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VOL.XVII NO.2

FEBRUARY 2006

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Renovation: $3.8 billion business • RENO SHOW GUIDE INSIDE • Terrorized? Forbes • 60 Minutes WegmannSanchez • Shareholder wealth Hiebert Linda Bodo & Showman Rick Young

pompous & unfair FUNNY

Travel alert

Edmontonians terrorized by U.S. Customs

By Muggsy Forbes

ave you driven past Weber

Motors on Calgary Trail South and wondered about all the construction? Well, wonder no more. I was curious about the new front door so close to a major roadway. Turns out, the former Mercedes Benz showroom will become the exclusive showcase for the new Smart Car. A sparkling new showroom for the Benzes is being built on the north side, where the used car lot will also be located. The shock to me was that the oddly shaped, little Smart Car will actually have its own showroom. I’m told Weber sells every one it can get its hands on. My trouble with the Smart Car is that I’m an extra large, and it’s a medium. Over at the Mazda dealership down the road, nothing is changing—it just keeps humming along.

I’m so glad pant manufacturers are finally making trousers with an expandable waist. It stretches a couple of inches—perfect for those of us with that male deformity known as Noassatol. My image from the side is straight up and down at the back. Normal pants in my correct size flap in a strong wind. Now, with the advent of the flexible waist, I can buy a pair one size smaller—and voila! There’s no flapping. Amazing, the things you learn reading me.

Teddy’s Restaurant has been sold. I’ve been a

regular for many years. My first memories are of a place with white wooden siding, more like a large house than a business. Teddy’s has always been in the same location, 114 Street and Jasper Avenue. As I recall, when you walked in, the cafe was on the left, complete with stools at sort-of horseshoe counters with booths at the back wall. On the right side was the convenience store/deli with a few groceries and lots of good smoked meat. Even then, it was famous for its smoked meat and it became a well known hangout for many of us up-and-coming types. (At least we thought we were pretty hot stuff in the ’50s with our zoot suit pants and long chains. These fashion classics were 32 inches around the knee with about 12 inches around the ankle— zippered so you could get into them.) The smoked meats are as good today as they were back then. The gentleman who bought the landmark has lots to live up to. Nasrollah Ghalehdar has been in the food business for 18 years. He says the only change he’s making is that the upstairs will be fine dining

with a Mediterranean theme. “Healthy,” he said. Healthy, schmealthy—just don’t fool around with the smoked meat. When my son Cam comes in from Vancouver, Teddy’s is his first stop, he craves it so badly.

Never travel with one of my co-workers at MBS Insurance Brokers Ltd. Late last year, Jim McLaughlin and his wife Judy headed off to Honolulu for a holiday. With about 45 minutes to flight time, they were going through security in Vancouver. Inexplicably, Jim was hauled out of the line and taken to a holding room by U.S. Customs. They went through his papers: passport, not good enough… driver’s licence, acceptable. They asked him a lot of questions. He reminded them of his flight time. At one point, a U.S. Customs officer rushed in, cell phone at his ear, and asked if he had been in Northern Ireland recently. (Remember this question.) Jim said, “Of course not!” and told them he’d never been outside North America. When they finally said he could leave, he mentioned to the Air Canada rep in the room that there was only five minutes to take off. She said they would hold the plane. When Jim and Judy reached the Air Canada counter, their seats had been sold and the plane had gone. Now what? Well… since Air Canada didn’t cause the McLaughlins’ delay, Jim and Judy were on their own. Hotel, food and taxis, plus one day lost from a pre-paid holiday: about $500. One missed day with relatives: priceless. Air Canada sort of goes underground when it comes to a user-friendly complaint system. There are no phone numbers, just an e-mail address. Jim wrote but it didn’t do much good. No apology for telling him the flight would be held, no explanation for the seats being sold. The response did end with: “We hope you’ll fly with Air Canada again.” Uhh, uhh… not likely. Now, back to the question. The Honolulu encounter faced by Jim also occured when U.S. Customs hauled him out of a line as he was leaving for a business trip to Las Vegas. This time, he didn’t miss the flight. Jim actually has been escorted to a U.S. Customs holding room four times since 9-11. What’s so frustrating is that no one will tell him the problem or put a note on his U.S. file. Based on what he’s asked in these sessions, Jim thinks he has the same name as an Irish terrorist. Remember the question?

Does Edmonton’s Jim McLaughlin look like a notorious Irish James McLaughlin?

My thanks to Ron Funnell, the new executive director of Ronald McDonald House, for touring me through the facility at 7726-107 Street. I hadn’t visited in many years. The brightness, comfort, and planning that went into ensuring the clients, in their time of stress, feel more at home is impressive. Now, because of the success of the Stollery Children’s Hospital, families are being turned away due to lack of space. Expansion plans are in the works. Land acquisition was a primary factor, and so was deciding whether it should be closer to the current location or to the Stollery. The executives of Ronald McDonald House took advantage of an opportunity and approached the elderly lady who owned the property directly behind the existing home. She agreed to sell. They asked if she knew who owned the property next door... She did but suggested that the owner was a mean old guy (actually stronger words were used) who would never, never sell. Upon searching the title, the mean old guy turned out to be another elderly lady who had recently sold the place to someone else. Well… the minister who bought it found it in his heart (no surprise) to sell to the Ronald McDonald House group. How great is that? I met House Manager Joan Hayes. I think she should be called the House Mother. She has a gentleness about her that makes her a natural for the job she has held for the past eight years. Tom Burke is the chair of the 13-director board, all dedicated to the House… and probably heavy drinkers of coffee under the Golden Arches. Funding comes from the public, government and McDonald’s. Make sure you add Ronald’s House to your charity list.

I’m glad the CBC’s drive home guy, Peter Brown, is back on air regularly. The CBC is my favourite radio station. During the strike, I tried other stations, but found either shouting, nothing but music, or not particularly interesting commentary. Peter seems to have more holidays than a Catholic calendar. ✔ Additional reporting by Edmontonians’ staff. Call Muggsy Forbes at 780.482.4545 or e-mail mforbes@edmontonians.com

Scott Kay Vintage Platinum Collection EDMONTONIANS FEBRUARY 2006

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Poll

CELEBRATING

STATION

YEARS

With Linda Banister

FOUNDER DICK MacLEAN

Vol. XVII

FEBRUARY 2006

ater is an essential aspect of daily life throughout the world, yet only 2.5 percent of the world’s water is freshwater. As Canadians, we are fortunate to have access to roughly nine percent of the world’s accessible freshwater, according to the Centre for Research and Information on Canada (CRIC) website. Edmontonians were asked about their use and views on Canadian freshwater.

No. 2

SHARON MacLEAN Publisher and Advertising Director Telephone: 780.482.7000 Fax: 780.488.9317 e-mail: info@edmontonians.com edmontonians.com

INSIDE FUNNY, POMPOUS AND UNFAIR Travel alert/Forbes . . . . . . . . . . . . . . . . . . . . . . . .2

FEATURE Renovation generation/Deters . . . . . . . . . . . . . . . .4 LIVELY LIFESTYLES Menu Magic/Berry . . . . . . . . . . . . . . . . . . . . . . . .6 Absolute Bodo/Bodo . . . . . . . . . . . . . . . . . . . . . . .7 RENOVATION SHOW GUIDE . . . . . . . . . . . . . .8/9 COVER STORY The Showman/Deters with Roccia . . . . . . . . . . . .10

WHAT IS YOUR MAIN SOURCE OF DRINKING WATER AND WHY? Percentage

POLL STATION Freshwater supply/Banister . . . . . . . . . . . . . . . . . .3

MAKING MONEY Shareholder wealth/Hiebert . . . . . . . . . . . . . . . . .12 BUSINESS WITHOUT BORDERS Prudent angels/Mothersill . . . . . . . . . . . . . . . . . .12 BIZINTEL Science and Tech/Croucher . . . . . . . . . . . . . . . . .13 Media Minute/Hogle . . . . . . . . . . . . . . . . . . . . . .13 BizIT/Michetti . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Civic Buzz/Norwood . . . . . . . . . . . . . . . . . . . . . .14 DOWNTOWN ACTION . . . . . . . . . . . . . . . . . . .15

BARB DETERS Editor

editor@edmontonians.com COLUMNISTS Linda Banister Linda Bodo Cheryl Croucher Muggsy Forbes Ron Hiebert Bruce Hogle Greg Michetti W. Daniel Mothersill David Norwood Nizar J. Somji Jessica Wegmann-Sanchez FEATURE WRITERS Murray Donaldson Peter Drake McHugh Michael O’Toole Marg. Pullishy Peter Roccia PHOTOGRAPHERS Terry Bourque Cheryl Croucher Barb Deters Ed Ellis Terry Ellis GRAPHIC PRODUCTION Rage Studios Inc. INFORMATION TECHNOLOGY Michetti Information Solutions Inc.

THIS MONTH’S COVER

NATIONALLY, WHICH SECTOR CONSUMES THE GREATEST AMOUNT OF FRESH WATER?

58% 18%

INTERNATIONAL BUSINESS Going Dutch/Wegman-Sanchez . . . . . . . . . . . . . .11 Indicated they mostly drank unfiltered tap water

good job of keeping the water clean, while eight percent did not feel that the City was doing a good job.

Indicated they mostly drank filtered tap water

11%

Indicated they mostly drank water from a water cooler

Indicated they mostly drank bottled water

To begin, respondents were asked what their main source of drinking water was. Overall, 58 percent indicated that unfiltered tap water was their main source for drinking, while 18 percent drank filtered tap water. Eleven percent mainly drank water from a cooler, and a further 11 percent preferred bottled water. There were a number of reasons why respondents did not drink unfiltered water from the tap. While the top reason (21 percent) was merely a preference for bottled water, 18 percent felt there was too much pollution in unfiltered water, while nine percent did not enjoy the amount of minerals in regular tap water. Six percent indicated unfiltered tap water tasted like chlorine, and another six percent were concerned about parasites, bacteria, or disease in their water.

Switching to a more national perspective, respondents were then asked what sector they felt utilized the largest amount of freshwater in Canada. Of those asked, 16 percent thought the agricultural sector used the most, while seven percent thought the industrial sector used the most freshwater. Interestingly, according to the CRIC, in 1999 thermal power generation constituted 64 percent of all freshwater use in Canada, while manufacturing used 14 percent, municipalities utilized 12 percent, agriculture 12 percent, and mining used one percent of the freshwater supply in Canada. Finally, respondents were asked whether the Canadian government should implement stricter water use policies in Canada. Threequarters of respondents felt there is a need for firmer water policy in Canada (particularly regarding water conservation), while 24 percent did not see any need.

ARE YOU CONCERNED ABOUT THE CITY’S WATER SUPPLY AND QUALITY?

The Poll Station surveyed 100 City of Edmonton residents on the topic and, while the results of the research are not statistically reliable, they do provide a qualitative indication of what Edmontonians are thinking. ✔

Respondents were asked whether they were concerned about the City’s water supply after the North Saskatchewan River flooded last June. Eighty-four percent stated they were not concerned at all, while 15 percent indicated they did have some concerns regarding the quality of the City’s water supply. Respondents were also asked about their views on the City’s ability to purify Edmonton’s water supply. Overall, 88 percent felt the City did a

Linda Banister is a certified management consultant and the owner of Banister Research and Consulting Inc., a full service provider of market research and program evaluation services. If you have a question you would like included in the Edmontonians Poll, contact Linda at 780.451.4444 or e-mail at lbanister@edmontonians.com. For further information on the firm visit www.banister.ab.ca.

Executive Welcome Do you know of an executive who is new to Edmonton, recently joined a company or newly promoted? If so, let Cecile Lupul help them find their way around the city’s business community.

Call Cecile Lupul today: Phone/fax: 780.922.6413 E-mail: cglupul@hotmail.com

ATTENTION BUSINESS OWNERS, EXECUTIVES, ENTREPRENEURS, INVENTORS...

THE MASTERMIND PRINCIPLE In his timeless classic, “Think and Grow Rich,” Dr. Napoleon Hill describes the Mastermind as “Coordination of knowledge and effort, in a spirit of harmony, between two or more people, for the attainment of a definite purpose.” He further states, “Analyze the record of any man who has accumulated any great fortune, and many of those who have accumulated modest fortunes, and you will find that they have either consciously or unconsciously employed the Mastermind Principle. Your understanding of this truth may definitely determine your financial status.” The Mastermind Club’s purpose is to educate and inspire people to create greater success in their lives by applying the Principle of the Mastermind.

Ready to Reno... Linda Bodo with Rick Young at Alterity Interiors Cover photo by Ellis Brothers Photography Published by 399620 Alberta Ltd. on the first day of each month at 333, 10240 - 124 Street, Edmonton, Alberta, Canada T5N 3W6. ©All rights reserved. No part of this publication may be reprinted or reproduced in any form without written permission from the publisher. Manuscripts: must be accompanied by a stamped, selfaddressed envelope. Edmontonians is not responsible for unsolicited manuscripts. All stories Copyright ©Edmontonians Publications Mail Agreement No. 40023292 Return undeliverable Canadian addresses to: Circulation Department 333, 10240 - 124 Street Edmonton, AB T5N 3W6 Email: info@edmontonians.com

The club meets every Wednesday evening from 7:00 – 10:00 at the Fantasyland Hotel, West Edmonton Mall, Edmonton, AB. See more details about their events at www.MastermindClubs.com or contact Sandra at 1.866.913.6287 Get a FREE Report “The Billion Dollar Sales Letter” by sending an email to Sandra@MastermindClubs.com

EDMONTONIANS FEBRUARY 2006 Proof____2_______________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

Ellis Brothers Photography

Keith Burgess ...on site.

The renovation generation Mortgage rates, new family dynamics and couples’ therapy By Barb Deters with Peter Roccia

emember the Money Pit? If that isn’t enough to turn you off renovating your house, surely the horror stories on HGTV’s Holmes on Homes should be a discouraging factor. Apparently not. Fuelled by a buoyant economy, Albertans are spending billions on renovating their homes. In 2005, we expended $3.8 billion on upgrading, not far behind $4.2 billion on new home construction. And there’s a good chance far more reno bucks—either spent by do-it-yourselfers or paid out in cash deals— didn’t register in the official calculation. This is big business, a growing sector in the construction industry. The Alberta Home Builders’ Association includes a Renovation Council that was formed in the mid-1990s to differentiate these specialty builders. According to Bob Schulz, chair of the Council, “It brings together renovators, trades, and suppliers. Builders have a million rules and regulation issues, but we found renovators have a different set of issues. Our purpose is threefold: one, public education, to inform the public better about what renovating a house or condo involves… two, to encourage people to use our members… and three, to get information and network through a provincial set-up.” In addition to the members of the Council, Edmonton boasts a number of highly reputable renovation contractors that have been around since the emergence of home remodeling about 20 years ago. 4

Back then, a nice reno cost about $12,000. Nowadays, that gets you a nice bathroom. “We have to remember that in the past we’ve seen mortgage rates between eight percent and 18 percent. Now they’re at 4.25 percent.” says Schulz who is with The Renovation Corporation. “In the 1970s, we

Bob Schulz, The Renovation Corporation sold homes for under $20,000. You can’t buy those homes for that price now. In St. Albert, the population has grown to 55,000 from 5,500. A home that went for $18,500 then would go for $200,000 now. If you’ve owned that house for 35 years now,

that house owes you nothing. You can still renovate it, sell it, and have a nest egg. “A new buyer can pick up a home for $300,000 and then choose to renovate or rebuild… spend between $200,000 and $300,000 for a reno. “Younger people want to enhance what they have. They’ll do a basement or a kitchen or a bathroom. A family will revise a kitchen and maybe make an addition, knock off a half story and make it full. Professional couples tend to be more aggressive, maybe blow out the kitchen. “In the ’70s and ’80s, the more rooms there were, the better, so you got homes with lots of small rooms,” explains Schulz. “Now there’s more of a great room concept, one big room with more functions. People operate differently. Not as many need a dining room anymore, because people still tend to congregate in the kitchen. They want bars, islands—open spaces from which you can see the kids, the fireplaces or the TV. Lorne Clark of J-Meg Renovations says changes in lifestyles have influenced design. “In the ’50s, everyone had a room. The fathers would have a cigar and brandy in the den or living room. The mothers would gather in the kitchen. The children would be downstairs. Everyone wants to be together now. The family dynamic has changed. Now, we’ve moved to more of an open plan. People want that open affect. There’s not a definite front room and kitchen anymore. When the basements are redone, now they’re often better than the upstairs.” The principles of Hastings Ilagan Design concur. “The three-bedroom bungalow can’t meet today’s EDMONTONIANS FEBRUARY 2006

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family, school. They don’t want to disrupt that through a move,” says Schulz. “There are changes in the housing stock. Expectations have changed. The financing has changed. Overall, it’s a combination of economics, place, jobs, growth, and families maturing. It’s taken 12 years for the economy to recover. In that time, there was next to no investment in houses. For a $300,000 home at a three percent down payment, that’s $15,000.” These factors affect industry pricing and competition. Schulz’ Renovation Corporation doesn’t price more than three weeks in advance. “Sometimes it’s hard to get four people to bid on a job. For a $200,000-job, I bet that in all those interested in doing the job, you won’t find a five-percent difference in price. It is competitive but, competition notwithstanding, we’re all using materials the client chose. The labour costs are the same.”

J-Meg’s Lorne Clark

HIGH STRESS ZONE Paul Hastings, George Ilagan, in New York with couture designer Michael Kaye, a former Edmontonian. lifestyle,” says architect George Ilagan. Contractor Paul Hastings points out that, in the majority of post WWII homes, “children shared bedrooms… the entire family shared the bathroom. Now, every bedroom has a bathroom. The quality of your life is equated with the quality of your home.” Ilagan believes there’s been “…a change in priorities, a shift in what’s important since 9-11. There’s more of a focus on living space. All of society is consumed by living space.” Renovation contractor Keith Burgess says, “We want to be tied to a central core more—more community, more culture, theatre, art. “I really can’t see a direct connection to 9-11, not in our clients. My wife and I just got back from New York, and we saw it there, a desire to protect old buildings, but here we’re still too distant. In California, you see this race to spend more money. It’s a concern for the bottom-line value; they’re not trying to find roots. “Here in Alberta, it’s the first time we’re feeling our wealth. We’re doing more charity work and outreach for the elderly and disabled. More people have more money, and perhaps more wealth.”

“Our work is one part therapy and two parts marriage counseling. Renovation is a big challenge for the homeowners,” says Hastings. Burgess agrees, “I’ve seen what I call addition psychosis. It’s not bad, but we are affecting their sanctuary. Sometimes I think we should employ a marital counselor while we’re working to help pull them through. “In an extended family, there are issues that don’t wait for a renovation to be complete. They no longer have a sanctuary to come home to [during a renovation]. People aren’t necessarily angry at you, but they are glad to see you gone. We’re usually there for long periods of time

and there’s isn’t a big hoorah at the end. He adds, “Good contractors interview the client as much as they interview us. In a busy market, we can afford to. If we think they can’t survive, we’ll turn them down.” Schulz sums up the role of the renovator. “There are three stages to any renovation: one, excitement and enthusiasm… two, `I’ll kill those SOBs’… and three, `Wow, look what we did.’ Our job is to manage that middle part.” ✔

CONSUMER PREFERENCES Location, location, location. The vast majority of renovation projects naturally occur in older, established neighbourhoods with easy access to downtown amenities. Burgess, whose niche market is in Glenora, Grovenor and Crestwood in the westend and Strahcona on the southside, knows his clientele. “Professionals are trading up now that the rates are low. Most are not looking for equity, they’re looking for older trees, proximity to the downtown core, a view of the river valley, connections to the arts. I can’t imagine living in a satellite community.” Even new homes in older neighbourhoods are designed to fit into communities like Riverdale and Crestwood. Burgess figures that, “Three years ago, there was a doubling of infill homes per year, I’d say. There used to be a handful, now there’s about 30. When one of these infill homes goes up, it influences the other home owners around them to renovate and keep up. “People are spending the money now, so many of these neighbourhoods are in a state of dramatic flux: existing homes, next to infill, next to renovated homes.” Clark suggests that there’s a pent up demand for upgrading existing homes. “In the ’80s and ’90s, people were putting it off. Now it has to be done. Interest rates are helping. They can see the value in it… Renovation increases the value, but it’s primarily a lifestyle thing. If you put $100,000 into a house, people know they won’t get it out again tomorrow [if they sell right away]. We’re looking for more togetherness. “We upgraded a home that was built in 1911. The owners were in the Bahamas, but now they’ve moved back to Edmonton. They wanted to keep the character of the house. We gutted the upstairs, made it three decent-sized bedrooms, modernized the bathroom, widened the staircase and made it less steep.” Clark says J-Meg usually renovates at least “one really old house a year. If it’s something like clinker brick, we obviously can’t get that material these days, so we’ll do an addition with vinyl siding and make it appealing as possible. These are the projects that are the most fun and interesting to do.” “We’re working and living in different environments. People are putting down roots. They have hockey, EDMONTONIANS FEBRUARY 2006 Proof_ 2_____PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

MenuMagic

Dan Toews in his home kitchen with Chef John.

with Chef John Berry

Cooking with fire T

hink for a moment what your dream kitchen would look like. You have a chance to put the best appliances, cabinets and island in the kitchen. What would you do? That was the question facing Dan Toews of Kitchen Craft, after he accidentally turned on a burner that had a plastic container on it—the first floor of his home was gutted by fire. “It was a blessing in disguise.” The end result was an incredible, trendy kitchen that incorporates not one but three different counter tops. “One is concrete that is ground down so you can see the aggregates, another is traditional butcher block, and the third is granite for my wife because she likes to bake. It all ties together very nicely.” Dan says to forget the old style of kitchen layouts. Cabinets are being replaced by shelves that are open and guests can pick out their own glasses, plates and so on.

“It’s all very interactive. We’re seeing a lot of diversity in kitchens now, especially a lot of stainless steel for back splashes and appliances.” He also points out that you get great returns when you sell your home. “People can feel what you’ve put into it, and you can get a bigger bang for your buck, especially if the kitchen is the focal point of your home.

Rick Hlady, the team leader of DIY Cabinet Warehouse echoes Dan’s thoughts. “The kitchen is now the primary gathering place. I go into some homes and the living room looks like it’s never been used.” Islands are huge right now—ones that put your guests right in the middle of the action. So too are decorative cabinets that are more ornamental and staggered in height. Rick says, “Kitchen designers today have to be well versed on how it’s going to fit and be a part of the scheme.” Energy efficiency is another key in kitchen renovations for 2006. More and more people are snapping up German-made ovens that take up less space, and are extremely energy efficient. On the other hand, many people are renovating their kitchens into professional work spaces utilizing professional gas ranges and ovens. It all boils down to just how much you like to cook and entertain—and how much you’re willing ot spend. Chef Anna Olsen, host of Sugar and Kitchen Equipped on FoodTV and noted cookbook author, says power is very important. People are seeking ranges that can put out high BTUs for faster cooking. Some people are going full tilt. Chef Anna says some are starting to buy their equipment from restaurant supply stores. Those who can afford it are after quality equipment that will last a lifetime. “I have some friends who just installed a panini press, hooked it up to the electrical wiring and built it into the wall.” Drawer dishwashers, she adds, where you have separate racks for stemware, dishes and pots, with the ability to do a half cycle, are extremely popular. I heard about one couple who purchased six warming ovens and placed them in their bathrooms so they could have warm towels after a bath. Can it get any better? ✔ Check out the Kitchen Craft and DIY Cabinet Warehouse booths at the 2006 Renovation Show at the Agricom.

Contact John at jberry@edmontonians.com

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LIVELY lifestyles

In defence of DIY

wake up in the middle of the night in a cold sweat. The nightmare is always the same. Earth Wind and Fire’s Got to Get You Into My Life is blaring from the radio as I whip over to the hardware store for some twobys and drywall screws. I pass a billboard illustration of a graveyard with a single tombstone inscribed with: DIY is DEAD. Could it be? Those joyful hours spent sating my creative juices are finished? Saving money and cramming weekends with the joys of caulking, sawing and drilling are over? What about TV… will home improvement networks be a thing of the past? I felt my passion slowly dwindling. In a panic, I decided to consult a do-it-yourselfer in the hopes of laying my fears to rest.

Mag Ruffman—licensed contractor, TV host and personality of A Repair to Remember and Anything I Can Do, author of How Hard Can It Be?—will be appearing at the Edmonton Renovation Show on the first weekend in February. I posed the dreaded question to Mag: Is DIY really dead?. “What??? I want names… Who are the people saying DIY is dead? Not only is it alive and flourishing, it has also witnessed a climbing presence of women on the scene.” Mag quickly rattles off impressive stats to prove it: • $4 billion are spent at hardware stores annually; • 38 percent of women prefer tools over lingerie as gifts; • amazon.com sold more power tools on Mother’s Day than Father’s Day last year; • Women make up 52 percent of purchases in hardware stores; and • The housing market is booming, with twice as many single women purchasing homes than single men. “Female homeowners are educating themselves in DIY to avoid being ripped off by contractors and opting to take on simple tasks themselves. They find it very selfgratifying to complete minor renovations while saving money. There are a couple of

areas that I would caution the layman/woman to stay away from—plumbing and electrical. Plumbing isn’t difficult, it’s just plain gross: It stinks, it’s dirty, and it involves the use of open flames if you are soldering pipes. Electrical work can be a shocking experience if one does not know what he or she is doing. I still turn breakers off when I am working with live wires. “My husband and I are organically renovating our 150-year old home… situated on 42 acres, amid flocks of wild yellow finches and 1,183 hand planted trees. I am presently designing a line of ergonomically-friendly hand tools, and continue to appear weekly on Canada AM’s The Morning Fix. “Does that sound like DIY is dead?” Since the interview, I am sleeping better. I threw caution to the wind and tiled the steps leading to the guest room. With the left over tile, I faced the new fireplace in the family room, and built the pony wall for a raised counter. Thanks Mag, I owe you one. I had a sneak peak at some awesome products available at the Edmonton Renovation Show. Here are some you just Got to Get into Your Life.

EARTH

WIND

…and FIRE

Granite Transformations has cleverly created a countertop that fits over your existing one, with the look and feel of real granite. Granite, quartz and glass mosaics, imported from Italy, are combined with polymers to produce a surface that is heat, stain and scratch resistant. The quarterinch thick slabs will flex on curved surfaces with up to a 30” radius. Resurfacing will save up to 30 percent of the cost of conventional stone tops, while saving our landfills from demo debris. A Win-win solution.

In an age of rising energy costs, efficient heating alternatives are welcome. Convectair Intelligent Heaters offer gentle uniform heat with natural convection heating. The heaters draw cold air in from the floor, warm it and re-distribute it through a grill. Built-in programmable thermostats translate into lower energy bills and selected comfort. Why heat the whole house, when you just want to warm the bathroom in the morning? These models boast optional heated towel bars. Mmmmm… toasty towels. Just like a posh hotel… only at home.The heaters are available through Creative Electric.

A fireplace is a fireplace. Right? Wrong. The people at the Wood & Energy Store carry The Crescent line of fireplaces that have been specifically designed with the kitchen in mind. An arched front opening has an optional flip-down warming shelf to keep plates or buns warm. Measuring only 19” deep, these attractive and practical beauties can fit in small spaces— bookcases and pantries—at eye level. ✔ Contact lbodo@edmontonians.com, or visit her website: absolutebodo.com

Catch Linda at the Edmonton Renovation Show in the absolute bodo booth #704 to see her latest projects and some of her favourites from Lively Lifestyles

EDMONTONIANS FEBRUARY 2006

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Company . . . . . . . . . . . . . . . . . . . . . .Booth A- 1 Marketing . . . . . . . . . . . . . . . . . . . .412 AAA Alarms . . . . . . . . . . . . . . . . . . . . . . .6A AAA Boating (Wylie) . . . . . . . . . . . . . . .N10 Absolute Bodo . . . . . . . . . . . . . . . . . . . . .704 Absolute Hardwood Flooring . . . . . . . .9A-B Acclaimed Furnace Cleaning . . . . . . . . .342 Ackard Contractors Active Concepts . . .323 Advantage Orthotics . . . . . . . . . . . . . . . .B10 Aerus Electrolux . . . . . . . . . . . . . . . . . . .334 AFC Tub Liners . . . . . . . . . . . . . . . . . . . .8D After Eight Flooring . . . . . . . . . . . . . . . .533 Alberta Beef Producers . . . . . . . .FoodExpo Alberta Cancer Foundation . . . . . . . . . . .B11 Alberta Diabetes Foundation . . . . . . . . . .723 Alberta Elk Commission . . . . . . .FoodExpo Alberta Golf Association . . . . . .1026 Hall C Alberta Hardwood . . . . . . . . . . . . . . . . . .221 Alberta Wholesale Fireplaces . . . . . . . . .508 All Weather Windows . . . . . . . . . . . . . . .523 Amerispec Inspection Service . . . . . . . . .8A Apollo Sun & Shade . . . . . . . . . . . . . . . .329 Aquanotion . . . . . . . . . . . . . . . . . . . . . . . .1E Aquarian Construction . . . . . . .Reno Gallery Arbor Memorial . . . . . . . . . . . . . . . . . . . .607 Aromas Naturales . . . . . . . . . . . . . . . . . .551 Atco Energy Sense . . . . . . . . . . . . . . . . .306 Avenue Vacuum & Appliances . . . . . . . .633 Award Contractors . . . . . . . . . .Reno Gallery Award Windows . . . . . . . . . . . . . . . . . . .610 Basement Systems . . . . . . . . . . . . . . . . . .8B Bath Fitter . . . . . . . . . . . . . . . . . . . . . . .C2-3 Bathrooms Unlimited . . . . . . . . . . . . . . .309 Batten Industries . . . . . . . . . . . . . .B13/14/15 Beachcomber Hot Tubs . . . . . . . . . .429/532 Bed & Bath International . . . . . . . . . . . . .347 Berkshire International . . . . . . . . . . . . . . .7A Best Home . . . . . . . . . . . . . . . . . . . . . . . .646 Bolt Security . . . . . . . . . . . . . . . . . . . . . .606 Britcan Furnace & Cleaning . . . . . . . . . .326 Build E-Z . . . . . . . . . . . . . . . . . . . . . . . . .209 C.H.B.A – Edmonton Region .Reno Gallery Cameleon Promotions . . . . . . . . . . . . . . .720 Can-Hemp (Family Doctor) . . . . . . . . . .920 Canadian Trade House . . . . . . . . .FoodExpo CanCell Industries . . . . . . . . . . . . . . . . .C7-8 Carries Chocolates . . . . . . . . . . . .FoodExpo Cindercrete Products . . . . . . . . . . . . . . . . .7C Citadel Improvements . . . . . . . . . . . . . . .603 City of Edmonton (Waste Management) .B7 Classic Window Fashions . . . . . . . . .336/338 Clays Concrete Counter tops . . . . . . . . . .227 College Canada Painting Co. . . . . . . . . . .550 Comfortable Home Systems . . . . . . . . . . .5E Comfree . . . . . . . . . . . . . . . . . . . . . . . . . . .B9 Concordia University . . . . . . . . . . . . . . . .657 Condon Barr Food Equipment . . .FoodExpo Convectair . . . . . . . . . . . . . . . . . . . . . . . .547 Costco . . . . . . . . . . . . . . . . . . . . . .FoodExpo Culligan Water . . . . . . . . . . . . . . . . . . . . .516 Cutco Cutlery . . . . . . . . . . . . . . . . . . . . . .602 DDG Prospect . . . . . . . . . . . . . . . . . . . . . .9C D.I.Y. Cabinet Warehouse . . . . . . . . . . . . .4A Daksha’s Gourmet Spices . . . . . . .FoodExpo Denco’s New Frontier . . . . . . . . . . . . . . .512 Der Coffee & Tea . . . . . . . . . . . . .FoodExpo Destination Conservation . . . . . . . . . . . .C13 Dip Sea Chicks . . . . . . . . . . . . . . .FoodExpo Direct Buy . . . . . . . . . . . . . . . . . . . . .343/45 Direct Energy Essential Services . . . . . . .627 Earthworm Landscape Design . . . . . . . .623 Easy Rock Products/ Cityscape . . . . . . .546 Eco Water Edmonton . . . . . . . . . . . . . . . .302 Ecowater North . . . . . . . . . . . . . . . . . . . .419 Edgewood Matting . . . . . . . . . . . . . . . . .417 Edmonton Bath Products . . . . . . . . . . . . .212 Edmonton Spinal Awareness Society . . .702 Edmonton Wireless . . . . . . . . . . . . . . . . . .7D Edward Michell Fine Art . . . . . . . . . . . . .647 Elkhorn Ranch & Spa . . . . . . . . . . . . . . . .5B Euro Innovations . . . . . . . . . . . . . . .333/432 Fifth Avenue Collection . . . . . . . . . . . . . .N7 Fireplace Gallery . . . . . . . . . . . . . . . . . . .928 Freedom 55 Financial . . . . . . . . . . . . . . .827 Fruitelicious . . . . . . . . . . . . . . . . . .FoodExpo 8

Full House Renovations . . . . . .Reno Gallery G & M Meats . . . . . . . . . . . . . . . . . . . . .928 G.A. Effective . . . . . . . . . . . . . . . . . . . . .213 Gails Gallery & Supply . . . . . . . . . . . . . .446 Gazata Ltd . . . . . . . . . . . . . . . . . . .FoodExpo GEM Inc. . . . . . . . . . . . . . . . . . . . . .608/509 GR Distributors . . . . . . . . . . . . . . . . . . . . .C4 Granite Direct Inc. . . . . . . . . . . . . . . . . . .408 Granite Transformations . . . . . . . . . . . . . .4C Granite Worx . . . . . . . . . . . . . . . . . . . . . .447 Great Canadian Giveaways . . . . . . . . . . .717 Gutter Helmet West . . . . . . . . . . . . . . . . .927 Handyman Connection . . . . . . . . . . . . . .526 Hardwood Etc . . . . . . . . . . . . . . . . . . . . .746 Home Equity Investments Rewards . . . .750 Home Theatre Solutions . . . . . . . .Sales Ring Homestyle Beverages . . . . . . . . . .FoodExpo Homeworks Service . . . . . . . . . . . . . . .6C/D House of Ladders . . . . . . . . . . . . . . . . . . .N8 Hoyme Phantom Screens . . . . . . . . . . . .404 Ideal Sundecks . . . . . . . . . . . . . . . . . . . . .635 Improvisions Inc. . . . . . . . . . . . . . . . . . . .413 Infinity Geothermal . . . . . . . . . . . . . . . . .420 Innovations Plus . . . . . . . . . . . .Reno Gallery Instadeck . . . . . . . . . . . . . . . . . . . . . . . . .223 Integrated Financial . . . . . . . . . . . . . . . . .844 Interlock Industries . . . . . . . . . . . . . . . . . .4E

Booth #704

Investors Group . . . . . . . . . . . . . . . . . . . .312 James Hardie Building Products . . . . . . .601 Jaywest Country Homes . . . . . . . . . . . . .439 J-Meg Homes & Renos . . . . . .Reno Gallery K & F Rollshutters . . . . . . . . . . . . . . . . . .426 Kastelen Sausage . . . . . . . . . . . . .FoodExpo Kennedy’s Flooring . . . . . . . . . . . . . . . . .450 Kitchen Craft Cabinets . . . . . . . . . . . . . .620 Kitchen Craft Int. . . . . . . . . . . . . . . . . . . .820 Kozy Shack . . . . . . . . . . . . . . . . . .FoodExpo Ladders Unlimited Canada . . . . . . . . . . .621 Leading Chiropractic & Wellness . . . . .1030 Lifestyle Bath & Shower (Div. Hook) . .616 Lindal Cedar Homes . . . . . . . . . . . . . . . .427 Lizwoerks Sales . . . . . . . . . . . . . . . . . . . .416 Mainstream Screens . . . . . . . . . . . . . . . . .4B McKinley Heating . . . . . . . . . . . . . . . . . .830 Miles Industries . . . . . . . . . . . . . . . . . . . .733 Mr. Exterior . . . . . . . . . . . . . . . . . . . . . . . .C8 Murango Gallery . . . . . . . . . . . . . . .349-351 Nelson Lumber Co. . . . . . . . . . . . . . . . . .833 Niagra Acrylic Industries . . . . . . . . .609/708 Northern Alberta Orthotics . . . . . . . . . . .316 Ocean Sales . . . . . . . . . . . .c16,b1,b6,728,20 Ocean Sales ent . . . . . . . . . . . . . . . . . . . .105 Oliver Chiropractic . . . . . . . . . . . . . . . . .538 Ontra Sales . . . . . . . . . . . . . . . . . . . . . . .N11 Oreck Vacuums . . . . . . . . . . . . . . . . . . . .929 Orange TKO Industries . . . . . . . . . . . . . .706 Orthotic Works (AOA) . . . . . . . . . . . . . .N6a Owens Corning . . . . . . . . . . . . . . . . . . . .335 P.C. Renovations . . . . . . . . . . .Reno Gallery P.F. Manufacturing . . . . . . . . . . . . . . . . . .653

Paradigm Marketing . . . . . . . . . . . . . . . .823 Par-T-Perfect . . . . . . . . . . . . . . . . . . . .Hall C Pella Windows & Doors . . . . . . . . . .1A, 2B Performance Living . . . . . . . . . . . . . . . . . .2E Pizazz International Products . . . . . . . . . . . . . . .339,440/828/727 Polar Spas . . . . . . . . . . . . . . . . . . . . .751/856 Popcorn Plus . . . . . . . . . . . . . . . . . . .204/304 Prairie Concession . . . . . . . . . . . . . . . . . . .C1 Precise Pet Foods . . . . . . . . . . . . . . . . . . .C5 Primerica Financial . . . . . . . . . . . . . . . . .611 Provincial Heating & Air Conditioning . .442 QualiGlass Windows & Doors . . . . . . . .305 Rada Classic Cutlery . . . . . . . . . . . . . . . . .B8 Rainbow Systems . . . . . . . . . . . . . . . . . . .8C Ray O Max Windows . . . . . . . . . . . .247-350 Redfern Ent. . . . . . . . . . . . .B3-5,317,n12-13 Refrigerative Supply . . . . . . . . . . . . . . . .243 Regal Ridge . . . . . . . . . . . . . . . . . . . . . . .245 Renovations of Excellence . . . . . . . . . . .C12 Rob’s Albertan . . . . . . . . . . . . . . . . . . . . .308 Roll Out Kitchen Drawers . . . . . . . . . . . .115

Royal LePage East Kootenay . . . . . . . . .303 Royal Treats . . . . . . . . . . . . . . . . . . . . . . .5A RPM Solutions . . . . . . . . . . . . . . . . . . . . .6B Saskatoon Berry Products . . . . . . .FoodExpo Save A Deck . . . . . . . . . . . . . . . . . . . . . . .C6 Sears Home Central . . . . . . . . . . . . . . .HallC Sergio Lub . . . . . . . . . . . . . . . . . . . . . . . .650 SFA Saniflo Inc . . . . . . . . . . . . . . . . . . . .747 Steve Oakie Concessions . . . . . . . . . . . . .507 Sunray Hot Tubs & Spas . . . . . . . . . . . . .120 Sunrise Windows & Door Depot . . .443/445 Sutton Group . . . . . . . . . . . . . . . . . . . . . .313 The Art of Hardware . . . . . . . . . . . . . . . .421 The Energy Doctor . . . . . . . . . . . . . . . . .235 The Nutty Diva . . . . . . . . . . . . . . .FoodExpo The Only Mortgage Company . . . . . . . .729 The Renovation Corp . . . . . . . .Reno Gallery The Trophy Cup . . . . . . . . . . . . . . . . . . . .409 The Tub Guy . . . . . . . . . . . . . . . . . . . . . . .7B The Vacuum Source . . . . . . . . . . . . .542/544 The Water Clinic . . . . . . . . . . . . . . . . . . .217 Thirst for Paradise . . . . . . . . . . . . .FoodExpo EDMONTONIANS FEBRUARY 2006

Proof_ ____PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

Titanium Exclusive Cookware . . . . . . . .836 Treasure Chests Distributors . . . . . . .C10/11 Trioka Foods . . . . . . . . . . . . . . . . .FoodExpo Tupperware . . . . . . . . . . . . . . . . . . . . . . .B12 Two Car Garage Building . . . . . . . . . . . . .C9 Ukranian Foods . . . . . . . . . . . . . . .FoodExpo Ultimate Exterior Renovation . . . . . .229/332 Vacu Flo . . . . . . . . . . . . . . . . . . . . . . . . . .B2 Vacuums R Us . . . . . . . . . . . . . . . . . . . . .536

Verdatech Inc. . . . . . . . . . . . . . . . . . . . . .517 Vipco Industries . . . . . . . . . . . . . . . . . . . .444 Vita Mix Corporation . . . . . . . . . . . .617/716 Viva Renovations . . . . . . . . . . . . . . . . . . .752 Water Canada . . . . . . . . . . . . . . . . . . . . . .9D Water Magic . . . . . . . . . . . . . . . . . . . . . .712 Wood & Energy Store . . . . . . . . . . .107/208 Wooden Reflection . . . . . . . . . . . . . . . . .451 World Stone Inc. . . . . . . . . . . . . . . . . . . .423

EDMONTONIANS FEBRUARY 2006

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Ellis Brothers Photography

The Showman Edmonton “...is Las vegas for this kind of thing”

information, make the right choice,” he says. People who attend the renovation show are looking for new ideas and new products… maybe something they haven’t seen before that will help them fulfill their The team: renovation vision. To Young, it is no surprise that 65 per Carol Harker; cent of his target market is female. show manager; “That is because women are more proactive about the Rick Young, and condition of their environment. They spend more time in Laurina Milne, it. Even if they are working, they spend more time in it. production manager And they have a vision of what they want.” So guys, be warned, even though they may be looking at paint samples: “In the back of their minds, they’ve got something much bigger in mind and guys should never be t’s not a magic show, but timing is essential,” fooled by that,” muses Young. says Rick Young of Young Marketing Services Ideas for renovations, large and small, are probably Inc., producers of consumer and industry trade coming from one of the many home renovation shows on shows. TV that have surged in popularity in recent years. He is talking about one of the most fundamental aspects Young likens the popularity of his home shows to this of his own trade: bringing buyers and sellers together when trend in television programming. it will be most beneficial for everybody. “It’s absolutely huge. It’s probably the number one It appears now is the time and here is the place. We’re catalyst for these kinds of things that allow people to think talking about the 2006 renovation show. ‘I want that, I like that’. Other than that, their resources Last year, Albertans spent a whopping $3.8 billion on were to go to a store or go to a magazine. The number of home renovations compared to $4.2 billion on new builds. home improvement shows and interior design shows that Obviously, the industry is alive and well and worth giving are on is staggering. The only limit is your imagination and the show business treatment. your revenue and your ability to pay for it. But real estate “It’s a really fun time to be doing this,” Young reflects. has proven to be a good investment.” He’s been involved in developing, selling and preparing the Bringing in TV personalities gives the renovation show Edmonton Home Show for the Edmonton Region Home some extra glitz and glamour and gets people in the door. Builders Association for 25 years. The renovation show has They are a trigger point for interest, but they are also there been going for 13 years. During this time, he has seen some to give people something to take away with them. booms and busts in the local economy. “They are the entertainment factor; we’re in show The billions Albertans dropped last year include business. They also provide hard information… it can’t be everything from changing a paint colour to fixing a door to frivolous or fluffy… it has to be serious. There has to be a a full-blown renovation. Everything a person would need to transfer of information that people are looking for,” stresses know about any aspect of renovation will be on show Young. February 3 through 5 when approximately 250 exhibitors “There are people who are crafty and want to do those and a handful of do-it-yourself celebrities will fill the things. They have a tool belt and a garage or basement that Northlands Agricom with renovation buzz. they work in. They can do these things, they like to do “It’s a contractor style show that consumers get access to. these things and they are good at them.” In addition to TV That makes it a unique benefit,” says Young. “What we’re personalities John Sillaots and Mag Ruffman, who will be interested in is the people who didn’t come last year, who giving stage presentations throughout the weekend, various now have a need and can find what they need.” exhibitors inspire creativity. As well, Edmontonians’ Linda Some 18,000 people are expected through the show over Bodo will be showcasing DIY projects from the best of her the three days and Young knows from experience that they Absolute Bodo columns in the Lively Lifestyles section of are in for some renovation education. this magazine. “It’s a four-hour education program. You should be However, some people may feel a certain project is out equipped and ready to enroll yourself in it, understand it, of their scope or maybe they just don’t have the time to ask the questions and take away from it information that execute the project. Installing tiles or hardwood floors or makes you more informed about your decision.” even framing a basement are examples of the types of That’s what it comes down to with the show: projects people may want to tackle themselves, but then information. The show gives you enough snapshots of the find it is a little beyond their capabilities. renovation of your dreams, and a better idea of affordability Young estimates that there is enough disposable income and do-ability. in this market that people can afford to pay to get jobs “It’s a measure twice, cut once philosophy. Get the right done. And they are.

By Murray Donaldson

“

“I mean, this is Las Vegas for this kind of thing, people have the money.” That mindset is what has made the renovation show successful. “Edmontonians are shoppers. They get competitive quotes, they’re pretty informed and they’re diligent. So, when they get involved in renovations of any consequence, I think they get quotes from various companies. The show is somewhat of a consumer watchdog because we want people to understand it’s a buyer beware.” With a show floor full of sales people trying to sell you stuff, it is up to the consumer to decide what product they need and want. Young stresses that diligence on the part of the home owner is required for the successful completion of any renovation. “This is a great time because it’s a very buoyant economy, and renovation is such a huge business.” Currently, with his staff of three, Young is comfortable producing nine shows a year in Alberta and BC. “It’s about how much you can do and do well,” he says. When he came to Edmonton from Toronto in 1979, he was encouraged by the entrepreneurial spirit of the city. Edmonton had more entrepreneurs per capita than any other city in Canada. He himself is a prime example of that spirit. Although he recalls being “penniless and buck naked” in Alberta, he has always been happy about moving here. Young didn’t start the home show, but when he came to Edmonton he joined the ERHBA and became involved in the committee that developed the show. Within two years, he was managing the show. He started with a management contract for the Edmonton Home Show in 1983, the association’s fall show. He took over the Calgary HomeExpo in ’88. These shows have been his mainstay—his flagships. Most of the other seven shows per year—with the exception of the Big Valley Jamboree—are spin offs from those. Taking advantage of our buoyant economy, Young is launching the Log & Cottage Show at the Mayfield Trade Centre in April. With more disposable income, people are looking at country and lakeside retreats—a place to get away from the pressures of the city. He expects to attract exhibitors and attendees from the three western provinces. Although a career in the trade show business wasn’t something he was planning on, he has found success and happiness in producing them. “I found it fascinating and I still do. That’s the magic of finding something you like to do and getting paid for it.” ✔ For more information on shows produced by Rick Young go to www.showswork.com; and on the Edmonton Region Home Builders Association go to www.erhba.com

EDMONTONIANS FEBRUARY 2006

Proof__ _____PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

UNDERSTANDING HEAVY OIL

AGD, CSS, PCSD, THAI, VAPEX… as a resident of oil-rich and

technology-savvy Alberta, these are acronyms you may have heard. But what’s the difference between these technologies used to extract deep-lying heavy oil? In what situation is each used, and what sort of initial capital investment is required for each? These are the questions my company has heard from representatives of Mexico’s national oil company PEMEX about its own dormant wells, so I understand first-hand how important Alberta Economic Development’s recently announced Heavy Oil Alberta Project (HOAP) will be. Many countries, other than Canada, have heavy deposits untapped only because of a lack of technology. With the rising price of oil, visiting dignitaries are clamouring for more information on how to extract this oil, and on the companies that make and operate the equipment necessary to the process.

STEP ONE The strategy of the HOAP initiative introduced at the December breakfast meeting of the LeducNisku Economic Development Authority is twopronged: on the one hand, to collaborate on strategic planning and policy development while putting together information to present to the world on heavy oil. On the other, to promote investment and increase Alberta’s value-added products in this sector and the export of these value added goods. According to Tim Hazlett, trade director, and Shannon Stubbs, trade development officer, who are spearheading AED’s initiative, they are still in the phase of seeking information on the technologies, services and products from the companies involved. Then they’ll put together marketing materials and databases and use them to begin regional outreach programs.

WHY START NOW?

York. Many viewers wondered when the oil development was targeted to start production…yes, we’re talking about the same Fort McMurray mines that have been operating 24 hours a days, 365 days a year for almost four decades. Mihailovich became intrigued with the subject after reading Facing the End of Oil published in the June 2004 issue of National Geographic Magazine. The price of oil post-Hurricane Katrina shot to $70 and he received the nod to send in a six-person crew to Fort McMurray for the television assignment. “Nothing can prepare you for seeing those 797s,” he said of the world’s biggest dump trucks. “The challenges we faced came from trying to convince people that they could trust us,” said Mihailovich. “And it’s quite amazing how busy your Premier’s schedule was for three months straight,” observed the newsman who never did interview Ralph Klein for the show aired the day before Canada’s national election. “You can probably expect to receive a lot of resumes for work in Alberta.” And according to Helen Daymond of the Regional Municipality of Wood Buffalo Tourism Association, he’s right. On the first business day after the 60 Minutes story aired, her office was swamped with 50 phone calls and 135 e-mails from all over the United States. Most of these were Americans looking for jobs, impressed with Fort McMurray salaries, or looking to invest. Daymond suspects they called her office as a starting point because of how well-seated it is on Internet search engines. The Wood Buffalo Municipality website, which normally averages 4,000 hits per month, received 3,067 hits in just 24 hours after the show.

With Alberta about to take a lead role in world energy production, we need to focus on the big picture. We don’t want to just sell the bitumen. Instead, Bleiken’s vision is tho produce it, upgrade it, and convert it into downstream valueadded products right Allan Bleiken here in Alberta— products we would then distribute all over the world. For every dollar’s worth of bitumen, we could export instead $1,000 worth of value-added end products. This way Alberta reaps all the benefits of our natural resources right here with added industry, jobs and taxes, instead of sending the raw products elsewhere for another region to benefit. But to make this transition requires a lightningspeed quantum leap in transportation and distribution infrastructure. “The Netherlands is the transportation and distribution centre for Europe,” Bleiken explains. “It is Europe’s link to Asia and the Middle East. Over 50 percent of all international products shipped to and from the EU is shipped through this small country.” Until a few years ago, Rotterdam was also the biggest port in the world (now overshadowed only by a couple of Asian ports). Bleiken is currently completing an economicbased study on behalf of the Dutch government on the opportunities for business between the two regions, with the goal of fitting Dutch businesses into Alberta’s growth strategy. Although not Dutch himself, this former head of Edmonton Economic Development and VP at the University of Alberta, accepted the position of honorary consul because of his conviction that Holland offers one of the best solutions for Alberta’s future development.

DMONT E O R N E T

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Why haven’t the companies in Alberta involved in heavy oil already begun this sort of international outreach themselves? When Hazlett himself asked this question he received answers ranging from “Tim, have you not seen we’re busy here?” to a lack of familiarity with international markets. But the companies also indicated they wanted to get over these initial hurdles and start more international expansion in the next three to five years—so “we should be taking a peek now” to get ready. Since conventional oil will no longer meet global demand in the next few years, Hazlett argues that the time to begin is now. He stresses that in 2004 the price of heavy oil production at $40 (US) per barrel came to match the price of oil, and that now production costs have dropped as low as $12 per barrel on some projects, slightly higher on others. In short, the technology is now cost effective. In the short term, plans for regional outreach include bringing the HOAP information to Houston’s May 2006 Offshore Technology Conference… to Calgary’s June Global Petroleum Show 2006… to Venezuela’s June Latin American Petroleum Show XVII… and to Beijing’s 1st World Heavy Oil Conference & Exhibition, of which AED is co-sponsor.

DIGGING UP DIRT ON 60 MINUTES Did you happen to catch the 60 Minutes story with Bob Simon on Alberta’s oil sands? “The oilmen up there aren’t digging holes in the sand and hoping for a spout,” said the correspondent. “They’re digging up dirt—dirt that is saturated with oil. They’re called oil sands, and if you’ve never heard of them then you’re in for a big surprise because the reserves are so vast in the province of Alberta that they will help solve America’s energy needs for the next century.” “You’d be amazed at how little people (in America) know about the oil sands,” Bob Simon said 60 Minutes producer Draggan Mihailovich on the telephone from New

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If you are a wine connoisseur, you are no doubt familiar with the port wines exclusive to Portugal. One national favourite is the country’s distinctive Vinho Verde or Green Wine. Produced only in certain regions of Portugal, this light, fresh wine is known as “green” because the grapes are picked early and it is drunk young. Although it comes also in red, the colour of the white wine can vary from light yellow to greenish. Portuguese Honorary Consul Aurelio Marcelino do Carmo Fernandes hosted a wine tasting for winemaker, Esporao, last year at Edmonton’s Spago Restaurant, and representatives from Caves Dom Teodosio wine producers came here for a fundraising dinner for NAIT’s culinary team. An increased number of visits from vintners is expected this year, with the consulate hosting a wine tasting for the premier Portuguese company, J.M. Fonseca, at the Shaw Conference Centre in March. J.M. Fonseca will present port wine and Muscatel (another variety for which Portugal is famous), among other varieties. One of the other visitors scheduled for 2006 is a company called Avelade specializing in Green Wine… precise date to be confirmed. Cork is also a popular export, not only for bottle stoppers, but also for such products as flooring, tiles and insulation. Portugal is the leading world producer of cork, having recently developed a special laser technology to assure there are no impurities within the cork that could cause wine spoilage. In the past five years, Alberta has received an annual average of $24 million (Cdn) in imports from Portugal and exported an average of $2.5 million in agricultural products, building materials and telecommunications equipment. ✔

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GREEN WINE, PORT AND MUSCATEL

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Amazing what effects a 15-minute broadcast througout the States could have to possibly help alleviate some of the labour shortage stress. But Daymond says she was a little disappointed with the 60 Minutes segment: “They showcased many of the economic advantages of Fort McMurray, but they didn’t highlight what a nice community this is to live in as well. We want people to come to work here, but also to bring their families, to stay here.”

GOING DUTCH This emphasis on Alberta as an emerging world energy powerhouse and the need for us to refocus our strategic planning is also a main concern of Allan Bleiken, Honorary Consul for the Netherlands. As expressed in his feature article in Edmontonians’ January edition, Bleiken argues that Alberta will need to strengthen its international ties as its importance increases due to the province having the world’s second-largest supply of oil and the only significant future source located in a “secure” country. In addition, he says that “Alberta has a shortfall of infrastructure systems and services that is causing problems in the oil sands, and the problem will only increase with future development.” He sees the Netherlands as offering some of the solutions.

Jessica Wegmann-Sanchez, Ph.D., is Director of Corporate Communications for BIDMEXICO International Inc., an Edmontonbased company specializing in foreign business development in Mexico. E-mail: jsanchez@edmontonians.com

EDMONTONIANS FEBRUARY 2006 Proof_

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money MAKING

By Ron Hiebert

here is a story that has floated around Wall Street for years about an immigrant who arrived in New York from the Old Country with a rather large amount of cash to invest. He phoned a brokerage firm and asked to speak to an investment advisor. When the broker found out how wealthy the man was, he immediately dispatched the corporate limo to pick him up. After meeting at a fancy restaurant, the chauffeur took them on a tour of the city. As they went by the harbour, the finance guy thought he would wow his new client by showing him some of the yachts owned by partners of the firm. After an hour of walking around looking at dozens of floating palaces, the newbie became very quiet. The broker interpreting this as awe, looked at him and said, “Pretty amazing, huh?” At this, the man shook his head and replied, “Not really. What would impress me more is a harbour full of boats owned by your clients. Then I’d know that you were making money for them and not just yourselves.” On this issue, investors have come full circle. Five years ago, they turned a blind eye to senior executives pillaging corporate treasuries with huge compensation packages that, in many cases, were neither earned nor deserved. As long as stock prices were going up, people paid no attention to the core drivers of shareholder wealth; rising earnings, dividends and asset value. Those days are gone. Most major global markets are still trading below their 1999 peaks. Many mutual funds have unit prices below where they were in 1998. Investors have seen everyone else get rich but them, and are starting to demand that public companies create wealth for the true owners of the business and not just management. When grading companies on their ability to create wealth for shareholders, what should you be looking for? I believe that companies that form the core part of any investor’s holdings should have As on their corporate report cards in the following areas:

Creating shareholder wealth Over the past 100 years, greater than 60 percent of the total return of the stock market has come from dividends, not capital gains, as most people would guess. Companies that have a history of regularly cranking out higher dividends dominate the list of shares that achieve the highest long-term capital gains. A company that can frequently increase its dividend is normally increasing its profits at the same rate or higher. A rising dividend is one of the best tools a stock picker can use to find good quality growth companies.

DISTRIBUTING PROFITS TO SHAREHOLDERS Income trusts are best of breed in this category. As a result, they have become a $200-billion asset class in Canada during the past decade. Investors love the structure because a huge portion of the profits ends up being distributed to the investor instead of remaining trapped in the company’s corporate treasury where they may or may not be put to efficient use. Normally, a corporation pays tax on the dividends to be paid out, and then the investor pays tax on them again after receiving them. This effectively taxes the same money twice. In a trust structure, the business pays no tax. The investor, upon receiving the cash payout, is responsible for the tax. This removes a complete layer of taxation and leaves a larger chunk of profits that can be paid out… further enriching the shareholders who are the true owners of the business. Recently, many trusts have come to market with cash distributions that are unsustainably high. This is either due to the cyclical nature of the company’s underlying business, or the fact that they are paying out more than they are making to attract unsuspecting investors to their high yields. These are red flag securities. Investors need to be very careful that they aren’t suckered into buying these units. When their distributions inevitably get cut, the share price will get crushed.

INCREASING PAYOUTS

SHARE BUY BACKS

The most linear way for companies to reward shareholders is to increase the dividend they pay out to them. Generally, companies will only increase dividends if they feel that their longer-term earnings outlook can sustain the higher payout. The last thing management wants to do is increase the dividend and then, at a future date, have to turn around and cut it again. Markets punish companies that do this extremely harshly. It is not uncommon to see stock valuations chopped in half when a dividend is reduced.

One of the preferred ways of returning money to shareholders is through stock buy-backs. When a company purchases its own shares on the open market and then cancels them, simple math works in favour of the remaining shareholders. Fewer shares mean more earnings, dividends and assets per share. Since these three metrics are the main determinants of share price, the further north they go, the higher the stock is likely to trade. Stock buy-backs are also very tax efficient. Fewer shares

without borders BUSINESS

By Daniel Mothersill

own-rounds” have become a critical challenge for angel investors. These are the declining valuations that often accompany the entry of new investors into subsequent financing rounds. In some cases, down-rounds are substantial enough to severely diminish or eliminate entirely the equity stake held by angels and other early investors. Angels are often quick to criticize venture capital investors (VCs) for down-rounds. However, angels who are careful about keeping their eye on the ball are much less likely to suffer heavily in down-rounds. VCs and angels may exhibit differences in approach and may be driven by different prerequisites. Nonetheless, the two have much in common. With better attention to detail and a better understanding of the VC process, angels can make earlystage investing a more congenial and rewarding experience. How does the prudent angel avoid getting burned in down-rounds? The primary rule of an angel investment—as with any investment—is to plan for eventual exit. Angel investors need to consider their exit strategy from the outset, and continue to do so through the entire investment process to payout. Only the naïve will expect later-stage investors to look after their interests. The prudent angel knows and understands his competitors and his allies. The earliest investors frequently include the company’s founders, the management team, friends and family, and angel investors. Some venture capitalists may enter at this early stage, though this is unusual. It is often a mixed crowd that supports an early-stage venture, but what these investors share is a powerful interest in growing the company. These people are investing in the future, based on what they know about the talents of the management team and its ideas and products. In contrast, later investors generally have a better sense of the business’ prospects, and are investing on the basis of visible results rather than personal knowledge, instinct or 12

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and higher prices for those shares inevitably lead to bigger capital gains when the shares are eventually sold. In Alberta, those with the highest marginal tax rates pay 19 percent on capital gains vs. 24 percent on dividends, and 39 percent on interest or earned income. Currently, capital gains are the low-tax “king of the hill” and the best way to receive investment income. This could change if the Liberal’s tax initiatives survive the new government. If they do, and the province goes along with it, dividends could become the type of income that attracts the lowest tax. Tax savings also comes from deferral. This strategy involves postponing the taking of profits until a future date. Since no taxes are paid until shares are sold, an investor can often hold a conservative, steady-growth company for decades without incurring any tax. Plus, the longer the shares are held, the more time an investor has to compound pre-tax profits and thus pre-tax dollars. When evaluating companies that announce a share buyback, it is important to make sure that management walks the walk. Companies often proclaim their intention to buy back stock and then never follow through. They get all the accolades of being shareholder friendly with none of the cost. Very seldom does the media every back-check to make sure that these corporations followed through on their buy-back program. When analyzing the impact of a stock repurchase program, investors also need to make sure that the desired effect isn’t being negated by the issuance of shares, or options on these shares, to management.

INVESTING IN INTERNAL GROWTH If a company doesn’t use its profits to buy back shares or pay cash distributions to shareholders, the only other way it can increase shareholder wealth is to plow money back into growing its own business or using its excess cash to acquire other businesses. The key is that these internal investments need to increase earnings per share. If they aren’t able to use their profits to grow the company, say goodbye to the stock. Reinvest the proceeds only in companies that have a demonstrable track record of successfully increasing shareholder wealth. ✔ Ron Hiebert, a director at ScotiaMcLeod, teaches investment classes at Grant MacEwan College. The author of Wealth Building can be heard weekdays at 7:34 am, on CFCW radio (790 AM). Contact him at 780.497.3215 or rhiebert@edmontonians.com

Pointers for the prudent angel experience. These later investors, who are almost exclusively venture capitalists, are interested in making deals that will bring a good return within a specific time frame. While some VCs look at the bigger picture and are comfortable with long-term investments, many prefer to earn a healthy return with a quick turnaround. Liquidity is a key consideration, as venture capital funds must generate a steady return for their investors. This need for relatively quick returns on investment often push VCs to sell an equity position sooner rather than later. In doing so, they may leave early investors and managers with nothing but bitter experience. Naturally, this is a key source of tension between angels and VCs. However, since this is a well-known element of earlystage investing, it is sensible to plan for the eventual entry of secondary investors. The prudent angel will learn as much as possible about the role and motivations of VCs, and will also attend closely to the start-up’s stage of growth and need for new capital injections. Entrepreneurs are enthusiasts by nature and will occasionally woo investors with grandiose predictions of how much revenue they can generate over a short period of time. It has not been unheard of for start-ups to boast expected revenues of $5 million or $10 million or more. And yet, a simple review of available statistics quickly reveals how inflated such projections can be. A recent survey ranking the top 100 independent software companies in Canada noted the following: • Only 63 of the 100 had revenues of over $10 million a year; • The companies had, on average, been in business for 15 years; and • The 100th ranked company on the list had revenues of only $2.8 million. These figures illustrate how risky it is to place one’s trust in an entrepreneur’s earliest projections. As early-stage investors, angels often get swept up in management’s

enthusiasm. Instead, they need to put their financing on a more cautious footing and ask themselves: “If these sunny projections don’t materialize, how am I going to protect myself when the company goes back to the market for more money?” The prudent angel will ask for best and worst-case projections at the outset and assiduously track results against them. Angels need to know when the company’s course deviates from expectations and, when it does, to be prepared to take the necessary steps. These may include a further personal investment, joining the board, helping with marketing, finding a purchaser for the investment, writingoff the investment, finding additional angel investors, or providing stronger incentives for management to deliver. In truth, new businesses rarely begin generating revenue momentum—or VC interest—until the third or fourth year of operation. This may be too long for many angel investors to wait, as the risk is simply too high. Consequently, there is often a gap between the time when angel investors should or must get out and venture capitalists are ready to come in. The result can be a stalemate within the requisite time frame—companies because they don’t like the terms of investment… angels because they don’t want to risk more money. Ideally, the prudent angel identifies the need for more money early on, and works with the investee to pinpoint and attract a venture player whose terms are mutually agreeable. Unfortunately, the reality in today’s environment is often rather different and angel investors must be prepared for it. ✔ Dan Mothersill is chairman and CEO of the Ciris Group of Companies. The Ciris Group is an integrated full-service communications agency—a one-stop shop whose clients range from emerging enterprises to Fortune 500 corporations. E-mail dmothersill@edmontonians.com EDMONTONIANS FEBRUARY 2006

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INTEL Biz with Cheryl Croucher, Bruce Hogle, Greg Michetti and David Norwood

Science&Tech There’s nothing like looking up from the computer keyboard and seeing two faces pressed against the glass panel in your office door. In this instance, those two faces belonged to Jason Darrah and Jeremy Fritsche. Jason was touring Jeremy around

Jeremy Fritsche the RTF building and they stopped to say hello. Jason is TEC Edmonton’s communications manager and Jeremy does similar duties for Alberta Ingenuity. As we chatted, I very quickly discerned Jeremy was on a mission. Alberta Ingenuity is keen to greatly expand its industrial associateship program. And what better place to start evangelizing this fact than the Research Transition Facility at the University of Alberta. The industrial associateship initiative is a great little program. It teams up recent Master’s and PhD graduates with small to medium-sized companies to conduct research. Says Jeremy, “This program is helpful to companies that want to kickstart their R&D programs. Perhaps they’re aware of someone at the university whose research can benefit their company. The associateship enables them to bring a qualified researcher on board, and it supports the salary of the researcher for up to two years.” At the present time, Alberta Ingenuity has 51 active awards at 40 companies across the province, and it wants to boost that number to 80 awards per year. “We know from the companies we’re already involved with that they feel we’ve been a real benefit to them,

Media Minute with Bruce Hogle CanWest Global Communications VP David Asper bluntly states that “public faith in Canada’s judicial system is being threatened by shoddy columns and news reporting.” Speaking at a University of Western Ontario symposium a few months ago on the media and courts, he was joined by former Ontario Superior Court Chief Justice Patrick LeSage, who added that he found it “objectionable” when newspaper columnists mix facts and opinion in columns that run during trials.

and their R&D programs wouldn’t be where they are today without us. As well, it helps recent graduates get experience in industry,” says Jeremy. Since 2002 when the program started, I’ve had a chance to interview on Innovation Alberta a number of researchers working in industrial associateships—most recently Dr. Jeff Battigelli at Paragon Soil and Environmental in Edmonton’s westend. Jeff is a soil ecologist studying arthropods or little mites that live in the soil. His interest is the differences between arthropod communities in natural forests and land that is reclaimed after oil sands mining. Because these mites influence chemical and physical changes in the soil, they may be useful as indicators of soil quality and health in reclamation projects. Right next door to me, start-up company Scanimetrics is using industrial associateships to advance its chip testing technology. Chenomx has Dr. Kathryn Rankin working on the development of a new diagnostic tool. Micralyne has benefited from the research of its Alberta Ingenuity partnership to further develop a spatial light valve, a microelectronic technology that switches lasers from UV to far infrared wavelengths. Obviously, from agriculture to GIS, there’s no limit to the potential areas of research where Alberta Ingenuity’s industrial associateship scientists can be of help. Another good thing about the program is its quick turnaround. Six competitions are held each year, with the next deadline being April 1st. The results are announced in a timely fashion, within six weeks after the application deadline. And there’s an optional pre-application process to guide potential candidates and companies. Here you would submit a one page description of the candidate, company and research project. Alberta Ingenuity will then offer advice on eligibility. According to Jeremy, “This is helpful especially for companies applying for the first time. It gives them an edge in the competition and let’s them know what we’re looking for.” For more information on Alberta Ingenuity’s industrial associateship program, check out the website at www.albertaingenuity.ca/ia Edmonton move to the historic Hudson’s Bay building downtown is finalized, the planning process is going full tilt to ensure

everything is ready for spring of 2007. As RTF manager Stephen Kimoff is quick to confirm to existing tenants at the Research Transition Facility, “This will be a lateral move in terms of everything we’ve been doing here. But the new space will be completely renovated. The current RTF is housed in the old nurses’ residence on the U of A campus. Believe me, there’s only so far renovations can go in this quirky old building, charming as it is. On the other hand, Stephen is excited about what can be done with the Bay building. “It Stephen Kimoff will be completely gutted, right down to the concrete. We’ll keep the historic façade but, inside, we’ll build high quality brand new labs and office space.” RTF and TEC Edmonton will occupy the top floor, which could be the third, or possibly the fourth if one is added. The space will be split 50/50 between lab and office, each designed for flexibility to accommodate start-up technology companies occupying the facility. Stephen explains, “We’ve learned an enormous amount from the five years we have been operating at the old nurses’ residence to do a really good job of creating an environment that’s been thoroughly thought out. The Stir Krazy coffee shop has facilitated interaction between tenants in our current site. Downtown, this interaction will happen on a city scale. Commercial startups will have access to lawyers, accountants, government, EEDC and so on. That has everyone excited.” With the move, TEC Edmonton will focus on further enhancing its services to tenants and participants, particularly on the business side, helping people get access to resources that will advance the commercialization of their product. Prospective tenants don’t have to be U of A spinoffs but they do have to have some involvement with technology, want to grow,

With all due respect to the former chief justice, in trials I’ve covered in five provinces as a print/electronic journalist, “facts” and “opinions”, as well as “speculation” and “hearsay” are frequently heard from various witnesses during all types of trials. And even from some lawyers. And Mr. Asper should know that columnists, the likes of the Edmonton Journal’s Lorne Gunter, Paula Simons and Scott McKeen, and The Sun’s Paul Stanway and Kerry Diotte, almost daily mix facts with opinions on the subject of their columns—be it concerning Edmonton City Hall, the Alberta Legislature or the Edmonton Court House. That’s not the least bit surprising when you find Canada’s supreme court

justices mixing facts with their opinions —especially in split-decision cases. All of them follow the letter of the law, but split decisions occur because of various interpretations of same by those in Canada’s highest court. Further, I give credit to most readers who can easily distinguish between an opinion column and a news report. Opinions carry very little weight or credibility without facts being provided as a basis for the opinion/argument. Ironically, Asper finds nothing objectionable about members of his legal profession using journalists outside the courtroom to get a favourable spin for their clients. At Wiebo Ludwig’s trial some years

Now that the U of A and TEC

and want to have an association with the University and the City of Edmonton. If that describes your situation, Stephen wants to hear from you: E-mail RTF@TECEdmonton.com On another note, any day now we should be hearing an announcement about the successor to Dr. Peter Robertson as the new CEO of TEC Edmonton.

Alberta Research Council has joined forces with Edmonton’s very successful biopharmaceutical company CV Technologies Inc. through its NuRx program. CVT is the company that makes COLD-fX, the popular natural medicine for colds and flu that hockey celebrity Don Cherry hawks. NuRx Services is an ARC research unit specializing in nutraceutical, pharmaceutical and biotechnology research and development. Says CVT CEO Jacqueline Shan, “The lab services they’ve provided have helped us get through a recent rapid growth period. Having this type of service available to local biotech start-ups is great for the Alberta biotechnology industry.” Other organizations partnered with ARC’s NuRx Services in the Edmonton Research Park include NAEJA Pharmaceuticals, Keystone Labs, and U of A researchers from the Alberta Ingenuity Centre for Carbohydrate Science. The NuRx team has recently patented a designer lipid and a process for manufacturing glucosamine hydrochloride. BioAlberta introduced its new president Ryan Radke at its AGM and Gala Awards in January. Ryan was previously the VP operations and programs with BioAlberta. He has a strong background in international trade, technology and bio-pharmaceuticals. Alberta is a hotbed of biotech activity in Canada, with over a hundred companies involved in the industry. More than 3,300 people are directly employed by biotechnology firms, with a further impact on almost 20,000 more jobs. According to the BioAlberta 2005 State of the Industry Report, Alberta’s biotechnology firms produced revenues of $386 million in 2004, with an investment of $112 million.

Innovation and Science Minister Victor Doerksen is back from a very successful trade mission to China and California in January. While in Edmonton’s twin city of Harbin, he launched the new Alberta-Heilongjiang, Harbin Institute of Technology Research Innovation Centre. Data mining is a major focus of this joint venture. The Minister also witnessed the signing of a memorandum of agreement between TRLabs and China Rail regarding collaboration on a wireless services project. ✔ Cheryl Croucher is an Edmonton broadcast journalist and host of Innovation Alberta. You can hear the program on CKUA Radio Tuesdays at 8pm or download it when you visit www.innovationalberta.com. E-mail ccroucher@edmontonians.com ago, the presiding judge cautioned counsel about overuse of the media at “sidewalk courts”. And, if my memory serves me right, that judge also found such action objectionable. David Asper is shortchanging such astute CanWest publishers as Linda Hughes of The Journal and Peter Menzies of the Calgary Herald, if he thinks either one of them—or any other publisher/editor for that matter —would allow public faith in Canada’s judicial system to be threatened by the writers of “shoddy columns and news reporting.” ✔ Bruce Hogle is the former news director at CFRN TV and recently retired head of the Alberta Press Council.

EDMONTONIANS FEBRUARY 2006

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BizIT 101 LAS VEGAS, NV – On “The Strip,” not far from the Las Vegas Convention Center, a huge billboard displays a pair of ruby red, female lips on a jet black background and these four words: “What Happens in Vegas…” Well, Sin City reputation aside, the only things that the 2,500 exhibitors at the 2006 Consumer Electronics Show want to stay in Vegas are signed purchase orders from the attendees of this gigantic show. CES is a big, big deal. Since the death of Comdex, it has evolved into the granddaddy of all trade shows and has more attendees—about 130,000—than the population of Thunder Bay, ON or New Haven, CT. You want celebrities? You’ve got ’em: Kevin Bacon was dining a few tables away from me at the Nobhill Restaurant in the MGM Grand. Tom Cruise and Ellen Degeneres pitched Yahoo! Inc., Robin Williams was hustling Google, Justin Timberlake was on stage with Bill Gates, Jay Leno just happened to be playing the Mirage this weekend… and hey, isn’t that New York Yankee shortstop

Yahoo! Tom

TV; just as long as you are connected to the Internet. The unit, made by SlingMedia of San Mateo, CA can be ordered online and converts your TV signals so they can be transmitted over the Internet for viewing from a browser. Going to Maui this month but want to watch the 6 o’clock newscast on Global Edmonton everyday? Now you can, by just powering up your laptop. We all know what a hit the iPod is. However, the Creative Zen Vision:M ($300 US) is an iPod knockoff that just may be better. Complete with 30GB of storage, it is slightly bigger than an iPod but has a far better display, an FM Tuner, video support and recorder ,and syncs with your Microsoft Outlook contacts, calendar and tasks. Not bad. Pioneer made a big splash at CES and was involved in several “Best of Show” award categories. This year, the Inno an “XM2go” gadget plays, naturally, live XM Satellite music but can now download and record up to— get this—50 hours of XM programming. The unit ($400 US) also has MP3 playback, meaning you’ve got a satellite radio and an MP3 player in the same package. There is no word if this is available in Canada, but usually what happens with satellite radio will eventually find its way north of the 49th. After all, what happens in Vegas, usually doesn’t stay in Vegas. ✔ Gregory B. Michetti of the Alberta-based systems integration firm Michetti Information Solutions, Inc. can be reached via www.michetti.com or e-mail IT101@edmontonians.com.

Civic Buzz These days, you can’t avoid talk of re-branding Derek Jeter showing Dana Carvey his new cell phone? Name dropping aside, while CES is the coming-out party for new companies and new gadgets, the big boys often use this four-day, e-circus to make a statement about their new directions. For example, Gates gushed over Vista, the next Microsoft operating system… Intel CEO Paul Otellini promoted ViiV, its new microprocessor… Silicon Valley heavyweight Hewlett-Packard unveiled four new consumer notebooks, a digital entertainment desktop computer and seven small, low-priced digital cameras. However, it was HP’s rollout of nine new high definition TVs in three model categories of LCD, microdisplay and plasma that grabbed a great deal of attention. Simply put, the new units look great. They serve up bright, clear images, and most home type models have the peripheral input panel on the front—right where it should be. The idea here is to connect your personal computer to it and watch high definition TV, movies, play DVDs, listen to all of juniors illegally ripped music and surf the ’Net, too. If it were up to HP, the typical digital home of the future will sport one of its TVs—like the 37-inch HP Advanced Digital Media LCD TV unit—and have it connected to an HP Media Center PC. This type of setup now becomes the digital hub for the house, and allows for the wired or wireless streaming of music and video to other devices in the home: the Xbox 360 in the den, and the Media Center laptop that Mom has open on the kitchen counter while preparing dinner. Of course, there is a money angle behind this. Now, you can conveniently access and buy over a million songs at Real Networks’ Rhapsody, or visit CinemaNow and MovieLink to watch more than 4,000 Hollywood movies or high-definition videos.

OTHER COOL CES GADGETS: We all know that the PC, your TV and your cell phone/ PDA are quickly converging. Nowhere was this more evident than the Slingbox, a $250(US) brick-like-looking device that sits on top of and connects to your Shaw Cable “set top box” and your home router. Now, you can view live television from any computer, anywhere, anytime through your Slingbox-equipped home

Edmonton. Mayor Mandel has managed to coax $480,000 out of City Council to help market the city more effectively, and all I can say is, “It’s a good start.” While I’m not sure that re-branding and making others more aware of Edmonton are one and the same thing, they both do speak to a problem that I’ve focused on more than once—and recently—in this column. I personally think that renaming something so that it includes “Edmonton” as part of its title is neither necessary nor relevant. The University of Edmonton, for example, has a nice ring to it, but University of Alberta has a much better caché, suggesting something more than an institution that serves primarily a local clientele. That’s especially true when the name is linked to almost 100 years of history. But in an acknowledgement that a recognition problem exists (and I know well that it does, from personal experience), the University of Alberta has agreed, I understand, to identify itself more closely with Edmonton, in that its branding and marketing efforts will include something like “University of Alberta, Edmonton” wherever practical. Similarly, renaming the Edmonton Art Gallery the Art Gallery of Alberta is a mark of recognition and prestige, not a diminution of Edmonton. The Art Gallery of Ontario, the Royal Ontario Museum and Roy Thomson Hall all are well associated with Toronto, as is the Glenbow Museum with Calgary. The Art Gallery of Alberta and the Royal Alberta Museum reflect and reinforce the fact that Edmonton is the capital of Alberta and is the proper location of institutions that serve a clientele spanning not just Alberta but Canada and beyond. It’s wise to recall Shakespeare’s words from Romeo and Juliet: “What’s in a name? That which we call a rose, By any other name would smell as sweet.” It’s more a matter of getting the word out, and this leads me to what I have long argued is the biggest problem with Edmonton’s image: lack of national media recognition. The responses I’ve had to my past comments on this suggest that I am far from alone in my thinking. One person noted in passing that in Alberta we should be referring to CBC Radio One and Two as the “Calgary Broadcasting Corporation,” and that almost rings true. Some of this may be budget-related, I’m sure, but the fact that the vast majority of provincial broadcasting on CBC emanates from Calgary is both unbalanced and unfair. I also had e-mails

regarding my recent expression of disgust with CTV for its lack of a national bureau representative in Edmonton— readers agreeing that it’s simply ridiculous that Calgary is given such disproportionate coverage. The same goes with the National Post, which early on showed such promise in providing balanced Alberta coverage, but which has since shrunk its Alberta focus to… well, not to Edmonton. I think the Globe and Mail is somewhat more balanced, but still has a long way to go. If you think this isn’t important you might want to consider that many of the country’s most influential decision-makers, both political and corporate, include CBC, CTV and both national papers as part of their listening and reading habits. And if they consistently hear programs and read new stories from Calgary and not Edmonton— especially news stories about Edmonton being reported from Calgary—you can bet it has an impact on their opinions of this city as a centre of influence. Edmontonians have to keep up the pressure on the Toronto-based media to stop overlooking this region. It wasn’t always this way—a decade or so ago media parity between Alberta’s two major cities was much more evident. Now, I worry that Edmontonians are so accustomed to Calgary being used as the Alberta reference point that we no longer want to fight for equal representation on the national front. This is where Mayor Mandel should be using some of that $480,000 recognition money: an ongoing awareness campaign demonstrating that we, too, have something to say.

Speaking of branding, much has been made of constructing something that would give Edmonton a clearly identifiable symbol, much like the CN Tower in Toronto or the Seattle Space Needle. In an important sense, we already do have a symbol that is very much associated with Edmonton and is a major attraction: West Edmonton Mall. It may not be the kind of symbol we’re looking for, but the fact is that it pulls in more tourists and visitors than any other Alberta destination, and we should remember that. I do think that the Mall could use some significant updates. While the Waterpark is undergoing a major facelift, parts of the Mall are looking tired, and new attractions would be a shot-in-the arm. But for entertainment and shopping, virtually nothing in Canada rivals it. And a recent visit on a January Saturday suggested to me that the crowds show no sign of diminishing. WEM was a very busy place. Let’s not take it for granted… it’s been, and continues to be, good to and for Edmonton.

A faithful reader of Edmontonians and strong civic booster, Kenny Davies, has passed on information about a potential new link between Edmonton and the USA: “After saying last month that the airline was researching the possibility of expanding service to Canada, Frontier Airlines CEO Jeff Potter now tells the Denver Rocky Mountain News that the low-cost carrier will indeed start flying north of the border—hopefully by late May. Potter also told the paper that his airline plans to add “at least” three new U.S. destinations and increase daily flights on 20 existing routes. “As for Canada, Frontier last week submitted an application with the U.S. Department of Transportation seeking permission to fly to the country. With the proposed Canadian service, the Rocky Mountain News writes that ‘Frontier hopes to emulate the recent success it has seen in Mexico, where the carrier now flies to seven resort destinations and even has the beginnings of a ‘mini-hub’ or ‘focus city’ in Cancún.’ Colorado airline analyst Mike Shonstrom says Canada appears to be a good fit for Frontier. ‘Certainly the Canadian market for Mexican vacations is extremely strong and has always been,’ he says. ‘Frontier is an ideal airline to offer connecting service (from Canada) for that market. And, of course, there is a very large population of skiers in Denver who want to go north and ski the Canadian Rockies.’ Experts suggest Calgary, Edmonton, Toronto, Vancouver and Winnipeg as possible Canadian destinations.” ✔ David Norwood is a freelance writer/editor. Contact dnorwood@edmontonians.com

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EDMONTONIANS FEBRUARY 2006

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Slimming Secret! www.edmontondowntown.com DOWNTOWN EVENT LISTINGS Your one stop for information on the Edmonton Arts District www.theartsdistrict.com

Family Festival Downtown Churchill Square, Arts District, Alberta Legislature and many more venues… February 20, Noon to 5 pm 780.424.4085 www.edmontondowntown.com

ART GALLERY OF ALBERTA Architecture & Design Film Series February 7, 14, 21 & 28, 7 pm www.madeinedmonton.org Edward Burtynsky: A Gift to Edmonton Until February 6 Inuit Art: A Moving Experience; Travel and Transport in the Arctic Until Februrary 26 IttuKiagâtta: Inuit Sculpture from the TD Bank Financial Group Until February 26 Building a Collection: 80 years at the EAG Until April 2 780.422.6223 www.edmontonartgallery.com

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CITADEL THEATRE

780.917.7670

Kurt Elling Concert February 3, 8 pm Fully Committed Until February 12 I Am My Own Wife Until February 19 Guys and Dolls February 11 to March 19 Box Office 780.425.1820 www.citadeltheatre.com ZIEDLER HALL Metro Cinema 780.425.9212 www.metrocinema.org SHAW CONFERENCE CENTRE Groove Street Productions Dance Convention February 4 and 5 1-877-476-6839 www.groovestreet.net Al Shamal Shriner’s Valentine Dinner & Auction February 11 780.482.6065 www.alshamalshriners.org G.E.T. Fest February 13 to 17 780.415.5211 www.movementsdance.com Bounce 91.7 Birthday Bash February 17 www.thebounce.ca Trader’s Forum February 19 to 21 905.760.7694 www.tradersforum.ca Missionsfest February 24 to 26 780.451.0080 www.mfest.ab.ca

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www.shawconferencecentre.com

WINSPEAR CENTRE FOR MUSIC Edmonton Symphony Orchestra Davis Sunday Showcase Romantic Masterpieces: Parisotto/Zou/Hackleman February 12 Robbins Pops – Peter Nero’s Greatest Hits February 17, 18 The Masters: Akiyama/Campbell February 24 , 25 Also Playing at Winspear World at Winspear: Emeline Michel February 4 Richard Eaton Singers with Alberta Baroque Ensemble February 5 Great Big Sea - SOLD OUT! February 7 Paco Pena – Flamenco February 8 Men Making Music February 11 Duo Majoya February 12 Sundays at 3: Maurice Clerc from Dijon Cathedral February 19, 3 pm 780.420.1757 Colin James February 23 Pro Coro – Lighter Side of Pro Coro February 26 World at Winspear: Cubanismo March 3 STANLEY MILNER LIBRARY Philosopher’s Café February 4, 2 pm 780.496.7063 Concrete Theatre: Nami Namersson February 3, 7 pm February 4, 2 pm & 7 pm 780.420.1757 www.concretetheatre.ca Cinema at the Centre: Roads to Koktebel February 8, 7 pm Canada Council Author Reading: Joan Barfoot February 26, 2pm

NFB Film Club: Me and the Mosque February 26, 2 pm 780.496.7070 www.epl.ca MORE DOWNTOWN VENUES ALBERTA CRAFT COUNCIL Inspired, Influenced..InSERIES Until April 1 780.488.6611 www.albertacraft.ab.ca McDOUGALL UNITED CHURCH Music Wednesdays at Noon. Free! February 1, 8, 15 and 22 780.468.4964 I Coristi Chamber Choir: Marian Mementos February 4, 8 pm 780.420.1757 Philip Glass: The Etudes and other work for Solo Piano February 24, 8 pm 780.451.8000 www.ticketmaster.ca RED STRAP MARKET Kids’ Day at the Market February 11, 1 to 4 pm 780.497.2211 SNAP GALLERY David Scott Armstrong: And Now, Then Otherwise Until February 18 Artist Reception February 16, 7 pm Linda Carreiro: Bind February 23 to April 28 Opening Reception February 23 780.423.1492 www.snapartists.com STARLITE ROOM Sonata Arctica February 4, 8 pm Philosopher Kings February 18, 8 pm Reverent K February 22, 7 pm The Birthday Massacre w/Guests February 24, 8 pm Controller.controller March 01, 8 pm 780.451.8000 www.ticketmaster.ca

Lose Lose 4 4 to to 20 20 inches inches in in an an hour! hour! A hot new detoxifying body wrap! There’s a secret buzzing all over Greater Edmonton that we can’t wait to tell you about… “ I was attending a special event and had borrowed a strapless black dress, but it was a little snug,” remembers Nadine Jolson. “A friend suggested the wrap.” The mineral soaked bandages “felt kind of like a corset,” says Nadine. But it was worth it. “I rushed home to try on the dress and it was loose. I could wear it and actually breathe.” “You start by recording your before measurements,” says Linda Perras of Suddenly Slimmer. “We check jaw, neck, forearm, wrist, bust, waist, abdomen, hips, upper thighs, lower thighs, calves and ankles. Then comes the treatment itself.” 1. The wrap. You are wrapped firmly with elastic bandages soaked in warm mineral solution. 2. Get your blood pumping. Light physical activity revs up circulation. 3. Remoisten. Every 20 minutes, the mineral solution is applied. After 60 minutes, the wraps come off.

Why it works? The wrap detoxifies the body. The body can get overloaded with toxins because it cannot keep up with the filtration process. The more toxins in the body, the more lymphatic fluid increases to protect cells. You force out toxins. Once the toxins are gone, the lymphatic fluid decreases and you lose inches. It is not water loss—rather, an exchange of minerals for toxins.

That’s a Wrap! Call Linda Perras at Suddenly Slimmer Day Spa

780.459.3444 pedicures. manicures. facials. aroma therapy message

www.suddenlyslimmerdayspa.com EDMONTONIANS FEBRUARY 2006

Proof___ ____PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

ACQUISITIONS, DIVESTITURES & CORPORATE FINANCE Stephen W. Kent, CA (780) 448-9099

SELLING TO THE COMPETITION

Habitat for Humanity Edmonton April, May, June 2006 A duplex for two Edmonton families currently living in sub-standard housing will be designed, built, finished, and landscaped by women. Hundreds of volunteers— professional carpenters, plumbers and absolute beginners—will work together to build hope for families. Sign up for shifts, 8am to 5pm, Monday through Saturday Training Sessions in February and March

Contact Brenley Bennett at bbennett@edmonton.hfh.org

When selling a business one of the obvious buyers is your competition. However, most vendors are leery of selling to their competitors. Vendors are anxious about the possibility of the competition using the sale process simply as an opportunity to obtain information that could hurt their business. This is a very real concern and from time to time it does happen Customers and employees tend to be the most vulnerable areas. Few companies have proprietary technology or a secret formula for success that no one else knows about. All companies have employees without whom they would not be able to stay in business. In Alberta’s current business climate good employees are in short supply. Skilled workers with a particular expertise are even harder to replace. In a number of the service industries if one company hires three people from another company that company takes three from yet another company and so on. The deck is continually reshuffled; everyone gets a raise but none of the companies are really further ahead. Because skilled employees are becoming such a scarce commodity, purchasers need to be assured that the company’s key employees are content, motivated and most importantly, going to stay. Most businesses in the same market place know their competitor’s customers base as they compete for the same business on a continual basis. If the value of the company being sold is driven by its sustainable income stream rather than its underlying asset base, the relationships the vendor has with its customers is critical. As a result, most purchasers want to talk to the vendor’s customers to confirm if customer patronage and therefore, company revenues are likely to continue. The challenge is how to satisfy the purchaser’s due diligence requirements in regard to these issues and protect the vendor at the same time. Part of the solution is timing. All of the other significant due diligence items should be signed-off before these issues are addressed. Typically there are only a few key employees; the natural leaders and innovators in the organization. If these key individuals are on side with the transaction, the rank and file will likely follow. Customer information, volumes, product mix, margins etc. should be given in a generic and nonidentifying form for as long as possible. Direct contact with customers should be controlled by the vendor or his/her agent and both the vendor and the purchaser should be present at any meetings. A final suggestion; if you are considering a purchase, do not hire any of the vendor’s employees during the due diligence process. If one of them wants to join you, wait a month before you hire them or sign them up with an impending commencement date. Hiring a vendor’s employee at the critical time of negotiations can destroy trust between the parties. If there is no trust there will be no deal. If you would like to learn more about selling or purchasing a business, please email me at skent@foundationgroup.ca or call me at 780.448.9386. For more information about Foundation Group visit our website at www.foundationgroup.ca.

EDMONTONIANS FEBRUARY 2006

Proof_ _____PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________