March 2013 Business in Edmonton

March 2013 $3.50 businessinedmonton.com

THE RESTAURANT GAME OF LACHANCE

Century Hospitality Group beats the odds with an exceptional story of teamwork and success.

Edmonton’s Bright Construction Forecast

It’s Not Easy Being a Junior Junior oil and gas companies get tough and feisty in uncertain economic times.

Meetings & Conventions Calgary Meet the new Calgary.

BOMA NEWS: Official newsletter of ‘Building Owners and Managers Association’ of Edmonton.

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THIS IS NOT AN AD FOR ROCKY MOUNTAIN EQUIPMENT. But it is an ad for everything we stand for. Things like honesty, integrity, and helping you put food on your family’s table. But above all, it’s an ad to let you know that none of those things are going away because we’re calling ourselves Rocky Mountain Equipment. Because even if the name on the sign is changing, our values won’t.

Introducing the new Rocky Mountain Equipment DEPENDABLE IS WHAT WE DO.

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

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

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

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

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

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

10 years

Living Leadership

Leaders never rest.

No matter what the hour, or how many hours they have in front of them, leaders stay the course. Through good times and bad, we’ve done just that, custom building solutions to help our clients do what they do best‌lead.

Because Alberta means the world to us. atb.com/Leaders

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Trademarks of Alberta Treasury Branches.

SECTION CONTENTS TITLE

MARCH 2013 | VOL. 02 #03

View our elect ronic issue of this mon th’s mag azin e onlin e at www .busi nessi nedm onto n.com

Features

Regulars

Junior oil and gas companies get feisty and Edmonton is under construction. Plenty of good things going on in this forward-thinking, growing city.

Each and every month

12

OFF THE TOP Fresh News across all sectors.

77 EDMONTON ECONOMIC DEVELOPMENT CORPORATION

Cover THE RESTAURANT GAME OF LACHANCE

77

BY MARK KANDBORG

Century Hospitality Group beats the odds with an exceptional story of teamwork and success.

18

Company Profiles 10 D RIVING FORCE

BY MARK KANDBORG

Celebrating their 35th Anniversary

29

S2 ARTCHITECTURE

BY MARY SAVAGE

Celebrating their 20th Anniversary

53

Features

M EETINGS & CONVENTIONS CALGARY

BY DEREK SANKEY

Meet the new Calgary

74

H IGHLAND MOVING & STORAGE BY MARK KANDBORG Celebrating their 75th Anniversary

6

March 2013 | Business In Edmonton Magazine | www.businessinedmonton.com

24

IT’S NOT EASY BEING A JUNIOR BY JOHN HARDY

Entrepreneurs.

They turn us on.

To new ideas, new ways of thinking and new possibilities. We’ve shone the spotlight on entrepreneurs for 20 years — and we’ve only just begun.

Nominate starting March 1.

Find out more at ey.com/ca/EOY! And follow us on Twitter: @EYCanada.

20 years of inspiration

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20 years of inspiration

National sponsors

Platinum sponsors

Gold sponsor

Ernst & Young is a proud supporter of

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NEWS FROM THE MONTH

Features PUBLISHER BUSINESS IN EDMONTON INC.

ASSOCIATE PUBLISHER Brent Trimming

brent@businessinedmonton.com

continued

Junior oil and gas companies get feisty and Edmonton is under construction. Plenty of good things going on in this forward-thinking, growing city.

EDITOR Mark Kandborg

EDITORIAL COORDINATOR Nerissa McNaughton

LANDLOCKED: AN INDUSTRY WITH NOWHERE TO GO

COPY EDITORS Nerissa McNaughton Nikki Mullett

BY DEREK SANKEY

ART DIRECTOR Jessi Evetts

jessi@businessinedmonton.com

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

CONTRIBUTING DESIGNERS

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ADMINISTRATION Nancy Bielecki Sarah Schenx info@businessinedmonton.com

REGULAR CONTRIBUTORS Jason Brisbois

THIS ISSUE’S CONTRIBUTORS Mark Kandborg Derek Sankey

John Hardy Nerissa McNaughton

PHOTOGRAPHY Cover photo by Epic Photography Inc.

ADVERTISING SALES Evelyn Dehner Rachel Katerynych Bobbi Joan O’Neil Carla Wright Renee Neil

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45 BOMA NEWSLETTER Official newsletter of ‘Building Owners and Managers Association’ of Edmonton.

70 EDMONTON’S BRIGHT CONSTRUCTION FORECAST

Return undeliverable Canadian addresses to circulation dept. #1660, 10020 - 101 A Ave. NW, Edmonton, AB T5J 3G2

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March 2013 | Business In Edmonton Magazine | www.businessinedmonton.com

| BY NERISSA MCNAUGHTON

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35 YEARS ON THE FORCE A

BY MARK KANDBORG

lot can happen in 35 years. Mozart can grow up and assemble notes in a way that will change the world. Excited kids can burst through school doors into a summer filled with possibility thirty-five times.

And an idea can develop from a simple thought put into action to a thriving company with great memories and even greater success.

“When I think back over the last 35 years, it’s hard to believe,” says Jeff Polovick, president of DRIVING FORCE, of their anniversary this month. “I feel very fortunate for the opportunity to have worked with such great team members and customers. We’ve purchased, leased and sold thousands of vehicles, and it’s been lots of fun.”

As a result of Polovick placing so FROM LEFT TO RIGHT IS JEFF POLOVICK; FOUNDER AND PRESIDENT; GARY NELNER, CFO; CLAUDETTE LAROCQUE, DIRECTOR, MARKETING & COMMUNICATIONS; MARK NOLIN, GENERAL SALES/ASSET CONTROL MANAGER; JOHN BLIMKE, COO. much value in surrounding himself with a happy and productive team, DRIVING FORCE has received a very special gift for their huge difference.” As the saying goes, you can’t control the wind, 35th anniversary, one that couldn’t please him more. DRIVING but you can adjust the sails.

FORCE has earned the distinction of making the list of CanaThis sense of community doesn’t stop at the DRIVING FORCE da’s “50 Best Managed Companies” — for the seventh year in gates. As Polovick sees it, “If you’re living in a community, you a row. “I’m extremely proud. It says so much about the people have to participate, enhance relationships. Encourage role modhere. It’s got nothing to with me,” says Polovick. els and support leadership.” The walls of the head office in EdThe evolution of DRIVING FORCE is truly one of Edmonton’s monton are lined with photographs that demonstrate this comgreat business success stories. Polovick started Grove Rentals and mitment to developing and maintaining affiliations with local Leasing in a small service station in Spruce Grove, Alberta. Since community leaders. Former Eskimo Henry “Gizmo” Williams, then, he’s guided it unflinchingly through a mercurial economy Oiler legend Dave Semenko, Olympic gold medalist Jamie Salé, to become DRIVING FORCE Vehicle Rentals, Sales and Leasing. tri-athletes, race car drivers — the list goes on. Judging by the With a standing inventory of nearly 10,000 vehicles at 20 locapositive messages scrawled thereon, the support goes both ways. tions and over 375 employees in Alberta, B.C., Saskatchewan, YuDRIVING FORCE is currently focusing on helping the Saskon, the Northwest Territories and Nunavut, DRIVING FORCE katchewan Association for Community Living, an association is now one of the country’s largest vehicle rental and suppliers. dedicated to creating opportunities for people with developmental Although they are primarily known as a leasing company, disabilities. As honorary chairman, Polovick has helped raise over retail sales are a big part of DRIVING FORCE as well. They $750,000 for the organization in Edmonton. DRIVING FORCE sold more than 3,800 used vehicles last year. “We’ve weathered itself pledged $10,000 to the association for the next three years. some pretty heavy economic storms since 1978”, he points out.

Not content to simply put their money where their mouth is, the “Having a retail component has helped to recession-proof our company has also hired a number of workers with developmental business. When things got slow out there, when companies disabilities, welcoming them into the DRIVING FORCE family. were scaling down their fleets to manage costs, we adjusted Polovick’s company is dedicated to keeping individuals and our inventory.” When dark clouds rolled in and whitecaps encompanies on the move and the DRIVING FORCE team is just croached, Polovick and his team chose to change tack and sail as interested in keeping their business in motion. They know through rather than batten down the hatches. “We were able to that the future is always just around the corner. “We’re taking move assets depending on the market. If we had units sitting on an aggressive position on information technologies, bringing a the lot, we’d sell them. It kept the money flowing. That made a lot of resources online to develop and utilize them in our ve-

drivingforce.ca

35

YEARS

THE ANNUAL AWARDS NIGHT IN SASKATOON JANUARY 30, 2013. BACK ROW: GEORGE LANGE - CONTRACT DRIVE;, RICH PREDDY - CONTRACT DRIVER; CHRIS OOMS - DRIVER / DELIVERY; MIKE HRYCAN - SALES CONSULTANT; MATTHEW DYCK - DETAILER; JAMES KRAWCHUK - SASKATOON BRANCH MANAGER; AND JEFF POLOVICK FOUNDER AND PRESIDENT. LEFT TO RIGHT FRONT ROW: KRISSY BAUMGARTNER, - RENTAL CONSULTANT; MICHELLE LUKIAN - RENTAL CONSULLTANT; ANGELA HEBERT - RENTAL CONSULTANT; ANGELA CHAYKOWSKI - F & I ASSISITANT. MISSING: ORANGE DE JESUS - FLEET MAINTENANCE MANAGER

hicles,” he says. These technologies include items such as tracking GPS and telemetrics. “There are hundreds of GPS products out there, and there are a lot of factors that go into choosing what’s best for our customers. We’re in the process of doing that right now.” And telemetrics? “That’s a technology that can have a real impact on the way companies keep track of the vehicles in their fleet. Where they’re going, what they’re doing and when” he says. “At the simple end, these systems monitor movement, but they can also keep track of speeding and hard braking, sending alerts back to the company by email.

Our vehicles will be able to know when they’re being driven outside of work hours or specific geographic zones.” The big idea is that access to this level of information puts control back in the hands of those who pass out the keys each morning. It’s been said that information is power, but in this case it’s a road to greater efficiency and cost savings. Of course, it will be up to the individual customer whether, and to what extent, they take advantage of these emergent technologies. “Our job right now is determining the cost of delivering these options.”

There’s another mission Polovick has set for himself to complete, and it’s been a particularly happy and rewarding one. He’s spent weeks traveling across Western Canada and the North to personally thank his team members for the past year and celebrate with them for being recognized by their peers for doing such a great job of satisfying their customers.

“Building a sustainable business has given me great satisfaction,” Polovick says about the passing of this month’s milestone. “These

past 35 years have shown that our values and principles have stood the test of time.” As for being included in the “Best Managed Companies” club again this year, he considers it to be “icing on the cake.

It’s the best third party endorsement there can ever be.”

The definition of any driving force is a power that compels ever forward. That seems to describe Polovick’s company perfectly. So, where does his DRIVING FORCE go from here?

“We’re going to be doing lots of the same things, naturally,” he says, “but there are always new opportunities on the horizon.”

If the past 35 years are any indication, we can expect Jeff Polovick, his hand steady at the wheel, to lead his expertly managed team straight toward those opportunities and beyond. In fact, construction has already begun on 12,000 sq. foot replicas of the Edmonton West End location in Langley and Fort St. John, both scheduled to open in June. Add to that the opening of a brand new location in Terrace, B.C. this month and it’s easy to see that Polovick’s FORCE is one to be reckoned with for years to come.

Happy Anniversary, Everyone. Jobs well done.

11025 - 184th Street Edmonton, AB T5S 0A6 Phone: 780-641-1090 • Toll Free : 1-800-936-9353

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NEWS FROM THE MONTH

CONSTRUCTION

MARTYSHUK HOUSING WORKS TO ABOLISH HOMELESSNESS IN EDMONTON

Martyshuk Housing believes in safe, affordable housing for everyone, regardless of their background, lifestyle, ability or creed. Founder Dave Martyshuk launched Martyshuk Housing in 2004 as an oil and gas housing business. Three years later a housing crisis hit Edmonton and more than 200 homeless gathered into what became known as Tent City. Moved by their plight, Martyshuk and his team looked for ways to provide accommodations for those without. Soon Martyshuk Housing was receiving steady calls from agencies looking for assistance in accommodating hard-to-house individuals. Martyshuk modified the company’s objective and developed a business plan designed to assist anyone seeking affordable housing.

This unique business model has enabled the company to help hundreds of homeless individuals in Edmonton. “We have simply made a business out of the abolishment of homelessness,” states company owner Dave Martyshuk.

Martyshuk Housing is not a nonprofit organization nor a government sponsored program. “The fact that we are a private sector allows us to be more creative,” Martyshuk says. “We use only private capital. This means, if we run into a problem, we can use financial means to fix it quickly; usually within a couple of days.”

Approximately 60% of Martyshuk’s clients are classified as “high need.” While his clients are primarily those without credit or financial resources to rent single accommodations, Martyshuck housing residents tend to hold onto these accommodations longer than anywhere else. Many find comfort in the community living arrangements, as they interact with roommates

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A DOWNTOWN PROUD! EMPLYOEE HARD AT WORK.

A KITCHEN FROM ONE OF THE MARTYSHUK HOUSING HOMES.

sharing the same background. All appreciate being treated with respect and dignity, no matter their existing circumstances.

March 2013 | Business In Edmonton Magazine | www.businessinedmonton.com

Today, Martyshuk Housing is the go-to organization for agencies seeking housing for at-risk individuals.

Martyshuk gets regular calls from

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NEWS FROM THE MONTH

Boyle Street Community Services, Bissell Center, Edmonton Police Service, hospitals, MLAs, Alberta Mental Health, and McMan Youth Family and Community Services Association to name a few. Andrea Fuller from Corrections Transitions Team sums up the thoughts of groups seeking placement for clients by stating, “There are shelters, the housing first programs that have waiting lists, and then there is Martyshuk Housing. Our clients successfully utilize all three housing services, but Martyshuk Housing has been able to offer our clients somewhere exceptionally safe, stable, and immediate.

Without Martyshuk Housing, we would be sending our clients to shelters, which often times are too full to accommodate. As a result, our clients sometimes end up staying with friends and/or family that do not provide them with a healthy environment to live in.�

Recently, Martyshuk Housing along with the Downtown Business www.businessinedmonton.com | Business In Edmonton Magazine | March 2013 CanadaSharperEye_BIC2/3pageVert_ol.indd 1

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NEWS FROM THE MONTH

Association and Boyle Street Community Services created Downtown Proud! The Downtown Proud! crew is compromised of formerly homeless Edmonton residents that remove an average of 1,000 pounds of garbage each week from the downtown area.

“Our success comes from adapting our services to clients and not clients to our services,” concludes Martyshuk. It is this positive, forward-thinking attitude that may see his dream of affordable housing for everyone in Edmonton realized during his lifetime. BIE LOCAL BUSINESS

RESPONSE TO NEW PIVOT DATA CENTRE EXCEEDS EXPECTATIONS

Pivot Data Centres’ Edmonton facility opened in August 2012 and it has already surpassed projected demand. “The demand in Edmonton has exceeded our expectations in the period of five months,” says Pivot’s president and CEO, Michael Koury.

“We have exceeded 50 per cent of our capacity. Therefore we have accepted an option on additional space that will double the size of our facility in Edmonton. We are very excited.”

Pivot Data Centres provides co-location IT solutions for organizations of all sizes. The company originated in 1989 as Care Factor, a company that designed, built and helped manage data centres for clients. As time and technology evolved, business owners became aware of the expense and maintenance required to keep their computer data and electronic operations running securely from their own data centres. Companies wanted to use their capital to further the main goals of their organizations, so they began turning to co-location data centres to house their IT operations.

While the IT co-location idea is popular in the United States, it is just now gaining momentum in Canada. The last few years have seen an exponential increase in companies investing in this concept. “There is a pent-up demand for facilities like this in Edmonton,” Koury points out. “We are getting interest from both the private and public sector.”

Edmonton’s $30 million state-ofthe-art facility accommodates clients from all over North America. Pivot’s clients have 24/7 access to the facility. The reason for this, Koury explains, is that while each client can access their files remotely, technicians prefer to make physical changes to their systems during their com-

MICHAEL KOURY, PRESIDENT AND CEO, PIVOT DATA CENTRES

pany’s downtime. This can be at 3 a.m. or on weekends. A comfortable lounge complete with kitchen facilities allows clients to relax and refresh when a break is needed from working with the computer equipment.

No detail is overlooked in keeping Pivot’s client data safe and accessible.

Pivot has taken extensive measures to ensure that the facility has uninterrupted power, cooling and network connectivity. Pivot’s is located well away from high-risk zones such as flight paths and flood plains. Power supplies are on separate feeds from downtown city centre to protect each client’s IT assets in case of power failures. Entrances and exits are tightly

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March 2013 | Business In Edmonton Magazine | www.businessinedmonton.com

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NEWS FROM THE MONTH

PIVOT DATA CENTRE SUITE SERVER RACKS + RAISED FLOOR

controlled through such measures as front desk security, key cards, mantrap doors, electronic surveillance and biometrically-controlled access points.

This facility is Pivot’s third data centre (two exist in Calgary) and the largest of its kind in Edmonton. You can learn more about Pivot Data Centres at www.pivotdci.com. BIE TECHNOLOGY

TEC EDMONTON PROVIDES TOOLS FOR TECHNOLOGY START-UPS

ADVANCE YOUR CAREER ADVANCING CAREERS. Are you an HR professional who takes pride in developing others?

TEC Edmonton is a business accelerator for technology entrepreneurs.

Started in 2006 as a joint venture between the Edmonton Economic Development Corporation (EEDC) and the University of Alberta (U of A), TEC focuses on providing early-stage businesses access to facilities, training, and expert advice that help entrepreneurs grow their companies. “If you are running a young technology com-

The Government of Alberta is always looking for HR professionals to help grow and develop a talent pool of over 25,000 employees.

We need the right people to ensure the success of our province and it starts with you. If you see HR as an integral partner to help employees succeed, visit jobs.alberta.ca for more information and to stay informed on job opportunities.

www.businessinedmonton.com | Business In Edmonton Magazine | March 2013 GOVCHRC26563 BusCalg&Edm_Advance.indd 1

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build the spirit help create a legacy of caring

Help Build the Spirit!

Support our Capital Campaign

DONATE TODAY! P: 780-440-6346

info@jerryforbescentre.ca or visit our website to pledge your support.

pany or want to start one, come and see us. We can almost certainly help you, and if we can’t, we can put you in touch with people that can,” says Chris Lumb, CEO of TEC Edmonton.

Services offered are broken down into three main categories: business development, technology transfer and entrepreneur development. Business development includes mentoring, coaching, assistance obtaining financing, regulatory guidance and help with business plans. Technology transfer services provide assessments for patents and marketing, protection strategies for intellectual property, and assistance with marketing and technology licensing. Entrepreneur development provides incubator space and a variety of training opportunities including the annual VenturePrize competition where participants compete for over $150,000 in prizes and incentives to help launch their businesses.

TEC Edmonton works in detail with over 100 companies each year. In 2011 TEC Edmonton clients generated $73 million in revenue, invested $17M in

16

CHRIS LUMB, CEO OF TEC EDMONTON

research and development, and raised $27M in investment capital. Clients are from all sectors: examples include an advanced cancer screening diagnostics company, a high value natural product purification company, a transportation logistics company, a bovine genetic analysis company, various oil and gas products companies, environmental technologies companies, and many more.

TEC Edmonton hosts many events throughout the year and lists other relevant events on an interactive calendar on their website. The TEC calendar details two important events for April.

1. Business Basics for Innovators is scheduled for April 9 from 9:00 a.m. to 13:30 p.m. on the 4th floor of Enterprise Square (10230 Jasper Ave).

Attendees will evaluate their business plans’ strengths, identify areas that need focus and create action plans for making their companies and products stand out. To learn more about BBFI, contact Noreen Hoskins at noreen.hoskins@tecedmonton.com.

2. TEC Edmonton will be holding the 11th annual VenturePrize Awards Event on April 17. The top three finalists will be competing for the grand prize of more than $80,000. Tickets will go on sale soon. Visit www.ventureprize.com for more details.

March 2013 | Business In Edmonton Magazine | www.businessinedmonton.com

Emerging technology companies in Edmonton can partner with TEC Edmonton for information, education, networking and other opportunities.

To learn more about VenturePrize, TEC events or how this Edmonton organization can help grow your business, check out www.tecedmonton.com. BIE BUSINESS

BETTER BUSINESS BUREAU WELCOMES NEWLY ACCREDITED MEMBERS

The Better Business Bureau (BBB) recently welcomed several new businesses from Edmonton, including Bitzer Trucking Ltd, Contact Property Services Ltd, Moran Financial, Riteway Movers, Seven T Bar Trucking Ltd, and Simple Water Services.

“We are thrilled to have a number of brand new businesses join our ranks,” says Ron Mycholuk, Public Relations Manager for BBB of Central and Northern Alberta. “We are always pleased when businesses choose to stand with BBB and show customers that they can trust what that business is doing. We look forward to having them for a number of years.”

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NEWS FROM THE MONTH

Each member helps BBB achieve their vision of an ethical marketplace where buyers and sellers can trust each other.

Nicholas Hordziejko, owner of Simple Water Services, says of the accreditation process, “They defiantly asked me some challenging questions. It was very hard to be compared to similar companies in our field. The challenge was to prove how we were different and better than the competition.”

Contact Property Services owner Paul Foster was impressed by the level of assistance offered by BBB throughout the application process.

“I was quite surprised how eager they were to help me get set up with the BBB. It made for a much smoother process than it would have been without their help,” remarks Foster.

He points out that BBB helps businesses understand what is required of them for licensing and other documentation.

As part of the accreditation process, each business must agree to BBB’s eight standards of trust:

1. Build Trust: Establish and maintain a positive track record in the marketplace.

2. Advertise Honestly: Adhere to established standards of advertising and selling.

3. Tell the Truth: Honestly represent products and services, including clear and adequate disclosures of all material terms.

4. Be Transparent: Openly identify the nature, location, and ownership of the business, and clearly disclose all policies, guarantees and procedures that bear on a customer’s decision to buy.

5. Honor Promises: Abide by

all written agreements and verbal representations.

6.

Be

Responsive: Address

marketplace disputes quickly, professionally, and in good faith.

7. Safeguard Privacy: Protect any data collected against mishandling and fraud, collect personal information only as needed, and respect the preferences of consumers regarding the use of their information.

8. Embody Integrity: Approach all business dealings, marketplace transactions and commitments with integrity.

Accredited members reap benefits such as the ability to customize their online BBB review page with photos, videos and detailed company information; Google™ priority placement; use of the BBB logo; discounts on products and services provided by other BBB members and more.

Each member helps BBB achieve their vision of an ethical marketplace where buyers and sellers can trust each other. Edmonton businesses interested in obtaining BBB accreditation can download application forms from www.edmonton. bbb.org or call 780-488-6632 for more information. BIE

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17

COVER

THE RESTAURANT GAME OF LACHANCE

THE RESTAURANT GAME Century Hospitality Group beats the odds with an exceptional story of teamwork and success.

BY MARK KANDBORG

I

t’s been said the most stressful job in the world is being a military fighter pilot in the middle of a dog fight.

Valid, but some might suggest that the job of opening and running a restaurant isn’t far behind. Both professions involve a headlong rush into unknown dangers and the possibility of a crash-and-burn ending. So let’s take a moment to acknowledge the dedication of those brave men

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March 2013 | Business In Edmonton Magazine | www.businessinedmonton.com

and women who put it all on the line to provide us with food and drink in an oft-needed home away from home.

And for those who have fallen in the quest, those embattled restaurateurs for whom a parachute was nowhere to be found, a special prayer. Lest we forget.

The preceding comparison is neither to understate the dangers of combat nor to overstate the stresses of running

COVER

THE RESTAURANT GAME OF LACHANCE

OF LACHANCE a restaurant, but to point out that the latter is an exceptionally challenging undertaking where failure is not only an option, it’s commonplace.

There are success stories in the restaurant business, however, and some of them spectacular. Edmon-

ton’s own Chris Lachance, president of Century Hospitality Group and the main man behind Century Grill, LUX Steakhouse + Bar, Delux Burger Bar, Hundred Bar/Kitchen, Century Room, Century Catering & Event Planning, the new MKT Fresh Food

Beer Market and The Parlour Italian Kitchen and Bar (opening soon) is without question one of our most impressive.

It is difficult to fathom that a single entrepreneur can have the energy, focus and passion necessary to create such an extensive and diverse stable of successful restaurants. Difficult, that is, until you meet him. The man is a human dynamo.

I met with Lachance one chilly afternoon at MKT, his train station turned culinary pub on steroids just off Whyte Avenue. I started to pull a pad of paper out of my bag and asked him a question. By the time the pad had hit the table, I had some catching up to do. After a minute of madly scribbling away, I realized there was no point. I laid my pen on the table, checked that my back-up audio recorder was working, then leaned forward and listened. The sheer power of Lachance’s passion for the restaurant business simply can neither be tamed nor contained. Some things you just have to let run free.

What had kicked Lachance’s mind into gear was a question about the notoriously high failure rate among new restaurant owners. “What most people see when they look at this business is just like the tip of that iceberg. They have no idea what they’re really looking at – what’s under the water – until it’s too late,” he says.

He likes to use sports analogies with his team and uses one here. “Can you imagine if the coach just showed up 10 minutes before the game, walked into the dressing room and said: ‘Okay guys, everybody ready? Okay, super.’ He walks out to the bench and starts turning to the fans and waving and shaking hands and out comes the team. Well, after the first period it’s going to be 15-0, and he’ll wonder what the hell happened. Hard work’s done in the coach’s room, assessing the competition and in practice. The same thing goes for this business.”

This is going to be the easiest interview of my life.

Lachance first got into the game in 1988 when he took a job right out of high school at a restaurant called

www.businessinedmonton.com | Business In Edmonton Magazine | March 2013

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THE RESTAURANT GAME OF LACHANCE

“We get a lot of resumes, a lot of interest in our company, but we want to hire on personality and attitude versus skill set. Certainly the look and feel of your establishment has to be represented by your people, but we can’t just put out a bunch of pretty faces and expect to be successful with that.” ~ Chris Lachance, president of Century Hospitality Group

Trumps, an inauspicious event which marked the beginning of what he likes to call his ‘rags to rags story.’ “When Trumps opened up, this is no word of a lie, there was the Whitemud, and there was Trumps, and there was literally nothing else all the way to the airport. It was on the outskirts of town,” he says. After a couple of months, the man who hired him, Hans Voegeli, who is still a well-regarded fixture of Edmonton’s dining scene, took Lachance aside.

“He said ‘you’ve really got a knack for this business.’ And I’m this young, impressionable 18-year-old guy just having fun. I wanted to be a lawyer but Hans said to me, ‘Law school can always wait. I think you should give this a go.’

I remember joking with him and saying maybe if you can convince my father of that.’ Cause if I was to go home and say, ‘Hey, Dad, guess what? I’m not going to go to university, I’m going to hang out in the restaurant business…” Two weeks later, Lachance saw his boss and his father having lunch together. His father suggested he take a year to try it out and then make a decision.

The decision, as it turns out, almost made itself. “That was the Oilers’ heyday. I’m a young guy, they’re in there celebrating and I’m drinking champagne out of the Stanley Cup and I’m thinking, this is a great business! I loved every aspect of it.” So Lachance stuck with it, learned as much as he could, and twelve years later when the opportunity came to buy Trumps, he did. That property today is Century Grill. “I always say don’t get emotionally attached, but if I was ever going to be emotionally attached to a business, it would be Century Grill. I started off there as a waiter, and if you saw me in there on a busy night you’d still think I was a waiter, 20-some-odd years later,” he laughs.

Lachance realizes how fortunate he was to have created a successful operation on his first attempt. “Seventy percent of the restaurants out there go broke in the first year, and in the second year, 80 per cent of the 30 per cent that are remaining are gone,” he says. “We were fortunate enough to beat the odds.”

So after five years of not failing at his first venture, Lachance did what few would recommend and what almost

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March 2013 | Business In Edmonton Magazine | www.businessinedmonton.com

nobody would do. He opened another, completely different restaurant. “I looked at what was out there in the marketplace and at that time there were steak houses downtown, which were somewhat dated, and steak houses catering to the masses in suburbia. We clearly saw an opportunity to go in and do something similar, but at the same time, very different. Our tag was ‘LUX…a rare steak house well done.’”

The intervening years have been an impressive story of growth. For Lachance and Century Hospitality Group, the secret to continued success in this business, indeed in any business, is obvious. “What makes up a great organization is the people in it, the culture that you have and the core values that you need to embrace. You need to live and breathe them,” he says.

Lachance firmly believes that the personalities in his restaurants are a big draw for customers. “We get a lot of resumes, a lot of interest in our company, but we want to hire on personality and attitude vs. skill set. Certainly the look and feel of your establishment has to be represented by your people, but we can’t just put out a bunch of pretty faces and expect to be successful with that,” he says.

“There are restaurants where you walk in and there’ll be three young girls standing at the front door, but collectively they’re having a tough time trying to figure out where they should seat you for dinner.”

It would be very difficult to overstate how important the “people” aspect of his business is for Lachance. “I use WestJet as a prime example of a culture that works. What’s the worst thing you can say about WestJet? Their bad jokes? It’s a great company with a lot of young people in it that look like they’re enjoying their jobs. We’ve got 400 strong in this company, and those are the people that need to be the raving fans, the ambassadors of your brands,” he says. “If you’re out there talking to your customers and it’s not just the standard ‘How is everything here tonight?’ it’s ‘Hey, what brought you down?,’ that kind of thing, you get to know your customer.”

Lachance and Century Hospitality Group have an interesting way of looking at the oft-cited problem of attracting

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COVER

THE RESTAURANT GAME OF LACHANCE

good employees. “A players attract A players,” he says, and that’s what Lachance believes separates his organization from their competitors. Much, if not most, of Century Hospitality’s recruitment comes from within. “It’s not just about posting a position online or putting a help wanted sign on the front window, it’s about great people really wanting to work with other great people and for a great company.”

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As for holding on to stellar employees once you’ve found them, Lachance believes that how you and they think of their job is key. “There seems to be this perception out there that this industry has always been a great stepping stone to something else. If you’ve ever read a bio on any musician or actor they always say, yeah, I had a job as a waiter, or a bartender. It really irks me when I hear it.

The way I look at it, this is a real job. This is a real company, these are real people and this is a dynamic industry. It’s ever changing.”

The dynamic, ever changing nature of the industry is one of the things that keeps Lachance and company revved up, and also a step ahead of the competition. He sees himself more as an entrepreneur and a businessman who happens to be in the hospitality industry versus that of a restaurateur or a chef who happens to be in the business. He loves to innovate.

“If something’s trending out there in the industry, we better be the ones to know about it, formulate it, figure out how to make it fit in the Edmonton marketplace and be the first ones in,” he says. “Everyone is jumping on the gourmet burger bandwagon these days, however we were there six years ago with our first Delux Burger Bar. When steakhouses were making a comeback, LUX came into the Edmonton marketplace first again. Now beer is back and bigger than ever

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THE RESTAURANT GAME OF LACHANCE

It may be mere coincidence that Lachance roughly means opportunity, but it’s a noteworthy confluence. To find and explore new opportunities seems to be what Chris Lachance is all about.

and there was Century Hospitality Group with our take, MKT. We will always look to lead rather than follow.”

Which brings us to The Parlour.

The opening of The Parlour this summer may actually be able to change the minds of those who think there’s nothing new under the Tuscan sun. “It’s going to be a really sort of cool, Italian kitchen/bar. You know, wine on tap, pizza mozza bar, great courtyards. We want to be different.”

It may be mere coincidence that Lachance roughly means opportunity, but it’s a noteworthy confluence. To find and explore new opportunities seems to be what Chris Lachance is all about. “I’m certainly not one of those guys who’s going to stand up there and wave the pom-poms around, but I love what I do. I love the building process and the grow-

ing process. I mean, there’s nothing more motivating and rewarding for us than taking an empty, raw space and bringing it to life with a vibrant, action-packed restaurant full of people, all enjoying Century Hospitality Group’s genuine hospitality. That’s the real inspiring part.”

As I shut off my recorder and we shake hands, Lachance shares one last thought with me. “I hope that you can relay in how you write your story that it’s so much about the people in this organization,” he says. “I don’t want this to be an article about Chris Lachance. I want it to be about the people who drive it. Everything that I’m sitting here talking about, that I’m very passionate about. I want my staff to be able to read your article and go ‘this is not B.S. This is all true.’ Because without them, there is no company and no story to tell.” BIE

www.businessinedmonton.com | Business In Edmonton Magazine | March 2013

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OIL & GAS

IT’S NOT EASY BEING A JUNIOR

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March 2013 | Business In Edmonton Magazine | www.businessinedmonton.com

OIL & GAS

IT’S NOT EASY BEING A JUNIOR

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

JOHN HARDY

I

t’s nice of the oil and gas industry not to be too condescending when it comes to the differences between big and small. No matter what, it’s bound to be a put-down, unless they use the word “junior.” Junior sounds better.

Friendlier, gentler and only a hint of patronizing because dictionaries and Wikipedia say “junior” means “lowranking, inferior, lesser or underling.” Of course that’s not what Imperial Oil, Husky, Suncor (Canada’s three largest oil and gas companies) and others meant to say. It’s just that, aside from subsidiaries, the Canadian oil and gas industry only has about a half dozen booming (truly Canadian) giants.

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

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

Carmen Goss, President of Prominent Personnel has been staffing Alberta’s oil and gas industry for more than 20 years and works from a database of some 55,000 contacts. She relates to the current bumpy ride. “Before 2008, we had a niche market and things were great. And then came the infamous two-year slump from 2008 to 2010. A slump in funding followed. Rig counts and hiring was drastically down,” Goss remembered. The going got tough and

www.businessinedmonton.com | Business In Edmonton Magazine | March 2013

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OIL & GAS

IT’S NOT EASY BEING A JUNIOR

Depressed natural gas prices have forced many well-financed juniors to shift their strategic business plans and re-invent themselves into oil producers.

Even Encana, Canada’s largest gas producer with a $13-billion market cap, has been selling multibillion-dollar assets and focusing on liquids, hoping to compensate for the depressed price of North America’s natural gas.

the tough keep going. Today’s juniors now confront an octopus-like, multi-tentacled dilemma.

Soaring costs guesstimates of the $20 million start-up costs of 10 years ago are now well beyond $100 million, but it’s not only about funding. Juniors must also deal with dismal prices, sagging production volumes, changing trends, weak markets as well as reKEITH SCHAEFER, THE FOUNDER AND EDITOR OF THE OIL AND GAS INVESTMENTS BULLETIN luctant investors.

Prices are at 11-year lows and still sinking. Gas production is also dropping.

Statistics Canada crunched numbers to show that Canadian companies produced 5.9 per cent less natural gas in January 2012 than in January 2011. (Crude oil production grew 8.4 per cent during the same period.)

“Last January, when gas GARY LEACH, EXECUTIVE DIRECTOR OF THE EXPLORERS prices took a sharp dive, gas AND PRODUCERS ASSOCIATION OF CANADA (EPAC) juniors became the walking dead. No hope for attracting investors but not yet bankrupt,” said Keith Schaefer, the founder and editor of the Oil and Gas Investments Bulletin and an industry expert with more than 20 years experience raising oil and gas exploration capital.

“Unfortunately, many gas juniors are still stuck in that situation.” Others have either vanished or are still running into dead-ends, trying to find buyers for their devalued gas assets while they tread water, hoping and waiting for a natural gas turnaround which (if it happens at all) could take years.

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March 2013 | Business In Edmonton Magazine | www.businessinedmonton.com

Depressed natural gas prices have forced many well-financed juniors to shift their strategic business plans and re-invent themselves into oil producers. Even Encana, Canada’s largest gas producer with a $13-billion market cap, has been selling multibillion-dollar assets and focusing on liquids, hoping to compensate for the depressed price of North America’s natural gas.

Encouragingly, some are turning industry lemons into lemonade.

They got feisty, experimented with new drilling technologies and tapped so many new oil plays that they actually reversed sluggish and declining conventional oil production. Many are still growing and keeping debt low to ensure staying power over the longer term.

“The 1,000 or so juniors and intermediates range from small start-ups to publicly traded companies. It’s impossible to track the private ones because they function so independently, they don’t have to report or send out press releases on what and how they are doing,” said Gary Leach, executive director of the Explorers and Producers Association of Canada (EPAC). “There are about 100 publicly traded juniors active in the Canadian oil patch. While that number is down about a third in the past five or so years, all things considered, the outlook is still positive.”

Alberta is the largest producer of conventional crude oil, synthetic crude, natural gas and gas products in Canada.

Edmonton is considered the pipeline junction, manufacturing, chemical processing, research and refining centre of the province.

“The industry is in transition and proving to be very adaptable. They are working with new business models; most have reduced their reliance on natural gas and nearly half their production is now from oil,” Leach explained.

“They are also bigger than they used to be and quicker in adapting to industry changes.”

Juniors, like Guide Exploration, Bonterra, Angle and Vero have made drastic adjustments, sold off natural gas properties and transformed themselves into tight oil pro-

CSI CANADA SAFETY Experience. Passion.

S

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

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

A wide range of services include: Safety Services

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

Rentals

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

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

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

They are proud of that.

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

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

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

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

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

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

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

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

OIL & GAS

IT’S NOT EASY BEING A JUNIOR

ducers. However, Leach cautioned that for originally gas-producing juniors, it’s not always a painless transformation. “You can’t turn yourself from a gas producer into a crude oil producer overnight. Prices are very low for gas-weighted assets and in many cases there may not be any buyer interest.”

Despite all the gungho daring and successes KEVIN STROMQUIST, SHORELINE PRESIDENT & COO in promising plays in Bakken, Montney, Cardium and Shaunavon, Alberta’s re-invented and re-focused juniors wonder if luck and circumstance will ever be on their side.

They now confront yet another challenge and this one is completely beyond their control. The volatile and unpredictable crisis in Europe is discouraging investors from anything that could be risky or tough to sell in a hurry.

Although no junior is “typical” when it comes to effectively dealing with the gamut of current challenges, Shoreline Energy is a dynamic and interesting case-inpoint example. “Fortunately we are flexible with the ability and expertise to adapt,” acknowledged Shoreline president and COO, Kevin Stromquist. “Our timing was right and we are moving from a gas-weighted to a more balanced oil and gas-weighted production profile. We adjusted from being a 10 per cent oil-weighted company to now being about 30 per cent oil-weighted. By mid 2013 we hope to be 40 per cent oil and the ultimate goal is to be 50-50.”

“Since 2008 most juniors have been moving toward a balanced production portfolio. Growth needs 5,000 to 10,000 BOEPD (barrels of oil equivalent per day) to be market relevant. Most juniors won’t wait that long” is Stromquist’s reality check. “That’s why they are consolidating, aiming for a viable boepd to sell to a major or an intermediate looking for growth.”

Alberta juniors also face the frustrating challenge of viable markets. “They are being squeezed,” Schaefer said with a passion, pleading the case against same old/same old markets. “Canadian energy is, by far, the cheapest in the world and the only savior for this group is finding alternate markets. We need to take the gas to Asia, not the United States!”

“The industry’s most pressing current and short term need is getting our oil volumes to viable markets. While juniors have boosted volumes of oil, ultimately new oil export pipelines are desperately needed,” Stromquist said.

Carmen Goss, who is well-connected to oil and gas movers and shakers in her Prominent Personnel files, echoes the push for new markets. “I hear it a lot, lately. Transportation and new markets are definitely hot topics.”

Juniors must also deal with the often simplistically stereo-

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March 2013 | Business In Edmonton Magazine | www.businessinedmonton.com

Despite gloomy forecasts about sagging prices, demand, production volumes, changing trends, investor jitters, transportation and new markets, Alberta’s oil and gas juniors are proving to be a tough, feisty and resilient group.

typed financing challenge.

Funding, always an important fact of business life, is particularly vital for Alberta juniors as they do whatever it takes to navigate the bumpy ride of today’s (and tomorrow’s) volatile oil and gas speed bumps.

“We are looking at solutions that are going to take 5, 10 or 15 years for improvement on the demand side,” Leach predicted. “So CARMEN GOSS, PRESIDENT OF PROMINENT PERSONNEL how do you get through the next quarter or the next year or the next two years?”

“We can maximize cash flows, pay a sustainable dividend and grow prudently but ultimately it all comes down to the drill bit,” Stromquist shrugged. “At the end of the day, we must find, produce and market hydrocarbons at a low price. That’s the bottom line.”

Despite gloomy forecasts about sagging prices, demand, production volumes, changing trends, investor jitters, transportation and new markets, Alberta’s oil and gas juniors are proving to be a tough, feisty and resilient group.

Industry insiders say exploration and production of unconventional oil and gas will be a boon to Alberta’s juniors and investors with an appetite for risk.

“I see it as a challenge to the entrepreneurial spirit, which Alberta has in abundance,” Kevin Stromquist said with a hint of gutsy pride. “Juniors are very adaptable and they keep proving that it’s possible to flourish, even in tough times. They will figure out the road map to success, as they always have.” BIE

S2 Architecture:

Where Diversity Thrives and Design Endures

Defining the Essence of Community for 20 Years

By Mary Savage

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

- Anonymous

If

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

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

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

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

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

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

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

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

S2 Architecture | 20 Years | 1

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

- David Symons, Architect, Principal

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

For Spaetgens and Symons, it was the third time they would work together. The first time was in university: they were roommates while studying architecture, during their master’s year, at the University of Manitoba.

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

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

For almost another decade, Spaetgens and Symons grew the business. They hired more architects, technologists and design specialists, landing larger and more prominent projects.

In 1997, the firm hired James McLaughlin as an intern

architect. McLaughlin had been recruited some time after graduating from McGill University, and after an intricate interview process with 12 different firms, he chose S2 because of the firm’s mentality. Spaetgens and Symons subscribed to an open mindset and that proved to be the tipping point for McLaughlin.

Shortly thereafter, Peter Bradshaw joined S2 although he is not an architect. This move reflected the partners’ insight and ability to expand the firm beyond the traditional perimeters, and they welcomed Bradshaw’s hands-on expertise as a valuable addition. Bradshaw built his career in the construction industry and was drawn to the challenges and opportunities that S2 presented – working as a construction consultant – but he was equally attracted to the firm’s philosophy, thereby making it an easy choice.

And a few months later, Craig Bowd joined S2 and like Bradshaw, Bowd is not an architect either. Bowd is a senior technologist and brought decades of expertise in the field of production and technology. During the late 1990s and as the story of hiring Bowd unfolded, Spaetgens, Symons and Bowd

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

Foothills Athletic Park Master Plan, Calgary, Alberta

S2 Architecture | 20 Years | 2

had many lengthy conversations. Ultimately, Bowd made the decision to join S2 because of the firm’s leadership style and their approach to business.

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

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

The leadership team also expanded that same year with James McLaughlin, Peter Bradshaw and Craig Bowd becoming partners. The move to make both Bradshaw and Bowd partners stressed the importance of disciplines found within architecture, and successful leaders understand the importance of hiring outside your immediate

sphere of influence – sometimes it’s necessary in order to find the best people.

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

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

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

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

Saddle Ridge Multi-Services Centre, Calgary, Alberta

S2 Architecture | 20 Years | 3

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

- James McLaughlin, Architect, Principal

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

Robert Spaetgens, Architect, Principal

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

Vicky Couture, Project Lead, Designer

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

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

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

For S2, the design process begins by listening. Their goal is to extract an inevitable array of agendas, opinions and

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

Thomas Jefferson School of Law, San Diego, California

S2 Architecture | 20 Years | 4

interests voiced by the client, and get that information onto the table. As ideas surface, S2 helps convert their goals into principles with an objective to create design that is contextual and meaningful.

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

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

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

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

James McLaughlin, Architect, Principal

Community extends beyond a neighbourhood, building or a group of people: it’s a sense of place and what feels comfortable. As an example, S2 has designed community service facilities, recreational, educational and emergency services throughout different quadrants of the city and each building has a different vibe depending on the location.

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

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

S2 Architecture | 20 Years | 5

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

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

- Natasha Jalbert, Interior Design Lead

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

Historically, the firm has offered interior design services, but the partners wanted to expand their vision to provide

a fully-integrated and multidisciplinary approach. Interior design dovetails into architecture by providing ‘functional programming.’ The objective is to create an interior space that’s both comfortable and functional while adhering to the client’s identity and brand. From repurposing or retrofitting an existing

space to working within a new building shell, interior design echoes the same process as architecture.

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

Much like the other professionals found within the S2 world, Jalbert set out to build the interior design team with an integrated, collaborative and empowering approach. It’s a methodology that allows the design team to see past a client’s vision by understanding what they need. From the reception area and workspaces to new furniture and fixtures, interior design enables a client to create a more productive environment that reflects not only their brand, but the corporate cultural and corporate identity as well.

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

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

Canadian Pacific New Headquarters, Calgary, Alberta

S2 Architecture | 20 Years | 6

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

- Peter Bradshaw, Contract Administration and Construction, Principal

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

Jane Kratochvil, Office Manager

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

Craig Bowd, Production and Technical Services, Principal

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

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

It is an environment where tradition meets innovation and evolution is often pragmatic. It is a world where opposites thrive and input from everyone is encouraged and expected – from intern architects and junior technologists to partners.

No question is deemed insignificant and no inquiry is sidestepped. It is, simply put, what you find every day when you enter the milieu of S2.

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

Genevieve Giguere, Senior Team Lead, Intern Architect

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

Rocky View Lodge, Supportive Living, Crossfield, Alberta

S2 Architecture | 20 Years | 7

Beyond the main foyer and boardrooms, the hallway opens to a large, open-concept space where several more groups work together: reading plans on a drafting table or gathered around a large computer screen. The office is void of doors, unless you’re sitting in a boardroom.

It’s a cohesive environment where different disciplines work side by side: interior designers, architects and technologists.

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

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

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

Photo by Light on Paper Photography.

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

Erin Hampson, Intern Architect

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

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

Brian Corkum, Architect

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

To capture the essence of a well-designed community in a singular word is nearly impossible and the same rings true of S2’s internal culture. Their approach to business reflects

S2 Architecture | 20 Years | 8

Thirty years ago

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

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

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

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

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

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

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

an array of core beliefs that – collectively – are much larger than ‘great design.’

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

S2 Architecture | 20 Years | 9

“Ambitious, pragmatic, vibrant.”

Jason Dolha, Sr. Architectural Technologist

“Motivated, adaptable, intelligent.”

Michael Evans, Senior Technologist

“Fun and energetic.”

Shannon Thomson, Senior Marketing and Graphics Coordinator

“Adaptive, supportive, successful.”

Megan Chwiecko, Interior Designer

is…

“Meaningful, creative, communicative.”

Jason Curtis, Project Leader

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

“Motivated, friendly, productive.”

Cynthia Toyota, Architect

S2 Architecture | 20 Years | 10

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

“Young, open and aware.”

“Relaxed, professional, respectful.”

Christine Perry, Senior Interior Designer

“Intelligent, social and enduring.”

Candice Scott, Jr. Architectural Designer

William Woodcock, Architectural Technologist, Interior Design

“Steady, spirited, committed.”

Donald O’Dwyer, Intern Architect

S2 Architecture | 20 Years | 11

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

Linus Murphy, Architect, Principal

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

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

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

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

more permanent presence within the city of Edmonton.

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

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

Next they hired Brent Conner, a senior S2 Architecture | 20 Years | 12

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

Robert Labonte, Architect

technologist with a diverse portfolio of work in Western Canada spanning over 20 years, and Erin Hampson, an intern architect, fresh out of the master’s program at Ryerson University. The

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S2 Architecture | 20 Years | 13

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“S2 creates opportunities for participation, engagement and ownership in the daily activities of architectural design.”

Jane Lam, Senior Technologist

Edmonton office then welcomed Charles Gushaty, a senior contract administrator and building science specialist with over 29 years of experience working in the Edmonton market, and most recently, Jane Lam, a senior technologist with 25 years of experience throughout Alberta, Eastern Canada and Asia.

In December 2012, Labonte was appointed – by unanimous vote – to the Edmonton Design Committee (EDC). The EDC is an organization that is integral to formulating urban design principles, guidelines and polices, and as Edmonton continues to rejuvenate and transform the cityscape, S2 is poised to be a part of the process.

Currently, S2 is involved with several projects in Edmonton and the surrounding area. Several EMS stations, a mixed-

Photo by EPIC Photography.

“There are many great opportunities in Edmonton.

The political establishment is focused on moving things forward: they are encouraging development, which encourages investment.

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

Robert Labonte, Architect

use development, a new fire station, civic offices, public works and operations buildings and a 911 call centre are all underway.

For any design, there is a great moment at its inception when it feels like a clean slate. It is a world of possibilities that contribute to ideas taking shape. It is a world of optimism, rejuvenation and significance. But it is also the evolution of many conversations, exploring options and listening to the clients – and this is something S2 does extremely well. As Edmonton undergoes a major transformation, S2 is ready to engage the conversation.

Inside S2’s current Edmonton location, the team is preparing to move to their permanent home located at the north end of 124 Avenue. The team wanted to be situated on the edge of ‘revitalization’ and after a bit of searching, they found an ideal location and space.

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

S2 Architecture | 20 Years | 14

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It’s a pleasure working with the S2 team!

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12/26/2012 10:26:40 AM

Congratulations to S2 Architecture on their success in Calgary, and best of luck with their expansion into Edmonton!

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

- Robert Spaetgens, Architect, Principal

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

Easy to say, but tough to accomplish and part of what drives this leadership team forward is found looking in the rear-view mirror. When the partners embarked on their careers, the notion of succession planning was not part of the landscape. As wide-eyed junior architects, their voices were rarely heard and it took years of ‘proving yourself’ before a hint of respect seemed attainable. But this particular group thought differently and two decades later, they have built a different firm.

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

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

And when they have finished a project, they simply and quietly move onto the next one.

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

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

Peter Bradshaw, Contract Administration and Construction, Principal

As S2 acknowledges their 20th anniversary, they pause from the workday to articulate a moment of gratitude.

‘Thank you’ to the business communities and their industry partners that have been instrumental in helping S2 achieve this milestone.

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

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

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

Craig Bowd, Production and Technical Services, Principal

David Symons, Architect, Principal

www.s2architecture.com S2 Architecture | 20 Years | 16

BOMA BEST PROGRAM A PRIORITY FOR ASSOCIATION PRESIDENT IN YEAR ONE

EDMONTON

W

Citywide:

8.3%

Central Business District:

6.9%

Financial Vacancy: AA A B C

6.9% 9.0% 5.3% 5.7% 6.8%

Government Vacancy: A B C

6.9% 8.9% 6.3% 3.1%

Vacancy: A B C

10.7% 9.2% 11.0% 15.6%

hen Benjamin Shinewald joined BOMA Canada in early 2012 as the association’s new president and chief executive officer, he took no time in laying the groundwork for the continued success of the Association’s marquee program, the Building Environmental Standards (BOMA BESt) program.

BOMA BESt was launched in 2005 by BOMA Canada to address the industry’s needs for realistic standards for energy and environmental performance of existing buildings based on accurate, independently verified information.

Armed with the continued support of the volunteer board and eleven local BOMA chapters, the association’s CEO plans to maximize the value of the program and to expand.

The hiring of Hazel Sutton, manager of environmental standards, prior to Benjamin’s arrival was followed by a lengthy recruitment process for the director of environment and energy, John Smiciklas. Together, the new BOMA BESt team will grow BOMA Canada’s leading energy and environmental certification program.

The annual BOMA BESt Energy & Environmental Report (BBEER) highlights issues of importance to the commercial real estate industry and is a leading resource for best practices in efficient and effective building management and operation. Featured in the report are BOMA BESt certified build-

ings from across the country along with performance benchmarks on the state of the commercial real estate industry across the six key areas of environmental performance and management.

BOMA Canada is currently consulting with stakeholders in preparation for the next BBEER, which will be presenting 2012 building data.

A tenant engagement toolkit is being developed with the help of numerous stakeholders to provide building owners and managers across Canada with the resources needed to reach out to building tenants and visitors and engage them in environmental efforts.

In addition to assessment surveys for several asset types such as office and light industrial buildings, retail plazas, and shopping centres, and a new assessment survey for multi-unit residential buildings, BOMA Canada is getting close to rolling out a health care module.

To further support the program, BOMA Canada most recently launched its BOMA BESt Strategic and BOMA BESt Technical Committees and looks forward to the guidance and technical support these two national committees will provide.

The newly launched National Advisory Council, an exclusive network of senior commercial real estate leaders providing the officers and board of BOMA Canada with strategic perspectives on the state and trends of the real

O F F I C E

VAC A N C Y 2012 - Q4

Absorption 2012 Q4 Citywide: 400,976 sf Downtown: 262,200 sf Suburban: 138,776 sf

www.bomaedmonton.org | BOMA Edmonton Newsletter | March 2013

1

estate industry, will also serve as an invaluable resource for the program.

BOMA Canada’s annual conference and exhibition, BOMEX®, will be held October 1 – 3, 2013 in Halifax, Nova Scotia and will offer strategies and solutions of interest to those pursuing building excellence. The National Awards Gala, held during the same time, will recognize outstanding buildings from across the country. BOMA BESt is now a mandatory entry requirement for the Gala awards.

With over 1,537 currently certified buildings as of December 31, 2012, BOMA BESt has more energy and environmental third-party verified data for existing buildings than any other program in North America. BOMA BESt continues to help many building owners and managers realize greater energy and water efficiencies for their buildings, improve the sustainability of Canada’s built environment, and improve the quality of life for building occupants – a priority shared by countless stakeholders across Canada.

About BOMA Canada: Established in 1944, BOMA Canada is a dynamic federation comprised of over 3,200 members in the industry representing over 2.1 billion square feet in office space in Canada. As a Federation, BOMA Canada has 11 local associations1 located in 9 provinces across Canada, two of which are based in Alberta and Ontario. BOMA facilitates national initiatives and the exchange of ideas that support its member associations in the promotion of education, advocacy, recognition of excellence and networking. For more info visit www.bomacanada.ca 1 The eleven members of BOMA Canada are BOMA British Columbia, BOMA Calgary, BOMA Edmonton, BOMA Regina, BOMA Manitoba, BOMA Toronto, BOMA Ottawa, BOMA Québec, BOMA Nova Scotia, BOMA New Brunswick (which provides some services in Prince Edward Island) and BOMA Newfoundland and Labrador.

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March 2013 | BOMA Edmonton Newsletter | www.bomaedmonton.org

CURRENTS OF WINDERMERE: BRINGING A LITTLE CITY TO THE SUBURBS W

elcome to Currents of Windermere, conveniently located in southwest Edmonton just off Anthony Henday and Terwillegar Drive. Currents of Windermere is Edmonton’s premium new shopping destination and a lifestyle centre that features quality retailers, convenient services, exciting entertainment and dining experiences.

Built around a central common, Currents will offer more than 1.4 million square feet of retail and office space spread along easy-to-navigate streets and boulevards. The design features a pedestrian friendly environment where shoppers are able to freely explore the natural beauty and great shopping that Currents has to offer.

Popular retailers such as Wal-Mart, Home Depot, Safeway, Canadian Tire and London Drugs are here and we are proud to be home to many Alberta “first” retailers such as the only Cabela’s Outdoor Outfitters, the first and only VIP Cinemas (operated by Cineplex), and Western Canada’s largest liquor store, Wine and Beyond. If you are ready for a meal, there’s plenty of dining available with everything from Swiss Chalet to Montana’s to Chili’s to casual fare from Quizno’s, Opa! and Edo Japan. Services including Canadian Imperial Bank of Commerce, Alberta Treasury Branch, TD Canada Trust, QNails and Beaner’s Fun Cuts for Kids are open for business.

In April, Cineplex Odeon Windermere and VIP Cinemas opened its doors, the first of this concept in Alberta. With 11 screens, the 49,000 square foot state-of-the-art theatre features seven traditional auditoriums, one UltraAVX™ auditorium and three VIP Cinema auditoriums. The luxurious VIP cinematic experience is available to movie-goers 18+ and offers reserved seating in large leather seats with expanded legroom and moveable tray tables. The Ultra AVX theatre is the next level of cinema with a giant wall-to-wall screen, crystal clear digital projection, an immersive sound system and large rocker chairs.

Cineplex Odeon Windermere and VIP Cinemas also have a diverse selection of food offerings for guests to enjoy. The theatre is the first in Edmonton to offer Poptopia, a premium brand of popcorn created by Cineplex and sold in a variety of unique flavours such as cookies and cream, all dressed and more. Burg-

Fully integrated tenant solutions

MONTANA’S, CURRENTS OF WINDERMERE

WINE AND BEYOND, CURRENTS OF WINDERMERE

ers, hot dogs, pizza and frozen yogurt are also available. The licensed lounge for guests 18 years of age and older features an expanded menu that includes delectable fare such as calamari, chicken wings and wraps.

For lovers of wine and specialty spirits, a visit to Wine and Beyond is a must. The store is Western Canada’s largest liquor store in terms of product selection and size with approximately 20,000 square feet of retail space. Wine and Beyond carries over 6,000 wines, 2,500 spirits, and 1,800 beers from over 44 countries. Other store highlights include tasting bars, wine education classrooms, and in-store experts.

Wine and Beyond complements the existing convenience-focused Liquor Depot, which opened at Currents in 2011.

As construction continues throughout 2013, we anticipate summer openings of Tutti Frutti Frozen Yogurt, Jugo Juice, Chatter’s Salon and Urban Radiance Medical Aesthetics Spa, to name a few.

The Currents Medical Wellness Centre will be a 60,000 square foot facility and home to Medical Imaging Consultants (MIC) as well as a full offering of medical services that will serve southwest Edmonton. It is expected to open in the fall of 2014.

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www.bomaedmonton.org | BOMA Edmonton Newsletter | March 2013

3

The final development phase at Currents involves the construction of an Urban Village, which will feature fashion retailers and a unique mix of service oriented tenants alongside entertainment and food services. The heart of the Village will be Towne Square, a community gathering place and a centre of activity for things to do in southwest Edmonton, with programmed community and entertainment events throughout the year.

By combining aesthetically pleasing, pedestrian friendly urban village architecture with attractive retailers and services, Currents of Windermere embodies the next step in the evolution of open-air shopping centres – selection with personality and convenience.

For more information, visit Currents of Windermere at www.shopcurrents.ca or contact Harvard Developments Inc. at (780)413-7060.

Harvard Developments Inc. provides a full range of real estate services which focus on creating value assets. Dealing in commercial, office, retail, industrial and investment markets, nationally and internationally, the company has an exceptional record of performance in leasing, property management, development and the acquisition and divestiture of properties. Harvard Developments Inc. is a Hill Company, celebrating 110 years of breaking new ground.

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BY LANE JOHNSON

I

nnerspaces Business Furnishings Inc. represents design driven industry leaders in Commercial Business Interiors.

We have been committed to filling spaces in the Edmonton marketplace for over 20 years. Projects are made easy while we take care of all the details from the simplest space of 80 square feet to Edmonton’s top architectural buildings in design. We invite you to find out why we are the choice of Edmonton’s most trusted design firms, facility managers, leasing agents, purchasers and the citizens of Alberta.

We are comprised of an in-house team which includes a full service Architectural Wall Division made up of sales, designers, project management, and office administration.

Some of the areas in which this team operates include architectural products, full-height moveable wall systems and space planning.

Innerspaces is the DIRTT Modular Interior distribution partner in Edmonton, servicing central and northern Alberta. Working closely with DIRTT, we are able to create customizable, sustainable architectural interiors. Using state-of-the-art ICE® software, a Java-based 3D application, we design solutions not only for movable walls, but also for millwork and plug n’ play power and data. All aspects of design are fully customizable, allowing our clients virtually unlimited freedom.

The key to DIRTT’s flexibility is technology. Using ICE® and ICEvision® intuitive software, our designers can design a project from scratch or integrate an existing AUTOCAD drawing into ICE®, minimizing the potential for errors. We use this software for many purposes including but not limited to creating interactive environments in real time using clear, graphic communication to design, envision, specify,

4

March 2013 | BOMA Edmonton Newsletter | www.bomaedmonton.org

DIRTT SHOWROOM AT NEOCON 2012

LEFT - LUNCHROOM DESIGNED BY DIRTT WITH CUSTOM PRINTED GLASS. CENTRE - DIRTT MILLWORK IS IDEAL FOR HEALTHCARE, EDUCATION, CORPORATE AND COUNTLESS OTHER APPLICATIONS. RIGHT - DIRTT SHOW PIECE INCORPORATING RECLAIMED WOOD.

price, manufacture and deliver any product open to modification. ICE速 eliminates the potential for human error or possible design misrepresentation by a third party, cutting down lead times and reducing unnecessary product waste.

With manufacturing facilities in Arizona, Georgia, Texas (opening soon), Calgary, DIRTT is able to service greater North America. These facilities are not only used for manufacturing, but also for educating and showcasing the latest

innovations from DIRTT. We are very proud to be partnered with DIRTT and are eager to demonstrate all that is DIRTT through an interactive presentation at your workplace, in our working showroom, or through a tour of the Calgary facility.

www.bomaedmonton.org | BOMA Edmonton Newsletter | March 2013

5

BOMA EDMONTON REACHES OUT TO POST SECONDARY STUDENTS

BY PERCY WOODS, BOMA EDMONTON, EXECUTIVE VICE PRESIDENT

L

ast year the BOMA Edmonton board of directors decided the organization needed to take proactive steps to ease the staffing and recruitment problem many of the members were facing. An ad hoc recruitment committee was formed to look at what BOMA could do to attract people into the industry.

Shaun Wuschke of Bentall Kennedy (Canada) LP and the 2012 BOMA Edmonton President asked the committee to look at how BOMA members could connect with post-secondary students and encourage them to consider commercial real estate as a career. Having already become a partner with the University Of Alberta (U of A) School Of Business through a donation to the Melton Chair in Real Estate, the committee reached out to MacEwan University and the Northern Alberta Institute of Technology (NAIT) to see if there were opportuniNAIT CAREER FAIR - BRAD MARCHAND, KEVIN ROBINSON, CAROLE LAJOIE ties to connect with their students. Both institutions were quick to provide BOMA’s recruitment comBrad Marchand from Bentall Kennedy (Canada) LP and a mittee with a list of how they could help connect with the member of the education committee said, “The Career Fair students and programs that would graduate potential hires was a great chance to introduce NAIT students to commerfor commercial real estate. cial real estate as a career option and to start the promotion At the November board meeting, the BOMA Edmonton of an under-promoted industry. I had a chance to talk to sevBoard of Directors accepted the recruitment committee’s eral power engineering students and give them new options recommendation to invest in partnerships with MacEwan, apart from Fort McMurray to consider when they complete NAIT and the U of A. The committee further recommended their training. I even had one eager student hand me his rethat recruitment be added to the membership committee’s sume and we will be interviewing him shortly.” mandate to ensure the investment in post-secondary instituOn January 23, BOMA Edmonton attended the reception tions would foster an interest in the commercial real estate for the MacEwan Business School’s Amazing Case Study industry among Edmonton’s post-secondary students.

Competition. This event, sponsored by BOMA Edmonton, The partnerships with the U of A, MacEwan and NAIT involved eight teams of four student members that competed have already started to reap rewards and provide opporover two days to prepare and present a case study of a busitunities to interest students in commercial real estate. On ness problem. The winning team is awarded $1,000 while January 22, BOMA Edmonton was a participant in the NAIT second and third place competitors receive $800 and $400 Career Fair. This annual event attracts over 6,000 students respectively. from NAIT’s various programs.

Percy Woods, BOMA Edmonton executive vice president, Laura Sharen, Harvard Property Management Inc. and was one of the judges. “This was a great experience and a Education Committee Chair was one of the volunteers at wonderful time to watch the students present their soluthe BOMA booth. “It was a great day and I really enjoyed tions. I was impressed by how they were able to apply what my time connecting with dozens of students. It was gratifythey have been learning in preparing the case. But the real ing to give the students information about our industry. They upside to BOMA participating in the event was that the stuwere very eager to learn about us. Many of them said they dents have already approached the program chair to ask her would add commercial real estate as a potential area to look to schedule a pizza night so they can get more ‘face time’ for work when they graduate.” with BOMA members.”

6

March 2013 | BOMA Edmonton Newsletter | www.bomaedmonton.org

MACEWAN UNIVERSITY AMAZING CASE STUDY COMPETITION TEAMS WITH PERCY WOODS, BOMA EDMONTON EXECUTIVE VICE PRESIDENT

The University of Alberta will be hosting the second Annual Alberta School of Business Real Estate Industry Night on February 6. This will be a networking and information gathering session that will attract 50 – 75 commerce and MBA students. BOMA and industry members will connect with students and provide them with a better understanding of the commercial real estate industry.

“As the 2013 president for BOMA Edmonton, I am really encouraged by the increased emphasis BOMA is putting on recruiting new people to the industry and am particularly gratified by the results we have already seen in the short time we have been working on this. I look forward to more exciting things from the committee and for opportunities for

BOMA members to connect with more students as we continue our partnerships with the U of A, MacEwan and NAIT,” concludes Tony Prsa of Harvard Property Management Inc. “BOMA Edmonton is a professional organization that exists to serve the needs of its members. The organization will represent the industry to outside parties and act as a resource for information on issues relevant to the membership.” BOMA stands for Building Owners & Managers Association.

BOMA Edmonton offers its members an excellent opportunity to meet other professionals in their field on a social basis.

Meetings provide members with a valuable forum for the sharing knowledge and information that assists with effective and efficient day-to-day operations.

BOMA Edmonton monitors and lobbies pertinent legislative, regulatory and codes/standards issues, including electricity deregulation, capital gains tax relief, telecommunications, indoor air quality, private property rights and risk assessment.

Looking to reduce energy costs?

ATCO EnergySense can help. We offer unbiased commercial energy assessment services tailored to your needs.

Our energy management experts will develop custom solutions to help you achieve energy savings of up to 30 per cent, contributing to a cleaner environment and improving your bottom line.

Book your commercial energy assessment today or visit us at BUILDEX Edmonton March 19 – 20.

310-SAVE (7283) | atcoenergysense.com

www.bomaedmonton.org | BOMA Edmonton Newsletter | March 2013

7

Official Nomination Form

Go Online to www.businessinedmonton.com/lot Submissions Directions: Please complete the application in its entirety.

Send the form via fax to 587.520.5701; or scan and email to pat@businessinedmonton.com Eligibility: All nominees must own, be a partner, CEO, or President of a private or public company, and be

a primary stakeholder responsible for the recent performance of the company. In addition, the nominee’s company must be Edmonton and area based and have been in existence for a minimum of three years.

Judging Panel and Criteria: The independent panel of judges will consist of a selection of successful business leaders from the community. The judges will analyze an extensive list of criteria that will include finances, strategic direction, product or service innovation, company leadership (including personal integrity, values and key employee initiatives), community involvement and philanthropic activities.

Nominee’s Name: Title:

Nominee Print or Type Only Please

Company Name: General Company Phone: Business Address: City:

Province:

Postal Code:

Company Website: Nature of Business: Nominee’s Phone:

Nominee’s Email:

Assistant’s Name: Assistant’s Phone:

Assistant’s Email:

Has Nominee previously been nominated for Consideration? Yes / No Year(s): For any questions or follow up related to this information; please designate a contact, or confirm nominee or assistant as primary contact.

Platinum Partner

Gold Partners

HUMAN RESOURCES INSTITUTE OF ALBERTA

Meet The New Calgary Energy with Impact. Exhilarating.

E

ven the best of neighbours can surprise each other. Take a closer look at Calgary and you’ll find some amazing things you probably didn’t know about this thriving city to the south. That’s where Meetings + Conventions Calgary (MCC) comes in. As your go-to source for everything about holding a meeting or convention in Calgary, MCC will show you exactly what the city is all about.

Formed as a partnership between the Calgary Hotel Association and the Calgary TELUS Convention Centre, MCC is the first organization of its kind in Canada. We’re still a new organization, but we bring a wealth of experience to the table. We are high energy!

MCC is a one-stop shop for meeting planners, corporate clients, government and association executives. Since our connections run so deep, event planners have unfettered and direct access to suppliers without any hassles of dealing with each facility on its own.

We are in the business of energy. We partner with you to produce the results and success you expect. Energetic, engaged, resourceful, helpful, professional and proactive, we produce results and successes.

We have a great amount of Western pride in being collaborative and innovative at every step, and our services are 100% free.

2

Meetings + Conventions Calgary

Let us show you why Calgary is the prime location for your meetings and conventions.

You can expect an ease of doing business like nowhere else. Integrity, transparency, accountability and enthusiasm are trademarks of our unique brand of Western hospitality.

Let us show you why Calgary is the prime location for your meetings and conventions.

An Event Planner’s Dream With delegate capacity of up to 17,000, more than 12,000 guestrooms and over 1.2 million square feet of meeting space, Calgary has no shortage of options for event planners when you work with MCC. Related services abound, catering to the whims of all types of travelers and planners alike.

Calgary has more than 100 years of experience in hosting international events. Larger venues such as the Calgary TELUS Convention Centre, the Calgary Stampede’s BMO Centre and many smaller venues are easily found depending on your needs.

SPARK INNOVATION AT THE CENTRE OF ENERGY

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

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calgary-convention.com

With 8,000 hectares of parkland within the city, it’s also just an hour’s drive to the vistas of the Rocky Mountains and all of the cycling, hiking, biking, skiing and snowboarding you can desire.

Why Calgary Did you know ginger beef was created in Calgary in 1974 by a chef at the Silver Inn? Probably not. Well, it’s the stuff of Calgary legend, but obviously the city is vastly different from those days. Today, Calgary is a prime example of one of the cities that can boast some of the world’s most creative chefs and the best restaurants, offering up culinary delights ranging from AAA Alberta Beef to the tastes of the most refined palettes.

It’s just one example of an ever-evolving city that is now on the leading edge of the most cosmopolitan trends, from cuisine to arts and culture to a vast array of outdoor and indoor amenities. Big ideas are born under the big skies of Calgary, set with rolling foothills to the west and sunset views of the Rocky Mountains atop the Calgary Tower. It’s a city that inspires.

action, numerous golf courses, mountain climbing, cross-country skiing - we’re just getting started. MCC will guide you through the options so you’ll feel like an expert.

Calgary plays host to 23 major annual festivals each year, not to mention the action of the Calgary Stampede. You can bobsleigh at WinSport’s Canada Olympic Park, enjoy a day at one of many spas or perhaps opt for a quiet stroll along the Bow River in Prince’s Island Park in the glimmer of downtown’s skyline. Browse the more than 1,000 boutiques and shops in the city’s core; whatever your tastes, you won’t be disappointed with your selection of amenities.

Year-round major attractions include: • Calgary Stampede • Calgary Zoo • WinSport’s Canada Olympic Park

Pre + Post With 8,000 hectares of parkland within the city, it’s also just an hour’s drive to the vistas of the Rocky Mountains and all of the cycling, hiking, biking, skiing and snowboarding you can desire. Fly fishing, horseback riding at ranches surrounding the city, the equestrian prowess of Spruce Meadows, local rodeo

4

Meetings + Conventions Calgary

• Canada’s Sports Hall of Fame • Heritage Park • Fort Calgary • TELUS Spark Science Centre • Glenbow Museum • Calgary Tower

EASY MEETINGS

We make it easy for your event, large or small, to be a success. Book your next meeting or conference here, and enjoy state-of-the-art facilities, professional support and great rates. We offer over 6,000 square feet of meeting space, and 159 guest rooms, all with beautiful open spaces and great natural lighting.

High-speed wireless internet is offered throughout the property, and complimentary parking is available for all guests.

DELICIOUS MEALS

All catering is prepared fresh, in-house daily from our team at Ric’s Lounge & Grill. Whether it’s a small boardroom meeting, to a large banquet style dinner, our team can work with you to create a tailor made meal crafted from the freshest ingredients.

LOYALTY COUNTS

Four Points by Sheraton is part of Starwood Preferred GuestTM, the world’s leading loyalty program. Sign-up and become an SPG member to start accumulating points for every meeting or event you book. Accumulated points can then be used by you for free hotel nights at Starwood Properties around the world.

Ric’s Lounge & Grill Four Points by Sheraton Calgary Airport 2875 Sunridge Way NE, Calgary, Alberta For more information, visit us online at: www.fourpointscalgaryairport.ca or call 403.648.3180

In the centre of downtown, you can tap into the resources of the Global Business Centre, which has evolved into a hub for local and international business.

A Global Corporate Energy Centre The energy of this adrenaline-fuelled city can be found in the heart of the oilpatch. Calgary’s status as the home to the majority of Canada’s oil and gas production companies, major pipeline operators, oilfield service and drilling companies and energy-related engineering and consulting firms makes that clear. Calgary’s finance and business industry has experienced record growth in the last decade to keep up with the fast pace of the energy industry. In the centre of downtown, you can tap into the resources of the Global Business Centre, which has evolved into a hub for local and international business. Calgary also has the second-largest number of head offices in the country and leads the nation in technology startup companies. Calgary is all about energy, but there’s much more to it than that.

MCC helps you make those connections in every industry.

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Meetings + Conventions Calgary

A Transportation Gateway The Calgary International Airport (YYC) has rebranded itself and is undergoing a $2 billion expansion and facelift, including a new 300-room hotel, the largest runway in Canada and the new International Facilities Terminal. The city’s light rail transit (LRT) system has recently undergone a major expansion on several of its lines, making it even easier to get around the city. Wherever you’re going – and however – any mode of transportation you need is within walking distance.

The team at MCC will help you navigate any challenge.

Experience with Western Hospitality From our famous White Hat ceremonies to the volunteer spirit of Calgary, everybody leaves the city with different memories. You can feel the cowboy spirit alive and well.

The Smithbilt cowboy hat is an internationally recognized symbol of the city, but it only scratches the surface. It’s a city with a healthy balance of work and play, and a unique diversity that celebrates all who come. As a city with a large migration from other parts of Canada and abroad, we’re used to visitors and we welcome them.

Arts and Culture Smile, relax and take in one of the shows at the estimated 190 venues for live performing arts around the city, including the EPCOR Centre for the Performing Arts. Cruise the city’s art galleries, discover the Glenbow Museum or take in the eclectic spirit of the 23 annual

SET HIGH EXPECTATIONS – WE DO. Host your next meeting or event at a Marriott hotel in Calgary and enjoy: • New, contemporary and flexible spaces • Professional and expert advice • Customizable world-class cuisine • Discounted guestroom blocks* Inquire about your next meeting or event today!

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festivals held in Calgary each year. It is a social, creative, innovative, energetic arts and culture scene that runs late into the night and early into the morning. The Cantos Music Foundation and National Music Centre is set to undergo its transformation to become a stunning gateway to downtown’s thriving and vibrant cultural district.

Feel the Energy The Global Petroleum Show comes to town and brings 63,000 delegates every two years. It’s a shining example of the city’s concentration of energy firms as displays go up and equipment is loaded into position at this trade show and industry networking event. Joining their Canadian counterparts, the city is also well-known as a hub for some of the world’s largest international oil and gas companies. It’s often said that Calgary is a big city that feels like a small town. That’s due, in part, to the high concentration of oil and gas workers, executives and high-powered decision-makers – all within walking distance of each other in the city’s core.

A Technology Hub Not to be overshadowed by the dominant energy sector are the thousands of thriving technology startups, from the smallest ventures to sudden success stories that explode. Calgary is home to the largest number of technology startups per capita in Canada. Innovation breeds creativity. That takes knowledge and ideas to new heights. The information and communications technology (ICT) firms also cater largely to the energy sector, directly benefiting from the wealth generated in that industry.

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Meetings + Conventions Calgary

The Weather When a city can go from -20 degrees to 5 degrees above within a matter of hours, it brings instant reprieve from a few of those prairie winter days. Calgary is wellknown for its extremely warm and welcomed Chinooks. When it is cold, there’s always an extensive indoor elevated 15 degree pedway system that allows pedestrians to skip the winter weather altogether. Calgary is also surprisingly close to many other types of climactic zones.

To the southeast, you have the blistering heat of the badlands under a sunny summer sky. To the west you have warm winter days in the summer at the top of some of the highest peaks in the Rocky Mountains. It’s a unique mixture, so layer up.

Not to be overshadowed by the dominant energy sector are the thousands of thriving technology startups, from the smallest ventures to sudden success stories that explode.

Calgary is home to the largest number of technology startups per capita in Canada.

SucceSSful MeetingS Start at the Coast Plaza Hotel and ConferenCe Centre Business class comfort with 248 spacious guestrooms and suites.

Versatile Meeting Facilities with over 20,000 sq. ft. of function space.

Exceptional catering. Our skilled chefs will create fresh delectable fare capable of pleasing all tastes.

Distinctive Facilities. Horizons Bistro, Barringtons Lounge, Jimmy’s Nightclub, Indoor Pool, Fitness Centre and Sauna. Complimentary parking and internet.

All inclusive meeting packages starting from $55.00 per person.

For more information contact us at The Coast Plaza Hotel & Conference Centre 1-800-661-1464 or 403-248-8888 1316 33rd Street NE, Calgary, Alberta www.calgaryplaza.com

Dedicated to providing you with attentive service, a professional image and a memorable experience.

Calgary’s accommodation and hotel options are continuously expanding.

What’s New Calgary’s accommodation and hotel options are continuously expanding. Opening in 2013 is the 120-room Radisson Hotel and Conference Centre Airport East, featuring five banquet rooms totaling 13,500 square feet that can accommodate up to 600 people. Additionally, the Fairfield Inn

by Marriott will open adjacent to Central Memorial Park and will include 124 guest rooms, a workout facility, valet parking, and a restaurant.

Your Partner in Planning Focus your energy and get ready. MCC is the ultimate partner and will work with you every step of the way when planning a meeting or convention. Our energetic team is resourceful, proactive and professional – we are the doers. We cover every

angle of your event as your trusted advisors. We offer our services free of charge to help you plan a successful event.

• Research to find meeting rooms, exhibition halls and hotel rooms that will best suit your needs • Coordination of your requests for proposals with hotels, venues and DMCs • Creation of detailed and personalized presentations of all Calgary services, events and attractions • Production of bid documents • Recommendations on rate negotiations and site availability • Assistance of a convention services manager • Assistance in identifying local leaders and setting up a local organizing committee for your event • Development of customized promotional and attendance building tools tailored to your event • Assistance in logistical support and organizing pre/post/spouse programs

MCC is the ultimate partner and will work with you every step of the way when planning a meeting or convention. Our energetic team is resourceful, proactive and professional– we are the doers.

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Meetings + Conventions Calgary

CALGARYʼS PREMIER CONFERENCE HOTEL The Deerfoot Inn & Casino

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We’re here to make your meeting or convention a huge success. Let our professional team handle all the details for you.

We Offer 327 Spacious Guest Rooms And We Feature:

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Join Us at one of our 6 dining establishments Mohave Grill, Tobiko Sushi House, Wild Horse Pub, Cactus Lounge, Chrome Room or the Wildhorse Cafe

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Meetings + Conventions Calgary offers a turnkey solution for all your event and convention planning needs. We are ‘the’ resource and will work with you as your one-stop shop and your Partner in Planning. Start planning your event today!

Jennifer Solanne Stewart Business Development Manager info@meetingscalgary.com 403-261-8568

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Meetings + Conventions Calgary

W. BRETT WILSON Chairman, Canoe Financial Philanthropist, Entrepreneur, Author, Dragon

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ENERGY

LANDLOCKED: AN INDUSTRY WITH NOWHERE TO GO CREWS WORK TO INSTALL PIPE ON ONE OF ENBRIDGE’S HUNDREDS OF KILOMETRES OF PIPELINE IN NORTH AMERICA. PHOTO COURTESY OF ENBRIDGE INC.

Landlocked: An Industry with Nowhere to Go The oil sands industry faces barriers in every direction in getting its product to export markets.

BY DEREK SANKEY

G

ordon McCormack is somewhat dismayed by the resistance to the various pipeline projects that have been proposed to export Alberta’s bitumen to new markets and to expand output capacity to our only major existing customer – the United States. “I think even Albertans, who live with it and directly benefit from all this resource development … take it for granted,” says McCormack, president and CEO of Edmonton-based Hyduke Energy Services Inc., which designs and builds the oil rigs and equipment used in the field. “We’ve had it good for many, many years.” When it comes to projects like the proposed Keystone XL pipeline to Gulf Coast refineries, he’s baffled, not unlike many in the industry, about all the commotion; especially given the industry’s strides in environmental improvement.

The esteemed journal Nature supports it, U.S. state governors and many congressmen support it, a majority of the U.S. Senate support it, industry supports it, a majority of Americans and Canadians support it, there is a clear demand for it and supply of it, Alberta’s and Canada’s economies are almost dependent on it to get our bitumen on par with world oil prices – and to recoup the billions of dollars in lost royalties each year for both levels of government – so what gives?

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March 2013 | Business In Edmonton Magazine | www.businessinedmonton.com

Despite all the support for it, TransCanada’s proposed Keystone XL pipeline has faced innumerable obstacles in its push for a 2,700-kilometre pipeline from Alberta’s oil sands to Texas refiners in the Gulf Coast. Critics and opponents have been successful, at least to some degree, in their public relations battle to stop this energy highway from being built.

“The problem is apparGORDON MCCORMACK, PRESIDENT AND CEO OF ent,” says David MacLean, EDMONTON-BASED HYDUKE ENERGY SERVICES INC. vice president of the Alberta Enterprise Group (AEG), which represents many energy titans and other businesses that rely on a thriving energy industry. “We’ve got competitive royalties, we’ve got a great tax structure in Alberta … we’ve got a great industry with regard to how it works with the community and respect to the environment. We’ve got everything going for us, but we have a market access problem.”

ENERGY

LANDLOCKED: AN INDUSTRY WITH NOWHERE TO GO

ONE OF HYDUKE’S SLANT WORKOVER RIGS IN ALBERTA. PHOTO COURTESY OF HYDUKE.

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

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

The pipeline industry has become a lightning rod for controversy in recent months, despite having operated largely behind the scenes for decades without any significant opposition. Now, they’re front and centre in a debate about energy that seems to contradict itself at every turn.

Pipelines, for a myriad of reasons, have become a political hot potato – both at home and south of the border.

“Canada is hemorrhaging billions of dollars a year – a result of the huge gap between world prices and what we receive for our oil and gas,” Al Monaco, president and CEO of Enbridge Inc., told a crowd of Edmonton business owners who gathered in January at an event hosted by AEG. “At the same time, we are seeing unprecedented opposi-

tion to all forms of energy development and transportation,” added Monaco, whose company is behind the proposed $5.5-billion, 525,000-barrel-a- day Northern Gateway pipeline from Alberta’s oil sands to a marine terminal on the West Coast in Kitimat, B.C. Alberta crude oil currently sells at a huge discount compared to world oil prices – roughly $40 a barrel below West Texas IntermeAL MONACO, PRESIDENT AND CEO OF ENBRIDGE INC. diate (WTI) and well below Brent crude prices. The reason is simple: we have one customer – the U.S. – and as supply builds up with no other buyers available and nowhere to go, prices have plunged for Alberta crude. So far, the industry hasn’t even been able to get as much product as it could to its existing customer.

The direct impact on the federal government is easily $6 billion a year, and another $6 billion in lost revenue to www.businessinedmonton.com | Business In Edmonton Magazine | March 2013

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ENERGY

LANDLOCKED: AN INDUSTRY WITH NOWHERE TO GO

the provincial government – the same amount Enbridge Liquids Pipelines Premier Alison Redford’s Conservative govEnbridge Pipelines (NW) Inc. Olympic Pipeline ernment is losing out on.

Waupisoo Pipeline “Clearly, the stakes – for our industry, for Athabasca Pipeline Alberta, for Canada – could not be higher,” Enbridge System Norman Wells Enbridge Saskatchewan System Monaco stated. “Our resources are landlocked, North Dakota System essentially with access to only one customer – Lakehead System our partners to the south.” Enbridge is already Frontier Pipeline taking steps to expand its capacity in the U.S., Spearhead System Mid-Continent System Zama with $15 billion directed to new market access Mustang Pipeline initiatives, not including Gateway, with projChicap Pipeline Fort McMurray ects in the U.S. to expand its capacity there.

Toledo Pipeline Cheecham Tinsley Pipeline “We lack sufficient infrastructure to acEdmonton Louisiana Liquids Pipeline Hardisty cess the best U.S. markets today, and we have Blaine virtually no export capability beyond the U.S. Seattle Regina market – forcing Canada to sell its most valuCromer Rowatt Gretna able export at a massive discount,” Monaco Portland Clearbrook Minot stated. “We need to come to grips with the fact Montreal Ottawa Superior that tomorrow’s energy growth lies with the Toronto economies of Asia, requiring export capacity to Casper Salt Lake City Sarnia Buffalo the West Coast.”

Toledo Chicago Kinder Morgan’s Trans Mountain pipeline to Patoka Seattle markets has proposed doubling its caWood River pacity as another solution to ship about 800,000 Cushing barrels a day. Meanwhile, refineries in Quebec and New Brunswick are eager to start receiving Alberta crude, but there is more opposition New Orleans there as governments position themselves according to political gain.

“The solution is obviously beefing up our MAP OF ENBRIDGE’S EXISTING LIQUIDS PIPELINES. COURTESY OF ENBRIDGE. ability to get our product to market and to get it to market now – not in 10 years – but in 2014 by the public has increased or 2015,” MacLean says. “We need increased market acdramatically, says Monaco. cess … now.”

A lot of money and jobs are Eastern Canada currently imports foreign oil to its on the line. Studies project ports and refineries – something that could change if Enabout $1 trillion in revenues bridge reverses one of its current lines to ship crude east could be lost, or up to $35 to those energy-hungry markets. Shipments by rail, meanbillion a year over the next while, have been increasing rapidly.

30 years.

“We can’t build pipelines east, west or south, so someIn the meantime, uncerthing’s gotta give,” says MacLean. “It’s classrooms, it’s tainty pervades the energy hospitals (and) how we pay these bills, so it’s very real. industry – along with the Across the country, we see roadblocks.” livelihoods and the qualiThe oilfield services industry is just one of many that rely ty of life of every Canadian on accessing new markets while expanding supply to its DAVID MACLEAN, VICE PRESIDENT OF THE ALBERTA that uses a hospital, school, ENTERPRISE GROUP (AEG) existing customer to fuel growth and to create jobs in this road or otherwise enjoys province. “To me, it’s absolutely imperative that we look the luxuries of life in this country. together as a country – not only as a province – to develFor the energy industry, it’s been a frustrating exercise op a plan to access new markets,” says McCormack. All the and one that has no immediate solution on the horizon. while, the U.S. continues to move toward its goal of “enerYou can bet energy executives and the public alike will be gy independence.” This isn’t an issue that’s solely about the eagerly watching the Obama government as it reaches the West. It’s about the economic prosperity of all of Canada. final stretch of what’s hoped to be a positive outcome for What is also crucial is that the industry continues to imthe industry. prove on its gains in communicating with the public as to It is vital for Alberta’s and Canada’s economic well-beexactly what’s at stake. For years, the industry didn’t do a ing into the future. “It’s important to recognize this is not good enough job of getting their message out. Over the past just a problem for the energy industry,” Monaco concludes. several months, the level of understanding and awareness “It impacts all Canadians.” BIE

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March 2013 | Business In Edmonton Magazine | www.businessinedmonton.com

Pioneer Truck Lines • 25 Years

Pioneer Truck Lines Ltd. would like to send out a special thank you to all the Customers and Suppliers that sent such warm greetings to our company for our 25th anniversary.

Without their continued support and services we never would have grown as we have.

Edmonton Kenworth Ltd. DRM Recovery Ltd. FPB Insurance Brokers OK Tire City Spring Ltd. Cooling Systems Services Kendall Oilfield Contracting Ltd. Central Cam Canfab Products Ltd. R & D Trailer Rentals Ltd. The LEDCOR Group of Companies Fountain Tire Fleet and Truck Campbell- Mack Supply (1985) Ltd.

Thank you! We wish you the best in the future.

Let’s continue growing together.

8321 – 1st Street, Edmonton, Alberta T6P – 1X2 • Tel: 780.467.8880 Fax: 780.417.8956 www.pioneertrucklines.com

CONSTRUCTION

EDMONTON’S BRIGHT CONSTRUCTION FORECAST

Edmonton’s Bright Construction P

Forecast ositive construction trends across all sectors in Edmonton builds excitement for homebuilders, leasing agents and neighbourhoods slated for improvements.

The running joke in Edmonton is that we don’t experience typical seasons. We have winter, spring, construction and fall. Work on main roads, repairs of overpasses and the proliferation of new buildings during our short weeks of summer makes it seem like Edmonton is in a constant state of construction. But with the building boom of 2006 - 2008 behind us and the recession that followed now a fading memory, what does the future hold for construction in Edmonton?

According to numbers released by the City of Edmonton along with views of homebuilders and leasing agents, the future looks promising. The last six months of 2012 showed a positive construction trend with the City of Edmonton issuing 6,510 building permits across all sectors for a total construction value of over $1 billion.

These permits added 5,195 new units (apartment, detached, semi-detached and row housing) in Edmonton.

Between January 2, 2013 and January 15, 2013, the City of Edmonton issued 386 building permits worth a total construction value of $64 million. The permits issued during that time frame will add 327 new units to the metropolis.

Comparatively, the value of Edmonton’s building permits for 2011 totaled $2.82 billion ($1.82 billion residential value and $1 billion non-residential value). The value of building permits for 2012 was $3.42 billion ($2.17 billion residential value and $1.24 billion non-residential value). Values rose 21 per cent between 2011 and 2012.

Industrial permits experienced the highest increase in construction value while commercial permits increased by 25% and residential by 19 per cent. These trends are expected to continue in 2013.

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March 2013 | Business In Edmonton Magazine | www.businessinedmonton.com

BY NERISSA MCNAUGHTON

CONSTRUCTION

EDMONTON’S BRIGHT CONSTRUCTION FORECAST

www.businessinedmonton.com | Business In Edmonton Magazine | March 2013

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CONSTRUCTION

EDMONTON’S BRIGHT CONSTRUCTION FORECAST

This trend is good news for homebuilders. Parkwood Master Builder, a family owned and operated builder of elite custom homes, is very optimistic. Parkwood has been in business for 24 years, and 2012 was their strongest year to date. Callie Hamill, sales and marketing manager, looks forward to the momentum continuing in 2013.

“The economy is very good in Edmonton and that means people want to buy homes,” says Hamill.

“We are very excited.”

Eric Nashman, sales and marking manager for Greenboro Homes, points out a possible reason for renewed interest in new-construcTHE FINISHING TOUCHES GO ON THE EXTERIOR OF THE NEW SUBWAY AT CENTURY CROSSING. tion homes. The price gap between new and previously owned homes has narrowed considerably. Currently, there is not a large disparity in the prices, so many homeowners are opting to build rather than buy used. Like Parkwood, Greenboro had a strong year in 2012 and looks forward to a great year in 2013. “It won’t be like it was in 2007 and 2006,” says Nashman, “but it will be healthy and people are more accepting when there is a positive outlook.”

The construction boom of 2006 – 2008 resulted in a massive shortage of skilled trade labour; however, both Hamill and NashROW HOUSES UNDER CONSTRUCTION IN A GREENBURY DEVELOPMENT. man agree that despite healthy projections for 2013, the trades When asked about retail construction in Edmonton, should be relatively stable. Nashman has not seen a lot of Jamie Topham, retail division leader in Edmonton for new start-up companies in the trades, but notes the esCushman & Wakefield Global Real Estate Solutions, says tablished companies are busy and have the advantage of “2012 was a robust year and this should continue into selecting which projects they want to undertake. Park2013.” Topham explains that Windermere, Manning Freewood Master Builder is less affected by the availability of way, Century Crossing and Emerald Hills are just some of trade labour because they opt to build up to 120 homes in the non-residential construction projects that are driven Edmonton per year (contrasted with up to 600 per year by big box and quick service retail (QSR). When nationbuilt by national homebuilders) using a selection of trades al retailers such as Winners, Walmart or Save On Foods with which the company has an established working rela“anchor” a location, QSR franchises follow. Brands such tionship. “A boom is where people are literally lined up at as Subway, Starbucks, and Reitman’s benefit from being the door and the builder has to limit sales,” says Hamill. grouped together with the anchor, creating quick and She feels that Edmonton is not at that level of intensity easy access for shoppers who want to buy at Walmart, right now. lunch at Subway, grab a coffee at Starbucks and then pop Homebuilders are not the only ones expecting great into Payless. things from 2013. Commercial building permits are also on However, as Nora Lizotte of Lizotte and Associates the rise and according to Statistics Canada, “investment (in watches commercial condos go up around Edmonton, her non-residential building construction) increased in 18 of firm faces an interesting challenge. “We have a big demand 34 census metropolitan areas. The largest increases were for people wanting freestanding buildings over commerin Vancouver, Montréal, Ottawa and Edmonton.”

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March 2013 | Business In Edmonton Magazine | www.businessinedmonton.com

CONSTRUCTION

EDMONTON’S BRIGHT CONSTRUCTION FORECAST

A PYLON SIGN AT CENTURY CROSSING FILLS UP AS NEW STORES OPEN.

cial condos,” says Lizotte. “People are not selling (their freestanding commercial buildings) right now, or they go on the market and they get multiple offers.”

Lizotte feels the demand for freestanding commercial units is not backed by positive numbers, and that is why commercial condos, which are more cost effective to build and maintain, are being constructed over freestanding units. “It’s always a numbers game for the seller and the buyer,” says Lizotte. As the older freestanding commercial spaces are demolished to make way for new business condos, demand for these vanishing units increases dramatically. Commercial buildings on 124th street, for example, are particularly desirable, but the owners recognize their value and do not want to sell.

Like Hamill and Nashman, neither Topham nor Lizotte feel Edmonton is in another construction boom – at least, not yet. “There is some optimism, but it’s hard to predict more than a few years. Investors and financers are wary because of the United States’ economy,” cautions Lizotte.

Topham indicates that we are “not in an uncontrolled boom, but there is an upward trend.” While he feels construction prices will remain stable during the anticipated period of construction prosperity, he predicts a boom could occur in 2013.

The City of Edmonton’s 2012 – 2014 capital budget in-

cludes a number of infrastructure construction projects.

A total of $765.2 million has been allocated for road design and construction. This will encompass rehabilitation of arterial roads, primary highways, collector roads, mature neighbourhood rehabilitation, planning studies, streetscapes and major interchange construction. This budget also includes the Neighbourhood Renewal Program, which consists of preventative maintenance and renewal of the roadway base, paving, curbs, gutters, and sidewalks in existing neighbourhoods. Of the $752.9 million planned for transit initiatives, a significant portion will go towards the expansion of the LRT line to the Northern Alberta Institute of Technology (NAIT) and preliminary engineering for the west and southeast LRT lines. A portion of the $45.4 million intended for neighbourhood and community development will go to support construction of a permanent sports park for non-motorized recreation in southeast Edmonton.

Construction in Edmonton across all sectors is looks very positive for the near future, and while we can expect winter to bring snow, spring to bring rain, and fall to turn Edmonton into a artistic canvas of colored leaves, we know that the season of construction will bring prosperity to Edmonton; and that is just as welcome as a summer heat wave. BIE www.businessinedmonton.com | Business In Edmonton Magazine | March 2013

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Highland Moving Turns 75

By Mark Kandborg

T

he year was 1938 and Peter Kachur had just bought himson, brought about another change. Thompson, head of the self a truck that carried his future. It came bundled with a world’s largest international moving company, said: “Come with company called Jim’s Express Transfer and Baggage Haulme to Hong Kong, and in three days you’ll know about internaing, Ltd. Legend has it that Peter kept the name Jim’s Express betional moving.” Upon his return, Don started looking for somecause he didn’t have the paint to change the writing on the doors. one with international experience to take Highland to the next What he did have was business sense, which he applied liberally level. Enter Paul Wielens, Highland’s International rating clerk to his little business, growing it bit by bit over the decades. and now, their CEO. International moving requires exceptional By the mid-60’s, Peter’s two sons, Norman and younger brother skills to navigate the regulations and paperwork involved. “We Don, were each considering ways of making their own mark in the ship everywhere,” Wielens says. “You name it, we’ll get it there.” world. Their father’s health was failing, so he offered his eldest the chance to take over the business. Norm agreed, and ran Jim’s Express successfully for the next 10 years. In 1974, younger brother Don bought into the company.

The forming of that fraternal partnership was auspicious as it marked the germination of an entirely new business model. “We knew that delivering used furniture wasn’t the future,” Don Kachur, now president of the company, says. “We saw that MacCosham’s was rich, and we weren’t. So we said, let’s do what they’re doing.” They joined United Van Lines, bought land, built a warehouse and got down to the task of selling their services to the corporate sector.

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

Don Kachur, and Norman and Don realized it was time to Casey Kachur change the name during a meeting with Brian continue a 75-year Ascough of PWA. There was one thing keeptradition in moving. ing them from landing the account. “Brian asked if we would feel safe flying to Calgary Right: They really on ‘Pete’s Airline’. We got the point.” Jim’s Exmean it when press and Baggage Hauling was re-imagined they say as Highland Moving and Storage, and in “we started in a 1994, Don Kachur assumed full ownership of garage.” the company.

A few years later, a conversation between Don and a successful colleague, Jim Thomp-

Highland Moving & Storage Ltd. | 75th Anniversary

Secure, heated storage in Highland Moving’s modern warehouse.

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

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

Highland Moving and Storage Ltd. on your 75th anniversary!

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Highland Moving & Storage Ltd. | 75th Anniversary

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EDMONTON.COM

NEW TOURISM VP JOINS EEDC THIS SPRING

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aggie Davison joins Edmonton Economic Development Corporation as vice-president of tourism effective April 8, 2013.

Currently the CEO of tourism Jasper, which she created from the ground up, Davison evolved Jasper into a premier destination in the Canadian Rockies. Before arriving in Jasper she led significant initiatives at the Canadian Tourism Commission starting in 2005. She headed Canadian tourism marketing, increased United Kingdom visits to Canada and led business development for the commission’s Vancouver Olympic Games strategy.

Davison’s original brush with tourism and travel began through her acquisition and operation of a Goliger’s Travel franchise in 1990

MAGGIE DAVISON

where she grew the agency’s sales.

Following this, she moved to TravelP-

lus, a huge consortium of independent owners, where she eventually became CEO and president, implementing North America’s first international quality certification of its kind. From there, Maggie became managing director of the travel retail division at First Choice in 2001.

Playing a key role in working with the industry and shaping Edmonton’s future, Davison says, “I am excited to be joining EEDC’s team and especially look forward to building on my already established relationships with key partners like Edmonton’s Destination Marketing Hotels group, Travel Alberta and the Canadian Tourism Commission.” Her experience and vision align with EEDC’s goal of making the region one of Canada’s top-performing tourism destinations.

EEDC UNVEILS 2013 STATEMENT OF INTENT

EEDC HEAD BRAD FERGUSON DISCUSSES WHAT’S AHEAD IN 2013.

D

id you miss our 2013 Impact luncheon on January 15? Edmonton Economic Development Corporation president and CEO, Brad

Ferguson, outlined the organization’s new structure and how it will contribute to a productive agency through its 2013 statement of intent.

“We are upfront and clear in outlining what we are about and what we will do this year,” says Ferguson. “Edmonton is a great northern city with unlimited entrepreneurship, education and energy — we will be a beacon toward which people who crave opportunity will come.”

Keynote speaker Rick George, former president and CEO of Suncor Energy, spoke about energy opportunities in Alberta and beyond in his recently published book, Sun Rise: Suncor, The Oil Sands, and the Future of Energy.

For more on the Impact event, visit www.edmonton.com/impact where you can watch a video of both speeches and read EEDC’s Statement of Intent.

www.businessinedmonton.com | Business In Edmonton Magazine | March 2013

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EDMONTON.COM

EDMONTON LANDS PRESTIGIOUS 2014 TRIATHLON FINALE

ONE OF EDMONTON’S LARGEST GATHERINGS OF ATHLETES WILL TAKE PLACE IN SEPTEMBER 2014.

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ore than 5,000 participating athletes and a worldwide television audience of 21 million will make Edmonton the world’s sporting capital in September 2014 when we host the International Triathlon Union’s (ITU) Grand Finale. The bid’s success is the result of collaboration by Edmonton Economic Development Corporation, the City of Edmonton and Edmonton Triathlon Academy.

Already host of an annual ITU World Cup event in the summer that brings 750 competitors to the city, Edmonton will host the Grand Final, the last race on the 2014 World Triathlon Series calendar. As a result, Edmonton will rank alongside such international cities as Auckland, New Zealand (2012 host) and London, England (2013 host).

Between $15 and $20 million in

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economic impact is expected to be generated by the event, bringing new spending into the region’s economy.

In addition, the Grand Final will further establish Edmonton as the home of triathlon in Canada. The Edmonton Triathlon Academy was accredited recently as one of only five Canadian regional triathlon training centres.

This will be one of the largest gatherings of athletes in Edmonton.

Around 22,000 participants met here for the 2005 World Masters Games while the 2001 World Championships in Athletics brought in almost 1,700 athletes. The 1983 University Games attracted 2,400 athletes, and the 1978 Commonwealth Games were attended by approximately 1,500 athletes.

Vancouver’s 2010 Olympic Games attracted just over 2,500 athletes.

Hosting international events raises global awareness of Edmonton and

March 2013 | Business In Edmonton Magazine | www.businessinedmonton.com

brings new spending into the regional economy. Statistics from last year’s Grand Final in Auckland showed that the 3,200-plus age-category athletes and an equal number of their families and friends visited the host country for an average stay of 10 days.

• Edmonton hosts the 2013 ITU World Cup event June 21-23 • Edmonton will forego hosting the smaller 2014 ITU World Cup event to focus on hosting the 2014 Grand Final • Event will attract 5,000-plus athletes and TV audience of 21 million in 160 countries • Elite, age group, junior and paratriathletes from all continents will congregate in Edmonton

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