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You Belong Here Membership with the CPC over the past three years has been an excellent experience. I joined The Club well into the oil crisis and I’ve been impressed with how well our people have managed to not only keep The Club relevant during this difficult period, but transform it into a place that more and more members enjoy visiting during their spare time as opposed to business meetings exclusively. The Club’s staff is truly its strength. It is through events such as our Happy Hours, Leaders & Mentors Lunches, Stampede and holiday functions, or simply a visit to the Sports Lounge or Wine Cellar that The Club has assisted me in developing business opportunities and lasting friendships. - Ryan Ackers Vice President, Business Development & Client Relations, GBL Inc.
Liftboss is proud to introduce another first in the construction industry, JCB’s compact, tracked backhoe loader. The 1CXT provides superior maneuverability, an optional handheld tool auxiliary, as well as a universal quick hitch that is compatible with most skid steer attachments. The machine is equipped with a 49 hp engine that requires no aftertreatment. iftboss Inc. was established in May 2006 by adding JCB construction equipment in 2017 has been Lessfour than six feet wide 7-feet-6 other backhoe loader willmore fit. partners John and and Andre Gagnon,tall; Daleput it to awork great where addition,no and has made Liftboss Inc. even
L
Beatty and Marc Tougas to be a one stop shop visible in the heavy equipment industry in Alberta. dealership for all material handling needs. Having They will always stay true to their material handling worked in the industry before, the four partners, roots, but having an established and well respected Give us a call for more info or to arrange a demo. pooled all there resources, previous experience construction line has solidified the fact that Liftboss together and designed a new business model to fill Inc. is here for the long haul and ready to compete. the much needed niche that the industry needed. Liftboss Inc. is an Alberta owned and operated Whether you are looking for a new machine, a rental, dealership, offering new and used equipment sales, service or parts on an existing unit, or simply want a total parts department, forklift rentals, forklift a second option on something, give them a call and training, trained and certified mechanics to perform they will be happy to point you in the right direction. repairs in shop and service vehicles to handle on site As a group, Liftboss Inc. do what they do based repairs. Liftboss Inc. prides it’s self on quick response on four core values: do what you say you will in a time to customer’s breakdowns. timely manner; be open and honest; do whatever it takes; and service the customer above all else. As Customer service was the reason the company each department grows, each team member is held was born, and has captured an impressive share accountable to those principles, their focus of business for Liftboss. In the past 3 years, the is to be a quality company that people downturn in the Alberta economy has definitely are proud to work for. affected the sales activity, but comparatively the service and parts business has noticed substantial growth. The sales team builds portfolios for each client’s needs and service preferences; this way, they can have a conversation with a client instead Introducing the future of construction equipment. of simply walking them around the The new JCB Hydradig is the world’s first wheeled excavator and showroom. Their clients appreciate tool carrier designed for purpose and built without compromise. the attention and reward them with Travel to—and around—work sites faster than ever, maneuver into repeat business and referrals.
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Calgary Chamber of Commerce The Calgary Report Current developments for Calgary Telus Convention Centre, Tourism Calgary, Calgary Economic Development, and Innovate Calgary
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T he MBA Which Program is Right for You? By Erlynn Gococo
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A Beacon of Hope Proponents argue new event centre signals Calgary is open for business again By Jamie Zachary
O nline Trading Facts of Life Investment savvy for 2020 By John Hardy
T he Art of Financial Planning Different uses for TFSAs, RRSPs and trusts By John Hardy
C ondo Outlook Buyer’s advantage to continue By Tamara Isbister
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COLLECTIVE ALTRUISM // BRAD FIELD
Collective Altruism BY BRAD FIELD
T
he new year is in full swing. People my age feel like Y2K was just yesterday, not two full decades ago. In those 20 years, Calgary has boomed, busted, boomed again and, yes, busted again. We always manage to adapt and evolve. The resource-based economy of the Prairie provinces is naturally vulnerable to commodity price swings. Fortunately, our history is also full of community spirit and altruism. Calgary business practice includes giving back, which in 2020 takes a bit of a different shape than it has in decades past. Altruism is about service without expectation, caring for others without personal ego. It’s a deeply embedded value on the Prairies; it’s no coincidence Alberta’s longest-serving premier was Ernest Manning, and Saskatchewan’s was Tommy Douglas. Both leaders believed deeply in community service and collective responsibility. What does this mean to business? Whether it’s called corporate social responsibility or “conscious capitalism,” altruism has become a distinct marker of business success. Those growing and flourishing in what is being described as the worst economic conditions of our lifetime are doing so by putting people first, starting with their employees. The development of people-first business practices turns some former “nice-to-haves” into non-negotiables. Altruism means caring about employee well-being. While supports and benefits can take different forms from workplace to workplace, we have learned that employers get out of employees exactly what they put in. In the past decade, companies have upped the game on mental health benefits. Health and fitness benefits alleviate the financial barriers to living a healthful life. Alberta’s own ATB has led the charge in evaluating their people on performance, not presence, giving
their team members the opportunity to, in their words, manage all aspects of their lives, including work. Obviously, not everything will work in all workplaces, but tailored investments into people go a long way. Take care of your people, and your people take care of you. Altruism in a business context also means corporate giving. In the past, some corporate philanthropy was about cherry-picking the CEO’s favourite cause. Today’s shift to well-rounded support is crucial for the Calgary community. This evolution gives heightened merit to rallying a team around causes and making meaningful impact. While money matters to our not-for-profit organizations, corporate giving is no longer limited to dollars and cents. Giving now balances money and time, forging long-term relationships between companies and community organizations and helping them plan for long-term success. How appropriate that Benevity, a world leader in software for corporate giving, was born right here in Calgary. Successful businesses spark the flame of successful societies. I sense an anti-business tone in our civic discourse recently that worries me. There aren’t many successful business people who have bought Ferraris ahead of investing in their business, or job creation, or people. When entrepreneurs and company leaders are free to operate in a stable environment, conducive to growth and opportunity, communities will thrive. The flip side is what we see now. Soaring taxes and costs are driving businesses out of Calgary, and the social costs are becoming evident. I fear what could come if city council can’t stop squabbling amongst themselves long enough to create a long-term solution to the growing sense of discontent in our business community. Take care of us so we can continue to help take care of Calgary.
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OF ENERGY
FEBRUARY 2020
THE HEARTLAND
PETROCHEMICAL COMPLEX
INTER PIPELINE CEO CHRISTIAN BAYLE ON THE MEGA PROJECT HIS COMPANY IS UNDERTAKING
We are pleased to announce that Jody L. Wivcharuk has joined the firm as our newest partner in the Oil and Gas Group. We also welcome Jeff Geib back to the Calgary office. Jody and Jeff bring years of insight and expertise to the McMillan Oil and Gas team. We are excited to welcome them along with their extensive transactional experience and involvement with energy projects spanning all sectors of the industry. Contact our team to achieve your business goals
OF ENERGY VOL 2, ISSUE 1 | FEBRUARY 2020
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Natural Gas Will Again Energize Alberta’s Economy by David Yager
Profile: Chapman Petroleum Engineering Celebrates 35 Years
by Jamie Zachary
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Global Insurers Servicing Our Energy Sector are Doing Right by the Planet
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David Yager | Natural Gas Will Again Energize Alberta’s Economy
NATURAL GAS WILL AGAIN ENERGIZE ALBERTA’S ECONOMY by David Yager
T
he fifth anniversary of Alberta’s forced and painful adaptation to low oil prices, reduced investment and no new pipelines passed late last year. November marked five years since OPEC’s decision to abandon global supply management which subsequently collapsed world oil prices. There has been reduced prosperity and tranquility since. For five years, oil prices have struggled to average half what they were from 2011 to 2014. Four proposed oil pipelines are either dead, stalled or years away from completion. Ignoring collapsed commodity prices, in 2015 new climate activist governments in Edmonton and Ottawa introduced expensive interventionist policies accompanied by huge deficits. Political anger in the West is real and palpable. Almost forgotten in the drama of oil prices and climate politics is natural gas, the commodity that formerly paid the freight. Gas was the biggest reason why Alberta prospered for the 30 years prior to 2015, and why the five-year slump has been much worse than it would have been otherwise. Like the old Joni Mitchell song goes, “You don’t know what you’ve got till it’s gone.” The really good news for the new decade is that natural gas is starting a major comeback. The
outlook for 2020 is sharply improved from last year. If a handful of the gas projects underway are completed, this resource will again play a significant role in the economic recovery of the province and its major industry. Alberta exited the 1980s in tough shape, much like today. Big deficits, low investment and a stalled-out oilpatch clinging to fond memories of better times. But the combination of natural gas prices and export deregulation, new gas pipelines and Alberta’s 1991 royalty regime revisions laid the foundation for a major economic recovery. Oil, which always hogs the headlines, was going nowhere. After the collapse of 1986, oil prices remained in the dumpster for 15 years. Alberta’s production from legacy conventional fields continued to decline. It peaked at 1.4 million barrels per day in 1973 and by 2000 had fallen by half. It would be well into the 21st century before oilsands development began to seriously stimulate the economy. According to CAPP data, Alberta’s gas production remained flat from 1973 to 1983 at about seven billion cubic feet per day (bcf/d). Thanks to pipeline capacity additions, production began to grow in the mid-1980s. By the year 2000, gas output more than doubled
4 • Business of Energy • February 2020
Natural Gas Will Again Energize Alberta’s Economy | David Yager
As important as volume was price. Gas sold for under a dollar per thousand cubic feet (mcf) until 1977. For the next 30 years, gas would average $2.95/mcf, peaking at $8.46/mcf in 2005. For the first decade of the 21st century, the average price was $5.86/mcf. In 2014, gas still fetched $4.36/mcf for the year. Since 2014, the price of gas has fallen further than oil. For 2015, 2016, 2017 and 2018, average gas prices were only $2.64, $2.33, $2.33 and $1.44 respectively. In 2018, oil averaged 66 per cent of its 2014 price. For 2018, gas garnered only 33 per cent of 2014 levels. Brutal. The impact of natural gas on Alberta’s treasury was spectacular. While political legend has it that Premier Ralph Klein was a fiscal management genius, politics is much like oil and gas exploration where the old saying rules, “I’d rather be lucky than good.” In Klein’s first year in office, 1993, the value of all the natural gas produced in Canada (mostly from Alberta) was $7.9 billion. In 2005, Klein’s last full year as premier, the value was $52.8 billion. Natural gas production royalties in the 1993/94 fiscal year totalled $1.4 billion. In the 2005/06 fiscal year, the figure was $8.4 billion. Alberta’s gas royalties in the first decade of the 21st century totalled $55 billion. Canada’s total gas production fetched only $8.6 billion in 2018, 84 per cent lower than 2005. Alberta’s gas royalties for the fiscal year 2018/19 had plunged to only $536 million, a paltry six per cent of 2005’s record. Natural gas paid the freight during the go-go years when the deficit was retired, taxes were low and the economy boomed. One year there was so much cash sloshing around in Edmonton every living Albertan got $400, the so-called “Ralph bucks.” Of the all the reasons cited why this century started with Alberta as Canada’s model of sound fiscal management and enlightened conservative administration, the real driver – natural gas – is rarely mentioned. Except for oilsands and coal, Alberta’s hydrocarbon deposits are deemed “gas prone.” It’s almost everywhere as the CPR learned in 1883 while drilling for water for steam locomotives near Medicine Hat. For years anybody with $100,000 could drill a shallow gas well, put it on stream and call themselves an “oilman.” In large parts of southeast Alberta not hitting gas was less likely than finding some. For the first 15 years of this century, there were 96,192 gas wells completed in Alberta, an average of 6,413 annually. The 2018 total was only 735. The best year ever for drilling in Canada was 2005 at 22,186 wells. Sixty per cent or 13,268 were new gas wells in Alberta. The oil service business was rocking. By comparison, only about 4,000 wells were drilled in Canada last year. North American gas prices began sliding 10 years ago when massive new supplies were unlocked using horizontal drilling and hydraulic fracturing. The discoveries that most impacted Alberta were the massive Marcellus and Utica Shales in Pennsylvania, Ohio and West Virginia. These were close to Alberta’s best gas markets: Ontario, Quebec and the northeast U.S. As more of these customers were connected to closer U.S. supplies, prices and volumes for Alberta gas began to decline. Geologically, Alberta enjoyed significant excitement from the exploitation of massive deposits of oil and valuable natural gas liquids in new formations like the Montney and
5 • Business of Energy • February 2020
Natural Gas Will Again Energize Alberta’s Economy
reaching 16.1 bcf/d, the all-time high. By 2018, it had declined to 12.6 bcf/d, 25 per cent below record production 18 years earlier.
“
David Yager | Natural Gas Will Again Energize Alberta’s Economy
Most of the challenges facing Alberta’s once vibrant junior and intermediate producing sector can be traced back to natural gas.
Duvernay in the northwest. These also contained large amounts of associated gas production. Just what Alberta didn’t need, more gas. Unlike too many places around the world, Alberta is an environmentallyresponsible producer so the gas cannot be flared. This extra gas with no market further depressed prices. Pipeline transportation interruptions from these new supplies in the northwest to storage reservoirs in the southeast periodically collapsed prices. It has not been uncommon for Alberta spot gas prices to go to zero, even negative. Most of the challenges facing Alberta’s once vibrant junior and intermediate producing sector can be traced back to natural gas. The majority of Alberta’s suspended wells formerly produced gas but were shut-in as uneconomic to produce or repair. The growing number of abandoned wells managed by the Orphan Well Association are from once-successful gas producers. However, improvements – on several fronts – are on the horizon. Aware of the gravity of the problem, Jason Kenney’s new UCP cabinet included an associate minister of natural gas to focus on solutions. Working with federal regulators, producers and TC Energy, the tolling system for the NGTL provincial gas gathering system was changed. This immediately improved the Alberta spot price. NGTL will complete a $9-billion upgrade on Alberta’s gas transportation infrastructure in 2021 which will permanently alleviate the plumbing problems. Meanwhile, LNG exports survived October’s federal election and look very promising. LNG Canada is spending, building, hiring and working hard towards a 2025 completion date for flowing gas. This project is joined by Woodfibre LNG in Squamish, Énergie Saguenay from eastern Quebec and Pieridae Energy out of Nova Scotia, a project called Goldboro LNG.
Kitimat LNG looks stalled for the moment after Chevron announced its plan to sell its 50 per cent interest. Although this is part of a global asset rationalization, not necessarily the project itself. If somebody buys it, the increasingly bipolar industry will be just as happy as it was disappointed when Chevon announced its intentions. If they were all (except Kitimat) completed, LNG exports would move about 5.5 bcf/day of gas out of Canada, one-third of current gas production. This would have a huge impact on the natural gas business. Compared to what gas producers have endured in the past five years, you wouldn’t know the place. Politically, Alberta and B.C. have found peace over mutually-beneficial LNG exports and improved gas markets. While climate change alarmists continue to claim LNG exports are as bad as oil or coal for emissions once accidental methane leakage is included, common sense dictates replacing Asian coal with natural gas for electricity generation will make the world a better place. What is interesting about LNG is that B.C. and Ottawa introduced financial support to make LNG Canada viable. For oil, these same governments preferred obstacles like opposing and cancelling pipelines. As 2019 ended, the 12-month futures price for Alberta gas was $1.92. The same price in late 2018 was $1.35, 30 per cent lower. For May 2020, the futures price at year-end 2018 was $1.01. As 2019 ended, it was $1.58, 56 per cent higher. This will only improve with market access. Irrational optimism? Nope. Just numbers. Better B times ahead. OE
David Yager is an oil service executive, oil and gas writer, energy policy analyst and author of From Miracle to Menace – Alberta, A Carbon Story. He lives in Calgary.
6 • Business of Energy • February 2020
Back row Left to Right: Konstantin Zaitsev, Lya Lamoureaux, Rebecca Howe, Wei Wang, Khaled Latif, Grace Teh, Klorinda Kaci and Denis Briere. Front row seated Left to Right: Svetlana Simeons, Ann Chapman, Charlie Chapman and Roger Sakatch.
THIRTY-FIVE YEARS IN THE MAKING
Chapman Petroleum Engineering celebrates milestone anniversary
by Jamie Zachary with photos by Riverwood Photography
I
t’s 1985 and Charlie Chapman has just ventured off on his own to create what would eventually become Chapman Petroleum Engineering.
Long behind him was the sun-drenched fields from the small central Alberta mixed farm he’d grown up on … the years of study at the University of Alberta … those formative days at Sun Oil.
Chapman did just that, rounding up the cows and then some in guiding his diversified petroleum engineering consulting firm to its 35th anniversary in 2020. More than 1,200 clients. More than 6,000 projects. More than 55 countries.
It was a moment of realization for Chapman — one that required tapping into his roots for inspiration.
More than Chapman could have ever envisioned.
“There’s a sense of urgency you get when growing up on a farm,” Chapman says as he leans across his desk at the Calgary beltline office. “When the cows are out, you don’t go in for cookies. You get the cows back in and then head in.”
“In 1985, I was looking from one day to the next,” he recalls. “What’s been the key to our longevity? So many things. I think the biggest thing was as the business changed, we found ways to succeed by adapting — by looking for opportunities elsewhere.”
Chapman Petroleum Engineering - Celebrating 35 Years
Charlie and Ann Chapman.
One of those early breaks came as Chapman turned the company’s attention internationally – growing its portfolio of reserve and economic evaluations for purposes such as annual financial reporting, acquisitions and divestitures, and securities underwriting. “A lot of where we really started to lift off originated with Calgary clients who were getting involved
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CONGRATULATIONS Chapman Petroleum Engineering on 35 years! We wish you many more years of continued success.
with international projects,” says Chapman. “We got involved with how these countries ran their business. And we’ve since put together models for a lot of countries around the world for the various fiscal regimes they have.” Today, Chapman Petroleum Engineering offers a catalogue of services. As Chapman himself describes it, “Our slogan is no job is too small, no job is too big.” However, the core of Chapman’s business continues to be reserve and economic evaluations and resource assessments, which have helped bring several high-profile companies public to the exchanges in Canada, Hong Kong, London and Oslo, among others. Even as early as the mid-1980s and early 1990s, Chapman Petroleum was instrumental in many of the listings on the Toronto Stock Exchange, including Olympia Energy, Canadian 88, Canadian Superior, Neutrino and Vermilion.
Chapman Petroleum Engineering - Celebrating 35 Years - 2
“We evaluated the first well for Vermilion Energy for a roll-in for their public listing and continued to evaluate their company through their early growth stages,” says Chapman. “We’ve established a really nice relationship with the stock exchanges.” The company’s scope has continued to expand to include specialized technical services such as petrophysical analyses, well test design and analysis, formation evaluation (DST) and geological mapping. And in the vein of “no job is too big,” Chapman Petroleum even offers management assistance. “Because of our diversified staff, we’ve been seconded to co-ordinate various well-drilling programs, including a recent project involving the management of up to 170 producing wells in Alberta,” says Chapman. Some of Chapman’s proudest moments have been the company’s regulatory involvement, including being part of legal applications and hearings, as well as in providing expert witness testimony. Chapman himself just recently wrapped up a three-year term on the Oil and Gas Committee of the Canada-Newfoundland & Labrador Offshore Petroleum Board, which is a five-participant committee called upon to organize and preside over regulatory hearings. Chapman Petroleum has also found itself in international dispute resolutions. The company has provided expert witness testimony in forums such as the International Chamber of Commerce in Switzerland. Separately, Chapman Petroleum was an adviser to the Ministry of National Infrastructures in Israel in a dispute between the petroleum commission and an operator that, upon resolution, went on to make the first on-land oil discovery in that state. Moving forward, Chapman Petroleum is going back to the future, so to speak. In 2004, the company was part of a Canada-Kazakhstan umbrella project designed to foster joint venture agreements between the two countries. Over the next decade, Chapman Petroleum successfully worked on several projects for operators in Kazakhstan, including KazMunayGas, the state-owned oil and gas company of Kazakhstan. In the last couple years, the company has re-initiated its presence in Kazakhstan through the founding of Chapman Petro Consulting with a 50 per cent
Chapman Petroleum Engineering - Celebrating 35 Years - 3
partner in Kazakhstan. Under this arrangement the company is assisting with the government’s initiative to reclassify and record the country’s reserves under the international Petroleum Resources Management System (PRMS). “That’s where our real growth focus is right now,” says Chapman. “We’re seen in Kazakhstan as an expert in that area.” While the company’s new venture in Kazakhstan is emerging alongside other projects in countries such as Azerbaijan, India and Mali – where Chapman has been co-ordinating the evaluation and development of the first known purehydrogen reservoir – Chapman believes there continues to be a lot of unrealized opportunities locally. He points specifically to gas-rich areas of the Western Canadian Sedimentary Basin that extends between Saskatchewan, Alberta and northeast British Columbia. “I’m on an advisory board for a company that’s doing a gas-to-liquids project, and I know another associate who is working on a similar project. Given these projects, along with the coal conversion to gas for electrical generation, I see the natural gas business getting stimulated,” he says. “And I see that being a big uplift for the oil and gas industry in Western Canada. That’s where the opportunity is for growth.” Chapman says the company’s longevity hasn’t existed in a vacuum. He credits his staff as being some of the best in their fields. “We have a diversified spectrum of experience from people from across the globe,” says Chapman, noting members of his 15-person international team hail from countries such as China, Russia, Kazakhstan and Albania. “Everyone in this company has special skills, including several languages, that contribute to the group. It’s a very unique group and I’m very proud of them.” He also feels everyone is willing to roll up their sleeves to get the job done – himself included. “One of the lessons I learned early on is that people at the top must participate in the billing along with the other professionals and staff. Everyone has to
carry their weight. That’s how we’ve managed to survive,” he says. Lastly, Chapman says, “clients sense we really care about them. We work extremely hard to meet their deadlines, and we take our professional responsibilities to society and public very seriously.” That’s a message echoed by Kal Latif, geoscience manager at Chapman. With more than 35 years of experience working for major players such as Total, BG Group and Encana, Latif was a former client before joining the team full time. “The team is unique. The way they deal with clients is unique. You feel the compassion that they are looking after your needs. You feel listened to,” says the Egyptian-born Latif, who has called Canada home for the past 25 years. “Many companies will have their own way of doing things. Chapman, however, listens and makes appropriate adjustments to the client’s needs.” Latif adds that because of his international exposure with several major industrial oil and gas players, he, like many others at Chapman, possess the added benefit of having been on the other side of the table. “We understand our clients’ needs better. We know what they mean when they ask for something. We can add better value,” says Latif. Chapman says, “The last cold-call I made was in 1987. Since then, we have continued by word of mouth and repeat business. I had a client who called me this week who we started doing work for in 1985 – one of my first clients.” “The best marketing you can do in a professional services company is to do good work.” Visit chapeng.ab.ca to find out more about Chapman Petroleum Engineering.
1122 4th Street SW, Suite 700 Calgary, AB Canada T2R 1M1 Ph: (403) 266-4141 | Fax: (403) 266-4259 chapeng.ab.ca
Chapman Petroleum Engineering - Celebrating 35 Years - 4
The Heartland Petrochemical Complex | Melanie Darbyshire
Christian Bayle, President & CEO of Inter Pipeline.
THE HEARTLAND
PETROCHEMICAL COMPLEX INTER PIPELINE CEO CHRISTIAN BAYLE ON THE MEGA PROJECT HIS COMPANY IS UNDERTAKING by Melanie Darbyshire
N
ortheast of Edmonton, on a 230-acre piece of land in Strathcona County – Alberta’s industrial heartland – Calgary-based Inter Pipeline Ltd. aims to transform both the province’s petrochemical industry as well as its own energy infrastructure business with a $3.5-billion mega project. The Heartland Petrochemical Complex, construction of which began in early 2018, will be the first integrated propane dehydrogenation (PDH) and polypropylene (PP) complex in North America. The facility will take something abundant and cheap in the province – propane – and turn it into something the world consumes at a much higher price – PP (recyclable plastic) – while creating significant value for all parties involved.
“Alberta has some of the lowest-priced propane globally,” says Christian Bayle, president and CEO of Inter Pipeline. A University of Alberta mechanical engineering graduate, Bayle, who first joined the company in 1997 as a junior engineer, has led it since 2014. “The province produces over 180,000 barrels per day (b/d) of propane and consumes around 60,000 b/d, so we have a huge surplus that gets shipped to the West and Gulf Coasts at very high costs to producers.” The Heartland project, expected to be online in late 2021, will consume approximately 22,000 b/d of locally-sourced propane (12,000 b/d of which will come from Inter Pipeline’s own
11 • Business of Energy • February 2020
Melanie Darbyshire | The Heartland Petrochemical Complex
Redwater Olefinic Fractionator, located nearby) to produce 525 kilotonnes per annum (KTA) of PP. The easy-to-transport plastic, used in the manufacture of a wide range of finished products including consumer packaging, textiles, automobile components, medical equipment and currency, is the single-largest polymer in the world, with global demand forecast to grow from ~74,000 KTA to over 90,000 KTA in 2023. Heartland Complex is being built to compete in a global marketplace. The PP manufacturing process at Inter Pipeline’s complex is estimated to generate 65 per cent less greenhouse gas (GHG) than the global average, and 35 per cent less GHG than the North American average.
Mammoet crane lifts Splitter into place at Heartland Petrochemical site.
“We’re feeding into a nicely growing market,” Bayle explains. “Prices in North America for PP are strong and it’s the cheapest market for us to access. There’s great rail access out of Alberta, particularly into the Midwest U.S. where about 40 per cent of all PP in North America is consumed. There’s also a thriving PP market in Eastern Canada, and we can export globally through Vancouver.” The advantages of shipping PP – small plastic pellets – rather than propane by rail is profound. “PP is one of the cheapest things to transport by rail,” Bayle says. “It requires hopper cars versus pressurized tanks for propane. By producing PP in Alberta, we can transport as competitively to the big market hubs in North America, in some cases at a lower cost, than our competitors. We no longer have a transportation disadvantage for hydrocarbonbased product coming out of Alberta.” An energy infrastructure company born in 1997 as a spin-out of Koch’s Canadian business, Inter Pipeline today has four main business segments: oilsands transportation (comprised of the Cold Lake, Corridor and Polaris pipeline systems); NGL processing (consisting of large-scale NGL straddle plants as well as offgas processing facilities located in northern Alberta); conventional oil pipelines (comprised of the Bow River, Central Alberta and MidSaskatchewan pipeline systems); and, bulk liquid storage (consisting of 23 bulk liquid storage terminals located at terminals across the United Kingdom, Netherlands, Germany, Ireland, Denmark and Sweden).
The Splitter goes vertical at the Heartland Petrochemical site.
Employee works on Splitter at the Heartland Petrochemical site.
The Heartland Complex will diversify and strengthen Inter Pipeline’s existing NGL processing business. It will also be the first in the world where the majority of the plant’s capacity is intended to be contracted under ‘take-or-pay’
12 • Business of Energy • February 2020
arrangements, much like how pipelines are contracted. “We’re not a petrochemical company, we’re an energy infrastructure company,” Bayle reiterates. “We’re undertaking Heartland because it is just another step in the hydrocarbon chain and extracts more value from our products. But we’ll do it within an energy infrastructure business model which allows us to de-risk the facility so we’re not exposed to changes in commodity prices. We’ll have stable cash flow.” Under these contracts, propane producers pay an operating and capital fee to Inter Pipeline in exchange for a fixed portion of capacity at the plant. “Those fees are designed to, when contracted, cover our costs and provide us with a profit,” Bayle explains. “We’ll then sell the plastic pellets on the producers’ behalf. Essentially, they will get, through no investment of their own, a PP-based price for their propane.” Inter Pipeline’s contracts with PP purchasers will be similarly structured. “They will pay a fixed capital fee as well as a propane, operating and delivery cost recovery charge,” Bayle explains. “They will then receive their proportionate share of the PP pellets, at no additional costs. These costs will generally be well below North American market prices because of our transportation and feedstock price advantages.” For example, over a five-year period, Inter Pipeline’s analysis shows an average uplift for propane producers of 110 per cent and a cost savings of 20 per cent for PP buyers. “It’s truly an investment where everybody wins,” Bayle says enthusiastically. “Customers get better prices, we get a strong economic investment and it’s great economic diversification for the province.” To be sure, Inter Pipeline’s investment in the Heartland project evidences its long-term commitment to Alberta. “If we’re going to prosper over the long term, we have to think about our resources differently,” Bayle insists. “Just trying to produce more and more and pushing our way into markets that are ever further away and costly to reach isn’t the best business model. Trying to make investments to add value to our abundant natural resources makes so much industrial logic.” A very large step for the company, Bayle sees petrochemical investments as a major franchise in Inter Pipeline’s future. “Not only propane-based investments,” he adds, “but other NGLs and olefinic liquids.” He points to ethane, butylenes and propylene as potential feedstock for other business opportunities. Two years into construction, Inter Pipeline has thus far spent approximately $1.9 billion on the Heartland Complex, which on some components is ahead of schedule. “It’s a large investment for us, and with any large capital commitment it takes years before you get revenue in the
13 • Business of Energy • February 2020
The Heartland Petrochemical Complex
Heartland Petrochemical site - October 2019.
Melanie Darbyshire | The Heartland Petrochemical Complex
Heartland Petrochemical Complex site construction.
door,” Bayle says. “It requires a lot of patience from our investors. But in two relatively short years, we should start producing significant additional EBITDA per annum for the company.” Although the first of its kind in North America, the project is utilizing globally-proven technologies sourced from international giants such as Honeywell and Grace. “We’re essentially using proven designs,” Bayle explains, “that have been modified to suit Alberta’s climate and our site plan. We’re confident that something that’s never been done before in Canada will be accomplished reliably.” Over 2,000 people are currently working on Heartland, including 150 Alberta contractors, with a total of 13,000 jobs expected to be created over the course of the project. Once up and running, between 200 and 230 people will be employed on site, with another 30 to 50 in the Calgary office.
service. “Government support is very important for mega projects like this,” Bayle explains. “Alberta is still a higher-cost area to construct mega projects given the climate, our relative remoteness and higher labour costs. In order to be competitive, government incentive is important. We’re very pleased to get some help.” The economic return for government, he adds, is already being realized. Through construction of the complex alone there is over a half-billion dollars in various payroll and income taxes being paid. “That’s in addition to the obvious longterm economic benefits over the next 40 to 50 years from this project.”
As construction activity has tapered off dramatically in Alberta since 2014, Inter Pipeline was able to tap a high-quality and eager workforce.
Partnerships with the community have also been formed. Inter Pipeline has invested $580,000 in a three-year partnership with Women Building Futures (WBF), to empower women to pursue careers in the industrial trades. “It’s an underserved area of the employment market in Alberta – women in construction and industrial operating jobs,” Bayle says. “We’ll support through mentoring, pre-apprenticeship and training programs in six different industrial trades. We have high hopes for that partnership.”
“We made a conscious choice to support local industry through the construction of this project,” he continues. “To direct much of the fabrication and construction activity here in the province rather than offshore. We felt it was the smart thing to do business wise but also the right thing for the province. It’s worked out well for us.”
In November, Inter Pipeline announced a 10-year partnership with NAIT to research opportunities to reuse and recycle plastic in Canada. Known as Plastics Research in Action, it will be funded by a $10-million commitment from Inter Pipeline, the largest applied research partnership in NAIT’s history.
The federal and provincial governments have provided $250 million in financial incentives to the project, the majority of which is from the Alberta government in the form of royalty credits, monetizable once the plant hits
A mega project with the promise of immeasurable economic benefits and diversification for the province, the Heartland Petrochemical Complex is great news for Alberta. B It’s cause for everyone to be optimistic. OE
14 • Business of Energy • February 2020
Global Insurers Servicing Our Energy Sector are Doing Right by the Planet | Cody Battershill
GLOBAL INSURERS SERVICING OUR ENERGY SECTOR ARE DOING RIGHT BY THE PLANET by Cody Battershill
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hat are companies really saying when they claim publicly, under intense activist pressure, that they plan to shun our energy sector in the future? I’ll ask it another way. If some international insurers and other financial groups say they plan to shift their business away from us and toward Canada’s competitors, how will these competitors be selected? According to news service Reuters, last summer a coalition of 32 anti-oilsands groups wrote to global insurers and urged them to stop underwriting the Trans Mountain pipeline, which activists hoped would block the delivery of oil from Alberta to B.C. It’s a standard manoeuvre in the activist playbook, dating back to the 1990s and the so-called “war in the woods” that pitted environmental groups against B.C. forestry companies. In the current version, pipeline opponents hoped this move would bring pressure to bear against the federal government to cancel its plan to expand the pipeline.
Of the world’s top 10 oil exporters, Canada ranks number one globally in every single one of the following rating categories: Resource Governance Index 2017; Environmental Performance Index 2018; Democracy Index 2018; and Sustainable Development Index 2019. Further, Canada also ranks first among those same top 10 suppliers in these additional ratings: Global Cleantech Innovation Index 2017; Women, Peace, and Security Index 2018; Rule of Law Index 2019; and Global Peace Index 2019. Who signed the letter pressuring these companies to shun oilsands development? You won’t be surprised to learn signatories included Tzeporah Berman’s Stand.earth, as well as Burnaby Residents Opposing Kinder Morgan Expansion, Greenpeace, Friends of the Earth Canada and others. Some say global capital markets are so large that any one organization that chooses not to provide services will have little, if any, impact on the larger market.
Again, the key question has to be asked: what are these anti-oilsands groups and the insurers that cave into their demands really saying about the Canadian energy sector, especially in relation to Canada’s competitors?
But I say we have every reason to be proud of Canadian energy – of our world-class people, research, technology, regulatory environment, indigenous relations and product that touches virtually every aspect of our lives.
And more important, what should they be saying?
If you want more information on Canada’s incredible record on the environment, health, safety and social justice – or you’d simply like to check my sources on Canada’s top rankings – then B please visit HowCanadaRanks.com. OE
Examples of financial corporations and insurance companies having pledged to stop financing oilsands projects continue to mount. The list of entities that apparently have caved into activist demands include Munich Re, Zurich Insurance Group, Axis Capital, and French firms AXA, Societe Generale, Natixis and Credit Agricole. Here’s what they need to know about global supply and Canada’s position within it.
Cody Battershill is a Calgary realtor and founder/spokesperson for CanadaAction.ca, a volunteer-built organization that supports Canadian energy development and the environmental, social and economic benefits that come with it.
15 • Business of Energy • February 2020
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A MODEST SUGGESTION FOR THE WAR ROOM // FRANK ATKINS
A Modest Suggestion for the War Room BY FRANK ATKINS
T
he Opposition NDP in Alberta do not much like the Canadian Energy Centre, unofficially called the war room. While pretending to be defenders of the oil and gas industry, the NDP claim the war room is a waste of taxpayers’ money because it does not produce any results. There are two interesting points to be made here. First, I find it very interesting the NDP can use the term “taxpayers’ money” while in Opposition. When they were in power, spending money without visible constraints, it was never called taxpayers’ money and they did not dare refer to where the money was coming from (it was mostly borrowed because they had already spent all taxpayers’ money). Second, I am not certain how you could possibly measure any results from the war room. The war room seems to be looking for what is commonly referred to as fake news. A lot of the criticisms of the Alberta oil and gas sector are just biased opinions, coming from people with little knowledge about what they are talking about. This may be fake news, but it is very hard to fight. If I may make a modest suggestion, I think the war room could benefit from a bit of a shift of focus. Yes, fight fake news whenever possible, but there is a much more pervasive target out there called hypocrisy. This comes in obvious forms – such as watching David Suzuki fly all over the world to protest the use of fossil fuels – and also the type of form where you have to put the pieces together. A recent Canadian Press article gives a good example of this type of hypocrisy. The CP article noted that Canada (and most of the rest of the world) is facing a looming airline pilot shortage. In response to this, the federal government is working on programs to train more airline pilots. On
THE WAR ROOM SEEMS TO BE LOOKING FOR WHAT IS COMMONLY REFERRED TO AS FAKE NEWS. A LOT OF THE CRITICISMS OF THE ALBERTA OIL AND GAS SECTOR ARE JUST BIASED OPINIONS, COMING FROM PEOPLE WITH LITTLE KNOWLEDGE ABOUT WHAT THEY ARE TALKING ABOUT. THIS MAY BE FAKE NEWS, BUT IT IS VERY HARD TO FIGHT. the surface, this seems like a government worried about problems in the job market and trying to act to correct these problems. Nice vote getter. However, put this together with the fact that on June 17, 2019, the House of Commons passed a bill declaring a “Climate Emergency” in Canada. The motion referred to climate change as a “real and urgent crisis, driven by human activity that impacts the environment, biodiversity, Canadians’ health and the Canadian economy.” If you believe this, we are not dealing with an everyday runof-the-mill crisis, but something that requires urgent action. Apparently, part of this urgent action involves training more airline pilots. The government seems to have missed the connection between the fact that airplanes use fossil fuels, and the government view that fighting the climate emergency requires reduction in the use of fossil fuels. Perhaps David Suzuki is advising them.
Frank Atkins is a Senior Fellow at the Frontier Centre for Public Policy.
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Haskayne Master of Management Graduates Jump-Starting Careers Nearly 30 university students are jump-starting their careers this February as part of the first-ever graduating class from the Haskayne School of Business with a new designation in Alberta, the master of management. While MBA programs target early to mid-career professionals, and typically provide advanced business knowledge and leadership skills, this new master of management (MMgmt) program builds on the knowledge and expertise that students developed in their undergraduate degrees by teaching them business principles and management competencies. It is designed for graduates with no more than three years of work experience. “We have heard from employers and they want graduates who understand business factors in making organizational decisions,” says Jim Dewald, dean, Haskayne School of Business. “And we have heard from new grads who want to gain business skills to set them apart in their early career. The master of management answers these needs.” As a part of their final studies in MMgmt, the students completed unique capstone projects in both Banff and at WestJet. Working in the mountain resort, the students took their learnings in strategy, finance, accounting and marketing and applied them to case studies with firms in the town. At WestJet, students applied their learnings on four different aspects of the business: onboarding, network connections, labour relations and strategy.
Graduate career and engagement consultant Gillian Robertson works closely with the MMgmt students and says the program offers technical knowledge, real-world learning and cross-disciplinary teamwork. “The Haskayne master of management helps graduates to be more competitive in the job market because they are building skills employers are looking for,” she says. Applications for the September intake of the MMgmt program are now open. Learn more at haskaynemmgmt.ca.
ABOVE: ROBERTA STINN WITH PATRICK MA, BOTH PART OF THE INAUGURAL COHORT IN THE NEW MASTER’S PROGRAM. PHOTO SOURCE: RILEY BRANDT, UNIVERSITY OF CALGARY
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FEBRUARY 2020 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
Understanding the Customer M
ost businesses talk the talk of customer service. Walking the walk is a different story, and much more challenging.
Customer service is a vital part of most business school curriculums and there are steady doses of surveys, articles and management consultant posts about the latest trends and innovative keys to success for targeting and achieving effective customer service. A consensus from recent surveys highlights that consumers value great service in all types of business – whether retail or commercial. More than 54 per cent make purchasing decisions based on customer service, and some 98 per cent would rather talk to a live person than deal with a recording when they call customer service. “Effective customer service starts with being in tune with who your customers are,” says Vikram Bakshi, president of Calgary’s popular Commonwealth Centre and an EO Calgary member. “Some keys to effective customer service are knowing the specifics of what your customers like in all aspects of their buying process. You want to make the experience as simple and efficient as possible.” EO Calgary member Christine Buhr, president and owner of Shakers Family Fun Centre in Calgary, a leader in Canada’s attractions industry, agrees. “Listening to your customer is crucial. Really listening. In business, we sometimes don’t put ourselves in the customer’s shoes enough and we tend to see things from our own point of view. This causes us to put solutions and processes in place that could be more effective. After all, the last thing we want is for them to come to a fun centre – and not have fun!” Some businesses consider social media – a potent fact of contemporary business life – to be a valuable blessing or a risky
curse. “It’s debatable depending on the industry,” Bakshi adds. “Yes, social media feedback is still a good indicator since there are passionate people on either side of the feedback spectrum, who have taken their time to write. For service-oriented businesses like food and hospitality. it can get tricky, because it seems everyone has varying opinions on quality, price, service and value.” Buhr admits, “It certainly cannot be ignored, but I think we need to evaluate the feedback as a whole to see how we can improve. We used to panic when we received a poor review and made adjustments around a single comment. We now take our time to understand what may have caused the situation and how we can really fix the problem without just slapping a Band-Aid on it.” Both agree: customer service involves careful communication … and time. “We look at the feedback and weed out what we should react to. Talk to your customer about their positive or negative review before reacting,” Bakshi says. “Negative feedback must be dealt with right away and is a great tool to find out how you can improve their situation. Positive feedback is the best tool for team building.” “It’s important to understand what’s trending and how that will impact the business,” Buhr notes. “Having a tool to measure customer satisfaction and comments is also handy. We find that if we give our customers an outlet to share their experience, it changes their perception of us simply by how we handle the situation. And positive or negative feedback, we tend not to rush responses. If negative, we take time to understand what went wrong and be prepared to offer a solution, if required.”
Contributing Members:
Christine Buhr
Vikram Bakshi
president and owner of Shakers Family Fun Centre
president of Calgary’s Commonwealth Centre
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
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For membership inquiries: membership@eocalgary.com
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Leader success Women in Calgary Business
Connect. Collaborate. Champion. Three state-of-thebusiness-art challenges – and opportunities. It is also the dynamic focus of Axis Connect, the Calgary non-profit mandated to unite more than 80 organizations focused on women’s initiatives in Calgary and provide maximum return to members. Although women-in-business awareness and attitudes are sluggishly improving and despite encouraging progress throughout the developed world, Canada continues to lag in terms of gender representation on boards, and Alberta is even further behind, says Heather Culbert, independent board director and founder of Women on Boards, and a founding member of Axis Connect Corporation. “Women comprise 13 per cent of board seats on Alberta-based companies on the TSX composite index. The national average is 21 per cent. “Calgary is behind other major Canadian cities like Toronto, Vancouver and Montreal in female-based diversity metrics. One of the major changes over the past year or two has been the awareness that has been created about Alberta business and how far behind the curve we are relative to diversity in leadership ranks and on boards. “Calgary needs greater coordination and advocacy in order to establish a strong foundation for women to be successful,” she urges. Part of the proactive advocacy takes place next month at the inaugural Calgary Influential Women in Business (CIWB) Awards, celebrating business leaders in Calgary’s leading industries. The CIWB Awards, hosted by Axis Connect and the Calgary Chamber, will recognize seven outstanding female business leaders and one male champion in Calgary. Culbert points
out that many great leaders have risen through the ranks to become senior executives, entrepreneurs and mentors in the Calgary business community and the March 5, 2020 awards will recognize some of those leaders and celebrate their phenomenal contributions to the Calgary business community. Throughout December and early January, a well-publicized online campaign called for nominations of prominent Calgary business leaders for the awards, with the honorees chosen by a committee of esteemed business executives based on their professional accomplishments, influence and business community involvement. Culbert is enthusiastic about the Calgary Influential Women in Business Awards as an excellent opportunity to bring awareness to an incredible group of successful women (and a male champion) throughout the Calgary community. “We want to take this opportunity to recognize some of those leaders and celebrate their phenomenal contributions to our city. Through support from the Calgary Chamber of Commerce, Axis Connect has been able to unite initiatives throughout the city that are focused on championing women in business,” she says. “This will have the added benefit of creating additional opportunities for women to further their careers, raise their own profiles and create greater diversity in the leadership levels of business in Calgary. “Despite our economic challenges,” Culbert adds, “we are seeing a much larger awareness of the importance of diversity across all areas of business including leadership and board representation. These challenges require diverse perspectives to work towards solutions, and women at all levels are contributing extensively to Calgary’s success.”
ABOVE: HEATHER CULBERT, FOUNDING MEMBER OF AXIS CONNECT CORPORATION.
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FEBRUARY 2020 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
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Farmland With Unlimited Development Potential Curbside on the Economic Corridor | Online Auction March 3, 2020 at 11 am Location, location, location! 10 quarters forming contiguous packages on the outskirts of Claresholm, Alberta. In total, two kilometres of curbside highway frontage, bordering Highway 2, on the geographic midpoint between Calgary and Lethbridge. This is some of the most fertile land in Western Canada. The west side of Curbside on the Economic Corridor consists of four quarters of prime farmland perfectly laid out along the primary transportation corridor. The land is prime farmland that can be farmed corner to corner with big iron given the contiguous layout of the land. These 503 acres are truly a multi-purpose parcel of land offering up substantial longterm financial power. Curbside does get better. Add a six-pack of quarters on the east of Claresholm and together with the parcels on the west, you have showpiece bookends to that Western Canadian storybook town. This easterly six-pack is made up of the south half of Section 1 and all of Section 36. In total, six highly fertile quarter sections of land bordering an urban centre, all within one mile of one of most major transportation corridors in all of Canada. This six-pack produces on and off the field with SLR on all six quarters. Visit CLHbid.com for more details including ‘en bloc’ bidding and starting bids!
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BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // FEBRUARY 2020
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Reputation for Excellence Mood is an intricate part of the dining experience
So many factors go into making a restaurant experience a genuinely special event: menu selection and quality; consistency; atmosphere; attention to detail; professionalism; and listening. It’s how Centini continues to earn its 17-year Calgary-area reputation for excellence while transforming every private or corporate experience into a memorable special event. “Centini is different,” says Chevonne Miller-Centini, coowner and dynamic driving force behind the popular and iconic Calgary restaurant on Stephen Avenue, “and we work hard every day to achieve that difference…. Aside from the exceptional kitchen and the Centini reputation for exceptional handmade pasta and surprisingly serving more fish and seafood than tenderloin, one of the key aspects that sets us apart is our staff of 20. We’re proud to have the best of the best and our staff is empowered to make the customer happy.” From king crab sushi wrapped in prosciutto di Parma with spicy mayonnaise, balsamic reduction and leeks; seafood linguine with calamari, prawns, scallops, clams and mussels in lobster broth; potato gnocchi Gorgonzola; 14-ounce milkfed veal chop; AAA Angus beef tenderloin; black-and-white sesame-crusted ahi tuna; the aroma of the cream, black pepper and vodka of the Romanoff sauce for pasta; to the spectacular risottos, the innovation and culinary skills of coowner Fabio Centini and the chefs set the incomparable high standards of Centini excellence. Miller-Centini credits the casually elegant decor, including the eclectic collection of important Canadian art, and is enthusiastically proud of the constantly updated and awardwinning wine selection, but points out Centini’s uniqueness
is an intricate combination of various factors because creating a mood is a vital part of the dining experience. “Maybe it’s a casual foursome, a larger retirement party or one of the private rooms being closed off for the privacy of a board of directors dinner meeting, this is an ultimate people business,” she points out. “Our menu is outstanding and our staff are attentive and experienced culinary professionals who work as a team. But so much goes into making absolutely sure that every guest has a special event. “Whether it’s an intimate, private table for two or a corporate event, service is the key. And part of our secret, special sauce,” she laughs. “To be attentive but minimize
ABOVE: CHEVONNE MILLER-CENTINI, CO-OWNER AND DYNAMIC DRIVING FORCE BEHIND THE POPULAR AND ICONIC CALGARY RESTAURANT ON STEPHEN AVENUE.
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interruptions. It’s all about the guest enjoyment. It may be subtle but it matters, a lot. Unobtrusiveness differentiates professional service. It’s a must that we listen for the guest’s needs and details, be attentive and efficient in all we do, not disappear but also not hover. Our professionals just have a sixth sense.” Miller-Centini acknowledges that as the Centini reputation for menu and service excellence continues to grow, there are important new aspects when it comes to the consumerdriven art and science of food, service and the tricky but critical aspects of making special events happen. “There’s no doubt about it,” she adds. “Social media keeps driving trends and styles and Instagram and Pinterest keep setting the bar high. “Besides, people have every right to expect that their private or corporate experience be a flawless, special event.”
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // FEBRUARY 2020
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THE MBA // EDUCATION MBA
THE MBA W H I C H
P R O G R A M
I S
R I G H T
F O R
Y O U ?
BY ERLYNN GOCOCO
T
he master of business administration (MBA) is a longstanding, coveted professional degree, which involves short-term sacrifices for long-term gains. The reasons to pursue an MBA vary from person to person, but in the end, possessing the degree comes with both pre- and midcareer benefits. In Calgary, the Haskayne School of Business offers six different MBA programs, currently only delivered in an in-person format. With so many options, which program is right for you?
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THE MBA // EDUCATION MBA
Executive
Daytime MBA Designed for early- to mid-career professionals, this program is 20 months long and helps students develop the critical thinking and leadership skills needed to achieve career goals. A full-time program, it includes a combination of block week, day and evening classes. This path is intended for individuals with a four-year undergraduate degree and two to seven-plus years of professional work experience.
Strengthen your competitive advantage.
Evening MBA Also appropriate for early- to mid-career professionals, this program is 32 months long and offers the same learning outcomes as the Daytime MBA, however, runs only part time, with a combination of block weeks and evening classes. This format allows individuals to maintain their full-time jobs. Individuals must already have a four-year undergraduate degree and two to 10plus years of professional work experience.
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THE MBA // EDUCATION MBA
THE ACCELERATED MBA IS GEARED AT EARLY- TO MID-CAREER PROFESSIONALS AND RUNS 12 TO 24 MONTHS IN LENGTH. IT IS DESIGNED TO ENHANCE STUDENTS’ BUSINESS ACUMEN, CRITICAL-THINKING SKILLS AND LEADERSHIP CAPACITY TO ACHIEVE THEIR PROFESSIONAL GOALS.
Accelerated MBA
Thesis MBA
The Accelerated MBA is geared at early- to mid-career professionals and runs 12 to 24 months in length. It is designed to enhance students’ business acumen, criticalthinking skills and leadership capacity to achieve their professional goals. This program is a combination of block weeks with day and evening classes. It is built specifically for graduates of a four-year business program from a recognized/accredited Canadian or U.S. post-secondary institution with two-plus years of professional work experience. This MBA option saves participants up to 45 per cent in tuition cost, as well as significantly reduces the program length.
The Thesis MBA is designed for those interested in pursuing an intensive, research-based program within the Haskayne School of Business and runs between 12 to 24 months in length. It combines block weeks with daytime and evening classes. The curriculum offers a challenging program suitable for those strongly interested and committed to research. It’s important to note that choosing a thesis-based graduate degree should not be considered a quick way to completing an MBA degree. The Thesis MBA degree is offered to students who possess a bachelor of commerce degree or equivalent.
Combined MBA The Haskayne School of Business offers Combined MBAs with the faculties of law, nursing, Cumming School of Medicine, School of Public Policy, and School of Architecture, Planning and Landscape. This full-time program is between 24 to 48 months in length and is a combination of block weeks, day and evening classes. To optimize the financial investment and time commitment, students are awarded degrees by both faculties without completing the full complement of courses in both programs. This program is intended for individuals with a four-year undergraduate degree and two-plus years of professional work experience.
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Executive MBA For mid- to late-career executives, the Haskayne Executive MBA program runs 22 to 24 months and is designed to empower students to enhance their leadership ability, grow their network and advance their careers. This part-time program is a combination of block weeks, alternate Friday/ Saturday classes and an international study tour, intended for individuals with a diverse educational background and seven to 20-plus years of professional work experience. Choosing to pursue an MBA isn’t an easy choice. But for many, it’s a necessary next step in order to accelerate their career. Such was the case for Matt Pisko, senior strategy manager at Telus. While living in Vancouver in 2001, Pisko says he was
Do you want to grow your business? ready to take his career to the next level. “I needed to do a bit of an upgrade on my understanding of basic business fundamentals. Most positions preferred candidates with advanced business administration degrees and I wanted a change in my career that would challenge and excite me.”
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Pisko explains that he wasn’t prepared to become a full-time student and stop working, especially given the high cost of living in the Lower Mainland. “I saw value in an Executive MBA program based on attending a few meetings with administrators and potential student candidates.” He adds that his chosen program allowed him to complete the requirements in just 22 months, while working full time. There also was value in the learning model offered with his program. “Boardroom learning teams utilized videoconferencing technology to attend biweekly classes,” says Pisko, “where I could leverage the expertise of those team members who were accomplished in their own right to extend and amplify my own knowledge and work collaboratively to solve problems, just as we do in my day-to-day job today.” For Colleen Tynan, director of WestJet’s Contact Centre, completing an MBA was a personal journey. Tynan says, “I had a strong desire to know that I could accomplish it. I was internally driven and my MBA wasn’t for anyone and anything else. I knew
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THE MBA // EDUCATION MBA
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that it would not hurt my career, but it was never about completing it to get something in return. In fact, I think I would have struggled completing it if it was for someone or something else. I am very happy that I made the choice I did.” Tynan is proud of the fact that shortly after starting her MBA, she received a promotion to become a member of WestJet’s global leadership team. “While I don’t believe that it was the sole reason I was promoted, I do believe that it definitely assisted me. Having a growth mindset is something that all great leaders require, and as I continue to learn, I have confidence in my career being leveraged by my MBA.” Caitlin The graduated with a nursing degree and spent many years working in a hospital. She eventually decided to get back into the classroom and pursue an MBA at Haskayne School of Business. She has no doubt that her additional educational credentials have helped her grow within the medical field. “My MBA has provided me career opportunities that I would not have been able to have with just a nursing degree. The experience and knowledge I gained from the MBA
SMWL.COM ABOVE: CAITLIN THE, HASKAYNE SCHOOL OF BUSINESS MBA GRADUATE.
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THE MBA // EDUCATION MBA
“MY MBA HAS PROVIDED ME CAREER OPPORTUNITIES THAT I WOULD NOT HAVE BEEN ABLE TO HAVE WITH JUST A NURSING DEGREE. THE EXPERIENCE AND KNOWLEDGE I GAINED FROM THE MBA PROGRAM HAS CONTRIBUTED TO MY PROFESSIONAL PERFORMANCES, SUCCESSES AND RECOGNITIONS.” ~ CAITLIN THE
program has contributed to my professional performances, successes and recognitions.”
When selecting an MBA program, it’s advisable to conduct research to ensure a well-rounded education. Dr. Martin Halek, director of MBA programs at the Haskayne School of Business, says, “We are committed to empowering students to become leaders as they live, work and learn. Our program is built on a foundation of academic excellence and realworld expertise and encompasses six elements that are critical to maximizing students’ experience both in and beyond the classroom: an enhanced understanding of
19-0000527
While most want to leverage their existing careers, others decide to pursue an MBA to completely change career paths. Glynn Pearson, manager of business development at a pipeline service company, says, “I was unhappy with my career and trying to change direction and saw the MBA as a way to move towards more responsibility and intellectual satisfaction.” Pearson adds, “I liked the way my program specialized in mid-career learners and their delivery methodology. An MBA is a toolbox that gives you good analytical skills and the ability to speak the language of the subject matter experts in business.”
business principles; unique degree specializations; an immersive and enriched learning experience; flexible programs; a connected and supportive network; and access to one of Canada’s most dynamic business communities. Core courses provide students with the functional tools and knowledge they need to confidently step into a leadership role and leverage their career.”
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THE CALGARY CHAMBERâ&#x20AC;&#x2122;S NEW CHAIR // COVER
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THE CALGARY CHAMBER’S NEW CHAIR // COVER
THE CALGARY CHAMBER’S NEW CHAIR BRENT COOPER ON THE PATH FORWARD
BY MELANIE DARBYSHIRE
A
s he begins a two-year term as board chair of the Calgary Chamber, Brent Cooper is excited by the opportunity that lies ahead. No stranger to the Chamber – he has been involved with the organization for the past seven years – Cooper looks forward to utilizing his skill set to ensure a high level of collaboration at the board level. “The Chamber has an important role to play and I am honoured to play a role in helping steer it; I think it’s going to be a really rewarding experience,” happily offers the Calgary lawyer, who took over the chairmanship on January 1, 2020. A partner at McLeod Law LLP who focuses primarily on business law, Cooper and his firm first became involved with the Chamber’s Small Business Week (SBW) in 2013 as the official law firm partner. As a member of the Chamber, McLeod Law saw SBW as a way to grow its own branding and messaging. “At that time, SBW was still under-recognized and after our first year involved, we saw it take off,” Cooper reminisces. “The Chamber was absolutely phenomenal. We’ve seen them evolve first-hand.” Today SBW, which takes place every October, is one of the Chamber’s signature events. With a full week of programming and events specifically tailored to Calgary’s small business needs, it is Canada’s largest celebration of small business. “It’s a really great event,” Cooper says, “and it’s been fun being a part of its growth. Today, we [McLeod Law] see ourselves as partners in SBW.” Indeed, collaboration is Cooper’s modus operandi. “I know, undoubtedly, other board members are smarter and more
experienced than me on any particular issue,” he says. “So, I think it’s really important for me to make sure that their voices are heard by our management team. Then I get to learn along the way. I’m hoping to encourage a lot of interaction and collaboration.” Cooper originally joined the Chamber’s board in 2014. He has sat on the governance and human resources committee, chaired the policy directions council and was vice chair last year. “It’s absolutely been a positive experience for me, and for the firm as well,” he says. “It’s given us a platform to spread our wings as a firm and express ourselves when it comes to branding and getting involved in various ways with the business community.” During his time on the board, the Chamber has undergone some major changes, not least of which included the search for and hire of a new president and CEO. Sandip Lalli was chosen for the role and joined the Calgary Chamber in April 2018. “Sandip has been a strong, steady leader during this time of change in the city,” he praises. “It’s been a wonderful experience having her as our CEO. I’ve enjoyed working with her and I look forward to what comes next.” “Our board of directors are passionate volunteers who generously donate their time, expertise and insights to build a business community that nourishes, powers and inspires the world,” says Lalli. “With Brent as board chair, we will continue to have strong leadership and innovative ideas around the board table. I look forward to all that we will accomplish together in the years ahead.”
LEFT: BRENT COOPER, CALGARY CHAMBER’S NEW CHAIR. PHOTO SOURCE: EWAN PHOTO VIDEO
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THE CALGARY CHAMBER’S NEW CHAIR // COVER
Cooper will be the first with a formalized two-year mandate approach to the chair position, and will continue in the role to the end of 2021. “For the sake of continuity, we’re switching to two years,” he explains. “There’s no doubt, having been vice chair and on the board, that you bring a lot more continuity and background to the relationship with the CEO.” While his term will be on an ad hoc basis, Cooper expects to formalize the change to the Chamber’s bylaws during this tenure. A Manitoba native, Cooper was born and raised in Winnipeg and attended the University of Manitoba. He cut his law teeth in Brandon, where he had a general litigation practice focused initially on criminal, matrimonial and then ultimately business law. In 2000, Cooper, his wife Karen and their two young daughters moved to Calgary.
“I had a great law practice back in Manitoba, but we were looking for something a little bit bigger, opportunities for our kids as they grew up,” he says. “I’ve always considered Calgary the capital of the Prairies. We came here because we thought it was the land of opportunity and because of an attitude that I distinctly recall. My wife and I talked about the ‘can-do’ attitude in Calgary.” It’s something he’s always experienced here. “This city is entirely open-minded,” he marvels. “They don’t care what your last name is, about your family background or your prior connections. If you can deliver skill with passion this city gives you a chance.” His chance was at McLeod, which he joined upon arrival in Calgary. “I was one of their first business litigators, and
ABOVE: BRENT COOPER ATTENDS A LEADER’S BREAKFAST EVENT AT THE CALGARY CHAMBER ON DECEMBER 10, 2019. PHOTO SOURCE: ADAM BADER, CALGARY CHAMBER
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THE CALGARY CHAMBER’S NEW CHAIR // COVER
I think the firm’s 21st lawyer,” he says. “We now have 55 lawyers! We try to be really entrepreneurial and bring our services at a price point that is a bit less than some other firms in town. It’s a proven success. Our sweet spot is small and mid-sized businesses and entrepreneurs. We also use technology quite a bit to deliver efficiencies.”
LOCAL SENTIMENT, AT PERHAPS AN
With short-, medium- and long-term plans, and cognizant of the major economic challenges facing the city, Cooper has his work cut out for him. He remains undaunted. “The business world is becoming a more competitive space and we have to continue to focus on making sure the community understands the value that the Chamber brings to our local economy.”
CONVERSATION FROM NEGATIVE
Today, the Chamber’s membership totals over 1,400, with members of every size from every sector. “Membership is strong,” Cooper confirms. “We’re always interested in membership retention and it’s been trending in the right direction the last few years. Obviously, we’re very interested in maintaining that trend.” Innovation is key, he says, in terms of the way the Chamber delivers events, policy and advocacy. For example, in December it announced a $1-million investment in InterGen Capital, a scale-up fund for Calgary companies that are ready to take the next big step to grow their business. “We’re putting our shoulder to the wheel,” Cooper says proudly. “It’s real money from the Chamber’s investment fund, an expression of our optimism in the local economy and that things can be done.” Another Chamber-led initiative is the Canadian Global Cities Council (CGCC), an organization of eight chambers from across Canada. “We’re trying to harness the power of the chamber movement by convening forums and events with business people right across Canada,” Cooper explains. “To come together and talk about specific issues that perhaps aren’t being sufficiently discussed.” In early October, the CGCC held a hugely-successful natural resources and climate forum. “We brought business people from across Canada to come and talk about what we call ‘AND’ conversations,” he says. “Where we could talk about climate change and advancing our natural resources sector, all at the same time. It was really inspiring and indeed important to have people discussing these ever-relevant issues of the day and looking for solutions.”
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ALL-TIME LOW, IS ONE CHALLENGE THE CHAMBER IS TACKLING HEADON. THE AIM IS TO CHANGE THE TO POSITIVE. “WE FEEL THAT THE ECONOMY IS READY FOR MORE POSITIVE DISCUSSIONS AND ACTIONS,” HE SAYS. An agri-sector focused forum was held on January 16, again focused on encouraging “and” conversations, as well as innovations in the agribusiness sector, again with participation from right across the country, including Quebec. Local sentiment, at perhaps an all-time low, is one challenge the Chamber is tackling head-on. The aim is to change the conversation from negative to positive. “We feel that the economy is ready for more positive discussions and actions,” he says. “We’ve got to lead,” he reiterates. “We have to take a leadership position, particularly in terms of expressing positive stories that are happening and injecting informed hope into the marketplace.” It’s equally important that the Chamber remains nonpartisan. “We call ourselves the ‘podium of record’ for various government levels,” he says. “We examine every issue through a business filter. Sometimes that means we have to take positions that are less than popular.” Such was the case with the Chamber’s position last fall regarding city council’s decisions on the division between residential and non-residential taxes. The Chamber’s proposal recommended a change to the non-residential to residential property tax ratio to 3.1:1 by 2021, resulting in a tax split of 52 per cent residential to 48 per cent nonresidential. Late last year, the Chamber’s advocacy efforts paid off as the city made this shift.
To improve its policy advisement function, the Chamber recently resolved to develop a government relationship committee with policy as part of its mandate. The idea is to ensure the Chamber is ahead of the curve on policy, by having the committee meet with the Chamber’s policy leadership team, community and board members. “We must be ahead of the curve and future-oriented,” Cooper adds. “We have a good go-to group of members in the community to reach out to when certain issues arise and they help inform the Chamber. This committee will also be able to provide guidance and help identify longer-term issues and trends.”
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In addition to his law practice and role as Chamber chair, Cooper also represents McLeod Law at TAGLaw, a global alliance of law firms, as well as teaches and gives seminars in employment and business law. He and his wife are supporters of Calgary Opera and Cantare Children’s Choir, and have been supporters of Spiritus Marching Band Association and École St. Cecilia Charitable Society. Despite all the economic headwinds bruising Calgary, Cooper’s outlook for this city remains bright. “The can-do attitude is still here,” he insists. “I’m starting to notice, in the circles I travel in, that people increasingly want to convert can-do into will-do. I believe that Calgary is still the land of opportunity.”
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // FEBRUARY 2020
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THE KIDS’ TABLE // EVENT PLANNING & CATERING
THE KIDS’ TABLE THE VALUE IN ENTERTAINING CLIENTS’ CHILDREN
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THE KIDS’ TABLE // EVENT PLANNING & CATERING
BY DANYAEL HALPRIN
C
hildren stuffed handfuls of buttery popcorn into their mouths in faces aglitter with snowflakes as they eagerly awaited the arrival of beloved Olaf. And the house lights darkened….
With all the pressures and intensity of boardroom meetings and the overall seriousness of being an adult in the corporate world, client family events offer a fun and casual setting to engage with business clients and colleagues. There’s no denying the best time is happening over at the kids’ table.
Of the many client family events hosted by Burnet, Duckworth & Palmer LLP (BDP) over the years, its annual movie screening is an all-time favourite, and a tradition started back in 2011 with Spy Kids 4. On a Saturday morning this past November at Cineplex Odeon Westhills, BDP treated 700 guests to a screening of the sequel many have been waiting for – Frozen 2. Guests enjoyed an open concession, continental breakfast and airbrush tattoo artists. How nice to be treated to an event your family had already been planning on attending.
“A family event is a nice change of pace. The venue is casual, it’s in a low-stress environment, people are dressed casually, they’re relaxed and – they’re not talking about work!” says Jackie Muller, marketing and business development specialist at BDP. It’s also an opportunity to get to know clients in a different way. “Seeing people parenting can be quite humanizing,” says Muller, laughing.
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THE KIDS’ TABLE // EVENT PLANNING & CATERING
In the 17 years she has worked as a party planner for many large businesses, Calgary’s Jennifer James says while some businesses cannot justify the expense of throwing an adult party during recessionary times – and end up cancelling or scaling it down – the children’s party is the one event that never gets cut. “I think there’s a feel-good element about honouring that relationship with the children,” says James of Jennifer James Events. Businesses want to make sure their employees and clients know they value family and care about their kids; and, it’s one “work” event that brings everyone together, instead of the optics of the job taking parents away from their children. With people busier than ever these days, businesses strive to align their relationship building with their clients’ personal priorities and interests. In the same vein as Take Your Child To Work Day, these events can be looked at as opportunities for children to observe their parents in their work habitat and the impact they have on people. “You work with this many people?!” a child will say with wide-eyed awe and admiration. (Though younger ones might also think that a magician pulls quarters out of their parents’ ears every day at the office.) And learning more about clients’ children by seeing them express who they are and their talents at these functions adds another layer to the client relationship. In January 2019, BDP invited clients’ daughters to a skating and hockey skills session run by several members of the Calgary Inferno women’s hockey team. About 50 girls, aged six to 12, came out to the drill practice at the Stampede Corral, followed by lunch and a panel discussion highlighting the empowerment of women in sport. For Royal LePage Benchmark – in the business of moving homes, mostly for families – it’s completely fitting to host events that include children. Six years ago, the company moved into its Fisher Park location with a 9,500-square-foot atrium that screamed “host a party!” and that is what they’ve done at Christmastime ever since.
artists and, of course, Santa. The parents really like the Santa visit because it provides another opportunity for their children to see him instead of having to drag them to the mall, chuckles Royal LePage Benchmark broker/owner Corinne Lyall. “We’re really family-focused and all about work-life balance,” she says. “We like to show our gratitude for the business we receive and create a personal touch not just for the parents but for the children as well.”
The atrium is divided in half, one side for adults and the other for children. The Royal LePage event committee plans the event for 140-200 guests, hiring different entertainers over the years such as magicians, face-painters, caricature
Royal LePage has had a long-standing relationship with the Children’s Cottage Society, a non-profit organization that supports families and helps them get back on their feet. This past December, in a sponsorship partnership with the ABOVE: DAUGHTERS OF BURNET, DUCKWORTH & PALMER CLIENTS PARTICIPATE IN SKILLS PRACTICE AND PANEL DISCUSSION WITH CALGARY INFERNO WOMEN’S HOCKEY TEAM. PHOTO SOURCE: BDP
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THE KIDS’ TABLE // EVENT PLANNING & CATERING
Calgary Hitmen, they were excited to create a client family appreciation event that further incorporated the organization. At the Hitmen games on December 6, 8 and 15, Royal LePage set up a booth to raise cash donations and/or accept new toys for its 10th annual toy drive for the Children’s Cottage Society. Royal LePage Shelter Foundation matched the cash donations and at the December 15 event, the real estate company invited more than 200 clients with their families to a sponsored luncheon in the Saddledome’s Chrysler Club followed by the hockey game. “Everyone loved the event and that we were doing good in the community,” says Lyall. For the past 10 years, Jennifer James has planned the employee kids’ Christmas party for a large accounting firm in Calgary, which has been held at the most kid-friendly venue of all for the last three years, the Calgary Zoo. (The law firm McLennan Ross LLP also hosts its popular family client
event there called Breakfast with Lemurs, Lions & Lawyers!) With a guest list of 500 plus, there are two brunch seatings in the Safari Lodge along with multiple craft tables, a cookie decorating station, face-painting, a fantastic kid-friendly lunch catered by the zoo, photos with Santa and, this year, a s’mores bar. After the event, families are welcome to spend as much time as they wish walking around the zoo. Prior to 2017, the accounting firm held this event at Spruce Meadows in Congress Hall, and afterward families checked out its hugely-popular Christmas market complete with reindeer. “Kids’ parties are full of magic and fun! They really do take joy in the little things,” says James. “It’s a worthwhile investment for companies to consider because it makes employees feel good about the culture of their company.” And the key to a successful event for this young clientele? “You can never go wrong with a great face-painter!” says James. Oh, to be eight years old….
ABOVE: JENNIFER JAMES OF JENNIFER JAMES EVENTS.
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A BEACON OF HOPE // CONSTRUCTION
A BEACON OF HOPE
PROPONENTS ARGUE NEW EVENT CENTRE SIGNALS CALGARY IS OPEN FOR BUSINESS AGAIN
BY JAMIE ZACHARY
T
he long-awaited approval of a $565-million event centre east of downtown turns the tide for a city that’s been beaten down in recent years by mis-steps and misfortune, say advocates. Those involved in the freshly-signed deal between the City of Calgary, Calgary Sports and Entertainment Corporation and the Calgary Stampede say it is a much-needed economic win for all Calgarians – especially given ongoing woes in the energy sector and the inability to move forward on initiatives such as the 2026 Olympic Games. The deal will bring a new multipurpose centre to Calgary in 2024 and anchor an arts and entertainment district in East Victoria Park. “It’s an important piece to the vibrancy of the city,” says John Bean, president and CEO of Calgary Sports and Entertainment Corporation (CSEC), which owns the Calgary
Flames and has signed a lease that will keep the NHL team in the city for the next 35 years. “We have taken a few steps back, including stumbling on the Olympic file. So, it was really important for the city that we were able to provide a path forward. It’s a bit of adrenalin. We need some adrenalin in this city. We need to get some mojo back.” Bean adds this deal – in which the city agrees to pay $290.4 million, including demolition costs for the Saddledome, while CSEC contributes $275 million on top of operating costs – wasn’t about the Flames or “subsidizing millionaires and billionaires,” as many critics have phrased it. “This was about money being directed to build an event centre for Calgary that’s going to help drive a number of great concerts, community gatherings and more,” he says. “The city has a vision ... and we’d like to be supportive of
ABOVE: THE NEW EVENT CENTRE WILL INCLUDE A TWO-BLOCK COMMUNITY GATHERING PLACE AND STREET-FACING BARS AND RESTAURANTS THAT ARE MEANT TO ATTRACT CALGARIANS YEAR-ROUND. PHOTO SOURCE: CALGARY MUNICIPAL LAND CORP.
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // FEBRUARY 2020
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A BEACON OF HOPE // CONSTRUCTION
that. They’ve asked us to come to this area, and we are. And if we can be a catalyst for more high-density housing that’s going to come around this area, you bet.” The deal also provides CSEC with options to purchase a parcel of land that was formerly home to the Enoch Sales House, as well as a 50,000-square-foot spot along the Elbow River that is currently home to the city’s bus barns. Initial estimates, from the City of Calgary, project returns of around $400.3 million over the next 35 years in direct revenue through a facility fee, naming rights, streetfacing retail property taxes, amateur sports payments and community engagement programming. Coun. Jeff Davison says those numbers are just part of the story. He argues this is the right deal at the right time for Calgarians – and will send a shock wave of economic opportunities for years to come. “It shows we are willing to invest in our own city. We believe in this district, and we are doing more than just talking about it,” says Davison, who has been a vocal supporter of a new event centre deal since being elected in 2017. “Calgarians have been looking for something to get behind and deem as a win. When you can build a facility and stand a district up, you can show how we can do things together by partnering with the private sector and encouraging capital to come into our city. I think that’s where we’re going to start seeing the turnaround in the glut that we’ve felt in the city.” He adds Calgarians couldn’t pass on an opportunity for a private sector partner to contribute to a city-owned facility on city-owned land without increasing operational dollars – “and, by the way, it will end up paying for itself – that’s just more of what we need to do in this city. “For me, it was about ... getting to where we want, which is the development of a tax base where one has not existed before,” says Davison. A study released by the firm Ernst & Young (EY) and presented to city council in January 2019 projects $1.7 billion in capital spending (or spending in the economy)
from 2019-26 based on three projects in the Rivers District: expansions to Arts Commons and the BMO Centre, along with construction of the event centre. The study, commissioned by Calgary Economic Development and Calgary Municipal Land Corporation (CMLC), also forecasted nearly $300 million in annual economic activity from the facilities starting in 2024. The study noted 4,750 full-time jobs would be created during the construction phases of the projects. Another 1,536 permanent jobs would be created once the new facilities are open. “It’s very positive – both on the economic and social benefit sides, in terms of what they’ll bring to this community and this city,” says Clare LePan, vice president of marketing and communications with CMLC, the development manager for the event centre and BMO expansion. LePan points to comparisons in the study with four other projects: the ICE District in Edmonton, Union Station in Denver, the Arena District in Columbus and Nashville Yards. In all cases, after the initial investment had been made, the comparator jurisdictions experienced significant levels of ABOVE: JOHN BEAN, PRESIDENT AND CEO OF CALGARY SPORTS AND ENTERTAINMENT CORPORATION. PHOTO SOURCE: CALGARY SPORTS AND ENTERTAINMENT CORPORATION
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A BEACON OF HOPE // CONSTRUCTION
“THE CITY HAS A VISION ... AND WE’D LIKE TO BE SUPPORTIVE OF THAT. THEY’VE ASKED US TO COME TO THIS AREA, AND WE ARE. AND IF WE CAN BE A CATALYST FOR MORE HIGH-DENSITY HOUSING THAT’S GOING TO COME AROUND THIS AREA, YOU BET.” ~ JOHN BEAN follow-on private investment related to restaurants, hotels, retail and commercial opportunities. “Calgary has the same economic opportunity in front of it, as well,” says LePan.
Court Ellingson, vice president of research and strategy at Calgary Economic Development, agrees there was a clear benefit to the construction and operation collectively of the facilities in those four cities. “There was also an understanding that of any other jurisdiction we looked at, there were perceived increases in vibrancy [and] property value uplift in proximity to those districts,” he says. “In each case, the overall perception of vibrancy of that district was felt to be raised ... to be elevated. This is something I think can’t be ignored here in Calgary.” The event centre’s impact on tourism can’t be ignored either, says Ellingson. He anticipates it will not only attract or keep people locally by bringing additional concerts and events to the city, but will also pull tourists from elsewhere.
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thevalardgroup.com BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // FEBRUARY 2020
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A BEACON OF HOPE // CONSTRUCTION
Bean estimates Calgary has lost out on more than 50 concerts alone in the last three years due to a lack of a suitable facility – 15 to 20 per year since Rogers Place opened in Edmonton in 2016. “If you start tracking postal codes of who is going to concerts in Edmonton, we’ve become net exporters of tourism dollars,” he says. “It’s a very large number.” Calgary Construction Association president Bill Black says the new event centre and BMO expansion couldn’t have come soon enough for Calgary’s commercial construction industry. Buoyed over the past five years by a successive run of highprofile projects – from the South Health Campus to the Calgary International Airport expansion and numerous highrises in between – these anchor projects have started to dwindle.
“If you take the event centre out, you create a significant amount of added concern. There’s nothing else on the horizon of a large and significant nature,” says Black, whose association represents 850 member companies in the region. “Our members are stretched out. Some are busy. Some are doing OK with some mid-sized to smaller work. But it’s a stressful time for lots of them.” Construction on the event centre is expected to begin in the third quarter of 2021 and be ready for the start of the Flames’ 2024-25 season. “While it’s tempting when times are tough to say you’re not going to spend anything, the problem is if you stand still while the economy is in a hiatus, you run the risk of falling even further behind,” concludes Black. “Cities like Calgary still have to grow to be considered globally viable.”
And with much of the same expected in 2020, Black says his members are looking at even fewer prospects moving forward.
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FEBRUARY 2020 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
ONLINE TRADING FACTS OF LIFE // INVESTING
ONLINE TRADING FACTS OF LIFE
INVESTMENT SAVVY FOR 2020
BY JOHN HARDY
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lthough many investment professionals, analysts and advisers emphatically underscore the essentials of research, strategy, goals and investment savvy, they acknowledge that online trading – although tremendously popular – is a unique DIY project. Like other aspects of life, communication, science, medicine and business, the impact of technology is inevitable and enormous. Long before the Internet, market trading was mostly a service of stockbrokers in person or via the phone. The relationship between client and stockbroker was special. Online trading was initially a daring and radical shift from the traditional and often long-term one-on-one relationships – hectic cluttered and noisy trading floors and their mantras of “buy” and “sell”!
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // FEBRUARY 2020
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ONLINE TRADING FACTS OF LIFE // INVESTING
“People assume that investing online means being an active trader and that it’s complicated and difficult,” explains Edward Kholodenko, president and CEO of Questrade, boasting 20 years of experience challenging the status quo as Canada’s leading, non-bank online brokerage with over $9 billion in assets. “The vast majority of growth in online investing comes from people who would qualify as regular investors instead of traders, looking to take a more hands-on approach to their investments, buying individual stocks or ETFs and making use of easy-to-use educational resources to help inform their choices. “It is important that anyone who invests is clear about their goals, time frame and risk tolerance before they invest, so their choices reflect their individual goals and needs.”
“UNDERSTANDING SOME OF THE BASICS AROUND THE TYPES OF INVESTMENTS (LIKE STOCKS, MUTUAL FUNDS, ETFS) AND WHERE THEY CAN BE HELD (LIKE CASH ACCOUNTS AND REGISTERED PLANS) WILL HELP CONFIDENTLY INVEST TOWARDS ACHIEVING DEFINED GOALS,” SANDRE SUGGESTS. “Canadian investors were first able to direct their own investment strategies in 1983, with TD being the first bank to establish a discount brokerage in early 1984,” says Bruno Sandre, associate vice president of national sales and client education at TD Direct Investing. “Online investing was first introduced by TD in Canada in 1996 with the launch of WebBroker, with online investing first taking off in the late ’90s and early 2000s, as the Internet became more pervasive in Canadian households.” As with many new ways of doing things that involve transition and change, there are lingering misunderstandings and faulty assumptions.
Today, traders and investors can access a full suite of trading products across global markets using their computers – buying and selling financial securities through an online brokerage firm. A trader who uses an online brokerage service is provided with an online trading platform and a computer software program to place orders for financial products. Trading platforms act as the hub, enabling investors to buy and sell stocks, bonds, options, futures, CFDs and currency (forex) pairs. Included in the platform are tools used to track and manage securities, indexes and portfolios as well as research aids, live-streaming quotes and updated news releases from multiple vendors, all of which are necessary for profitable trading. Despite the tremendous impact of technology on investing, education and reliable information remains vital. “The extent of the online investor’s financial literacy is essential,” cautions Dr. René Wells, CFA, finance instructor at the Haskayne School of Business at the University of Calgary. “The investor’s financial grasp to take investment decisions that are reasonable in term of the risks borne and achieving personal, specific goals are important. Unfortunately, many investors overestimate their financial literacy or are too easily influenced, leading to ill-advised investment decisions.” He also cautions that conventional trading avenues may have built-in Canadian security features not available for online
ABOVE: BRUNO SANDRE, ASSOCIATE VICE PRESIDENT OF NATIONAL SALES AND CLIENT EDUCATION AT TD DIRECT INVESTING.
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ONLINE TRADING FACTS OF LIFE // INVESTING
trading. “In various ways and with regulations, investors in Canada are protected if they are egregiously taken advantage of by service providers. But they are not protected at all from bad investment decisions they made on their own or by acting based on advice received.” Online trading experts echo the urge for research and realism in planning and expectations. “There are some common mistakes that we see typically new investors make when they first start,” Sandre warns. “The first is not identifying investment goals. If you are looking to use the proceeds of your investments to pay for a goal that is approaching within a short time frame, that usually means considering products or balancing your investments to be lower in risk than if you are preparing for longer-term goals. Whether targeting to buy a home or prepping for a child’s education, it influences the approach needed. “Understanding some of the basics around the types of investments (like stocks, mutual funds, ETFs) and where they can be held (like cash accounts and registered plans) will help confidently invest towards achieving defined goals,” he suggests. “Investor knowledge and confidence are vitally important factors,” Kholodenko emphasizes. “If the individual is educated and confident enough to make their own investment choices, then they can open a self-directed account. However, if they want someone to manage it for them by investing in a diversified, preselected portfolio of ETFs matched to their needs, then they might choose a product like Questwealth Portfolios – which is one of the best robo-adviser offerings in Canada. Investors should acknowledge their level of experience when choosing an investment, and choose one that fits their personal needs.” Kholodenko and Haskayne’s René Wells are unanimous about some key factors of online trading: the information, research and homework necessary to develop sound investment strategy about the optimal asset mix for personalized goals – equities versus bonds, domestic versus international – and the amount of tolerable risk. “It’s important to do research and choose the suitable online trading platform from many. Some trading platforms
(like Interactive Brokers) might be too sophisticated and complex for many individual investors,” Wells explains. “The good thing is that most platforms will allow ‘test runs’ with a hypothetical portfolio. It is quite easy, quick and very inexpensive to implement a generic but well-diversified portfolio using ETFs.” Sandre urges newbie and experienced online traders to adopt the mantra of conventional stockbrokers: diversification. “It can’t be overstated! The old saying about not putting all your eggs in one basket is truer than ever when it comes to online trading,” he emphasizes. “Too often we hear about new investors trying to chase a hot stock or sector and risking a large amount of their funds in that investment. It’s important to take a step back, reflect on how that investment helps achieve the defined goal and, based on that, adjust how much is invested in that stock or ETF.” Although the exciting action of online trading trumps the time needed for research and homework, analysts caution about common DIY online trading mistakes: • Anticipating quick, easy and huge profits. • Trading with little preparation and training. • Neglecting the importance of record keeping. • Not calculating the risk-reward ratio. • Poor timing. • Failing to place stop-loss orders wisely. • Getting too emotional and ending up with reckless decisions. • Not knowing when to stop. Questrade’s Kholodenko is supercharged about the constant technology changes and the future of online trading. “Canadians want access to their investments in real time on intuitive and easy-to-use platforms. Mobile application across multiple devices – phone, tablet, desktop or laptop. Today, many online traders use their mobile device to monitor their portfolio. It won’t be long when they will be able to manage end-to-end, all from their mobile device.”
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // FEBRUARY 2020
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AFFORDABLE | ACCESSIBLE | AUTOMATABLE
Nanalysis Brings Big Results to Miniaturized Technology
by Rennay Craats Photos by Riverwood Photography
B
usiness is a contact sport and to be successful, you have to play both hard and smart. Calgary entrepreneur Sean Krakiwsky was drafted by the Los Angeles Kings and played two years on its farm team, experiencing the brutal reality of what it takes to be successful when competing with the best. “Values like integrity, honesty and hard work are part of business and hockey,” he says. “I learned a lot about perseverance playing night after night against some serious competitors, and I apply those lessons in business.” Krakiwsky has shown the same work ethic off the ice, earning both an undergraduate and master’s degrees in electrical engineering from the University of Calgary and raising more than $25 million in equity funding for his three startups. His first venture was a software platform for wireless location services long before every cellphone had GPS capability. His second venture, Acceleware, dealt in high-end graphic cards as incredibly fast math processors for professional applications. He built Acceleware for six years before an intriguing opportunity arose in 2008. Krakiwsky brought together co-founders Dr. Garett Leskowitz and Dr. Greg McFeetors for an exciting new venture – to miniaturize highly-sophisticated chemical analyzers for commercial use. The result was Nanalysis Scientific Corp. (TSXV:NSCI). Nanalysis has become the global leader in compact magnetic resonance for industrial applications, selling their instruments to companies in industries ranging from biotechnology and pharmaceuticals to chemicals and energy. Full-sized machines performing the same function require reinforced floors to support their size, use liquid helium to cool superconducting magnets and carry a multimillion-dollar ownership proposition. Nanalysis offers an attractive alternative that is able to solve many of the same industrial problems for tens of thousands of dollars.
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Sean Krakiwsky, Founder and CEO
“From the perspective of the fundamental math and physics, it’s the same as you’d have in the MRI machine you would see in a hospital – sophisticated magnet systems, complex electronics and software that is doing some pretty fancy math,” says Sean Krakiwsky, founder and CEO of Nanalysis. “What we’ve done is miniaturize a room-sized machine down to a toaster-sized device, allowing the user to analyze chemical compounds on the molecular level at the push of a button.” Nanalysis’ 60 MHz and 100 MHz devices can test cannabis for THC and CBD content, analyze fuel or feedstock for sulphur concentration, determine if a drug is present in a suspicious powder and monitor if a chemical reaction is complete. Krakiwsky believes that
Sean Krakiwsky, Founder and CEO
his company’s devices will soon be in everything from cargo ships and refineries, to chemical plants, police stations and airports.
growth. We do all of our manufacturing right here in Calgary so we’re always interested in ways to leverage our expertise,” he adds.
“Being at the cutting edge of technological development creates exciting opportunities. We’ve been selling to customers around the world for years but we seem to have entered a pivotal time for our company. We recently announced a partnership with Bosch, we have begun to execute an acquisition strategy that will bring exciting new technologies and business lines to our company, and we just started selling our new market-leading 100 MHz device. There is a lot of excitement,” Krakiwsky says.
Investors are enthusiastic about the future of this unique Calgary industrial tech company with global reach. Nanalysis developed the IP and technology platform from scratch right here in Calgary. All product development and manufacturing is done in the local facility with administrative, finance and sales infrastructure in place. While the broader stock market has backed away from high-growth small cap stories, Nanalysis has maintained and growing a loyal group of investors who are excited for the future.
“The mandate from our board was very clear: growth. 2020 will see us expand our sales operation, bring the world’s most advanced device in our class to market, work with a number of industry partners to solve interesting problems and invest more in R&D than ever before,” he continues. Sean Krakiwsky has been in the Calgary business community for over 20 years and has formed strong ties but as with any entrepreneur, he’s always looking for new collaborators. “We are actively seeking targeted mergers with local and international businesses to expand our footprint, realize synergies and accelerate
Krakiwsky has big plans for Nanalysis. The company is currently developing fuel analyzers for cargo ships in response to new United Nations environmental regulations, and recently announced a partnership with a German state police agency to specialize their devices for fast and accurate illicit drug identification in mobile labs that could benefit security forces around the world. The company’s vision is to be a leading industrial tech company that provides solutions to important problems that affect our daily lives, and with Sean Krakiwsky at the helm, the sky is the limit at Nanalysis.
1, 4600 5 Street NE Calgary, Alberta, Canada T2E 7C3 587.436.1291 | www.nanalysis.com
AFFORDABLE | ACCESSIBLE | AUTOMATABLE
THE ART OF FINANCIAL PLANNING // RRSP, TFSA & TAX PLANNING
The Art
OF FINANCIAL PLANNING Different uses for TFSAs, RRSPs and trusts
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THE ART OF FINANCIAL PLANNING // RRSP, TFSA & TAX PLANNING
BY JOHN HARDY
W
hen it comes to politics, health, the weather, money and other contentious facts of life, the cliché is undisputable: you’re entitled to your own opinions, but not to your own facts. And it’s a documented and statistical fact: Canadians have become lousy savers, and it’s getting worse. Despite appealing and uniquely Canadian options like RRSPs, TFSAs and trusts, Canadians are saving much less than they used to. Some blame is on skyrocketing real estate prices, increasing debt, a higher cost of living and incentives that favour borrowers over savers, prompting Canadian households to pile on billions of dollars in mortgage debt as a risky way to build wealth. Financial analysts emphasize that, despite clichés and traditional trends, the amount Canadians are able to put away has decreased for a number of reasons: stagnating wages and the rising price of necessities like gas, groceries, daycare and housing. Housing used to account for around 30 to 35 per cent of people’s take-home pay. Today, because wages are not keeping pace with housing costs, the figures have spiked to 45 or 50 per cent for some households. And there is financial industry concern that while the population is aging, many Canadians are working past retirement age – drawing down their savings rather than building them up. According to Statistics Canada, the household savings rate – the percentage of disposable income left after spending – was 1.7 per cent, near its lowest point in six decades. In dollar terms, the plunge is substantial. Money management professionals focus on the long term while dealing with inevitable short-term speed bumps and mood-impacting factors. Calgary-based Ken Power, senior financial planner at K.P. Power Financial Planners and a member of Advocis (the Financial Advisors Association of Canada, representing more than 13,000 members), points out that, when used the right
“IN MY PRACTICE, WE TEND TO SPECIALIZE IN COMPREHENSIVE FINANCIAL PLANS AND CONSIDER ALL THREE [TFSAS, RRSPS AND TRUSTS] AS IMPORTANT TOOLS WITH DIFFERENT USES,” SAYS POWER. way for the right reasons and goals, Canadian options like TFSAs, RRSPs and trusts can be effective financial-planning and personal money-management tools. “In my practice, we tend to specialize in comprehensive financial plans and consider all three [TFSAs, RRSPs and trusts] as important tools with different uses,” says Power. “It’s taken a while but TFSAs are getting more understood and popular although RRSPs are still the most popular option. Not only the basic and primary purpose of saving for retirement but the RRSP Home Buyers’ Plan is an excellent way to save money on the purchase of a first home or the Lifelong Learning Plan when it comes to education.
ABOVE: KEN POWER, SENIOR FINANCIAL PLANNER AT K.P. POWER FINANCIAL PLANNERS.
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What can a financial advisor do for you? Whether you’re conquering the world on your own, raising children or caring for extended friends or family, life can be busy. It is said that “life happens while you’re busy making other plans,” and a year can seemingly go by in the blink of an eye. You’re working hard and making money, but is your money working for you? Working with a financial advisor can help make some of your questions and worry disappear, help you develop your personal financial plan, and give you more time to do the things you love.
What does a financial advisor do?
Providing peace of mind
Building a relationship with a trusted advisor is like adding a supporting cast member to your family team. They’re your trusted professional that is dedicated to understanding what’s happening in the market and the economy, assessing how those changes can affect your portfolio and proactively make recommendations to help you stay ahead.
Trying to make sense of where to invest your money in a world that’s constantly changing can leave you feeling frustrated and confused. Adds Gee, “A lot of our job is to help filter out the noise. We do our research and talk to our clients about what does and doesn’t affect them in understandable terms. We can help calm our clients’ fears and help them make decisions about where to put their money.”
They’ll work with you to build a financial plan and can help you make appropriate adjustments as your life situation changes. In short, they carefully listen to your goals and continuously carve the best path to help make them happen.
It starts with trust Your money is a personal matter and establishing trust with your advisor will give you the confidence that you’re headed in the right direction. Says Michael Gee, Senior Financial Advisor with ATB Wealth, “We don’t treat our clients as numbers, but as individuals, each with hopes, dreams, worries and questions. Each client relationship is unique, and we take your best interests to heart.” At the end of the day, you don’t want a one-size-fits-all solution as your financial plan; you want to be heard and understood, with a strategy that’s right for you and your family.
Having a trusted expert working for you means less time trying to make sense of investor jargon and market turmoil – your advisor will make sure you have the information you need to know, letting you feel like you’re in the driver’s seat with a team ready to back you up.
With you in good times and in bad Like any strong relationship, you should feel comfortable being open and honest with your financial advisor, and if you don’t, it might be time to look for a new one. Says Gee, “I never want my clients to feel embarrassed about any financial challenges they might be facing. I want to be an extension of their family team, giving them straightforward advice in a way that’s easy to understand.”
FPO - Low res photo Michael Gee, ATB Wealth Sr. Financial Advisor.
What you should bring to the table
The Takeaway
Working with a financial advisor is a two-way partnership. They’re getting your money working for you and helping you stay on track with your financial plan, but it’s important to understand your role in the relationship, too. Says Gee, “My best client relationships are built around open communication, sharing honest opinions, providing a forum to speak freely and mutual respect. When those things are all in place, we can put a great plan into motion. My clients feel like they don’t have to worry about their money, and I have the great satisfaction of playing a role in their success. It’s win-win.”
Working with a financial advisor can help free up time so that you can focus more on your family, business, social endeavours and chasing your dreams. A financial advisor should be someone you feel you can trust to listen to your concerns, answer your questions, help you make a financial plan and develop strategies to help get your money working for you. When you work with your financial advisor, you’ll feel that your money is in good hands and you can check one more thing off your to-do list. Relax, breathe. Your financial advisor is looking out for you!
Visit atb.com/wealth or call 1-888-282-3863 to learn more about how our team of experts can help you reach your financial goals.
ATB Wealth consists of a range of financial services provided by ATB Financial and certain of its subsidiaries. ATB Investment Management Inc., ATB Securities Inc., and ATB Insurance Advisors Inc. are individually licensed users of the registered trade name ATB Wealth. ATB Securities Inc. is a member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada.
THE ART OF FINANCIAL PLANNING // RRSP, TFSA & TAX PLANNING
VILLANUEVA ADMITS THAT TRUSTS MAY BE MISUNDERSTOOD BY SOME AND OFTEN HAVE A MISLEADING STEREOTYPE. “FAMILIES OFTEN DREAD TRUSTS AS BEING COMPLICATED AND THEY ARE APPREHENSIVE THAT MAINTAINING A TRUST MAY BE DIFFICULT AND COSTLY. THE REALITY IS THAT TRUSTS MAY BE AS COMPLEX OR AS SIMPLE AS THEY ARE SET OUT TO BE.”
“TFSAs, tax-free savings plans, are simple and good for a lot of situations,” he notes. “It’s excellent for a lot of people and the most efficient way to transfer wealth, since the money goes to a beneficiary without tax.” As an example of the power of compounding interest, he enjoys quoting history’s most famous scientist, Albert Einstein, “Compound interest is the eighth wonder of the world” and “He who understands it, earns it. He who doesn’t, pays it.” Ken Power keeps it simple …. and catchier. “The beauty of compound interest is that it allows you to earn interest on your interest, so that while you have to sweat to earn the money you initially invest, from then on your money works on your behalf. “Ultimately, it’s important to understand the reasons why trusts fit for some situations, and some find other types of financial planning more suitable for the goals and needs,” he says. Henry Villanueva, legal counsel and estate planner with MacMillan Estate Planning, has over 14 years of professional work experience as a lawyer and accountant. He defines his specialty as “safeguarding a family’s significance and
collaborating with families to design and implement a customized estate plan that promotes family harmony.” He acknowledges the unique features and values of RRSPs, TFSAs and trusts for specific situations. “Generally, a trust is a ‘relationship’ – not a company or partnership – established where a trustee or manager of the trust is instructed to hold certain property in trust for the exclusive benefit of others. Trusts are created for various purposes and they apply to various income levels,” he explains. “From my experience though, trusts are more suited and worth the work for families with a net worth in excess of $1 million. But if the main concern is to protect certain assets, regardless of value, a trust may be worth setting up.” Villanueva admits that trusts may be misunderstood by some and often have a misleading stereotype. “Families often dread trusts as being complicated and they are apprehensive that maintaining a trust may be difficult and costly. The reality is that trusts may be as complex or as simple as they are set out to be. Maintenance costs usually entail banking fees for the trust’s account and yearly T3 tax return preparation fees. The trustee may also charge a fee for acting as such but usually this is a family member anyway. Bookkeeping is usually not too much of a concern since
ABOVE: HENRY VILLANUEVA, LEGAL COUNSEL AND ESTATE PLANNER WITH MACMILLAN ESTATE PLANNING.
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THE ART OF FINANCIAL PLANNING // RRSP, TFSA & TAX PLANNING
the trust is not an active business and there are only a few transactions to record.” As trusts are usually personalized, he avoids generalizations and “how-to” templates but notes it’s common to take into consideration factors such as the parties involved – who will be the settlor, trustee and beneficiary – the purpose of the trust, governance clauses and restrictions, powers of trustees and whether the trusts can be amended in the future and how. Comprehensive estate planning should include a tax review to check whether all tax efficiencies and minimization strategies have been considered. There are various tax opportunities and recently the more common opportunities include, but are not limited to: planning around tax-efficient timing of withdrawals from non-registered accounts and registered accounts such as RRSPs or RRIFs; planning around future cash flow requirements especially during retirement; possible corporate restructuring such as estate freezes; and possible use of investment strategies that bypass probate and provide for principal protection. Villanueva notes that, unlike RRSPs and TFSAs, trusts are not considered for tax deferring or tax-savings value.
“Historically, trustees would pass on any income earned by trust property to beneficiaries, so they can pay the taxes at their own, presumably lower, rates. At present, to limit using trusts for tax avoidance, CRA’s attribution rules attribute the trust’s income to the person who transferred the property to the trust, if the beneficiaries are minor children or close relatives. “Currently, trusts are taxed at the highest rates. Despite limited tax advantages, trusts continue to be on the spotlight for their legal and risk-protection characteristics and ability to respond to specific family dynamics. “Planning one’s estate entails a deep dive into one’s goals and objectives – long term and short term. And it is wise to be mindful of the expectations of the children and to make sure you have had a discussion with them on this matter. It is easy to assume that as parents you know what is best for your children, but the reality is, they may have something different in mind. Planning and executing legacy and charitable-giving opportunities usually provide for heartwarming experiences for the family as well.”
BUSINESSINCALGARY.COM // BUSINESS IN CALGARY // FEBRUARY 2020
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CONDO OUTLOOK // REAL ESTATE
CONDO OUTLOOK BUYER’S ADVANTAGE TO CONTINUE
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FEBRUARY 2020 // BUSINESS IN CALGARY // BUSINESSINCALGARY.COM
BY TAMARA ISBISTER
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arket trends and expert predictions continue to call for a buyer’s advantage in Calgary’s condominium market.
On the resale side, high inventories and lower prices are clearly working in the buyer’s favour. According to Ann-Marie Lurie, chief economist to the Calgary Real Estate Board (CREB), “We are looking at price adjustments of over 17 per cent from 2014 highs. The apartment condominium side has been one of the hardest hit sectors in the resale market. The challenge for resale will continue to be the competition with the new.
CONDO OUTLOOK // REAL ESTATE
“IN TERMS OF OUR HOUSING STARTS FORECAST, WE ARE ANTICIPATING MULTIFAMILY INCLUDING CONDO TO BE A SIGNIFICANT PORTION OF HOUSING STARTS OVER THE NEXT FEW YEARS,” PARDY SAYS, NOTING THAT THE NEW AND RESALE MARKETS ARE SHOWING DIFFER-ING TRENDS. outlook, “Multi-unit segment is also expected to see increases in new construction in order to support demand for lowerpriced housing options in favourable locations, particularly as available rental options begin to become less abundant.”
“We’ve seen a lot of struggles in the resale side of the apartment condominium segment and that is in part due to too much supply,” Lurie explains. “This has been the case for the better part of five years, and it has impacted prices.” Year-to-date the average sale price slid 5.73 per cent from $292,558 to $275,783. The influx of new product is expected to continue according to Taylor Pardy, senior economic analyst for Canada Mortgage and Housing Corporation (CMHC). “In terms of our housing starts forecast, we are anticipating multi-family including condo to be a significant portion of housing starts over the next few years,” he says, noting that the new and resale markets are showing differing trends. “Overall in terms of the condo market, things are looking more robust, certainly on the new home side of things.” These predictions are supported by CMHC’s Housing Market Outlook published in the fall of 2019. According to the
The multi-family segment offers the most affordable options for those looking to enter home ownership. “It may become even more affordable,” Lurie says. “With these price adjustments, some people may see it as an ability to get into home ownership, particularly the first-time buyers. We have product under $200,000 and that didn’t exist a short while ago.” In the resale market, conditions vary depending on price range, with increased activity happening in specific segments. Pardy notes an interesting trend: “In 2019, units priced up to $350,000 represented about 72 per cent of sales.” Most sales have occurred in this “more affordable” segment. This is slightly down from 2018 when the price range below $350,000 represented about 78 per cent of the market. Vivienne Huisman, a Calgary real estate professional with Sotheby’s International Realty Canada, has seen a steady stream of investors from out of province who are looking to take advantage of low prices and the growing demand for rentals. The inner-city condo market is attracting those who are confident that conditions are set to improve and the Calgary market is a worthwhile investment. The rental market has become more competitive due to increased net migration, as newcomers tend to rent rather than buy.
ABOVE: TAYLOR PARDY, SENIOR ANALYST, ECONOMICS HOUSING MARKET INSIGHTS, WEST.
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CONDO OUTLOOK // REAL ESTATE
HUISMAN RECEIVES INQUIRIES FROM VANCOUVER INVESTORS ON A DAILY BASIS. “THEY SEE AN OPPORTUNITY,” SHE SAYS. “PEOPLE TRULY BELIEVE THAT THIS MARKET HAS BOTTOMED OUT AND NOW IS THE TIME TO TAKE ADVANTAGE. SHE ALSO NOTES THE MAJORITY OF CONDO ACTIVITY IS OCCURRING WITHIN THE $240,000 TO $350,000 RANGE.”
“The condo market has been saturated for a really long time, with condos sitting on the market,” Huisman explains. “We’ve started to notice, with net-migration numbers and the demand for rental housing increasing, there’s an opportunity now for investors to snap up condos in ideal locations (key), at a lower price point, to rent them out and make a profit, [and] perhaps flip it in five to 10 years when the market improves.” Huisman receives inquiries from Vancouver investors on a daily basis. “They see an opportunity,” she says. “People truly believe that this market has bottomed out and now is the time to take advantage.” She also notes the majority of condo activity is occurring within the $240,000 to $350,000 range. “Within that price point there are some really great opportunities.” Most often investors are looking to stay below $350,000, Huisman explains, otherwise the formula for rental investment
doesn’t work. “Renters don’t pay based on square footage, they pay based on one or two bedrooms. So, I always encourage investors to buy the smallest square footage in the best buildings. They get this for a great price and can rent it out for top dollar.” Current rents she sees for a one-bedroom inner-city apartment are between $1,800 to $2,200 per month. With the seller in mind and hopefully absorption of inventory, a more balanced market will become evident in 2020. Pardy points out, “If you look at the inventory of homes on the market (all types), apartment condos – particularly in the past four to five months – we’ve seen inventories dropping quite significantly. Inventory has dropped about 30 per cent overall compared to the same period of time last year.” Lurie concludes on a positive note, “Prices flattened out (versus declined) in the northeast and southeast districts and have remained flat compared to last year (but still well below what they were before). It’s far from recovery, but we are starting to see some signs of stability.” If the condo market is any indication, confidence in the Calgary economy is growing.
ABOVE: VIVIENNE HUISMAN, SALES ASSOCIATE SOTHEBY’S INTERNATIONAL REALTY CANADA.
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The Calgary Chamber is the voice of the business community. We double down on commerce and work with businesses to create catalysts for growth.
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Two months into the new year, 2020 continues to look like an opportunity for business to take the lead in making Calgary the community we know it can and should be. At the Calgary Chamber, we continue to have strong leadership that nourishes and inspires the business community, and that starts with our board. All of us at the Chamber were pleased to welcome Brent Cooper, partner at McLeod Law, as board chair; as well as new board member Anne Harding, owner of Forum Community Relations Inc., and the returning board member Jason Hatcher, managing principal of Navigator. Last month, we hosted Canada’s Agriculture Summit with the purpose of exploring one clear, crucial concept: that Canada can nourish the world “AND” have sustainable agricultural practices while remaining globally competitive. The summit was an extension of our natural resources initiative, and of our vision that Canada needs more Canada: we must come together to stand up for our natural resource economy every single day and create a national vision for the future of our resources. At the Chamber, we know that when leadership nourishes communities it can have an incredible impact on business. On March 5, 2020, the Calgary Chamber is celebrating this by proudly co-hosting the inaugural Calgary Influential Women in Business Awards (CIWB), together with Axis Connect. The awards will recognize seven outstanding female business leaders and one male champion for women in Calgary and celebrate their accomplishments. I am confident the event will inspire all of us, and we invite you to join us. You can purchase tickets for the event at www.ciwbawards.com. Together with our optimism, the Chamber is stepping up so that Calgary businesses have the resources to grow and thrive. In December, the Calgary Chamber announced bold, tangible steps to make that a reality: we contributed $1 million to InterGen Capital, the proven scale-up fund for companies ready to take the next big step to grow their business. We made this commitment because we know that when businesses flourish so do the families and communities they serve and employ. We are proud to be contributing to the InterGen fund and doing our part to grow Calgary’s economy. The Chamber’s purpose is to inspire and nourish businesses that in turn power their communities. To deliver and realize this goal, Calgary business needs a place for meaningful conversations between policy-makers and the business community. As Calgary’s podium of record, the Calgary Chamber is that place. We expect both federal and provincial budgets to be tabled in the spring, and will be formal participants in pre-budget recommendations. The Chamber will be front and centre advocating for policies that help our business community grow, and in turn, help us improve our communities together. I am excited for us all to honour inspiring and empowering women in business next month, and I hope you will join us. To stay connected and informed on everything we do, I invite you to connect with us online at www.calgarychamber.com.
Sandip Lalli President & CEO Calgary Chamber
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Calgary’s Scale-Up Challenge
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tarting a business takes grit, determination, skill and some might even say a bit of stubbornness. The sleepless nights, the worrying about customers and cash flow, the highs and lows of the process make starting a business not for the faint of heart. Opening a business is one hurdle, but another large obstacle lies in scaling it up. Many businesses don’t succeed in this step, leaving the business either too small or closing up shop. Businesses successful in scaling up continue to create jobs, become community builders and leave behind a legacy. Calgary has a wealth of startups; newer companies in the early stages of determining product-market fit, experimenting with customer segmentation and working toward a positive contribution margin. This lends itself to our thriving entrepreneur community bringing innovative ideas to the table, solving some of the most complex challenges facing our society
and economy. However, there is a gap when it comes to helping businesses grow, access new customers and bring in new investment. Calgary is facing a scale-up challenge. A scale-up company has validated their product within the marketplace and has proven the unit economics are sustainable. Companies that are ready to scale up must manufacture and export their products and services at a larger scale, support multiple clients efficiently and develop their teams. They do this all while trying to navigate a murky path towards sustainable growth, and without losing their current market position, agility or resilience. “We hear from our business community all the time that they are struggling to expand and grow,” says Chamber president and CEO, Sandip Lalli, “It’s important that we support these businesses with the tools and resources to expand and reach new markets and customers.”
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The Calgary Chamber is taking steps to help businesses scale up by investing $1 million into InterGen Capital, a private venture capital fund. This fund is part of InterGen’s larger strategy to help businesses grow. InterGen works to connect accomplished, underutilized senior executives with scale-up ready businesses. More than a mentorship this is seen as an “in-the-trenches, get-your-hands-dirty commitment.” “The Chamber has always believed this is an investment-worthy city; this is us putting Calgary first and investing back into our community,” adds Lalli. VEERUM is one of the first companies to benefit from InterGen’s unique approach. “InterGen has given us access to an extensive network of knowledge in Calgary and beyond, which has helped to accelerate our deal flow,” says David Lod, CEO, VEERUM. VEERUM is a SaaS (software as a service) provider that matches digital technologies with asset ownership, helping clients build and manage global infrastructure projects.
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Founded in 2014, VEERUM was looking to grow into larger international markets and compete on the global stage. Over the next year, InterGen will work closely with VEERUM to help accelerate growth. “Our biggest learning from the advocates has been to keep our messaging simple and get to the point early,” adds Lod. InterGen shines a light on Calgary’s innovation ecosystem and the growth it has experienced in the past few years. Technology is rapidly changing all industries and Calgary entrepreneurs have the grit and determination to make an impact. “Support from some of Calgary’s most prominent leaders paired with the Chamber’s investment will go a long way in supporting scale-up ready companies,” says Sandi Gilbert, managing partner, InterGen Capital. To learn more about InterGen or to get involved in the program visit: https://intergenconnect.com/.
Providing Displaced Oil and Gas Professionals an EDGE UP in Tech
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o help navigate the digital divide between today’s high-demand tech jobs and the skills needed to take advantage of the career opportunities, displaced oil and gas professionals in Calgary now have an edge up. EDGE UP is a new digital upskilling initiative led by Calgary Economic Development to target mid-career professionals, such as engineers and geoscientists, who have lost their jobs due to the structural change in the oil and gas sector in recent years. EDGE UP stands for Energy to Digital Growth Education and Upskilling Project and is part of a national initiative from the Future Skills Centre – Centre des Compétences futures (FSC-CCF) to test innovative approaches to skills development for mid-career workers. Calgary Economic Development is collaborating on the nearly $1.5-million pilot project over the next two years with partners: University of Calgary Continuing Education, SAIT, Bow Valley College, ICTC Canada and Riipen. The first cohorts will begin in February. Each of the three streams will accommodate 15 to 20 full-time students and last up to six months. The best career training path is identified for each participant based on skills’ mapping data. Students will then be trained in a specific area, such as information technology project management, data analytics or full-stack/software development. All pathways will help participants create a track to employment. There is no cost for participants, other than living expenses. Detailed information about the program announced in July 2019 can be found on the EDGE UP website (edgeupyyc.com).
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It’s been a challenging few years for Calgary and we ended 2019 with an unacceptably high 6.9 per cent unemployment rate. At the same time, there are hundreds of open tech jobs and many employers state attracting talent is their number one challenge. A study by ICTC Canada has forecast an unfilled demand for approximately 9,000 skilled digital workers will exist in Alberta by 2023. “This healthy quest for talent is indicative of a burgeoning digital-based economy in the province that is poised to strengthen the industrial fabric of Alberta in the coming years,” says Namir Anani, president and CEO of ICTC Canada. Talent and innovation are two of the four main areas of focus to achieve the vision for Calgary in the New Economy. EDGE UP brings together the two key elements of the economic strategy intended to drive digital transformation in the industrial sectors in Canada. “The most important aspect of EDGE UP is it will help Calgarians get back to work in good jobs. The demand for tech talent to support digital transformation across all sectors is at an all-time high,” says Jeanette Sutherland, the director of EDGE UP and also workforce and productivity at Calgary Economic Development. “With $18.4 billion forecast to be spent by industry on digital transformation forecasted over the next three years in Alberta, developing tech talent becomes an economic opportunity.” The future of work – the needs of both employers and workers – is a growing challenge everywhere in Canada. Calgary is taking on a leading role to address it with initiatives to invest in our people and that early action should give us an edge.
Become a Tourist in Your Own City by Exploring and Sharing Calgary’s Unique Offerings Learn about the latest things to see and do in our city through resources like VisitCalgary.com, @TourismCalgary social channels and the Calgary Visitor Guide
BY BRIDGETTE SLATER
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ach year, nearly eight million travellers visit Calgary, and for good reason. Set dramatically between prairies and mountain peaks, Calgary is a vibrant city that offers a vast selection of must-visit attractions, iconic landmarks, celebrated restaurants, noteworthy neighbourhoods, captivating festivals and events, and much more. In a recent survey, 85 per cent of Calgarians identified that they believe our city offers shareable experiences. To further grow this civic pride, and to inspire continuous exploration and sharing of our city’s unique offerings, Tourism Calgary offers a number of helpful online and off-line resources that enable residents and visitors to unlock the best version of Calgary. Visitors aren’t the only ones who can benefit from these resources. If you’re looking to learn about – and experience – the latest things to see and do in Calgary, or to create a memorable experience for visiting friends and relatives, leverage some of Tourism Calgary’s top resources: 1. Explore VisitCalgary.com a. Discover new experiences and build tailored itineraries by browsing through the monthly activity guides, seasonal recommendations, robust events calendar and vast article library. b. Get a full overview of all there is to see and do in Calgary by using the interactive map to navigate through more than 700 accommodation, attraction, entertainment, restaurant, retail and tour operator listings. c. Use the discount codes available through visitcalgary. com/deals to save on accommodations, admission to key attractions and much more.
TOURISM CALGARY OFFERS A NUMBER OF HELPFUL ONLINE AND OFF-LINE RESOURCES THAT ENABLE RESIDENTS AND VISITORS TO UNLOCK THE BEST VERSION OF CALGARY. 2. Follow @TourismCalgary on social media a. Scroll through Tourism Calgary’s Facebook, Twitter, Instagram or LinkedIn profiles to view a vast portfolio of beautiful imagery and curated links that capture Calgary’s urban landscapes, stunning architecture, iconic landmarks and impressive culinary offerings. b. Enter the contests hosted through @TourismCalgary’s Twitter handle for the chance to win free tickets or admission to key Calgary events and attractions. 3. Flip through the Calgary Visitor Guide a. Use this guide to identify the attractions, events and neighbourhoods you’ve never experienced before. Create a Calgary bucket list and become a tourist in your own city. b. Access the guide online at visitcalgary.com/visitorguide, or find a visitor information location where you can pick up a printed copy at visitcalgary.com/ visitor-services. To start taking advantage of these resources, or to learn more about Tourism Calgary, see visitcalgary.com.
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MARKETING MATTERS // DAVID PARKER
Marketing Matters BY DAVID PARKER
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t’s good to see Joe Hospodarec back in town. A founding partner of WAX Partnership 10 years ago, he had a brief stint at Karo Group before taking off to Vancouver but has since returned to join Daughter Creative in the role of agency producer, helping the group refine and execute their work. That team has doubled in size over the past year to 13 people – interesting to note that both Stephanie Kochorek and Jonathan Herman worked with Hospodarec at WAX. The increase in staff has meant a move from the Ramsay Design Centre into an office on 10th Avenue SW. The new office is across the parking lot from Evans Hunt, and Daughter was able to entice Jason Holley to walk over and join the company as its general manager. Strong in operational and strategic leadership, Holley has racked up lots of account planning and agency leadership experience in Canada and the U.S., including working with Chiat Day in Toronto and Rethink in Vancouver. One of the new hires also came from the West Coast. Account director Miranda Thorne directed the emerging destination marketing organization, Tourism Cowichan on Vancouver Island, and worked with Talk Shop Media, one of Vancouver’s leading agencies.
tourism and economic development strategy) and the Town of Vulcan (branding initiatives). AdMaki continues to work with Alberta Golf and Winterstart Events (awarded the men’s and ladies’ World Cup downhill races in Lake Louise). In addition, it rebranded Champs Grill in the Vision Sports Centre on Flint Road in the city.
Good news all around at the start of a new marketing year; this from William Joseph Communications that reports strong growth in all of its four offices in Alberta and Saskatchewan. Ryan Townend’s team is working for the fifth year with PSAC’s Stars & Spurs Gala, building out their event brand and marketing materials, and the firm launched a national influencer campaign for Chatters – a two-month campaign that took place in 100 Chatters stores across Canada. It developed the 50th anniversary logo for Canadian Western Agribition, the Regina event that will be held starting November 30, and also has been engaged to build the global brand for VIDO-InterVac (Vaccine and Infectious Disease Organization – International Vaccine Centre) in Saskatchewan. The agency now works with over 100 current clients.
Mark Kamachi says he had no idea how much time he had committed to as an elected Rocky View councillor, yet his Bragg Creek-based AdMaki agency is as busy as ever. With the downturn in the energy business, Kamachi switched his focus to economic development and tourism and has been successful in winning projects with Strathmore Economic Development, the Town of Sundre (working on its
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