March 2013 Business in Calgary

MARCH 2013 $3.50

www.businessincalgary.com

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The energy challenge

Construction feature:

A City in

Flux

Former Nexen CEO Charlie Fischer weighs in on the confrontations and opportunities in a province awash in oil

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Spring 2013 • Page 70

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Energy Features

Other Leasing Opportunities

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For nearly a century Canmore was an important coal mining centre in southern Alberta.

Over time, the town evolved into an international recreation centre and tourist destination. While the town of Canmore changed, the Canmore Hotel did not. Located in the heart of downtown Canmore, the Canmore Hotel remains a precious landmark from those early mining days. As the second oldest, continuously operated hotel in Alberta, the pub has been catering to both locals and visitors alike for over 120 years. The Canmore Hotel was originally one of the town’s four grand hotels. As the sole survivor, it has spent a lifetime keeping watch over Canmore.

It is now time to restore, expand and sensitively rehabilitate this historic establishment so that its legend -- and its rich history -- will live on.

We are pleased to offer eligible investors an opportunity to participate in this exciting and rewarding development.

• RRSP and TFSA eligible • 9% annual preferred dividend paid quarterly • Additional profit from your ownership in both a well established pub and an enlivened boutique hotel • Select VIP hotel privileges Selling agents protected

For more information about this investment opportunity visit canmorehotel.com This investment is only for investors by way of subscription agreement. This is not a solicitation for sale or purchase of securities, without the appropriate exemption documents being provided to prospective purchasers. The information enclosed is for informational purposes only and is not a solicitation as to any investment product. The information above is inherently limited in scope and does not contain all of the applicable terms, conditions, limitations and exclusions of the investment described herein.

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Contents

Volume 23 • Number 3

PUBLISHERS

Tim Ottmann & Pat Ottmann

EDITOR

On our cover…

COPY EDITORS

Former Nexen CEO Charlie Fischer

Derek Sankey Lisa Johnston & Nikki Mullett Cher Compton cher@businessincalgary.com MARCH 2013 $3.50

CONTRIBUTING DESIGNER Jessi Evetts

ADMINISTRATION

Nancy Bielecki nancy@businessincalgary.com Sarah Schenx sarah@businessincalgary.com

www.businessincalgary.com

ART DIRECTOR

REGULAR CONTRIBUTORS Richard Bronstein Frank Atkins David Parker Lonnie Tate Mary Savage

THIS ISSUE’S CONTRIBUTORS

The energy challenge

PHOTOGRAPHY

37

Former Nexen CEO Charlie Fischer weighs in on the confrontations and opportunities in a province awash in oil

SUBSCRIPTIONS

Online at www.businessincalgary.com Annual rates: $31.50; $45 USA; $85 International Single Copy $3.50 Business in Calgary is delivered to over 33,500 business people every month including all registered business owners in Calgary, Banff, and Canmore, and the Calgary Chamber of Commerce members.

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Spring 2013 • Page 70

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Bernie Cooke bernie@businessincalgary.com Kim Hogan kim@businessincalgary.com

1025, 101 6th Ave. SW Calgary, AB T2P 3P4 Tel: (403) 264-3270/Fax: (403) 264-3276 Email: info@businessincalgary.com

61 42

Energy Features

DIRECTORS OF CUSTOM PUBLISHING

EDITORIAL, ADVERTISING & ADMINISTRATIVE OFFICES

A City in

Flux

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ADVERTISING SALES

Rachel Katerynych rachel@businessincalgary.com Renee Neil renee@businessincalgary.com Bobbi Joan O’Neil bobbi@businessincalgary.com Brent Trimming brent@businessincalgary.com Carla Wright carla@businessincalgary.com Evelyn Dehner evelyn@businessincalgary.com

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Construction feature:

Ca

Cover photo courtesy of Ewan Nicholson Photography Inc.

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Camie Leard Keith Davis John Hardy Heather Ramsay Jesse Semko Mark Kandborg Stewart McDonough Andrea Mendizabal

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125

37 • The Energy Challenge

Former Nexen CEO Charlie Fischer weighs in on the confrontations and opportunities in a province awash in oil.

By Derek Sankey

This Month’s Features 22 • Getting Behind the Buzz of Strategic Planning

By Business in Calgary staff

28 • Landlocked: An Industry with Nowhere to Go

The oil sands industry faces barriers in every direction in getting its product to export markets.

By Derek Sankey

View our electronic issue of this month’s magazine online at www.businessincalgary.com

6 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

Private Company Services www.pwc.com/ca/dbia

Building lasting value

Contact: Ian Gunn Business Advisor 1 866 750 4 PWC ian.h.gunn@ca.pwc.com

We can help you create an agile business that anticipates challenge and thrives in today’s evolving markets.

Š 2013 PricewaterhouseCoopers LLP, an Ontario limited liability partnership. All rights reserved. 3092-10 0213

Contents

Volume 23 • Number 3

(This Month’s Features cont’d) 42 • 2013 Calgary International Auto and Truck Show

By Keith Davis

51 • It’s Not Easy Being a Junior

Junior oil and gas companies get tough and feisty in uncertain economic times.

By John Hardy

42

55 • The Core Explored

By Camie Leard

61 • A City in Flux

Construction activity is changing the face of Calgary

By Derek Sankey

120 • Eyes are on Alberta

55

As residential real estate pricing continues to stabilize across the country, all indications are that Calgary’s market is gaining momentum and will keep bucking the trend.

By Heather Ramsay

BOMA Calgary News 70 • Spring 2013

Company Profiles 81 • S2 Architecture: Where Diversity Thrives and Design Endures Defining the Essence of Community for 20 Years

99 • Changing the Face of Commercial Real Estate: OPUS celebrates 30 Years

111 • Back to Basics

With a new leadership team, a fresh vision and more than three decades of service in Calgary, Plumb-Line Group of Companies is building a foundation for the future.

51

117 • Highland Moving Turns 75 118 • When Disaster Strikes…

Call RCC South

127 • DRIVING FORCE: 35 Years on the Force

Regular Columns 10 • “The Devil Wears Bitumen”

By Richard Bronstein

12 • Where is the Infrastructure Deficit?

By Frank Atkins

14 • The Best Career Option for My Grandchildren

By Lonnie Tate

125 • Leading Business 129 • The Calgary Report

Current developments for Calgary Telus Convention Centre, Tourism Calgary, Calgary Economic Development, and Innovate Calgary

134 • Marketing Matters

By David Parker

8 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

61

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“The Devil Wears Bitumen” • Richard Bronstein

BY RICHARD BRONSTEIN

“The Devil Wears Bitumen”

I

n the popular Hollywood movie, “The Devil Wears Prada,” Meryl Streep plays the role of a hard-as-nail-polish magazine editor who exercises enormous power over the fashion industry and the people who work for her. It’s a modern take of the old morality fable of Faust’s bargain with the devil – in exchange for unlimited knowledge and worldly pleasure, Faust gives over his soul to the dark side.

If Meryl Streep were to play the role of an Alberta premier, they might call the movie, “The Devil Wears Bitumen.”

Because successive Alberta governments have certainly made a deal with the devil – in exchange for easy riches from oil and gas, they have given up all pretence of responsible financial management.

When oil and gas prices are high, Alberta’s revenues go up and the government spends. And spends. And spends.

Most of these expenditures are locked in forever. So when oil and gas prices go down, suddenly the provincial government cannot pay its bills.

The latest iteration of this is Premier Alison Redford’s public television address when she blamed our current $6 billion financial problem on the “bitumen bubble.” (Oh, to be a fly on the wall when the best and brightest minds were sitting around the table batting out ideas for the premier’s speech.)

What is a bubble? Something that is ephemeral, short lived and disappears after a while.

Sorry Premier Redford, but we don’t have a bubble. We have a roller-coaster. Some clever high school class in Alberta should do a simple spreadsheet of oil and gas prices from 1960 until 2012 and present it to the premier. It would show prices going up and down, up and down, up and down ad infinitum. The reasons for price differentials vary over time and they are difficult to predict.

But the underlying financial principles are simple. Say you are a commissioned salesperson and your income varies from $5,000 to $10,000 a month. Would you base your family budget on $120,000 a year income? Or are you a little smarter than that?

The fact is oil and gas are cyclical industries in Alberta; always were and always will be. No bubble here, no great mystery, no slap in the head.

10 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

If this is so, and the evidence shows it is, how would you manage Alberta’s financial affairs?

First, you have to deal with expenditures. You’ve got to find ways to turn the spending curve from up to down. If it’s a family doing this, you don’t starve your kids on two meals a day from three or anything drastic as that. After you protect what is necessary, you look hard at every penny of discretionary spending.

Then you have to seriously look at the revenue side. This is where we depart from personalized metaphors. Families and small businesses cannot easily increase their income significantly in the short term. Governments, unfortunately, have unlimited power to increase revenue through taxation.

It would be wrong – not to mention electoral folly – for the Redford government to suddenly and dramatically increase taxes of various kinds (i.e. HST, health-care premiums, a progressive provincial income tax and others), without first showing that it is capable of prudent financial management.

The next stage, and I hope this will be the real result of Premier Redford’s economic summit, is to evolve Alberta into a new revenue paradigm. Going forward we badly need to draw a new economic map for the province in which we deploy progressive consumption and income taxes – to properly finance the operational needs of a growing and dynamic province.

It must become a rule in Alberta that we limit how much oil and gas royalties we allocate to regular operating expenditures, and it must become part of the new religion that we save a significant portion of those revenue sources in the Alberta Heritage Savings Trust Fund to build a nest egg for the future.

Not having a sales tax is not the Alberta Advantage.

That’s just the devil talking. The real Alberta Advantage is paying fair, sustainable taxes for a quality suite of necessary public goods and services – education, health, seniors, the disadvantaged, culture and recreation. And watching our provincial savings fund grow from $15 billion to $30 billion, to $100 billion and more. Our future prosperity depends on saving not spending.

It’s time to kick the devil out. BiC

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Where is the Infrastructure Deficit? • Frank Atkins

Where is the Infrastructure Deficit?

BY FRANK ATKINS

T

here appears to be a common belief amongst some segment of the population that Alberta is somehow lacking in infrastructure. The source of this belief, as I wrote in a November 2011 article in this publication, appears to be a study from the Canada West Foundation concerning infrastructure in Calgary. This study purported to show that Calgary was suffering from a large “infrastructure deficit.” The study never really defined the term infrastructure deficit and never really applied any sound economic analysis to show that, whatever an infrastructure deficit is, it exists in Calgary. In spite of this, politicians glommed on to the term infrastructure deficit in order to support their spending plans, and Albertans are now convinced that we need more infrastructure spending.

Those who believe in the concept of an infrastructure deficit place the blame clearly on what is commonly referred to as the “Klein cuts.” The story goes that the early Klein-era restructuring eliminated necessary spending on infrastructure, and we have been playing catch-up ever since. The most recent cheerleader for this belief is Calgary Herald business writer Deborah Yedlin who recently wrote, “…the province is still paying the price for the lack of capital investment that resulted from the single-minded focus on paying down the debt; the hallmark of the Klein years. We might have saved on interest costs, but we lost on capital infrastructure.” The problem with this belief, as with so many other widely-held urban myths, is that there is not a shred of evidence to support this contention.

Consider the following facts, which are summarized on the below chart: Alberta Provincial Infrastructure Alberta and and Average Avergage Provincial Infrastructure Spending Spending

Per Capita Spending

2500 2000 1500 Average Provincial

1000

Alberta 500 0 1995

1998

2001

2004 Year

2007

2010

In the fiscal year 1994-95, Alberta spent approximately $891 million on infrastructure, which is approximately $326 per capita. In that same fiscal year average infra12 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

structure spending per capita by all other provinces was $327. For the next two fiscal years Alberta actually spent slightly more per capita on infrastructure than the average of the other provinces. Beginning in fiscal 1997-98, coinciding with the Klein restraint years, this began to change.

Between fiscal 1997-98 and fiscal 2001-2002, we spent more than double the provincial average on infrastructure spending. In non per capita terms, this amounts to approximately $9.4 billion in capital spending over these years.

This could hardly be labelled as a situation where “we lost on capital infrastructure.”

What happened next is truly amazing. Apparently fuelled by the mistaken belief that there was some kind of infrastructure deficit from the Klein restraint years, the Stelmach administration took capital spending to new heights. For a great many of the Stelmach years, infrastructure spending was actually three times the provincial average. In fiscal 2008-09 Alberta actually spent nearly the same dollar amount on infrastructure as both Ontario and Quebec, each of whom have much larger populations than Alberta. The Redford administration has continued the Stelmach infrastructure spending tradition.

Given that there was no infrastructure deficit from the Klein restructuring years, there must be some other explanation for this orgy of government spending in the post-Klein years. It is possible that both Stelmach and Redford have taken advantage of a unique Alberta situation. Politicians love to spend, but in order to continually spend larger amounts, they eventually have to raise taxes. In Alberta, we seem to believe that we can spend out of non-renewable resource revenue, hoping that taxpayers will view this as increased spending without raising taxes. The problem with this procedure is that as soon as non-renewable resource revenues decrease, if spending is not cut, the government must go into deficit. Further, by spending out of non-renewable resource revenue, we are not only mortgaging the future of generations of Albertans, we are tying our spending to an unreliable source of revenue. This is the situation that we are in today. We have a large deficit, and we have large spending. Ms. Redford plans to borrow for what she calls infrastructure spending that Albertans so desperately need. Ms. Redford, you got caught. You are simply playing a political shell game with Alberta taxpayer money. BiC

The Best Career Option for My Grandchildren • Lonnie Tate

BY LONNIE TATE

The Best Career Option for My Grandchildren

M

y grandchildren are 15 and 13 and are at the stage of selecting a school curriculum that will point them toward a career. If they ask me (and of course they will not): “Grandpa, what do you think we should do?” my first answer will be: “Become an Alberta civil servant.”

I will carry on: “Go to university, take anything you want … but make sure you do well. Good marks will ensure you land a job in management. There are many departments looking for bright people to support their senior management. And one day, you will become one of those senior management people.

“Now you will not be fabulously wealthy. Your personal balance sheet will never be in the tens of millions. But throughout your career, you will be paid a salary competitive with your peers in industry. And in retirement, you will have a six-figure, indexed pension that none of those industry people will ever see. The net present value of that pension will be four to five million dollars when you retire.

Who cares whether or not it is on your balance sheet?

“Better yet, it is highly likely that you will live to see retirement because jobs are designed to keep stress to the minimum. To get ahead, you will have to be prompt at getting to work. Sometime between 7:55 and 8:00 is preferred.

(If you are earlier than 7:55, you may look too aggressive).

Then you will have to sort your desk, carefully replacing the stuff that you stored before you left the previous day.

(A clean desk is a sure way to get ahead.) Most folks are ready to get after it by 8:20 or so … hopefully some work will come along.

“Then there is closing. It will be imperative that your desk is spotless by 4:15 so that you are ready to bolt for the elevator as the sweep second hand hits 12. Another day done and you can look forward to an evening with your spouse and the kids.

“Between opening and closing, you will have to apply effort to your assigned task. Often, that will entail filling in for your manager who will be away at meetings or tak14 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

ing a department-sponsored course to improve his or her skills. That should not be too tough … they do not do much anyway. Of course when your manager is present, you will be taking courses so that you can advance to that senior management position.

“Oh! There will be stress. Some of the toughest decisions will entail finding expenditures in the last three months of the fiscal year to fill up under-budget categories. Or if revenues are over-budget, you will have to think of creative ways of deferring them until the next fiscal year. Talk about tough!

“You will have to stroke your ego away from work as it will be pretty much impossible to do that at work. You should not wear flashy clothes. Brown and tweed are much preferred to blue and pinstripes. For men, polyester ties are best; for women, polyester anything.

“In the early years, you should never drive a car to work … public transportation is better. And wear sneakers on the way in to work. (The nice thing is that your perfectly clean desk has a place for you to keep a pair of dress shoes – preferably brown. You can change shoes during the 20-minute warm-up period as you start your day.) As you advance, you will find that taxis give vouchers for your expense reports.

And for the most senior people, there are government vehicles and drivers to get you around.

“Vacations are mandatory … no skipping them for work so that you can get ahead of the competition. Three weeks to start … four or five later on … way better than your industry counterparts will ever experience. The same goes for sick days … although not taking sick days pays off in the end because you will get paid for the ones you do not use.”

Sound facetious? Of course it is. But does it sound true?

Unfortunately it does (and is).

The elephant in the Alberta government budget room is the burgeoning cost of administration and the entitlements attached thereto. I wonder if anyone is listening. BiC

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It started with a vision...

It started with Prairies

Then and now

MOGENS SMED DIRTT Environmental Solutions Ltd.

MOGENS SMED

T

he last three years have been extremely busy for Mogens Smed, co-founder of Calgary-based DIRTT Environmental Solutions Ltd., a leader in the North American modular workspace industry. His company has doubled in size in terms of revenues and expanded into related vertical markets around the world in such places as Beirut, Saudi Arabia, India and South Korea. “We’ve done pretty good,” says Smed, whose company was launched in 2004.

In 2009, he was a finalist in the Prairies Entrepreneur Of The Year awards program and it’s been aggressive growth ever since. His model turns the traditional interior construction business on its head. Almost all of the company’s sales team work out of their own homes, helping to keep overhead costs down. Nobody has an office in the company’s building, even Smed himself.

It all started out when he partnered with Barrie Loberg, a software expert in the field of integrating a high-tech, 3D, interactive, graphical interface for designing, specifying, pricing and manufacturing office interiors. There have been many lessons learned along the way, but the one thing Smed is adamant about is getting things right the first time. In fact, DIRTT stands for Doing It Right This Time.

In 2008, DIRTT bought Spider Manufacturing, a modular power solutions provider based in Kelowna, B.C., which provided the complementary technology to make it possible to quickly integrate DIRTT’s offering.

With the firm’s rapid growth, he opened two more factories in the U.S. While the corporate market has been slower since the economic downturn that impacted all companies in 2008-09, the health-care, education and high-tech sectors have been booming.

It’s always been Smed’s passion for the environment

a vision...

Entrepreneurs.

They turn us on.

munity cause that means something to them individually.

One organization DIRTT supports reflects the maverick nature of the company. DIRTT hosts the world’s biggest corporate event for the Sea Shepherd Conversation Society because he believes that doing the sometimes difficult work of forging new paths on environmental sustainability is vital to the planet’s survival.

From the very beginning, Smed has shown that perseverance and hard work yield tremendous results.

It has become part of DIRTT’s culture in every aspect of what it and its employees do each day. His advice to aspiring entrepreneurs is as simple, yet very true, as his business philosophy.

“Never quit,” Smed says. “Too many times, people give up too easily.”

Ernst & Young Entrepreneur Of The Year® honours outstanding Canadians who have turned their unique business vision into successful reality. In 20 years, the program has achieved several major milestones in Canada including over 8,700 nominations received, more than 3,000 award finalists named, and presented 980 regional awards — including 40 lifetime achievement awards.

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that drove him to succeed. When done correctly, he believes environmental sustainability can be great for his own business and his clients’ operations.

He doesn’t see it as a cost, just like giving back to the community. Smed says simply: “Your employees are the most important thing and if you don’t show that you’re participating in the community and with the charities, where will your employees get a sense of pride?”

His challenge is to change hearts and minds when it comes to conventional construction. Its inflexible studs and drywall and hardwired power and data end up filling landfills and line contractors’ pockets every time a workspace needs changing. His goal was to build prefab interiors that are functional and can fit designers’ specifications easily.

Today, 75 per cent of DIRTT’s sales are in the U.S., but as the company continues to pursue foreign markets, that’s slowly changing. Throughout it all, Smed has never wavered in his support of community causes. He was the first corporate leader in Calgary to chair the Calgary Cares event at AIDS Calgary as its first platinum sponsor and has supported Servants Anonymous.

He actively encourages his employees to volunteer and get involved in a com-

The lights go up on our 20th anniversary on March 1!20Nominate at years of inspiration ey.com/ca/EOY.

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Off the Top • News

FIRST impressions resonate in East Village Groundbreaking signals buyers ready for new urban living Whoever said you don’t get a second chance to make a first impression was obviously not describing the FIRST residential project in East Village by builder FRAM+Slokker. In March 2012, FIRST – an 18-storey, 196-unit, residential tower, representing approximately 200,000 square feet of development, was previewed to the Calgary marketplace. Now, less than one year later, the project is breaking ground, signalling that buyers are truly impressed by what they have seen.

“We’re kicking off the new year with a bang,” says Fred Serrafero, vice president, development, FRAM Building Group. “Calgary is a unique market; we have enjoyed a great response to our initial product offering and now with permitting in place, we are starting construction immediately,” he adds. “It’s a great day for our buyers and for the redevelopment of this master-planned urban village.”

Early in 2010, Ontario-based FRAM Building Group and Slokker Real Estate Group (FRAM+Slokker) together with Tricon Capital Group joined Vancouver developer Embassy Bosa to pioneer new multi-family development within East Village. Together the developers represent approximately $650 million of private investment for East Village and specifically the FRAM+Slokker projects represent some 700 new

ial t ec men ay & p S na M r ur or e To ng f emb ici pt Pr Se

FIRST is an 18 story residential tower now under construction in East Village.

Photo courtesy of CMLC.

residential units and approximately 730,000 square feet of new mixed-use development.

“This year Calgarians will see significant advancement in the community as projects like FIRST, the National Music Centre and St. Patrick’s Island redevelopment break ground,

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Off the Top • News

thus forever changing the face of East Village,” says Michael Brown, president and CEO, Calgary Municipal Land Corporation (CMLC). “CMLC has been advancing our master-plan vision for this downtown community since 2007 and while there remains a lot of work to do, we are very proud to welcome new residents into East Village by early 2015.”

FIRST, located at 550 Riverfront Avenue SE, is a full amenity condominium development offering a rooftop lounge and outdoor patio with beautiful views of the Bow River, a landscaped courtyard and green roof, residents’ fitness centre, yoga studio and bike parking. Construction timeline is anticipated at 22 months.

As evidenced by consumer response, the one-bed, 1.5-bath, 690-squarefoot floor plan, as shown in the EV Experience Centre show suite, has sold out. Meanwhile, FRAM+Slokker,

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together with project architect Giannone Petricone Associates of Toronto, are refining design details on the next phase of their development to ensure it is keeping pace with the needs of the Calgary marketplace. Product introduction and pre-sales are planned for spring 2013.

“Under the leadership of the professional and dedicated team of CMLC, East Village is becoming a remarkable new neighbourhood in downtown Calgary,” adds Serrafero. “Critical to our success is the complementary work that is being done by CMLC to program the public realm with one-of-a-kind community events. These activities are bringing a lot of Calgarians into the neighbourhood, all of whom are interested in understanding more about the transformation taking place here and to see our vision for residential living in the community.”

The vision for East Village, unveiled in 2009, is that of a thriving, mixeduse, inner-city community. The area will boast key cultural and recreational amenities, with an emphasis on river-front development and character neighbourhoods. East Village is expected to be home to more than 11,000 residents by build-out.

Based in Mississauga, Ontario, FRAM Building Group is an awardwinning developer renowned for its creativity in planning, designing and development of premier residential communities in Ontario and the USA. Along with its group of highly motivated management and construction professionals, FRAM has successfully built over 11,000 residences from custom homes to exceptional single-family, multi-family, condominium and rental homes, as well as mixed-used developments and commercial properties. BiC

Hull-in-One Golf Classic Hull Services is pleased to announce the fourth-annual Hull-in-One Golf Classic fundraising event set to take place on Monday, August 12, 2013 at Pinebrook Golf and Country Club.

20 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

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13-2-7 4:10 PM

Off the Top • News

Complete with a barbecue lunch, cart, fun competitions and Spolumbo’s sausages on the course, 18 holes of golf will be followed by dinner, prizes and auctions to raise funds for Hull Services.

Sponsors, donors and golfers will assist Hull in providing one-to-one counselling for kids who desperately need someone to listen, to care and to teach them. These needed community services allows kids and families to experience hope for the future, often for the first time in their lives.

In 2012 Hull Services celebrated 50 years of helping kids and families. Many of the kids Hull supports have experienced trauma in their lives such as abuse, neglect, poverty, violence and social disadvantage.

Others have been affected by mental illness, emotional and behavioural disorders, addictions, developmental delays and depression, among others. Hull’s services range from prevention, early intervention and education to in-home family counselling and intensive residential treatment. Through their work, they ensure that every child, youth, young adult and family feels loved, accepted and worthwhile.

“Mr. Hull had a vision and 87 years after his death, it remains the same,” says George Ghitan, Hull’s executive director. “He wanted to build a happy place for all; we too are striving to help these kids and families. They all have the potential to be happy, productive human beings that make a positive contribution to society – and collectively we can help them.”

Alister Cowan, chair, Hull Services board of governors, adds, “Supporting healthy, happy kids and strengthening families builds a vibrant society. Community engagement is essential and we encourage you to join us. The results will be extraordinary.”

For more information, please contact (403) 251-8060 or visit www.hullservices.ca. BiC

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www.businessincalgary.com | BUSINESS IN CALGARY March 2013 • 21

10/11/12 3:20 PM

Getting Behind the Buzz of Strategic Planning • Business Strategies

Getting Behind the Buzz of

Strategic Planning

BY BUSINESS IN CALGARY STAFF

A

s business buzzwords go, ‘strategic planning’ may well be up there with ‘engagement leveraging’ and ‘high-order thinking’ – an easily disregarded Las Vegas seminar pitch with, likely, little or no relevance to the real workings of real businesses.

The truth is though, that for any business to experience a sustained level of success, there must be some strategy at play – at the very least, a basic coordination of effort in a common direction. Either that or there’s a bucketful of luck and, as that can’t be relied upon long term, it is better to concentrate on the strategy part.

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Getting Behind the Buzz of Strategic Planning • Business Strategies

There’s no doubt, with stiff economic headwinds, ruthless competition from eastern manufacturing markets and a rapidly evolving technological landscape, business are, more than ever, needing to tread carefully, spend wisely and weather storms as best they can.

There’s no doubt, with stiff economic headwinds, ruthless competition from eastern manufacturing markets and a rapidly evolving technological landscape, business are, more than ever, needing to tread carefully, spend wisely and weather storms as best they can. The idea then of devoting precious company time, energy and resources to the implementation of what is essentially a new set of unproven principles might appear impractical and even irresponsible.

Statistics from the Balanced Scorecard Collective suggest that as high as 86 per cent of executive teams spend less than an hour a month discussing strategy. While this doesn’t necessarily mean that all these teams lack focus, it

does suggest that, in all likelihood, more company time is being spent cleaning the office than it is clearly addressing and defining where the company wants to go, how it’s going to get there and who is taking care of what.

So What is Strategic Planning?

Definition: ‘An organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy.

When Business Instincts Group (BIG) formed in 2009, their experience was that traditional strategic planning methodologies were unwieldy. As a young and growing company

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Getting Behind the Buzz of Strategic Planning • Business Strategies

they needed to move through their ‘build, measure and learn’ cycle as quickly as possible to stay healthy. This meant revisiting not only their business model, but their held assumptions about present and future customers as well as their development timelines regularly; in this case, at least every 90 days. Realistically, how can a business shift direction to take advantage of new market conditions or avoid pitfalls when it only addresses strategy once a year?

Similarly, they wanted to measure their progress in a multitude of areas, not just the most commonly used ‘key indicators’ and they wanted to do this using numbers so they could have tangible evidence of forward (or indeed, backward) motion.

It was these needs and questions that evolved into their proprietary strategic planning process that they called the RIPKIT. A RIPKIT is a battle plan. While lots of businesses have business plans, 99 per cent of these sit in someone’s drawer and never get looked at once they’ve been written.

What a RIPKIT does is it acts to take that business plan and turn it into an executable, tactical strategy enabling a business to achieve the goals it has set.

24 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

The RIPKIT Program The RIP in RIPKIT stands for ‘responsibilities in perspective’ and these are a company’s most important priorities over a predefined period of time (five years, one year and 90 days). While most people in business will understand responsibilities and goals, the unique part of a RIP is the perspective. When RIPs are created, they are done so using the perspective of a company’s entire team to determine what’s most important. Using this collaborative approach strongly promotes business cohesiveness which, in turn, leads to an alignment of intention within an organization’s team as each member understands where their company is going.

RIPs require weekly measurement and reporting through online software and this acts to create direct and personal accountability in each member of a team.

The other part of the perspective is the realization that RIPS are interdependent and if one person doesn’t complete their RIP, a co-worker can’t get their RIP done. The whole team has to work together to achieve their desired

Getting Behind the Buzz of Strategic Planning • Business Strategies

A strategic planning session at Business Instincts Group.

results. If one member of the team falls behind, the whole team suffers and the end result is a low performance and reduced chance of success.

What Makes the RIPKIT Process Stand Out? There are plenty of strategic planning systems out there that will help a business build a vision and there are an even greater number of project management tools. There are, however, very few processes that enable a business to combine the visionary with the strategic. The results that can be derived from establishing and pursuing a company vision with a clear and measurable strategy cannot be understated. The power of initiating an integrated company system that promotes longterm focus, disciplined weekly measurement, accountability and nurtures a cohesive team structure can commonly make the difference between a company surviving or thriving.

Real Business Success After 15 years of running without a defined plan, Calgary-based Noise Solutions saw dramatic results after implementing a strategic planning program.

CEO Scott MacDonald says, “When we started the RIP process our sales had declined by 37 per cent from the previous year and our profitability was in the tank. Within the first year of implementing the RIP process, our revenue had rebounded by 31 per cent, but most importantly our profit had jumped dramatically. Although there were several factors that played a role in this profitability spike, a dedicated application of the RIP process ensured that, among many other things, we consistently maintained a focus on the bottom line. This last year we have experienced challenges with low natural gas prices which dramatically impact our core customers. We managed, however, to maintain our revenues and profitability which we’re very proud of.”

While the implementation of a strategic planning program may not lift the fortunes of the likes of squarewheel.com or the even very best Warm Snow Suppliers, when adopted by the right organization at the right time, it can have extremely dramatic effects. A strategic plan can have the effect of ‘turning on the lights’ for a business, enabling them, sometimes for the first time ever, to see clearly the dynamics of how their organization is currently running and make the proper steps to correct negative practices and attitudes and set about realizing long-held goals. BiC www.businessincalgary.com | BUSINESS IN CALGARY March 2013 • 25

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Landlocked: An Industry with Nowhere to Go • Energy

cked: Nowhere to Go The oil sands industry faces barriers in every direction in getting its product to export markets.

T

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www.businessincalgary.com | BUSINESS IN CALGARY March 2013 • 29

Landlocked: An Industry with Nowhere to Go • Energy

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The pipeline industry has become a lightning rod for controversy in recent months, despite having operated largely behind the scenes for decades without any significant opposition.

Now, they’re front and centre in a debate about energy that seems to contradict itself at every turn. Pipelines, for a myriad of reasons, have become a political hot potato – both at home and south of the border.

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Despite all the support for it, TransCanada’s proposed Keystone XL pipeline has faced innumerable obstacles in its push for a 2,700-kilometre pipeline from Alberta’s oilsands to Texas refiners in the Gulf Coast. Critics and opponents have been successful, at least to some degree, in their public relations battle to stop this energy highway from being built, at least without a lot of noise.

“When you talk about pipeline infrastructure and our ability to get products to market … there is a very vocal and well-organized opposition … especially out of the U.S.,” says Travis Davies, spokesman for the Canadian Association of Petroleum Producers (CAPP).

Now, the ultimate decision rests in the hands of President Barack Obama, who recently appointed environmentally-minded Senator John Kerry to the position of secretary of state (the State Department will give it the final ‘yea’ or ‘nay’ before Obama signs off one way or another).

The vital pipelines that carry Alberta’s valuable (if undervalued) crude oil from the oilsands to the industry’s customers are having a tough time these days. Look east, and there’s opposition. Look south, and there’s opposition. Look west, and there’s more opposition. North? Who knows.

30 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

Al Monaco, president and CEO of Enbridge Inc.

The pipeline industry has become a lightning rod for controversy in recent months, despite having operated largely behind the scenes for decades without any significant opposition. Now, they’re front and centre in a debate about energy that seems to contradict itself at every turn. Pipelines, for a myriad of reasons, have become a political hot potato – both at home and south of the border.

Landlocked: An Industry with Nowhere to Go • Energy

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“What we need is for this conversation to be elevated so that people understand the impact of energy on the economy – how integral it is to our way of life in Canada,” says Al Monaco, president and CEO of Enbridge Inc., which as you may know by now is proposing a $5.5-billion, 525,000-barrel-a-day Northern Gateway pipeline from Alberta’s oilsands to a marine terminal on the West Coast in Kitimat, B.C. Alberta crude oil currently sells at a huge discount compared to world oil prices – roughly $40 a barrel below West Texas Intermediate (WTI) and well below Brent crude prices. The reason

is simple: we have one customer – the U.S. – and as supply builds up with no other buyers available and nowhere to go, prices have plunged for Alberta crude. So far, the industry hasn’t even been able to get as much product as it could to its existing customer.

The direct impact on the federal government is easily $6 billion a year, and another $6 billion in lost revenue to the provincial government – the same amount Premier Alison Redford’s Conservative government is losing out on.

“It is a public finance issue in that the discounts (price differential) we’re facing today are extreme and we need to get full value for our resources,”

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Landlocked: An Industry with Nowhere to Go • Energy

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says Monaco. Enbridge is already taking steps to expand its capacity in the U.S., with $15 billion directed to new market access initiatives, not including Gateway, with projects in the U.S. to expand its capacity there.

32 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

“We have to look at this from a value chain perspective,” Monaco says.

“Where (Enbridge) fits today is that we are accessing new markets right now.”

Kinder Morgan’s Trans Mountain pipeline to Seattle markets has pro-

Landlocked: An Industry with Nowhere to Go • Energy

One of Hyduke’s slant workover rigs in Alberta.

Photo courtesy of Hyduke.

Mark Salkeld, president and CEO of the Petroleum Services Association of Canada (PSAC).

Fortunately, there are a number of options on the table. “There are so many options that they can’t all be blocked,” says Leach. He could well be right. “It’s not a one-or-the-other type of scenario,” adds Davies. “We’ve got such a great resource development

potential in this country and we’ve got markets that are hungry for it, including our own.”

Eastern Canada currently imports foreign oil to its ports and refineries – something that could change if Enbridge reverses one of its current lines to ship crude east to those energy-hungry markets. Shipments by rail, meanwhile, have been increasing rapidly.

What may change public perception is when governments across the country can no longer fund hospitals, schools, social services and other infrastructure because they lack the money – lost revenue in oil royalties – to fund them. “I don’t think the general public fully appreciates Western Canada’s role in the whole energy picture of the world,” says Mark Salkeld, president and CEO of the Petroleum Services Association of Canada (PSAC).

The oilfield services industry is just one of many that relies on accessing new markets, while expanding supply

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posed doubling its capacity as another solution to ship about 800,000 barrels a day. Meanwhile, refineries in Quebec and New Brunswick are eager to start receiving Alberta crude, but there is more opposition there as governments position themselves according to political gain.

Gary Leach, president and CEO of the Explorers and Producers Association of Canada (EPAC), says it’s a sign of the times – and of a fundamental misunderstanding about infrastructure, energy and public finances. “It’s hard to build anything now,” he says. “The lack of pipeline export capacity is a bottleneck issue and it has to be addressed.”

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Landlocked: An Industry with Nowhere to Go • Energy

In the meantime, uncertainty pervades the energy industry – along with the livelihoods and the quality of life of every Canadian who uses a hospital, school, road or otherwise enjoys the luxuries of life in this country.

to our existing customer, to fuel growth and to create jobs in this province. “We need the producers producing because our livelihood and the services sector depends on the success of the producers and the success of Canada being a supplier to the world,” says Salkeld.

All the while, the U.S. continues to move toward its goal of “energy independence.” This isn’t an issue that’s solely about the West. It’s about the economic prosperity of all of Canada.

What is also crucial is that the industry continues to improve on its gains in communicating with the public as to exactly what’s at stake. For years, the industry didn’t do

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34 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

a good enough job of getting their message out.

Over the past several months, the level of understanding and awareness by the public has increased dramatically, says Monaco. “We can’t do this from our offices,” he says. “We have to engage communities and make sure they understand what we’re doing on the project (Gateway), to understand the safety and Gary Leach, Executive Director of the environmental protection Explorers and Producers Association of Canada (EPAC). aspects we’re putting into place. The other aspect to that is you’ve got to have good performance on those issues.”

A lot of money and jobs are on the line. “If Canadians really had a grasp of the impact it will have over the next 30 years over governments’ ability to fund programs … I think Canadians would be dismayed,” says Leach, referring to various projections that about $1 trillion in revenues could be lost, or up to $35 billion a year, over the next 30 years.

At its core, it’s a relatively simple issue that has been fogged up by politics and misinformation. “Short-term political considerations have clouded what would be the application of reasonable judgment on the issue,” says Leach.

In the meantime, uncertainty pervades the energy industry – along with the livelihoods and the quality of life of every Canadian who uses a hospital, school, road or otherwise enjoys the luxuries of life in this country.

For the energy industry, it’s been a frustrating exercise – one that has no immediate solution on the horizon. You can bet energy executives and the public alike will be eagerly watching the Obama government as it reaches the final stretch of what’s hoped to be a positive outcome for the industry.

It’s vital for Alberta’s and Canada’s economic well-being into the future. “We are really good at getting our resources out of the ground, but we don’t have anywhere to send it,” says Salkeld. BiC

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The Energy Challenge • Cover

The energy challenge Former Nexen CEO Charlie Fischer weighs in on the confrontations and opportunities in a province awash in oil

BY DEREK SANKEY | PHOTOS BY EWAN NICHOLSON Charlie Fischer, former president and CEO of Nexen Inc.

C

harlie Fischer isn’t one who’s prone to think in the short term. One of the reasons he decided to leave his post as the president and CEO of Nexen Inc. was the short-sighted nature of greedy financial markets.

“A lot of people and financial institutions in the market today are only worried about quarter-by-quarter growth,” says Fischer. “But what maximizes value in the short term doesn’t necessarily maximize value in the long term.”

It’s one of many lessons he has learned along the way in a distinguished career that tested his resolve, impressed many and proved he is a man of his word.

These days, his attention is focused on community and

family life. His ethics have guided him through a brilliant career and there’s no sign of that changing any time soon.

He believes people and organizations need to step up and live by what they claim to be their morals. “For a long time I’ve had a view that you have to have a social licence to operate in addition to having a legal licence to operate,” says Fischer, who turns 63 this month. “I had enough of greedy financial markets.”

He and his wife, Joanne Cuthbertson, a chancellor of the University of Calgary, have become fixtures in the city for their work on pediatric and mental health causes over the years. What hasn’t been lost on Fischer throughout his www.businessincalgary.com | BUSINESS IN CALGARY March 2013 • 37

The Energy Challenge • Cover

“I love research.

I get excited by what’s possible and what people can do.” ~ Charlie Fischer

various roles in the oil and gas industry is the power of education to change lives. “Education is the great equalizer,” he says. “It doesn’t matter what your background is … if you have a good education, you can do well on your own account. I want to see outcomes.”

Since retiring in 2008, he’s been active in a number of organizations, including his roles today with Alberta Innovates, Climate Change and Emissions Management Corp. and the Canadian Institute for Advanced Research (CIFAR).

“I love research,” Fischer says. “I get excited by what’s possible and what people can do.”

He also sits on the Canada West Foundation because of a genuine passion to drive change. “I think you’ve got to deal with the public policy issues and that gives me some platform to talk with others about how to resolve these problems,” he says. Whether it’s chairing Hull Services or his close involvement with the Alberta Children’s Hospital (the family sponsors a chair in pediatric mental health), Fischer isn’t about to slow down.

When asked about his views on how the energy industry is perceived, he thinks people working in it every day some38 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

times take it for granted. “When you get into the discussion of oilsands – which is by no means without its challenges and has more gains to make – the contributions to the well-being of the people of the province and the country is massive,” Fischer says.

The oil and gas industry is, after all (and despite the city’s ever-growing diversity in its economy) what makes the city hum. While he agrees it’s vital to develop and innovate green technologies as a long-term solution to the energy challenge facing society, you also can’t escape the reality that companies which are pioneering more environmentally friendlier ways of exploiting resources like the oilsands are for life at the present.

That’s why Fischer is confused about the controversy that projects like TransCanada Corp.’s Keystone XL pipeline has provoked. “I don’t think people understand the oilsands all that well. The products coming out of the oilsands are no different than heavy oils in other places,” Fischer says. “If there were infinite supplies of light, sweet oil, that’s where we’d be investing our money because it would be the cheapest supply. We’re doing it because there’s a huge resource

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The Energy Challenge • Cover

there and we need to exploit that resource in a safe and effective manner.”

Whether it’s Enbridge’s proposed Northern Gateway pipeline or Keystone XL or shipping oil to the east, diversifying Alberta’s energy industry’s market is critical for its longterm success. “Markets only work when there are multiple buyers and multiple sellers,” he says. “What most people don’t realize is how much value is being lost in not having this diverse market today. Someday, we’re all going to suffer the consequences of that misunderstanding if we’re not careful. We have to change the discussion.”

40 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

Jobs, livelihoods and prosperity hang in the balance.

The industry, meanwhile, needs to do a better job at listening to the concerns about the environment and continue to build on the improvements it has already made on that front. When you look at building a pipeline like Northern Gateway, there are also a lot of misconceptions about who benefits from it.

Enbridge has taken a lot of public heat in the media simply because it’s the company building the infrastructure.

Ultimately, it’s the oil producers – and governments collecting royalties – that benefit the most. “I struggle with why

The Energy Challenge • Cover

“Let’s give Canadians the information that lets them understand the challenges that we have and why we’re losing value so we can have a more legitimate discussion around what your choices are and what you might do to solve those challenges. As a Canadian, it’s important for me to see our markets diversify and (to) get access to those markets. We need as a country to find a way to diversify our markets.” ~ Charlie Fischer

the pipeline is taking all the heat,” he says. “They’re not the biggest beneficiaries.”

Such projects would also help get Albertans and all Canadians a fair price for their oil. It’s somewhat ironic that we always report the West Texas Intermediate (WTI) price for a barrel of oil, yet what Alberta producers receive is about half that. Oil trading at around one hundred dollars a barrel translates into roughly $45-50 a barrel for Alberta crude.

Fischer estimates Canada is losing anywhere between $25-30 billion a year in lost revenue because of a lack of diverse markets. While Premier Alison Redford grapples with an astounding lack of money to fund basic programs in a province with an abundant supply of oil, residents suffer.

“Let’s give Canadians the information that lets them understand the challenges that we have and why we’re losing value so we can have a more legitimate discussion around what your choices are and what you might do to solve those challenges. As a Canadian, it’s important for me to see our markets diversify and (to) get access to those markets,” says Fischer. “We need as a country to find a way to diversify our markets.”

Politics is another matter entirely. Energy has long been clouded by political manoeuvring around the world and Alberta is no exception. The long-standing dislocation of the price for oil has obvious implications for the Alberta government and its ability to pay for basic services for its residents.

Refiners are making the most money out of the process, a fact that doesn’t get a lot of headlines yet nonetheless remains in the shadows and very real. With all of the controversy surrounding pipelines and how to export the single-largest contributing industry to Canadians’ economic health, it’s surprising that more attention isn’t being paid to the details of how it works.

“If we can’t get it together to where we can accommodate export of the largest product that contributes to Canadian society, we deserve what we get,” remarks Fischer.

Upon reflection, Fischer’s career was fast-paced to say the least. It came as no surprise to him that CNOOC Ltd. purchased Nexen recently. “I think it was unfortunate that (Nexen) seemed to have the problems that evolved after I had left. I was disappointed in that,” he says. “When they came forward with a proposal from CNOOC, it didn’t surprise me that somebody would be looking to buy them.”

He smiles when asked about his semi-retirement.

Fischer is hardly idle. He looks at causes like mental health, supporting children in need and many other issues as being paramount to a good life. Fischer and his wife are huge supporters of the Alberta Children’s Hospital, the Kids Cancer Care Foundation of Alberta and its Camp Kindle. He helped them raise $10 million and it’s among his concentrations these days. He’s all about building things, taking ideas and fuelling the people who have the expertise in their respective fields to get things done.

“I have more time to do it, but I’m less efficient because when I was (at Nexen) I had people who helped me,” he jokes. “You really miss your assistant and you really miss your parking spot.”

That aside, he’s a very busy man in the corporate world.

Fischer sits on two Enbridge boards – Enbridge Inc. and Enbridge Income Fund Holdings – as well as Pure Technologies Inc. and the National Music Centre.

On the pipeline issue, Fischer is adamant that it can get done if the public and the politicians see the plain facts – and the benefits to society. Misinformation and a lack of action hasn’t helped anybody so far. “There isn’t a lot of thought people have put into this,” he says. “We have to find ways to get things done. Doing nothing is not a solution.” BiC www.businessincalgary.com | BUSINESS IN CALGARY March 2013 • 41

2013 Calgary International Auto and Truck Show • Auto Show

BY KEITH DAVIS

The Bugatti Vitesse (shown above in Blue Carbon), a $2.2 million car that will be at the Auto Show this year.

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hat does almost $2.2 million look like? Well, if you attend the 33rd annual Calgary International Auto and Truck Show, March 13-17 at the BMO Centre in Stampede Park, you can see it ‘in the flesh’ so to speak.

“It” is the renowned Bugatti Veyron Grand Sport Vitesse.

Producing a breathtaking 1250 horsepower, this amazing automobile is not just for show. It is undoubtedly the fastest 42 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

open-top production car in the world and is destined to be a crowd-pleaser at the 2013 Auto Show. This is the first time the Grand Sport Vitesse is shown in Canada at an auto show, so let’s consider ourselves special. And the Bugatti, while certainly being the most expensive of the vehicles on display at this year’s show, will be sharing a pretty expensive neighbourhood with such names as Lamborghini, Bentley, Ferrari, Maserati and others.

2013 Calgary International Auto and Truck Show • Auto Show

The Bugatti Vitesse, in Jet Grey.

But don’t think the Auto Show is only for the well-heeled.

Nothing could be farther from the truth. There is a vast array of cars and trucks on display featuring some of the most popular brands in the world, including Acura, Audi, Chrysler, Ford, General Motors, Honda, Hyundai, Infiniti, Jaguar, Kia, Land Rover, Lexus, Mazda, Mercedes-Benz, MINI, Mitsubishi, Nissan, Porsche, Toyota, Volkswagen, Volvo and others.

Each year the Auto Show provides a showcase of the latest models and innovations offered by the top automotive manufacturers in the world, and the 2013 show is certainly no exception.

This year’s show will provide a pulse-quickening display of 2013 and 2014 cars and trucks from 42 of the world’s top manufacturers, including six well-known manufacturers of heavy trucks. These 42 manufacturers are represented by 80 individual member dealers of the Calgary Motor Dealers Association and feature hundreds of individual vehicles meeting consumers’ needs that range from budget-conscious through to the conspicuously affluent.

In addition to the regular production vehicles, there will be a number of “concept” cars at the show, demonstrating the forward-thinking challenges facing automotive designers, as well as a display of new technology aimed at greater fuel efficiencies and lessening environmental impacts.

The Auto and Truck Show opens at 3:00 p.m. on Wednesday, March 13 and is open to the public until 10:00 p.m. that day. On Thursday, March 14, Friday, March 15 and Saturday, March 16 the doors are open from 10:00 a.m. to 10:00 p.m.

The final day of the show – Sunday, March 17 – the show hours are 10:00 a.m. to 6:00 p.m.

Tickets can be purchased online at www.autoshowcalgary. com to avoid the lineups. In addition, tickets can also be purchased at the show.

2013 VEHICLES AND VIOLINS GALA One of Calgary’s most popular charitable galas of the year will take place on March 12 when the Calgary Motor Dealers Association will stage its 14th annual Vehicles and Violins Gala in the BMO Centre at Stampede Park. Since its inception in the year 2000, the Vehicles and Violins Gala has raised more than $2,200,000 for charity.

Guests attending the $150-per person 2013 gala will enjoy exclusive entertainment with musicians of the Calgary Philharmonic Orchestra, as well as delectable international cuisine, a selection of fine wines and a preview of the 2013 Calgary International Auto and Truck Show. In addition, highly-popular silent and live auctions will assist in raising money for charity through the offering of a wide variety of items from merchandise to trips and a host of others.

First staged in 2000, the Vehicles and Violins Gala has, in its 14-year history, benefited Alberta Adolescent Recovery Centre, Alberta Cancer Foundation, Alberta Children’s Hospital Foundation, ALS Society of Alberta, Alzheimer Society of Calgary, Calgary Drop-In and Rehab Centre, Calgary Meals on Wheels, Calgary Prostate Cancer Foundation, Canadian Breast Cancer Foundation, Canadian Diabetes Foundation, CMDA Entrance Endowment Fund at SAIT Polytechnic, HeartString Program of the Calgary Philharmonic Orchestra, Heart and Stroke Foundation of Alberta, www.businessincalgary.com | BUSINESS IN CALGARY March 2013 • 43

2013 Calgary International Auto and Truck Show • Auto Show

BMW M6 Gran Coupe

NWT and Nunavut, Hospice Calgary, Inn From the Cold Society, Kids Cancer Care Foundation of Alberta, Missing Children Society of Canada, Parkinson’s Society of Southern Alberta, and Prostate Cancer Institute of Calgary.

The 2013 gala will benefit the ALS Society of Alberta, KidSport and Make-A-Wish Southern Alberta, three extremely deserving and worthwhile charities providing outstanding service to individuals and families in need in Calgary.

To obtain an invitation to Vehicles and Violins 2013, please contact the Calgary Motor Dealers Association at (403) 974-0707 or fax (403) 974-0711. A gala invitation can also be obtained by contacting the Auto Show website at www.autoshowcalgary.com.

COMMITTED TO CALGARY The Calgary Motor Dealers Association (CMDA) is a nonprofit organization that represents 80 ‘new’ automobile and truck dealerships in Calgary. It was formed in 1951 for the enhancement of the industry and the betterment of the community. The CMDA is also closely affiliated with the Motor Dealers Association of Alberta (MDA) which has 333 member dealerships across the province.

As a large group of members committed to community spirit, the Calgary Motor Dealers Association enjoys the opportunity to get involved with, and make an impact on, special causes. In addition to monies raised at the Calgary International Auto and Truck Show (a not-for-profit undertaking, the proceeds from which are donated to charity), the CMDA also hosts its annual Vehicles and Violins Gala, which in its 13 years of operation has raised more than $2.2 million for a wide variety of charities. This year, the 14th annual gala takes place on March 12 in the BMO Centre at Stampede Park.

For the past 28 years, the CMDA has also been a sponsor of the Motor Dealers Association of Alberta’s Charity Golf Classic which has raised millions of dollars more in support of Special Olympics Alberta.

46 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

Each December, since 1991, 100 per cent of CMDA members have joined in the Calgary Inter-Faith Society’s Annual Mayor’s Christmas Food Drive by collecting donations at their dealerships. Those donations, over the years, have resulted in hundreds of thousands of dollars more for charity, plus tons of donated food.

In 1994 the CMDA established the Calgary Motor Dealers Association Memorial Scholarship to be awarded annually to worthy students attending post-secondary institutions who are seeking a career in the automobile industry. These scholarships are awarded in recognition of past members of the CMDA for their contribution to the community and to the industry.

The CMDA also established an endowment in 1998 to fund the annual Calgary Motor Dealers Association Entrance Awards for students entering the automotive management training program or full-time technology or apprenticeship training programs offered by the transportation department at SAIT. The CMDA also awards 16 scholarships annually to students attending SAIT in the transportation department.

The CMDA has also provided financial support to scores of Calgary charities outside of its ‘organized’ events. Just a few of these include Discovery House (Udderly Art Auction), Calgary Drop In Centre, Hull Child and Family Services, Children’s Wish Foundation of Canada, Foothills Hospital Development Council, Calgary Women’s Emergency Shelter, Opening Gaits Therapeutic Riding Society, STARS Foundation, Calgary Rotary Challenger Park, Emma Maternity House Society, Hospice Calgary, Inn From the Cold, Mustard Seed, Alzheimer Society of Calgary, Brain Injury Group, Easter Seals – Camp Horizon, Providence Child Development Society, Renfrew Educational Services, Woods Homes Foundation, Feed the Hungry, PARTY (Prevent Alcohol and Risk-Related Trauma in Youth) Calgary Program, and many other worthy organizations.

All in all, Calgary’s love affair with the automobile appears to be a mutual affection. BiC

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It’s Not Easy Being a Junior • Oil & Gas

IT’S NOT EASY BEING A JUNIOR Junior oil and gas companies get tough and feisty in uncertain economic times.

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BY JOHN HARDY

t’s nice of the oil and gas industry not to be too condescending when it comes to the differences between big and small. Because, no matter what, it’s bound to be a put-down.

Unless they use the word “junior.”

Junior sounds better. Friendlier, gentler and only a hint of patronizing, because dictionaries and Wikipedia say “junior” means “low-ranking, inferior, lesser or underling.”

Of course that’s not what Imperial Oil, Husky, Suncor (Canada’s three biggest oil and gas companies) and others meant to say. It’s just that, aside from subsidiaries, the Canadian oil and gas industry only has about a half-dozen booming (truly Canadian) giants.

The Toronto Stock Exchange/TSX Venture Exchange confirms that Canada is home to 35 per cent of the world’s publicly traded oil and gas production companies and industry facts and figures show that a majority of Canada’s publicly traded oil and gas companies are vital, aggressive, resilient, entrepreneur-driven and risk-taking juniors.

But suddenly, even in oil-and-gas-rich Alberta, it’s not easy being a vital, aggressive, resilient, entrepreneur-driven and risk-taking junior. At least not as easy as it used to be about seven or eight speed-bumped years ago.

Carmen Goss, president of Prominent Personnel, has been staffing Alberta’s oil and gas industry for more than 20 years and works from a database of some 55,000 contacts. She relates to the current bumpy ride.

“Before 2008, we had a niche market and things were great. And then came the infamous two-year slump, from 2008 to 2010. A slump in funding flows, rig counts and hiring was drastically down,” Goss remembers.

The going got tough and the tough still keep going. Today’s juniors now confront an octopuslike, multi-tentacled dilemma.

50 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

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It’s Not Easy Being a Junior • Oil & Gas

don’t have to report or send out press Soaring costs guesstimate that the releases on what and how they are $20-million startup of 10 years ago doing,” says Gary Leach, executive would now cost well beyond $100 mildirector of the Explorers and Produclion. ers Association of Canada (EPAC).

But it’s not only about funding.

There are about 100 publicly traded Juniors must also deal with dismal juniors active in the Canadian oilprices, sagging production volumes, patch. While that number is down changing trends, weak markets as well about a third in the past five or so as reluctant investors. years, all things considered, the outPrices are at 11-year lows and still look is still positive. sinking. Gas production is also dropAlberta is the largest producer of ping and Statistics Canada crunched conventional crude oil, synthetic numbers to show that Canadian compacrude, natural gas and gas products nies produced 5.9 per cent less natural in Canada and Calgary is the hub for gas in January 2012 than in January most oil and gas head offices.

2011. (Crude oil production grew 8.4 “The industry is in transition and per cent during the same period.) proving to be very adaptable. They “Last January, when gas prices took Gary Leach, Executive Director of the Explorers and are working with new business moda sharp dive, gas juniors became the Producers Association of Canada (EPAC) els, most have reduced their reliance walking dead. No hope for attracting on natural gas and nearly half their investors but not yet bankrupt,” snaps production is now from oil,” Leach Keith Schaefer, the founder and editor explains. “They are also bigger than of the Oil and Gas Investments Bullethey used to be and quicker in adapttin and an industry expert with more ing to industry changes.” than 20 years of experience raising oil Juniors, like Calgary’s Guide Exploand gas exploration capital. “Unforturation, Bonterra, Angle, Vero and others nately, many gas juniors are still stuck have made drastic adjustments, sold off in that situation.” natural gas properties and transformed Others have either vanished or are themselves into tight oil producers. still running into dead ends, trying Leach cautions that for originally to find buyers for their devalued gas gas-producing juniors, it’s not always assets while they tread water, hoping a painless transformation. “You can’t and waiting for a natural gas turnturn yourself from a gas producer into around which (if it happens at all) a crude oil producer overnight. Prices could take years. are very low for natural gas-weighted Depressed natural gas prices have assets and in many cases there may forced many juniors to shift their not be any buyer interest.” strategic business plans and reinvent Carmen Goss, President of Prominent Personnel Despite all the gung-ho daring and themselves into oil producers. successes in promising plays in the BakEven Encana, Canada’s largest gas ken, the Montney, the Cardium and the Shaunavon, Alberta’s producer with a $13-billion market cap, has been selling reinvented and refocused juniors wonder if luck and circummultibillion-dollar assets and focusing on liquids, hoping stance will ever be on their side. to compensate for the depressed price of North American They now confront yet another challenge, and this one is natural gas. totally beyond their control. The volatile and unpredictable Encouragingly, some are turning industry lemons into crises in Europe are discouraging investors from anything lemonade. that could be risky or just tough to sell in a hurry.

They got feisty, experimented with new drilling techAlthough no junior is truly “typical” when it comes to nologies and tapped so many new tight oil plays that they effectively dealing with the gamut of current challenges, actually reversed sluggish and declining conventional oil Calgary’s Shoreline Energy is a dynamic and interesting production. Many are still growing and keeping debt low to case-in-point example. ensure themselves staying power over the longer term.

“Fortunately we are flexible with the ability and expertise “The 1000 or so juniors and intermediates, mostly to adapt,” acknowledges Shoreline president and COO, Kevin headquartered in Calgary, range from small startups to Stromquist. “Our timing was right and we are moving from a publicly traded companies. It’s impossible to track the gas-weighted to a more balanced oil and gas-weighted proprivate ones because they function so independently, they 52 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

CSI CANADA SAFETY Experience. Passion.

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ince 2006, CSI Canada Safety has been redefining health, safety, security and environment for the HSSE industry through a passion for innovation and quality. By working closely with their clients in all aspects of the oil and gas sector, CSI has become key mentors and influencers for safety on drilling and completions, mining exploration, oilsands coring and exploration, construction, service rig operations and camp facilities.

Experience matters! With well over a thousand years of oil and gas experience in its workforce of about 125 highly trained, qualified team members, the company works at all levels to lead real change in the HSSE industry. They provide guidance for workers to eliminate hazards wherever they may exist and to ensure legislative and company standard compliance to avoid potential incidents.

A wide range of services include: Safety Services

• Maintaining safety regulations on the worksite • Regular safety audits and site inspections • Quality safety meetings, orientations and JSAs • Documentation tracking for regulatory compliance • Emergency drill development, execution and analysis • Industry incident reviews and thorough investigations • Camp safety management and inspections • First aid, Enform approved well service BOP, general lifting and customized training courses • Rig start-up specialists • COR audits

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• Breathing air trailers • Heated safety showers • Security trailers • AED’s etc.

• State-of-the-art air monitoring systems In addition, CSI truly goes above and beyond by continually analyzing, interpreting and innovating on all levels of HSSE on their worksites. The company has established itself as an industry leader by mentoring workers and influencing how people view worksite safety. They will stop any unsafe work practices and closely monitor and review all practices on a worksite to ensure HSSE standards are met, but strive to have standards exceeded to ensure everyone goes home safely.

They bring their expertise directly to their clients. CSI’s team members receive ongoing training to maintain a higher level of service than other companies in the HSSE industry.

They are proud of that.

They are continually growing to serve an expanding base of clients. Growth is always done with quality as a foremost consideration, as they work to expand operations in North and South America to the ever-growing need for their services. The aim is to build their staff level to 200 in the future as they further expand. “We’re planning on being worldwide within the next couple years,” says CSI’s HSSE manager Larry Stewart.

CSI recently acquired Tallrig International in late 2012 to help achieve growth targets. As a proven leader that offers complementary services to CSI, the acquisition adds a new layer of services to clients. They can now build health and safety management systems by developing safety manuals, orientation manuals, H&S forms, reporting spreadsheets and other documents. They offer industry training courses customized to meet the client’s needs as well as conduct COR safety audits and all related fieldwork. Not only can they design a client’s program, they will place specialists on the sites to manage it.

CSI is wholly owned by its management and consultant team, which reinforces a strong commitment and belief in the viability of the company. As the company grows, ownership will be opened up to a wider range of team members to further demonstrate this commitment to ownership, quality and excellence in its field.

Dean Shaver, who founded CSI with little more than a trailer, a laptop and some business cards in its early days, did so because after suffering his own workplace accident – and by seeing how disjointed and unorganized the HSSE industry was at that time – he wanted to instill an unprecedented level of dedication, accountability and pride in the company and its people.

Today, the team of safety professionals demonstrates this passion in every aspect of what they do.

“CSI is successful because we care,” explains Shaver. “This is not just a job. We want people to go home. We have been there ourselves on the worksite and we know what changes should happen.”

CSI is different than any other HSSE company because all of their staff has been on the worksite, from the CEO to the field worker. They get the calls and have done the job. How do you stop an unsafe act if you don’t have the knowledge about the job? We have the knowledge and experience.

Call toll-free 1-877-919-7473 (or 780-826-7642) • www.csicanadasafety.com Calgary • Bonnyville • Fort St. John

It’s Not Easy Being a Junior • Oil & Gas

Always important facts of business life, duction profile. We adjusted from being a funding is particularly vital for Alberta 10 per cent oil-weighted company to now juniors as they do whatever it takes to being about 30 per cent oil-weighted. By navigate the bumpy ride of today’s (and mid-2013 we hope to be 40 per cent oil tomorrow’s) volatile oil and gas speed and the ultimate goal is to be 50-50. bumps.

“Since 2008 most juniors have been mov“We are looking at solutions that are ing toward a balanced production portfolio. going to take five, 10 or 15 years for Growth needs 5000 to 10,000 boepd (barrels improvement on the demand side,” Leach of oil equivalent per day) to be market relpredicts. “So how do you get through the evant. Most juniors won’t wait that long,” is next quarter or the next year or the next Stromquist’s reality check. “That’s why they two years?” are consolidating, aiming for a viable boepd “We can maximize cash flows, pay a to sell to a major or an intermediate looking sustainable dividend and grow prudently for growth.” but ultimately it all comes down to the Alberta juniors also face the frustratKeith Schaefer, the founder and editor of the Oil and Gas Investments Bulletin drill bit,” Stromquist shrugs. “At the end of ing challenge of viable markets. “They are the day, we must find, produce and marbeing squeezed,” Schaefer says with a pasket hydrocarbons at a low price. That’s the sion, pleading the case against same old/ bottom line.” same old markets. “Canadian energy is, by Despite gloomy forecasts about sagfar, the cheapest in the world and the only ging prices, demand, production volumes, saviour for this group is finding alternate changing trends, investor jitters, transmarkets. We need to take the gas to Asia, portation and new markets, Calgary’s oil not the U.S.” and gas juniors are proving to be a tough, He adds, “The industry’s most pressing feisty and resilient group. current and short-term need is getting Industry insiders say exploration and our oil volumes to viable markets. While production of unconventional oil and gas juniors have boosted volumes of oil, will be a boon to Calgary’s juniors and ultimately new oil export pipelines are investors with an appetite for risk. desperately needed.”

“I see it as a challenge to the entrepreGoss, who is well connected to oil and neurial spirit, which Calgary has in gas movers and shakers in her Prominent Kevin Stromquist, Shoreline President & COO abundance,” Stromquist says with a hint of Personnel files, echoes the push for new gutsy pride. “Juniors are very adaptable and markets. “I hear it a lot, lately. Transportathey keep proving that it’s possible to flourish, even in tough tion and new markets are definitely hot topics.” times. They will figure out the road map to success, as they And juniors must also deal with the much-heard and always have.” BiC simplistically stereotyped financing challenge – funding.

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54 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

The Core Explored • Real Estate

The Core Explored

BY CAMIE LEARD

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hile East Village rises, the beltline bulges, Eau Claire idles and the West End waits, the city shifts from rapid, reactionary development to a measured approach to downtown density, diversity and design “There has never been a more exciting time to be a part of developing Calgary’s core,” says Sonny Tomic, manager of centre city planning and implementation at the City of Calgary. With Rollin Stanley taking the helm as general manager of planning, development and assessment, Tomic says the city has a new commitment

to innovation in planning and design.

“We’re at a tipping point,” he says.

“We’re experiencing something of a renaissance with a whole new generation of thinking on design. The result will be a much more livable, more vibrant downtown going from 30,000 residents today to more than 70,000 in the next 25 years.”

In addition to numerous private condominium and commercial developments (see examples in the coming pages), the city has its own projects on the go including redevelopment of the 1st Street and 8th Street underpasses (along the lines of the new 4th

More public art, like Prism, is part of the city’s plan to make the downtown core a more livable, vibrant and beautiful place. Photo credit: Sonny Tomic

Street SE underpass), winter gardens, street parks (sparks) a redevelopment of Volunteer Way along Centre Street and 10th Avenue S. and Heritage Way along 13th Avenue, the 8th Street SW corridor and more.

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www.businessincalgary.com | BUSINESS IN CALGARY March 2013 • 55

The Core Explored • Real Estate

Once a mattress factory, the iconic Simmons Building is undergoing upgrades to get ready for new retail tenants to be announced this year. Photo by Mark Eleven Photography. Courtesy of CMLC.

The victim of poor planning and economic swings, the Eau Claire Market is scheduled for demolition and revitalization near the beginning of 2014. Courtesy of Harvard Developments.

Waiting on the West End

ing along, the CMLC will turn its attention to realizing the commercial/retail development components of the masterplanned community.

“With new residents moving into the first two condominium projects in 2015, we need to be able to satisfy their retail needs within the community,” says Veres. “People need to understand where they can buy their groceries, grab a coffee or sit down for dinner; there’s a lot of unique opportunities for both developers and tenants within East Village to provide such services.”

After a flurry of development activity in the downtown west end 10 years ago, the community seems to have been caught in a holding pattern. With the opening of the West LRT line and proposed condo towers in the pre-construction phase (LaCaille’s Vogue for example), conversations about this neighbourhood’s potential have begun again.

“The original West End Redevelopment Plan was not the best possible plan for that community,” says Tomic. “We will be starting an extensive community and stakeholder consultation process in Q3 of 2013 to develop a new plan that makes sense for the area.”

East Village Rising After six years of strategic planning and more than $160 million in infrastructure upgrades, Calgary Municipal Land Corporation (CMLC) has finally shaken the decadesold curse that had befallen East Village. With shovels in the ground on residential and cultural projects, the oldest, newest, warmest, coolest community in Calgary is finally on the rise.

“We had a big year in 2012,” says Susan Veres, vicepresident of marketing and communications for CMLC. “In March we opened our EV Experience Centre, in April we announced a sale of a parcel of land for a Hilton hotel, in September the first mixed-use residential tower by Vancouver-based Embassy Bosa (called Fuse at Evolution) broke ground and we opened the second phase of RiverWalk. Then in December, our development permit for the St. Patrick’s Island (SPI) rejuvenation program received city approval.”

The first part of 2013 has also been ablaze with activity.

The second residential tower, Fram+Slokker’s “First,” project broke ground in early February and the National Music Centre project began construction on February 22.

What’s next for EV? Veres says they’ll be unveiling the St. Patrick’s Island landscape plan in April, and the Simmons Building will begin an improvement program to make way for new retail tenants. Infrastructure upgrades will continue along 7th Avenue SE, the SPI Bridge will begin to form itself and planning will start for RiverWalk Stage 2. The new Central Library project will advance as CMLC has begun the process of identifying and engaging a project manager for the designated location just east of city hall along 3rd Street SE. With residential, cultural and infrastructure projects mov56 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

Eau Claire Idling When Regina-based Harvard Developments bought the 2.89-hectare property that is the Eau Claire Market in 2005, it immediately began plans to tear it down and replace it with a major mixed-use development including highrise condominiums, offices, shops and restaurants. But by the time designs were completed and approved, Calgary found itself in the middle of a recession and Harvard had to put its plans on hold.

Rosanne Hill, VP of leasing for Harvard Developments and managing director of Harvard Buildings Inc., says that while the two-year wait for the economy to recover puts the project behind, the developer has used the time to reevaluate plans and prepare the site.

“Of course, we’d prefer to be further along,” she says. “But since we bought the property, we have positioned the Market to be ready for redevelopment. The way it is today is by design.”

The city’s planning department is currently revisiting the stipulations of the development permit for the original design, a process Hill says will take up the better part of a year.

“We are also out to the architectural and master-planning market for a new concept design and we hope to be able to begin construction early in 2014,” she says. “We want it to be an iconic, spectacular place in downtown Calgary where people live, work, play and shop.”

The new concept design, anticipated this spring, will take into consideration the new realities of the real estate market in Calgary.

“While the Calgary economy is now in much better shape, not all areas are as strong as they once were and the new design will allow us to phase the project and approach the segments of development to be better timed with market demand.”

The Core Explored • Real Estate

OFFICE TALK According to CB Richard Ellis (CBRE)’s 2013 Canada Market Outlook, oil and gas companies continue to drive demand for inventory in the downtown core. Greg Kwong, executive VP and regional managing director for CBRE brokerage services in Calgary, says that’s good news and … well … mediocre news.

“On the negative side, the concern is that oil and gas companies will be stretched to find capital to grow in 2013 and we’re most likely looking at little or no change in demand over last year,” he says. “On the positive side, last year was the best year ever and gauging the health of office leasing by any metric shows we’re running full steam ahead.”

Two downtown office projects currently under construction will contribute a combined 1.7 million square feet to inventory. The 841,000-square-foot Eighth Avenue Place West Tower is slated for completion in 2015 and will come to market fully leased while Calgary City Centre, currently 30 per cent leased at 820,000 square feet, will also be completed in 2015.

While the market waits for these new projects to open, vacancy rates should hold steady at around 4.9 per cent (over 4.8 per cent in 2012) and the lease rate for Class A inventory will rise slightly to $41.61/square foot (over $40.79 in 2012).

Beltline Bulging While the Eau Claire project percolates and the East Village rises, the city’s beltline region is bursting at the seams. With the residential real estate market firmly in recovery, new condo towers are popping up throughout the beltline. Cody Battershill is a real

estate agent specializing in new innercity homes and condos.

“There has definitely been a resurgence in projects since the market recovered,” says Battershill. “When you look at resales, there’s a shortage of inventory, so there’s definitely a demand.”

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And where there’s demand, supply is never far behind. With nearly 2,600 units in 11 projects planned or under construction in the community, the beltline bulge is in full vigour.

The new Mark on 10th project is of particular interest to Battershill as it is a symbol of the bigger picture: that experience matters when developing residential highrises and that the Calgary market inspires developer confidence.

“I’m really excited about Mark on 10th because this is (Vancouver-based) Qualex’s fifth building in Calgary over two decades with more in the planning stages,” he explains. “This kind of experience tells me the project will succeed and while demonstrating confidence in the Calgary market by developers from other cities.” BiC

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A City in Flux • Construction

A City in

Flux Construction activity is changing the face of Calgary | BY DEREK SANKEY

L

ike a lot of Calgary businesses these days, OPUS Corp. is taking a steady approach to things. The company is both a developer and a builder with projects on the go throughout the city. “As a builder, I can tell you we’re very solid (and) we could grow faster and more aggressively if we wanted to, but we keep a steady pace, try to find the right people,” says Hannes Kovac, who oversees the company’s projects.

With the adoption of the Plan It Calgary document, which aims to stop the intensification of urban sprawl, Kovac is focusing his sights mainly on developments closer to the

inner city. All indications are that future planning will encourage the types of developments OPUS is currently working on as the city tries to stop the sprawl and kick-start nodes of high-density developments on areas bordering the inner city and within it.

The hiring of Rollin Stanley, a well-known and respected city planner who is now the general manager for planning, development and assessment at the City of Calgary, means there is a concerted effort to promote higher-density developments around the beltline areas and beyond into the heart of the inner city.

Opus Corp. is developing its Royal Vista Professional Building in the northwest neighbourhood of Royal Oak in Calgary. (credit: Opus Corp.)

www.businessincalgary.com | BUSINESS IN CALGARY March 2013 • 61

A City in Flux • Construction

There has been a rush of condo and apartment construction activity over the last several months, which continues into 2013, but expect fewer starts on the residential, multi-family side of the construction sector.

city and surrounding areas. “Our focus is the beltline and the suburban areas,” says Kovac. “It was a conscious decision because of the trend developing at city hall.”

In 2013, construction activity is expected to remain largely unchanged from last year, with some notable exceptions.

There has been a rush of condo and apartment construction activity over the last several months, which continues into Mark on 10 : Slated for completion in 2015 and bringing 270 units to market, Mark on 2013, but expect fewer starts on the residential, multi-family 10 is just one of nearly a dozen condo projects on the go in the beltline.

Courtesy of Qualex-Landmark. side of the construction sector.

In 2012, there were 6,800 multi-family building permits issued for new starts – the highest level since the early 1980s – and the “We see more opportunities closer in forecast is for about 6,000 new starts than further out,” says Kovac. “But at in 2013, says Richard Cho, a senior the end of the day, we go where our market analyst with Canada Mortgage clients are.” Which explains, perhaps, and Housing Corp. (CMHC). “We don’t why OPUS has ironically just finished expect to see that level of activity this a development in the Royal Oak neighyear,” he says. bourhood of Calgary, in the city’s far Meanwhile, the total value of buildnorthwest corner. The company coming permits issued across the city was pleted a mixed-use medical, retail and $4.48 billion last year, down one per office complex adjoining a shopping cent from $4.53 billion in 2011. Figcentre in that area, arguably a prime ures for major projects on the books example of sprawl. for 2013 won’t be released until later It’s a very different project from this spring, but Cho doesn’t expect the firm’s OPUS 8 office tower downany surprises. Last year’s numbers town, completed a couple years ago. are still dramatically higher than the Despite that project, the company five-year average of $3.9 billion in Richard Cho, a senior market analyst with Canada will generally concentrate on innerMortgage and Housing Corp. (CMHC) permit values. th

th

62 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

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A City in Flux • Construction

Neighbourhoods with the most construction activity, on the residential side, include the north and south ends of the city – a decidedly opposing trend in comparison with the direction of the city’s new municipal planner, Stanley.

One of the exceptions is Remington Development’s Quarry Park, with 2,200 residential units to be built upon comple-

tion of the project, which has already transformed that area to date.

No wonder that Imperial Oil decided to move its headquarters to the neighbourhood. Actually, it may be early to call it a trend, but more corporate headquarters are moving out of downtown into the burbs. Canadian Pacific Railway

A glance at some Calgary construction projects planned or underway in 2013: Company

Project Description

Cost in $ Millions

Construction Schedule

Status

WAM Development Group / AIMCo

‘StoneGate Landing’ Retail, Office and Industrial

$2,250.0

2010-14

Under Construction

Infrastructure

Calgary Airport Authority

International Terminal

$1,427.0

2011-15

Under Construction

Infrastructure

Calgary Airport Authority

North-South Runway

$ 620.0

2011-14

Under Construction

Institutional

Alberta Health & Wellness

Foothills Medical Centre (McCaig Tower)

$ 550.6

2006-14

Under Construction

Institutional

City of Calgary

New Downtown Library

$ 225.0

Commercial/Retail

AIMCo/Ivanhoe

Eighth Avenue Place (West)

$ 195.0

2012-14

Under Construction

Tourism/Rec

Cantos Music Foundation

National Music Centre Redevelopment

$ 110.5

2012-14

Under Construction

Residential

Qualex-Landmark

‘MARK on 10th’ Condo

$ 100.0

2012-15

Under Construction

Commercial/Retail

Cadillac Fairview

City Centre (Eau Claire Phase One)

$ 60.0

2012-16

Under Construction

Commercial/Retail

Target

Conversion of six Zellers Stores

$ 60.0

2012-16

Under Construction / Completed

Commercial/Retail

Centron

Centre 10

$ 51.5

2012-13

Under Construction

Commercial/Retail

PRISM Developments

‘Prism Place’ Office

$ 36.7

2012-13

Under Construction

Tourism/Rec

Calgary Stampede

‘Agrium West’ Agriculture Arena / Exhibit

$ 36.0

Proposed as part of Stampede $400 million expansion

Residential

Cove Properties

Nuera 2

$ 31.0

Planned

Residential

Streetside Developments

Townhouse/Condo

$ 28.0

2011-13

Under Construction

Commercial/Retail

Qualex-Landmark Group

‘Calla’ Condos

$ 27.7

2011-13

Under Construction

Residential

WAM Development

Stoney Industrial Centre 5

$ 13.1

Proposed

Commercial/Retail

WAM Development

Stoney Industrial Centre 6

$ 20.6

Proposed

Commercial/Retail

Remington Development

‘Champagne at Quarry Park’ Condo

$ 18.6

Commercial/Retail

OPUS Corp.

Shopping Centre

$ 9.0

TYPE Commercial/Retail

SOURCE: ALBERTA FINANCE AND ENTERPRISE

64 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

Proposed

2012-13

Under Construction Proposed

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A City in Flux • Construction

Rendering of the National Music Centre. The National Music Centre will straddle 4th Street SE at 9th Avenue at the gateway to a revitalized East Village.

Photo courtesy of Cantos Music Foundation/National Music Centre Project.

is moving its own headquarters to its train yards land and smaller engineering firms have been gravitating towards office locations surrounding downtown for the past few years.

“We’re still in a low single-digit office vacancy environment downtown, so the market is far from overbuilt,” says Randy Fennessey, president of Colliers International (Calgary). “While it is possible that we will see one or two additional downtown office developments announced in the next year, landlords and tenants are moving forward more cautiously now, due to a higher degree of market uncertainty in the energy sector.”

Commercial, retail and single-family construction appear to be experiencing the highest activity this year, while multi-family housing takes a breather.

66 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

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A City in Flux • Construction

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construction, while Eighth Avenue Place will be the next office building to begin occupancy this year followed by Calgary City Centre in early 2015.

The National Music Centre’s new complex is just getting under construction, while Eighth Avenue Place will be the next office building to begin occupancy this year followed by Calgary City Centre in early 2015.

On the industrial and commercial side, it’s worthy to note that the Calgary Real Estate Board (CREB) has launched a new website, www.explorecalgaryregion.ca, that serves as an online tool to search, map and research commercial and industrial businesses and properties around the city.

Strong in-migration numbers in 2013 will continue unabated, fuelling the continued pace of residential construction activity in the suburbs as newcomers flock to Calgary for new opportunities.

On the retail side, it’s no surprise that Target’s invasion into Canada has stoked

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A City in Flux • Construction

On the retail side, it’s no surprise that Target’s invasion into Canada has stoked construction activity around the city as it converts old Zellers stores into the Target brand.

construction activity around the city as it converts old Zellers stores into the Target brand. Walmart, meanwhile, hasn’t flinched and is moving to renovate and expand some of its current stores to compete directly with Target’s new entry into the Calgary market.

It has always been a delicate balance between what city planners want to see and what developers want to deliver to their customer base, which traditionally seek out cheaper residential units on the outskirts of Calgary. Commercially, the trend toward suburban nodes of office activity seems set to continue in 2013. Retail is expected to continue on pace with 2012, but is also expected to migrate toward the

outer edges of the city in areas such as Shepard, Okotoks and Balzac, with giant power centres and large-scale outlets in the works.

However the city’s construction activity unfolds this year, if any indication can be taken from 2012 it’s that residential construction will lead the pace. Last year, the residential sector rose by 15 per cent to $2.6 billion, compared to a one per cent decline overall in the value of building permits. And, it seems, Calgarians haven’t lost their fascination with a life in the burbs.

“Our recent market in Calgary has become more balanced, which means fewer listings in the resale markets as some buyers may also look to the new home markets,” says Cho. BiC

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www.businessincalgary.com | BUSINESS IN CALGARY March 2013 • 69

CALGARY NEWS

SPRING 2013

Page 1 - Sir, May We Have a Little More, Please | Page 3 - President’s Report | Page 6 - BOMA Insider | Page 8 - Board of Directors | Page 9 - Beyond Earth Hour | Page 11 - David Parker

Sir, May We Have a Little More, Please?

Sandy McNair

A

little more growth, please. A little more growth in population and employment. Oh, and higher prices for Alberta bitumen, too, please.

Calgary’s office market has grown faster than anywhere else in North America. During the past 10 years, 15.2 million square feet have been completed, which means 24 per cent of Calgary’s office inventory is less than 10 years old.

No other major market comes close to growing that fast for that long. Corresponding numbers for Vancouver, Toronto and Montreal are 10 per cent, 9.3 per cent and 7.9 per cent respectively. Currently, the Calgary office market is tight, with very little space available in 2013.

However, more office space is on the way. Not all of it is leased, yet, and many of the firms taking new space are leav-

ing existing space behind that will eventually need to be filled.

But not right away – in most cases, not until 2014, 2015 and 2016. Currently under construction there are 13 office buildings containing 3,144,857 square feet of office space, of which 977,864 is available for lease. Brookfield, Oxford, Aspen and others are positioned to start more projects in 2013 and beyond that could add as much as seven million square feet more.

What happens next? Will growth continue, moderate, halt or go in reverse?

Currently the downtown Class A sub-market is 2.1 per cent available with Class A, B and C downtown being a very tight 3.6 per cent available. Only 6.2 per cent of the entire Calgary office inventory is available for lease.

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BOMA Calgary News

Calgary’s office market has grown faster than anywhere else in North America. During the past 10 years, 15.2 million square feet have been completed, which means 24 per cent of Calgary’s office inventory is less than 10 years old.

BOMA Calgary News BOMA Calgary News is a co-publication of BOMA Calgary and Business in Calgary.

Business in Calgary If no incremental leasing were to occur and no additional buildings started the availability rate would climb to 7.2 per cent, 9.1 per cent, 10.1 per cent, 10.7 per cent and 10.7 per cent at end of each of 2013, 2014, 2015, 2016 and 2017. The full impact of Imperial Oil’s move is included in these calculations, but the impact of Canadian Pacific’s (CP) announced move is not. This is not a forecast, but merely a reference point from which alternative demand and supply scenarios can be rationally explored.

Fortunately inventory, new supply, current availability and future availability is being carefully monitored. The key variable is demand. Will the energy sector continue to have access and appeal to equity capital? Will the outlook for access to global markets by pipe and rail improve? Will the gap between global pricing and Alberta bitumen narrow? Will Calgary’s energy talent and technology remain competitive on the global stage?

Sir, may we have a little more, please?

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BOMA Calgary 120, 4954 Richard Road SW, Calgary, AB T3E 6L1 Email: info@boma.ca • Web: www.boma.ca Tel: 403.237.0559 • Fax: 403.266.5876 COMMUNICATIONS COMMITEE Rita Reid, Chair, Cominar Jamie Zachary, Calgary Herald Siobhan Koroll, Calgary Herald Jay de Nance, Fairfield Commercial Real Estate Roger Hanks, Skyline Roofing Giovanni Worsley, MNP LLP Kim Bogner, 20 Vic Management Bobbi Joan O’Neil, Business in Calgary Lia Robinson, BOMA Calgary

Board of Directors CHAIR Chris Howard, Avison Young Real Estate CHAIR-ELECT Ken Dixon, Oxford Properties Group SECRETARY TREASURER Chris Nasim, GWL Realty Advisors PAST CHAIR Don Fairgrieve-Park, Bentall Kennedy (Canada) LP PRESIDENT & CSO William G. R. Partridge, CAE, BOMA Calgary

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The Building Owners and Managers Association of Calgary publishes BOMA Calgary News quarterly. For advertising rates and information contact Business in Calgary.

Publication of advertising should not be deemed as endorsement

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32

President’s Report

Commercial Real Estate in China

By William G.R. Partridge, CAE, President & Chief Staff Officer

M

y good fortune had it that BOMA China invited me as their guest to deliver a presentation to the Chinese Real Estate Network Conference in Beijing. This would be my first trip to China, and the prospect to see a different country, its people and its culture was very exciting.

I happened to arrive in Beijing during a period of the worst smog in history; a face mask would not entirely protect me from the negative effects.

A person with respiratory difficulties would certainly struggle. Situated on a fluvial plain and surrounded by mountains to the north, this city of some 20 million persons is quite susceptible to smog when there is an inversion such as there was during my visit.

The subject of this conference was health and safety in the built environment. BOMA Calgary, along with others associations, companies and the Alberta provincial government, had created a guide – Recommended Practices in Health and Safety: a guide for building owners and managers. With permission, BOMA China had created its own version of the guide, which served as a point of reference at the conference. On this trip, I was invited by the Chinese to deliver a keynote address on health and safety. My theme was simply: health and safety is good business. My presentation covered the underlying drivers behind our health and safety guide and what it has meant for our industry and our association.

As a trade association representing the commercial building ownership community, BOMA seeks continuous ways to create value for its members.

BOMA has committed itself to promoting excellence in our industry, such as defining industry best practices for vari-

3

BOMA Calgary News

There are no words to describe Beijing adequately and convey the true sense of its character. ous aspects of the industry. Our health and safety guide is just one example of BOMA fulfilling this goal.

There was surprisingly broad interest amongst the Chinese real estate community. While I had been briefed at the time of BOMA China’s invitation that there would be about 250 industry members present, on the day of the presentation that number had ballooned to 540. (Factoid: There are 75 million people involved in real estate in China.) The presentation was followed by two separate media interviews on the subject. I must say, beyond the language and translation issues, there was very intense interest in the subject matter. I was suitably impressed.

China is seeking business legitimacy by adopting some western standards and gaining recognition. The business sector is highly competitive with each player doing what they can to get a leg-up on the other guy.

Beijing is a bustling city just as you would expect of any major international capital. The population is in the realm of 20 million. One can only imagine what the planning, infrastructure and servicing needs would be. And the city is coming of age. It has many new and interesting building and much of its infrastructure, such as its extensive and well-integrated subway system, is only about 20 years old.

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There are no words to describe Beijing adequately and convey the true sense of its character. Most of modern Beijing began to appear about 20 years ago. Since that time it has had a building boom that is unprecedented by Canadian standards. The subway system transports approximately 12 million people each day. There are five ring roads and 5

BOMA Calgary News

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BOMA Calgary News

4

China World Trade Centre lobby

Beijing does have some striking architecture and buildings are equipped with the latest and state-of-the-art infrastructure. the sixth is presently under construction. Buildings are rising out of the ground with incredible speed. It is not unusual to see a multi-building project with as many as 40 construction cranes above the emerging buildings. In one instance during my tour, I stopped counting at 47 cranes.

This massive new construction is not confined solely to Beijing however. It’s port city of Tainjing, Binhai Economic Development Zone, a mere couple of hours away on the 300kph bullet train, presently has under construction 167 buildings with an area of each building greater than one million square feet. Amazing!

Back in Beijing, the Beijing Capital International Airport (BCIA) is on track to become the world’s busiest by 2014 if not sooner.

An emerging middle class has brought BCIA from 34th place to second place in just 10 years. To satisfy travel growth, one of every five airplanes produced by Boeing will be destined for China. This means China will be competing for nearly 72,000 pilots to satisfy the need for ever-increasing domestic travel.

Beijing does have some striking architecture and buildings are equipped with the latest and state-of-the-art infrastructure.

5

BOMA Calgary News

The most pressing challenge however is that the operating staff is not sufficiently trained to make the buildings work to their greatest efficiencies.

I was impressed with some of China’s initiatives in the realm of green buildings. I spoke with Dr. Xu Tianji, PhD (U.K.) who is a vice chairman of BOMA China and a fellow of the Chartered Institute of Building, and who was very interested in what BOMA has achieved through its BOMA BESt program; BOMA China is discussing a licensing agreement with BOMA Canada. China is in fact making remarkable progress in green programs. For example, the growth in clean energy resources grew by 28.5 per cent year-over-year and China experienced a commensurate reduction in power generation from fossil fuels. Most notably, solar power generation saw a 414.4 per cent increase in just one year.

BOMA Canada and BOMA China are organizing a tour in March of this year. If any BOMA member is contemplating expanding its business into China, this tour would be an excellent opportunity to see it for yourself. The pace and extent of China’s growth has to be seen to be believed.

BOMA Insider

Welcome New BOMA Member Companies Matrix Real Estate, Vyetta Sunderland

Chris Howard, Avison Young Real Estate is sworn in as the 2013 Chair of the Board.

Peregrine General Pest Control, Nicholas Holland Kennington Properties Ltd., Ken Acheson Arlington Street Investments, Frank Lonardelli

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Don Fairgrieve-Park, Chair presents Lisa Cheong-Stevens and Janne Kneller, Bentall Kennedy (Canada) LP with BOMA BESt Level 1 certificate for Deerfoot Junction III and Centre 5735, Level 2 for Hopewell Corporate Centre

BOMA Calgary News

6

BOMA Insider when YOU recycle and reduce…it matters.

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Bentall Kennedy Ranks 1st in Sustainability ( 2 years in a row! )

Bentall Kennedy is ranked #1 in the Diversified Commercial Real Estate category in the Americas by the 2012 Global Real Estate Sustainability Benchmark Research Report. The survey findings represent 450 participants, 36,000 properties, and over $1.3 trillion in assets. But for us it represents a win / win for our clients and the communities in which we live and work: Clients Win

Communities Win

• Attracting the best tenants • Delivering extraordinary tenant services • Achieving higher and more sustainable value for our clients’ assets

• Creating healthier work places • Improving air quality due to lower CO2 emissions • Consuming fewer natural resources in high-efficiency buildings

1 BOMA Calgary News 7 6053_beke_BiC_v1.indd

www.bentallkennedy.com

12-10-29 5:14 PM

BOMA Board of Directors A special welcome and thank you to our 2013 Leadership Team, the BOMA Calgary Board of Directors!

Executive

Chair Chris Howard Avison Young Real Estate

Chair-Elect Ken Dixon Director, Real Estate Management, Oxford Properties Group

Secretary-Treasurer Chris Nasim Senior Director, Portfolio Management, GWL Realty Advisorss

Past Chair President & CSO Don Fairgrieve-Park William G. R. Partridge, CAE, Senior Vice-President BOMA Calgary Operations, Bentall Kennedy (Canada) LP

Directors

Fred Edwards

Dustin Engel

Loy Sullivan

Steve Weston

Bob Brazzell

President Servpro Cleaning (Calgary) Inc.

Environmental Programs Coordinator, Alberta Infrastructure

Vice-President, 20 VIC Management

Assistant General Manager, Brookfield Properties

Senior Director Altus Group

Marj Cone

Cam Gresko

Richard Morden

Corrine Jackman

Lee Thiessen

General Manager H & R Property Management

Vice President, Operations, Cadillac Fairview Corporation

Vice-President, Portfolio Management, Bentall Kennedy (Canada) LP

Director, Hopewell Real Estate Services Inc.

Partner MNP LLP

BOMA Calgary News

8

Beyond Earth Hour

By Lia Robinson, CAE Manager Communications & Member Services BOMA Staff

O

n Saturday March 23, 2013, 8:30 p.m., Earth Hour will be observed across the world in an effort to create “an interconnected global community committed to creating a more sustainable planet.” In 2011, Earth Hour prompted people to accept a challenge to go beyond the hour and commit to do more for the planet.

Building owners and managers are certainly going beyond the Earth Hour challenge, promoting efforts and programs that curb energy use. Tenants in buildings with BOMA BESt (Building Environmental Standard) certification can be secure in the knowledge that they are in a building that is performing to an industry-recognized standard in six key areas, including energy

efficiency. BOMA BESt is Canada’s largest environmental assessment and certification program for existing buildings. This program recognizes excellence in energy and environmental management and performance in commercial real estate.

According to the 2011 BOMA BESt Energy and Environmental Report (BBEER), certified buildings perform 16 per cent better in terms of energy intensity than the national average.

Further, BOMA BESt office buildings emit less, the equivalent of taking 20,886 cars off the road for a year. This is not just green design; this program allows owners and managers to monitor their performance and improve against targets.

In the weeks to come, Earth Hour posters, displays and

Building owners and managers are certainly going beyond the Earth Hour challenge, promoting efforts and programs that curb energy use.

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BOMA Calgary News

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memos will appear in office, retail and industrial buildings across Calgary reminding people to participate in the annual event.

Tenants have a role to play in energy use as well, and can contribute to a better performing building through correct use of blinds, turning off lights and computers in unoccupied spaces, and after normal office hours. For those in a BOMA BESt building, the property manager can supply ideas to reduce energy use.

During Earth Hour, most of the downtown skyline will be dark, as it occurs during non-peak hours, and typically offices are closed for the weekend. Despite this, some lights will still remain on through the hour. The reasons for this are specific to companies; however, there are a few likely causes for after-hours lighting.

According to Calgary Economic Development, Calgary ranks first in head office concentration among the six most populated metropolitan

areas, with one in seven of Canada’s major corporate head offices based in this city. Many of those companies have global reach and 24-7 operations and may need to have people working in off-peak hours.

Although some tenants and building owners have moved to a daytime cleaning model, after-hours cleaning still takes place in many buildings.

With deadlines and large spaces to maintain, many cleaning companies may not be able to cease their cleaning tasks for this event. As well, necessary or critical building or office maintenance may be scheduled during this time.

Earth Hour is a great initiative to increase awareness of the individual responsibility to use energy wisely; we can all contribute at our workplaces and homes. Rest assured the people who manage and maintain our buildings are taking on the challenge to lower energy consumption daily, as a regular course of good business.

Earth Hour is a great initiative to increase awareness of the individual responsibility to use energy wisely; we can all contribute at our workplaces and homes.

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10

Golden Developments

By David Parker

R

eal estate development in this city is firing on all cylinders.

Much ink has been soaked up in articles about the increase in the number of multi-family residential properties being built, particularly in the downtown and beltline districts; downtown and suburban offices are keeping contractors busy; several new industrial bay projects are on the market; and new developments in the retail/restaurant sector are hard to keep up with.

But little has been said about the construction of seniors’ homes that is keeping architects busy with an evolution of design to accommodate a real need; and lots of work for general contractors, subs and people to staff the new facilities.

Abugov Kaspar Architecture recently completed work for a four-storey, 127-unit complex in Walden for AgeCare Investments, a Calgary company that develops and manages innovative supportive housing and long-term care communities in Alberta.

11

BOMA Calgary News

It was also responsible for the design of Tudor Manor in Okotoks, providing that community with another 152 supportive living beds. It is another project of the Brenda Strafford Foundation that was established in 1975 and today also owns and operates Bow View, Wentworth and Clifton Manors in Calgary, employing around 860 full-time, part-time and casual staff.

Abugov Kaspar is the architect for the renovations underway to expand common and recreational space at Bow View Manor plus an adjacent five-storey wing that will provide 44 new assisted-living beds.

And for Silvera for Seniors, the firm is working on a design to add 120 affordable suites to Silvera’s Gilchrist Gardens in the northeast that will demolish 20 decommissioned cottages to make way for the new structure.

Silvera provides meaningful communal living in 25 buildings in Calgary, housing some 1500 affordable units.

It plans to tear down cottages on its Elbow Valley Lodges property alongside its 135-unit Westview facility to provide a nine-acre site for more development and I look forward to seeing how NORR Architects will design Silvera’s 13-acre Jacques site on Bow Trail.

Silvera CEO Arlene Adamson says she wants to create an inter-generational village where her residents will become a meaningful part of the surrounding community.

There is obviously a growing demand for more housing for seniors, and besides the sheer numbers the needs are changing.

Gail Hinchliffe, president United Active Living, says although many may require advanced levels of care others are quite healthy, but want the services and programs her facilities offer.

And there is also a desire to live in the communities they know and don’t want to move from again, which is why her planned Springbank 9.5-acre development will include bungalow villas, as well as providing assisted-living units.

Hinchliffe has also hired Jenkins Architecture to design a seniors’ home on land United has acquired by St. Mary’s University College.

All of these projects, and many others being built or planned, are essential if we are to provide more housing for the growing number of seniors, and ones with diversified options.

And those include taking care of our seniors from differing cultures.

I have a tremendous amount of respect for the Chinese Christian Wing Kei Nursing Home Association that is building its second residence in the Greenview district. An early thought was to provide units for other ethnic groups, but the demand is so high that it will be easily filled by our Chinese elderly friends who will enjoy good food from the big woks.

S2 Architecture:

Where Diversity Thrives and Design Endures

Defining the Essence of Community for 20 Years

By Mary Savage

“Some people dream of great accomplishments, while others stay awake and do them.”

- Anonymous

If

the most successful people in the world were brought together and asked to define success, you would likely hear a different response from each individual in the room, but there would also be an undercurrent of shared philosophies.

And when you look at companies that are successful, it is measured by both the small and large victories – successful companies don’t limit themselves, they are not narrowly defined, nor do they rest on their laurels.

They are passionate and persistent. They listen to their colleagues and clients – fostering an open exchange. They are experts in their chosen field, but they also aspire to be lifelong learners.

They collaborate, create and accomplish great things, and when the task at hand is complete, they move on to the next one.

The leaders who embrace this philosophy are a rare breed: they don’t look for accolades. They simply and quietly go about their work, and do it time after time. And in the heart of downtown Calgary, the leaders of S2 Architecture exemplify this mentality.

On a spring afternoon, the six partners of S2 gathered to talk candidly about their business, how they define success, community and their vision to create a legacy firm. They didn’t speak of award-winning buildings that freckle the skyline, nor did their egos collide around the room.

Much like the way they conduct business, it was an open forum where thoughts flowed freely.

At the heart of S2, everything starts by listening: to their clients, to the community and to the younger generations found within the firm.

S2 Architecture | 20 Years | 1

General Contracting Project Management Butler Building Systems Design/Build Contracting

General Contracting

The Evolution of Partnership

Butler Building Systems

“I started with stars in my eyes … and starting out, the less you know the better. If you realized all the pitfalls, you probably wouldn’t do it.”

Design/Build Contracting

- David Symons, Architect, Principal

Project Management

Providing quality, innovative and cost effective solutions to our customers since 1978.

Congratulations to S2 Architecture on your 20th Anniversary in Calgary.

Proud to be working with you.

elan

The roots of S2 date back to 1993 when Robert Spaetgens went to work for himself. After one year, he moved the office from his basement to Kensington where David Symons and another architect joined the business as partners.

For Spaetgens and Symons, it was the third time they would work together.

The first time was in university: they were roommates while studying architecture, during their master’s year, at the University of Manitoba.

The second time found them working together at another of Calgary’s successful architectural firms where they spent almost a decade. Spaetgens and Symons were ambitious and progressive thinkers, and ready to take their career to the next level.

As fate would play out, Spaetgens and Symons came together for the third time to lead the firm known today as S2.

For almost another decade, Spaetgens and Symons grew the business.

They hired more architects, technologists and design specialists, landing larger and more prominent projects.

In 1997, the firm hired James McLaughlin as an intern architect.

McLaughlin had been recruited some time after graduating from McGill University, and after an intricate interview process with 12 different firms, he chose S2 because of the firm’s mentality.

Spaetgens and Symons subscribed to an open mindset and that proved to be the tipping point for McLaughlin.

Shortly thereafter, Peter Bradshaw joined S2 although he is not an architect.

Elan Construction Limited #100, 3639-27th St. N.E. Elan Construction Calgary, AB T1YLimited 5E4 #100,(403) 3639-27th St. N.E. Tel: 291-1165 Fax: (403) 291-5396 Calgary, AB T1Y 5E4 elanconstruction.com Tel: (403) 291-1165 Fax: (403) 291-5396

This move reflected the partners’ insight and ability to expand the firm beyond the traditional perimeters, and they welcomed Bradshaw’s hands-on expertise as a valuable addition. Bradshaw built his career in the construction industry and was drawn to the challenges and opportunities that S2 presented – working as a construction consultant – but he was equally attracted to the firm’s philosophy, thereby making it an easy choice.

And a few months later, Craig Bowd joined S2 and like Bradshaw, Bowd is not an architect either. Bowd is a senior technologist and brought decades of expertise in the field of production and technology. During the late 1990s and as the story of hiring Bowd unfolded, Spaetgens, Symons and Bowd had many lengthy conversations. Ultimately, Bowd made the decision to join S2 because of the firm’s leadership style and their approach to business.

As the old expression says, “Great minds think alike…” and as Spaetgens and Symons grew the firm, they hired people who mirrored a similar mentality. They hired people who wanted a ground-floor opportunity: to help build the internal S2 infrastructure, shape the leadership and provide opportunities to the younger generation that was not readily available.

A pinnacle year for S2 was 2006. They moved their office from Kensington to the ninth floor of TransAlta Campus, Tower One, in the beltline district. And today, S2 continues to call the ninth floor home.

The leadership team also expanded

“ ... even at the highest levels of athletic performance, recreational facilities must be inclusive, creating a meaningful experience for both the participant and spectator enriching the sense of community.”

Foothills Athletic Park Master Plan, Calgary, Alberta

S2 Architecture | 20 Years | 2

that same year with James McLaughlin, Peter Bradshaw and Craig Bowd becoming partners. The move to make both Bradshaw and Bowd partners stressed the importance of disciplines found within architecture, and successful leaders understand the importance of hiring outside your immediate sphere of influence – sometimes it’s necessary in order to find the best people.

Rounding out the year, Linus Murphy joined the firm in 2006, and the following year he became the sixth partner to join S2. When Murphy moved to S2, he brought almost 20 years of experience and was instrumental in developing S2’s extraordinary reputation in the emergency services sector.

“ The vision was to create both external and interior spaces for the building that supported the intellectual and social community.”

Thomas Jefferson School of Law, San Diego, California

As the six partners sat around the table and continued their candid discussion, they recalled the early days of forging a career elsewhere where they did not always have the luxury of mentorship, open communication, progressive thinking and working in a respectful environment. Looking back, this type of environment was rare. And it still is today.

Collectively, the partners have created a firm that fosters growth, guidance and longevity because they were without it. They are also building a firm that is multigenerational – a legacy firm – that will survive long after the partners have retired, and in doing so they have raised the bar – on everything.

“ ... many efficiencies were realized including, a smaller ecological footprint and decreased operating costs. The new facility also meets the growing demand for emergency services in the city’s northeast with the capacity to accommodate future growth.”

Saddle Ridge Multi-Services Centre, Calgary, Alberta

S2 Architecture | 20 Years | 3

Commencing the Conversation Congratulations to

s2 arChiteCture on their 20th anniversary & outstanding aChievements

“The single most important skill we have is not drawing; it’s listening critically. The drawings are how we communicate everything we’ve heard.”

- James McLaughlin, Architect, Principal

Much like defining success, most people talk about ‘community’ in a context that is relevant to their lives – unless you work in an industry that contributes to shaping a community.

From the sidewalk, architecture is a profession where all roads lead to creation: an ultra-sleek highrise with glass walls that touches the clouds to a refurbished historical landmark that has brought new life to a withering community.

Structures span the centuries and as towns become cities, each new building provides a glimpse into generations past. The streetscapes and communities are akin to an alluvial fan in the world of prominent designers and architects – or so it would seem.

For S2, the design process begins by listening. Their goal is to extract an inevitable array of agendas, opinions and interests voiced by the client, and get that information onto the table. As ideas surface, S2 helps convert their goals into principles with an objective to create design that is contextual and meaningful.

“We ask the right questions at the right time which enables us to guide the client through a very complex process and respond to their needs for accommodation.”

Robert Spaetgens, Architect, Principal

coveproperties.ca S2 Architecture | 20 Years | 4

“Our relationships with industry professionals help us understand the trends, the needs and how we support that vision to develop strong communities.”

Vicky Couture, Project Lead, Designer

It is insightful and responsive to both the physical and cultural context of the surrounding environment. It is a reflection of what the client needs, followed by site requirements and environmental considerations. S2 drives the client to achieve design excellence, but more importantly, they know how to navigate the process.

Emergency services, schools, highrise residential towers, recreational centres, health clinics, mixed-use developments – all of these structures help communities evolve. It provides a glimpse into S2’s working arena, but it also illustrates their understanding of a much broader picture.

As professionals who spend a lifetime helping define communities, the S2 design teams look at more than just the façade and streetscape. Community is also about the people. It is a ‘state of being.’

Community extends beyond a neighbourhood, building or a group of people: it’s a sense of place and what feels comfortable. As an example, S2 has designed community service facilities, recreational, educational and

emergency services throughout different quadrants of the city and each building has a different vibe depending on the location.

It’s also a sense of place and the people who use that place, how they interact and the relationships that are found within that place. For S2, people are an integral part of the community. They pride themselves on the ability to design and build what’s suitable and appropriate for a particular context and a particular environment.

Their philosophy is to deliver outstanding solutions that leave a lasting, positive mark on users and the community. They strive for design excellence and build structures that ‘work’ – in a meaningful and positive way.

“We understand what the needs are – even before the client understands that they have a need. We design to solve that problem.”

James McLaughlin, Architect, Principal

“ … a striking yet elegant design that fits perfectly in the hip new beltline community of downtown Calgary. ” Nuera, Calgary, Alberta

S2 Architecture | 20 Years | 5

The Continuum of Design “As people transition into a building, they have a continuous experience throughout the space: the outside has to complement the inside.”

- Natasha Jalbert, Interior Design Lead

When you step inside a structure, two worlds meet: the interior and exterior work together seamlessly. They reflect a true meeting of the minds – it is the continuum of design.

Historically, the firm has offered interior design services, but the partners wanted to expand their vision to provide a fully-integrated and multidisciplinary approach. Interior design dovetails into architecture by providing ‘functional programming.’ The objective is to create an interior space that’s both comfort-

able and functional while adhering to the client’s identity and brand. From repurposing or retrofitting an existing space to working within a new building shell, interior design echoes the same process as architecture.

But the key to providing this multidisciplinary approach meant hiring the right individual. In keeping with S2’s leadership mantra, they had to find someone who not only brought substantial experience to the firm, but who also knew how to build and lead the design team. After a three-year search, the partners’ vision started to take shape when they hired Natasha Jalbert, interior design lead.

Much like the other professionals found within the S2 world, Jalbert set

out to build the interior design team with an integrated, collaborative and empowering approach. It’s a methodology that allows the design team to see past a client’s vision by understanding what they need. From the reception area and workspaces to new furniture and fixtures, interior design enables a client to create a more productive environment that reflects not only their brand, but the corporate cultural and corporate identity as well.

For S2, all roads continue to lead back to the craft of listening and in doing so, they complete the life cycle of design – taking S2’s interior design team through the front door where the continuum of design comes to fruition.

“The exterior design of the building focuses on a new image for Canadian Pacific Railway — a modern image which looks to efficiency, streamlined processes and a great future for the railway. We are proud to be a part of the legacy of this 120 year old Canadian company.”

Canadian Pacific New Headquarters, Calgary, Alberta

“The built environment can help maximize the control seniors have on their surroundings and reduce their sense of displacement and anxiety.”

Rocky View Lodge, Supportive Living, Crossfield, Alberta

Congratulations S2 Twenty amazing years with many more to come.

We are proud to have been a part of it.

Mechanical Engineering • Sustainable Design • Commercial • Institutional • Industrial

S2 Architecture | 20 Years | 6

The Internal Landscape “We may not have all the answers, but we know where to go to get them and that’s an important part of what we do.”

- Peter Bradshaw, Contract Administration and Construction, Principal

Inside the S2 studio, it’s business as usual on the ninth floor: design teams and clients gather – every meeting room is full.

From a highrise tower to a fire hall, the small groups collaborate behind floor-to-ceiling glass walls, while an architect, an interior designer and project manager emerge from down the hall. The energy exudes an air of engagement, productivity and transparency.

It is an environment where tradition meets innovation and evolution is often pragmatic. It is a world where opposites thrive and input from everyone is encouraged and expected – from intern architects and junior technologists to partners. No question is deemed insignificant and no inquiry is sidestepped.

It is, simply put, what you find every day when you enter the milieu of S2.

Beyond the main foyer and boardrooms, the hallway opens to a large, open-concept space where several more groups work together: reading plans on a drafting table or gathered around a large computer screen. The office is void of doors, unless you’re sitting in a boardroom. It’s a cohesive environment where different disciplines work side by side: interior designers, architects and technologists.

“The people at S2 are genuine … and that’s what keeps me here.”

Jane Kratochvil, Office Manager

“Overall, there is an immense amount of respect at S2: from co-worker to co-worker, from partner to co-worker and partner to partner, and that is not something you see every day. It is a pretty unique environment.”

“The best decision I made was coming to S2.”

Craig Bowd, Production and Technical Services, Principal

Genevieve Giguere, Senior Team Lead, Intern Architect

THE LEDCOR GROUP OF COMPANIES From a world-class mining operation to high-tech infrastructure, or a stunning work of architecture.

We’re an industry-leading, innovative construction company both inside and out.

Congratulations to S2 Architecture on 20 Years in the Calgary Market.

WWW.LEDCOR.COM

S2 Architecture | 20 Years | 7

“Ambitious, pragmatic, vibrant.”

Jason Dolha, Sr. Architectural Technologist

“Motivated, adaptable, intelligent.”

Michael Evans, Senior Technologist

“Fun and energetic.”

Shannon Thomson, Senior Marketing and Graphics Coordinator

“Adaptive, supportive, successful.”

Megan Chwiecko, Interior Designer

is…

Our people are talented, inspired individuals who bring energy and passion to our culture along with a collaborative spirit to our work. S2 aspires to cultivating a fun and creative work environment that encourages creativity, innovation and teamwork.

As they fine-tune the ‘works in progress,’ there is one thing you will never find at S2: a signature style. No two buildings – inside or out – look the same and their self-effacing approach is truly unique. In an industry that’s notorious for prima donnas, you won’t find a single S2 employee bragging about anything as being a signature architectural style as specific to S2.

What you will find is a deep-rooted sense of teamwork and responsiveness. Much like the philosophy expressed among the partners, the same mentality is ever-present among the project teams. Their internal community fosters respect and growth, and everyone has a voice. There is an undeniable ambience that is positive and genuine.

For the people who call S2 home, their voices are poignant as they describe their work world and this mentality is threaded throughout every relationship, project and meeting.

“Meaningful, creative, communicative.”

Jason Curtis, Project Leader

Congratulations on 20 years of designing great homes for today’s lifestyle

Upscale town homes & condos in Silverado

Trendy condos in the heart of Kensington

S2 Architecture | 20 Years | 8

“Intelligent, social and enduring.”

The team at S2 Architecture in Calgary. Photo by Light on Paper Photography.

Candice Scott, Jr. Architectural Designer

“Steady, spirited, committed.”

Donald O’Dwyer, Intern Architect

“Young, open and aware.”

Christine Perry, Senior Interior Designer

“Relaxed, professional, respectful.”

William Woodcock, Architectural Technologist, Interior Design

“Motivated, friendly, productive.”

Cynthia Toyota, Architect

Congratulations to S2 on great success, continual growth and forward thinking leadership.

We are proud to be long time business partners with S2 and wish for continued success in the future.

D.B.K. ENGINEERING LTD. Consulting Engineers

Suite 200, 1721 10 Avenue SW • Phone 403.290.0882 • general@dbkeng.ca • Fax 403.265.3354 • dbkeng.ca S2 Architecture | 20 Years | 9

Everyone is included in the decisionmaking process and that’s rare.

It’s about allowing everyone to be involved and feeling like they have a part of crafting the future of S2.”

Brian Corkum, Architect

Thirty years ago

, an architect was viewed as a master builder and over time, this role has been redefined and somewhat diminished. One of S2’s mandates is to broaden this role by restoring the original principles of a ‘master builder.’ Architecture involves ‘building science’ as well as artful composition and working with code and construction specialists – it is all encompassing.

The majority of S2 architects and designers are involved with numerous organizations and act not only as advocates to broaden the role of a master builder, but also to help shape urban, business and environmental development. Their voices contribute to land use redesignations as well as design principles, guidelines and polices.

Many of the partners and design teams actively support our communities by fostering goodwill within and for the design industry. Brian Corkum, Architect, sits on the Calgary Subdivision and Development Appeal Board. James McLaughlin, Architect, Principal, was recently appointed to the Urban Design Review Panel (UDRP) and Robert Labonte, Architect, was appointed to the Edmonton Design Committee (EDC) in December 2012.

S2 is proud to be a founding firm member of the Consulting Architects of Alberta (CAA). The organization exists today because of firms like S2 who, along with 11 others, helped to spearhead the association. Currently, Linus Murphy, Architect, Principal, sits on the CAA board of directors. The CAA provides a business voice for Alberta architects where they are represented and supported in their practice to build a positive business environment.

On the Mount Royal University campus, you will find Natasha Jalbert, S2’s Interior Design Lead teaching at the faculty of interior design.

Vicky Couture, Project Lead, is one of only three designers in the city who is also a licensed member of the Calgary Real Estate Board (CREB). Her involvement with CREB keeps her apprised of commercial real estate trends and provides insight into inner-city developments.

Indeed, S2 is a strong advocate in shaping urban renewal, developing communities and restoring the guiding principles of a master builder.

Photo by Light on Paper Photography.

Project teams work with purpose and passion – communication is open and unassuming. They are progressive and innovative thinkers, yet thoughtful and consistent. They are dedicated and focused. It is an exceptional and unique environment.

To capture the essence of a well-designed community in a singular word is nearly impossible and the same rings true of S2’s internal culture. Their approach to business reflects an array of core beliefs that – collectively – are much larger than ‘great design.’

And when S2 holds their AGM, it’s akin to an open forum – there are no hidden agendas. The details of the business are an open book – from finances to future plans – no question goes unanswered. And when the partners are asked about the future, they talk about building a legacy firm and all that it entails.

“Your co-workers have your back … as an intern architect, I can walk up to anyone with a question and they always take the time to answer it. We have a group of experts at S2 and they are willing to share their knowledge, and that’s not something you always find.”

Erin Hampson, Intern Architect

S2 Architecture | 20 Years | 10

Congratulations S2 Architecture on your 20th Anniversary!

We wish you many more years of success!

Sterling Engineering Inc. 19A, 6025 - 12th Street SE, Calgary, AB T2H 2K1 Tel: 403.252.2333 • Fax: 403.253.3324

Congratulations to S2 Architecture

on 20 years in Calgary!

ToTal Building & lEEd Commissioning RETRo & RE-Commissioning FaCiliTiEs managEmEnT suppoRT Tel: 403.984.9448 • info@cfms-alberta.com www.cfms-alberta.com

Member of the Churchill Group www.sodcl.com

Congratulations S2 Architecture on your 20th Anniversary!

We look forward to working with you for many more years to come!

People.Building.Progress Edge School, Calgary, AB

Congratulations,

20

S2 Architecture on

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www.benchmarkprojects.com S2 Architecture | 20 Years | 11

Living the Legacy: The Edmonton Studio “As architects, we need to instil a certain amount of confidence with the promise that we will get you to where you need to go.”

Linus Murphy, Architect, Principal

Two years ago, the S2 partners drafted a list of long-term goals – among them was a desire to create a firm that lived on for many generations.

Through research, the partners came to learn that creating a legacy firm was defined by certain characteristics: it is a sustainable entity that thrives for generations; it’s built on strong relationships where everyone is equal; it means being in different markets and continuing to grow; and the partners realized they had already engaged many of these traits.

In 20 years, S2 has completed several projects in Edmonton and over time, their presence has gradually been infused in the northern region. They have forged relations with government, developers and clients – encouraging a more permanent presence within the city of Edmonton.

Last year, S2 decided to open an office in the Edmonton market and it was a natural progression in the evolution of the firm. But in order to achieve their goal and in keeping with the leadership philosophy, they had to find the right people.

By August 2012, S2 had secured office space on the 20th floor of the Scotia Place tower in the heart of Edmonton’s downtown on Jasper Avenue. With Murphy leading the way, they hired Robert Labonte, Architect. Labonte, schooled at UofA, Dalhousie, McGill, and Harvard, was originally from Edmonton and after spending two decades in the Toronto market, he returned to his roots.

Next they hired Brent Conner, a senior technologist with a diverse portfolio of work in Western Canada spanning over 20 years, and Erin Hampson, an intern architect, fresh out of the master’s program at Ryerson University. The Edmonton office then welcomed Charles Gushaty, a senior contract administrator and building science specialist with over 29 years of experience working in the Edmonton market, and most recently, Jane Lam, a senior technologist with 25 years of experience throughout Alberta, Eastern Canada and Asia.

In December 2012, Labonte was appointed – by unanimous vote – to the Edmonton Design Committee

The team at S2 Architecture in Edmonton. Photo by EPIC Photography.

“We have built a core group of senior people … it’s hard to find good talent, but we are off to a great start.”

Robert Labonte, Architect

(EDC). The EDC is an organization that is integral to formulating urban design principles, guidelines and polices, and as Edmonton continues to rejuvenate and transform the cityscape, S2 is poised to be a part of the process.

Currently, S2 is involved with several projects in Edmonton and the surrounding area. Several EMS stations, a mixed-use development, a new fire station, civic offices, public works and operations buildings and a 911 call centre are all underway.

For any design, there is a great moment at its inception when it feels S2 Architecture | 20 Years | 12

“There are many great opportunities in Edmonton. The political establishment is focused on moving things forward: they are encouraging development, which encourages investment.

Over the next decade, there is going to be an amazing amount of redevelopment and S2 is going to be a part of it … and that’s very exciting.”

Robert Labonte, Architect

Phone: 403-244-4944 • Fax: 403-229-2110 trl@trleng.ca • www.trleng.ca

Congratulations to S2 Architecture on their 20th Anniversary!

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S2 Architecture | 20 Years | 13

â&#x20AC;&#x153;S2 creates opportunities for participation, engagement and ownership in the daily activities of architectural design.â&#x20AC;?

Jane Lam, Senior Technologist

like a clean slate. It is a world of possibilities that contribute to ideas taking shape. It is a world of optimism, rejuvenation and significance. But it is also the evolution of many conversations, exploring options and listening to the clients â&#x20AC;&#x201C; and this is something S2 does extremely well. As Edmonton undergoes a major transformation, S2 is ready to engage the conversation.

Inside S2â&#x20AC;&#x2122;s current Edmonton location, the team is preparing to move to their permanent home located at the north end of 124 Avenue. The team wanted to be situated on the edge of â&#x20AC;&#x2DC;revitalizationâ&#x20AC;&#x2122; and after a bit of searching, they found an ideal location and space.

Renovations are currently underway for their new home â&#x20AC;&#x201C; 4,400 square feet on the second floor of an owner/operator building. And in keeping with the Calgary studio, they are creating an open and collaborative environment that reflects the philosophy and expression of the firm.

Photo by EPIC Photography.

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Congratulations on 20 years in Calgary!

We wish you many more years of success.

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The Guiding Principles “Now, more than ever, it is essential that design and planning are geared towards future needs and not simply providing sufficient solutions for current ones.”

- Robert Spaetgens, Architect, Principal

As the discussion with the six partners drew to a close, they looked at one another with an undercurrent of excitement in their eyes. It’s the kind of energy that flows freely when you know you’re moving as a united front. They are steadfast, but also keenly aware that growth brings a certain element of unpredictability. Although the conversation brought varying opinions to the table, unequivocally, they all share the same vision: to create a legacy firm.

Easy to say, but tough to accomplish and part of what drives this leadership team forward is found looking in the rearview mirror. When the partners embarked on their careers, the notion of succession planning was not part of the landscape.

As wide-eyed junior architects, their voices were rarely heard and it took years of ‘proving yourself’ before a hint of respect seemed attainable. But this particular group thought differently and two decades later, they have built a different firm.

In 20 years, adapting to ‘change’ is part of business – it is necessary for growth. But as the partners observed, a handful of things have remained the same: their internal culture, respect for people and their ability to contribute. For S2, these traits will never change and the consistency of their internal

“The ability for people to follow their dreams generates success and we are following a dream to create a legacy firm. It’s a firm that grows beyond us to the betterment of everybody that’s with us.”

Peter Bradshaw, Contract Administration and Construction, Principal

community propels them forward: through the change and through the growth.

When the partners were asked about defining success, they did not lean back, throw their arms to the sky and speak of ‘great design.’ In fact, they questioned if they should ever truly define ‘success.’ For S2, success it is not measured by awards.

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“Our drive for success hasn’t changed in 20 years and I’m not quite sure we’ll know when we’ve reached it. Maybe we’ll never really know and maybe that’s what drives us forward … but we strive to keep our baseline of corporate culture and that is founded in respect for people’s opinions.”

David Symons, Architect, Principal

It is measured by how they do their jobs – every day. And when they have finished a project, they simply and quietly move onto the next one.

As S2 acknowledges their 20th anniversary, they pause from the workday to articulate a moment of gratitude. ‘Thank you’ to the business communities and their industry partners that have been instrumental in helping S2 achieve this milestone.

The last question of the afternoon brought the conversation back to the future, and true to form, the six partners came together as one voice. They spoke of design excellence that pushes forward with open minds and watchful eyes. They spoke of inspiration and innovation that continually adapts in an everchanging environment, and they spoke of a singular goal: to create architecture that is practical, sustainable and thoughtful – simply put, to create beautiful buildings that work.

“It’s not about defining success; it’s our job. It’s our baseline performance.

Our minimum expectations are to keep our clients happy … and once we achieve that goal, then we start to measure real success.”

Craig Bowd, Production and Technical Services, Principal

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Changing the Face of Commercial Real Estate: OPUS celebrates 30 Years

T

he year 2013 marks the 30th anniversary of OPUS: a company that has developed and built over 25 million square feet of attractive and functional commercial real estate across Western Canada.

OPUS has earned a reputation for excellence, developing a number of award-winning buildings in their history. The company was originally founded by a group of shareholders whom all brought a wealth of commercial real estate experience to the business. Thirty years later and under new ownership and direction, OPUS remains a privately-held company.

OPUS | 30th Anniversary | 1

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Up until recently, the majority of OPUS’s work was undertaken purely as a developer and builder for its own projects, but during 2009 when the recession brought many businesses to its knees, OPUS believed it was a prime time for change. Leading this new phase is Hannes Kovac, president and CEO. Instead of just developing their own property, Hannes saw an opportunity to provide a service to ‘third-party’ clients – where they offer a fully-integrated process for commercial construction and development projects from inception to completion for clients.

Most developers work on their own projects: they buy, develop, build and sell properties utilizing their expertise.

OPUS offers this service to their clients, which is really unique. The expertise it takes to complete these complex real estate projects is usually kept within the developer’s walls, however there are many who wish to invest in real estate and need the help of a developer – from purchasing a piece of land to completion of a building for either investment or to house their own company.

In an ever-changing industry and now more than ever, OPUS has redefined the way they do business. They have

created new opportunities by broadening their scope of services and their clients benefit from this collective knowledge and in-house expertise.

Since 2009, OPUS has doubled their business due to their ability to diversify and make significant gains in market share. “As a real estate provider, developer and builder, it forced us to be competitive, in every segment of the market which ultimately has made us a better company,” Hannes says.

Change: A Necessity of Growth

Successful entrepreneurs see opportunities that are often lost through the eyes of others and when the economy slows to a crawl, companies downsize to ‘weather the storm.’ But not all business owners share this philosophy and such is the case with OPUS – they opted to build for the future.

As Hannes has observed, change creates opportunity.

“Some people embrace change and get excited, but most people resist it. We will find something positive in every

Best wishes for many more successful years!

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OPUS | 30th Anniversary | 2

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An Extraordinary Leader

Hannes Kovac forayed into the commercial real estate sector in 1997 when he joined OPUS as an employee. In 2006, Hannes was appointed to the position of president and CEO, and in 2009, he became the sole owner of OPUS Corporation.

Since that time, he has been instrumental in expanding OPUS’s market share and vision. His passion for growth and success is bound only by his imagination and one need only spend a few minutes with the OPUS team to understand how his passion motivates almost everyone he meets.

“As a leader, Hannes has vision, creativity and drive,” says Debbie Harlos, controller. “If something doesn’t work the first time, our team will try again.

We never give up and Hannes has a very positive attitude. His leadership drives the organization.”

Hannes Kovac Photo courtesy of OPUS

negative situation and gradually people will start to buy in,” he adds.

In addition to offering third-party services, OPUS also made changes internally by improving operating procedures and enhancing technology to better integrate all the divisions of the company.

“There are a lot of things that need to happen in order to take a project from the initial meeting through to the grand opening. When more interdisciplinary information is exchanged more efficiently, the project becomes more

integrated and ultimately you can control the outcome more effectively,” asserts Brian Harford, vice president, construction.

Brian has a 17-year history with OPUS and has been involved either directly or indirectly with building and developing much of the 25 million square feet OPUS has completed in their 30-year history. He has also seen the company evolve through ownership changes and witnessed OPUS survive Calgary’s boom-bust economic climate.

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The team at OPUS.

Photo by Light on Paper Photography.

“We have a different dynamic in the office today. We are more versatile and we have expanded our services to undertake different projects now,” adds Brian. “The atmosphere is more vibrant and aggressive – we have a younger, more energetic and dynamic team today.”

As Brian indicates, OPUS now offers services and solutions that draw upon the expertise of the entire team.

“With our collective knowledge and experience, we know when potential problems may arise – from development, construction and to leasing – and often we’re able to anticipate solutions before the client has questions,” he says. “We have an honest and transparent approach to business. We provide quality and value, we do it well and we do it over and over again.”

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OPUS | 30th Anniversary | 4

21/12/2012 10:29:37 AM

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Unequivocally, OPUS is solutions oriented and one of the questions most frequently asked by the OPUS team is ‘why?’ “We tend to ask our clients ‘why’ a lot when we are working through the details with them,” comments Brian.

During the early stages of any project, the OPUS team helps the client to better understand their short- and longterm objectives – by asking questions. “Internally, we’ve been using this process for so long that it’s almost second nature to us. Now that we have expanded our scope of services, the client soon realizes the added benefits of our expertise,” adds Brian.

“We are not just a construction company who reads architectural plans and builds according to the plans,” says Angela Hill, manager of leasing and marketing. “We are able to offer our clients the best value when we get involved right at the start of a project. We have been building and leasing our own buildings for 30 years so we know how to take a complex project from start to finish – cost effectively and efficiently – while also making sure the property is marketable.”

An Integrated Service

The leasing and marketing division is another layer of the expertise and service that OPUS extends to their clients and makes for a powerful partnership when combined with the construction and development components.

Through the entire process, the leasing and marketing team advises on design, marketability and positioning of the project. Their goal is to ensure the building is leased prior to construction completion or shortly thereafter.

This is often achieved through strong relationships with the brokerage and tenant communities.

“We offer our fully-integrated services to tenants and their brokers from initial discussions to the day they move in. Leasing new developments requires more transparency on the part of the developer. We’ve found that consistent communication of timelines and managing expectations simplifies the negotiation. If you can’t provide this clarity, you’ll end up with a very stressful situation,” says Jay Balkwill, vice president, leasing.

“Not only is our process transparent with brokers and tenants, it’s very transparent with our development clients – people want to know what’s going on with their money. We work with a client with the same ambition we run our business,” he remarks.

“By housing all the development functions within OPUS: design, construction, development, financing and leasing – we have everything at our fingertips,” notes Jay. “Typically, you can get an answer to any development or construction question, simply by walking down the hall. This ability to quickly get a very accurate sense of the whole picture is what sets OPUS apart from its competitors: we are an integrated company. By opening our doors to our clients we make it very easy for them to design, build, lease and even sell a building; we’ll look after the entire process for them.”

Likewise, finance is another layer of expertise found within OPUS where Debbie Harlos, controller, and Alex Kovac, treasurer, manage the division. Debbie has been with OPUS for over a decade and Alex joined the company in 2011. Alex came from the banking industry and brings years of experience to the finance

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Congratulations, OPUS, on your 30th Anniversary!

OPUS | 30th Anniversary | 5

®

division. The financing team is acutely aware of the importance of structuring finances and investments and can guide their clients through this aspect of development as well.

“We love to solve problems and we offer services with more depth,” says Alex. “It’s a combination of our collective knowledge. The entire OPUS team works efficiently and effectively to meet our clients’ needs and objectives.”

Discerning the Marketplace

When Hannes brokered his first deal, it was not an inside tip. Nothing was handed to him nor discreetly passed under the table. He had been with the company for a few years when he presented an idea to the then owners and partners. Although they did not share his vision, they agreed to let him pursue his vision, but on his own time and using his own capital.

Hannes bought the land and re-zoned it, but his vision was never built because he ended up selling

the land – for more than twice what he had bought it for in a short period of time. This transaction and the series of transactions that followed solidified his gut instinct: he knew what to look for when it came to commercial real estate.

Young and vibrant, Calgary’s business community has a reputation for being entrepreneurial and maverick-like – just like Hannes – and the statistics suggest that Calgary has entered another period of growth.

But for businesses like OPUS that have survived three decades, they understand Calgary’s economy is cyclical and real estate is one of the first sectors to feel an economic shift.

As Hannes has observed, the most successful companies understand the importance of diversity – allowing them to grow and flourish for decades.

“Rather than being known as just a developer that builds its own projects, you need a variety of products and services in the marketplace. In Calgary, you have to be diversified in order to build a resilient company.

Diversity means being able to survive the next downturn and emerge as a stronger entity,” he adds.

®

Thanks for allowing us to be a part of your continued success.

It is our pleasure to do business with Hannes and the OPUS team.

ppasutto@innocept.ca

OPUS | 30th Anniversary | 6

®

Congratulations to OPUS Corporation

for celebrating 30 years of excellence as a full service commercial real estate developer in Canada.

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to OPUS on their 30th Anniversary!

Best wishes for continued success.

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OPUS | 30th Anniversary | 7

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OPUS has re-emerged as a solid corporation because they have built a reputation based on knowledge, quality and value. They have built strong relationships because they watch market activity and advise their clients accordingly – and it’s all part of the OPUS advantage.

“If you want to start a business or work with likeminded people who are true entrepreneurs, you will

Opus, Congratulations on

30 successful Years

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We are

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find them in Calgary,” notes Hannes. “People respect you for what you have achieved in this city and that mentality is more prevalent in Calgary than any other city in the world.”

Leading the Team

Looking forward, the OPUS team is optimistic the best is yet to come and since Hannes became the sole owner of OPUS they have reached their goals very quickly. The OPUS team continues to seek out new avenues to improve and they continue to demonstrate an unwavering commitment to their clients by delivering the highest standards of excellence.

The year 2013 will be exciting for OPUS as they break ground on Britannia Crossing, a new OPUS project in the community of Britannia. With sleek and leading-edge design, Britannia Crossing will bring new services and renewed growth to the community of Britannia – providing a snapshot of what the future holds.

Congratulations to OPUS on their 30th Anniversary!

We wish you continued success.

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cmsi GYPSUM DRYWALL (SOUTHERN) LTD.

Congratulations to our longtime friends at

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Congratulations to OPUS on their 30th Anniversary!

Proud to be working with you, and we wish you continued success!

on reaching your 30th anniversary!

Here’s to your continued success and many more fruitful years working with all of you!

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Our solid reputation and success is based on our clients satisfaction

Since our first job together back in 1987, we’ve been building a great relationship with OPUS. Wishing continued success, and we look forward to more projects together in the future.

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As the OPUS team looks to the horizon, undoubtedly Hannes is leading the way – strategically and passionately. “Passion means many things: it means you give five per cent more than your competitor, it means you create new ideas and it means you don’t give up – you keep trying until you find a solution,” he says.

As OPUS celebrates their 30th anniversary, they would like to extend a sincere thank you to all the business partners, suppliers, employees and customers who have helped them arrive at this milestone – they couldn’t have achieved it without their support. •

Britannia Crossing

Britannia Crossing. Photo courtesy of OPUS

On the south-west corner of Elbow Drive and 50th Avenue SW sits a site under construction. It had been vacant for years and like so many pockets of prime real estate – that’s located just outside the inner city – it’s only a matter of time before it’s developed.

In 2009, OPUS started entertaining the idea of developing the parcel and originally, they received the development permit to build a strip mall. At the time, there was a two-storey height restriction for commercial development, but the city knew something that OPUS didn’t: the city had plans to redevelop the community of Britannia, so they encouraged OPUS to think a little bigger. And that was exactly what they did.

Originally, the parcel of land had two residential lots and one commercial lot separated by a lane way that provided just over an acre of land. As the strip mall concept was shelved, plans for a new fivestorey building emerged. OPUS had to amalgamate the lots, re-zone the land and reroute the lane – all

with approvals from both the city and the community association.

“Britannia Crossing is a typical OPUS project and we have pushed the envelope to get it approved,” asserts Hannes.

“It’s a personalization that reflects the vision and strength of the company. Taking a project that many thought was too difficult to get through all the necessary steps to where we are today; under construction and space being leased,” comments Angela.

When complete, the main floor will offer just under 13,000 square feet of retail space. Floors two through five will provide over 53,000 square feet of office space, plus two levels of underground parking and short-term surface stalls. Britannia Crossing will also be the future site of OPUS’s new head office.

“The whole area is undergoing an area redevelopment plan and Britannia Crossing was the first new building to receive city approval with that plan in mind. It’s a leading-edge project and it’s attracting

OPUS | 30th Anniversary | 10

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OPUS | 30th Anniversary | 11

Back to Basics With a new leadership team, a fresh vision and more than three decades of service in Calgary, Plumb-Line Group of Companies is building a foundation for the future

BY CAMIE LEARD

I

t’s a common theme in construction and in business: sometimes you need to break things down before you can build them up again. After five tumultuous years of acquisitions, sales, management shuffles and financing hiccups, Plumb-Line Group of Companies has regrouped and refocused and has begun to reclaim its place as a leader in its industry.

Con-Forte Contracting, Asty Construction, Plumb-Line Residential Services and Sas-Can Masonry and Restoration

are companies that have laid the foundations for much of this city over the last four decades. Specializing in concrete and masonry work from residential basements through to commercial highrises, chances are you’ve set foot on a Plumb-Line company’s handiwork. It’s that legacy combined with professional, efficient and leading-edge business systems that president Joel Thompson and his senior management team will use to rebuild their company’s reputation and market share in the coming years.

Plumb-Line Group of Companies | 1

The Plumb-Line Management Team: Front (l to r): Jeff McConnell, Joel Thompson, Kevin Kuntz. Back (l to r): Chris Althorp, Todd Elliston, Shane Forrer. Photo by Camie Leard.

“Throughout my career, I knew these companies. I knew they did quality work and had a strong legacy in this city,” he explains. “So my role is to set the vision, simplify and ‘draw the target’ then let the companies do what they do best. They’ve been building Calgary for a long time – it’s just a matter of giving them the tools and support they need to do it.”

Thompson took the reins as president in July 2012. His back-to-basics philosophy is simple: take care of your people, take care of your customers, take care of quality and everything else takes care of itself. “It doesn’t have to be any more complicated than that,” he says.

Take Care of Your People: Safety Program Aims for “Zero” Todd Elliston is Plumb-Line’s corporate health and safety manager. Having joined the company in June 2012, his mandate was simple: make Plumb-Line a safety leader in the industry.

“Our goal is to reach zero,” he explains. “Zero accidents, zero near misses, zero incidents and zero property damage.”

While developing a safety culture in an organization that hadn’t had an official program up until last year has its challenges, Elliston says a few factors have convinced him they can reach their goals.

“There is a strong support for the program right from the top,” he says. “Financial resources have been allocated to support us in every way, shape and form. We have a leadership team committed to creating a safety culture and we’re involving the front-line workers right from the start in the development of the policies and procedures to ensure we get it right and have buy-in right through the company.”

Extensive training, policy development and incentive programs all contribute to the program Elliston and his team are building – a program that is a key factor in the company’s overall strategy.

“Safety is priority number one and we intend to be a leader with a program as good as those of the general contractors we work with,” says Thompson.

Plumb-Line Group of Companies | 2

Take Care of your Customers: Traditional Values and Building Synergies With their roots firmly planted in the family business model, Plumb-Line’s people know the value of building relationships through service. Asty’s general manager Shane Forrer has been on the front lines since he was “old enough to watch cement dry.” His father, Mike Petrollini, and his partners founded the company in 1978 and built it to be the largest business of its kind in Calgary before selling to Plumb-Line in 2008.

“I remember my father’s days of handshake deals when your word was your bond,” says Forrer. “We knew everyone on a first-name basis and built long-term relationships with our customers and with our staff. I still try to carry that forward today.”

Taking those traditional values and building on the synergies created by having four companies under the same roof means creating value for customers. Kevin Kuntz, general manager of Plumb-Line Residential Services, says: “Having a family of companies in one place means having a bigger

team of people building relationships with clients and really giving them the strength of the entire Plumb-Line offering – whether we’re cribbing basements in a residential area, restoring historical buildings or laying sidewalks – each customer benefits from a huge wealth of experience and expertise between these walls.”

With that expertise and a commitment to building customer relationships, the Plumb-Line team has a simple message for clients past, present and future: “We only need the opportunity to prove that the service is still there,” says Forrer. “There have been a lot of changes, all of them for the better, but one thing that hasn’t changed is the work – we’re delivering the quality end product we always have.”

Take Care of Quality: Invest in your People, Products and Processes Joel Thompson knows that the quality offered by PlumbLine companies lays with the tradesmen on the front lines.

“The companies are full of these professional tradesmen who take pride in the quality work they do,” he says. “Their

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skills are learned through years of experience and they want to be proud of the work they do. That’s what makes the companies valuable.”

Examples of the companies’ work are features in many of Calgary’s favourite places. Sas-Can’s masonry work adorns the Penguin Plunge building at the Calgary Zoo, skaters shred Asty’s curved concrete at Shaw Millennium Park, shoppers flock to CrossIron Mills where Con-Forte’s handiwork shines and hundreds of families’ homes rest on solid foundations thanks to Plumb-Line Residential’s quality work.

While each of the Plumb-Line companies has decades of quality work behind them, the management team has no intentions of relying on its reputation.

“You’re only as good as your last job,” says Thompson.

“That’s the one that people talk about.”

Along with the quality that comes from an experienced team of trades people, Con-Forte and Sas-Can’s general manager Jeff McConnell says Plumb-Line is enriching the rest of the team as well to ensure a culture of great work thrives at all levels.

“We’re investing in our supervisors, our foremen and right through to management, and beyond,” he says. “Our people are our greatest assets in delivering quality work and by providing training, education and support, we give them the tools they need to continue delivering the highest level of work.”

Aldo and Simon Leone – Creating a Legacy of Craftsmanship When Simon Leone graduated from high school 10 years ago, he knew exactly what he wanted to do: follow his dad’s footsteps into the concrete business. But it wasn’t just any business, it was Asty Construction – a company his father, Aldo, had been loyal to since it poured its first sidewalk 25 years earlier.

“My dad loved his job,” says Simon. “And the company always treated him well, so I went to work on his crew right out of high school. I started out as a labourer and went from there.”

Ten seasons later, Simon has learned a lot from his dad and other Asty “lifers” like him. He now runs a crew of his own as a concrete foreman. His second in command? Aldo, of course.

“I love working with my dad,” says Simon. “We keep an eye out for each other.”

This two-generation team, believe it or not, isn’t unique at Asty – there are other father-son duos – but it is rare in the industry. Shane Forrer, Asty’s general manager, says veterans like Aldo are becoming rarer by the season.

“Our greatest blessing could become our greatest challenge,” says Forrer. “Year after year these Aldo (left) and Simon Leone, a father-son team, have worked for Asty Construction for 35 and 10 years respectively. Simon, now his dad’s foreman, guys, who have been with us for decades in some says Asty has always treated him and Aldo well and has given him lots of room cases, are retiring and there isn’t an influx of for advancement. Photo courtesy of Simon Leone. young people coming in to learn from them and carry the craft forward. There’s a gap forming.”

It’s a gap Simon is more than willing to fill.

“It’s a privilege to be able to work with these older guys, earn their trust and have them teach you the skills you need to move forward,” he says. “And there’s lots of room to grow with Asty. Every year, I’m one step further in the company. It’s been a great opportunity.”

Plumb-Line Group of Companies | 4

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Above: An example of a masonry project by Sas-Can. Right: A crew from Asty preparing a sidewalk for a new subdivision.

© 2013 Ernst & Young LLP. All Rights Reserved.

Congratulations to the Plumb-Line Group of Companies. ey.com/ca

Moving Forward Chris Althorp is Plumb-Line’s director of business development. Having joined the group in 2012 with the express purpose of reintroducing the Plumb-Line companies to the market, he says he’s excited about moving the business forward.

“This is a great group of people who have been doing the highest quality of work in this city for decades,” he explains.

“Combine that with a dedication to building lasting relationships with clients and I am confident the company has a bright future.”

The management team has undeniable drive when it comes to that future. With new leadership at the helm and a renewed focus on safety, quality, service and integrity, Thompson says he’s optimistic about the coming years.

“I love working with these guys; there’s so much energy,” he says. “It’s not often an opportunity like this comes by in where you have the chance to reinvent something and put your own stamp on it. I think this team is ready to make great things happen.”

Plumb-Line Group of Companies | www.con-forte.ca Plumb-Line Group of Companies | 6

Highland Moving Turns 75

By Mark Kandborg

T

he year was 1938 and Peter Kachur had just bought himself a truck that carried his future. It came bundled with a company called Jim’s Express Transfer and Baggage Hauling, Ltd. Legend has it that Peter kept the name Jim’s Express because he didn’t have the paint to change the writing on the doors.

What he did have was business sense, which he applied liberally to his little business, growing it bit by bit over the decades.

By the mid-sixties, Peter’s two sons, Norman and younger brother Don, were each considering ways of making their own mark in the world. Their father’s health was failing, so he offered his eldest the chance to take over the business. Norm agreed, and ran Jim’s Express successfully for the next ten years. In 1974, younger brother Don bought into the company.

The forming of that fraternal partnership was auspicious as it marked the germination of an entirely new business model.

“We knew that delivering used furniture wasn’t the future,” Don Kachur, now President of the company, says. “We saw that MacCosham’s was rich, and we weren’t. So we said, let’s do what they’re doing.” They joined United Van Lines, bought land, built a warehouse and got down to the task of selling their services to the corporate sector.

The company made bold decisions. “We went head-to-head with MacCosham’s to land a contract with Canadian Bechtel,” Don says. Bechtel needed a company to handle the employees that were about to transfer to Ft. McMurray to build the massive Syncrude oil sands plant. “We got the job.”

Norman and Don realized it was time to change the name during a meeting with Brian Ascough of PWA. There was one thing keeping them from landing the account. “Brian asked if we would feel safe flying to Calgary on ‘Pete’s Airline’. We got the point.”

Jim’s Express and Baggage Hauling was re-imagined as Highland Moving and Storage, and in 1994, Don Kachur assumed full ownership of the company.

A few years later, a conversation between Don and a successful colleague, Jim Thompson, brought about another change.

Thompson, head of the world’s largest international moving company, said “Come with me to Hong Kong, and in three days you’ll know about international moving.” Upon his return, Don started looking for someone with international experience to take High-

land to the next level. Enter Paul Wielens, Highland’s International Rating Clerk and now, their CEO. International moving requires exceptional skills to navigate the regulations and paperwork involved. “We ship everywhere,” Wielens says. “You name it, we’ll get it there.”

Highland Moving now operates out of its new warehouse in Edmonton’s west end. Don’s son Casey became a managing partner three years ago and manages the Calgary operation. Including their Calgary Branch, they employ 36 office staff. With more than 60 trucks and up to 200 employees, they pride themselves on their ability to get the job done.

It’s been 75 years since an ambitious man bought that first truck, but with 1,600 moves last year and a projected 2,000 in 2013, the future remains bright for this family business.

Unit #18 7115 - 48 Street S.E. Calgary, Alberta T2C 5A4 Phone: 403-720-3222 • Fax: 403-279-4062 info@highlandmoving.com • www.highlandmoving.com

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“Come hail or high water”

When Disaster Strikes…

Call RCC South

Written and photographed by Mary Savage

W

hen the phone rings at Rocky Cross Construction South Ltd. (RCC South), it’s anything but typical. From floods and fires to crime scenes and vehicle impacts, the RCC South crews are dispatched to help home and business owners when disaster strikes – 24 hours a day.

Unexpected and highly disruptive, life throws a curve ball and everything seems to stop – until the RCC South crews arrive.

“Our goal is to achieve the fastest response to disaster mitigation and restoration of any company in the industry because water, moisture and humidity don’t stop doing damage even after the emergency is over,” remarks Dave Smale, president.

For residential, multi-family and commercial, RCC South has carved out a well-respected reputation as being the “first responders” for clean up, restoration and renovations. RCC crews are usually on-site within one hour from when the homeowner contacts their insurance broker.

Although the company was originally established in 1981, five years ago, three employees purchased RCC South and it represented a turning point for the business.

Dave Smale, Mitch Segal and Danny Moser had been with the company for over 10 years and when the opportunity arose, they recognized the potential for long-term growth – with a bit of hard work.

One of the first changes the new owners implemented was an ISO 9001 Certification thereby creating protocols and improving efficiencies to better serve their customers and employees. “Today, we run

L-R: Mitch Segal, CFO; Danny Moser, COO; Dave Smale, President

an efficient and professional operation,” says Smale. “We are always available when our customers call and I don’t think there’s another company who can compete with the level of service we offer.”

As part of the transition during the early years, another change welcomed additional employees. When they purchased the business, RCC South had 30 employees and today they have over 40.

As they grew, they hired an emergency manager along with a dedicated production department that supports the project managers.

The estimating and customer service department also runs very smoothly, and again it’s a reflection of the improved operating standards found inside the RCC South office.

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Congratulations to Rocky Cross Construction!

Wishing you continued success.

Secure Plumbing & Heating Inc. Bay 6, 4420 75 Ave S.E Calgary, AB T2C 2H8 Tel: 403.695.4277 info@secureplumbing.ca www.secureplumbing.ca

Bar Electric 2152 Chilcotin Road NW, Calgary, AB T2L 0X1 403.969.2385 bruce.crawford@telus.net

Rocky Cross Construction South 444 42 Avenue SE • Calgary, AB | 403.253.2550 or 1.877.253.2550 | www.rccsouth.com

“Our customer complaints have decreased substantially even though the volume of work has increased, and that’s a real indication of how well you’re running the business,” says Mitch Segal, CFO. As Segal has observed, the ongoing success of the business is largely reflected in the people they hire. “We have quality people who are committed to doing a great job and we acknowledge their loyalty. As a result, we have excellent morale and very little turnover,” notes Segal. “We sincerely care about our people, and we not only empower them, but we expect it.”

Technology is another area that has affected the business – allowing the owners to streamline the operation. “The industry has evolved and the insurance companies have high expectations with respect to the project managers,” remarks Danny Moser, COO. “We continue to fine-tune our business in response to those expectations.”

To date, the majority of RCC South’s work has been in the restoration field, but it seems there’s a growing demand for renovation work. “We are already working with the homeowner and many inquire about renovations, so it seems like the next natural step in growing the business,” adds Moser.

Additionally, RCC South has expanded into the property management arena to better service the large condo market and multi-family complexes when dealing with insurance claims.

“The importance of providing general contractor services to the property management groups cannot be understated: they have to maintain these properties and often have to work with the insurance companies involved with insurance claims,” he adds.

“As a recognized general contractor, RCC South assists the property management companies when these issues arise.”

Indeed, five years later RCC South has emerged as a different company and their hard work has paid off. Last year witnessed their best year to date and many of the older customers are starting to walk through the front door again.

As RCC South celebrates their fifth anniversary – under the new ownership – they would like to extend a sincere thank you to all the business partners, suppliers, employees and customers who have contributed to their success.

“Every day is different – it’s like drinking from a fire hose!” says Smale with a grin. “But I am proud of the way we run our business: we’ve come a long way in five years.”

Congratulations on 30 great years!

Looking forward to continuing to serve your dry ice blasting needs.

Ph: 403.516.6111 | Cell: 403.813.4828 Fax: 403.934.5848 | belairfaron@hotmail.com

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Eyes are on Alberta • Real Estate

Eyes are on

Alberta

Photo courtesy of Jameswood Homes Inc.

As residential real estate pricing continues to stabilize across the country, all indications are that Calgary’s market is gaining momentum and will keep bucking the trend.

BY HEATHER RAMSAY

W

hen it comes to economic momentum and the residential real estate market, Alberta is certainly leading the way nationally. While other markets and regions struggle with sagging prices and ever-increasing inventory, Calgary continues to garner strength and is seeing moderate increases in house prices and the overall number of sales. The encouraging news is that local and national experts anticipate that the trend will continue for the bulk of the year, provincewide.

Earlier this year, experts within the residential real estate industry and representatives from BMO Financial Group participated in a housing panel to review the past year and deliver their projections for 2013. Indications are that while most regions are experiencing a ‘soft-landing,’ Calgary will continue to buck the trend. Sal Guatieri, senior economist with BMO Capital Markets, explains that after a decade-long boom, pricing will continue to moderate across the country and stabilize. “Alberta is clearly leading the way. Pricing corrections were seen in that region in 2008 and remained flat for a year. Valuations have been restored and housing is more affordable. With the Bank of Canada likely holding low interest rates for another year, we anticipate that Alberta will continue to lead the country in economic growth and 120 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

net migration. While tighter mortgage rules and elevated household debt weighs heavier in other areas, all indications are that Alberta will continue to buck the trend and lead with pricing increases and sales activity,” explains Guatieri.

There are a number of factors that are directly contributing to the activity in Calgary and area. According to Guatieri, job growth, migration and immigration to the region are part of the formula. So too are the increasing number of echo boomers who are now entering the first-time homeowner market and a trend in the number of single-person households. “Nationally, single homeowners make up 28 per cent of the market. Homes in Alberta continue to be affordable, valuations have been restored and if the province performs as expected it will certainly be one of the top three economic regions in the country in 2013. There is no question that commodities and the energy sector are continuing to build Alberta,” he says.

That is a forecast that new homebuilders and real estate agents are pleased to hear. The past year ended on a 15 per cent sales high over the previous year and early statistics for January indicated that all sectors of the real estate market are on the move. Brent Lane, broker with Twin Lane Real Estate Team/Century 21 Bamber Realty, is optimistic about the pend-

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Eyes are on Alberta • Real Estate

While other markets and regions struggle with sagging prices and ever-increasing inventory, Calgary continues to garner strength and is seeing moderate increases in house prices and the overall number of sales.

Photo courtesy of Jameswood Homes Inc.

ing activity in new home construction as well as the resale market. “We will likely see a temporary boost in the new home market along the edges of the city and surrounding areas, as a result of the current lack of resale inventory. The desirability will then decline somewhat as the spring market intensifies and the inventory resumes in the inner city. The outcome may be a need for new builders to offer inducements such as free upgrades and price reductions in order to compete,” surmises Lane.

He goes on to also explain that he has been witness to a trend whereby homeowners on the edge of the city are now moving back or into the inner city. “Lifestyle and reducing commute times and extra expenses are becoming increasingly important to homebuyers.

More and more of my clients want to be living in the inner city, so they have access to the dinning, entertainment and fantastic experiences that the heart of Calgary has to offer. They are sacrificing square footage for quality of living, meanwhile spending the same amount on their home.”

For craftsmen such as Don James of Jameswood Homes Inc., activity in either or both markets is positive. Having provided custom home renovations to Calgarians for over 30 years, James is passionate about his work. “We continue to see opportunity and growth in custom homebuilding, and even more so in renovations. Homebuyers are increasingly better educated about their options and what they want. They are seeking out true craftsmanship and reputable businesses to ensure their project is managed properly and appropriately,” says James. “Kitchen and basement renovations continue to be popular,

especially as young families move into different communities and want to personalize and upgrade their home, and more mature families are accommodating teens and young adults in basement living spaces.”

The ‘golden rules’ of renovations, as outlined by the Canadian Renovators’ Council for the Canadian Home Builders’ Association, includes: • Know what you want • Set a realistic budget • Plan for the long term • Don’t jeopardize the quality of your renovation by compromising on the quality of products or materials • Don’t choose a renovator on price alone • Protect yourself • Don’t buy from a door-to-door salesperson without carefully checking out the company * http://www.chbaalberta.ca/golden-rules

Although pricing continues to shy from records set in 2007, the end of 2012 saw continued and moderate increases and the Calgary Real Estate Board forecasts ongoing sales and price growth of 2.9 per cent for 2013.

The benchmark price for a singlefamily home in December 2012 was $434,800. During the same month, condominium apartment and town house sales also increased, by 12 and 16 per cent respectively over the past year. The benchmark price for a condominium apartment in December of 2012 was $248,700, however, it should be noted that sales of several multimillion-dollar condominiums skewed numbers. All in all, resale sales are at more normal rates of activity.

122 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

“For those looking to enter the real estate market, the hinge is in securing financing,” says Jamie Coulter, mortgage broker with Dominion Lending Centres/Westcor. While the federal changes to mortgage rules will make it difficult for some Canadians to qualify, buyers will certainly benefit from low interest rates and being astute in making a decision to purchase quickly.

With limited inventory available, properties are spending an average of 54 to 64 days on market. “Monthly income and liability, and current credit ratings dictate qualification for financing. It’s a healthy market, so it’s even more prudent to have financing in place before making an offer. With a minimal spread of 0.2 to 0.3 per cent between fixed and variable interest rates, the best option is clearly fixed.

It’s an ideal rate and we likely won’t see any major increases for a while,” states Coulter.

As international markets continue to fluctuate and the natural gas sector wanes, there will always be those who speculate about real estate in Calgary, and throughout the province. Cautious expansion in the oil sector is anticipated, and will spur further economic activity and provide the stream necessary for ongoing growth. The subsequent benefit will be increases in employment and migration opportunities. Calgary is the heart and home of some of the most talented, creative and successful people in the country, and over the coming year there will be further growth and stability as we continue to buck the trend. How appropriate and advantageous for the Stampede city? BiC

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MARCH 2013

Alberta faces looming “budgetary storm” Finance Minister Doug Horner warns Chamber crowd that the upcoming provincial budget won’t be pretty

BY JESSE SEMKO

The world can change a lot in a year.

Alberta’s current Finance Minister Doug Horner spoke to the Chamber on January 21, 2013

Back in February 2012, Ron Liepert, Alberta’s finance minister at the time, spoke to a Calgary Chamber business audience, noting that the years ahead would likely be filled with double-digit surpluses. Liepert said the province needs to prepare for billions in revenue coming in from the oilsands, and that this “gusher” of new oilsands production could make the $5.2-billion surplus he forecasted for 2015 look like “nothing.”

Of course, Liepert’s rosy forecast never came to be. Since then, a confluence of factors has conspired to dry up the predicted gusher of revenue, leaving the Government of Alberta with billions of lost royalty and tax revenue. A lack of pipeline capacity and access to a wider range of customers, along with a glut of supply in the North American marketplace, has resulted in a price differential where western Canadian oil is selling at a deep discount compared to the world price. In December 2012, that discount came close to $40 per barrel and that gap may continue for some time.

Speaking to the Chamber on January 21, 2013, Alberta’s current Finance Minwww.businessincalgary.com | BUSINESS IN CALGARY March 2013 • 125

2013 Board of

Directors Executive Joe Lougheed – Chair

Dave Sprague – Immediate Past Chair Leah Lawrence – Chair Elect Rob Hawley – 2nd Vice Chair Denis Painchaud – Vice Chair, Finance

ister Doug Horner referred to the current situation as a “perfect storm,” noting that things may very well get worse before they get better. “It’s not pretty,” Horner said. “This differential has widened out during a period of time where seasonality would normally indicate we would get a better result.”

To get out of this situation, Horner said the government was going to go through a period of intense belt tightening and will be “very aggressive” about “reining in spending.”

“We’re looking at every dollar we spend to make sure it is being spent effectively through results-based budgeting. And in light of our situation, we’re accelerating that process.”

Horner’s talk came more than a month before the province is scheduled to deliver its budget on March 7, 2013. To date, rumours have been circulating around what measures the government will take to get spending under control and overhaul the province’s resource-dependent fiscal structure. Those options include adding health-care premiums, taking on more debt and maybe even bringing in one day a provincial sales tax, but only if the province is prudent and responsible with the money it already has.

Adam Legge – President & CEO Directors David Allen Bill Brunton Eva Friesen Guy Huntingford Rob Lennard Dilan Perera Linda Shea Paul Waddell Management Adam Legge, President & CEO Ben Brunnen, Chief Economist Michael Andriescu, Director of Finance & Administration Jackie McAtee, Director of Member Experience Kim Koss, Vice President, Business Development

Leading Business magazine is a co-publication of the Calgary Chamber and Business in Calgary Calgary Chamber 600, 237 8th Avenue S.E. Calgary, Alberta T2G 5C3 Phone: (403) 750-0400 Fax: (403) 266-3413 calgarychamber.com

Alberta’s current Finance Minister Doug Horner referred to the current situation as a “perfect storm,” noting that things may very well get worse before they get better.

Of course, none of these rumours have been confirmed or denied.

Fortunately, however, the day after the budget is delivered, Horner will be back in Calgary, talking to a Chamber business audience to dispel fact from fiction and offer extended views on the government’s budget position. Join the Chamber to learn more about the fiscal direction of the province and get the inside story on how this budget will impact your business.

For more information, visit CalgaryChamber.com or call Jennifer at 403 750 0432.

126 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

35 YEARS

35 YEARS ON THE FORCE T

BY MARK KANDBORG

he evolution of DRIVING FORCE is truly one of Alberta’s great business success stories. Company President Jeff Polovick started Grove Rentals and Leasing 35 years ago this month in a small service station in Spruce Grove, just outside of Edmonton. Since then, he’s guided it unflinchingly through a mercurial economy to become DRIVING FORCE Vehicle Rentals, Sales and Leasing. With a standing inventory of nearly 10,000 vehicles at 20 locations and over 375 employees in Alberta, B.C., Saskatchewan, Yukon, the Northwest Territories and Nunavut, DRIVING FORCE is now one of western Canada’s largest vehicle suppliers.

This month also marks the 20th Anniversary of DRIVING FORCE’s Calgary Branch. “We opened this office in 1993 to better serve the FROM LEFT TO RIGHT: MIKE CRYER, RENTAL MANAGER, JOANNA BUSHEY, USED VEHICLE MANAGER, CRAIG STRACHAN, full spectrum of the oil field sector,” says Branch BRANCH MANAGER, AND DARRELL NICKLASSEN, LEASE MANAGER Manager Craig Strachan. “Calgary is home to so many corporate head offices, from everywhere. We’re handling that the Calgary branch has just completed a full renovation. more of the white collar market here, while Edmonton services Whether in Alberta or BC, or Saskatchewan when you pull into more of the blue collar sector.” a DRIVING FORCE lot, you’ll be certain you’ve come to the Tourism is another important component of the Calgary right place. The building’s shining glass and clean lines, reflected vehicle leasing market with which DRIVING FORCE has in the polished windshields and gleaming paint of the neat rows had great success. “We rent and lease 28-passenger buses for of cars and trucks outside will let you know that when you walk six months to a year to clients who use them to tour groups through those doors, the selection of vehicles and level of care through the mountains,” Strachan says, adding that these tours you’ll receive will not only be exactly what you need - they’ll are especially popular with visitors from Japan and China. “The be consistently above what you’d expect. That’s the DRIVING glaciers are a big draw.” Winter trips through these areas pose FORCE way of doing business. certain challenges, which DRIVING FORCE has addressed by offering specially designed buses for the task. “One important feature they have is double paned glass. With any other vehicle, 2332 - 23 Street NE when you get a couple of dozen passengers looking out the win(the corner of 23rd Avenue & Barlow Trail) dows in those temperatures, they fog up. You can’t see a thing.

Calgary, AB T2E 8N3 We’ve solved that problem. There are only a handful of these Phone: (403) 296 - 0770 buses around,” he says, “and we’re the only company that rents Toll Free: 1-800-936-9353 and leases them on a serious basis.”

Clarity of vision isn’t just important for tourists, of course. It’s important for businesses, too. DRIVING FORCE prides itself on providing the same level of service and quality to customers regardless of which city they’re visited in. That’s one reason

drivingforce.ca

Upcoming Events

Finance Minister Doug Horner – Alberta’s budget 2013 Friday, March 8, 2013 - 11:30am to 1:15pm Hyatt Regency Calgary 700 Centre Street SE Fresh from delivering the 2013 provincial budget, Alberta’s Finance Minister Doug Horner will be offering extended views on the government’s budget position and the looming deficit in a speech to the Calgary business community.

Join the Calgary Chamber to learn more about the fiscal direction of the province and get the inside story on how the government’s belt-tightening measures will impact your business.

Tickets Individual tickets | Members $79 | Non-members $99 Tables of eight | Members $630 | Non-members $790 For more information, visit CalgaryChamber.com or call Jennifer at 403 750 0432.

New & Noted

Active Machining Inc.

C&T Management

activemachining.com

KTI Logistics Ltd. ktilog.com

trsstaffing.com

First Executive Centre Allied Properties REIT

firstexec.ca

alliedpropertiesreit.com

Lawson Lundell lawsonlundell.com

AspenClean aspenclean.com

Bow River Wellness Centre

Marlborough Mall Chiropractic

JuneWarren-Nickle’s Energy Group

SOL Supply Ltd.

nickles.com

solsupply.ca

bowriverwellness.com

128 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

TWT Group twtgroup.ca

Inspire Studios Inc. inspirestudios.ca

TRS Staffing Solutions (Canada) Inc.

Whitehouse Portfolio Management Group nbf.ca

A GAtherinG PlAce in the heArt of the city Since opening in 1974, the Calgary TELUS Convention Centre (CTCC) has been the place in the heart of Calgary’s downtown business district where Calgarians and visitors from around the world gather for a wide variety of events. As a centre for business conferences, charity functions, trade shows, Annual General Meetings, and graduation ceremonies, the CTCC continues to meet the needs of Calgary’s community and those who choose to hold meetings in our city. The CTCC’s combination of central location, world-class facilities, and dedicated service staff ensure the needs of their diverse clientele are met.

Many large corporations hold conferences at the CTCC and attract attendees from around the world who benefit from the infrastructure and amenities of downtown Calgary. As a key convention destination for local, national, and international organizations, the CTCC also hosts events as diverse as Mixed Martial Arts championships and the Calgary Art Market Art and Craft sale. The multiple meeting room options are the spaces where many companies choose to host their Annual General Meetings for the convenience of their participants.

In addition to serving the needs of the business community and hosting corporate events, the CTCC is the oft-chosen space for Calgary’s graduation dinners and proms. Many generations of Calgarians have fond memories of gathering at the CTCC with friends and family to mark these important occasions.

Easily accessible from all quadrants of the city, the availability of catering services and multiple meeting spaces make the venue a desirable choice for many kinds of functions. All year round, the CTCC provides the space for the people of Calgary and their guests to gather for business, community, or private functions.

The management team of the CTCC are determined that the facility should be a vibrant space utilized in many different ways.

The CTCC has 122,000 square feet of convention space, over 47,000 square feet of exhibit space, five pre-function areas, and 36 meeting rooms; there is a space at the CTCC to meet your specific needs. The CTCC is a successful meeting and convention facility and the vision for the future promises a gathering place for people to come together, to learn, to connect, and to interact in the heart of Calgary. The CTCC is a resource for all Calgarians. calgary-convention.com www.businessincalgary.com | BUSINESS IN CALGARY March 2013 • 129

Air Access – the good, the bad and the reality

BY STEWART MCDONOUGH

I

nternational visitation to Canada isn’t matching the growth of the market, and we are growing overly reliant on domestic travellers. Those travellers are being pulled south of the border by Brand USA, about to enter its second year of significant investment in the Canadian market, which presents a threat to our bread-and-butter domestic market.

The Canadian Tourism Commission’s funding is eroding, which further threatens our ability to market Canadian destinations abroad.

Fortunately international tourism continues to grow regardless of the global economic downturn. Canada also has the second strongest international tourism brand following two years at No. 1. Alberta’s provincial tourism marketing organization is strong, well-funded and winning awards for its results-driven creative campaigns. Likewise, Calgary’s tourism industry has been enjoying nation-leading growth thanks to better aligned marketing, recent milestones and new tourism product.

So why, when our brand is strong and our product is compelling, is Canada’s travel deficit growing? One of the reasons is the cost of air travel to and within Canada.

While airports generate more than $45 billion in economic activity, resulting in significant tax revenues for all levels of government, they have not been designed to be cost competitive in North America or internationally.

Fortunately, Calgary is in a relatively strong position in relation to air access. Currently Calgary’s world-class international airport is the fourth busiest airport in the country. Two massive infrastructure projects with an estimated investment of $2 billion will result in a new runway opening in 2014 capable of landing the world’s largest aircraft and a new terminal opening in 2015 that will be equipped with 22 additional aircraft gates.

The Calgary airport also provides far more than the national average of passenger capacity per capita, providing Calgarians with excellent access to flights and, from a tourism perspective, a wide variety of markets with regular access to Calgary. WestJet’s recent announcement that their new regional airline, Encore, will be anchored in Calgary will provide further airlift into our market.

Year-over-year passenger volumes at the Calgary International Airport have increased in eight of the last nine years. With more than 13.6 million passengers travelling through the airport, 2012 was another record-breaking year. Further, the Calgary Airport Authority has a strong collaborative relationship with Tourism Calgary, providing valuable visitor centre space and incorporating a Calgary 130 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

White Hat volunteer program into a welcoming visitor experience.

So on the plus side Calgary is well situated with a strong airport authority and good access in and out of our destination. However, there is a less optimistic picture to paint for overall air access nationally.

According to the June 2012 Canadian Senate Report on The Future Growth and Global Competitiveness of Canada’s Airports: “The high cost of flying in Canada is limiting potential economic growth. Increasingly, Canadians are cross-border shopping for cheaper American flights.

Canada is missing opportunities to support its airports in competing internationally, thereby expanding air services and increasing trade.” The report further states that: “The Government of Canada should stop treating airports as a source of public revenue and start treating them as economic spark plugs.”

In 1994, the federal government introduced the National Airports Policy (NAP), which retained federal ownership of Canada’s 26 busiest airports, but leased them to not-forprofit airport authorities to manage and operate. Since that time, NAP airports have generated $2.5 billion in revenues for the federal government in the form of ground rents.

Canadian airports are well run – Canada’s air transport infrastructure is ranked first in the world according to the World Economic Forum. Unfortunately, the federal government views airports as a source of revenue rather than an economic enabler. This practice is contrary to the American system that sees government subsidizing airport ground rents, security, airspace control and more. These costs being turned over to Canadian airport authorities results in a much higher cost of air travel north of the border, which, in turn, acts as a deterrent to international and inter-provincial travel.

Canadian airports, including those in Vancouver, Toronto and Montreal, lose close to five million flights per year to less costly American airports in near proximity – roughly equivalent to the number of passengers travelling through Ottawa’s international airport. And with just over 75 per cent of the Canadian population living within 90 minutes of the border this habit is likely to continue.

While the Calgary International Airport is not as affected by this practice, the national tourism implications of high flight costs continue to have a negative effect on our nation’s global air travel price competitiveness and local visitor economies, in particular on our ability to attract visitors from lucrative international markets.

Art and the Soul of the City “Art is not a thing – it’s a way.” ~ Elbert Hubbard

A

rt is created to inspire, interpret, convey and evoke.

Install this art outside and place it in a public place; you’ve now created an accessible opportunity to delight citizens, attract newcomers and welcome visitors.

This contributes to what we call the Soul of the City.

Launched in September 2012, in partnership with the Calgary TELUS Convention Centre, Calgary Economic Development’s Soul of the City speaker series is bringing new appreciation to Calgary’s unique places and spaces and the diversity of our social offerings. Our November session brought together industry experts to discuss the intersection of architecture, shared spaces and ecology to foster community and increase attachment levels amongst citizens and enhance a city’s appeal. This was an ideal segue into the January session which focused on weaving public art and inspiring architecture into the fabric of our city.

Our panel of speakers were well suited to shed light on the many facets of public art. TrepanierBaer Gallery owner Yves Trepanier shared how public art has helped to shape and define the East Village redevelopment by celebrating nature and identifying place; both crucial to honouring the location and geography of the East Village. Craig Reardon, Vice President of Administration at Encana told the audience that inspiring public art is also great for business and the BOW tower gives Encana the opportunity to reflect its company values and ever-changing industry. They certainly have a lot to be proud of – its curved, 58-storey high rise is the largest in Canada outside of Toronto and was recently awarded one of the top 10 architectural projects of 2012 according to Azure Magazine. Love it or hate it, the BOW, the infamous ‘head’ and the yet to be completed ‘Wonderland’ plaza is a great example of how inspiring architecture and public art bring people together in dialogue, debate and wonder.

Public art is a reflection of the Calgary we have become, a city that is indeed growing up, embracing our diversity and attracting people for reasons other than our known reputation as a centre of economic influence.

Think public art is only for the artsy? Just ask Karen Ball, Executive Director of Calgary 2012, about the nearly 200 public art projects and 34 ‘artist in residences’ its committee funded in 2012. You walked by them, you drove through them and you may have stopped to admire them. You may have stumbled across the ‘artists in residence’ quilting at the airport, dancing in the Calgary tower, or sketching at Calgary French schools. This funding provided Calgary’s

Sam Hester’s graphic recording of the January Soul of the City event.

arts community with an opportunity to be recognized for its incredible talent and diversity and our city the chance to brag about the richness of our creative industries sector.

So why public art? Why has the City of Calgary implemented a 1 per cent for public art policy in all city projects? Rachel Seupersad, Public Art Superintendent at the City of Calgary explained that public art offers us an opportunity to find meaning and connection to this city we all share. And no one can argue that the first thing people do when they travel to one of the ‘great’ cities of the world, the kind of city Calgary claims we are becoming, is walk up the Eiffel tower, sail around the Statue of Liberty, gaze at their reflection in Chicago’s ‘bean’ or peddle across the Golden Gate Bridge. Calgary has its own great example - the much debated but highly utilized (6,000 people/day) Peace Bridge.

Not only has the bridge received international accolades, it has become an icon and gathering place for citizens and visitors to the city. Like these renowned international cities, Calgary is a great city and one we want people to come to for reasons other than great jobs.

The City of Calgary considers that public art enriches the environment, is accessible to all, celebrates our diverse cultural character and contributes to our collective growth as culturally-informed citizens. It also attracts creative businesses and talent which from an economic development perspective is key to the larger discussion of place-making and people’s attachment to their city.

We look forward to building on this idea at our March 21, 2013 Soul of the City session on ‘creativity’. For us, celebrating the Soul of the City is understanding what drives people’s attachment to where they live. Art and artistic architecture are threads in our city’s fabric and we hope you’ll join us on this journey of discovery and delight. For more information on the Soul of the City speaker series, please visit: www.calgaryeconomicdevelopment.com/soulofthecity www.businessincalgary.com | BUSINESS IN CALGARY March 2013 • 131

Putting flames to work Effectively detecting sulphur for the oil and gas industry

BY ANDREA MENDIZABAL

“W

the sample in stages, burning up hen sulphur makes the other hydrocarbons. Once the its way through an sample reaches the final analytical engine and comes flame, the sulphur compound that out of the exhaust, we get sulphur used to get quenched out produces oxide-type compounds that come a bright and clear signal. out into the atmosphere,” says Dr. “Because the signal is not shut Kevin Thurbide, a researcher in down by hydrocarbons in the multiple the faculty of science’s department flame detector, it can truly give a real of chemistry at the University of positive that yes there is sulphur in Calgary. the sample,” says Dr. Thurbide. “The When deposited into the air in user can then investigate further and large quantities by sources such take the necessary steps to regulate as commercial gasoline or diesel their stock.” fuel, sulphur emissions can have He adds, “Environmentally, we negative effects on the environment. want to keep sulphur to a minimum When combined with water in the and we need to accurately monitor atmosphere it can form acid rain, or sulphur compound levels in it can interact with other particles The multiple flame photometric detector (mFPD) has the petroleum and in the oil and gas to cause harmful effects to soil or ability to accurately confirm the presence of sulphur in natural gas and other heavy crude stocks. When deposited into the industry.” sensitive wetlands and lakes. air in large quantities by sources such as commercial gasoline As the oil and gas industry goes “The government has recognized or diesel fuel, sulphur emissions can have negative effects on the environment. Image courtesy of Dr. Kevin Thurbide. into deeper crude stocks, it becomes that it’s an environmental concern more critical for heavy crude to and in the petroleum industry, you be properly refined in order to need to keep your sulphur levels keep sulphur levels to a minimum. low,” says Dr. Thurbide.

And because of the size and adaptability of the device, Dr. Dr. Thurbide and his research team at the University of Thurbide notes that the mFPD would also be ideal for a Calgary have developed an advanced technique for detecting variety of uses within the oil and gas industry including sulphur and other phosphorus compounds in petroleum. The downhole sensing and monitoring frac fluids. multiple flame photometric detector (mFPD) is a highly sensitive The device can also be adapted to the needs of a variety of pocket-sized device that can accurately confirm the presence of other industries that rely on the need to monitor the quality sulphur in natural gas and other heavy crude stocks. of their products such as the pharmaceutical and food and Unlike current devices that are widely used today, the mFPD beverage industries. is unique in that it uses a series of five flames as opposed to “I hope that the mFPD device will provide a reliable just one flame to single out the presence of picogram amounts measure so that the oil and gas industry and other industries of sulphur amongst hundreds of other compounds. can claim with confidence whether these molecules are “The biggest problem with current devices is that when present in their samples or not,” says Dr. Thurbide. sulphur comes into that single flame, if any other hydrocarbons The patent-protected multiple flame photometric detector go in at the same time, the other hydrocarbons often quench (mFPD) is available for licensing through Innovate Calgary. the signal giving false negatives,” says Dr. Thurbide. “The For more information or to learn more about this technology, confidence is not there. It could be that sulphur is present but contact Raja Singh, Licensing Manager, Innovate Calgary it’s being quenched out by all this stuff.” at 403.270.2435 or rsingh@innovatecalgary.com. To read Rather than having one flame process all the compounds about other exciting technologies available for licensing, visit in the sample at once, the mFPD features five nanolitreinnovatecalgary.com. sized flames in the device. These worker flames process

132 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

SPARK INNOVATION AT THE CENTRE OF ENERGY

DISCOVER WHY 75% OF CALGARY TELUS CONVENTION CENTRE CLIENTS ARE INSPIRED TO RETURN. –

FOR MORE INFORMATION VISIT:

calgary-convention.com

David Parker • MarketingMatters

MarketingMatters

BY DAVID PARKER

A

lot of creative energy goes into any rebranding exercise, and Zoom Communications certainly expanded a huge effort into renaming the company to V Strategies.

President and CEO Jeff Bradshaw says the rebrand was sparked by evolving changes into what clients and the market were demanding. He reports that video sharing in social media jumped 67 per cent overall in 2012, and video is the fastest growing component of the marketing mix with more allocated spending than ever before.

Video demand is now being incorporated into communications strategies for employee engagement, investor relations, branded entertainment, business development, executive messaging and social media campaigns.

Bradshaw says V is not just a new label on an old product. V Strategies brings more than just the production of video in creating processes, sculpting strategies and delivering campaigns.

•••••••••••••• When Margo McKee joined Mosaic Studios from Indigo Ice as a partner and creative director, president/ partner Melodie Creegan thought she might have to move from the character space in the red-brick building along 10th Avenue by Japanese Village Restaurant for bigger premises.

But her landlord was able to negotiate more adjacent space and after lengthy renovations and a switch to an open office concept, the 12 permanent staff are comfortable again.

Steve Bicknell is a fairly recent addition. I met him when he was with Heavy Industries – a real Calgary gem where he was project manager on the installation of the huge head sculpture outside The Bow. Bicknell serves on the Mosaic team as production manager.

Creegan is proud to show off her studio’s new website and email tag, and as well as doing continuing work for a good client base that includes Telus Spark and three American pipeline clients, since finishing her term as a board member of the Calgary Chamber of Commerce she has joined the boards of Ag for Life, and Calgary Business Diversity.

•••••••••••••• There are few Canadian members of the Boston-based Design Management Institute but Karo president and CEO Chris Bedford has been a member of the board of advisors for a number of years and has now been appointed to its board of directors. An international network of agencies that can tap into each other for advice while building global relationships, Bedford will now chair its advisory board.

In the advertising business one has to get used to account changes – no matter how good the last campaign was.

I am reminded that despite the annual collection of awards that Highwood Communications used to garner for the Calgary Exhibition and Stampede it lost the account. Karo did a fine job for Travel Alberta but the account was moved; yet its brand campaign has received another accolade, winning a platinum Hospitality Sales and Marketing Association International Adrian Award.

Chosen from a field of over 1,100 submissions suggests it was a fine piece of work.

Of its current work I like the new

134 • March 2013 BUSINESS IN CALGARY | www.businessincalgary.com

website it designed for Ronald McDonald House – check it out.

Karo has taken a step to establish a Toronto presence with the hiring of Marc Whitehead as its first senior strategist in the big city.

Whitehead has worked with companies ranging from multinationals to independent communications firms and has introduced many new products, services and brands. In his spare time he hosts a popular podcast and guest lectures to e-commerce students at York University.

And he was a colleague of Bedford’s in their Toronto KcKim days.

•••••••••••••• Kevin Franco, founder and owner of Francomedia, houses his eight staffers in one of the trendy creative multitenanted warrens in Inglewood. They specialize in web development but these days are spending a great deal of their time in the book business. Ebook business that is.

Franco is the co-founder of Enthrill Books, a company that publishes strictly for the ebook market. But this company is different in that its books can be downloaded onto any device.

Francomedia is having fun designing the web information, reproducing actual book covers for gift cards that hang on display racks – which you will find in Co-op and Safeway stores – and marketing Enthrill to a wide audience. BiC

Parker’s Pick: I like ads that show real people in their own environment; especially the Canadian Western Bank campaign showing the Vintage Group’s Lance Hurtubise in his wine cellar.

We’ve double doubled our campus!

On April 12 we will celebrate doubling student access at our new

LEED Silver South Campus. Get out of your office at Noon and come visit ours…and our state-of-the-art classrooms and student spaces.

BVC Alumni are invited for a special South Campus event on April 10.

Please call Vicky at 403-410-1563 for details.

While you’re here, why not pick up a double double to go?

Joining us will be our South Campus Partners: Athabasca University, Olds College, and the University of Lethbridge.