Ottawa business journal 20150928 by Great River Media inc.

2070207 2773811

Office • Industrial Space Retail • Development Land

613-226-2000 www.arnon.ca

Go east, young man?

Ottawa Commercial Leasing

Brokers say the east end will break out of its commercial real estate slump but might need a trailblazer to help do it > PAGES 8-9

September 28, 2015 Vol. 18, NO. 23

creating the right space for your business merkburn.com 613.224.5464

For daily business news visit obj.ca

Emmy worthy Ross Video has won its share of awards, but few mean as much as recognition from TV academy. > PAGE 15

ZINation CEO David Ker’s initial attempts to scale his company failed, but he thinks he’s now found a winning formula with help from mentors. PHOTO BY ADAM FEIBEL

Beautiful solution to startup woes ZINation hopes fashion sector is perfect fit for firm’s digital magazine technology Three-year-old local enterprise looks to finally make breakthrough after landing first major contract with Shopify in April > PAGE 4

24 HR EMERGENCY SERVICE

• Pipe locating • No-dig technology • Plumbing repairs

• Drain cleaning/thawing • Camera inspection • Hydrovac/combo trucks

CALL US TODAY 613-731-5500

End of an era Iconic restaurant Hy’s Steakhouse a victim of changing tastes and federal cuts, experts say. > PAGE 16 Canada Post Publications Mail: Agreement No. 41639025

— SPONSORED CONTENT —

Revitalizing Ottawa’s core – is Chinatown being left behind?

rom Preston Street’s Little Italy, to Westboro Village and Wellington West, revitalization has been a driving force in Ottawa’s core neighbourhoods for years. New development and redevelopment is considered key to stimulate economic activity, attract new customers for local businesses and create more family-friendly neighbourhoods. But this collective drive for renewal has been slow to come to some neighbourhoods. Nestled between Bay and Preston streets along Somerset Street West lies Ottawa’s Chinatown, officially known as the Somerset Street Chinatown Business Improvement Area. The BIA represents 120 area businesses, the majority of which are operated by Asian residents. But a healthy ethnic community is more than just a sum of local businesses. It’s a cultural hub, a neighbourhood where people can live, work, play and celebrate their cultural background. This makes it a magnet for tourism and even foreign investment that can contribute to the economic health of the entire city.

MONDAY, SEPTEMBER 28, 2015

While adjoining neighbourhoods have been revitalized through collective efforts that have seen residents, business owners, developers and city hall work hand-inhand, Ottawa’s Chinatown has been slow to see the same concerted effort.

OBJ.CA

Chinatown’s need for infrastructure Local business owner Ken Yip believes there are two stumbling blocks: a lack of parking to make it easy for visitors to patronize local businesses, and height restrictions on new buildings that give developers little incentive to invest in the area. “If the City wants to see action in Chinatown, if it wants to see new development, it has to be more flexible,” he said. What does he mean by “flexible?” Take another look at the Chinatown’s parking situation, and loosen the rules that limit building heights, the same way

Chinese arch on Somerset Street at Bronson Avenue.

they have been in other neighbourhoods. While he doesn’t advocate a string of 30-storey condo towers, he believes it would make sense if nine or 10 storeys were permitted on one or two blocks of Chinatown. A 10-storey building offers a developer a far greater return on their investment than a five-storey one. “If we intensified a small area of Chinatown, it would attract everything else,” he said – new employers, new businesses and, most importantly, new residents. Big plans at 770 Somerset It can be done. In fact, it already has. Yip has teamed up with local homebuilder Phoenix Homes to build a nine-storey mixed-use development on his property at 770 Somerset. This building will feature 75 condo units, three levels of parking and ground-level retail. Given how much demand there is for affordable rental accommodation in the area, the units will be leased, not sold.

Pushing that project through the city approvals process was only possible thanks to the support of former Somerset Ward councilor Diane Holmes. For Yip and Phoenix Homes President and CEO Cuckoo Kochar, that experience illustrates just how important a role a ward councilor plays in cutting through red tape to drive change. “Without a councilor’s support, you get nowhere,” Kochar said. “We hope that our new councilor will be as supportive.” That new councilor is Catherine McKenney, who took office last fall. Addressing issues in Chinatown around parking, zoning and height restrictions with city staff tops her agenda. “Chinatown is situated in a part of the city that is almost ready to explode in terms of its potential,” McKenney said. “I don’t necessarily agree that Chinatown is being left behind, but it is seeing its time now.”

Do parking issues, building heights tell the full story? The counselor, the business owner and the developer all agree on one point – revitalizing Chinatown is a team effort. All three agree that public–private partnerships can be a powerful tool. The question is who has to make the first move. Yip and Kochar expect 770 Somerset will be a catalyst for bigger and better things, but its occupancy date is two years away. Can Chinatown afford to wait that long for a kick-start? And is a lack of parking infrastructure and building height restrictions the only factors that are delaying a revitalization of the area? In our next article, coming in OBJ’s October 26th edition, we will speak with prominent developers active in Ottawa’s other core neighbourhoods for their thoughts on what may also be stalling Chinatown’s redevelopment.

Why participate in Canada’s Best Managed Companies program? •

Opportunity to be part of a premier business network

•

Detailed self-analysis of your business focused on strategic and operational issues

•

Extensive national, regional and local media exposure

•

An improved ability to attract and retain top talent

•

A new business competitive edge that will help you grow and attract investors

Find out if you have what it takes at www.bestmanagedcompanies.ca

CEO Forum sponsor

MONDAY, SEPTEMBER 28, 2015

Program partners

03 OBJ.CA

LAUNCH PAD “We (spend) a lot of time falling in love with technology and then figuring out how we can apply it, where it would have been better if we just identify what is the problem, who’s the customer, and try to solve the problem of that customer using the technology.” – ZINATION FOUNDER DAVID KER

ZINation founder David Ker says the firm’s technology, which makes engaging e-magazines, is gaining traction with retailers. PHOTO BY ADAM FEIBEL

E-magazine technology finds its focus Local startup ZINation makes big strides in e-commerce space, thanks to L-Spark advisers BY ADAM FEIBEL adam@obj.ca

MONDAY, SEPTEMBER 28, 2015

OBJ.CA

n Ottawa startup that provides automated merchandising for online retailers is making major strides this year after landing contracts with e-commerce companies Shopify and Magento. With e-commerce sales in Canada expected to hit almost $30 billion this year, there’s little question that online retailers are selling to a large and rapidly growing market. But in a space that’s more competitive than ever, particularly in the fashion e-commerce subsector, visuals and other accompanying digital content are essential. Looking to enter the thriving business space that launched fellow Ottawa company Shopify’s success, three-year-old startup ZINation has made major early strides in 2015 with its technology that lets retailers make elaborate and engaging e-magazines to allow customers to view products much like they would flip through a fashion catalogue. “A product that has value needs to be

presented in better packaging, and that better packaging goes beyond a Shopify store where you have (just) pictures presented. How about presenting them in a (way) that the fashion industry knows very well?” explained CEO David Ker. Then a master’s student at Carleton University, Mr. Ker founded ZINation in 2012 with the initial concept of curating online content into custom user-made digital tablet “magazines,” in the vein of Pinterest and Flipboard. “How can we make content beautiful in a format that’s similar to a magazine?” asked the 40-year-old entrepreneur. Eventually he found that model wasn’t working and the funding wasn’t there to allow his company to scale and subsequently survive. Now one of six L-Spark incubator companies working out of the program’s Kanata headquarters, ZINation has the focus it needs to succeed, Mr. Ker said. “There’s synergy between the value proposition that we proposed, which is presenting content in a beautiful manner, and applying it to an e-commerce context,” he said. “(L-Spark’s advisers) recommended we

be even more focused, and that focus was around merchandising, instead of just stating that we’re tapping into the e-commerce marketplace.” From there, the bootstrapped startup landed its first major contract with Shopify in April, resulting in 2,000 e-retailers using its service. With the addition of Los Angeles-based Magento, which has about twice the client base of Shopify, ZINation expects to triple its user base. In the L-Spark incubator program, ZINation and its fellow startups are expected to earn between $10,000 and $30,000 in monthly recurring revenue after a year. Mr. Ker said his company will aim for the lower end of that scale, around $10,000 to $15,000 per month. As long as the firm meets that goal, ZINation can be profitable by mid-2016, he added. The new Magento contract will help with that growth, he said, and his company is also eyeing other major e-commerce players such as Bigcommerce, Etsy and, further down the line, even Amazon and eBay, which owns Magento. “The big one we’re looking into in the

future is Alibaba, I would say by the end of next year, but it could be faster,” said Mr. Ker. The main challenge, however, is conversion. ZINation offers its service free to merchandisers for the first month and many customers need a bigger push – including tutorials – in order to commit to the service. In the meantime, ZINation also finances itself by acquiring side contracts, building apps for other small companies to earn service revenue that helps sustain the main business model. Mr. Ker said there were multiple times during the first few years of his startup when it looked like things weren’t going to work out, but he added it taught him the value of long-term commitment, good business advisers and real problem-solving. “We (spend) a lot of time falling in love with technology and then figuring out how we can apply it, where it would have been better if we just identify what is the problem, who’s the customer, and try to solve the problem of that customer using the technology.” L-SPARK GRADUATION: Page 10

— SPONSORED CONTENT —

CHANGE LOG STARTUP GARAGE SENDS OFF 2015 COHORT Startup Garage honoured its 2015 group of entrepreneurs at the end of August, sending off seven local firms that spent the summer receiving funding, training, office space and mentorship from the University of Ottawabased program. This year’s startups were CigBins, eCelery, Enplex, GameStrat, Predikat, Oat & Mill and Tyto Robotics. Previous success stories from the program include Gymtrack and MicroMetrics. YOU.I LANDS $15 MILLION IN FUNDING ROUND Having bootstrapped its way to success – making it No. 7 on OBJ’s list of the capital’s fastest-growing companies earlier this year – You.i TV turned to outside investment in September with a $15-million venture capital funding round. The extra funding comes in the midst of a banner year for the seven-year-old user interface developer. CEO Jason Flick said he expects the firm’s head count to grow to at least 200 by the end of the current fiscal year in June 2016, from its current total of about 150. More major announcements about new products and partnerships are coming soon, he added. BETTER SOFTWARE SEES HUGE GROWTH IN 2015 The Better Software Company has recorded a major year since being accepted into the L-Spark accelerator program in January. The

CALENDAR TON of Demos: Hosted by The Ottawa Network Monday, Sept. 28 at 6:30 p.m. The Clocktower Brew Pub, 575 Bank St. Info and registration at eventbrite.ca

Sales Skills for New Entrepreneurs Monday, Oct. 5 from 10 a.m. to 12 p.m. Invest Ottawa, 80 Aberdeen St. Info and registration at investottawa.ca/events

STARTUP TAKES ON OFF-HOURS PACKAGE DELIVERY Three international students in Ottawa have launched the beta version of a service they say will make it easier for day-job workers and small businesses to deliver and receive packages. “We are not just any other delivery company,” says co-founder AK Chavda, whose Algonquin College-based startup, Packagepal, will provide customer-scheduled off-hours delivery services. After a soft launch on Sept. 5, the company will consider its proof of concept a success if it can deliver 200 packages per month by December. The bootstrapped startup got a $10,000 head start from Algonquin College’s Summit program this summer. The company’s team says it will turn a profit if it can reach 500 deliveries a month.

eSAX Ottawa Business Networking Event Wednesday, Oct. 7 from 6 to 9 p.m. Lansdowne Park Horticulture Building, 1015 Bank St. Info and registration at esax.ca/events Bootstrapping Your Business: Alternate Ways to Finance Your Startup Friday, Oct. 16 from 10 a.m. to 12 p.m. Invest Ottawa, 80 Aberdeen St. Info and registration at investottawa.ca/events Launching an Online Store: Tips for Getting Started Monday, Oct. 19 at 6:30 p.m. Ottawa Public Library, main branch, 120 Metcalfe St. Info and registration at biblioottawalibrary.ca/ en/program Axis Ottawa 2015 Wednesday, Oct. 21 to Thursday, Oct. 22 Carleton University, 1125 Colonel By Dr. Info and registration at axisottawa.com

Ottawa’s Tech Sector by the Numbers By Bruce Lazenby, CEO and President, Invest Ottawa.

peaking passionately about our vibrant technology ecosystem is a daily routine for everyone at Invest Ottawa. Our mission is to turn our city into Canada’s innovation leader. We believe this is possible because all the data makes the case. It’s true our city is bursting with talent. We have the most educated workforce in Canada, with nearly 70,000 people working in areas such as software, communications, life sciences and cleantech. However, here are some incredible facts regarding the financial health of our tech sector: • In the last five years, Ottawa tech companies have raised more money in the public markets than every other city in Canada combined. • Ottawa companies have spent nearly $1 Billion buying foreign companies (More than Montreal, Calgary and double Waterloo). • Ottawa has attracted more venture capital for technology companies than Calgary, Montreal or Waterloo. • Of the top 250 Canadian technology companies, Ottawa is home to more than Vancouver, Montreal, Calgary or Waterloo. • Ottawa secures more grants for tech companies than any other city in the country. Ecosystems need talent and money to grow. The Nation’s Capital has these in spades. Please share these impressive stats at your next meeting, at the water cooler, even at the dinner table. Ottawa is a leader in Canadian technology and we need your help to tell that story.

05 OBJ.CA

Getting Better Return from your Social Media Content Tuesday, Oct. 6 from 1 to 2:30 p.m. Invest Ottawa, 80 Aberdeen St. Info and registration at investottawa.ca/events

KLIPFOLIO GETS INVOLVED IN FEDERAL ELECTION DEBATES Looking to reach a wider audience to show off its dashboard technology, Ottawa’s hot startup Klipfolio has waded into Canada’s federal election campaign with a tool that displays realtime public reaction to the candidates’ public debates. Klipfolio has rolled out the dashboard tool to monitor social media reaction at both leaders’ debates that have taken place so far. The election contribution comes amidst an already-successful 2015 for Klipfolio, which sells cloud-based customized business and marketing dashboards, including record growth in both sales and staff. In February, it raised $6.2 million in a series-A round led by OMERS Ventures.

MONDAY, SEPTEMBER 28, 2015

StartUp Drinks ByWard Market Wednesday, Sept. 30 from 5 to 8:30 p.m. Aulde Dubliner Pourhouse, 62 William St. Info and registration at eventbrite.ca

company has grown to 33 employees from four in just nine months and has already raised $750,000 in seed funding, with another $250,000 in the works. It comes out of beta in November and has offices set up in eight countries around the world via Wesley Clover International’s network. And the firm intends to keep multiplying – founder Steve Cody says he hopes to reach a billion dollars in revenue after five years.

SPORTS & ENTERTAINMENT Arena makeover a winning strategy for Sens: Professor Addition of new eateries, premium seating area at CTC a ‘clever’ way for NHL club to attract higher-margin customers, expert says BY DAVID SALI david@obj.ca

ike many NHL teams this offseason, the Ottawa Senators set out to attract a few high-priced free agents in their drive to succeed at the sport’s highest level. But it wasn’t players the club’s business office was chasing – it was customers. Earlier this month, the Senators unveiled the largest renovation project in the 20-year history of their Kanata arena, a $15-million makeover that includes

airport-like security scanners, a bevy of new food and beverage offerings and a members-only section called Club Bell. A 20,000-square-foot premium seating area at the west end of the Canadian Tire Centre’s 100 level, Club Bell features three new seating options, a restaurant for the exclusive use of its 472 members, and valet parking. “We really tried to do something spectacular here with Club Bell,” Senators president Cyril Leeder said in mid-September during a tour of the newlook CTC. Standing just outside of one of the 14

The Canadian Tire Centre’s new Club Bell targets “five-star” clientele. IMAGE PROVIDED

sold-out victory suites, a scaled-down version of the traditional luxury box that seats six to 10 customers, Mr. Leeder said the Senators felt smaller suites were the way to go in a town that lacks the kind of well-heeled business clients who drive private suite sales in cities such as Toronto and New York. “Our market here doesn’t have many big corporations that can support that, so we’ve really focused on the small and medium-sized businesses and products that are one, two and four seats,” he said. The move appears to have paid off. The 14 new suites, which range

in price from $80,000 to $125,000 per year and require a five- or seven-year commitment, went on the market last November and sold out in three weeks. The loges – four seats grouped around a fixed tabletop – were snapped up so quickly 12 more were added to the additional allotment of 27, and only a couple are still available at $45,000 per year over a three- or five-year term. Finally, Mr. Leeder said he expects most of the 220 individual luxe seats – plusher, wider versions of regular club seats that cost $10,000 apiece for a season – to be sold by the time the

COMMERCIAL BUILDINGS FOR SALE 449-451 Churchill Avenue - $2,299,000 Two 6 unit buildings on a 100 x 100 foot lot

The Manfredi Team

250-242 Breezehill Avenue - $1,199,000 2 duplexes and a 37 x 26 foot garage on a 66 x 140 foot lot

MONDAY, SEPTEMBER 28, 2015

ROULETTE MONTH AT BANCO BISTRO

OBJ.CA

COMMERCIAL SPACE FOR LEASE

50% OFF ALL OUR PRICES, EVEN OR ODD

300 Richmond Road - Westboro 8,398 square feet available with underground parking Over 4,000 square feet on both the third and fourth floors

The entire Banco Bistro menu will be half price: the surf and turf platter, our delicious pizzas, our Angus beef burgers, and even our mussels!

440 Preston Street - Little Italy 930 square foot main floor plus basement

FROM MONDAY TO THURSDAY UNTIL OCTOBER 22, 2015

Contact Listing Agents for further details

Rocco Manfredi

Jill Rochon

Sales Representative

Rmanfredi@royallepage.ca

Licensed Assistant

Jillrochon@royallepage.ca

613-552-5300 Royal LePage Gale Real Estate 105-383 Parkdale Avenue, Ottawa Ontario K1Y 4R4 casinolacleamy.ca

18+

Access is restricted to persons 18 years of age or older. Excluding taxes and gratuities. Details are available at the restaurant. This offer may be amended or cancelled at any time without notice. Other conditions may apply.

The new Albert at Bay Suites Hotel Logo - November 1

Senators play their home opener against the Montreal Canadiens on Oct. 11. The construction required the removal of 18 suites, eight rows of seats and the concourse behind them, reducing the CTC’s overall seating capacity to 18,694 from 19,153. But the team expects to see an uptick in overall ticket revenues of eight to 10 per cent this season thanks to Club Bell. Ian Lee, an assistant professor at Carleton University’s Sprott School of Business, said the premium seats might be shiny and new, but the concept behind them is as old as capitalism itself. The marketing expert compared the members-only club concept to business class seats on an airplane.

“They’re doing classic market segmentation. They’re identifying their high flyers, their five-star customers. This is a small niche, but a very affluent niche and a very profitable niche.”

STAY BIG OR STAY HOME! OTTAWA’SBIGGEST

HOTELSUITES

If you’re coming to Ottawa with your BFFs, you’ll have plenty of room in one of our condo-sized suites instead of a cramped hotel room. The Albert at Bay Suite Hotel is where you’ll find the biggest suites in Ottawa for less than a hotel room! All in the heart of downtown close to everything.

3 blocks from Parliament Hill

– IAN LEE, ASSISTANT PROFESSOR AT CARLETON UNIVERSITY’S SPROTT SCHOOL OF BUSINESS

albertatbay.com | 1-800-267-6644

MONDAY, SEPTEMBER 28, 2015

07 OBJ.CA

“They’re doing classic market segmentation,” he said. “They’re identifying their high flyers, their five-star customers. This is a small niche, but a very affluent niche and a very profitable niche.” Noting Club Bell’s members will account for less than three per cent of the arena’s capacity yet are expected to generate nearly three times that much in terms of their share of overall revenue, Mr. Lee said the team is targeting businesspeople and well-off hockey fans who “want the corporate box experience without renting an entire corporate box.” In contrast, he said, the food and beverage upgrades are designed to appeal to a broad range of fans. Among the changes are an increase in the number of Tim Hortons outlets to 14 from three and the introduction of the Farm Boy Fresh Zone, featuring items such as wraps, salads and fresh soups. “This renovation is really two different renovations,” Mr. Lee said. “I applaud the Senators. This is a very clever strategy. You’ve got to keep investing in your product and offering new features and more variety to keep the customers coming.”

REAL ESTATE East-end market feeling the pinch Area’s vacancy rate has more than doubled in the past 12 months, but is it just a temporary blip? BY DAVID SALI david@obj.ca

MONDAY, SEPTEMBER 28, 2015

hen Mxi Technologies vacates more than 50,000 square feet of class-A office space at Blair Place in November, an east-end commercial real estate market that has already seen its vacancy rate soar from eight to more than 18 per cent over the past year will take another hit. A rate change that drastic in the east was bound to raise eyebrows. While a less robust region of business activity than Kanata, it also has less commercial space than the west or the city’s central core and traditionally hasn’t experienced many stomach-churning ups and downs. But Bruce Wolfgram, a vice-president

OBJ.CA

at Primecorp Commercial Realty, said the east has been trending in the wrong direction lately. Calling the area “a hidden gem,” he said the lack of an anchor industry such as the tech sector means the east end often gets overlooked when tenants go shopping for new digs. “The bottom line is, there’s good space out there, but traditionally there just hasn’t been the willingness of some companies to consider the east,” said Mr. Wolfgram, whose firm has been trying to sublease nearly 14,000 square feet of class-A space in Morguard’s office complex at 1601 Telesat Court for more than a year with no success. “Industries cluster in certain areas. There needs to be cluster started in the east end to get things rolling.” Still, other commercial brokers

Bona’s building at 140 Jeanne Mance St. is still waiting to be leased. PHOTO BY MARK HOLLERON

stress that the numbers over the past 12 months, while alarming at first glance, must be put into context. While the east’s vacancy rate is currently higher than the rates of 13 per cent in the core and just under 12 per cent in Kanata, its figure skyrocketed when Bona Building and Development Co. finished its 10-storey office tower at 140 Jeanne Mance St. near the Vanier Parkway last year. The building, which still sits empty

waiting to be leased, features nearly 275,000 square feet of class-A space – a hefty chunk of real estate in a market with about 4.6 million square feet of total inventory. When the Bona building is removed from the mix, the east’s vacancy rate dips to about nine per cent. “I think the reality is that vacancy rate can be by and large explained by the introduction of the Bona building,” said Shawn Hamilton, vice-president and managing director at CBRE in Ottawa.

“There’s not a compelling story to be in (the east end) unless you’ve traditionally located in Orleans or east Ottawa. It’s a case of, there are just better opportunities elsewhere.” – OLIVER TIGHE, MANAGING DIRECTOR OF COLLIERS INTERNATIONAL’S VALUATION AND ADVISORY SERVICES BRANCH IN OTTAWA

“If we strip Bona out of the equation, we can see that the east end is still below Ottawa’s suburban vacancy rate, it’s below the national suburban vacancy rate. I don’t think the east end has a problem.” Despite a flurry of speculation that the federal government will eventually move to 140 Jeanne Mance St., Public Works told OBJ last week the feds have no plans to rent space in the building any time soon. “No discussions on office space have taken place between (Public Works) and the building owner at 140 Jeanne Mance Street,” spokesperson Jessica Kingsbury said in an e-mail. “At this time, there is no competitive process for acquisitions of space in that area.” Bona has remained tight-lipped about its plans for the new Vanier property. Calls to the company’s president, Robert Vocisano, were not returned, but brokers told OBJ the firm has not been actively pursuing potential tenants. Because the east end has a smaller inventory than the west or the core, moves such as Mxi’s tend to skew rates upward quite dramatically and make the situation look worse than it really is, some observers say. The Ottawa-based software company,

one of the few tech firms located east of the core, has occupied space in various buildings in the Blair Park of Commerce for two decades. It announced earlier this year it was moving to a single property at 175 Terence Matthews Cres. in Kanata. “A change like an Mxi statistically will have a bigger impact than if it happens in the downtown core at 16 million square feet,” Mr. Hamilton said. “Mxi moving to the west I think is a situational thing.

I don’t think that they’re leaving the east because it was horrible, they’re leaving the east because they were in a complex (where) they were fragmented and dispersed.” He acknowledged the area is in tough trying to attract firms in sectors such as high tech, which tend to prefer Kanata’s “campus setting.” But he said he thinks light rail will be a “game-changer” for landlords when the Confederation Line

starts carrying commuters to Blair station in 2018. “This will in essence extend our downtown core to the east,” he said, adding he believes light rail will allow prime commercial spaces such as the Blair Park of Commerce and 1900 City Park Dr. to compete for tenants with buildings in the core. “People always talk about, is there going to be a migration from the core? I think if there is going to be a migration coming from the core, we would see it coming from the core to the east along the LRT. That could spur new development there.” Not everyone is convinced. Oliver Tighe, managing director of Colliers International’s valuation and advisory services branch in Ottawa, said light rail might entice a few companies to take a second look at properties in the east, but there will be no mass influx of new tenants. “If you have a choice, you’re likely to look downtown or at the fringe core” where access to the airport and other amenities are better, he said. “There’s not a compelling story to be in (the east end) unless you’ve traditionally located in Orleans or east Ottawa. It’s a case of, there are just better opportunities elsewhere.”

PERLEY-ROBERTSON, HILL & McDOUGALL LLP/s.r.l. would like to welcome Timothy McCunn to the firm’s Business Law Group. For over 25 years, Tim has focused his practice on corporate, commercial and securities law with particular emphasis on mergers and acquisitions and corporate finance for the technology and life science sectors. Tim’s clients include a wide variety of entities from entrepreneurs, mid-market corporations to crown corporations, and not-for-profit organizations. Timothy J. McCunn 613.566.2831 tmccunn@perlaw.ca 1400-340 Albert Street Ottawa, ON K1R 0A5 T: 613.238.2022 F: 613.238.8775 1.800.268.8292 www.perlaw.ca

MONDAY, SEPTEMBER 28, 2015

Tim practices law in both English and French.

09 OBJ.CA

ENTREPRENEURSHIP Showcasing startup excellence L-Spark’s graduating companies ‘know what it is like to compete in a global environment,’ managing director says

CHIEF MARKETING OFFICER Terry Tyo, 238-1818 ext. 268 EDITOR, PRINT CONTENT David Sali, 238-1818 ext. 269 david@greatriver.ca EDITOR, ONLINE CONTENT Tom Pechloff, 238-1818 ext. 291 editor@obj.ca

Special to OBJ

COPY EDITOR Krystle Kung

CREATIVE DIRECTOR Tanya Connolly-Holmes, 238-1818 ext. 253 creative@obj.ca

ight companies from the first cohort of L-Spark, the Kanatabased incubator and accelerator program, cheered the end of a successful year-long odyssey at the SaaS Showcase earlier this month. They came to pitch their businesses to the community of investors and entrepreneurs as well as celebrate the variety of experiences that had brought them there. The event, held at the Canadian Museum of Nature on Sept. 17, was reminiscent of a graduation (minus cap and gown). L-Spark managing director Leo Lax played up that imagery as he addressed the audience. “It’s the graduation for our entrepreneurs. It’s the place where their journey has taken them over the past 12 months while they were at L-Spark,” Mr. Lax said. After brief introductions from their L-Spark mentors, the enterprise software Leo Lax is managing director of Kanata-based incubator and accelerator L-Spark. FILE PHOTO startups each took 10 minutes to show their idea, their growth and the potential for their future. Some, such as Better Software Company founder Steve Cody, took the opportunity to reflect on just how far they had come with L-Spark. Mr. Cody, who had never managed a tech firm before, said L-Spark was there to mentor him through every step along the way. “I didn’t know what the heck SaaS – ANTHONY MAR, CEO OF CLINICONEX, ON GRADUATING FROM L-SPARK was, but it sounded pretty cool! It was perfect,” said Mr. Cody. The conclusion of L-Spark’s inaugural community how far we’ve grown and gets some recognition for it. They’ve year proved to be as much of a learning what our plans are for the future,” she done some great work with some of experience for the program as it was said. Ottawa’s top talent,” he said. for the participants. Mr. Lax described Anthony Mar, CEO of Cliniconex, As much as the night was about one trip down to Silicon Valley to pitch agreed the SaaS Showcase was about reflecting on the new firms’ success, to venture capitalists, only to have the more than just a pitch. He said it was L-Spark was also keen to look to the companies “decimated” by the feedback also about recognizing the value of the future. Mr. Lax noted that graduation they received. entrepreneur community in Ottawa. does not mean the end of the program’s “But we learned,” Mr. Lax said. “You can’t have a community without connections. “We went there in order to know celebration … So we need these focal “They will continue to be our alumni. what it is like to compete in a global points during the year to keep going We will continue to provide them advice. environment.” and to recognize that we are being We will continue to connect them to Sarah Daniele, co-founder of successful,” said Mr. Mar. their potential customers,” he said. Mydoma Studio, said she was looking After a long night of pitches and A new wave of startups is about forward to her presentation not only to partying, Target Fuel founder Chris to descend on L-Spark. The second attract investors, but also to share her Corman wanted to point the spotlight accelerator cohort will be chosen on journey. back to L-Spark for its efforts. Sept. 29, while applications for the “I’m excited to share with the “At the end of the day, I hope L-Spark incubator will open on Oct. 5.

MONDAY, SEPTEMBER 28, 2015

“You can’t have a community without celebration … So we need these focal points during the year to keep going and to recognize that we are being successful.”

OBJ.CA

PUBLISHER Michael Curran, 238-1818 ext. 228 publisher@obj.ca SENIOR VICE-PRESIDENT OF SALES Don Mersereau, 238-1818 ext. 286

BY CRAIG LORD

Great River Media 250 City Centre Ave., Suite 500 Ottawa, Ontario, K1R 6K7 obj.ca

ART DEPARTMENT Jamie Dean, 238-1818 ext. 278 jamie@greatriver.ca Regan VanDusen, 238-1818 ext. 254 regan@obj.ca ADVERTISING SALES Wendy Baily, 238-1818 ext. 244 wbaily@obj.ca Alison Stewart, 238-1818 ext. 226 alison@obj.ca Susan Salsbury, 238-1818 ext. 229 ssalsbury@obj.ca MARKETING & SALES CO-ORDINATOR Cristha Sinden, 238-1818 ext. 222 cristha@greatriver.ca INSIDE SALES SUPPORT Marc Nordemann-Keller, 238-1818 ext.259 marc@obj.ca CAREER ADVERTISING & MARKETPLACE ADVERTISING SALES 238-1818 ext. 251 VICE-PRESIDENT OF OTTAWA BUSINESS EVENTS Susan Blain, 238-1818 ext. 232 susan@ottawabusinessevents.ca FINANCE Jackie Whalen, 238-1818 ext. 250 jackie@greatriver.ca SUBSCRIPTIONS/DISTRIBUTION 238-1818 ext. 248 subscribe@obj.ca PRINTED BY Transcontinental Qualimax 130 Adrien-Robert, Parc Industriel Richelieu Gatineau, QC J8Y 3S2

Ottawa Business Journal is published by

CHIEF EXECUTIVE OFFICER Mark Sutcliffe PRESIDENT Michael Curran All content of Ottawa Business Journal is copyright 2015. Great River Media Inc. and may not be reproduced in any form without permission of the publisher. Publisher’s Liability for error: The Publisher shall not be liable for slight changes or typographical errors that do not lessen the value of an advertisement. The publisher’s liability for other errors or omissions in connection with any advertisement is strictly limited to publication of the advertisement in any subsequent issue or the refund of monies paid for the advertisement. A guaranteed minimum of 14,000 copies per week are printed and distributed.

BUSINESS GROWTH

talk

CEO

SERIES

BUSINESS CONFIDENCE INDEX

Tobias Lütke

The confidence index is a composite of five indicators. A score of 100 represents a neutral position. A score higher than 100 is positive, while a score below 100 is negative. According to the Ottawa Business Growth Survey, overall business confidence in the city improved between December 2013 and April 2015. Confidence wasOTTAWA’S higher amongECONOMIC business leaders working in the technology, banking and hospitality/tourism sectors.

Founder and CEO of Shopify

Creating an Innovative City

OUTLOOK

Tuesday, October 6, 2015 11:30 am – 1:30 pm

BUSINESS CONFIDENCE INDEX BY SECTOR

The Westin Ottawa 11 Colonel By Drive 4th floor - Confederation 1 Ballroom

Individual Tickets:

136.2 129.2

TECHNOLOGY OTTAWA’SHOSPITALITY ECONOMIC TOURISM

OUTLOOK

131.4

91.6 RETAIL

117

BANKING

$60.00 + HST (Members) $75.00 + HST (Non-Members)

Ever wish you could peek inside the mind of a local CEO?

Corporate Tables of 10 with Signage $540 + HST (Members) $675 + HST (Non-Members) Presented by

Join us for an intimate discussion with Tobi Lütke, and gain valuable insight as he shares his personal stories of success.

and

CONSULTING

OTTAWA’S ECONOMIC

OUTLOO

This annual event will examine trends and opportunities in the city’s business sector and provide an insightful forecast about Ottawa’s economic future This event will include: • A keynote address by Michael Denham, President & Chief Executive Officer, BDC • Presentation by Douglas Porter, CFA, Chief Economist & Managing Director, BMO Financial Group • An important update from The Mayor of Ottawa

Tuesday, October 27, 2015 Shaw Centre – Trillium Ballroom 11:30 am - 1:30 pm

INDIVIDUAL TICKETS Chamber Members: $60 Regular Rate: $75

CORPORATE TABLE OF 10 Chamber Members: $540 Regular Rate: $675

MONDAY, SEPTEMBER 28, 2015

• The latest results from the fall edition of the Ottawa Business Growth Survey, presented by Dr. David Coletto, CEO, Abacus Data

11 OBJ.CA

TOH BY THE* NUMBERS

+ 1,126,204 OUTPATIENT CARE VISITS

48,445 SURGICAL CASES

17,702

STAFF, LEARNERS AND VOLUNTEERS

169,507 EMERGENCY DEPARTMENT VISITS

50,023

MONDAY, SEPTEMBER 28, 2015

PATIENT ADMISSIONS

OBJ.CA

6,296 BABIES DELIVERED

2014-15

THE FUTURE IS NOW This place is the third-largest employer in Ottawa. The population of a small city moves in and out of its three campuses every single day: volunteers, students, staff and medical professionals. It’s renowned for groundbreaking research, clinical trials and innovative treatments for devastating diseases. It delivers world-class care to a region of 1.3 million people. It’s The Ottawa Hospital, and last year it cared for more patients than any other Canadian hospital. Many people already know that The Ottawa Hospital is the place to go with a broken arm or if you get sick, but there is much more to the story. “I wish people knew more about what happens inside these walls,” says Dr. Jack Kitts, President and CEO of The Ottawa Hospital. “What they would learn is that there is an exceptional staff committed to the best patient care possible.” The Ottawa Hospital has a mission. It’s a “tri-care” mission which includes the highest possible standards of health care and it’s a mission that goes far beyond what a regular hospital visitor might expect. “Every hospital cares for patients. Period. Full stop,” says Dr. Kitts. “Not every hospital can treat the most complex, complicated patients with the most difficult illnesses and injuries. It’s more than just the doctors and nurses ... it’s the top doctors, professors, researchers. The whole package.” Although the No. 1 focus at TOH is the patient experience, its role as a community health care provider extends much further. TOH is a learning institution which has dedicated itself to educating the physicians, nurses and other health professionals and performing cuttingedge research with “world-first” clinical trials fuelled by the latest technologies and treatments. “We care for patients with the emphasis on the most complex, sickest patients there are,” says Dr. Kitts. That’s the first part of the TOH tri-care mission. “The second part of our mission is that we are a learning organization, and we educate future health professionals, and the third part is we do research. Research that will make a difference not only in the future but research that actually impacts patients today. “This is research that actually matters to regular people.” New technologies and treatments that elevate the standard of care to a new level are a major part of The Ottawa Hospital story, but unless

Dr. Jack Kitts, President and CEO, The Ottawa Hospital PHOTO BY MARK HOLLERON

you happen to be a patient, you may never hear about them. Take, for example, the CyberKnife Robotic Radiosurgery System: it leaves no scar, and allows surgeons to remove cancers that are inoperable or otherwise difficult to reach. Or the personalized medicine via the molecular oncology lab, which is about to radically change cancer treatment as we know it. “One of the little-known facts about The Ottawa Hospital is that we provide the equipment, facilities and technology, and we do the world-leading research and we’re bringing back the talent,” says Dr. Kitts. “You can’t get better care for complex issues. It’s here. It’s in Ottawa.” This is the first of an ongoing series about The Ottawa Hospital. Look for the evolving archive on obj.ca.

THE OTTAWA HOSPITAL

— SPONSORED CONTENT —

The Ottawa Hospital takes the most complex patients, the learners and educators of tomorrow, and the research and discoveries, and puts it all into leading practices and world-class care. That’s our role, that’s our mission, that’s what the citizens of Ottawa should expect us to be. — DR. KITTS, PRESIDENT AND CEO, THE OTTAWA HOSPITAL.

MONDAY, SEPTEMBER 28, 2015

13 OBJ.CA

— SPONSORED CONTENT —

Face-to-face and custom learning that works SETC Training provides real results for clients

MONDAY, SEPTEMBER 28, 2015

e may live in an age of social media, but when it comes to learning, most people still prefer to interact with instructors and fellow students face-to-face. Nothing beats face-to-face training for effectiveness and enjoyment.

OBJ.CA

For the team at SETC Training, this is a no brainer. SETC Training specializes in custom and in-person learning, at a time when the industry has come to be dominated by large training providers that rely on off-the-shelf courseware often delivered by instructors hundreds of miles from their students. SETC’s client base spans the private and public sectors, in Ottawa, Toronto and Montreal.

“We’re the only independent provider of technical training left in Ottawa,” said Jean-Marc Choquette, Founder and President. “The more the market shifts toward cookie-cutter distance learning, the more loyalty we are seeing from our clients who want something better. We win about 90 per cent of the opportunities we bid on.” SETC Training provides custom technical training from its own classrooms. It will tailor courses for as few as two participants, and do so at a cost point that is competitive with the big guys and their off-the-shelf offerings. How is this possible? SETC Training develops all its courseware in house, saving on licensing costs, and has invested in an automated system

to drive efficiencies in all aspects of its operations. That means more resources can be devoted exclusively to learning. Agile and client-focused “We do not resell any courseware from the big names in technology,” Choquette said. “We are likely the only training firm in Canada that can say that. We have developed our own gap analysis methodology to identify client needs. This allows us to build a program that fits.” SETC has authored over a million pages of technical content. It continually updates its courses to keep abreast of the latest technologies and standards, such as IPV6, Windows 10, Linux Kali and HTML5. SETC Training offers a wide range of IT and management training, including nine

programming languages, the complete range of Microsoft and Linux server applications and a complete suite of testing, business analysis and project management courses. Recently, it added new programs for corporate finance and IT penetration testing. Every course is followed with a rigorous quality assurance program, to ensure the best possible outcome for students and identify areas for improvement. “We are a highly agile, client-focused organization,” Choquette said. “Customer satisfaction is our top priority.” Learn more Find out how SETC Training can serve your training needs by visiting www. setctraining.com or calling 613-454-8097.

TECHNOLOGY Ross takes centre stage at Emmys

o t h c a o r p p A A Team s e c i v r e S d l i u Design-B

Groundbreaking video equipment platform earns local company prestigious honour BY DAVID SALI david@obj.ca

s the CEO of one of Canada’s leading tech companies, David Ross is a regular at the Consumer Electronics Show in Las Vegas every January. Next year, he’d probably be wise to bring along a tuxedo. The National Academy of Television Arts & Sciences announced earlier this month that Mr. Ross’s eastern Ontario-based company, Ross Video, will be honoured with a technology and engineering Emmy Award at a ceremony in Las Vegas on Jan. 8. Ross Video is receiving the award for its pioneering product openGear, a combination hardware platform and software control system that allows users to perform tasks such as convert analog video to digital or compress video streams. The technology behind the system is available to customers for free as long as they buy the framework from Ross Video, which manufactures it at its plant in Iroquois.

“You don’t just win for something that’s cool. You win for something that’s made an impact on the industry.”

WHAT IS AMSTED DESIGN-BUILD? Celebrating its 25th year in business, Amsted Design-Build is a one-stop solution for homeowners looking to renovate or build a new home. In a seamless process, professional design and construction experts work together. This enhances the customer experience and saves time and money. Steve Barkhouse, President and Co-owner of Amsted explained, “With a combined total of over 450 years experience, our team knows construction inside and out and focuses that knowledge to transform your space into a home that is uniquely yours and exceeds your expectations in every way.” WHAT IS AN INTERESTING FACT ABOUT AMSTED DESIGN-BUILD? The Greater Ottawa Home Builders’ Association has awarded Renovator of the Year to Amsted five times since 2006, an unprecedented record. Amsted is proud to be a finalist again this year. Steve and Co-owner Kirk Haw also appreciate their loyal clients. Referrals are their number one source of new business. They are now serving a third generation for many families.

HOW IS AMSTED DESIGN-BUILD INVOLVED WITH THE SENS? When asked about Amsted’s involvement with the Sens, Steve explained “We are fans first. We are huge Sens supporters, putting up posters and wearing our jerseys on game days. We’ve been attending Sens games since the team started playing.” Amsted now has seats in the new Club Bell. Steve shared that tickets are used to reward staff, customers, and partners. It’s a comfortable environment to get to know people. Steve added, “We’re old fashioned that way. Knowing our clients makes business more fun.” A big supporter of Camp Smitty, Amsted also attends many Senators Foundation events. “We’re kind of a team in that regard,” said Steve.

15 OBJ.CA

“I like to joke we made a metal box and we won an Emmy,” Mr. Ross, the firm’s majority shareholder, said last week after returning to his Ottawa office from a trade show in Amsterdam. “It was pretty exciting and pretty gratifying.” Mr. Ross said the company launched openGear, which allows companies to piggyback off each other’s technology, after seeing how difficult it was for “little guys” to break into the video equipment and production space. “It really changed the industry,” he said, noting 87 companies are now part

of the openGear consortium. “It’s pretty cool.” Ross Video has won a roomful of awards in its 40-year history, but perhaps none with the cachet of an Emmy. “The Emmy is really, really hard to get,” said Jeff Moore, Ross Video’s executive vice-president and chief marketing officer. The committee that recommends the award has to prove the technology has “materially affected” television production, transmission or reception, he said, and that doesn’t happen every day. “You don’t just win for something that’s cool. You win for something that’s made an impact on the industry.” The announcement from the television academy is just the latest feather in the cap for Ross Video, which is riding a wave of customer wins and adulation that would make many higherprofile tech firms envious. With about 580 employees and annual revenues in the $150-million range, the company has become a player to be reckoned with in the video equipment and production industry. Ross Video’s roster of customers includes everyone from ABC to the NFL’s Green Bay Packers. It has quietly acquired almost a dozen companies since 2009, its latest deal a seven-figure investment in a Norwegian firm called The Future Group. TFG is working on The Future Universe, an ambitious virtual reality game show that will be produced using Ross Video technology. “It’s going to be pretty exciting,” he said. “If we play our cards right, I’ll be like all the other CEOs and say we have a shot at being a billion-dollar company here in Ottawa.”

MONDAY, SEPTEMBER 28, 2015

– JEFF MOORE, ROSS VIDEO’S EXECUTIVE VICE-PRESIDENT AND CHIEF MARKETING OFFICER, ON THE FIRM WINNING AN EMMY

Ross Video CEO David Ross. PHOTO PROVIDED

Name: Steve Barkhouse Title: President, Co-owner n-Build Company: Amsted Desig

RESTAURANTS Hy’s lost sizzle with clients, experts argue Iconic restaurant’s closure ‘inevitable’ due to changing tastes and federal expense account clampdown BY DAVID SALI david@obj.ca

MONDAY, SEPTEMBER 28, 2015

y’s Steakhouse and Cocktail Bar stunned the capital when it announced it will close early next year, but the news came as no surprise to observers who say the highend restaurant had fallen out of favour with penny-pinching civil servants and consumers dazzled by newer chains. A favourite haunt of Parliament Hill’s political elite, the downtown business crowd and journalists since it opened in 1985, Hy’s said it was shutting its only Ottawa location at the Sun Life Financial Centre because it couldn’t come to terms on a renewed lease with landlord Bentall Kennedy. It will close its doors for good when its current lease expires next February. But retail analyst Barry Nabatian of research firm Shore Tanner & Associates said the restaurant’s demise started long before talks began on a new rental agreement. He argued Hy’s had fallen

OBJ.CA

out of step with the times, offering the same food and decor year after year, and ultimately paid the price. “People’s tastes are finicky,” Mr. Nabatian said. “(Hy’s) is the same old, same old. We now have lots of different types of restaurants and some of them are just as pricey or even pricier that are doing well. People just want new decor, different decor, different menu, different things, and I think it was time for a change. Any restaurant – in fact, any business – that doesn’t renew itself, reinvent itself, after 10-15 years, it just doesn’t do well.” He pointed to newer nearby establishments such as Bier Markt and 3 Brewers as examples of eateries that brought something different to the table and drew customers away from Hy’s. Slightly farther away, he said, restaurants such as Joey and Local Public Eatery at Lansdowne Park are packing in patrons who like their informal atmosphere, varied beer selection and good food at reasonable prices.

Hy’s Steakhouse. PHOTO BY MARK HOLLERON

“They are doing far, far better than they had expected,” Mr. Nabatian said. “They are different and people are attracted to those things.” Ian Lee, an assistant professor at Carleton University’s Sprott School of Business, blamed the demise of Hy’s and other expensive restaurants such as Hull’s Café Henry Burger on the media and the public’s hunger for juicy political scandals.

Episodes such as the Liberal sponsorship scandal in the mid-2000s led the federal government to clamp down on expense accounts, he said, and strict new rules on what civil servants could accept as “gifts” meant many lobbyists stopped taking clients out for pricey lunches. “I think it was inevitable,” Mr. Lee said of Hy’s closure. “In fact, I was predicting it several years ago.” Over the past decade or so, civil servants’ spending patterns have been under more media scrutiny than ever, he said, and “expense accounts have slowly disappeared. Everybody in the senior public service knows if you go to a restaurant, you go on your own dime. What it did is it killed the expense account crowd.” Hy’s, which also has establishments in Calgary, Toronto, Vancouver, Winnipeg and Whistler, B.C., is celebrating its 60th anniversary in October. The company employs about 40 people at its Ottawa location.

— SPONSORED CONTENT —

Green is the favourite colour at the Shaw Centre

Green Goodness

Eco-friendly initiatives abound at Canada’s Meeting Place

hen Kermit the Frog said, “It’s not easy being green,” he hadn’t visited the Shaw Centre. Formerly the Ottawa Convention Centre, this large facility has made an impressive commitment to sustainable operations. “Our board, the architect, the builders and the engineers shared a powerful vision – they wanted to achieve LEED (Leadership in Energy & Environmental Design) certiﬁcation. It took a comprehensive strategy to get there,” explains Mathieu Murphy, the Centre’s Director of Facilities.

Murphy. “Our guests and suppliers are more eco-conscious than ever; that encourages us to continually reﬁne our operations, increasing our waste diversion and using automation technology to reduce our use of electricity, heating and cooling.”

“Attaining LEED Gold is awesome, especially for a facility of this size, in this climate,” he adds. “It’s a real selling point as many clients are consciously seeking ecofriendly venues.”

The Shaw Centre recently installed an ORCA, a state of the art machine that can digest up to 600 pounds (275 kilograms) of food scraps per day. Within 24 hours, the ORCA turns kitchen by-products into environmentally safe grey water, diverting tons of material each month from methane-producing composting or landﬁll sites.

With tools in place to measure an event’s carbon footprint; the Centre can weigh cardboard used, calculate waste generated, measure water, electricity and energy consumption and more. “Clients want to understand the true cost of their event, at a very detailed level,” says

Neil Gorman, the Centre’s Director of Operations, admits that there are costs to running an eco-friendly operation,

During construction, all waste was separated into bins according to type. Materials that could be recycled, such as concrete, wood, and metal, were sent to recycling facilities. This strategy helped divert 97% of materials from landﬁlls, far exceeding required levels. The Shaw Centre saves 225,000 gallons of water each year by harvesting rainwater and storing it in a cistern below the building. The collected rainwater is then pumped back for the building’s greywater needs including toilets and landscaping irrigation, when needed.

but those costs are worthwhile. “It fits our philosophy because the Centre was a pioneer in the field of sustainable operations and so much thought went into green design and construction.” No detail is too small – from motion-activated lighting down to plant-based cups at the watercoolers and biodegradable plates and cutlery. “When people visit this building there is always a wow reaction; and when they find out how ecofriendly we are, that just adds to the venue’s appeal,” he notes.

The wood in the Wall of Three Rivers is made entirely from reclaimed logs that had sunk to the bottom of the Ottawa River during the logging era. For more information, please call 1-800-450-0077 or email Info@shaw-centre.com.

TiECon Canada 2015: New World. New Rules. No Limits!

October 29-30 @ Brookstreet Hotel, Kanata

2 1

ebel entrepreneurs are taking on multinationals. Talent is transient and untethered. Mexico, Columbia and Kenya are the new emerging markets. Turbulence is transforming business models. Competitors are collaborating. And the Internet of Things will change everything. The entrepreneurial ground is shifting. It’s a new world with new rules and no limits. Are you ready?

So, why attend TiECon Canada 2015?

4 1. Kelly Hoey Forbes (“1 of 5 Women Changing the World of VC/Entrepreneurship”) to Fast Company (“25 Smartest Women On Twitter”)

Beneﬁt from one-on-one mentorship, learning opportunities, competitive intelligence and formulas for success Network with peers, prospective customers, investors and partners from our nation’s capital, across Canada and around the world

Register today for this expected sellout event at: www.tieconcanada.org For additional details, please contact: Dr. Jasvinder Obhi, Executive Director of TiE Ottawa:

ed@tieottawa.org.

2. Vicki Saunders Serial Entrepreneur and Founder of SheEO 3. Mike McDermint Co-founder and CEO of FreshBooks,

4. Mary Spio inventor, Serial Entrepreneur, President Next Galaxy 5. Devin Brooks Co-founder Blo, the world’s largest franchise of blow dry bars. 6. Ray Sharma Founder and Executive Managing Partner of Extreme Venture Partners

17 OBJ.CA

Gain rare access to angel investors, VCs, and government funders, and opportunities to increase deal ﬂow.

MONDAY, SEPTEMBER 28, 2015

Join us at TiECon Canada on October 29 and 30, 2015 at the Brookstreet Hotel to chart your entrepreneurial future and succeed in a business world where change is the only constant. Hosted by TiE Ottawa, this ﬂagship entrepreneurial conference will bring you faceto-face with hundreds of serial entrepreneurs, industry veterans, investors, innovators and other members of the Canadian and global business community.

Compete for the opportunity to pitch for $25,000 in seed funding and more than $100,000 in business support at PitchFest 2015 – submit your application today until Friday, October 2, 2015 at midnight at: https://tiecon.ﬂuidreview.com/ Hear from inspirational speakers who are breaking boundaries and charting a path to success

— SPONSORED CONTENT —

Raising the bar for track & field How Ottawa Tourism helped Ottawa Lions TFC score the 2017 & 2018 Canadian Championships

Andy McInnis, Director of Programs and Head Coach, Ottawa Lions Track & Field Club

t’s been a busy summer for sport, with Ottawa hosting part of the FIFA Women’s World Cup Canada and the Canadian Sprint Canoe Kayak National Championships, and Toronto welcoming the Pan Am Games.

MONDAY, SEPTEMBER 28, 2015

For Ottawa Tourism and the Ottawa Lions Track & Field Club, it’s all part of the momentum building for 2017 and 2018.

OBJ.CA

In those years, Ottawa will host the Canadian Track & Field Championships. The event is expected to generate more than $3 million in economic benefits for the city in each year, and attract about 1,500 athletes and 500 trainers and coaches. The Ottawa Lions is the largest track and field club in Canada, with a history that spans more than 40 years. This non-profit takes pride in delivering comprehensive programs that suit every age and aspiration. “From the Playground to the Olympic Games” is its motto. Its two facilities are the Terry Fox Athletic Facility

at Mooney’s Bay and the Dôme @ LouisRiel in Blackburn Hamlet, which houses the only indoor 400-metre track in Canada. Securing back-to-back national championships has been a team effort that turned adversity into opportunity, says Andy McInnis, Lion’s head coach and director of programs. It all began a few years ago with a joint bid by Ottawa Tourism and Lions to host the IAAF World Youth Championships. While that bid ultimately failed, “it generated the interest and the energy to host Canada’s national championships,” McInnis said. Getting Ottawa’s venues up to snuff Ottawa’s track and field community has long had a great reputation as gracious hosts, but the city has struggled to provide the facilities to match. While the Terry Fox facility is the only premier stadium for track and field between Montreal and Toronto, it was in need of renovation if it hoped to woo a premier national event.

As a non-profit with limited resources, the Ottawa Lions needed Ottawa Tourism’s help to prepare a winning bid document with professional polish, and to collaborate with the City of Ottawa on moving ahead with long overdue infrastructure improvements that were on the books for the Terry Fox facility.

Am Games, and the upcoming Olympics,” Cox said.

Darrell Cox, Ottawa Tourism’s Manager, Major Events, spearheaded that effort. He worked with the City of Ottawa to secure new funding for improvements to the Terry Fox facility and move up the timeline for existing lifecycle renewal projects. In total, close to $440,000 is being invested at the venue in advance of the 2017 Championships. This will create a lasting legacy for current and future athletes, and strengthen Ottawa’s ability to attract future track and field events.

“We couldn’t do it without Darrell and Ottawa Tourism,” he said. “His office has done a lot of work for us that’s put the icing on the cake. With their support, we’re in a much better position now to pursue those big international events that can have a pretty big economic impact on the local community.”

Facing stiff competition “By supporting the Ottawa Lions, we are also helping them train our athletes for major events like the Pan Am & Parapan

Having that kind of support to help Ottawa up its game is critical, as the competition between cities to host signature sporting events becomes more aggressive, said McInnis.

Is there a sporting event you want to bring to Ottawa? For more information, please contact Darrell Cox at dcox@ottawatourism.ca, or call 613-237-5150, ext. 126.

PDF/X-1a:2003

OTTAWA TORONTO

Up to 16 daily depatures Starting at

*Conditions apply. One-way fare, before taxes. The number of seats available at this price is limited. TM Trademark owned by VIA Rail Canada Inc.

19 OBJ.CA

2100, rue Drummond

MONDAY, SEPTEMBER 28, 2015

BUILD YOUR NETWORK THROUGH OUR NETWORK

N OV E M B E R 1 8 t h , 2 0 1 5

S H A W

SAVE THE DATE FOR THE BIGGEST CELEBRATION OF LOCAL BUSINESS FOR 2015 • Walk the red carpet • Enjoy a black tie evening • Celebrate the CEO of the Year and Lifetime Achievement recipients

C E N T R E

Last call for nominations in the following categories: • Best Business • Best New Business • Best Performance in Exports, HR, Marketing, Philanthropy, Sales, Sustainability Submit your nomination online at

www.bestottawabusiness.ca by Monday, Oct. 5

• Network with the city’s business elite and local celebrities

MONDAY, SEPTEMBER 28, 2015

Thank you to our sponsors

OBJ.CA

PROUDLY PRESENTED BY

CEO of the Year

Deals of the Year

Newsmaker of the Year

Partner

Best Business Best New Business

Best Performance – Sales

Media Partners Red Carpet

LEAD SPONSOR

Best Performance – Exports

For more information, please email info@ottawabusinessevents.ca or call 613.236.7029 ext. 135

RETAIL Booming craft brew biz still ‘fragile’: Kichesippi owner Ottawa’s beer industry gaining steam but must focus on quality and marketing to ensure growth continues, city’s largest brewer says BY DAVID SALI david@obj.ca

ttawa’s burgeoning craft beer industry can’t afford to rest on its laurels if it hopes to thrive in an age of foreign competition and falling overall consumption, the co-owner of the city’s largest brewery told a group of businesspeople recently. “This is still a very, very young industry and I still think a very fragile industry,” Kichesippi Beer Co. founder Paul Meek said during a presentation at the Sheraton Ottawa on Sept. 17. “The reality is, it’s not as easy as it looks.” The number of breweries in the region has jumped to 15, up from two when Kichesippi was launched in 2010. That mirrors a national trend – there

were 520 breweries in Canada last year, a significant increase from the 90 that existed in 2004. Overall beer sales, however, have remained flat over the past decade. Meanwhile, foreign brews keep gaining in market share, from less than five per cent in 1994 to 14 per cent in 2014. In contrast, craft brewers still account for less than five per cent of overall sales in the province. “What’s great to see is all those numbers (of local breweries) are growing,” Mr. Meek said. “What’s great is there’s a lot more selection. The problem is that we’re just diluting it. As much as things are going in the right direction and things are going good, our customers are still telling us that we’re not always their first choice.”

Still, the craft beer business has made huge gains, with sales in Ontario soaring to more than $50 million in 2014 from $11.8 million in 2009. Ottawa was “definitely behind the times” early in that trend, Mr. Meek said, but has made great headway in recent years. But he said as frothy as the beer business might look to outsiders, it is laden with pitfalls for brewers who don’t do their homework. “This is a sexy industry,” he said. “It’s a fun industry. What happens is people wanting to come into the game, they look and they go, ‘Hey, when I see you guys, you’re at a trade show, you’re at a restaurant, you’re having a beer. This looks like fun.’ They don’t see supply issues, they don’t see the taxation issues, they don’t see the wastewater issues – all

and present:

Kichesippi owner Paul Meek. PHOTO PROVIDED

those things that are not the sexy part of it. Competition is a good thing, but we need to make sure that those coming into the game continue to make good product.” Even then, just brewing a quality beer isn’t enough, Mr. Meek added. “You need to have a good product, but can you bring it to market in an efficient manner?”

and

present:

Mayor’s Breakfast Series MAKING CHANGE: LEADING THROUGH COURAGE AND CONSCIOUS CHOICES

A unique opportunity to enjoy breakfast with His Worship Mayor Jim Watson and hear from business and community leaders about issues critical to Ottawa. Guest Speaker: Jeffery L. Orridge, Canadian Football League (CFL), Commissioner

Sandra Hanington

Thursday, October 15, 2015 Location: Ottawa City Hall Registration: 7:00 am Buffet breakfast: 7:30 am Presentation: 8:00 am

President & CEO of the Royal Canadian Mint

Thursday, October 1, 2015 7:00 am - 9:00 am

Sheraton Ottawa Hotel –150 Albert St., 2nd floor- Rideau Room Corporate Tables of 8 with Signage $210 + HST (Members) $315 + HST (Non-Members)

INDIVIDUAL TICKETS: $35.00 + HST (Members) $50.00 + HST (Non-Members) CORPORATE TABLES OF 8 WITH SIGNAGE: $245 + HST (Members) $350 + HST (Non-Members)

Audio-Visual Rentals Locations audio-visuels

E-mail info@ottawabusinessevents.ca to receive weekly updates on all our events.

OBJ.CA

E-mail info@ottawabusinessevents.ca to receive weekly updates on all our events.

MONDAY, SEPTEMBER 28, 2015

Individual Tickets: $30.00 + HST (Members) $45.00 + HST (Non-Members)

THE LIST

(Ranked by gross leasable area)

Leasing company/ Agent

Number of stores/ Vacancy rate

Parking spaces/ Additions planned?

General manager/ owner(s)

867,088 1967

Morguard Investments Ltd. Rick Johnstone

185 2%

4,758 N

Mary Knapp Morguard REIT

Sears; The Bay; Toys "R" Us; Sport Chek; DeSerres

Les Promenades Gatineau 1100 Maloney Blvd. W. Gatineau, QC J8T 6G3 819-568-1158/819-568-7592 lespromenades.com

834,000 1978

Oxford Properties Group Francis Vermette

150 WND

4,000 Y

Francis Vermette Oxford Properties Group

Simons; H&M; Forever21; The Bay; Costco

Place d'Orleans* 110 Place d'Orleans Dr. Ottawa, ON K1C 2L9 613-824-9050/613-824-0258 placedorleans.com

761,269 1979

Primaris Management Inc. Paul Crane

160 5%

3,727 N

Curtis Fortowsky The Bay; Sport Chek Supercentre; RCMP; Goodlife Fitness; Farm H&R REIT and Montez Corp. Boy

Bayshore Shopping Centre* 746,850 100 Bayshore Dr. 1973 Ottawa, ON K2B 8C1 613-829-7491/613-829-4272 bayshoreshoppingcentre.com

Ivanhoe Cambridge and Kingsett 180 Capital 8% Ulf Bergner

4,000 Y

Denis Pelletier Ivanhoe Cambridge and Kingsett Capital

The Bay; Winners; Old Navy; Sports Experts; H&M; Zara

Rideau Centre 300-50 Rideau St. Ottawa, ON K1N 9J7 613-236-6565/613-236-5728 rideaucentre.com

740,791 1983

The Cadillac Fairview Corp. Ltd. 160 Sylvie Plourde 2%

1,301 Y

Cindy VanBuskirk The Cadillac Fairview Corp. Ltd.

Nordstrom; Tiffany & Co.; Harry Rosen; Kate Spade; Michael Kors; Apple; Zara, Forever 21

Carlingwood Shopping Centre* 2121 Carling Ave. Ottawa, ON K2A 1H2 613-725-1551/613-725-9201 carlingwood.com

528,180 1956

20 VIC Management Inc. Peggy Lindsay

125 2%

2,400 N

Lucie Duguay OPB Realty Inc.

Sears; Loblaws

Billings Bridge Shopping Centre 2277 Riverside Dr. Ottawa, ON K1H 7X6 613-733-2595/613-733-7233 billingsbridge.com

490,005 1954

20 VIC Management Inc. Nat Weinstein

105 2%

1,345 N

Dora C. DiFrancescomarino 20 VIC Management Inc.

Your Independent Grocer

Gloucester Centre 1980 Ogilvie Rd. Ottawa, ON K1J 9L3 613-748-7767/613-748-3602 gloucestershoppingcentre.ca

368,911 1988

First Capital Asset Management Bruce Barrett

55 5%

1,567 Y

Gary Hurley First Capital Realty

Loblaws; Walmart; Rexall; Scotiabank; CIBC; Tim Hortons; LCBO; Moxie's

Tanger Factory Outlet Centre 8555 Campeau Dr. Ottawa, ON K2T 0K5 613-435-0850/613-435-0272 tangeroutletscanada.com/ ottawa Les Galeries de Hull* 320 St-Joseph Blvd. Gatineau, QC J8Y 3Y8 819-770-7925/819-770-5680 lesgaleriesdehull.com

316,285 2014

Gary Block John Mckinnon

75 WND

2,000 Y

Eric Topolnisky Saks Fifth Avenue OFF 5th; Polo Ralph Lauren Factory Store; Old RioCan Real Estate Investment Navy; Under Armour; Nike Factory Store Trust Tanger Factory Outlet Centers

305,000 1972

Ivanhoe Cambridge Eric Fortier

80 0%

1,286 N

Réjean Bériault Ivanhoe Cambridge

Sears; Marche Frais; La Fruiterie de l'Outaouais; Baton Rouge; Shoppers Drug Mart; Librairie Réflexion

Lincoln Fields Shopping 287,760 Centre 1972 2525 Carling Ave. Ottawa, ON K2B 7Z2 613-828-3783/613-828-7158 lincolnfieldsshoppingcentre.ca

RioCan Management Inc. Yoed Goldstein

54 12%

1,400 N

Lorne Greer RioKim Holdings (Ontario) Inc.

Metro; Walmart; Rexall; Moores

Merivale Mall* 1642 Merivale Rd. Ottawa, ON K2G 4A1 613-226-1290/613-226-8947 merivalemall.ca

224,918 1977

Avison Young Commercial Real Estate (Ontario) Inc. Bentall Kennedy (Canada) LP Bob Armstrong

61 8%

1,100 Y

Bob Armstrong 1642 Merivale Road LP

YMCA/YWCA; Sport Chek; Farm Boy

Hazeldean Mall 300 Eagleson Rd. Ottawa, ON K2M 1C9 613-592-3642/613-592-2392 hazeldeanmall.com

224,000 1979

Bentall Kennedy (Canada) LP Robert Gauthier

46 11%

1,070 N

Cindy Lavigne Hazeldean Mall LP

Laura's Your Independent Grocer; Rexall Pharma Plus

Westgate Shopping Centre 1309 Carling Ave. Ottawa, ON K1Z 7L3 613-722-3433/613-729-2089 riocan.com

165,842 1955

RioCan Management Inc. Yoed Goldstein

50 WND

900 N

Kelly Sheffield RioCan Management Inc.

Shoppers Drug Mart; Canada Post

240 Sparks Shopping Centre* 240 Sparks St. Ottawa, ON K1P 6C9 613-784-5190 240sparks.com

100,000 1977

Arcturus Realty Kevin Robertson

40 35%

450 N

Paul Jeanveaux Holt Renfrew; Pharma Plus; Appletree Medical; Les 3 Brasseurs Public Works and Government Services Canada

Property/ Address/ Phone/Fax/Web

Gross leasable area (sq. ft.)/ Year opened

St. Laurent Centre 1200 St. Laurent Blvd. Ottawa, ON K1K 3B8 613-745-6858/613-745-1272 stlaurent-centre.com

MONDAY, SEPTEMBER 28, 2015

Largest shopping centres Major tenants

WND = Would not disclose. *Did not respond to 2015 survey. Using data from previous years.

OBJ.CA

22 Should your company be on this list? If so, please send details to research@obj.ca. This list is current as of August 24, 2015 by Ottawa Business Journal. All rights reserved. This material may not be reproduced by any method in

whole or in part without written permission by Ottawa Business Journal. While every attempt is made to ensure the thoroughness and accuracy of the list, omissions and errors sometimes occur. Please send any corrections or additions by e-mail to research@obj.ca. OBJ lists are primarily compiled using information provided voluntarily by the organizations named. Some firms that may qualify for the list are not included because the company either failed to respond to requests for information by press time, because the company declined to take part in the survey or because of space constraints. Categories are drawn up in an attempt to gather information of relevance to the Ottawa market. Research by Patti Moran. Please send questions and comments to research@obj.ca.

FOR THE RECORD People on the move

insurance defence group, while Andrew Reinholdt will be with its employment law and labour law groups. Stephanie Lewis is a new member of the firm’s employment law and insurance defence groups and Adam Tracey is a recent new member of the intellectual property group.

Fuel welcomes Chris Greenfield, who is returning to the firm as president. In this role, Mr. Greenfield will lead Fuel’s expansion of digital delivery of gamification, customer rewards and loyalty-building experiences.

Pierre Killeen has joined Hill+Knowlton Strategies as vice-president of the company’s public and corporate affairs team. Mr. Killeen brings 15 years of public engagement, research and digital communications experience to the role.

Cathy Malcolm Edwards and Lois Frankel have joined 1125@Carleton. Ms. Malcolm Edwards assumes the role of managing director, providing strategic direction in collaborative research and engagement. Ms. Frankel has been appointed academic director and will help guide the company through its next phase of development as a space for engagement, exchange and innovation.

The EY Centre welcomes executive chef Jason Juarez as head of its new in-house food and beverage service team. In this capacity, Mr. Juarez will work with clients to customize food and beverage offerings for events. He previously worked as executive chef for Tulips and Maple Catering, the University of Ottawa, Rivermead Golf Club and The Lodge Bar and Grill.

Nelligan O’Brien Payne has welcomed several new members to its legal team. Ludmilla Jarda joins the firm’s insurance defence and personal injury groups. Paula Lester is now a part of the firm’s family law group. Alessia PetriconeWestwood joins the firm’s

The Ottawa Champions announced the promotion of Davyd Balloch to the position of assistant general manager. Mr. Balloch has long been active in Ottawa’s major

sports landscape, having worked in sales for the Renegades, 67’s, Rapidz and Fat Cats.

in Communications and Technology has elected its board of directors for the 201516 season; co-chairs Nichole McGill from the University of Ottawa and Jennifer Stewart of Syntax Strategic; director of sponsorship Kathryn Schwab of IBM Security; director

of communications Angela Stairs of Syntax Strategic; director of partnerships Jennifer Simpson of Telus; director of membership Kelly Rusk of Banfield Agency; director of mentorship Romy Ochmann St-Jean of Corus Entertainment; and director of events Jamie

Keeley of L-Spark. Incognito Software Systems has announced the appointment of Chris Busch as chief innovation officer. Mr. Busch will oversee the development of innovative solutions for the company while cultivating customer and partner relationships.

Norton Rose Fulbright announced that Martin Masse has joined as a partner in the firm’s Ottawa office. Mr. Martin practises commercial and regulatory law with a focus on competition, international trade law and procurement matters. He also serves clients on other federal regulatory matters including Federal Court advocacy, aboriginal law and telecommunications law. Martello Technologies has elected four new members to its board of directors at its recent annual general meeting. The new members are Colley Clarke, Bruce Linton, Mike Michalyshyn and Don Smith. Terry Matthews was re-elected chairman of the board and Niall Gallagher was re-elected as a board member. The National Capital Region chapter of Women

The Perfect Gift Every Time. Order Now! 613-721-2137

info@sweetmemoriesbaskets.com Website: www.sweetmemoriesbaskets.com

LANGUAGE COURSE EFFICIENT FRENCH COURSES WITH ALLIANCE FRANÇAISE New Sessions Start: October 13 and 26, 2015 GROUP CLASSES PRIVATE COURSES AT YOUR CONVENIENCE

23 OBJ.CA

Non-profit organisation and official language test centre since 1905.

MONDAY, SEPTEMBER 28, 2015

“Sweet Memories Baskets and Favours is a social enterprise of Y’s Owl Maclure Co-operative Centre that provides a greater range of employment opportunities for individuals with disabilities.”

SAVINGS

POWERFUL BUSINESS TIP: The greater your energy efficiency the bigger your savings.

MONDAY, SEPTEMBER 28, 2015

EFFICIENCY

OBJ.CA

Money doesnâ&#x20AC;&#x2122;t grow on trees so see how we can increase savings for your business hydroottawa.com/Upgrade

Subject to additional terms and conditions found at saveonenergy.ca. Funded by the Independent Electricity System Operator and offered by Hydro Ottawa. OM Official Mark of the Independent Electricity System Operator. Used under licence.