BIC September 2014 by Business in Calgary

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and Calgary’s top individ than 100 families have e NEGOTIATING trusted expertise & unp SAM has built an enviable reputation for having a high level of Do you have right ag professionalism in real estate sales and service. SAM isthe more than F O RTR E S S M A N O R S W

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SAM has built an enviab MARKETING professionalism in real es just another agent trying find its full colour image shining in some of the best-read, highestSPRINGBANK | hand $2,500,000 man, your sales strat quality publications. SAM does not believe in cutting corners at-large. He brings you t when it comes to getting results for clients. His unique commitment ethic andhaswell-rounded sk to superior and far-reaching marketing brought success for buyers and sellers of Calgary homes across ALL price ranges.

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SAM is committed to giving WOW service to all of his clients during One key toSAM SAM’s every step of the home buying and selling process. prides himself succes on developing relationships with his clients... In fact,some budget isfor life. high. Iffamilies you list have worked with SAM for as many as 10 times in 20 years and others findsuccess its with full have consistently experienced SAM 3colour to 5 times. Repeat image relationships and enthusiastic referrals are PROOF that SAM thrives on quality SAM R A N G E R publications. O A D 31 his commitment to his CLIENTS FOR LIFE.

243142 when it comes to getting r Incredible character home on a 6-acre parcel of land, just west of the city! Custom built French country inspired home offering 5,800 SF of interior living space plus an additional 3,000 SF of outdoor entertaining area. Designed to take advantage of the panoramic views from all three levels it features a huge dining room, kitchen with dual islands and a butler’s pantry, his & her main floor offices, a total of four bedrooms, gym, family room with wet bar, wine cellar and four-car heated garage. The master suite (1,100+SF) takes up the entire top floor with separate his & her ensuites and walk-in closets. The walkout is ideal for entertaining with a family and games room, oversized gym and guest suite with steam shower.

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than 3000 homes & generated over $1 bil1993. In 2012 he was ranked #8 in Canada ndividual Re/Max agent. So far this year more ave experienced what it’s like to have SAM’s & unparalleled professionalism on their side. ght agent working for you?

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enviable reputation for having a high P AT level of T ESRTSROE N 7A E T BSOWU L E V A R D , S W Prime location: Backing directly onto the ravine with stunning eal estate sales and service. SAM isviews! more than offering 3300+ SF by of living space & 4 top Built in 2010 Walkout and thenbungalow professionally decorated one of Calgary’s in total. On the floor you’ll fiIn ndan theoutstanding formal din-inner interior bedrooms design firms this home is main sure to impress. rying to close a deal. He becomes your right ing room with vaulted an open living room a cozy city location, just ½ block to theceiling school&and near the river andwith Glencoe club it gas fireplace & floor-to ceiling arched windows theformal strategist, your personal and discreet advocate offers 3,700+ SF of luxuriously appointed living space. overlooking Main floor has ravine. The kitchen is a chef’s dream, a gas cooktop, built-in living and dining rooms, breakfast nook and with family room with marble-faced you the exclusive use of his estimable work centre & walk-in pantry. breakfast nook features fireplaceoven, flanked by island walnut built-ins. Chef’sThe kitchen with Top-of-the-line sliding doors leading to a wall-to-wall deck; perfectand for walk-in outdoor closets package. Three bedrooms up, all with ensuite ed skill as an expert negotiator. appliance with built-ins. MasterThe hasgenerously a private scaled balcony and bedroom dressing room. Basement entertaining. master overlooks the

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uccess SPRINGBANK is his belief in quality advertising. His ad HILL | $2,900,000 WEST SPRINGS | $1,995,000 u list your home with him, you’ll be pleased to R I N G W I L L O W W AY , S W mage shining in some of the best-read,S PhighestW E N T WO RT H H I L L S W Spectacular 6500+ SF home on a 10,000 SF lot, backing west, directly SAM does not believe in cutting corners onto wooded ravine, with mountain views & lots of privacy! One of The ultimate family or executive West home withinspired five-cararchitecture. garage, fabulous a kind with contemporary, Coast Distinc-80tting results for clients. His unique commitment foot wide loturban withlook south backyard, over of livingwalnut space including tive & feel but with the6,200 use of SF wide-plank floors, developed basement bedrooms (four ensuite), two mudrooms, timber beams, with severalfive water features, multiple fireplaces & lots of -reaching marketing has brought success for seven bathrooms, formal dining room, gentleman’s dream den with rich natural stone. An exceptional home for both entertaining & fampanelling coffered ceiling, huge kitchen with all the bells and whistles, Calgary homes across ALL price ranges. ilyand living. Huge windows blur the line between indoors & out and great room with two-sided fireplace and access to deck, master with sitting

TMENT

5 24

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o giving WOW service to all of his clients during me buying and selling process. SAM prides himself

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Contents

Volume 24 • Number 9

THIS MoNTH’S FeATUReS 34 • ByDanny Hooper Offers Easy Money Fay Fletcher 38 • Small Size Doesn’t Matter Business Week encourages success 40 • The Alberta’s Mighty Machines past and present equipment that helped to shape Alberta’s oilsands history By Nerissa McNaughton

54 • AAlberta’s Sick-Care System bad case of confused priorities By John Hardy

59 • No Vacancy!

Calgary’s commercial real estate market By Tiffany Burns

72 • Backyards, Growth Spurt in the Burbs kids, dogs and Walmart By Dan Cooper

77 • ByTheParker Sophisticated Science of Drilling Grant 111 • Visualizing A Putting Good Time in Calgary is important BoMA CALGARy NeWS 63 • Fall 2014 ReGULAR CoLUMNS 14 • BySchool Is In Richard Bronstein 16 • BySaying Goodbye to the Budgeting Mess Frank Atkins 18 • ByThisLonnie and That Tate 115 • Leading Business 119 • Current The Calgary Report developments for Calgary Telus Convention Centre, Tourism Calgary, Calgary Economic Development, and Innovate Calgary

124 • Marketing Matters By David Parker

12 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

By John Hardy

CoMPANy PRoFILeS 85 • 25Rawlyk Developments Inc. Anniversary th

91 • 35ProCura Anniversary th

97 • 15WDYearsConstruction & Millwork 101 • 15MaxWell Realty & MaxWell South Star Anniversary & 25 Anniversary th

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School Is In • Richard Bronstein

School Is In By RICHARD BRONSTEIN

s families prepare their children for another school term, it got me thinking about who else might benefit from improving their education. The first person who comes to mind is Robin Campbell, the Alberta minister of environment and sustainable resource development. The minister recently released the Alberta government’s South Saskatchewan Regional Plan (SSRP). It’s sort of a vision statement about how to balance social, economic and environmental goals in this southwest corner of the province. Of particular importance to many people, especially to those living in this region, is protection of the Castle Special Place, which refers to the watershed of the Castle River system. Conservationists, environmentalists and the vast majority of local citizens are strongly in favour of setting aside 1,000 square kilometres of the Castle as a wild land park. This would link in with Waterton-Glacier International Peace Park to the south and British Columbia’s Flathead River Valley on the west to create a significant protected zone in one of the richest habitats for flora and fauna on the North American continent. It would be a tremendous legacy project for future generations of Albertans and the cost today would not be that great because the region currently does not have high human density nor does it have rampant industrial exploitation. You’d think that someone who carries the title “minister of the environment” could easily grasp the concept that protected habitat needs to be contiguous. And you also want to believe the person who is the environment minister might, from time to time, want to show foresight and leadership on an important issue. Instead, the minister’s SSRP cuts the Castle protected area in half from 1,000 square kilometres to 500 square kilometres on the grounds that competing interests of environmentalists and industrialists are both equal so they should be sawed off halfway each. So Robin Campbell pats himself on the back and declares he’s achieved the kind of wisdom of King Solomon. I think the minister misses the real point of that story. King Solomon never actually cut the baby in half because he knew that half a baby couldn’t exist. To put it another way, if someone front ends your auto14 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

mobile, you do not have half a car to drive. You have no car. This is how the ecosystem works, Mr. Campbell. It has to be whole or it is not protected habitat. And what is “balance?” Alberta is 661,000 square kilometres. The minister says it would be an undue burden on Alberta’s economy to restrict industry to only 660,000 square kilometres. So he cut the Castle protected area to only 500 square kilometres so industry would have 660,000 square kilometres to exploit. Does that make any sense? What makes the minister’s decision even worse is that the 500-square-kilometre protected zone is barely protected from one of its greatest threats – almost unlimited ATV access and random camping in giant RVs. I’ve been using the Castle area for 20 years and haven’t even come close to understanding and appreciating its importance as a natural area. But I do see the horror of unbridled motorized recreational activities. Under no conceivable system of self-entitlement or the imagination is it a common law right for people to freely drive machines on every patch of nature in our province. If people want to camp in RVs, and I’m OK with that, then build them nice RV parks and let them pay. If people want to drive their ATVs in the countryside, then let’s make them responsible, the same way we do with skiers or golfers, by allowing them to lease land at market value and have the users pay for the privilege. Having your way at the expense of other interests is not a right by any definition of the term. It is an abuse of general society. All of us face restrictions. I cannot butcher a cow in my backyard because the process may affect others. I cannot manufacture fireworks in my kitchen because it may harm others. We all understand that you can’t do whatever you want without there being a sensible safety net of reasonable limitations. Cutting an incredibly precious and rare habitat in half does not meet two equal goals. It clearly advantages the practice of industrialization/recreation over the goal of preservation. I’m sorry Mr. Campbell, we have to hold you back a year in school because you have failed to show progress in your ability to reason and understand logic. BiC

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Saying Goodbye to the Budgeting Mess[title] • Frank Atkins • [section]

By FRANk ATkINS

y early August the fall of Alison Redford was pretty much complete. The press virtually salivated on the transgressions that were revealed in the auditor general’s report. The phrase that seemed to really excite everybody was “the aura of power” that surrounded the premier’s office. It appears that many individuals feared some sort of retribution if they publicly or privately disagreed with the premier. Throughout this whole mess, it is hard to believe the Progressive Conservative (PC) mantra that this was Alison Redford’s problem, not the doing of the PC party.

Clearly, using taxpayer money for personal and partisan purposes is abhorrent behaviour, but I would like to think that the abuse of standard budgeting principles was one of the Redford administration’s biggest transgressions.

Saying Goodbye to the Budgeting Mess Clearly, using taxpayer money for personal and partisan purposes is abhorrent behaviour, but I would like to think that the abuse of standard budgeting principles was one of the Redford administration’s biggest transgressions. Prior to the Redford regime, we had a standard, straightforward and completely understandable reporting of the annual budget in Alberta, which I believe was first introduced when Jim Dinning was treasurer. Under Ms. Redford, and her treasurer, Doug Horner, reporting the budget numbers became extremely complicated and convoluted. I do not know if we will ever know who thought up the reporting procedures during the Redford regime, but in retrospect it appears that Mr. Horner may have either feared “the aura of power” or he actually thought this up himself, given the vigour with which he defended the procedure. And this was in spite of the fact that many people were publicly laughing at the claims that: 1) there was no budget deficit; and 2) the reporting procedure was straightforward. The important point is that in retrospect, given all that we have learned about how the Redford administration operated, it is quite possible to believe that the whole budget procedure was deliberately obfuscated to hide some unpleasant arithmetic. In Alberta, budget deficits present a political problem. The perception amongst the voters is that, if you are running a deficit, then you cannot handle the

16 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

province’s finances. The result may be that people will stop voting for you. Further, there has been justifiable pressure on successive PC administrations to save money in the Heritage Fund. So, why not invent a budgetary procedure where you hide the fact that you are not only running a deficit, but you are actually borrowing money on bond markets in order to put money into the Heritage Fund. In the eyes of the voters you then look prudent. You appear to be not only running a surplus, but you are controlling spending to the point where you have money left over to put into savings. It was a brilliant, but completely cynical, plan. Whoever takes over after the leadership vote in September will have to deal with a political problem and an economic problem. First, the PC party will have to distance itself from the transgressions of the Redford regime which the auditor general has placed front and centre in the minds of Albertans. Second, either the PCs or whoever wins the next Alberta election will have to undo the cynical budgeting mess, and return to straightforward budgeting procedures. BiC

FraNk atkINS IS aN aSSocIate proFeSSor oF ecoNoMIcS at the UNIVerSIty oF calGary, a SeNIor Fellow at the FroNtIer ceNtre For pUBlIc polIcy aNd a MeMBer oF the adVISory Board oF the INStItUte For pUBlIc Sector accoUNtaBIlIty.

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This and That • Lonnie Tate [title] • [section]

By Lonnie Tate

This and That

’m not given to repeating myself unless really driven to it. Recently, friends (and even strangers) have commented on three subjects that bring me to further comment.

Downtown madness

A friend (who had read my dis on downtown bicycle lane construction) commented: “You missed the thought that Calgary has nine months of winter, and three months of construction.” She is right. I have yet to find one person who thinks bicycle lanes are a good thing. On June 30, I made a driving mistake. Going to play golf north of the city, I drove across the downtown core. From 8th Street and 14th Avenue SW to Centre Street and Memorial Drive took 40 minutes. At every turn, traffic was at a standstill. Most intersections let one or two cars through per light change. Road construction was part of the problem; building construction was an even bigger problem. Neither are going to change in the next two or three years. All that work is good. But adding to the mess now by adding bicycle lanes is folly. And adding those lanes will ensure a permanent mess for the future. They say it will only cost $7.2 million to implement on a temporary basis (at a time when property taxes are skyrocketing). Incredible! To the lawmakers at city hall: “Give your heads a shake … reverse your bicycle lane decision!”

The ugly Canadian syndrome

At dinner a few days ago, another friend said: “The U.S.A. should let all Canadians visit for as long as they want. It will have a huge impact on their economy.” A lot of Canadians seem to think that we are the saviours of the U.S. economy. We are not! My wife and I maximize the time we can spend in the U.S. And if the rules change we might be there for a further four weeks a year. In our case, that is about $6,000 we would spend in the U.S. rather than in Canada. If there are 1,000,000 Canadians like us, then the U.S. economy would benefit by six billion dollars. That is chicken feed in the greater scheme of things (U.S. GDP is $16 trillion).

18 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

Try looking at it another way. Canadians are freeloaders, visiting and enjoying the benefits without bearing any of the costs associated with America. We just buy consumer goods and services. In my case, I work diligently to keep my taxable income in Canada and my affairs are such that I will not pay any U.S. estate tax on my death. I don’t know a person who doesn’t do the same … nor should they do anything different. But if you are honest with yourself, you know there are some Americans for whom “Those damn Canadians!” is a common expression. They think of us as freeloaders; and in some senses, we are. I also have Canadian acquaintances given to saying: “I pay property taxes in the U.S. and that is damn well enough.” From an American point of view, that will drive thoughts about those ugly Canadians … and that is unfortunate. So if you do get to visit the U.S., be a good guest and remember the “when in Rome rule.”

A bridge to nowhere

Sarah Palin doesn’t make my top 1,000 list. But she had at least one enlightened moment some years ago when she stopped construction of a major bridge project that was going nowhere. Some federal politician had pork-barrelled the project through Congress and Alaska would benefit from the investment in a perfectly useless project paid for by someone else. Let me turn your attention to our city’s public art program. As this is written, there are 16 projects for sculpture or art (I have much better descriptors) being pushed forward by council members and various “community-minded” citizens. My favourite is one to incorporate the old Centre Street Bridge lions (previously deemed unfit) in an art project for the western extension of the LRT. Now there is a lesson in how to mess up a well-designed, architecturally stimulating project. Stuff three, old, dilapidated, cast-concrete lions on the platforms. Fortunately, community leaders in the city’s west end understood the dilapidated lions are not art. Finally, some common sense in the public arts program. They deserve a medal! BiC

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off the top • News

Inaugural Peace Bridge Breakfast Raises $170,000

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The summer solstice marked the date of an inaugural breakfast event on Calgary’s Peace Bridge, raising over $170,000 for the Calgary Military Family Resource Centre. The brainchild of Calgary businessman, George Brookman, the event commemorated the 100th anniversary of the First World War and raised needed funds for military personnel and their families inflicted with the damages of war. Starting before sunrise, guests made their way along candlelit paths to their seats for the 5:00 a.m. breakfast celebration. In addition to a warm plate of sausages, pancakes and scrambled eggs supplied by Hotel Arts, participants were treated to a musical performance by Brett Kissel, watched a flyover by vintage First World War and Second World War military aircraft and listened to a poignant address by Canada’s retired general, Rick Hillier. All the events occurred with guests seated facing east to watch the sunrise from the covered and often-controversial Peace Bridge, ideally located at

28 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

George Brookman

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and iconic event. “Over 250 people attended – the maximum capacity of the bridge. Everyone got behind it and we had huge support.” Funds raised will benefit the Calgary Military Family Resource Centre (MFRC), a not-for-profit organization that provides essential front-line services to the families and members of the Canadian Forces, promoting all aspects of health and wellness, and assists with employment, education and community needs. As a result of the success, Brookman and his team are ready to do it all again next year on Saturday, June 20, 2015. Brookman has also heard that other municipalities around Canada are interested in holding a similar event. “I think it was a wonderful event,” says Brookman, who initially came

30 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

up with the idea from watching a fellow Calgarian display white crosses on Memorial Drive prior to Remembrance Day. “When we first started this, my goal was to raise $50,000. We raised $170,000 and really increased the profile of the MFRC so I am really pleased.” BiC

off the top • News

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Correction Notice:

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businessincalgary.com | BUSINESS IN CALGARY September 2014 • 31

RUN MARCh, SepTeMBeR

off the top • News

BUILDEX Calgary Celebrates 15 Years

Over 4,000 real estate, construction, renovation, property management, architecture and interior design professionals will convene at the BMO Centre at Stampede Park on November 5 and 6 for the 15th annual BUILDEX Calgary. With more than 225 exhibitors and over 35 CEU-accred-

ited professional seminars, BUILDEX has grown to be the city’s premier B2B event serving the real estate industry. This annual tradeshow and conference has everything for those working in the design, construction and management of real estate.

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32 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

off the top • News

For those working in the real estate sector in Calgary and the surrounding area, BUILDeX truly offers the most diverse and most industry relevant experience for attendees.

This year’s BUILDEX conference will once again include engaging and industry-relevant sessions ranging from an update on construction contract law to effective negotiation tactics; a review of new real estate projects to honing the RFP process. A highlight of this year’s 15th annual conference includes the construction keynote panel featuring members of the Calgary Construction Association, as well as a case-study presentation by Robyn Baxter, vice president of consulting at HOK’s Calgary office. Professional development sessions will cover topics such as preventing burnout and information on how to secure business with the federal government. Murray Frank, a senior building science specialist, Professor Tang Lee from the University of Calgary and Patricia Wilson, director of civil enforcement at Consolidated Civil Enforcement, are among this year’s featured speakers. With exhibit sales approaching the record levels of 2008 and the co-location of CIPHEX West (drawing over 1,500

more industry professionals), this year’s BUILDEX Calgary promises to provide exceptional opportunities for networking and engaging with Calgary’s dynamic real estate industry. Annual highlights also include the 400-plus construction professionals enjoying the Calgary Construction Association breakfast, plus the real estate market outlook for Calgary, the interior design keynote presentation and the industry meet-and-greet reception at the end of the first day. For those working in the real estate sector in Calgary and the surrounding area, BUILDEX truly offers the most diverse and most industry relevant experience for attendees. This must-attend event has been providing opportunities for those designing, building and managing real estate to connect with each year for 15 years. Learn more about exhibiting, sponsoring and how to register for seminars with BUILDEX Calgary online at www. buildexcalgary.com. BiC

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businessincalgary.com | BUSINESS IN CALGARY September 2014 • 33

danny hooper offers easy Money • News

Danny Hooper Offers Easy Money BY FAY FLETCHER

DB LA

or Danny Hooper, easy money isn’t about how much cash you can get to line your pockets. It’s about the many deserving charities that struggle to find funds. Hooper’s book, Easy Money, teaches these organizations how to get and maximize every dollar from their fundraising auctions events.

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34 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

danny hooper offers easy Money • News

“The cause of this problem is easy tently since 1987 is auctioneering to grasp. Most fundraising auction at charity events,” says Hooper. events are organized by well“Because benefit auctions are big meaning volunteers who simply business, generating more than don’t know everything they need $17 billion each year in the U.S. to know. They seldom follow best alone, fundraising auctioneering practices, and often lack the syshas become a highly-specialized tems, training, and management sector of the auction industry. that ensure success. I want to help In fact, the National Auctioneers improve this situation.” Association now offers a spe“He totally immersed himself cial accreditation known as BAS in the writing of this book,” says - Benefit Auctioneer Specialist. I Faye Ison, executive director of was the first in Canada to receive Danny Hooper Productions. “He’s the designation.” very dedicated.” Hooper has more than the pasDedicated fails to sum up sion he needed to write Easy Money. Hooper’s passion, enthusiasm and He has the experience as well. “As persistence. Those that know him my business has expanded in this describe him as larger than life. area, to the point where we’re now He’s the focal point and the energy involved in close to 100 fundraisFaye Ison, executive director of Danny Hooper Productions in every room he’s in and even ing auctions each year, I’ve come after he’s gone, that space is alive to realize that most events are with hope, life and possibilities. falling far short of their potential, Hooper has spent his lifetime inspiring, motivating and helpmeaning that a lot of money is being left on the table; money ing people all over the world. When he turned all that passion that non-profit organizations desperately need in these troutowards writing Easy Money, the results showed. bled times of continuing government cutbacks,” says Hooper.

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businessincalgary.com | BUSINESS IN CALGARY September 2014 • 35

danny hooper offers easy Money • News

“Considering the book was written for a niche market – non-profit organizations planning a fundraising auction – sales have been outstanding!” exclaims Hooper. “At present, the book is only available online through our website at www.dannyhooper.com, but we are currently in discussions with Chapters and other retailers. An electronic version will be available through Amazon later this year. As well, we have just launched a corporate book program, where discounted bulk purchases are made by companies who commonly receive requests for auction donations. Rather than just give an embroidered ball cap or coffee mug, these companies now include a copy of Easy Money. What do the readers of Easy Money learn? “Stop thinking like a charity and start thinking like a business,” educates Hooper. “Holding a fundraising auction event is like working an entire year to open a store that is only going to be open a few hours, then close for another year. While the doors to the store are open every minute has to count, and the focus needs to be on fundraising.” Hooper fully explains his “entertain, engage, extract” philosophy in Easy Money; a philosophy that recently helped him raise over $350,000 in 90 seconds for Sorrentino’s Compassion House. “There’s always more money in the room than you expect,” he counsels fundraisers. Easy Money teaches them how to find those hidden funds. Easy Money was developed simultaneously with Sym-

L - R: Girlfriend Brenda Shypitka, Danny Hooper, and his mother Lillian Hooper

phony Checklist Builder (www.symphonycb.com), a powerful and comprehensive online planning tool used to organize and execute fundraising auctions of all sizes. Both the book and the web-based app were launched in Edmonton in May 2014. The book launch had all hallmarks of Hooper’s personality. “The book isn’t a bestseller yet so we are serving hot dogs and wine,” he teased on the invitation. He wasn’t kidding. Guests enjoyed hot dogs with a myriad of toppings, fruit punch, wine and cake as they mingled in the lobby of

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36 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

danny hooper offers easy Money • News

Danny Hooper and Neil Tran of Leap Web Solutions

Thank you for your support!

the Royal Alberta Museum. Everyone loved the idea; the food was delicious. After guests had dined, they entered the auditorium where Hooper thanked the many people that had helped, inspired, and worked with him to get the book into print. He also pointed out the many philanthropists and personal mentors that were in the audience and introduced Neil Tran, the owner of Leap Web Design, which is the development company behind Symphony. Hooper’s quick wit and outstanding presentation had the audience alternately laughing and moved to tears several times during the course of the evening. Easy Money is a book no fundraising entity should be without. This book is more than how to have a profitable fundraiser. It’s about getting those funds that stand between the success and the failure of so many deserving charities. In this world where the focus is often on one’s own net worth, Easy Money opens the financial doors for the tireless men and women that spend countless hours championing the causes of those in need. There may be “no free lunch,” but thanks to Danny Hooper, there is Easy Money. What’s next? Danny will be conducting fundraising auction seminars later this year in Calgary, Saskatoon and Regina, with additional seminars being held across Canada in 2015. To stay current on these and other events, or to purchase a copy of Easy Money, visit www.dannyhooper.com. BiC

Your donations go a long way in supporting health care for our neighbours, families, and friends. Health care impacts us all, and together, we are building a healthier future for generations to come.

calgaryhealthtrust.ca businessincalgary.com | BUSINESS IN CALGARY September 2014 • 37

Size doesn’t Matter • Small Business Week Preview

Size

Doesn’t Matter Small Business Week encourages success

ne of the countless good things about contemporary business, especially in Calgary, is the dynamic of constant and interesting changes and updating. Business grows because it is forward-looking and relevant. For a long time, the dynamics of business growth and excitement were typically associated with “big business.” They built the brands. They had the exposure. They strategized. They grew the bottom lines. And they usually did “big things” and achieved “big success.” All that changed in 1979, when Canada’s Business Development and Investment Corporation (BDIC) launched Small Business Week (SBW) – a coast-to-coast celebration, and motivation, for Canadian entrepreneurs and small businesses to get recognition, encouragement and community exposure. Fast forward to 2014, when small and mid-size businesses – defined as having fewer than 100 employees – account for more than 95 per cent of all business activity in the province, and are a driving force of the economy with almost 30 per cent of our GDP.

Some Canadian areas embrace Small Business Week events more than others. By all indication and feedback, Calgary’s Small Business Week may be Canada’s best organized, most action-packed and gung-ho SBW event. The Calgary Chamber devotes about 11.5 months to planning, scheduling and arranging the year’s SBW focus and special events. Most importantly, the week (this year, from October 19-25) becomes a terrific chance for existing small businesses and future small businesses to learn and network about opportunities, risk management, problem solving and strategies for getting established, small business growth and success. Small Business Week has solidly become not only an annual opportunity but an annual tribute to the valuable contributions that small and medium-sized businesses make to Calgary’s (and Canada’s) economy. This is the second year for The Calgary Chamber, partnering with ATB Business, to host the www.SmallBusiness WeekCalgary.com website as a state-of-the-art source for

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Small Business Week Preview

Warehouses

Commercial

Retail

Hospitality

There is a new option for electricity all the information on Calgary’s Small Business Week. The Chamber organizes seminars, workshops, tradeshow expos, displays and valuable chances to socialize and shmooz with other small business types and Calgary business leaders. The two biggest events of Calgary’s Small Business Week have turned out to be the Trade Show Expo and the Small Business Week Awards presentation – both set for Thursday, October 23, 2014 at MacEwan Hall on the University of Calgary campus. Also on www.SmallBusinessWeek Calgary.com, the community in general and the business community play a role in acknowledging some “awardwinning” Calgary small businesses. Nominations are on right now for the Innovation Award, the Customer Service Award, the Community Involvement Award, the Environmental Stewardship Award, and the Breakout Business Award. The finalists will be on the website and open to the public for voting, October 1-20. All finalists are eligible for consideration to win the prestigious Small Business of the Year Award. Calgary is readying for the annual (October 19-25) Small Business Week – proof that when it comes to ingenuity, hard work and business success ... size really doesn’t matter. BiC

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businessincalgary.com | BUSINESS IN CALGARY September 2014 • 39

alberta’s Mighty Machines • Oil & Gas - Equipment

Heavy hauler truck. Photo courtesy of Caterpillar Inc.

Alberta’s Mighty Machines K

FILE SIZE: BLEED:

Prepared by: The past and present equipment that helped to Graphic Designer: oilsands history Dshape Alberta’s E BY NERISSA MCNAUGHTON

LEASING AT THE OF BUSINESS EXPERIENCE OUR EXPERTISE AND SPEED IN EQUIPMENT LEASING

MERCADOCAPITAL.COM 40 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

1.877.676.6966

lberta has always been a province rich in natural resources. While we’ve praised the value of oil, gas, coal, trees and the companies that harvest these valuable commodities, there is another industry star that deserves equal mention; several stars, in fact. These are the mighty machines that help drive the economy forward – and nowhere is this more evident than in the oilsands. “The story of the oilsands is that it was a bit of trial and error,” says Diana

alberta’s Mighty Machines • Oil & Gas - Equipment

Photo courtesy of Government of Alberta Oil Sands Discovery Centre

Moser, facility manager at the Government of Alberta owned and operated Oil Sands Discovery Centre. “In the early days, the idea was to remove bitumen, but the only equipment available was mining equipment.” Early oilsands machinery was based on mining equipment, and that is how mighty machines such as Cyrus, the bucketwheel excavator, came about. Cyrus was manufactured by the Bucyrus-Erie Company in South Milwaukee, Wisconsin and spent the first

years of its life helping with the dam construction in Los Banos, California. Great Canadian Oils Sands, (now Suncor Energy), purchased Cyrus in 1971. Just how mighty is this machine? Cyrus’ weight of 773,000 kilograms (850 tons) required 1.8 megawatts of power (equivalent to what is needed to power 600 homes) and needed a crew of three (bucketwheel operator, oiler and cable reel car operator) to run it. It stood six-storeys tall, had a wheel diameter of 9.15 metres, 10 1,913-litre capacity buckets and an 18.3-metre boom. Cyrus had a short lifespan in the field, but its story didn’t stop at retirement. Despite being donated to the Friends of the Oil Sands Discovery Centre in 1988, it took four years, $1 million, hundreds of volunteer hours and many donations to transport the oilsands artifact. “Disassembly of the machine began in January 1991. It took 11 weeks to break it into six massive pieces, which were transported on a 144-wheel, 45-metre-long trailer. Travel was done at night during the winter when the frozen roads could support the weight of the heavy loads. The machine was reconstructed in three months by a crew of Suncor employees using three huge cranes,” cites a document from the Government of Alberta Oil Sands Discovery Centre. Cyrus is now on display as one of Canada’s largest land-based artifacts. While humans don’t have any living dinosaurs to contend with, they have the next closest thing. Draglines were also a staple of the oilsands and they are the largest walking machines on the planet. Draglines weigh between 8,000 to 13,000 tons. For comparison, modern calculations of the apatosaurus (formerly known as the brontosaurus) weigh the dinosaur in at 15 to 25 tons. Syncrude used draglines in their early oilsands operations to scoop up the oilsands and dump it into a pile called a windrow. Those were big windrows; the dragline’s massive

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businessincalgary.com | BUSINESS IN CALGARY September 2014 • 41

alberta’s Mighty Machines • Oil & Gas - Equipment

Photo courtesy of Government of Alberta Oil Sands Discovery Centre

bucket was 68 cubic metres (89 cubic yards), which is about the size of a two-car garage. Despite their impressive size and weight, speed is not something draglines are known for. Big Muskie, one of the largest draglines ever built, clipped along on hydraulically-driven feet at a “brisk” 1/10 of a mile per hour. These “walkers” required days of advance planning and careful checks of ground conditions to walk them from one location

42 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

to another. Sinking or capsizing a dragline was a disastrous mistake, especially since it cost well over $100 million to replace one. Although bucketwheels and draglines are still in operation on mine sites around the world, by 2006 both were phased out of the oilsands. “The weather plus the products caused problems,” Moser explains. “Things just weren’t working.” Today, the oilsands are mined with trucks and shovels.

alberta’s Mighty Machines • Oil & Gas - Equipment

The Suncor Dinosaur

Once upon a time, tens of millions of years ago, when dinosaurs roamed the land where Suncor is now digging for black-gold bitumen, a very rare creature called an ankylosaur huffed, puffed and snorted while grazing on prehistoric vegetation. Fast-forward 112 million years to a bright but wintery March 21 morning, when Suncor shovel operator Shawn Funk was having a typical day at work, excavating the 12-metre-thick overburden (the layer of topsoil covering the rich oilsands) at the Millennium mine, just six miles from Fort McMurray. While smoothly manoeuvring the levers and controls of his excavator, as he did every morning, he looked straight ahead and paused to take a second look. After a while, the giant walls of soil tend to look the same but this time he thought he saw something different. A gentle nudge with the bucket of his machine sent an unusuallooking big rock rolling down the mountain of soil. Funk radioed his supervisor. They went closer, stood looking down at it and crouched down to get a closer look. Both men agreed it was time to call in experts. Dr. Donald Henderson is curator of dinosaurs at the legendary Royal Tyrrell Museum in Drumheller. Suncor’s Millennium crew and the Fort

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Dr. Donald Henderson with the ankylosaur fossil

McMurray office were intrigued enough that, the next morning, Suncor flew in the world-famous archeologist for his expert opinion. The mammoth and intensive onsite work never stops and, because the Historical Resources Act imposes an immediate “do no further harm” shutdown of land where there is likely fossil material, Funk simply moved his giant shovel about 200 metres down, and kept scooping away the overburden. “The rocks in that area are about 200 million years old but Suncor obviously thought this was special enough for us take a closer look,” says the knowledgeable and fascinating Dr. Henderson. “It’s not uncommon to find sea animal and marine reptile fossils but I knew right away that this was special. ‘The rock’ was longer than usual and judging from the shape and the unusually many bones – all the normal bones as well as bones in the skin and even bony eyelids – I suspected that it could be a truly rare ankylosaur – an armoured dinosaur, maybe six metres long, that lived in the area about 112 million years ago.” The treasure was delicately covered, crated and shipped off to the Royal Tyrrell Museum lab, where, behind a large glass viewing window, Dr. Henderson and his technicians painstakingly continue their investigation, preservation and study. “It will be about three years until it’s ready for display,” Dr. Henderson explains. But why rush it? It lay in the ground for 100 million years. It can wait a bit longer. “We are thrilled. It is so delicate but so well preserved. We’re already getting interest from the U.S. and England. It could be the best armoured dinosaur fossil in the world.” ... and a workday that Shawn Funk will never forget.

Jeff, Leadership Development

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businessincalgary.com | BUSINESS IN CALGARY September 2014 • 43

alberta’s Mighty Machines • Oil & Gas - Equipment

“As the pioneer of Canada’s oilsands, technology development has always been fundamental to how Suncor does business,” says Erin Rees, a spokesperson with Suncor. “Suncor invests in technology that targets increased production and profitability while reducing environmental footprint – this was the case with the draglines and bucketwheels. In 1992 Suncor phased out the original bucketwheel operation and introduced the truck and shovel method due to a number of reasons – one of which was that, back then, for every two hours of operations the conveyor belts required one hour of maintenance. That’s one of the reasons why it was so costly to produce a barrel of oil from the oilsands in the past.” Currently, Suncor has over 125 trucks in their fleet at their oilsands base plant. These heavy haulers are assembled at their supplier’s locations in Fort McMurray and arrive at the plant ready for work. While trucks and shovels are smaller than early oilsands mining equipment, they are still very impressive machines. Javier A. Llano is the large mining trucks commercial manager at Caterpillar Inc. To provide an example of just how big these trucks are, he shared some statistics about their truck model 797F. The 797F stands over 20-feet tall, is 49-feet long and 32-feet wide. The tires, 56/80R63, are over 13-feet high. The normal load capacity of the 797F is 363 metric tons and the fuel tank holds 3,785 litres. Smaller, faster and incredibly powerful – that is the theme when it comes to oilsands mining equipment; so what’s next in our world of mighty machines? One option under exploration is automated trucks.

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44 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

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alberta’s Mighty Machines • Oil & Gas - Equipment

Alberta’s oilsands have always been a place for innovative technology, and as we continue to develop more efficient and ecological-friendly ways to mine our resources, we will continue to invent and perfect the machines that are so instrumental to our economy’s success.

Photo courtesy of Government of Alberta Oil Sands Discovery Centre

“We are still in the very early phases of evaluating autonomous haulage systems (AHS),” says Rees, “so it’s too early to say. There are still a lot of steps we need to go through before we even consider integrating this technology into our existing fleet. Right now, we are continuing with our engineering tests, the first of several steps required to determine if AHS will work for Suncor. Over the course of a year, these tests will determine if the equipment can work in our weather and operating conditions.” Alberta’s oilsands have always been a place for innovative technology, and as we continue to develop more efficient and ecological-friendly ways to mine our resources, we will continue to invent and perfect the machines that are so instrumental to our economy’s success. BiC

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businessincalgary.com | BUSINESS IN CALGARY September 2014 • 45

collective Vision • Cover

Publisher’s Note This article was inspired by Simon O’Byrne, a professional urban planner and designer with Stantec, as a result of a speech he gave at the Leaders of Tomorrow awards gala that Business in Calgary and Business in Edmonton organize each year. O’Byrne’s talk went back to the early days of Chicago when a group of businessmen realized that the greatness of Chicago would determine the greatness of their business. “As goes Chicago, so goes our business.” With this in mind they created a long-term “collective vision” that has made Chicago America’s third largest city for no apparent reason. By all accounts, they are punching well above their weight. In fact, one account of why Chicago is named the Windy City is not because of weather but because of the enthusiasm with which its city leaders extolled its virtues. The name came from competing cities that were sick of hearing how great the city was. So here we sit, Calgary is a city of just over a million people. Somewhat comparable to the size of Chicago all those years ago. The real question is: will we be a great world-class city or will we continue to fill the dailies with fights between industry and our city politicians; will we dedicate pages to bicycle paths or will we get on with a collective vison, a plan that will make our city great? The beauty of the Chicago story is that it was created by business people who were fully invested and had everything to lose or gain by the building of a great city. There was little room for civil servants who may have a new job next year or frankly for politicians whose long-term vision is fighting for their next term. So that is the intent of this article … to create discussion from the people with a long-term vested interest in what our city should look like. To engage those who care about our city and not about a job. We hope that we have achieved this and that you will engage in this discussion, in our city.

BY JOHN HARDY

espite the various stats and trends about Calgary as a magnet for migration, the popular reputation that Calgary is the place to be, Canada’s most booming city and even considering rave reviews like the recent MoneySense magazine survey (which rates Canadian cities on criteria like quality of life, standard of living, high incomes, lots of jobs and low unemployment) ranking Calgary as undisputed No. 1 for best overall city, best large city and best place to raise children – Calgary has issues. There’s a stealth but festering consensus among developers, urban planners, real estate analysts, academics, the city and, most importantly, Calgary homebuyer consumers. Depending on who you listen to, living in Calgary is becoming, or has become, a problem. Some even go as far as to warn about an urgent problem of an out-of-whack municipal planning strategy, running out of approved land for residential development, artificially overpriced property values, no choice and unaffordable homes. businessincalgary.com | BUSINESS IN CALGARY September 2014 • 47

collective Vision • Cover

Donna K. Moore, chief executive officer, CHBA – Calgary Region

Jay Westman, chairman and CEO of Jayman MasterBuilt

Calgary’s problem is compounded by intense competition from increasingly popular, short-commute suburbs to the south, east, north and west. The reasons, the causes, the talking points, the arguments and the possible solutions are many. They are also matters of opinion and sometimes touchy topics for agreeing to disagree. But there is a generalized and unanimously accepted bottom line. “About 30,000 people come to Calgary every year,” says Donna K. Moore, the terrifically knowledgeable dynamo of positivity and CEO of the Canadian Home Builders’ Association (CHBA), Calgary Region. “Jobs are one of the main reasons why they are coming. Those potential employees need affordable choices when it comes to homes. We must ensure they have all the choices to keep them here. As simple, as complicated and as urgent as that.” Why mince words? Some Calgary insiders have opinions on the subject but don’t want to be either implicated or the ricochet of a spitting match with city hall. So they opt to lay low and fly under the radar. Others don’t. They are speaking out, not so much AGAINST city hall as much as FOR Calgary. Some with objective and harmlessly professional expertise. Others, maybe subjectively and with bias, but with sound business sense and genuine Calgary concern. “They’re not making any more land!” roars mega-successful Calgary business leader, second-generation Calgary builder and passionate Calgary-booster Jay Westman, CEO of Jayman MasterBuilt. “I don’t want to make it sound simple, because it’s not. We’re headed for a Calgary crisis. We’re running out of serviceable approved land, there is very limited choice and unaffordable housing.” Economists, local developers and other number crunchers share Westman’s dire warning that Calgary’s housing market – 48 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

Simon O’Byrne, vice president, urban planning, with Stantec

which has a documented ripple-effect through most sectors of Calgary life and business – is dangerously out of balance. Perhaps even threatening the long-term and positive momentum of Calgary’s boom. According to recent CHBA stats, even though there were fewer new homes built in Calgary last year, Calgarians invested $6.1 billion in new homes and renovations. Undisputedly, the building and development industry is a major cog in Calgary’s economic engine. Aside from the clichéd domino and spinoff effects of everything from mortgages, utilities and furniture to fridges and stoves, groceries and property taxes, the facts and figures show that new home construction provided 42,600 Calgary jobs and area builders and developers are one of the largest Calgary employers, paying out some $2.7 billion in wages. “It’s undisputable and documented,” Moore emphasizes. “Housing choice and affordability play a huge role, not only in Calgary’s future prosperity but Calgary’s ability to attract population growth to ensure the city’s continuing strength and success.” There is wide acceptance and respect for the basic business logic that the municipality must generate revenue to fund services and the constantly ballooning costs of infrastructure. But the Calgary problem, and the time-sensitive standoff, is not so much about the city’s money. According to most perspectives, accusations, arguments and well-intentioned points of view, the problem stems from a clash of contemporary consumer trends versus municipal ideology and strategy. A standoff about the supply-anddemand use of land that Calgary developers are pushing for versus the use that is consistent with the city’s ideology and planning strategy. “Calgary desperately needs to create urban vibrancy,” says urban planning savvy Simon O’Byrne, vice president, urban planning, with Stantec. “Urban vibrancy doesn’t just mean an exciting downtown where people come to work. It must

Know and Manage Your Risks to Protect Your Profit Margins By David Yager, MNP LLP ADVERTISEMENT

The oilfield services (OFS) industry has a number of risks that require management to improve profits and valuations. Being realistic about margins with thorough job costing and monitoring day-to-day operations and can help protect profits and increase security. In the restaurant business they call it “leakage”. What that really means is theft. OFS managers have had to deal with fuel theft for decades. Stealing fuel is an occupational hazard when field operations personnel drive company vehicles equipped with credit cards. Managers struggle to ensure fuel, automotive accessories and everything else purchased at gas stations is for company use. Even managers aware of the problem are frustrated by their ability to eliminate it, particularly when labour markets are tight. Managers can protect profits by starting with clear “zero tolerance” HR policies and the consequences of violating them. The right accounting, purchasing and monitoring activities can help them achieve tight job costing, monitored mileage logs and restrict fleet cards. Another growing problem is information theft. Everything is digitalized, from proprietary operations protocols and procedures, customer contacts and price lists to confidential financial information. Having this data leave the company for the wrong reason is economically damaging. It is increasingly difficult to monitor and prevent with the near universal proliferation of personal electronic devices. IT systems to control to monitor activity and detect violations are key. Data protection requires investing in secure and robust IT systems that track activity and restrict access to the most sensitive information to the fewest people possible. Other risk arises from a mistake in perception—the default of many in OFS sales and operations is to confuse activity with success. But having personnel who are working hard, burning diesel and putting in long hours doesn’t necessarily translate to profits. Without understanding and controlling variable expenses on job costs and field margins, operators may be taking operational risks without earning an adequate profit in return.

Successful organizations analyze variable field operating costs to ensure that an adequate direct profit margin exists before the job is sold. Major expenses are labour, subsistence, travel, fuel, thirdparty rentals and expendables. Gross profit from operations must also cover equipment repair and maintenance, service locations, field operations support staff and head office administration. Then there’s cash required for equipment replacement, debt servicing and— if all the work is priced right—next up is taxes. Operators can ensure adequate field margins with two approaches. First, equip sales and operations with job cost templates and basic financial training so that when OFS quote or bid, there is an adequate field margin built into the price. That way, if operators lose the work on price because it costs more to do the work than they will invoice, margins are protected. Second, prepare timely and accurate internal monthly financial statements that include gross field margins in meaningful detail. Review them with sales and operations to ensure progress and success. The reports will reveal the accuracy of pricing models and flag unplanned expense increases. Then the company can make the appropriate corrections on a month-by-month basis. Using this tool, operators can have a bad month or two and still salvage the year. Remember, the goal is more profits, not more practice. The OFS industry has a lot of moving parts on every job every day. Tight internal controls for job pricing and field margins will help increase profits and implementing and maintaining controls around fuel and IT systems can reduce non-operational risks. To find out more about how MNP’s Oilfield Services team can benefit you, contact David Yager, National Leader, Oilfield Services at 403.648.4188 or david.yager@mnp.ca

collective Vision • Cover

be a balance of a vibrant community where people live, go to school, go shopping and enjoy their life. “Look around! There’s lots of land in Calgary. That’s not the problem. The issue is what use of that land will the city approve? Of course we must use the land efficiently and consider vital aspects like sustainability, the environment and public transit. But the Canadian dream is still home ownership,” he says. “Calgary is growing. There is a definite demand for family-oriented housing, walkable streets, backyards, a barbecue and a place for the dog to go. If they can’t get it in Calgary, they will drive out of town until they find what they are looking for. “Calgary puts way too much focus on regulating land use, instead of the form of development that’s best to achieve urban vibrancy,” O’Byrne suggests. “Calgary needs to be an inclusionary city, designed not only for oil executives but teachers, firefighters, accountants, nurses and truck drivers.” Greg Morrow, assistant professor of urban design and planning at the University of Calgary, is experienced, impartial and objective. “This is such a terrific city, with so much growth and so much potential. The problem is not irresolvable. It takes will and dealing with what people want, not what politicians think they should have.

Greg Morrow, assistant professor, urban design and planning, at the University of Calgary

“Zoning is one of Calgary’s most glaring issues,” he cautions. “The logistics of urban planning is full of buzzwords but, for now, Calgary seems stuck with dated ‘use-based zoning’ instead of the more effective and contemporary ‘form-based zoning.’” He outlines that innovative planning requires innovative zoning. “Calgary’s urgent challenge is choice and affordability. How to spark more homes in already built-up, transit-accessible areas by allowing a variety of housing types to supply the heavy demand. “From the city’s perspective, it’s revenue-driven. And that’s valid. It’s necessary and it’s their mandate,” he concedes. “But when there is more land not generating revenue than does, there is a structural imbalance. Calgary is dangerously close to this situation, if not already there.” Morrow is among a growing chorus of Calgary-savvy professionals and business types who are frustrated that, when it comes to managing Calgary’s robust growth, the city has confused priorities, is out of touch and missing (or stubbornly ignoring) reality, population and lifestyle trending while clinging to well-intentioned but impractical ideology. Rollin Stanley, general manager of planning, development and assessment for the City of Calgary, doesn’t agree and sometimes shows telltale exasperation at criticism about the city’s planning strategy being a problem.

Rollin Stanley, general manager of planning, development and assessment for the City of Calgary

50 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

Alan Norris, president and CEO of Brookfield Residential Properties

Photo by Ewan Nicholson Photo Video

collective Vision • Cover

He explains that municipalities are required to have a Municipal Development Plan (MDP) and refers to Plan It Calgary, an opus planning document passed by council in 2009. It integrated Calgary’s MDP with the Calgary Transportation Plan (CTP), charting how Calgary will evolve, develop and adjust to accommodate about 1.5 million more people in the next 60 years. The Calgary master plan is enormously detailed and complex. It is laced with many sustainability and environment-driven goals and targets. While it does include some single-family, inner-city suburb subdivisions, the prime focus is overwhelmingly on rapid-transit expansion and high-density development, especially near LRT stations. “We’re right on track and our growth strategy is one of the best in North America,” Stanley insists with confidence. “We have tied the land use plan to the transportation plan and it makes a lot of sense. It links how we intend to grow, with our ability to pay for infrastructure and operating costs. “Of course it’s also a matter of tax revenues, because our sole revenue is from property taxes. And density is the way to go.” He defends the lightning rod planning strategy of “building up” (highrises) instead of “building out” (singlefamily homes). “A 210-unit, downtown condo uses 55 metres of frontage and generates a significant revenue stream for the city. By comparison, single-family units with the same frontage generate limited revenue. It’s one of the reasons why we target land development to have higher densities.” Alan Norris, one of Calgary’s most respected business leaders and president and CEO of Brookfield Residential Properties, also suspects that the city’s original planning strategy has triggered time-sensitive problems about the future growth of Calgary. “When Plan It was introduced, targeting the 60-year intensification of the city, developers and builders were initially concerned but supportive, because it would be implemented over time. For some reason, the plan is suddenly in overdrive. There seems to be an urgency to do it by tomorrow, and it is definitely leading to a serious constraint on approved land.” Brookfield is a successful, giant developer doing business in some 15 markets throughout North America, so Norris can easily compare apples to apples when it comes to the efficient planning strategy and development of other, similar markets.

“Calgary’s housing market is dangerously out of balance, and getting worse,” says a passionate but angry Jay Westman. “Of course my thoughts are suspect because I am a successful builder. But it’s absolutely not about me or my business. I’m a second-generation builder and I love Calgary. “This is about living in Calgary! The city’s plan to manage growth by reversing the established, free-market-based demand of 70 per cent single-family and 30 per cent multi-family for the sake of high-density intensification of existing communities, might have been well intentioned, but the facts and figures show that it is a disaster. It’s simply not what contemporary families want.” Westman insists that Calgary’s restrictive land use policies are limiting choice and making home buying in Calgary virtually unaffordable. He cites recent stats that show the price of Calgary resale homes inflating at double-digit rates with bidding wars and many listings getting multiple offers. He mentions a 29-foot-wide Inglewood lot costing $384,000. A 40-foot-wide West Hillhurst lot at $675,000. And cringes about several Calgary communities closing in on $1 million, just for the lot! “It all traces back to the availability and the price of land. It’s a documented fact. Over the last 10 years, the cost of Calgary lots has more than doubled.” Other Calgary business insiders underscore the situation being not so much about the fate of builders and developers, as much as about the growth and economic future of Calgary. Recent stats show that only about 30 per cent of working people in Calgary work “downtown.” For the 70 per cent who don’t, high-density Calgary may not be the dream. The burbs continue as extremely popular Calgary alternatives. With limited and unaffordable Calgary choices, newcomer families and businesses will opt for other neighbourhoods offering choice and affordability, and the business of living in Calgary will invariably suffer. “It’s time to enact a balanced growth policy that supports both intensification and suburban development,” Westman pleads. “Hey! This is a made-in-Calgary problem that needs a made-in-Calgary solution.” Focused and upbeat Donna Moore agrees. “The only solution is to collaboratively work together. We must identify and deal with the issues that are interfering with Calgary choices and affordability. And how can we make it work – for everybody?” BiC businessincalgary.com | BUSINESS IN CALGARY September 2014 • 51

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≠lberta’s Sick-Care System • Corporate Fitness & Health A [title]

Alberta’s Sick-Care System A bad case of confused priorities

BY JOHN HARDY

comprehension but suggests that the current system is aimed ontrary to some people’s insatiable appetite for quick at treating people after they become sick. It makes illness and fixes, gimmicks, third-hand misinformation, denials disease a growth industry. and assumptions, there is a huge chasm of difference There has been no official argument or rebuttal to the between sickness and health. study and report he co-authored – Can We Avoid A Sick FisPublic health, corporate health and occupational health cal Future? The Non-Sustainability of Health-Care Spending just happen to be in the eye of the storm. With Aging Populations – and his findings that the solution It’s not so much about a naive and simplistic overdose of to Canada’s healthcare woes is not to increase facilities and fried foods, sugar, salt, obesity, blood pressure, cholesterol physicians but to focus on preventative and hospital wait times. medicine and good health promotion. Despite the hard work and best The report also illustrates that a sysintentioned efforts of health officials, tem which offers lifestyle counselling, the real glaring public health problem dietary supplements and dental services may be Canadian attitude and a bad for people vulnerable to poor health is case of confused priorities. far less expensive than treating people Herb Emery, a sharp, focused and noonce they become sick. nonsense researcher at the University of Despite familiar, unarguable and defenCalgary’s School of Public Policy, received sive contentions that doctors, nurses, a lot of attention, ruffled some feathhealthcare professionals and hospitals ers and has many heads nodding with are already strapped for time, funding his daring diagnosis that Canada should and facilities while committed to treating adjust its health care and prioritize people patients who need help, there is unanibefore they become sick, instead of the mous agreement that his unconditionally billions of dollars, the professional time well-intentioned and logical proposals are and the effort devoted to treating them, a classic David and (extra giant) Goliath after the fact. situation and that the current healthcare He concedes that the system, the dolsystem is impossible to control, let alone lar values and the numbers are way too Herb Emery, researcher at the U of C’s School of Public Policy refocus. enormous (and meaningless) for normal

54 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

WE INSPIRE YOU TO GET ACTIVE

Alberta’s Sick-Care System • Corporate Fitness & Health

Of course Emery’s findings and conclusions fit every provincial health program. Alberta is one good example of the enormity of a taxpayer-funded program mostly preoccupied not with health as much as treating sickness. Alberta Health Services (AHS) and the Alberta Health Care Insurance Plan (AHCIP) is an $18-billion price tag and an army of more than 104,000 employees, 17,600 volunteers and 8,400 physicians, in thousands of private practice offices and clinics, 100 acute care hospitals, five stand-alone psychiatric facilities, 8,230 acute care beds, 22,533 continuing care beds, 202 community palliative and hospice beds, and 2,327 addiction and mental health beds – most overworked and usually overbooked with the tough job of, not necessarily delivering health as much as looking after mostly sick people. The Calgary-based researcher says a possible solution to Alberta’s (and Canada’s) sick-care machine is not to increase facilities and physicians but to concentrate on preventative medicine, good health promotion and setting up a system that provides lifestyle counselling, dietary supplements and dental services for people vulnerable to poor health. The report says that the annual tab for a Canadian in poor health is about $10,000 more than for someone in moderately good health. “It’s far less time consuming or expensive than ’round the clock treating people once they are sick,” he told Business in Calgary. “It’s documented. About 25 per cent of all health-

Shannon Jacobi, occupational health nurse and president-elect of the Alberta Occupational Health Nurses Association

56 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

care spending is avoidable by avoiding disease. The greatest health advancement is stop smoking, and other common lifestyle-triggered diseases like obesity, diseases like diabetes and many cancers. “A lot of the causes of many contemporary diseases are undisputedly proven as environmental. Cancer versus pesticides. Diabetes versus sugar levels in foods and supermarket choices. “Obesity was first warned about in the ’70s. In the ’90s it was common knowledge that people were getting bigger. Suddenly obesity is an epidemic, with all kinds of side-effects from diabetes to various cancers, heart disease and strokes, and some people are wondering how come? What happened? “Many people cause their sicknesses and the system lets them live in denial.” A recent Canadian Medical Association survey of 8,000 people based mostly in Ontario, overwhelmingly determined that a large share of “sickness” was a consequence of four common lifestyle behaviours: smoking, poor diet, excess drinking and lack of physical activity. People with the unhealthiest behaviour spent 280 per cent more days in hospital than people at the other end of the behaviour spectrum. The survey’s example? A 54-year-old with the unhealthiest behaviours in all four categories spent as much time in hospital as a 74-year-old with none of the risks. Smoking had the biggest influence on hospital days of all four behaviours, followed by physical inactivity, poor diet and excess drinking. Shannon Jacobi knows better than most healthcare professionals, researchers or critics about the good and could-be-better of Alberta’s public health situation. She is experienced, dedicated and straight shooting, working on the front lines as an occupational health nurse, as well as being the president-elect of the Alberta Occupational Health Nurses Association (AOHNA.) “Occupational Health nurses are a unique subset of public health,” she explains. “We promote healthy working environments, protect the health of workers, and prevent occupational injuries and illnesses. We deal with anything that is a common or public health issue, and, as a rule, we do a lot of our health issue consultation, when possible, as preventative. “But our primary focus is any health issue – risks, safety hazards, hypertension, diabetes, obesity, chemicals, mental health or drug use – that can or has impacted the individual, other workers or the employer.”

Alberta’s Sick-Care System • Corporate Fitness & Health

“A relatively recent fact of public health life is that, unfortunately, chronic diseases are more prevalent than ever. And the cost on the economy is substantial. The challenge is managing and preventing it. And a sound formula for keeping people healthy is prevention. -Ian Culbert, executive director of CPHA Ian Culbert, executive director of the Canadian Public Health Association

Jacobi is superbly professional with unique and personable people skills. On a job site, in a camp, on a chaotic factory floor, hopping into the cab of a 24-cylinder, giant “797” truck or in the mud and dirt near the rig in an oilfield, she routinely combats denial and attitude. “For some people at work, it’s easier to generate worry about the very rare chances of toxic gases or chemicals than thinking about the real effects of a 30-year exposure to too much fat, too much sugar and too much salt.” She makes a point of not preaching but emphasizes the logical connection between sickness and the workplace. “If you’re a diabetic and have hypoglycaemia and you work as a crane operator, you can and, God forbid, may cause as much damage to yourself and to others on the job, as if you were a drunk crane operator. “If you know your blood pressure is way too high, you have a high risk of a stroke. Don’t drive heavy equipment.” Without biases, motives or scare tactics, Ian Culbert, executive director of the Canadian Public Health Association (CPHA), has some cautionary facts and well-intentioned warnings. “A relatively recent fact of public health life is that, unfortunately, chronic diseases are more prevalent than ever. And the cost on the economy is substantial. The challenge is managing and preventing it. And a sound formula for keeping people healthy is prevention. “Another fact of life? It’s so much easier said than done,” he grins and shrugs. Culbert is among a surging group of public health experts who don’t want to lay blame or recite guilt trips, but he has the expertise to grasp the healthcare system as 58 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

a multibillion-dollar business with very few checks, balances and accountability. Of course it is patient driven but, as Herb Emery suggested in the Calgary report, the system has confused priorities. “We really don’t have a healthcare system. It’s sickness care. We are mostly investing in just fixing people who are broken. “In the meantime, obesity, diabetes, heart disease, asthma and cancer rates are rising. The cost to the economy of arthritis and osteoporosis is staggering. We have been conditioned. It’s mistaken as a Canadian right. If you’re sick, the doctor will make you better – for the moment,” he says, shaking his head. “Such a shame! Only about five to seven per cent of health-care funding is spent on keeping people healthy. Ninety-five per cent is spent on treating the sick.” Whether this generation of Canadian healthcare “sponsors” will or won’t get the message that health prevents sickness and that they are ultimately “driving the bus,” Shannon Jacobi’s crane operator will still climb the endless ladder up to his perch in the cab of his crane and take his chances, not really worried about his “mild” diabetes, his excess bulk and his high blood pressure. The basic “business” of health care is that Canada will have more taxpayers retiring and leaving the workforce with less taxpayers entering it. With less taxpayers to contribute to the publicly funded healthcare system, the funding gap will continue to grow, wait times will get longer and services will be harder to access. The scary thought becomes even more frightening when we consider that the cost of health care will double and likely triple as not only the boomers but the gen-Xers and millennials age. BiC

No Vacancy! • Commercial Real Estate

Tanger Outlets at Calloway Park. Photos courtesy of Brown & Associates Planning Group

No Vacancy! Calgary’s commercial real estate market |

ooking for retail space to lease in Calgary? Good luck. “We’re in a sustained period of expansion and growth,” says Michael Kehoe, who puts the vacancy rate across Calgary at less than one per cent, making it challenging to find locations for clients. The retail specialist with Fairfield Commercial Real Estate has monitored the city’s marketplace for 35 years and says he’s swamped with the demand. If a location becomes available for lease, the pressure is on to snap it up immediately, even at premium prices. Rent per square foot spans from $40 in the central business district to $26 in southeast Calgary. Retail is playing catch-up with a population that has grown by 300,000 people in the last 10 years. To the non-professional eye, the first clue is the decided lack of empty storefronts around the city. But behind the scenes, 12-15 new shopping centres are either in development or under construction, including Tanger Outlets at Calloway Park, McCall Landing and Sage Hill, the latter two both weighing in with a million square feet of leasable retail space. “It’s driven by consumer demands,” says Kehoe. “We have suburban expansion, we have immigration of new citizens arriving and we have population growth.”

BY TIFFANY BURNS

This spring, Chinook Centre made the top 10 list for most productive malls in North America. The first Nordstrom in Canada, opening this month, is expected to help cement that ranking as a proven anchor tenant. But it’s not just Chinook. Malls across the city are teeming with shoppers with heavy wallets, making our city a magnet for new retailers coming to market. “There’s nothing else like it in Canada,” says Kehoe. “Calgary’s a bright spot in North America. Retailers and food tenants look to this market to set up shop because the economy’s so vibrant here.”

“There’s nothing else like it in Canada. Calgary’s a bright spot in North America. Retailers and food tenants look to this market to set up shop because the economy’s so vibrant here.” ~ Michael Kehoe

Michael Kehoe, Fairfield Commercial Real Estate businessincalgary.com | BUSINESS IN CALGARY September 2014 • 59

No Vacancy! • Commercial Real Estate

Britannia Crossing currently under construction.

Rendering of Britannia Crossing. Above photos courtesy of OPUS.

The total amount of office space under construction across the city has doubled from just one year ago.

Each month seems to bring another announcement of a familiar American retail experience bringing their first store to Calgary. Giving a boost to Deerfoot Mall, Cabela’s Incorporated, the giant American outfitter of hunting, fishing and outdoor gear, plans to open its first Calgary store in the fall of 2015. The addition will help propel the centre’s rebirth as Deerfoot City, an open-air shopping mecca with an extra 500,000 square feet of retail temptation. Meanwhile, fashion retailer Marshalls has secured its first Calgary location in the Kingsland Village plaza on Macleod Trail South. TD Economics predicts that Alberta will lead the country with an average sales growth of 6.5 per cent this year. Will the momentum keep going in 2015? Kehoe is as bullish as a cowboy at Stampede. “I don’t see any end in sight. Calgary is the head office capital for Western Canada. The oil and gas sector is doing very well. We ride on its coat-tails in the retail sector.” The developers behind a flurry of new professional com60 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

plex projects appear to agree. The total amount of office space under construction across the city has doubled from just one year ago. New projects that have already broken ground in 2014 include 75 Crowfoot, Fountain Park, Place 10 and The Odeon, with construction on 11th Avenue Place and Britannia Crossing well under way. According to a report by Avison Young, it adds up to nearly seven million square feet of inventory being built. Compared to other major Canadian cities, Calgary already has a massive amount of office space per capita: almost 40 million square feet of office space in the downtown core for roughly 1.2 million in population. That’s not counting the 17 million square feet of office space in the burbs. With headlines blaring this summer about the hotbed of office construction in Cowtown, tongues began to wag. Would we soon be facing a glut? Did developers bite off more than Calgary can chew? In general, current office vacancy rates are hovering above eight per cent, the equi-

No Vacancy! • Commercial Real Estate

librium zone for landlords and tenants. It’s a far cry from the spring of 2008, when you’d have a better chance at finding a four-leaved clover than office space – vacancy rates were below one per cent. According to Greg Kwong, executive vice-president and regional managing director for CBRE Limited in Calgary, we’ve heard this kind of talk before. In 2013, after construction was proposed on eight office towers (if developers could find lead tenants) pundits forecasted that Calgary would be awash in excess space. “That was the biggest concern,” says Kwong. “Can Calgary absorb all this vacant office space?” However, in the downtown core, only three office buildGreg Kwong, CBRE Limited ings were actually under construction this year. Eighth Avenue Place completed their second tower in the spring. City Centre is due to be finished late this year or early 2015. Brookfield Place, on the site of the old Herald Building, won’t be ready for occupancy until 2018. “We don’t have this massive flood of new supply coming in.”

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Which is why, if you need to lease an office in downtown Calgary, it will cost you. Top-tier space in the Plus 15 is currently hovering in the low $40s or high $30s per square foot – about the same as Toronto, and more than Vancouver. That’s just net rent. Operating costs like electricity, water and cleaning can add up to another $20 per square foot in a highly desired address like Bankers Hall. In A and AA buildings, vacancy is much lower than the citywide general rate: roughly three per cent. For AA alone, some have put availability at an even scarcer .92 per cent. Still, Kwong says not to expect a large corporate departure from the downtown oilpatch. “When Imperial Oil announced they were moving out of the core, everyone thought, oh God, it’s going to be a mass exodus, all these major oil firms are going to leave – well, nobody other than Imperial has moved out.” Even though the oil and gas sector held off taking new leases and expanding their offices in 2013 and early 2014, Kwong says they’re still the driver of Calgary’s economy.

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businessincalgary.com | BUSINESS IN CALGARY September 2014 • 61

No Vacancy! • Commercial Real Estate

Place 10. Photo courtesy of Centron

Two new projects under construction will bring even more office space to the neighborhood: 11th Avenue Place and the east tower of Place 10, although they’re not expected to be finished until late 2015 and 2017 respectively.

“They weren’t gobbling up space like they were the previous year. Having said that, this year we’ve got close to a million square feet of office space being absorbed.” If you haven’t dipped your toes into the downtown commercial office market and you’re considering it, now is a good time – especially if you’re willing to move into a B or C quality building. Avison Young’s report says many landlords of older buildings are considering renovations and upgrades to help them compete for tenants. Or you could cross the railroad tracks to the beltline, where office vacancy rates are higher – 10.4 per cent at the end of the second quarter of 2014. It’s become a growing contender over the last eight years, with approximately

62 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

eight million square feet of professional space mushrooming up in the area just south of the downtown core. Two new projects under construction will bring even more office space to the neighborhood: 11th Avenue Place and the east tower of Place 10, although they’re not expected to be finished until late 2015 and 2017 respectively. Will the West still be best for commercial real estate in the coming year? With our robust economy, Kwong believes the answer is yes. “As long as the economy’s doing well, people are working, they’re spending, they’re buying new houses and cars. Our unemployment rate is lower than the national average. By virtue of that, I can see nothing but good things happening for Alberta going forward.” BiC

TOC

Page 1 - This is Commercial Real Estate Page 4 - A City within a City Page 6 - BOMA Insider Page 8 - A Closer Look – The Property Manager

NEWS FALL 2014

This

is Commercial Real Estate

By the BOMA Communications Committee

The people who manage space, negotiate leases, maintain the air quality and building systems and many other critical tasks and functions are all commercial real estate (CRE) professionals. They manage buildings on behalf of owners, whether it is a single entity, or a pension or insurance fund. This month we look some of the main positions in CRE, essential people that help your business run smoothly.

ASSET MANAGEMENT profession-

als represent the owners of the buildings and have direct responsibility for portfolio performance, including financial planning and execution to develop and maintain the asset value. Through partnerships, negotiations and relationships with co-owners, clients and property managers, asset managers review and approve capital projects, leasing policy and brokerage agreements. Educational background of asset managers may include a post-secondary or master’s degree in finance, business administration or economics, as well as management courses and professional designations.

“My primary focus is on implementing asset and regional strategies for various clients, which involves splitting my time between negotiating lease transactions, communicating asset performance and future cash flow expectations to clients, calculating values, engaging with others in the marketplace to understand trends and market information, and helping/ mentoring others to support them in their day-to-day activities.” ~ Chris Nasim, senior director, asset management, GWL Realty Advisors Inc. [To read Chris’ full interview, visit boma.ca/boma-blog]

BOMA Calgary News

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

Business in Calgary

1025, 101 - 6 Ave. SW, Calgary, AB T2P 3P4 Tel: 403.264.3270 • Fax: 403.264.3276 info@businessincalgary.com www.businessincalgary.com

“What I like most about my job is providing outstanding customer service to my tenants, dealing with a diversity of tenants and people in the industry.” ~ Rita Reid, property manager, First Capital Realty (FCR Management Services Ltd.) [To read Rita’s full interview, visit boma.ca/boma-blog]

BOMA Calgary

120, 4954 Richard Road SW, Calgary, AB T3E 6L1 Email: info@boma.ca • Web: www.boma.ca Tel: 403.237.0559 • Fax: 403.266.5876

Communications Committee Chair - Leah Stewart, Sizeland Evans Interior Design Giovanni Worsley, MNP LLP Kim Bogner, 20 Vic Management Rita Reid, First Capital Realty Lia Robinson, BOMA Calgary Carly Chiasson, Bee-Clean Building Maintenance Serah Nguyen, Bentall Kennedy (Canada) LP Kim Wiltse, 20 Vic Management

Board of Directors

CHAIR Ken Dixon, Strategic Group CHAIR-ELECT Chris Nasim, GWL Realty Advisors SECRETARY TREASURER Lee Thiessen, MNP LLP PAST CHAIR Chris Howard, Avison Young Real Estate PRESIDENT & CSO William G. R. Partridge, CAE, BOMA Calgary

Directors

Fred Edwards, Servpro Cleaning Steve Weston, Brookfield Properties Marjorie Cone, H&R REIT Management Services LP Robert Brazzell, Altus Group Corrine Jackman, Hopewell Real Estate Services Cam Gresko, Cadillac Fairview Dustin Engel, Alberta Infrastructure Richard Morden, Bentall Kennedy (Canada) LP Loy Sullivan, 20 VIC Management Jay de Nance, Fairfield Commercial Real Estate Pearl Madryga, Sun Life Assurance Company

The Building Owners and Managers Association of Calgary publishes BOMA Calgary News quarterly. For advertising rates and information contact Business in Calgary. Publication of advertising should not be deemed as endorsement by BOMA Calgary. The publisher reserves the right in its sole and absolute discretion to reject any advertising at any time submitted by any party. Material contained herein does not necessarily reflect the opinion of BOMA Calgary, its members or its staff. © 2014 by BOMA Calgary. Printed in Canada.

PROPERTY MANAGEMENT is devoted to the maintenance and

care of the buildings and also includes negotiating leases or renewals, overseeing all building operations, construction, records, budgets and documentation. This is a profession that encompasses multiple disciplines to ensure the functionality of the built environment through integrating people, place, processes and technology. Education requirements may include business-related courses, RPA, FMA, CPM and/or post-secondary designations. In many cases, property managers must be licensed through the Real Estate Council of Alberta (RECA). For more information, contact the Education Helpdesk at education@reca.ca or 403.228.2954.

“(The future of operations) will be hiring operators who can specialize in all trades; more skilled operators means less need to sub out the work. More schooling and training will be encouraged.” ~ Alex Orilla, 5th class building operator, Cominar REIT [To read Alex’s full interview, visit boma.ca/boma-blog]

OPERATIONS

is the daily operation of office, industrial and retail buildings and is entrusted to its operators, which work under the supervision or in partnership with property management. Operators implement preventative maintenance, occupational health and safety programs, energy management and environmental controls. All the activities – cleaning, building systems, air quality – that make a building operate smoothly are under the purview of the operations department. Educational requirements can include trade experience, trade tickets, BOMA’s 5th Class Power Engineering for Building Operators course, RPA, FMA and management courses.

LEASING professionals are responsible for facilitat-

ing lease transactions, and working on behalf of owners/landlords to negotiate lease terms incorporated into leases with potential tenants. There is a high level of analytical activity involved, such as researching market comparisons and financial analysis. Leasing professionals develop marketing strategies and leasing assumptions and reports to owners on progress, as well as maintain relationships with the local brokerage community to stay up-to-date on market activity. The education that can facilitate a leasing career includes university degree, real estate licence through RECA (education@ reca.ca), business, marketing and real estate related courses, paralegal and leasing courses.

“I have often felt that much of our industry is a bit of a continuum. For example, a property manager will spend some part of their day solving an HR problem, a tenant complaint or a supplier issue only to have similar difficulties arise the next day. I like the transaction side because we work on a file until it gets closed – most of the time to a positive conclusion. There is a satisfaction to working something to a conclusion.” ~Andy Baxter, leasing manager, REAL Properties [To read Andy’s full interview, visit boma.ca/boma-blog]

SECURITY involves premise patrols, response to emergencies and monitoring security systems. But it goes far beyond the daily visible security to encompass the development, implementation and maintenance of security policies and procedures, and asset protection plans for regional and national portfolios. Security pro-

“Training future leaders is becoming something I think about a lot now. There is so much potential for growth in the security industry … there are so many young talented people out there, yet the question is why are they not seeing security as viable employment for their futures? Thus I make efforts to spend the time with those who show some interest to ensure that they understand that potential. I am also spending time working with my team on growing our own security team from within so that we can promote future supervisors and managers from the guard ranks. This is important for the viability and longevity of the program we have in place. ~Parnell Lea, senior manager, security and life safety, Brookfield Office Properties [To read Parnell’s full interview, visit boma.ca/boma-blog]

fessionals liaise with external agencies such as police, fire, medical and other security officials and maintain the administration of all security operating budgets. Senior managers are responsible for all security personnel, as well as emergency response plans, capital investment, viability and integrity of security and life safety systems. Education may include basic security training, first aid, CPR, WHMIS and/or security management and post-secondary designations.

CRE has much more to offer! Want to know more about career opportunities in the industry? Visit boma.ca/industry-careers/. 3

President’s Report

By William G.R. Partridge, CAE

A City within a City

President & Chief Staff Officer

Think of a major office building as a small town or city. There are many similarities. For example, an office building has water, sewer, natural gas and electricity systems. An office building has the equivalent of an LRT – we call them elevators. It has a security staff to patrol the building day and night, just like a police service. Many office buildings have significant on-site parking facilities that must be managed, just like the parking authority.

Now think of the requirement to keep all those things running for the safety, comfort and convenience of the building’s occupants. A commercial building’s operating team is very much like a city’s public works. They have specialized training and skills to keep all systems working. And these industry professionals often go unnoticed and unrecognized. The property manager is much like the “mayor” of the building who oversees and is responsible for all the

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building’s operations. The “mayor” would report to the asset manager or the owner, who would be in effect the “town council.” One of Calgary’s major office buildings can have as many as 5,000 to 7,500 occupants. The tenants in these buildings have an expectation that all the services available will be working and that they will function each and every time. Whether the building operations teams are direct employees of the management company or whether they are third-party contractors, they all come together to make an individual’s building experience as good as it can be. There are many career opportunities in commercial real estate. Elsewhere in this publication there is special attention paid to just a few of these fascinating occupational profiles. BOMA, among other things, works on behalf of industry to draw attention to these exciting careers as one way to attract talented people. For example, BOMA has developed programs specifically directed to training competent building operators through its Albertaspecific Building Operator Development Program. Likewise, BOMA is supportive of industry certification programs such as IREM’s certified property manager (CPM) – (www.reic.ca/en/designations-cpm.cfm), the CCIM program (www.ccim.com/), as well as real property administrator (RPA) and facility management administrator (FMA) offered through BOMI (www.bomicanada.com). The commercial real estate sector is a great industry and holds the promise of many satisfying careers. Whether you like the challenge of making a great transaction deal, have a penchant for developing an accounting career or like the hands-on aspect of technical trades, then the buildings industry is definitely one to consider. Visit boma.ca for more information.

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BOMA Insider

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Congratulations to the 2013/2014 BOMA Mentorship Program participants!

Lisa Cheong-Stevens, Bentall Kennedy (Canada) LP accepts the BOMA BESt Level 2 Certificate for the Deerfoot North Cargo Building

Peter Anderson, Bentall Kennedy (centre) receives BOMA BESt Level 3 Certificate for Dr Carl Safran Centre from Ken Dixon and Bill Partridge

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Welcome New BOMA Member Companies! Apple Cleaning Supplies Ltd., Tomis Slisko

Hardingâ&#x20AC;&#x2122;s Painting, Matt Whiteley

Christine Groulx

Aqua Air Systems Ltd., Trent Davis

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C5 Plus Ltd., Curt LaMontagne Carnegie Contracting Inc., Bill Carnegie CCS Contracting Ltd., Joshua Gatecliff Cloverdale Paint, Darlene Ell City of Airdrie, Vera Groen Commissionaires Southern Alberta, Frank Saulnier

IRC Building Sciences Group, Jesse Ghali

SuperPro Painting Systems, Michael Duchnij

Merit Roofing, John Muldoon

Switch Lighting Inc., Shawn Cornish

Opus Corp., Alec McColm

Unisource Canada, Dave Bourgeois

Paladin Security Group, Tyson Black

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PEL Recycling, Blaine Armstrong

Van Mason Coatings, Chad Nycholat

Precision Drilling Company, Michelle Mouly

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Premiere Van Lines, Lance Laliberte

Westpoint Building Services Inc., Bill Arnott

Envirocan, Cheryl Allidina

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Bill Partridge, Jay de Nance, Speaker Todd Hirsch, Lia Robinson and Ken Dixon at the April BOMA lunch

The Triovest Realty Advisors team accepts the BOMA BESt Level 3 Certificate for Westhills Towne Centre

The GWL Realty Advisors team accepts the BOMA BESt Level 3 Certificate for Stock Exchange Tower

The GWL Realty Advisors team for Watermark Tower accepts the BOMA BESt Level 3 Certificate

FCR Management Services accepts the BOMA BESt Level 1 Certificates for Richmond Square and Tuscany Market

Bill Partridge, BOMA President; June Speaker Warren Connell, VP Park Development, Calgary Stampede; Ken Dixon, BOMA Chair; and Bob Thompson, President & Chairman of the Calgary Stampede Board

A Closer Look – The Property Manager By David Parker

This city is busy. We are blessed to be firing on many cylinders enabling a healthy climate for workers in many industries and services, and one of the most buoyant sectors is the real estate industry. It covers many areas offering a variety of jobs; one I took a look at is that of a property manager. One of the reasons the position caught my eye was because I wondered how a person became a property manager and what does it take to become a successful one – a position that can demand interesting challenges and good financial rewards. A young person may finish an education that leads

them towards being an electrician, a nurse, a lawyer or a chef. But I’ve never heard a young person say, “I want to be a property manager when I’ve finished school.” One reason, I guess, is that there is no course available at SAIT Polytechnic of Mount Royal University that teaches how to become one. So how does it happen and what help can you get? It seems that most of those involved in managing properties that I’ve spoken to kind of fell into the job, became excited about the opportunities they discovered, and sought out the right education and training that is available in this city.

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It seems that most of those involved in managing properties that I’ve spoken to kind of fell into the job, became excited about the opportunities they discovered, and sought out the right education and training that is available in this city.

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Some started by working in property administration in a shopping mall or small retail development. LaVerne Planden, director of property development at Royop Development Corp., began her career in that apposition in an Airdrie mall and decided soon after that she wanted to be a property manager and “went for it.” That meant convincing Royop 12 years ago of her desire and then studying to gain her licence from RECA (Real Estate Council of Alberta), a mandatory course for anyone working as a property manager. The course can be taken in classroom or online and covers many areas of the industry including property management. It can take up to eight months of study, but more specific, in-depth courses by BOMI (Building Owners and Managers Institute) are now accepted towards gaining that licence – helping to tick off a couple of the required boxes. The job itself covers a wide range of responsibilities. There are companies that need staff to look after residential units and a company like Hines that was responsible for development of Eighth Avenue Place is also the property manager, which means being mayor and council over a small “town” of close to 6,000 tenants by the time the west tower opens. The property management team are responsible for policing, fire safety, community and a host of other services – all aimed at tenant retention for the owners. They take care of all types of real estate and are busily involved in any number of services including leasing negotiations, budget and financial reporting, building operations and maintenance, health/safety/security programs and tenant and community relations. It’s a job with a broad mandate requiring a lot of experience - most of it gained on the job. 9

Growth Spurt in the Burbs • Real Estate

Drakes Landing in Okotoks, construction near completion. Photo by Nancy Bielecki.

Growth Spurt in the Burbs Backyards, kids, dogs and Walmart BY DAN COOPER

Estate Board (CREB) which tracks only resale home buying in hen it comes to the “pioneering spirit,” burbs like Airdrie, Chestermere, Cochrane and Okotoks are the Calgary area, housing activity in surrounding communities rewriting the cliché. It’s now “Go west ... and east and continued at a brisk pace and with record-setting sales. In the first north and south, young man, young woman, and children, and half of this year, CREB showed that 2,938 resale units were sold dog, and lawnmower.” in Calgary suburbia. Although not formally defined as a trend, Real estate and consumer marketers love numbers. They stats show that it is a whopping 31 per cent increase over last year. are insatiable about demographics, stats, trends, charts and And that’s not counting the competitive (and confidential) graphs. Who is doing what? When, where and why? They parnew home sales figures from the sprawling new subdivisions ticularly like summaries and even convoluted conclusions. popping up in all four popular suburbs. Sorry. Much to their enthusiastic frustra“There’s no doubt about it. A significant tion, when it comes to the Calgary phenomegrowth spurt and a population boom is non of flocking to the suburbs, all they can get happening in the suburbs,” says knowlare cold, hard numbers. No second-guessable edgeable housing number-cruncher Anndemos. And no conclusions or summaries. Marie Lurie, CREB’s chief economist. “The Just the facts. suburban market upswing has been hapThe undisputable and documented facts pening since early this year. And although that, for whatever basic, impossible-todetailed studies and survey findings are track and vague reasons, Cochrane to the impossible, the likely causes are family lifewest, Okotoks to the south, Airdrie to the styles, housing choices and price points. north and Chestermere to the east are hot“Here, as in most suburbs, lifestyle ter than hot draws for disenchanted Calchoice is a significant reason for moving to gary urbanites and the more than 30,000 the suburbs,” she explains. “Maybe it’s the newcomers who are lured to the Calgary preference to live in a smaller town than area from Medicine Hat, Moose Jaw, Misthe bigger, busier and more expensive city. sissauga and beyond. Or maybe it’s opting for a larger home and The facts not only tell the story, the facts backyard than they could find in the city. are the ultimate, flattering feedback for “Whether it’s resales in existing areas or particularly the four suburbias in the open new subdivisions, there is more choice in spaces, great-outdoors shadow of Calgary. the suburbs.” The facts, according to the Calgary Real Ann-Marie Lurie, CREB chief economist 72 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

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Growth Spurt in the Burbs • Real Estate

Real estate pros, mortgage brokers, local governments and other housing experts agree. Home buying is price-point driven. The dwindling availability and spiking high cost of single-family homes in Calgary makes home buying in the suburbs irresistible, and an outright bargain. Especially by Calgary comparison. “Price, choice and affordability are key factors,” she points out. “A single-family resale in Airdrie is about $385,000. A similar Calgary resale, if you can find it, is probably over $500,000. In the first half of this year, 43 per cent of resale new listings in the suburbs were priced below $400,000. “At mid-year, the popular surrounding areas enjoyed exceptional growth, with a 13 per cent increase in new resale listings and totalling 4,379 units.” Add to that, the brisk new home sales, and the suburbia success story gets even bigger. According to CREB stats, Airdrie is the most popular suburb, followed very closely by Cochrane, Chestermere and Okotoks. Not to take away from the tremendous appeal and legitimate popularity of Calgary’s four suburbs, but the migration may be a broader, Canadian trend. From Montreal, Winnipeg and Vancouver to Toronto, Halifax and Ottawa, the burbs are a hot draw. According to a recent study published by the respected School of Urban and Regional Planning at Queen’s University, about 88 per cent of the 23 million people who live “in” one of Canada’s 33 major cities (including Calgary) live in the suburbs. Although town planner engineers and real estate pros know better than some that, despite stats, numbers and forecasting guesswork, it is ultimately the consumer who is in charge and determines trends. Consistent with the adage that “a home is the biggest and most expensive decision most people will ever make,” combined with Calgary house prices dashing dreams of home ownership, one successful Calgary builder who is suddenly very busy in Cochrane, shrugs that homebuyers tend to “drive till they qualify.” Whatever the reason for the phenomenon, urban sprawl, or

Patricia Matthews, mayor of Chestermere

suburban sprawl, is not only a modern bragging right but it is frequently a negative, derogatory and controversial put-down. In its truest and most harmless sense, urban or suburban sprawl is simply a concept to describe the population expansion from central urban areas into once-distant and rural areas, particularly low-density communities that can offer larger lots, bigger homes, backyards, schools, rec centres and playgrounds. Recently, the snarky pushback, usually from fiercely proud (and intimidated) urban and social critics, links suburban sprawl with crazy commute times, being away from city action and excitement and particularly trendy evils like carbon footprints, greenhouse gases, causing climate change and other consequences of driving to and from the suburbs. And in the other corner ... are Calgary’s heavyweight suburbanites who are swelling the population count, boosting the reputation of burbs like Airdrie, Okotoks, Chestermere and Cochrane and keeping their mayors grinning proudly, all the way to the town hall. Patricia Matthews is a high-energy, upbeat and special woman. She is part gung-ho civic booster and cheerleader, part PR person, part proud resident, active community member and also the mayor of Chestermere.

Drakes Landing, Okotoks. Photo by Nancy Bielecki.

74 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

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Growth Spurt in the Burbs • Real Estate

“This is such a fantastic community,” she beams in true Patricia Matthews style. “We have a small-town feel in a relaxed setting, we have safety, access to schools and amenities and quiet living that you probably don’t get anywhere else in the Calgary area. Water is our greatest amenity. Chestermere is the only place in the region with direct access to water for recreation. “Some people are surprised when they find out that Chestermere has been growing for 21 years. People started catching on about 10 years ago and the community has grown 200 per cent just in the last decade.” Matthews grins affectionately about being an early Chestermere believer. “The town has been here since 1993. We moved here in 1998, when there were barely 2,000 people, one gas station and a corner store. The population is now nearly 18,000 and it’s such a young, dynamic community! According to municipal statistics, about one-third are under 21 and well over 50 per cent are under 40.” Ivan Booker, mayor of Cochrane The Chestermere mayor is enthusiastic, even when it comes to the official explanation of the 30-year municipal plan for how the town plans to grow, attract residents and businesses and maintain a low tax rate. “We have always been fiscally conservative,” she admits, “making sure our growth fits with the demands of the community and council is focused on developers paying for development. A growing community needs development to continue healthy, but not on the backs of existing residents and businesses. “We know who we want to be and we are a great place to live,” gushes the mayor. It’s about a 30-minute, 37-kilometre commute from the manicured front lawns and coloured chalk-marked driveways of Cochrane to the overpriced and full parking lots in the downtown core.

“Recently we finally got a Walmart and that has stopped a lot of the leakage into the city,” is the excited comment from Ivan Brooker, the upbeat and focused mayor of Cochrane. “It’s a great spin-off for our businesses, our restaurants, our new Sobeys, our theatre and the retailers who will follow. “We are extremely proud to be a dynamic and growing community. We just did a census and received the results this spring. Cochrane is now 20,700 people and growing. Many people still commute, and when they come home and on weekends, we want to make sure we have what they need to stay home, in Cochrane,” he candidly admits council’s strategy. The mayor also explains that his town is working with a 10-year plan, mostly targeting infrastructure and development growth. “We work hard to have exceptional relationships with developers and we’re fortunate to be working with a great group. When they succeed, we succeed and we grow. That’s the key. It’s a healthy balance. We must have our needs met but we must also do what we can to meet the needs of the developers. “We understand their business and that time is money,” Brooker explains. “So we do what we can to keep the ball rolling. “I guess we benefit from the problems and frustrations I’m hearing some developers have with Calgary approvals and delays. We don’t want to make the same mistakes.” The Cochrane mayor says the town has no set targets but work their budgets on an annual growth rate of four to 5.5 per cent. Not overly-ambitious or out of line, considering the resounding growth spurt of Calgary suburbs. BiC

Drakes Landing, Okotoks. Photo by Nancy Bielecki.

76 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

the Sophisticated Science of drilling • Oil & Gas - Drilling

The drilling simulator in the Johnson-Cobbe Energy Centre at SAIT Polytechnic.

The

Sophisticated Science of Drilling BY PARkER GRANT

echnology has impacted, transformed and redefined almost all aspects of contemporary life and ways of doing business. It’s inevitable that it affect the economic heart and soul of Alberta and primarily Calgary. Directional and horizontal drilling may have been around for more than 20 years, some say as far back as 50 years, but newer and newer technology, equipment, tools and techniques keep evolving and solidifying the formerly basic oilfield service of drilling into a complex, sophisticated and state-of-the-art science. It’s much more expensive than vertical drilling but it’s

also tremendously more efficient. It also continues to transform Canada’s oil and gas industry as well as the diverse careers – from the head offices to the drill sites – that make it all happen. Most wells (drilled for water, oil, natural gas, soil and other information gathering) are vertical wells, drilled straight down into the earth. Industry experts point out that the concept of “drilling at an angle” was developed some 50 years ago and gradually evolved as a viable way to obtain information, hit targets and – with oil and gas – stimulate reservoirs in ways that cannot be achieved with a vertical well. businessincalgary.com | BUSINESS IN CALGARY September 2014 • 77

the Sophisticated Science of drilling • Oil & Gas - Drilling

Marcellus exposure along Interstate 80 in eastern Pennsylvania where the formation is thickest. Photo credit: “Marcellus I80 MP307” by Dhaluza. Licensed under Creative Commons Attribution-Share Alike 3.0 via Wikimedia Commons - http://commons.wikimedia.org/wiki/File:Marcellus_I80_MP307.jpg#mediaviewer/ File:Marcellus_I80_MP307.jpg

“The transformation and the paradigm of drilling has When directional drilling is combined with hydraulic been a remarkable and industry-changing phenomenon,” fracturing (fracking), some rock units which were unprosays the tremendously knowledgeable and seasoned oil and ductive when drilled vertically can become strong producers gas industry expert Alan Jack, academic chair for petroleum of oil or natural gas. The most cited good examples are the engineering technology with the MacPhail School of Energy horizontal drilling and fracking being done in the Marcellus at SAIT. Formation of the Appalachian Basin and the Bakken Formation of North Dakota. As with the “new technologies” in other industries, for insiders and laypeople, the processes and the equipment of horizontal drilling and fracking are technical, detailed, complex, laced with jargon and often baffling. Why directional and horizontal drilling is still capturing the excitement and interest of the oil and gas industry is because, like most technologies, it continues to advance and grow, with constant new ways of doing things with more and more impressive payoffs. “The new normal” way of drilling is being widely used to reach targets beneath adjacent lands, reduce the footprint of gas field development, increase the length of the “pay zone” in a well, deliberately intersect fractures, construct relief wells and install utility service beneath lands where excavation was impossible or extremely Alan Jack, academic chair for petroleum engineering technology Kevin Neveu, president and CEO and a director of Precision with the MacPhail School of Energy at SAIT. expensive. Drilling Corporation 78 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

the Sophisticated Science of drilling • Oil & Gas - Drilling

When directional drilling is combined with hydraulic fracturing (fracking), some rock units which were unproductive when drilled vertically can become strong producers of oil or natural gas. The most cited good examples are the horizontal drilling and fracking being done in the Marcellus Formation of the Appalachian A horizontal drilling rig for natural gas in the Marcellus formation in eastern Lycoming County, Pennsylvania. Photo credit: Ruhrfisch. Licensed under Creative Commons Attribution-Share Alike 3.0 via Wikimedia Commons - http://commons.wikimedia.org/wiki/File:Marcellus_Shale_ Gas_Drilling_Tower_1_crop.jpg#mediaviewer/File:Marcellus_Shale_Gas_Drilling_Tower_1_crop.jpg

“Of all the enormous changes, the most significant is the technology. It is so advanced and exacting and apart from the impact on hard-core aspects like production volumes and well performance, the mind-boggling accuracy of horizontal drilling is the big difference. “Drillers can now hit a target so exacting, 3,000 metres down and a mile long horizontally, when the actual target is no more than centimetres in diameter.” While the world’s oil and gas business and oilfield services business continue to enthusiastically embrace and prosper from the many, many ways the technology of horizontal drilling and multistage hydraulic fracturing keep impacting and redefining the industry, even the front-line industry leaders are in awe about the new technology of drilling. “The theory and the concept may have been around awhile, but until 1995, the technology and especially the equipment was not available to use. Until about 10 years ago, it was not economically feasible to access tight sands and rock. And then the new technology and equipment happened and reinvigorated the industry,” is the rave review and reaction of Kevin Neveu, president and CEO and a director of the respected Precision Drilling Corporation, Canada’s largest

Basin and the Bakken Formation of North Dakota.

oilfield services company and one of the largest in the U.S. with a growing presence internationally. The Calgary-based industry giant provides contract drilling, well servicing and strategic support services, and

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supplies on-the-ground expertise – people, equipment and knowledge – to the global oil and gas industry. “It has given us access to the huge resource of unconventional oil and gas and it is highly likely that new

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businessincalgary.com | BUSINESS IN CALGARY September 2014 • 79

the Sophisticated Science of drilling • Oil & Gas - Drilling

“The technology, the more productive and effective,” technologies will keep getting tools and the equipment Neveu points out, “it requires more developed and enable us to access technically skilled workers to not even more. It’s all very exciting and are so effective that only keep up with today’s demands gratifying,” he says with confidence but handle the growth that is yet to and pride. “It has brought oil and production rates and come. Our increased activity and gas focus back to North America volumes have driven unemployand the growth is fundamental to drilling activity are at ment levels to under four per cent.” our recovery.” Alan Jack and SAIT are on the Precision’s Kevin Neveu, SAIT’s 25-year peaks and front lines of the scramble for Alan Jack and the active and growing.” workers, especially skilled and plugged-in Petroleum Services trained in the newer technologies. Association of Canada (PSAC) – the ~ Kevin Neveu He acknowledges that while the national trade association with close industry is constantly pushing for to 250 companies in service, supply the latest drilling rigs and fracking and manufacturing in the petroleum equipment, there is a time-sensitive industry – are ready and armed with problem when it comes to finding qualified staff. reams of stats, numbers and tracking to underscore just how There is industry and academic consensus. The high-tech potently the latest new technologies spawned by horizontal science of drilling is confronting a skilled labour shortage. drilling are not only boosting the oil and gas business but “Aside from the grey tsunami that is shrinking the workcreating some positive but urgent problems. force in many industries,” he warns, “contemporary drilling “When a horizontal well is drilled and fracked, it exposes sites are more complex and require not only more skilled but about 275 times the pay zone rock and tremendously increased numbers of workers.” increases production rates,” explains the SAIT professor. ”It Recent industry figures show that with conventional drillmay take 10 vertical wells just to get the reserves and recoving, it took an average of 75 workers to complete a well. ery of what comes from one horizontal well.” As of 2014, it takes between 239 and 302 workers to do the “The technology, the tools and the equipment are so effechorizontal drilling and fracking. tive,” Neveu says, “that production rates and drilling activity “There’s over 90 per cent employment of our MacPhail are at 25-year peaks and growing.” School grads,” he says. “International students are now PSAC is continuously monitoring drilling activity and coming to SAIT to learn the new technologies. Our programs production rates and recently published stats to track that, are constantly updated, like the technology itself, and our 70 per cent of the wells forecast for 2014 are horizontal two-year petroleum engineering technology students usuwells, compared to 65 per cent in 2012 and just 41 per cent ally go directly to work. in 2010. Large organizations, such as Precision, have the Horizontal drilling and fracking technology have made cost-intensive luxury of training staff for the various opporthe drilling science and active wells more effective. Accordtunities and jobs the company must fill ASAP. ing to PSAC numbers, 12,144 wells were drilled through 20.4 “There is definitely a staffing shortage in our indusmillion metres of formation in 2010. The 2014 forecast calls try,” Neveu agrees. “We are fortunate to have a competitive for 11,170 wells tapping 23.4 million metres of formation. advantage in our ability to recruit, develop and retain the best On a provincial basis, PSAC projects 6,530 wells being people in the industry and this year, more than ever before, drilled in Alberta (less than a one per cent decrease), 623 we’re raising the bar to manage the staffing situation. wells in B.C., (a 13 per cent increase), 3,562 wells in Sas“Precision’s safety, training and talent development syskatchewan (a 11 per cent increase) and a nine per cent tems are key to how we do business. The skill-based and increase in Manitoba with 435 wells. safety training courses at our Houston Tech Center and Jack crunches the PSAC numbers and explains that activwe’re just about to open a similar new tech centre facility ity may misleadingly seem to be decreasing, mostly because in Nisku, where our workers will have access to a state-ofthe industry is drilling longer, deeper, more productive wells, the-art training facility and a fully functioning training rig.” altering the landscape with fewer wells but much greater The tremendous technology of horizontal drilling has production. already proven to be an industry booster and is also turning The spinoffs of the horizontal drilling and fracking techout to be an employment booster. nology have triggered terrific momentum and (excuse the “This year we had 1,200 applications for our 160 petropun) renewed energy in the oil and gas industry. The exciting leum engineering technology spaces,” says SAIT’s Alan changes and high efficiencies have also created a dilemma. Jack, with a bittersweet cringe. BiC “While the new technology has made our industry vastly 80 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

A flow chip with targeted gene sequencing Dr. Brent Scott and Naweed Syed, PhD in the genomics lab - Alberta Children’s Hospital Research Institute

Finding cures and better treatments for children through research

eet the dedicated team leading the Alberta Children’s Hospital Research Institute. Dr. Brent Scott, a respected veteran of Alberta’s medical pediatric community, is newly reappointed as executive director by Alberta Health Services and the University of Calgary. He is joined by highly successful brain researcher Naweed Syed, PhD, the institute’s new scientific director. “Together, we want to make a difference. Through research, we can create healthier lives for children, now and into the future,” says Dr. Scott. Dr. Scott, who holds the Husky Energy Chair in Child and Maternal Health, has helped shape child health care in southern Alberta over the past two decades. He was instrumental in planning and building the new Alberta Children’s Hospital. And as the former regional head of the Department of Pediatrics, he laid the foundation for a robust pediatric research community in the province. As a practicing physician and gastroenterologist, he understands first-hand how a child’s illness can affect the child, the family and the community. Complementing Dr. Scott’s experience in caring for children in hospital is a scientist who brings a wealth of experience from the laboratory. Naweed Syed, PhD, was educated in England and recruited to the University of Calgary. His pioneering research produced the first bionic hybrid of brain cells and electronics. His research was featured on the cover of the Canadian edition of Time magazine, showing how his “brain on a chip” could lead

to improved prosthetic limbs and replace cells damaged by neurodegenerative diseases. Syed will apply this same excellence to the research being conducted at the Alberta Children’s Hospital Research Institute. “We now know that all adult and childhood diseases originate in early life,” says Syed. “For that reason, we need to provide global research leadership in the early detection, intervention and causes of childhood diseases so crucial in finding new treatments.” One area in which Calgary is making great strides is the growing biomedical field of genomics. The institute has invested in next-generation sequencing technology, resulting in significant discoveries in fetal development and rare childhood disorders. The diagnostic and therapeutic potential of this new technology will enable pediatric specialists at the University of Calgary’s Cumming School of Medicine to be at the forefront of new interventions helping children reach their full potential. As with many advancements made at the institute, the genomics successes have been made possible with tremendous community support. “Calgarians give with generous hearts. We want to express our deep appreciation to the donors in this community for their ongoing support of this research institute and to the Alberta Children’s Hospital Foundation from which this institute receives so much funding,” says Dr. Scott. “Creating healthier futures for our children is something we are committed to doing as part of this great community we serve.”

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Agrium: Goin’ for t’ Gold in 2014 Agrium snagged the overall silver medal in the 2014 Calgary Corporate Challenge, but this year, the company will Go for t’ Gold. Arrr! “That goes without saying on wins and losses,” says Rose Lecky, Agrium’s Manager of Corporate Social Responsibility. “But it’s just as true of camaraderie, sportsmanship and fan attendance.” Agrium’s interpretation of this year’s Open Water CCC theme is all about pirates. A skull and crossbones – complete with bandana skullcap and eyepatch – adorn our T-shirts this year. More than 250 employees from Agrium’s Calgary head office, as well as the Carseland manufacturing facility located 30 minutes east of the city, are expected to suit up for CCC events this year. They’ll participate in events ranging from basketball and baseball to mountain bike racing and the 10K run, to cribbage and darts – as well as the CEO Challenge, thanks to strong support from the company’s senior leaders.

“Corporate Challenge is a blast,” says Mike Webb, Senior Vice President of Human Resources. “It’s a chance for us to get some exercise while we get to know each other better outside of work – and to let our hair down a little. It also allows us to connect with people from other employers, and that’s always fun, too.” A global manufacturer and retailer of fertilizer and other agricultural products and services, Agrium has sponsored Corporate Challenge for each of the past 15 years. “Wherever Agrium employees work and live, we are known for our strong community outreach program, which focuses on company investment and participation,” explains Webb. “We invite all employees to get involved. Whether you’re a player, a volunteer or a spectator, you’re part of this team, and we need you!” By t’ way, do ye know why pirates are called ‘pirates’? They just arrr.

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25 Years of Creating Personal Sanctuaries Written by Julia Marshall

armth, elegance and stylish decor greet you when you walk in the office doors at Rawlyk Developments Inc. The gleaming wood, soothing lighting and sophisticated finishings speak volumes. This isn’t just a company that builds beautiful spaces – Rawlyk Developments creates sanctuaries. And that’s precisely how the company’s founder and president Doug Rawlyk describes it. “We’re honoured each time we get to build a client’s personal sanctuary,” he says. “It’s a very emotional experience for everyone. At the end of the day, it becomes more of a friendship than a business relationship.” These friendships have taken Rawlyk Developments to where it is today. “Clients hear about us primarily through referrals,” says co-founder Karen Rawlyk. “Our reputation is built on word-of-mouth.”

Rawlyk Developments Inc. | 25th Anniversary | 1

Building dreams

“The Rawlyk Way”

It all started more than 25 years ago. Doug and Karen Rawlyk got in to the business of buying, renovating and selling houses in Calgary. One such property in Elbow Park caught the eye of a family who considered purchasing the home after a walk-through with their Realtor. “They expressed how much they liked the home,” says Doug Rawlyk. “They asked us to build them a home with a very similar plan.” Through this experience, the Rawlyks saw the opportunity to build truly custom homes for Calgarians. “The term ‘custom’ can be defined in many different ways,” says Karen Rawlyk. “To some, it means having a choice of materials, colours or finishings, but the design of the home is fairly standard. Instead, we wanted to allow clients to design every aspect of their home right from the foundation to the rooftop, and that’s exactly what we’re able to offer today.”

What began as a home renovating business has grown to a full-service project management company. Today, Rawlyk Developments helps clients attain the home of their dreams by managing the whole process, from the first handshake to the last coat of paint. The company refers to the experience as the Rawlyk Way. Each project begins with the client’s vision, whether it’s a fledgling idea or already on paper in the form of architectural drawings. Rawlyk Developments works together with a team of professionals, including some of the best architects and interior designers in town to hand-selected trades and suppliers, to complete the home. And the experience doesn’t end when the home is finished. The company offers a unique Lifetime Maintenance Program to ensure the home retains its full investment value. “This is how we end up building friendships with our clients through the

Rawlyk Developments Inc. | 25th Anniversary | 2

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building process,” explains Doug Rawlyk. “It takes approximately 18 months to build a custom home in which we’re very involved with our clients, and due to our maintenance program, we keep a strong and committed relationship well past the completion of the project.” By putting the client’s vision first, Rawlyk Developments has acquired a knack for tailoring the building experience itself to each customer. “No two homes we build are alike,” says Doug Rawlyk. “And similarly, no two clients are exactly the same. So we take the time to understand our clients’ expectations and we ensure complete transparency in the building process.” For many people, building or renovating a home can be a stressful undertaking, and Rawlyk Developments does everything they can to turn it into a great experience. Another unique differentiator is the company’s level of care during the building process. They do their due diligence on a site before coming in to build, developing a plan to protect the trees, respect the neighbours and adhere to bylaws accordingly. Rawlyk Developments takes pride in their clean worksites and policy of completing clean-up on each piece of work before another begins. “We work extremely hard

behind the scenes to ensure that the client is well looked after. We strongly believe that over the past 25 years, we have developed the finest custom homebuilding process in Calgary.” It’s this attention to detail that reassures the client that their home is well taken care of. Rawlyk Developments sees each project as a unique puzzle that needs to be put together beautifully, within a specific deadline and budget.

Celebrating 25 years In 1989, Rawlyk Developments’ founding year, Calgary was a very different city than it is today. Many current suburban neighbourhoods didn’t exist, and home design and building materials were fairly standard. Over the next two decades, Calgary’s infrastructure and population grew and the city began to change. With that, Calgarians’ preferences and lifestyles evolved too. Over the years, Rawlyk Developments has worked on every type of project imaginable – new homes, additions, renovations and restorations. They’ve helped clients find land in desirable communities, advised homeowners on the most efficient approach to renovations and built a veritable

Rawlyk Developments Inc. | 25th Anniversary | 4

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“We are extremely fortunate and grateful to have worked with the Calgary community these past 25 years. This is not only a celebration of our company; it’s a celebration of our client relationships and the talented team of professionals who partner with us.” ~ Doug Rawlyk

Doug Rawlyk, the company’s founder and president

network of gifted architects, Photo by Melissa Arthur

interior designers and trades. Today, the company draws on their years of experience to build dwellings that match Calgary’s unique personalities. For example, Rawlyk Developments helps clients implement new trends and personal tastes into the design of their homes. The environmentally conscious can opt for the latest in energy-saving technologies. Music enthusiasts can create soundproof recording studios. And yoga practitioners can have blissful retreats in the comfort and convenience of their own homes. Other options include water purification systems, built-in air purifiers, customized stonework, automated lighting and personalized entertainment rooms. Rawlyk Developments gathers the right team for each project. “No matter what the project is, there’s bound to be a unique element that requires an out-of-the-box approach”

says Doug Rawlyk. “We work with our trade partners to come up with practical solutions that exceed the client’s expectations.” As every project is distinctive, the company gains new expertise and knowledge of the latest trends and possibilities in homebuilding with every undertaking. As one can imagine, the challenges often extend beyond the building project. Calgary weather has thrown a myriad of challenges at the Rawlyk team over the years, and each situation requires expertise and a well-thought out solution to resolve. In 2013, Rawlyk Developments helped many Calgarians restore their flood-damaged homes and bring clients’ signature styles back to their living spaces. As Rawlyk Developments celebrates their 25th anniversary, their thoughts are of heartfelt gratitude. “We are extremely fortunate and grateful to have worked with the Calgary community these past 25 years,” says Doug Rawlyk. “This is not only a celebration of our company; it’s a celebration of our client relationships and the talented team of professionals who partner with us.” Rawlyk Developments thanks their valued clients, partners and employees for helping them achieve this significant milestone. As Calgary continues to evolve, Rawlyk Developments will surely see many continued years of creating personal sanctuaries for Calgarians. •

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Rawlyk Developments Inc. | 25th Anniversary | 6

ProCura Calgary Team at ProCura’s office. Photo by Melissa Arthur

ProCura,

Building Lifestyles

By John Hardy

roCura is one of Western Canada’s most innovative, successful and respected property development and management companies. Since 1979, ProCura has designed trend-setting landmarks and communities in Calgary, as well as in Edmonton and Vancouver. As ProCura expands its diverse portfolio of residential, office, retail and mixed-use buildings, the company will continue to promote and foster the creation of vibrant, livable spaces. ProCura has earned an exceptional reputation among industry and municipal stakeholders for the performance and quality of its services – from development, investment and asset management to property management, leasing and marketing. As ProCura owners George and Sherry Schluessel point out with passion and energy – affecting people’s lives is what it’s ultimately all about. “Key business aspects like the timely acquisition of land, desirable locations, return on investment (ROI), and the innovative design and development of great properties are essential, of course,” says Sherry, senior managing ProCura Grand - 4th Street and 11th Avenue SW

ProCura | 35th ANNIVERSARY | 1

partner at ProCura. “But when you get right down to it, the entire process and the finished product is about people. It is all about relationships. The attention to detail, quality of construction, and an understanding of what people want and what lifestyle they are looking for – these are ProCura priorities.” With more than 35 years of solid industry savvy and expertise gained from the development of groundbreaking properties, as well as tremendous consumer experience based on complete respect for commercial and residential tenants, George, the president and CEO, credits ProCura staff and development partners for the company’s success. He emphatically underscores that the company’s true focus is people. “We put a lot of thought about the eventual residents of our buildings. While suburban product is different from downtown product, all residential tenants have a right to expect an affordable and quality home

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Innovative thinking. Practical results.

that suits their daily lives,” he says. “Our commercial tenants also demand and deserve the best possible location and the facilities to enable them to conduct efficient business and make their organizations grow. ProCura is committed to ensuring they get what they need and what they are looking for.” Although Sherry recognizes that location-location remains the common and almost sacred mantra of real estate development, she also points to the changing aspects of the development industry, fluctuating market factors and shifting consumer trends. “Sustainability and the environment are vital ProCura issues and increasingly important considerations for our residential and commercial tenants,” she explains. “The sustainability of our buildings is an enormous ProCura factor. From the design to the construction, there are many tangible benefits of developing or retrofitting to meet the new sustainability standards.” The widely popular LEED (Leadership in Energy and Environmental Design) program is an environmental building rating system that has already transformed the building industry for a more sustainable and healthy future. LEED offers third-party certification for green buildings and provides developers with an effective way to use various “green” aspects in everything from building design, construction and operations all the way to routine maintenance. ProCura is proactively committed to sustainability and has an in-house LEED-accredited team that specializes in developing, integrating and maintaining LEED protocols at all new commercial and residential properties. “ProCura understands the big impact that design and construction have on the environment. That’s why we have

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ProCura | 35th ANNIVERSARY | 2

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ProCura | 35th ANNIVERSARY | 3

ProCura senior managing partner Sherry Schluessel with The Montana model 28th floor ProCura offices. Photo by Melissa Arthur

chosen a leadership role in applying the latest technologies and practices, so we can be more efficient and reduce the ecological footprint of our buildings,” says Sherry. “There is a win-win pay-off! Reduced energy costs and water usage, increased air quality and more natural light in our commercial properties have been shown to cause 16 per cent higher levels of employee productivity and work performance and significantly reduced levels of absenteeism. It also provides a better quality of life experience that attracts and retains longterm tenancies in our residential properties, and retention is your biggest advantage in our industry.” The Schluessels know that approved land is still the pivotal aspect of effective and valuable development. It’s also a ProCura competitive-edge and ranks the company in a league of its own. “We have been on a steady course with our long-term strategy and approach about land acquisition and the development of new properties,” George explains.

Some excellent examples of the lifestyle-driven ProCura design and development are the timeless and classic elegance of The Montana, the award-winning Emerald Stone community; and the impressive, up and coming ProCura Grande at 4th Street SW and 11th Avenue SW. “ProCura has an extensive inventory of land. We have land for at least 5,000 suites, enough to last us 20 years,” George notes. “We now also offer a full range of client services to complement our diverse asset base.” Whether industry-driven, economy-driven or consumer and lifestyle-driven (or all three), various aspects of project development have changed dramatically, especially during the past six years since the 2008 downturn. “Our focus is now residential and commercial rental properties,” he says, highlighting ProCura’s new business strategy. ”We are out of the condo business. Condo buildings require heavy pre-sell, the developer has all the risks, and I’m not sure if condos, especially highend, inner city condos, have priced themselves out of the condo buyer market.” He says that 5 or 10 years ago, the consumer could buy a Calgary condo for $150,000. “CMHC only required five per cent down and there was a lot of demand from a large pool of purchasers. Today, the price is more like $350,000. CMHC wants at least 20 per cent down and it requires substantial equity,” George adds. “Let’s face it. There just aren’t many potential condo buyers out there with $70,000 in the bank.” North American statistics also show that the condo market has gone out of whack. New York City condos sell for more than $3,000 per square foot. Some Vancouver and Toronto condos – and recently some high-end Calgary condos –

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ProCura | 35th ANNIVERSARY | 4

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ProCura | 35th ANNIVERSARY | 5

sites are also investing in the community, as ProCura donates that ad are selling for $1,000 per square foot. It is the key reason why revenue, as well as provides $250,000 in matching funds, to a range George and other industry insiders warn that price points of local, non-profit organizations. In Calgary, ProCura expects to have pretty well ruined affordability, shrunk the condo marcontribute $500,000 to Big Brothers Big Sisters. ket, and are why developing condo buildings is no longer a Signs of Change will enable viable business. ProCura, its partners and the ProCura’s quality of developindustry to have a positive and ment and innovative strategy are profound impact in cities coastproving that Calgary’s present to-coast. and future are residential and Aside from the emerging commercial rental properties. trends in the development The complex bottom line includes industry, the Schluessels are crunching numbers like the ROI gung-ho about some exciting on the cost of land and the cost per changes which are about to square foot of construction. happen at ProCura. The Schluessels are candid, ex“We have a truly exceptional plaining that with all factors takstaff. They are loyal, hardworken into account, developers must ing, creative and dedicated. It’s build smaller units just to make time we stepped back a bit and the numbers work. The going rate give our staff a similar kind of for a superb ProCura rental unit opportunity that was given to in Calgary ranges between $1.80 us,” George says with pride and to $2.25 per square foot. ProCura president and CEO George Schluessel and senior managing partner Sherry Schluessel. Photo by Melissa Arthur emotion. “We will gradually In addition to developing awardtransition ProCura to employwinning properties, ProCura is ee ownership. It will allow us to stay on and mentor.” dedicated to helping charitable and social organizations that are The high-energy married couple are good natured about making a real difference in people’s lives. Giving back to the comtheir hectic professional and personal schedules and laugh munity is at the core of everything ProCura does. The company off clichés about the hazards of couples working together. is a generous and long-term supporter of local causes – from the “We are fortunate to have a unique soul mate relationship. Heart and Stroke Foundation, Inn from the Cold and Big BrothWhen it comes to work, we are focused and passionate about ers Big Sisters to the YWCA Calgary, Gold Medal Plates and different aspects of the business,” says Sherry. “And we enjoy many others. being busy and achieving, together.” This year, the company launched the “Signs of Change Project,” an amThe distinguished, 35-year track record of innovation, longbitious initiative to engage the real estate industry across Canada term relationships with contractors and trades, and the loyal in a model of CSR where shared value is created. ProCura wants respect of property residents are the ultimate testaments to to inspire property developers and their networks of partners to ProCura’s excellence. participate in opportunities where business and social benefits are “Our unconditional ProCura strategy and promise,” Sherry generated together. emphasizes with conviction and a radiant smile, “is the highest For example, the large hoardings that surround ProCura’s project standards of quality, affordability, sustainability and the kind sites are high-profile, high-value venues for partners to advertise of lifestyle and workplaces that people want and deserve.” their brands and services. Partners who invest in advertising at these

www.procura.ca ProCura | 35th ANNIVERSARY | 6

15 Years of Crafting Excellence By John Hardy

he success of WD Construction & Millwork is a reflection of its leadership, dedicated staff, skills and expertise honed through an array of successfully completed projects. They have an uncompromising focus on maintaining the highest of standards and their client-focused quality of work contributes to their greatest of attributes - Reputation. WD Construction’s reputation is all about the full range of dental and office space interior construction services that they provide: consulting, estimating and planning through to scheduling, construction, supervision, securing the necessary permits and inspections, and ultimately the completion of projects, ontime and on-budget. Depending on the client’s needs, the scope of services available range across the full project life cycle from inception through to completion. The focus of WD’s projects is the construction and renovation of Calgary dental and office space, including custom millwork. Projects have also included commercial base building and miscellaneous interior office and retail renovation projects for businesses and stores in the Calgary area. Like many of their clients, the WD team is made up of professionals and craftsmen who are also “specialists” in the services they provide. Their specialty is in the planning and building of efficient, functional and attractive contemporary dental clinics and office space. Bob Dawson and Steve Loewen are the two principals and

leaders of the WD Construction team. Their combined decades of Calgary-area savvy and their diverse experience in all aspects of the construction business sets the company apart and in a league of their own. Lee McCallum provides leadership as the construction manager responsible for the translation of WD’s corporate vision in the efficient execution of their projects. The three of them share a common trait which is part of the WD competitive edge: a focus on client relationships! For more than 15 years, the Calgary-based interior construction contractor has built valuable relationships and a solid reputation, primarily with the dental community, owners of area medical offices and clinics, other health professionals as well as suppliers, designers, subcontract trades, and the city’s building department. Through the translation of drawings and plans to timely completion, and a focus on client satisfaction, word of mouth has helped make WD Construction one of the most sought-after interior construction contractors in Calgary. Another key WD trait is attention to detail. “The various stages of the construction – the walls, the floors, the ceilings, the cabinets, the mechanicals, the counters, the light fixtures, the plumbing, the tiles, the flooring and the finishes – are very important aspects of what we do,” explains Steve Loewen. “The client relationship, and their valuable input and feedback, is a huge part of making it all come together and happen efficiently.

WD Construction & Millwork | 15 Years | 1

Trevor Sedran, Lee McCallum and Dan Sullivan in our Millwork shop. Photos, this page, by Melissa Arthur.

Back row from left to right: Bryant Rudolph, Andy Drouin, Russ Dawson, Treva McNichol-Toth, John Alheit, Trevor Sedran, Bob Dawson and Steve Loewen. Front row from left to right: Lee McCallum, Dan Sullivan and Allison Currie.

The detailed construction plan is ultimately the combination of their input and our expertise. This relationship is an important element of our WD customized service.” “As soon as the client finds their chosen location, and sometimes even before they actually sign the lease, we meet and are available to offer advice about the constructability of the space. “I usually meet with the engineers and the designers to review and ensure that there is a complete understanding of the client’s needs and expectations, with a follow-up with the client to finalize the drawings and the schedule,” Loewen says with enthusiasm. A key aspect of the WD reputation is the superb rapport shared with clients, and the invaluable experience of understanding the various factors and details that are so important when it comes to the efficient functioning of a contemporary dental or office space. From the reception and waiting room areas, the examination and treatment rooms, to the layout, the primary focus of the design and finish is on the efficiency and effectiveness of the office staff and customer comfort. “We’re constantly upgrading and working with the latest equipment used by dentists, opticians and other medical professionals. We are comfortable with the technology and equipment including everything from the basic mechanical such as heating, vacuum and waterlines, to scheduling and billing technology,

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to lasers, X-rays and other cutting-edge office equipment,” says Loewen. WD Construction president Bob Dawson has been involved in construction for more than 25 years and has seen it all, though he acknowledges that what sets WD Construction apart is “walking the talk,” demonstrated through the delivery of projects on schedule and the excellent quality of WD’s work. “How the client wants everything to be laid out, the equipment, plumbing and electrical installation specifications, the important details, all provide input to the customization of the project schedules and deadlines.” ”The efficiency and profitability of the clinic relies on it,” Dawson says. “There’s no margin for being late. The client has high levels of expectations and we are determined that they will all be met. The office must be open for business on schedule or sooner! Our job is to work within the established schedule and ensure that we deliver with every aspect of the construction.” The millwork shop is run by Trevor Sedran with over 25 years of cabinetmaking experience. While they do some clinics in-house the shop is there to provide additional support when required for all of the projects. Lee McCallum is the WD Construction manager, responsible for execution of the details. With more than 35 years experience,

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WD Construction & Millwork | 15 Years | 3

Bob Dawson, owner.

Steve Loewen, owner. Photos, this page, by Melissa Arthur.

McCallum’s experience includes supervising the construction of commercial projects like retail stores, banks, restaurants, dental and veterinary clinics, and commercial buildings. He not only coordinates the various trades, he is very “handson” with all aspects of the project plan and maintains a rapport with everyone involved in the project – from the WD Construction crews and the company’s on-site supervisor assigned to every job, the subcontractors and trades to the interior designers and city inspectors. WD considers every job to be a custom project. McCallum oversees how the many details and plans come together for on-time completion. “Our crews are always up to date. And that’s a must,” he emphasizes. “The layout, look and technology of the dental and office spaces we build have changed a lot over the years. “Workplace communication systems, computer terminals, X-rays, lasers and other technology are routine and basic parts of today’s dental offices. There are many high-tech pieces of equipment that require specialized construction techniques. “We are constantly upgrading our skills so that we are always up to date with the latest details and requirements, and ready to do the job.” Popular and busy Calgary dentist Dr. Gunadi Wibowo values WD Construction’s skills and performance and is a satisfied repeat client. In the past six years, WD Construction has built two offices – Sunridge Dental and Skyview Ranch Dental, for Dr. Wibowo and his patients. “WD Construction is very good and reliable with their timing and about meeting deadlines,” Dr. Wibowo says. “The quality of their work is excellent and their on-site foreman was very helpful

with various issues. After completion, WD was helpful with followups that were needed.” Calgary dentist Dr. Dan Goldberg, at Go Dental, has a special appreciation of WD Construction’s style and quality of work. “Another contractor started the project but it was a disaster. We hired WD, they came in, some details had to be modified, they met with my designer and did a terrific and efficient job.” “It was even more difficult because the timing was around Christmas and I was out of town the entire time, communicating with them by remote,” Dr. Goldberg recalls. “The major reno of our offices was a tricky challenge,” explains Dr. Tim Begalke, about the Country Hills Dental Centre he renovated with his partner, Dr. Jamie Wallace. “We already had a busy practice we couldn’t just shut down. So the work had to be done in stages, while we were treating patients.” “The office had to be gutted and rebuilt from scratch. WD Construction was terrifically organized and worked around some tough time constraints. They scheduled trades, sometime on weekends and at night, and they got it all done on-time. We were very impressed and we are very happy with the final result.” Consultation, knowing what the client needs, attention to detail, high standards of workmanship and a thorough understanding of the sometimes tricky and technical aspects of today’s technology and consistently meeting construction deadlines continue to earn WD Construction the respect and reputation for being the premier interior construction contractor of dental and professional office space in Calgary, Red Deer, Cochrane and High River. “A lot of our clients are repeat clients,” Loewen says with pride. “That’s not only gratifying, it’s the ultimate testimonial.” •

www.wdconstruction.ca 403.250.3622 WD Construction & Millwork | 15 Years | 4

MaxWell Realty:

A Maximum Service Partnership Our word and our handshake are more important than our signature. We can argue a contract, but we can’t argue our word. We’ve treated people that way and it’s come back to us in spades. If you treat people fairly and honestly, with respect, you can’t do anything but succeed in the long run. -- Ron Stanners, Vice President/Owner of MaxWell Realty Inc and President/Owner of MaxWell South Star

hen Ron Stanners and Dick Oakes joined forces in 1994, they had both worked in real estate for decades. While they loved the industry, they believed something was missing – and there was room for a new approach. After five years of partnership, they were ready to create something unique. “There was no sense copying another type of organization,” says Stanners. “Our discussions led us to come up the middle between the lower-cost brokerages and the full-service brokerages. We came up with the concept of providing full service at a low cost to the REALTORS ©.” On this warm summer day, the company founders have arrived at the MaxWell Realty office in Fairview dressed casually in golf shirts. Their friendly smiles and down-to-earth energy exude the comfort level of two men who’ve been friends since the ‘80s. Their casual demeanor masks the intensity of their drive to make MaxWell the best company it can be. Their attention to detail started with their hunt for the perfect name. The list of requirements was carefully thought out. It had to be easy for the ear to catch, even if the client’s first language wasn’t English. They also wanted a name that was only seven letters long, with just two syllables. They were adamant about including the letter X, for that unique, snappy sound.

Left to right: Ron Stanners and Dick Oakes displaying their new digital signage.

MaxWell Realty 15th | MaxWell South Star 25th | page 1

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“The motto that we have at Maxwell is: we make our living in the community, we give back to the community.” -Dick Oakes

MaxWell South Star, the same location for 25 years.

The MaxWell moniker had no links to the heritage or history of either man, but it struck a chord with both Stanners and Oakes. It would become a symbol for the maximum amount of care they provide for their customers’ wellbeing: a single, simple-to-pronounce metaphor for offering the utmost in service. Now, as they celebrate their 15th anniversary, their Canadian-owned corporation has grown to over 400 agents with representation in 20 communities across Alberta, British Columbia and Saskatchewan. With their Calgary-headquartered real estate franchise flourishing in a market of national and international giants, the partners believe the people at the “Company of Choice” are the key to their success. “People think the product we have is the real estate, but inside the industry, we know the product is the REALTOR©,” says Oakes. “The REALTOR© is the centerpiece, the focus of how everything goes together, the person that brings in all the information, puts the transaction together and then handles the negotiations between both parties. The REALTOR© brings in the financial people, the appraiser, the home inspector and facilitates all the activities through the lawyers. The REALTOR© is the center that everything spins from. MaxWell is not number one; are clients are.” One of those REALTORS© is broker Bill MacDougall, who has been with the company for 12 years. Together with his wife, Audrey, he purchased the MaxWell Capital Realty franchise in the northwest last year. This was in addition to the MaxWell offices he already owned in Didsbury, Black Diamond and Sundre. “MaxWell is a different real estate company than the others,” says MacDougall. “Our REALTORS© are very in tune with their clients, making sure that they’re serviced completely and properly, and are happy.” Service is an over-arching theme in conversations around the water cooler at MaxWell. During the course of a joke-filled sit-down in a small conference room, Stanners Bill MacDougall

and Oakes’s earnestness on this issue threads through the laughter. According to them, real estate is the ultimate service industry. “We assist people in making their dreams happen,” says Oakes. “Whether it’s their first home, their first condo, their first single family or going into a high rise, all the way up into retirement homes, there’s always a stage to assist someone achieve their dream, to make their life more livable. That’s called service.” MacDougall is even more emphatic. “I’d call it a proper and true way of doing business. You don’t put your commission cheque first, you don’t put your face on a billboard first. You put your client first and make sure they are treated the best. These are more than clients. These people become friends.” The client-as-a-friend perspective is in line with the outlook of the MaxWell leadership duo, which considers their workforce to be more family than organization. Three principals carry them through a constantly changing marketplace: honesty, knowledge and trustworthiness. Pay a visit to the Fairview location on Macleod Trail SE and you’ll notice each word embossed on its own seven-foot tall banner, placed at pivotal points around the office. The towering tangibility of their professional tenets is indicative of the company’s approach to modern technology. The growth of Maxwell over the last decade-and-ahalf has traveled a parallel path alongside the explosion of the Internet. The information superhighway has made it easier for agents and the public to do their real estate research, while social media has changed the way people interact with each other. But that hasn’t stopped MaxWell from digging its heels into a classic client approach. “That’s all fine and dandy,” says Oakes, referring to everything Internet-related. “But getting out to meet people face to face, belly to belly is what matters most. You’re working for those referrals. The backbone of the industry is relationship oriented.”

MaxWell Realty 15th | MaxWell South Star 25th | page 2

Now, 15 years after MaxWell Realty was created, they attribute their success to their dogged enthusiasm in building those relationships. More than 6,000 customers trust the company to assist them with their home selling and buying transactions each year. Besides residential, commercial and rural properties, MaxWell markets and sells both large and small-scale businesses. It doesn’t hurt that in their anniversary year, the Alberta marketplace is having a particularly good run, up 10 per cent over last year overall. Stanners’s office, which is celebrating 25 years of brokerage operations this year, is up 22 per cent by comparison. After averaging 14 ends per REALTOR© last year, this year his office is on track to achieve 20, which is far above the industry average of eight or nine. He believes it is directly due to their committed adherence to education. He also raves about the Ninja Selling program in Fort Collins, Colorado, which makes service the end goal. “It’s 180 degrees different than anything else,” says Stanners. “It’s based entirely on service – looking after the wants, needs and desires of the client. In my office, the people who took the program in 2011, when we measured their income in 2012 and again in 2013, they increased by 50 per cent. They just attract more business. People refer them, come back to them, and in some cases it creates business that wasn’t even there to begin with. It is the way they treat people.” This attention to education has spread across the entire

MaxWell organization, including over at MacDougall’s Maxwell Capital location. “We do training here once a week for all our REALTORS© in our brokerage, on a myriad of different topics,” he says. “We want to make sure all our REALTORS© are updated on all the changes in regulations and laws that come from the Real Estate Council of Alberta (RECA), but also on how to help each other out. If we run into a situation that’s kind of unique, we talk about it. How do we help each other out? How do we do this a better way? It is really helping their clients.” Back in the conference room at the Fairview location, Oakes says they pride themselves on the high amount of education they give their REALTORS©. “Our proverbial Monday morning business meetings, to a large degree, are really a dissemination on new information coming down from the board, coming down from the regulator, coming down from all over. Real estate is constantly in change because the marketplace is constantly in change. We pride ourselves on keeping our people abreast of the changes and totally up to speed.” Meanwhile, it’s not all business, all the time. As Oakes says, “The motto that we have at Maxwell is: we make our living in the community, we give back to the community.” Their charity of choice is Kids Help Phone. They’ve donated $261,563 to the Alberta region of Kids Help Phone since 2003.

Congratulations MaxWell Realty Inc. and MaxWell South Star. Studio 4 Signs wish you many more years of success. www.studio4signs.com

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MaxWell Realty 15th | MaxWell South Star 25th | page 3

“Who are the leaders of tomorrow?” asks Stanners. “The children of today. And some of them are going through some pretty rough times now.” At one point, the founders of MaxWell had their own rough times. In 2001, they hoped to expand internationally into the United States. After investing hundreds of thousands of dollars, documentation was approved for their operation in all but four states. Just as they were planning to build their headquarters in Buffalo, New York, planes crashed into the Twin Towers of the World Trade Center in New York. “America closed their doors to anybody that was not American,” says Oakes. “It was so apparent that if you weren’t American, you were going to have nothing in the way of starting a new business.” Six days later, they pulled the plug and swallowed the loss. Instead, they concentrated on slowly spreading their wings in Canada. There have been challenging moments, when a few franchises caused harm to the company’s image. Those offices were stripped of MaxWell signage and ousted from the family. They have opened and shut an office in Okotoks – twice. But now with locations as far away as Invermere, British Columbia and Regina, Saskatchewan, they are well on their way. However, even though they’re born and bred in Alberta, and “darn proud of it,” as Oakes says, they dial down the hometown pride as they grow beyond provincial borders. “One has to be careful about the Alberta swagger,” says Oakes. “The people that are attracted to us are attracted to the momentum, identifying themselves with a business model that works for them.” The momentum seems to be driven by the kindred spirit Stanners and Oakes share, evidenced by a steady stream of similarities and uncanny coincidences, in both their professional and personal worlds. Both are 68 years old. Both have achieved honors in their careers, including Stanners’s REALTOR© of the Year Award in 2000, President of CREB in 2007 and Honorary Life Membership Award in 2008, and Oakes as past President of the CREB Charitable Foundation and Honorary Life Membership award with the Calgary Real Estate Board. They each have twin sons and a daughter. Both men have one son who’s a REALTOR© and a granddaughter named Ella, not to mention a steady stream of discoveries, over the years, that they share the same doctor or specialist. Together, they have a combined 75 years of real estate

Reminiscing about MaxWell Realty’s startup in 1999.

experience. Their partnership is 50-50, but if you ask, they’ll tell you it’s the division of labour, enhanced by their different skill sets, that make it work. “No sense two of us chasing the same rabbit,” says Oakes. “Oakes’s got his foot on the gas, I’ve got my foot on the brake,” says Stanners, laughing. “He kind of reins me in,” Oakes agrees. “It’s been a good balance. But sometimes he’s got an idea, and I say, hmmm – you’ve got to pump it up.” “Nothing’s cast in stone, and we both make mistakes,” Stanners reflects on the give-and-take that has not only helped their partnership thrive; it has kept them the best of friends. “Usually the person who has the most passion for his position is where we both end up going.” As the years have passed, they’ve been approached several times with offers of buyouts, but even with retirement on the horizon (although they prefer to call it transition), they are committed to the MaxWell brand, which has a high recognition factor throughout Western Canada. They’re still pushing forward, freshening up their logo and creating luxury signage. They have also forged strategic alliances with two large organizations, Who’s Who in Luxury Real Estate and Print Logix, for marketing purposes. “It’s been a fun trip,” says Stanners. “Oakes and I can safely say we’re not going to die with our music in us. We have an amazing organization of people in our offices. They’ve bought into the same ethics and values and culture that we’ve put forward. It really is a family.”

www.maxwellrealty.ca MaxWell Realty 15th | MaxWell South Star 25th | page 4

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Prestige Railing & Stairs Ltd. This year, Prestige Railings & Stairs celebrates 25 years of success. “Celebrating this special 25th anniversary is rewarding to us as it symbolizes the bond we have with our customers,” says Jacque Topuschak, marketing manager. “We recently added to our numerous Consumer Choice Awards by winnings two more awards for business excellence in the stair and railing categories, one for our Calgary office and the other for our Edmonton location. We are proud of our Consumers Choice Awards but more so, we are filled with gratitude to our faithful customers who vote for us over and over again.” Prestige Railings & Stairs was built over the past two decades through mergers and acquisitions of local businesses. The talented artisans, whom design and build custom railings, stairs and enhancements in a wide variety of shapes, sizes and materials, see each piece as a unique art form, from classic wood spindles to contemporary stainless steel and glass staircases. Stair design has grown by leaps and bounds over the past decade, allowing for innovation and creativity like never

before. One only needs to visit the Atlantic Ave Art Block in Inglewood and ascend the four-storey glass staircase to experience the workmanship and artistry of Prestige. Architects, designers, contractors and homeowners push the boundaries of creativity, and Prestige is happy to rise to each challenge. From glass treads with backlit colour change LEDs to stainless steel spindles featuring Swarovski crystals, Prestige has a solution for every style, taste and décor. The company has a deep appreciation of the many details that go into custom stair and railing building. “They are more intricate and detailed than people know,” says Topuschak. There are many components to stairs and they are created and designed separately from the railings. They are designed differently but come together to create those pieces of artwork in your home that are not only functional, but also stunning.” Reflecting on the 100 per cent Canadian-owned company’s 25 years of outstanding customer service, beautiful and functional designs, and forward-thinking innovation, Topuschak concludes, “We have confidence in what we build. In return our customers reward us with their loyalty.”

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a putting Good time in calgary • Golf

A Putting Good Time in Calgary visualizing is important BY JOHN HARDY

ome say putting is not only important to the game, putting is the game! The rest – the tee shot, the distance, the banter, the swings and the back swings are the journey. Putting is the destination! And with the sophisticated techniques and strategies about stance and swing, apparently even Tiger, Rory, Bubba and Phil are mere mortals when it comes to the putt. Real-life pros, like Calgary’s terrifically respected Terry Carter, chuckle and shrug about a basic putt fundamental that most people (including PGA

Terry Carter

legends) either overlook, take for granted or refuse to grasp. “Proper putting is definitely a visual art,” Carter says, “not a technical science, like most of the game. Maybe because, unlike the rest of the game, the putt doesn’t rely on swing and force. So, as force of habit or body instinct, most people flick their wrists instead of aiming and controlling their putts.” Carter and his personable Calgary teaching pros at National Golf Academy routinely coach and help their weekend warriors and other students that, when it businessincalgary.com | BUSINESS IN CALGARY September 2014 • 111

a putting Good time in calgary • Golf

“Reading the green and understanding where the slope is are basics of a good putt. you need to find the lowest part of the green, look at the hole and visualize, figure out which direction the ball will turn.” ~ Terry Carter

comes to the putt, there’s an enormous difference between a good setup and a bad setup. And that there is an art of standing and focusing on the ball. “The eyes must be on top of the ball, not the whole body,” he explains. “In a way, it’s a bit like playing pool and focusing on the cue ball and which direction you want it to go. By human nature, people often flick their wrist when they putt the ball. Maybe because there is no wind-up in putting, like the swings in the rest of the game, it’s normal to think a flick of the wrist will tap the ball toward the pin. “And of course it doesn’t,” Carter says. “It’s inconsistent for direction and distance control.” The art of golf has actually developed a mathematical formula to underscore the importance of good putts when it comes to the bottom line of a golf game: the score. With all the smooth and impressive techniques, the great swings, follow-throughs and distance, putting is where score really happens. The formula calculates that if you are an 18 handicapper, and you make 36 putts a round (two per hole), it figures out to 40 per cent of your total strokes. So, while powerful drives, stance, fluid swing and other basics get most of the average golfer’s attention, putting – 40 per cent of your score – should not be devalued or taken for granted. The experts and pros are unanimous. The putt should get as much attention, fuss and practice time as the long and short game. The most important factor when it comes to effective put112 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

ting is visualizing and mentally committing to a line. Only you know how hard you are going to hit it, so only you can determine the line you are going to hit it on. “Reading the green and understanding where the slope is are basics of a good putt,” Carter points out.”You need to find the lowest part of the green, look at the hole and visualize, figure out which direction the ball will turn.” Pros are usually patient and encouraging and emphasize that reading the slopes of the green and understanding how different grasses affect the putt will simply come with experience. As far as the actual putting “tap” is concerned, a quirky but doable putt workout routine is placing an empty 16-ounce water bottle under your right armpit (left, if you’re left-handed), making sure the water bottle stays in place with the same amount of pressure as you putt the ball back and through. It will make your hands, shoulders, arms and chest work together, creating a fluid stroke. This technique will also teach you how to take the putter back properly on line without taking it too far inside or outside because the bottle will fall out if you’re doing it wrong. The smart advice emphasizes that the body performs better when the mind is focusing on visual images, instead of words or technical instructions. The mind needs to tell the body what it wants to do, not how to do it. After enough practice, visualizing the ball rolling on its line into the hole will give your body all the information it needs to make a good putt.

Putting Stroke You may have heard time and time again that many of your shots come from around the green, therefore making a few extra putts in a round can be the difference in shooting your best score. The putting stroke looks simple but you can easily become frustrated when putts are not dropping. Here are a few key fundamentals to think about when practicing your putting. Positioning: Just like a full swing, knees bent, feel like you’re over the golf ball; your eyes should be straight over the ball even if it means choking down on the shaft of the club. Your weight should be on the forward portion of your feet evenly distributed and aimed parallel to your target or intended line with the golf ball in the middle of your stance. Grip: Very relaxed grip and hand position on the club, create a triangle from both shoulders down to your grip. This triangle will stay consistent, a pendulum motion through the swing. By maintaining this form you will avoid swinging with your hands and body which will lead to inconsistency in putting.

John Seymour Head Golf Professional Lynx Ridge Golf Club

Stroke: Take the club straight back keeping it low to the ground, you should follow-through just as much as you took the club back. This will allow your momentum to go towards the hole to allow for a good stroke. The use of the shoulders is very important in the putting stroke, the wrists do not hinge and the lower body is very quiet throughout the swing. To maintain the triangle position, a good swing thought to have is to have the top hand on the club go towards the target or hole. This will help you to follow-through which is an important fundamental in any golf shot. Lag Putting: If you are faced with a long putt, imagine a bull’s-eye around the hole. Whether it’s two, three or even four feet around the hole, make it a goal to get inside this range to give yourself the best opportunity to get down in two putts and avoid the dreaded three putts! Practice, practice, practice! John Seymour, Head Golf Professional

“

Golf is deceptively simple and endlessly complicated; it satisfies the soul and frustrates the intellect. It is at the same time rewarding and maddening and it is without a doubt the greatest game mankind has ever invented. ~ Arnold Palmer, US golfer

”

a putting Good time in calgary • Golf

For years, he recalls, it was agreed that Tiger had the best putt in the game. But, he may have lost his touch. In his opinion, Steve Stricker is currently the best putter in the game.

Carter explains, with a gentle chuckle, that even the pros like Rory McIlroy and Steve Stricker are believers in “visualization” when it comes to putts. Even the pros crouch down and mark their ball on the green at the Masters and other legend events.

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114 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

“It’s all part of visualizing. The pros usually go with ‘Titleist’ or other marking on their ball but they do use it as a directional reference. Remember, the rules are strict that, before your first shot on the green is absolutely the only time you’re allowed to touch the ball with your hands. Lots of people use a felt marker and make a line or an arrow on the ball, that will be a directional visual. “Crouch down, mark it with a coin (not a tee),” Terry Carter suggests. “Pick up your ball, clean it and carefully position it with the arrow being a visual reminder of which direction you want it to go. “And then with the proper grip, putt the ball, don’t flick your wrist.” He explains that amateurs and even the pros work on constantly improving and perfecting their putt. And the current putt-aid is an oversized handle and putter grip called “SuperStroke.” Allegedly it helps minimize the wrist motion which the pros agree is the most common putt problem. “And they sell like hotcakes,” he says. Carter is reassuring that even the PGA pros constantly work on their putts. For years, he recalls, it was agreed that Tiger had the best putt in the game. But, he may have lost his touch. In his opinion, Steve Stricker is currently the best putter in the game. With a whole lot of daring, Business in Calgary mustered the nerve to ask the seasoned Calgary golf pro if he aces The Windmill, The Whale, The Log Cabin and the other holes at Calgary mini-putts. “NO!” he roars with laughter. “I’m horrible. After 25 years of being a pro, it’s embarrassing. I look, judge direction, strategize and ... I blow it, every time. My friend just whacks it, and he wins!” So much for the art of the putt. BiC

Leading Business Connecting to solve business challenges

SEPTEMBER 2014

Our City’s Small Businesses Need Your Vote

Last year, Village Brewery won both the Community Involvement and the Small Business of the Year Award.

Public voting for the 2014 Small Business Week Awards runs from September 15 to October 15, 2014. For award information and to vote, visit SmallBusinessWeekCalgary.com. For 32 years the Calgary Chamber has celebrated the best in Calgary small business through the Small Business Week Calgary Awards. The awards provide recognition and can strengthen the position of a business in the community, receiving exposure that helps them attract new customers, business partners and leads to higher sales. It is an honour and a great accomplishment to simply be chosen as a finalist for a Small Business Week Calgary Award. Last year, Village Brewery won both the Community Involvement and the Small Business of the Year Award. At a press conference in July announcing the opening for Small Business Week Award nominations, Jim Button, co-founder of Village Brewery, encouraged all business owners to apply for an award. He described the benefits of winning a Small Business Week Award to be enormous. “Winning the Small Business Award was a huge jump for Village Brewery; it has been a great honour to be on the same list as some of Calgary’s most iconic companies such as Alberta Boot Company, Spolumbo’s and Blaskin and Lane. This really bodes well for our future.”

Button also credited the support of the Chamber and winning a Small Business of the Year Award to making Village Brewery a virtual household name. Awards are given out in five categories this year: Innovation, Customer Service Excellence, Community Impact, Environmental Stewardship, and the Breakout Business Award. All finalists in each of the five categories are eligible to be considered for the ultimate award, the Small Business of the Year Award.

Help a Small Business and Vote Today All Small Business Week Award categories are determined by you, Calgarians. Give a small business the recognition they deserve, and vote for them to win a Small Business Week Award. It’s simple and only takes a minute of your time. To learn more about the finalists and to vote for a small business for an award, go online at SmallBusinessWeekCalgary.com/Vote. Public voting runs from September 15 to October 15.

businessincalgary.com | BUSINESS IN CALGARY September 2014 • 115

2014 Board of

Directors

Chamber Member Spotlights

Executive Chair: Leah Lawrence, President, Clean Energy Capitalists Inc. Immediate Past Chair: Joe Lougheed, Partner, Dentons Canada LLP Chair Elect: Rob Hawley, Partner, PricewaterhouseCoopers LLP Second Vice Chair: Denis Painchaud, Director, International Government Relations, Nexen Inc. Vice Chair, Finance: Bill Brunton, Chief Communications Officer, Calgary Board of Education CEO: Adam Legge, President and CEO, Calgary Chamber

Directors David Allen, President, Calgary Land, Brookfield Residential Properties Inc. Carlos Alvarez, Audit Partner, KPMG Lorenzo DeCicco, Vice-President, TELUS Business Solutions Rob Hawley, Partner, PricewaterhouseCoopers LLP Wellington Holbrook, Executive Vice-President, ATB Financial Guy Huntingford, Chief Executive Officer, Urban Development Institute

The Calgary Chamber is proud to represent many Calgary businesses large and small; this month we are highlighting some of our industry leading members.

S Savanna Energy Services Corp.

Savanna Energy Services Corp. Savanna Energy Services Corp. is a premier North American energy services provider headquartered in Calgary. Their primary offerings include conventional drilling, hybrid drilling, well servicing and comprehensive oilfield services such as oilfield equipment rentals. Savana’s leading technology includes PLC-controlled service rigs and patented hybrid drilling rigs. With a fleet of 100-plus drilling rigs, and 100-plus well service rigs, Savanna has expanded into major markets in the United States and Australia. Focused on maintaining industry leadership in performance and safety, Savanna also brings value to customers through their partnerships with numerous aboriginal communities in Western Canada. For more information visit Savannaenergy.com.

Bruce Okabe, Chief Executive Officer, Travel Alberta Phil Roberts, Vice-President, Axia NetMedia Corp Linda Shea, Senior Vice-President, AltaLink Mike Williams, Executive Vice-President, Corporate Services, Encana Management Adam Legge – President and CEO Michael Andriescu – Director of Finance and Administration Kim Koss – Vice President, Business Development Scott Crockatt – Director of Marketing and Communications

Hopewell Residential Management LP Hopewell Residential Management LP (Hopewell Residential) is one of Alberta’s leading residential development companies, building uncommonly stylish homes in the world’s most sought-after communities for more than 15 years. Unified with Sabal Homes, Hopewell Residential is a fully-integrated residential land development and homebuilding company, which prides itself on market leadership through the passionate pursuit of excellence and the goal of creating a valued legacy of outstanding new communities and beloved new homes. For more information visit Hopewell.com.

Rebecca Wood – Director of Member Services Justin Smith – Director of Policy, Research and Government Relations Leading Business magazine is a co-publication of the Calgary Chamber and Business in Calgary Calgary Chamber 600, 237 8th Avenue S.E. Calgary, Alberta T2G 5C3 Phone: (403) 750-0400 Fax: (403) 266-3413 calgarychamber.com

Shaw Charity Classic For the second straight year, Canyon Meadows Golf and Country Club hosted the PGA Tour’s Champions Tour event, the Shaw Charity Classic on August 27-31. The committed vision of the Shaw Charity Classic is to raise significant dollars for charitable organizations in the community that support children and youth most in need, while bringing a worldclass family-friendly, marquee event to Calgary. In 2013 the tournament was recognized with numerous awards including an Outstanding Achievement Award by the PGA Tour for a first-ever event on the senior circuit and the Calgary White Hat Award for Best Festival/ Event/Attraction. This year Rocco Mediate, Fred Couples, Bernhard Langer, Mark Calcavecchia, David Frost, Tom Lehman and Fred Funk were amongst the golf legends who teed it up. The Shaw Charity Classic would like to thank all sponsors and partners, corporate supporters, spectators and volunteers for making this year’s event a tremendous success. For more information on how to get involved with the 2015 Shaw Charity Classic, please visit ShawCharityClassic.com.

116 • September 2014 BUSINESS IN CALGARY | businessincalgary.com

NEW Vehicle Rental Location at the Fort McMurray Airport!

Upcoming Events For details and to purchase tickets for any of the Calgary Chamber’s events please visit CalgaryChamber.com.

Small Business Week First started by the Business Development Bank of Canada 35 years ago, the Calgary Chamber along with its partners has hosted the largest Small Business Week celebration in Calgary for decades. The Calgary Chamber will host Small Business Week Calgary 2014 powered by ATB Business on October 20-24th, 2014 to pay tribute to the important contributions that Calgary small businesses make to our economy, especially given that Calgary is Canada’s small business capital.

Vote for a Calgary Small Business Week Award finalist It is an honour to be a finalist for a Small Business Week Award. The winners of these awards often grow into Calgary’s medium and large businesses. Past winners have gone on to become pillars of our community, and include Alberta Boot Company, Blaskin and Lane, Spolumbo’s Fine Foods and Deli, Village Brewery as well as many others. This year’s award categories include the Innovation Award, the Customer Service Excellence Award, the Community Impact Award, the Environmental Stewardship Award, and the Breakout Business Award. All finalists are eligible for consideration to win the prestigious Small Business of the Year Award. Voting runs from September 15 to October 15, 2014. For more award and finalist information, as well as to place your vote for our city’s greatest small businesses, visit SmallBusinessWeekCalgary.com.

Celebrate our city’s greatest small businesses at the 2014 Small Business Week Expo and Awards show The highlight of Small Business Week every year is the Small Business Week Expo and Awards show. It is the time for small businesses to shine and be recognized for the contribution they make to Calgary, and an opportunity for all business to stand up and celebrate with them. This event attracts over 300 attendees and will be held on Thursday, October 23, 2014 at TELUS Spark. To buy tickets to the Expo and Awards show, visit SmallBusinessWeekCalgary.com.

Benjamin Barber: If Mayors Ruled the World Join us for an exclusive evening of wine, delicious appetizers and conversation with the internationally renowned political theorist, and author of If Mayors Ruled the World, Dr. Benjamin Barber. Taking place at The Bow’s 54th-floor Sky Garden, Dr. Barber will lead an insightful discussion on how great cities around the world are supporting their business communities and how through an effective municipal structure these cities’ municipal governments and private sectors are working well together to drive social, political and economic progress. For more information and to buy tickets, visit CalgaryChamber.com.

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PiPeline exPosition RetuRns to the CalgaRy telus Convention CentRe The International Pipeline Exposition (IPE) takes place this month at the Calgary TELUS Convention Centre (CTCC). The Exposition is the world’s largest gathering of pipeline professionals who will come to Calgary to learn about new industry technologies, major project updates, regulatory changes, and to gain knowledge about corporate changes that affect the pipeline industry. Calgary has a highly visible profile in the international energy industry and the city attracts large oil and gas focused events to the city. The IPE and its conference partner The International Pipeline Conference attract over 1300 international delegates, with more than 5000 attendees. The Convention Centre and the adjacent Hyatt hotel are ideally located in the city’s downtown core to meet the needs of conference guests. The Calgary office of dMG Events, the event organizer for both the IPE and the Global Petroleum Show (GPS), employs more than 50 staff to manage the many world class energy focused events hosted in Calgary. Wes Scott, Executive Vice President at dMG, states, “The economic impact for Calgary of events like the IPE and the GPS is substantial and we are proud to help bring thousands of international visitors to Calgary every year.” Wes explains the role of the central Calgary venue: “The CTCC and the Hyatt hotel have hosted the IPE for over ten years and the Centre is an ideal facility for this event. We have a great working relationship with the team at the CTCC and want to continue working with them. However, this year we are at capacity and will face challenges in the future in hosting events like the IPE at the Centre without expansion. We need a world class venue to match Calgary’s position as a world class city. As dMG, and the energy industry, continue to grow we would like to bring more international events to Calgary and to the Convention Centre. International guests want to stay downtown and be close to a range of hotels and restaurants and we need more convention space downtown to meet the needs of our guests.” Calgary is an international hub for the energy industry with many of the industry’s corporate head offices located in downtown Calgary. Events like the International Pipeline Exposition play a vital role in bringing international visitors to Calgary and facilitating growth in the Calgary economy and the energy industry. Much of the CTCC’s annual economic impact is due to large events such as the IPE, and the partnership between the energy industry and Calgary’s downtown convention facility must continue. The Convention Centre has remained a key asset for Calgary for almost 40 years and we should ensure the investment continues so larger events like the IPE are not moved to other cities due to lack of suitable facilities in Calgary. calgary-convention.com expandthecentre.ca businessincalgary.com | BUSINESS IN CALGARY September 2014 • 119

Tip of the Hat

Nominate an exceptional service provider for a Calgary White Hat Award

ach May, Tourism Calgary hosts the Calgary White Hat Awards, an evening dedicated to celebrating excellence in customer service. Calgary is a city known for western hospitality, demonstrated through genuine warmth and friendliness. Through the years, the white cowboy hat has become a symbol for Calgary and our legendary western hospitality. Since 1961, the White Hat Awards has been one of the most unique tributes to outstanding customer service. Presented to tourism and hospitality industry employees who offer outstanding customer service, the awards honour individuals who have excelled in leadership and performance in 20 different categories. One in 10 working Calgarians are employed by the tourism industry. In 2013, Calgary welcomed 7.5 million visitors who contributed $1.6 billion to the local economy through visitor spending, highlighting the importance of exceptional service and hospitality. Last year, more than 600 White Hat Award nominations were accepted, submitted by guests, co-workers or managers of individuals in the service industry who have direct, daily contact with visitors and guests. The nominees distinguished themselves by promoting Calgary through exemplary customer service. Once the nominations close, nominees are invited to interview with industry professionals who evaluate the candidates according to a pre-established adjudication system. Nominees are assessed on their enthusiasm, professionalism and dedication to tourism. Final scores are tabulated and verified by a third-party auditor, then reviewed by members of the Calgary White Hat Awards nomination committee. Three finalists are identified in each category and one individual is selected as the recipient of the coveted White Hat. Nominations for the 2015 White Hat Awards are now open. With 25 categories that recognize a variety of hospitality and tourism professionals from best server, to best front-line retail professional to best ground transportation driver, the White Hat Awards are a true recognition of the hard working people who make significant contributions to Calgary’s standing as a great place to visit and to live. Visitors to our city and Calgarians alike are encouraged to nominate someone deserving for the 2015 White Hat Awards. Help us recognize their outstanding achievements and commitment to their professions by nominating your favourite

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customer service stars for one of 20 industry categories, or for one of five honorary White Hat Awards; the Mayor’s White Hat Award, recognizing an individual who has made a significant and recognizable contribution to Calgary’s tourism industry, the Doug Johnson Service Award, honouring an individual’s commitment and longevity in the tourism industry, or for one of three White Hat of the Year Awards, in the categories of: festival/event/attraction, accommodation and restaurant. Register your nominations for the 53rd annual Calgary White Hat Awards at visitcalgary.com/whitehat before Dec. 31, and be sure to join us May 13, 2015 to celebrate the best in the business.

How Perceptions Research Informs an

Effective Marketing Campaign

ach year, Calgary Economic Development launches a national marketing campaign aimed at sharing the story that Calgary is not only a great place to make a living, but to make a life. Building effective marketing campaigns for Calgary is important because often these campaigns are a catalyst to starting a discussion about moving to the area. It’s interesting to look at what people think about Calgary, but it’s more important to consider how those perceptions are starting to shift so that Canadians are increasingly seeing Calgary as a vibrant place with endless opportunities. In order to understand current perceptions of Calgary from an economic and reputational perspective, Calgary Economic Development recently conducted perception research in five targeted Canadian markets. The study was designed to: • Understand overall perceptions of Calgary as a workplace or study destination; • Determine key barriers, issues and opportunities that impact perceptions; and • Understand what key messages will resonate most strongly to grow the reputation of Calgary and encourage relocation. Overall impressions of Calgary are favourable and improving across all markets. Calgary is perceived as an entrepreneurial and innovative city with a friendly, energetic, welcoming, young population, offering a high quality of life, a variety of recreational activities and safe walkable communities. Calgary is also viewed as a businessfriendly city with a strong and growing economy, and many business operators would consider moving or expanding their business here. Calgary ranks third overall in the group of cities they would consider moving to for work, study or establishing a business. With only Victoria and Vancouver scoring more strongly, Calgary is firmly in the top tier of destinations in Canada. People from Vancouver, Montreal and Halifax express a slightly higher likelihood of moving to Calgary than those from Toronto and Ottawa and with familiarity increasing the likelihood of moving, Vancouverites would be the most likely to relocate to Calgary. While the perceptions of Calgary are positive, there are perceived challenges in moving to Calgary including cost of living and affordability. Additionally, there is still a lack

of familiarity with the breadth of activities and recreation opportunities as well as a continued perceived lack of diversity and culture. While most expressed that their perceptions of Calgary were improving due to conversations with friends and family, the strong economy and the visibility of Mayor Naheed Nenshi, some indicated their perceptions had worsened due to the reputation of the oilsands and political conservatism. With this knowledge in hand, Calgary Economic Development’s national campaigns are developed and the research influences which messages and imagery are included.

One of the biggest reasons people cite for having a better opinion of Calgary is what friends and family who live in Calgary have to say. Calgary Economic Development focuses on attracting businesses and skilled workers to the city. When combined with labour market data, this research helps determine where the people who would consider, and are actually likely to move to Calgary, are located. One of the biggest reasons people cite for having a better opinion of Calgary is what friends and family who live in Calgary have to say. What all of this research indicates is that the promise of economic prosperity isn’t enough to influence a move to Calgary. More needs to be done to inform others of Calgary’s transportation connections to the rest of the country, love of winter activities (it’s not THAT cold; it just that some people are underdressed), culture diversity, the local food scene, music festivals, and other cultural elements and attractions in the city. Calgary is a great place to live and Calgary Economic Development will continue to spread this message to the rest of Canada to attract businesses and people to the city to make a life.

businessincalgary.com | BUSINESS IN CALGARY September 2014 • 121

Technology and competition on display at

Tech Showcase 2014

BY ANDREA MENDIZABAL

Thursday, Sept 11, 2014 | 3:00 - 7:00 PM | Alastair Ross Technology Centre, 3553 – 31 Street NW

et your tech on at Innovate Calgary’s annual Tech Showcase, where technology and competition take centre stage for one of Calgary’s largest tech sector events showcasing some of the city’s most innovative, early-stage technology companies. An afternoon of electrifying energy, interactive technology displays and a grand pitch competition, Tech Showcase shines the spotlight on the outstanding innovation happening right now, in your own backyard. Take a stroll through the Alastair Ross Technology Centre (ARTC) and browse the exhibit halls to see some of the newest advanced technologies in Calgary, from robotics demonstrations and unmanned aerial vehicles to the latest in the medical and life sciences, software, digital media, energy, oil and gas, and more. Afterwards, take in the Perfect Pitch Contest as tech entrepreneurs vie for the Perfect Pitch prize package. Participating entrepreneurs will deliver their perfect 60-second pitch to a team of judges comprised of seasoned investors and entrepreneurs. The top three scoring companies will take to the stage and pitch to the community, and the crowd will vote for the company with the best pitch. Up for grabs and awarded to the standout company is a prize package valued at more than $25,000 that includes a $2,000 cash prize plus a host of in-kind prizes and services to help accelerate the winning company’s business. Some of this year’s prizes include a Canadian patent and trademark availability search courtesy of international law firm Bennett Jones, a choice of brand and marketing package from boutique advertising and marketing agency Reality Engine, and a one-year connected membership with the Calgary Chamber. The display of ingenuity does not stop there. Head outside to the Bennett Jones Event Tent where more hands-on technology is ready to be explored. If you’ve worked up an appetite, head

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over to YYCFoodTrucks row and grab a bite from some of the city’s favourite mobile eats. “Tech Showcase is a venue for Calgary’s advanced tech sector to gain exposure and build connections, and it’s also a place where we can show Calgarians of all ages some of the finest technologies that are being developed in our city’s vibrant tech community,” says Dave MacKillop, manager of the ARTC. More than 500 Calgarians are expected to walk through the doors of the ARTC, a building dedicated to supporting the growth of Calgary’s advanced technology sector, to take part in the innovative, dynamic and entrepreneurial spirit that lives here. Tech Showcase comes together with support from the community including this year’s 2014 sponsors comprised of: executive sponsors Bennett Jones and Reality Engine; principal sponsor Alberta Deal Generator; associate sponsors the Calgary Chamber, Futurpreneur, Design4Change and THECiS; and event supporter Wedge Networks. Celebrating its 15th year, Tech Showcase runs as part of Beakerhead week, a smash up of art, science and engineering where more than 100 organizations come together to put on more than 50 events throughout the city over a five-day period. This year, Beakerhead runs from September 10 to 14 and includes an amazing program of events and installations including the international premiere of a giant walk-through brain, the North American premiere of the world’s first self-supporting, climbable social sculpture, and Canada’s first sustainable energy ferris-wheel-turned-dining-room. To learn more about Innovate Calgary’s Tech Showcase and to register for this free event, visit innovatecalgary.com/ events/techshowcase. To learn more about Beakerhead and for a full listing of Beakerhead events happening around Calgary, visit Beakerhead.org.

G IN L AT FU BR NG ES LE NI U 4 CE EA LOG 197 M A E DI INC S

ca lg ar yco nv en tio n. co m

LET’S MEET THE FUTURE TOGETHER

CELEBRATING 40 YEARS OF PARTNERSHIPS FORGED C C EL EX REA EBR SI CH T A NC A IV TI E 1 NG E NG 9 7 ES 4

THANKS, CALGARY, FOR BEING PART OF

E CO O 4 BRA 0 NN F G Y TI EC LO EAR NG TI BA S ON L S

CE L

MarketingMatters • David Parker

MarketingMatters

By DAVID PARkER

t has been a very busy summer for Arlene Dickinson running to and from Toronto where her Venture Communications office is picking up new accounts such as Lake of Bays Brewing Company, makers of premium craft beer, and the County of Northern Lights to help promote its economic development. But it is in Calgary where activity has been at a high since the agency was forced to move out of its former location in the old Victoria Park School thanks to flood damage, and relocate to its own building just west of Crowchild Trail along Kensington Road NW – next door to the new Co-op Wines Spirits Beer store. Venture Communication has settled into the Jerilyn Wright and Associates-designed top two floors of the building that many remember as the longtime home of UMA Engineering, and Dickinson tells me she is planning to convert the 7,000 square feet on the main floor as a cooperative for the creative industry with offices and shared meeting spaces. And later Venture will open a community coffee shop on the corner entrance to its building. •••••••••••••• Since partners Adam Rosa, operations; Christian Keon, marketing; and Cam Standish, creative; launched RedCity Creative Agency just three years ago in a 700-square-foot space in Fairey Terrace in Victoria Park, they have been quietly picking up new accounts and staff members.

Today, relocated into character offices on 10th Street NW overlooking the busy sidewalks, they have a staff of six, great clients and new business partners. The new partners are Larry Shelley of Citrus Capital Partners, Calgary Flames Ken King, and Jeff Bradshaw, who runs V Strategies. All are keen members of the Rotary Club of Calgary who relied upon RedCity to promote its 100th anniversary gala. Two of their early accounts were Evans Consoles and Ridley’s Cycle (both are still with them), followed by Westside Recreation Centre that keeps them busy with everything from websites to hanging banners, and a regular full-page advertisement on the inside cover of Impact Magazine. Other prime accounts in RedCity’s portfolio include Stone Creek Resorts, promoting its fine properties at Silvertip in Canmore and Eagle Ranch in Panorama, West Canadian, Rogers and Vintri Technologies. Newest is Neal’s Yard Remedies – the classy new shop on 4th Street SW that sells organic, natural health and beauty products. •••••••••••••• Karo Group’s Calgary office has been able to add more staff to keep up with its increasing workload. Scott Hartley, with 16-plus years of industry experience, is Karo’s new director of client services. Hartley was with Rare Method and William Joseph and his career also includes seven years with RBC in its marketing group in Toronto and five years with WestJet as part of its sponsorship and marketing team. Caitlin Kangles has rejoined Karo’s account team and Rafael Terçarolli is on board as the new digital project manager.

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••••••••••••••

The cliff-edge award-winning Glacier Skywalk that allows visitors to stand on a glass-floored observation platform 280 metres above the Sunwapta Valley has earned worldwide media attention. It was designed for Brewster Travel by Calgary’s Sturgess Architecture and Read Jones Christoffersen and it was local designer, fabricator and installer Heavy Industries that completed the large, faceted elements along the walkway that are made of weathering steel. The photos on the Heavy Industries website made me squirm but it has proven to be a very popular attraction. Latest installation of its public art pieces are Grove of Light at the Edmonton Valley Zoo; I really like its bird’s nest boardroom in the Esker Foundation Gallery; and – of course – the Wonderland girl’s head sculpture outside The Bow. •••••••••••••• Leigh Blakely and Phil Copithorne over at C&B Advertising are having a great year helping Heritage Park celebrate its 50th anniversary resulting in all-time attendance records, and providing great campaigns for the Calgary Stampede and Travel Alberta. And they recently got excited with the award as agency of record for First Calgary Financial after undergoing a three-phase RFP process. With over 500 employees and some 80,000 members served by 16 locations in the Greater Calgary Area, First Calgary is another fine brand in C&B’s portfolio of star clients.

Parker’s Pick: Marketing for Bocce by WAX.

PM41126516

Fall 2014 • Page 63

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