AEC, ENCANA, and Niska Gas Storage. Brad is currently the Vice President of Properties & Logistics at BOSS.
2 | 25 Years | BOSS Lubricants
We have been using BOSS Lubricants products for 10 years. We are very pleased with the professional friendly staff. The availability of technical information is very quick and the delivery service is very valuable to our company. We have had great success with the engine oil and hydraulics in our Canadian climate and we are always being supplied the right product for our situation. Since using the BOSS products we have had no failures in engines or hydraulic pumps. ~ Peter Martens, Greg Penner Construction Ltd.
BOSS’ first taste of expansion came in 1996 when BOSS acquired Service Station Supply in Red Deer, which is where they met current 20-year employee Kien Luong. On a daily basis, Kien co-ordinates shipments to and from clients and suppliers, ensuring adequate amounts of materials are on hand for in-house blends, pricing, purchases, and order on all products. He also reviews the results of quality control testing and identifies and troubleshoots areas where BOSS can save costs and improve operating efficiencies while ensuring that the integrity of BOSS Lubricants product line is maintained. Over the years and through ongoing customer growth and other opportunities, BOSS has been strategically positioned in Surrey, Edmonton, Red Deer, Lethbridge, Saskatoon, Regina, Brandon and Toronto. BOSS’ diverse product offerings and service area coverage has been able to overcome challenging economic times. Today, BOSS services over 4,500 customers across Canada and supports over 150 distributors and has recently expanded its exporting position internationally. With service being at the forefront of BOSS’ business model, BOSS boasts one of the largest internal delivery fleets in Canada and is provided with dedicated shipments from its partly-owned highway tractor and trailer company BOSS Hauling. Operated by the Linn family, BOSS Hauling has successfully delivered product on the same and/or next day to BOSS Lubricant facilities since 1998. In 2006, Gray Savage was brought in as vice president of finance to oversee the development of the company’s financial position and to ensure BOSS’ ability to facilitate expansion. Gray in his 10 years with BOSS says, “I have had a lot of fun along the way!”
Congratulations to BOSS Lubricants! CONTRACT BLENDING & PACKAGING • 200,000+ gal/day capacity with full range of technologies & blender sizes PRIVATE LABEL MANUFACTURING • 5 Small Packaging fill lines 500–3,750 bph (1QT, 4 QT, 5 QT or 1 Liter, 4 Liters, 5 Liters) • 6 Large Packaging fill lines 60–120 dph ( 5 Gal, 16 Gal, 55 Gal or 18 Liters, 25 Liters, 80 Liters, 208 Liters)
STORAGE & TERMINAL SERVICES • 1 Million+ gal above-ground tanks in varied sizes; 2 rail spurs, daily switches, 3 providers We provide 20 years of expertise. Additives & base oils from leading suppliers. Full technical lab & QC to meet API, ACEA, JASO & most OEM requirements. Flexibility to speed your product to market. And efficient production to keep your prices competitive. Please contact us to discuss what you need from your production partner. www.amtecol.com Richmond, CA 510.235.7979 info@amtecol.com
BOSS Lubricants | 25 Years | 3
Tank Farm in the Calgary Facility.
Also lending strength to the company is Steve Jakubec, general manager and controller, whose initial focus when brought on board in 2008 was to upgrade systems and standardize processes throughout the company. Steve works closely with the sales team in achieving operational goals. “We have implemented a custom system that is tailored to our unique manufacturing process, allowing BOSS to better control costs and operational efficiencies to better serve our customers,” Steve says. The company moved into its location on 30 Street SE in 1996 with 26 tanks. Today, BOSS has over 99 tanks ranging in various sizes from 8,000 litres to 100,000 litres. Raw materials are pumped in, blended, tested, packaged and distributed from this facility. It produces everything from gas engine oils, diesel engine oils, gear oils, tractor fluids, grease, environmental products, transmission fluids, hydraulic oils, and synthetics. BOSS Lubricants’ Edmonton facility handles all anti-freeze and heat transfer fluid blending, packaging, terminalling, and storage. By keeping tanks out of Calgary’s extreme elements and in a more controlled environment, BOSS can manufacture a higher quality product. “Water or condensation is the evil enemy of lubricant so we ensure we don’t have any outside elements in our manufacturing processes,” says Jarrett. Two years ago BOSS purchased the Calgary head office and warehouse facility, which now sprawls 80,000 square feet. It has expanded to include five blending tanks capable of blending 10 million gallons of product each year, with the ability to increase output if required. BOSS can
4 | 25 Years | BOSS Lubricants
BOSS Lubricants has been a great partner to Bounty Onsite Inc / Bumper To Bumper. Canadian owned and operated allows them to adapt to Canadian climates and our ever changing conditions. They have shown a willingness to help us grow our business in many areas. They are willing to walk through doors with you to help gain an advantage over competitors. The product quality speaks for itself. ~ Bob Hamilton, Manager, Bounty Onsite Inc. Bumper to Bumper fill tank trucks, drums and totes. The company has invested in some leading edge technology to fill 1 litre, 5 litre, and 20 litre pails. Quality is an essential core value for BOSS, and the company’s commitment to this is reflected by their “No Non-Sense Warranty.” “We take pride in our specs and our quality. We lab test everything before it goes to market,” Murray says. Products are sent to an independent facility for testing to ensure they meet or exceed OEM specifications before BOSS will put their label on it. The company has worked hard to earn its reputation for quality and strives hard every day to maintain it in every product produced. There are more than 200 industrial oils and lubricants in BOSS’ repertoire that cover a vast spectrum of requirements for a variety of industries. BOSS is proud to be able to meet the
BOSS Lubricants | 25 Years | 5
MAG 1 OILS, LUBRICANTS, AND CHEMICALS The MAG 1 family of products was created to be a high quality, full line offering that would be flexible enough to fulfill the demanding requirements, conditions and tests of multiple markets and equipment manufacturers. MAG 1 products can be found in many retail locations, service bays, bulk suppliers and distributor warehouses around the globe. Our desire to continually improve our products and manufacturing processes keeps MAG 1 performance levels consistent across all categories. This strategy keeps our quality levels high and our production costs low. MAG 1 lubricants are built using Superior Chemistry to achieve Superior Performance in the market place. We use the highest quality base stocks and advanced additive systems. Our API licensed fluids meet or exceed all testing, ensuring long term performance you can count on. MAG 1 products offer advanced technology and protection to help consumers and industry drive forward around the world. Thank you for selecting MAG1 products! We sincerely appreciate the opportunity to help you ignite performance and protect engines, vehicles and equipment.
Quality Means Doing it Right When No One Is Looking. Fleet/ATF/Gear Oils
Fueled by excellence. Formulated to excel. Motor oils.
bosslubricants.com DISTRIBUTED BY/DISTRIBUÉ PAR : BOSS LUBRICANTS
6-0000
30 MONTH WARRANTY
Manufactured And Blended To the Highest Industry Standards. Hydraulic/Industrial/Agricultural Fluids
Superior Chemistry. Superior Performance. Greases/Specialty prodcucts
Consistent High Quality Products Ensures Repeatable Performance. Chemicals/Power Steering Fluids/ Brake Fluids/Small Engine Aerosols
BOSS Lubricants is the exclusive distributor of Mag1 in Western Canada (Manitoba, Saskatchewan, Alberta and British Columbia)
needs of its diverse retail, industrial and commercial clientele. In order to better serve these valued customers, BOSS introduced a secondary line of products. “We’re always looking to expand our product lines to meet customer demands based on industry trends,” says Steve. BOSS has recently become the exclusive Western Canadian distributor for Mag 1 products, which features aerosol glass cleaners, brake cleaners, and leisure products. This makes it more convenient for BOSS customers to get everything they need from one location while complementing BOSS’ already extensive product line. Under this one-stop shop strategy, the company recently launched a full line of batteries called BOSS Power. Customers needing batteries for everything from large highway trucks to jet skis can get them at BOSS. Customers’ needs come first at BOSS. In order to be more competitive, BOSS bought the six-car rail spur behind the facility for easy access to raw materials. This strategy has given BOSS an economic advantage. Competitors may bring in one trailer per week of materials by road while BOSS is bringing in four to seven railcars per week. Some of the tanks can hold an entire railcar worth of product, so it can order in bulk and pass the savings along to customers. “It’s important for our customers to get that value discount as a result of our buying power,” says Jarrett. BOSS stands for Bulk Oil Sales and Service, and it is that second “S” that really sets the company apart from the competition. Despite the size of BOSS’ client base, it still uses the small family business approach. Part of the culture at BOSS is the expectation that its employees answer the phones within three rings rather than having a call centre or patching callers through to automated directories. BOSS cares about customers and their needs, and this is just one way to show it. Account representatives go see clients in person to build and foster business relationships. They want to show existing and potential clients the value of the BOSS brand and how the best quality doesn’t always cost the most. “As a small business there’s a misconception of our ability and capabilities,” says Jarrett. “We can do what the big boys do – we don’t have the branding or the billboard signs or fancy marketing, but we offer exceptional service and support, all the while offering a quality product at a very competitive price.” Sometimes it is difficult to switch away from a major branded product, so management encourages clients to test out the product or perform an oil analysis if they are not convinced—and with the best warranty in the business, what’s the risk? Once customers give the products a chance, they are glad they did. BOSS works hard to earn its clients’ business and works even harder on keeping it. “We prove to them day in and day out that they made the right decision,” says Steve. BOSS, on average services 150 customers per day. In fact, many customers have been with Murray and BOSS since it started 25 years ago. Management is proud to have long-term customers. That dedication comes from the top down at BOSS. Management fosters and perpetuates an environment that encourages teamwork and accountability. The culture at the office is one of family. The Flegels value their employees and enjoy getting to know them during office hours and outside of work. Through staff barbeques, parties, lunches and family events, as well as friendly conversations and greetings throughout the workday, management lets employees know they are important and cared for. In return, the staff is loyal to BOSS and is invested in its success.
8 | 25 Years | BOSS Lubricants
Thermo King Western (Calgary) Inc has been using BOSS Lubricants for the past five years and acknowledges that our experience has been excellent overall. Our BOSS Lubricants Industrial Account Representative has responded timely to our needs and addressed any and all concerns quickly and effectively. We would recommend BOSS Lubricants to anyone looking for a quality lubricant, quick service and great customer support. Dan Lafaut, Parts Manager, Themo King Western (Calgary) Inc. “This year alone I have six ten-year watches to award and five five-year plaques,” says Murray. “Some others have been with us for 15 and 20 years too. The tendency is for employees to stay long-term. We’re really proud of that.” BOSS is also proud of its commitment to lessening the company’s environmental footprint. The Regina location has a drum reconditioning plant and the Saskatoon location operates a tote reconditioning plant. The company gives back to causes that are important to BOSS as well as its customers. Murray was the president of The Rotary Club of Calgary South in 2015/16 and supports many of its charity events. BOSS also supports Youth Unlimited and The Motive Action Foundation, which help provide youth and adults to gain access to fundamental work and life skills. The company also donates oil to local community initiatives and charities. Each year employees across the country volunteer time at The Food Banks and support various charities including many Cancer Foundations, The Heart and Stroke Foundation and the Aga Khan Foundation.
Congratulations BOSS Lubricants on your 25th anniversary! Wishing you much success in the coming years. We look forward to continuing our relationship as both our companies grow. All the best from Gerry and the Wood Automotive Group team.
11580 24 St SE, Calgary, AB T2Z 3K1 Phone: (403) 253-2211 • woodauto.ca
BOSS Lubricants | 25 Years | 9
Jarrett Flegel, Murray Flegel and Brad Flegel.
“We are proud to support our communities and actively participate in charitable causes and events” says Jarrett. BOSS management and staff are enormous sports fans, and the company supports sports teams from four-year-old Timbit hockey players and adult recreation teams all the way to professional local sports teams.
Battenfeld Battenfeld Grease (Canada) Ltd. 68 Titan Road Toronto, Canada M8Z2J8 (416) 239-1548 battenfeld-grease.com
10 | 25 Years | BOSS Lubricants
Congratulations to BOSS Lubricants on 25 Years! We are proud to be a part of your success. “QUALITY WITHOUT COMPROMISE”
As a business owner, specializing in all types and sizes of trailers from utility to commercial trailers, I have been using BOSS lubricants for the past two years. I couldn’t be more satisfied than I am with the BOSS product line. My customers are the true testimony as they experience less wear and tear on their equipment, hence saving them in moving part replacement. The BOSS product line speaks for itself not only in reliability but in pricing too. I have found that the staff providing me with these products whether it be gear oil, hydraulic oil or grease are knowledgeable about the products and are able to make recommendations of which product is best suited for all applications. I highly recommend the BOSS line of products. ~ Fred Kenmuir, That’s Truck’n Repairs Inc.
The sports focus is no surprise considering Murray Flegel’s first career was on the ice, not in the business world. As a member of the Montreal Canadiens minor league, Murray played professional hockey for 10 seasons and was awarded the International Hockey League’s (IHL) Governor’s Trophy two years running as the top defenseman in the league. He has brought these two passions together in his Calgary office. Upstairs is more museum than workplace, as Murray has his incredible collection of hockey memorabilia displayed on the walls and in cases to share his passion with the staff. “After all, this is our home away from home. We spend more time at the office than at home,” says Jarrett.
ROGERS INSURANCE IS PROUD TO CONGRATULATE
ON 25 YEARS OF BUSINESS! rogersinsurance.ca
Machine Repairs, Machine Installs, Machine Moves, Conveyors, Air Lines Millenium would like to congratulate BOSS Lubricants for their 25 years in business! We look forward to a continued relationship with them for many more years to come.
Congratulations BOSS Lubricants on 25 years! Stewart Warner Alemite Canada 349 MacDonald Ave. Belleville,ON K8N 5B8 1-800-267-8022 stewartwarnercanada.com
We wish you many more years of continued success.
Thames River Chemical Corp. distributes chemical products in specialized markets across North America. As a member of Responsible Distribution Canada we value the protection of health, safety and environment and ethical business practices.
Thames River Chemical Corp. would like to thank BOSS Lubricants for 10 years of partnership and congratulations on your 25th Anniversary! May our relationship prosper and grow for many more years to come.
RR6 Site 4 Box 1, Calgary, AB T2M 4L5 • Phone: (403) 463-5551
Your Maintenance & Installation Problems Are Over!
5230 Harvester Road Burlington, Ontario L7L 4X4 Canada | T: 905-681-5353 www.trc-corp.com
BOSS Lubricants | 25 Years | 11
Murray and long time friend Gordie Howe.
But Murray may soon be spending more time south of the border than at the office. After devoting a quarter century building BOSS Lubricants, he’s beginning to plan for partial retirement. “I don’t know if my dad will ever let go fully. We’d like to see him spend more time down south with his friends because he’s earned it. He deserves it,” Jarrett concludes.
BOSS Lubricants - Calgary, AB 112-6303 30th Street SE Calgary Alberta T2C 1R4 Canada Tel: 403-279-2223 • Toll Free: 1-800-844-9457 • Fax: 403-279-2272 Email: info@BOSSlubricants.com www.BOSSlubricants.com
Chemical Products – Commodity and Specialty | Logistics and Regulatory Service | Custom Blending and Packaging - Liquid or Dry | Commitment to Health, Safety, and the Environment
Congratulations to BOSS Lubricants on 25 years! We wish you many years of continued success.
Box 619- #1 - 56 Avenue Thorsby Industrial Park Thorsby, Alberta T0C 2P0 Phone: (780) 984-0286 • www.archdistribution.com
12 | 25 Years | BOSS Lubricants
PETER GARRETT CEO INNOVATE CALGARY
“Events at the Convention Centre are really important to developing CONNECT WITH THE the whole WORLD AT THE innovation CENTRE OF ENERGY ecosystem.”
FOR MORE INFORMATION VISIT:
calgary-convention.com
Economic Outlook Calls for Growth in Calgary in 2017 BY STEPHEN EWART
T
he end is near.
That isn’t so much a prophecy as a forecast for the economy, but after two years of painful recession, a pair of top economists are suggesting we’ve seen the worst of the downturn Both predict the return to growth in Alberta in 2017. Todd Hirsch, chief economist with ATB Financial®, and Glen Hodgson, senior fellow with The Conference Board of Canada, forecasted, at Economic Outlook 2017, which was hosted by Calgary Economic Development, that gross domestic product (GDP) in Alberta will expand by 2.1 and 2.2 per cent respectively next year.
plunge from more than $100 a barrel in June 2014 to lose 70 per cent of its value early in 2015. After bottoming out, oil prices have rebounded, but these days $50/barrel for oil is seen a sign of optimism. Excess supply remains an issue globally. Canada still has only one export market for our crude oil and the hydraulic fracturing revolution has meant the biggest customer for our energy has suddenly become our biggest competitor – or as Hodgson calls them, “fracking Americans.” “We’ve seen the worst in the oil price downturn,” Hirsch said. “We don’t think we’ve seen the worst in the labour market.”
Hirsch’s presentation to almost 1,300 Calgary political and business leaders in early November was titled Have We Reached the Bottom Yet? Hodgson sounded a slightly more optimistic tone with a presentation titled Economic Recovery is in Sight.
In its Alberta Economic Outlook 2016-17 report released before the event, ATB predicted that the rebuilding of Fort McMurray following devastating forest fires last spring will drive the economic recovery in the province. It has forecasted that Alberta will see growth of 2.1 percentage points next year and another 2. 2 per cent in 2018.
“The worst is over,” Hodgson told the sold-out crowd at the BMO Centre at Stampede Park. The event has become a staple of the fall business calendar as companies plan budgets for the year ahead and are looking for insight and information.
That follows declines of 4.0 and 2.4 per cent in the last two years. Calgary has gone from the city with the lowest unemployment rate in the country to the city with highest rate – reaching double digits for the first time in two decades at 10.2 per cent in November.
“Albertans have endured their longest, steepest recession in recent memory,” he said. “A long, slow recovery will begin next year.”
“Despite some glimmers of hope brought on by higher oil prices,” ATB said in its report. “Alberta’s economy remains challenged … this has understandably weighed down consumer and business confidence.”
“Modest growth will return next year,” added Hirsch, “with an emphasis on modest.” The cautious optimism for Alberta’s recovery is largely rooted in the assumption the worst is over in the global oil price collapse that saw West Texas intermediate crude
When Alberta’s economy was overheated by oil sands activity a few years ago, economists warned even moderate growth would feel like a recession compared with the boom times. Now, they predict a return to growth in 2017, but there’s no sense that the “new normal” will feel anything like a boom.
STEPHEN EWART IS COMMUNICATIONS AND CONTENT MANAGER FOR CALGARY ECONOMIC DEVELOPMENT.
82
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
Tourism Calgary’s 2017 Strategic Update BY CASSANDRA MCAULEY
L
aunched in 2016, Tourism Calgary’s three-year plan is a result of research-based insights, evaluation of results and a strategic focus on the needs and wants of targeted visitor markets and demographics.
WE COMMIT TO ONGOING
At the mid-cycle point, Tourism Calgary’s work demonstrates achievement and progress throughout the first year (2016) and indicates evolution, refinement and growth into 2017 and beyond. The strategy will continue to be implemented with sensitivity toward economic realities and a nimble approach to our marketing efforts.
ORGANIZATIONS WHICH IMPACT
2017 strategic focuses:
- Following a successful pilot of a new in-market engagement strategy in 2016, the program moves into a refinement and expansion phase for 2017 and beyond. - Building on the shared Be Part of the Energy brand, work will be undertaken to emotionalize the brand for visitors; sharing what makes Calgary distinctive. This will lead to refinement of our brand story, helping to better communicate Calgary’s brand around the world. - Research insights will be leveraged to develop a hyperunderstanding of the motivations, triggers and unique selling points amongst audiences in new, less-familiar markets. - Marketing programs will be enhanced and grown through the addition of new elements, features and extensions, based on analytics and global marketing trends. - Following comprehensive market analysis, strategies will be implemented targeting seven primary international markets
COLLABORATION, EDUCATION, ENGAGEMENT AND SUPPORT OF TOURISM AND OUR COMMUNITY. with direct air access to Calgary, and four secondary markets with non-direct air access. - A sport-focused quadrant strategy, developed in 2016 with input from the Calgary Hotel Association and Destination Marketing Fund members, will be finalized and implemented in 2017. - After completing a comprehensive stakeholder engagement process which informed the development of Tourism Calgary’s destination strategy in 2016, focus in 2017 and beyond will be dedicated to implementing the plan with our partners. As an organization, we continue to be dedicated to our stakeholders and partners. We commit to ongoing collaboration, education, engagement and support of organizations which impact tourism and our community. The success of this strategic direction will continue to be measured by important key performance indicators, in addition to the sentiments of our stakeholders, our level of engagement in the industry and our ability to influence the development of our destination. To read Tourism Calgary’s comprehensive 2016 – 18 strategic plan, please see: visitcalgary.com/industrymembers/research/strategic-plan
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // DECEMBER 2016
83
The Best-Made Plans BY KERRI SAVAGE
T
hough not widely known, Calgary is considered a national leader when it comes to emergency management. Due to Calgary’s resilience during floods, fires and failures, emergency management personnel across the country are looking to Calgary as a place where best practice has had some hard training ground. Technology innovator RallyEngine Inc. is keen to be a part of that pool of expertise. RallyEngine is a made-in-Calgary technology solution for alerting groups, rallying teams and informing communities during crisis, all from the ease of a smartphone. “It is maybe not appreciated enough in Calgary how well regarded we are across the country,” says Steve Hardy, president of RallyEngine. “There are many companies and levels within government that find crisis management to be a challenge. With regards to the planning, preparation and the relationship building that needs to take place before something happens, Calgary is light-years ahead of so many other places in Canada. And the nice thing to see is that they are very sharing of their knowledge and experience in floods and fires and evacuations. Everyone else is listening and they want to know how it has been approached.” Following the 2013 flood, RallyEngine, with the help of Ipsos research, conducted a survey of Calgary companies and the results showed that even though Calgary bounced back from the devastation rather quickly, most companies didn’t have emergency response plans that were reliable, or accessible. “One number coming out of that study was that only 19 per cent of those companies could reach their people; that number is remarkably low,” reports Hardy. “Yet Calgary still proved to be resilient due to ad hoc teams, volunteerism and people rolling up their sleeves.” “This is exactly how modern crisis communications and emergency management is actually succeeding. There’s a whole new vanguard of innovative leaders saying ‘you can’t
84
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
predict everything; we have to be nimble, we have to have nimble tools.’ And certainly we think one of those tools is RallyEngine as it is mobile, ubiquitous and powerful to reach dispersed teams in high-stake situations.” With the assistance of Innovate Calgary, the company recently signed a long-term licence with the University of Calgary to power the UC Emergency mobile alerting app, which proved to be integral during this year’s malware attack on the university’s essential computer systems. The agreement also includes modules for monitoring those who are working or studying alone on campus, as well as an ability to activate and manage emergency wardens and ‘spontaneous volunteers’ in a crisis. “Our work with the university is helping them shape a bestin-class campus safety package,” says Hardy. “The University of Calgary is looked at by other schools as being advanced in this area and it paid off already for them in terms of having a private back channel that they could use to notify people, especially their key crisis and emergency teams.” To learn more about RallyEngine, visit rallyengine.com. To learn more about Innovate Calgary and how it supports new and emerging technology, visit innovatecalgary.com.
A CHAMPION’S IDEA COULD SEE CALGARY HOST ITS BIGGEST EVER CONVENTION Craig Stokke’s mission to host the largest convention in Calgary began by a chance meeting in Italy. A member of the Rotary Club of Calgary South, Stokke was in Rome in 2015 when a man there told him he’d attended the Calgary Rotary International Convention in 1996. The event attracted nearly 25,000 people from 126 countries and remains the largest convention ever held in the city. The man said he enjoyed Calgary so much that more than 25 years later he gave his daughter and son-in-law a trip to the city and the Rocky Mountains as a wedding present. Afterwards, as Stokke was going for a run around the Colosseum, he thought: Why not bring the Rotary International Convention back to Calgary? With up to 30,000 people now attending the event each year, it would be an opportunity for Calgary to set a new record in convention attendance. “I didn’t know where to begin,” Stokke says. “But I was quickly channeled to Meetings + Conventions Calgary (MCC). And I realized it was a one-stop shop to connect to all the right people and groups.” A partnership created between the Calgary Hotel Association and the Calgary TELUS Convention Centre, MCC works with North American and International meeting and association planners to attract meetings, conventions and incentive business to Calgary. Supported by the BMO Centre and the TELUS Convention Centre, MCC works with people such as Stokke, through its Calgary Champions program, to educate them about how they can leverage efforts to bring major meetings and conventions to the city. “Calgary Champions have led the efforts to bring 13 conventions and 17,000 delegates to the city, since 2013” says MCC executive director Dave Sclanders. “As well, Champions have played a role in seven confirmed future conferences with nearly 6,000 delegates. “It’s a total partnership between Champions, Calgary meeting venues and hotels and us all working to position the strongest bid for our city.” Together MCC, Stokke and the the Southern Alberta Rotary District want to bid to host the 2023, 2024 or 2025 Rotary International Convention. They’ve submitted a letter of intention and are one of 12 cities selected to bid for the conventions. “MCC has helped us show Rotary International that Calgary has everything they need to host such a prestigious international event,” Stokke says. If successful, Stokke hopes the city’s second Rotary convention also inspires attendees to send their children to Calgary two decades later. For more information on becoming a Calgary Champion contact Meetings + Conventions Calgary at 403.261.8500 or info@meetingscalgary.com.
calgary-convention.com BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // DECEMBER 2016
85
MARKETING MATTERS // DAVID PARKER
Marketing Matters BY DAVID PARKER
R
eaders of this column know that I am a big booster of local business and get quite frustrated when Calgary firms feel they have to search elsewhere for talent that I believe resides here. We have been experiencing a bit of a downturn in our local economy, which is even more reason why we should shop local. Coinciding with the #LoveYYC initiative by Calgary Economic Development and Tourism Calgary, Anstice Communications has launched its own Anstice Loves Local campaign to celebrate the amazing people, places and moments that define our city. It is calling on local and Alberta-based businesses to connect and learn more about the unique services available here. Founder and CEO Sheena Rogers says, “During these transformative years in the Alberta economy, we at Anstice believe in the authenticity and importance in maintaining local roots and displaying pride in our province. I have witnessed so many Alberta-based blue-chip companies hire Ontario or British Columbia-based creative agencies and I challenge companies, both large and small, to look inward.” I couldn’t agree more. There are lots of talented, creative people here. Way to go, Sheena.
Mark Szabo, who for the past two-and-a-half years was director of marketing and communications at Bow Valley College after moving over from KARO, is now executive director strategic events and communications at the University of Calgary. Also at Bow Valley College, Nicole McPhee has moved into her new role as senior communications specialist, supervising a communications team that now includes media relations officer Fred Cheney. He held a similar role at Mount Royal University during the pivotal time in
86
DECEMBER 2016 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
its history; the transition from college to university, its rebranding, ground breaking for the new conservatory of music, and installation of its new president. Cheney has a Bachelor degree with double major in political science and English from Duke University in Durham, North Carolina.
The YWCA Calgary (YW) has launched its new brand, bringing together five years of vision and strategic organizational change with a new logo and new tag line: women-centred, brighter-future focused. The research, planning, logo design and other creative elements for the refreshed brand was developed by Melodie Creegan, president; Margo McKee, creative director and their team at Mosaic Communications. YW CEO Sue Tomney says, “Our new brand reflects our clarity of service to women and ongoing efforts to demonstrate accessibility and nimbleness in our program delivery and business planning.”
Kurt Kadatz left his position as director of community engagement and communications at the Calgary Stampede to join Brookfield Residential Properties as senior communications manager for Alberta.
Parker’s Pick Congratulations to McAra Printing and Unicom Graphics for joining forces to become one of the largest print producers in Western Canada.
Our friends are all class. Congrats to Wayne and Eleanor Chiu on their CASE Benefactor Award Wayne and Eleanor Chiu, founders of the Trico Charitable Foundation, have been presented with the Council for Advancement and Support of
The award recognizes outstanding contributions to community colleges, and no one else deserves it more than the Chiu family. They are leading examples of community based philanthropy, and a key partner in the College’s growth. Not only did they make a $3 million contribution in 2014, they continue to share their ambitious spirit by developing entrepreneurship programs that strengthen our College and community. Congratulations Wayne and Eleanor, and thank you for your inspirational support of our learners.