Ontario Home Builder Summer 2011 by Ontario Home Builder

www.ohba.ca

suMMer 2011 | $4.00

remembering david horton - an industry leader p.33

John Meinen of Pinnacle Homes

Stratford Mayor Dan Mathieson

road to code

what builDers neeD to know for 2012

p.52

open for business are municipalities becoming more builDer frienDly?

p.38 PM 42011539

absolute success Detractors saiD it woulD never be built

p.46 Get ready

to rumble let the election brawling begin

p.50

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table of Contents

33 Columns 7 one Voice By Bob Finnigan critical decisions facing builders this fall

33 Quiet industry leader Hundreds pay tribute to david Horton

17 human Capital By Denis Collins key tips to hiring honest staff

By Norma Kimmins

19 marketing By Enza Checchia selling feelings, not bricks and mortar

38 open for business

21 money matters By David Shubs risk-reward dilemmas that face builders

By Tracy Hanes

23 technology By Tim Ng How tablet pcs have transformed selling 82 outside the box By Avi Friedman new objective: build fit communities departments 9 ontario report major overhaul of the oHba website creates exciting interactive and dynamic functions 25 top shelf products and services to help you build better homes

cover photo: Yael Young

features

63 better builder succession planning/targeting moms/what it takes to be a successful entrepreneur/clean up your act 77 product focus improve sales with the right curb appeal

are municipalities more receptive to builders today?

46 absolute success

detractors said it would never be built

By Michael Collins-Williams

50 ready to rumble

a quick primer on tHe provincial election

52 road to Code

are you ready for tHe cHanges in 2012?

By Randy Threndyle and David Henderson

57 Green housing tour

builders on tHe leading edge of energy efficiency

By Michael Collins-Williams ontario home builder summer 2011

The official publication of the Ontario Home Builders’ Association Summer 2011

editor

Steve McNeill, ext. 251 steve@laureloakmarketing.ca associate editor

Norma Kimmins, OHBA art director

Erik Mohr / creativebungalow.com copy editor

Barbara Chambers / foolproof@cogeco.ca contributors

Enza Checchia, Denis Collins, Michael Collins-Williams, Michael Feuer, Carol Flammer, Avi Friedman, Tracy Hanes, Dave Henderson, Norma Kimmins, Tim Ng, Dan O’Reilly, David Shubs, Randy Threndyle photography

Danny Brizzi, Rodney Daw, Yael Young publisher

Wayne Narciso, ext. 240 associate publisher

Elaine Wiltshire, ext. 250 advertising sales

Mary Denyes, ext. 232 accounting manager

Patti Styles, ext. 243 published by

Laurel Oak Marketing Ltd.

www.ohba.ca

info@ohba.ca

Ontario Home Builder is published six times per year (Spring, Trends, Summer, Fall, Awards, Winter). All rights reserved. No part of this magazine may be reproduced without the written consent of the publisher © 2011. Single copy price is $4.00. Subscription Rates: Canada $11.95 + HST per year, USA $29.95 USD. Mail payment to: Laurel Oak Marketing, 1062 Cooke Blvd., Burlington, ON L7T 4A8 Phone (905) 333-9432 Fax (905) 333-4001

...RECYCLE D N EVER LOOKED SO GOOD!

519.855.9559 4

ontario home builder summer 2011

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one voice

Critical Decisions What home builders must do this fall By BoB Finnigan

photo: tania janthur/creativeBungaloW.com

With the warm weather finally

arriving it is officially summer, or as all of us in the home building industry affectionately refer to it: construction season. The sounds of hammers and circular-saws along with the fresh smell of sawdust bring a welcome feeling as our tens of thousands of skilled tradespersons, planners, architects and engineers work hard to create new sustainable complete communities across the province. I feel pride and a sense of accomplishment as each new home I build takes shape and it’s an especially great day when those keys are turned over to a family ready for a fresh start in a brand new home. As the nights grow longer and the dog days of summer slip towards the fall, Ontarians will be heading back to the polls for, in my view, a critical decision regarding the future of our province. Our industry experienced several strong years of growth and construction activity over the past decade as well as a sharp downturn that we are slowly pulling ourselves out from – the next few years will be

very important in determining how sustainable and strong the recovery ultimately will be. I strongly encourage members from across Ontario as well as our network of 29 local associations to get involved in the upcoming election. Be sure to reach out to candidates as provincial policies, legislation and regulations have a tremendous impact on the residential construction industry. It is important that candidates have a foundation of understanding about our industry and a few key issues that our members, and more importantly, our consumers are facing. OHBA has put together a few documents to assist in a co-ordinated approach to our advocacy efforts. We’ve updated our Effective Participation in the Political Process document and generated five simple but effective communications hand-outs that can be shared with candidates to assist in outlining priority issues and industry proposed solutions. We have more in-depth resources including the recently released Housing Issues Status Report as well as the eco-

We’re all contributing to the economy and building new communities across ontario. nomic impact booklet The Residential Construction Industry is the Engine that drives Ontario’s Economy. The stakes are high as we strive to focus our efforts on improving new housing affordability and choice for Ontario’s new home purchasers and renovation consumers by positively impacting provincial legislation, regulation and policy that affect the industry. Together, with the strength of 4,000 member companies organized into 29 local associations, we do have a respected and a strong voice. I encourage you to get involved and make your vote count on October 6. OHB

Bob Finnigan is President of the Ontario Home Builders’ Association.

ontario home builder summer 2011

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ontario report

OHBA Annual General Meeting Due to the 2011 OHBA Conference being held out of Ontario, in the Dominican republic, the Ontario Home Builders’ Association will hold its Annual General meeting on the same day as the President’s Gala and Awards of Distinction as follows: Date: Thursday, september 22, 2011 time: 2 p.m. LOcatiOn: Doubletree by Hilton Toronto Airport, 655 Dixon road, Toronto All OHBA members in good standing are invited to attend.

Soaring to new heightS 2011 awardS of diStinction

This year a spectacular, high-flying gala event announcing the OHBA Awards of Distinction winners in 36 categories will be held in conjunction with the OHBA President’s Gala at the EXECAIRE Hangar near Pearson Airport. Imagine – two fantastic, glittering events in one night!

Where:

eXeCAIre Hangar 2450 Derry road east, mississauga Vanguard Drive, Hangar #7

When:

Thursday, september 22nd, 6:00 p.m.

TickeTs:

$225.00 plus HsT (members) $275.00 plus HsT (potential members)

Or take advantage of special rates for reserving an entire table and bring along your own cheering section at the awards gala.

Table of 10:

$2,025.00 plus HsT (members)

Table of 10:

$2, 475.00 plus HsT (potential members)

Order your tickets today at www.ohbaaod.ca

ontario home builder summer 2011

ontario report

industry Winning the Green race According to a recent report issued by CHBA, Canadian housing continues to perform very well in terms of energy efficiency and reduced greenhouse gas emissions. The extensive study entitled, Energy Use and Greenhouse Gas Emission Performance in Canadian Homes Since 1990, 1990 - 2008 Update, observes that efficiency improvements have occurred in both existing and new construction. Between 1990 and 2008, some 4.4 million new homes were built – resulting in a 33 percent increase in the number of homes in Canada. Over the same period, total residential energy use grew by only 14.3 percent. While new homes are considerably more energy efficient than older homes, the impact of retrofitting and equipment upgrades in the older stock

ontario home builder summer 2011

has been considerable. Greenhouse gas emissions from Canadian homes during the period rose by only 0.3 percent, in sharp contrast to increases in many other sectors of the economy including the commercial/ institutional building sector, which grew more slowly than housing, but saw its greenhouse gas emissions increase by over 36 percent. There are many factors at play in the positive environmental performance of the residential sector. New homes are more energy efficient than older homes. most household appliances and fuel-fired residential heating equipment have seen significant increases in efficiency and homeowners continue to invest in improving the energy efficiency of existing homes.

Construction Lien Act Changes On October 25, 2010 the Ontario Legislature passed the Open for Business Act, 2010. The Act includes the following changes to the Construction Lien Act (CLA): • Amendment to the definition of “improvement;” • Requirement that an owner publish notice of the intended registration of a condominium; • Removal of the requirement for an Affidavit of Verification for a claim for lien to be valid; and deal with the enforcement of sheltered liens; • Definition of “Improvement” (already in force). The Attorney General has posted the following regulations that bring the remaining CLA amendments into effect July 1st. http://www.e-laws.gov.on.ca/html/ regs/english/elaws_regs_900175_e.htm

For Condominium developers/ Builders and lawyers: Condominium developers are required to publish notice of their intention to register land “described in a description that is intended to be registered together with a declaration in accordance with the Condominium Act, 1998”. Notice must be published in a construction trade newspaper, at least 5 and not more than 15 days, excluding Saturdays and holidays, before the description is submitted for approval under subsection 9(3) of the Condominium Act, 1998. Failure to comply with the notice requirement will leave builders/ developers liable to lien claimants who suffer damages as a result. Please consult with the appropriate legal staff to determine the necessary steps to be in compliance with these new legislative requirements.

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ontario report

CmhC releases updated Forecast CMHC has revised their housing forecast in their 2011 Second Quarter CMHC Housing Market Outlook. The report noted that Ontario’s economy will trail the rest of Canada during 2011/12 after leading in 2010. CMHC suggests that due to economic uncertainty, starts will range between 54,000 to 68,000 units this year and next.

CMHC Housing starts ForeCast - ontario old ForeCast

2011

56,200 2012

59,500 new ForeCast

2011

59,900 2012

61,500

Ontario Vacancy Rates

Ontario vacancy rates declined to 2.5 percent in April 2011, down from 3.4 percent last year . Brantford posts the biggest jump in vacancies while Peterborough posted the biggest decline. Vacancy rates dropped most in less expensive ownership markets. Fixed sample two-bed apartment rents grew at a faster rate of 1.9 percent in 2011.

City april 2009 VaCanCy rate Barrie CMa 4.2% Brantford CMa 2.9% Guelph CMa 3.7% haMilton CMa 3.6% KinGston CMa 2.4% KitChener CMa 2.9% london CMa 4.2% oshawa CMa 3.7% ottawa CMa 2.7% peterBorouGh CMa 3.8% st. Catharines CMa 5.3% sudBury CMa 2.0% thunder Bay CMa 2.8% toronto CMa 2.4% windsor CMa 15.5% ontario 3.3% sourCe: CMHC

ontario home builder summer 2011

april 2010 VaCanCy rate 4.7% 2.8% 4.6% 4.1% 2.2% 3.1% 4.0% 3.7% 2.4% 6.6% 4.8% 5.4% 2.9% 2.7% 12.4% 3.4%

april 2011 VaCanCy rate 1.9% 3.6% 1.9% 3.5% 1.7% 1.8% 4.7% 3.0% 1.8% 2.3% 3.6% 3.1% 2.1% 1.6% 9.4% 2.5%

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website report

online

Point & Click

Up-to-the-minute information on all things home builder. After months of hard work, OHBA now has a new home online – well, same home, but with an extensive facelift. The new OHBA.ca was successfully launched in May, featuring web-exclusive content, up-to-the-minute information and beautiful photography throughout. Everything you need to know about the Ontario home building industry can now be found online! From upcoming events to previously unpublished magazine content, the new OHBA.ca is the go-to online resource for OHBA members – or anyone interested in new home building. Head over to OHBA.ca and join our ever-growing community today!

smartphone savvy scan your way to even more content! OHB Magazine will now include a number of Qr codes throughout the print magazine to help our readers get even more out of the online experience. Download one of the numerous Qr code scanners available for your smartphone and start scanning for exclusive content. more tips, more photos, more content is just a simple scan away!

ontario home builder summer 2011

Join the Conversation Along with an increased web presence, OHBA is also reaching out to our members through the everpopular social networking sites. stay connected and receive the latest information by joining us at Facebook, Twitter and LinkedIn. You can also get more involved with our community by becoming a member of OHBA.ca or by joining our mailing list to receive newsletters and other publications right to your inbox. All the information you need to get connected can be found at OHBA.ca!

What’s a QR Code?

Qr stands for “quick response” and these little codes are showing up everywhere! By downloading one of the many Qr code scanners compatible with your smartphone, you’ll have access to online-exclusive content, such as photos, videos and extra articles. For information on how to download a Qr code, go to www.ohba.ca/qrscanner.

Welcome Home A quick look at the new OHBA.ca Big, bold photography can be found throughout the site! From inspiring custom homes to industry events, this site is designed to showcase all our industry has to offer.

Dropdown menus make navigating the site intuitive – even for online rookies.

stay connected with the homebuilding community by joining our social networking groups.

Now access more content from the magazine online. read feature articles and check out previously unpublished photographs from the current issue as well as back issues.

Keep track of all OHBA events directly on the homepage. To find out more information, register or rsVP to the event, simply click and mark your calendar!

ontario home builder summer 2011

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uniongas.com/dwhr * Savings may vary due to individual hot water use, fluctuating energy costs and installation variables. † Receive 600 kWh credits under ENERGY STAR® version 4.0 for the installation of a qualified drain water heat recovery unit hooked up to one shower stack and 1,200 kWh credits when hooked up to more than one shower stack. Total electricity requirements under ENERGY STAR® version 4.0 are 400 kWh credits. TM EnerSmart is a trade-mark of Union Gas Limited. © Union Gas Limited 2009. 05/2009 UG20090089

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human capital

Honest Hire

Key tips for selecting trustworthy staff Denis Collins is author of Essentials of Business Ethics.

By Denis Collins

photo: stephan John/istoCKphoto.Com

It’s not just hard finding good

help these days – it’s hard finding honest help too. According to recent polls, approximately 75 percent of all employees steal from work in some way. What’s worse is that about 30 percent of all corporate bankruptcies are a direct result of employee theft. With the problem so widespread, many companies simply factor those losses into their yearly projections and then hope it’s not worse by year’s end. The solution? Simply hire better. Although it may seem complex, one hedge against employee theft and fraud is to redesign the hiring process to help screen for employees who suffer from “selective integrity.” After an employer fires someone for theft, the natural question they ask is, “How’d we even hire that guy?” By changing your hiring practices, you can screen out people who are more likely to steal and reduce

the number of times you ever have to ask yourself that question again. Here are a few tips for managers who screen new job candidates:

at a previous job to someone stealing, engaging in sexual harassment or cutting corners at the cost of high ethical standards. Ask them if a superior ever requested that they do

by changing your hiring practices, you can screen out people who are more likely to steal. Obey LegaL grOund ruLes

While there are many questions the law forbids you to ask job candidates, there are still many questions you can ask.

something unethical and, if so, how did they react. Even those who are dishonest with their answers can reveal how they feel about ethics in general.

revIew behavIOuraL InfOrmatIOn

Behavioural information can be gathered about job candidates through resumes, reference checks, background checks and some basic integrity tests that quiz candidates through “what would you do” - type situations. Many candidates may object to these as employment requirements, but in a world in which seven percent of our entire economy goes up in smoke from employee theft and fraud, companies should not feel shy about drawing a line in the sand. While those who refuse to take those tests may not have anything to hide, it’s clear that those who agree to those tests have nothing to hide. Ohb

use ethIcs-based IntervIew QuestIOns

Web link

Too many interviewers gloss over questions that test an individual’s character. Ask the candidate how he or she responded

For instructions on how to download a Qr codE rEadEr, plEasE sEE pagE 14. www.ohba.ca/qr-exclusive-001

Use your QR code reader on your smartphone to read more online.

ontario home builder summer 2011

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marketing

Hamilton-Halton Home Builders’ Association’s award-winning model in 2011 that was designed for Empire Communities by Decorenza.

Model Homes

enza Checchia is the President of Decorenza and chairs the Design/Decor Committee at BILD. www.decorenza.com

Create the right tool for your sales team By Enza ChECChia

photo: CourtEsy dECorEnza

Once you determine that you

will have funds and resources to build a model home, what should you do next? Get your team together! That means bringing your sales and marketing people into the same room as your designer or stager. Conduct a brainstorming session that allows everyone to contribute in establishing a clear picture of who your potential buyer will be. The information gathered from a collective team approach is invaluable and any good designer or stager will appreciate it. This information will play a key role in the designer making the right design and decor decisions for your model home that will resonate with potential buyers. The model should reflect, engage and motivate your potential buyers to buy, buy and buy. Don’t be talked into

overspending and overdressing a model home with expensive luxury finishings that are not reflective of your buyer. You run the risk of losing a potential buyer because over-

not as interested in selling your homes as they are in showcasing their design talents. There is no place in new home sales for showcasing anything that does not ultimately lead to sell-

the model should reflect, engage and motivate your buyers. doing and overspending will intimidate them and leave them feeling that the home is out of their league, much like the feelings experienced with a pretentious salesperson at a high-end retailer. If your designer is not open to this exchange of information and is not willing to collect and utilize this valuable input from your front line, then it is a good indicator that he or she is

ing homes. The only barometer for a successful model home is whether there are sales made after the unveiling. This is not to say that the models will sell out the site, but rather, the salespeople have an advantage that they would not otherwise have without a model home. Following up with the salespeople a few weeks after the unveiling of the model should

reveal an increase in traffic and a higher number of serious buyers. Comments I have heard from salespeople that are worth their weight in gold include: “Buyers love the home so much they don’t want to leave, so I have more time to build their trust and get closer to papering the deal.” I know I have succeeded when they say things such as, “My customers said they can totally see themselves in the model exactly as it is” and “They know someone who knows their lifestyle put the model together.” So what does that mean? Well, it means the vision has been created and the emotion of seeing themselves in that home has been established and we all know that’s what we are really selling – the feelings, not the bricks and mortar. OHB

ontario home builder summer 2011

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money matters

Playing to Win

Pros and cons of entering an existing marketplace or building a new one By DaviD ShuBS

photo: Erik Mohr / crEativEBungalow.coM

Steve Wozniak and Steve

Jobs (Apple) are credited with inventing the first computer for home use. They created massive personal wealth for themselves as well as a more than trillion-dollar-per-year industry. Michael Dell (Dell Computers), Bill Gates (Microsoft), Mark Cuban (Broadcast. com) and Mark Zuckerberg (Facebook) are a few of the billionaires created directly as a result of the advent of personal computers. In the 1940s, Meyer Lansky had a vision of an oasis in the desert. In 2004, 60 years later, spending in Las Vegas reached $33.7 billion. Kirk Kerkorian (MGM-Mirage), Sheldon Adelson (Venetian) and Steve Wynn (Wynn/Encore Complex) are among the billionaires who now own Las Vegas property and are reaping the

rewards of the Las Vegas that Lansky envisioned. So, is it better to work in a marketplace that already exists, or to create a new one? This is a risk/ reward question and a matter of first-mover advantage.

David shubs is with CIBC Wood Gundy in Toronto and can be reached at david.shubs@cibc.ca. His views do not necessarily reflect those of CIBC World markets Inc.

that marketplace. If the risks are misjudged or the funding is not sufficient, it will likely fail. In a capital-intensive arena like building, this can have the power to cripple a business. When the first mover is not

For a company to have a successful first-mover advantage, it needs to be well capitalized. First-mover advantage refers to the first significant company to move into a market (not necessarily the first company). In order for a company to have a successful first-mover advantage, it needs to be well capitalized and understand both the risks and rewards of

able to capitalize on its advantage, this may create an opportunity for competitors to gain a second-mover advantage. They can learn from the mistakes made before them and potentially buy quality assets, with pieces of an already-built infrastructure at

bargain prices. The stakes for building a marketplace are high, as are the rewards. If you want to create this market, there will be many watching and willing to pay up for a piece of the success. They will also be very happy to pay down in the case of a misjudgment. The billionaires mentioned earlier can attest that the return from working in a marketplace that already exists can be quite lucrative. What they have avoided are the dollars, time and effort required to create a new market. Someone else has aleady taken on that cost. The revolutionaries who successfully built a market are world changers, but history may show that visionaries who participate in these already established markets have fared better. OHB

ontario home builder summer 2011

technology

Tapping into New Home Sales

Interactive tablet PCs transform the selling process by TIm Ng How do you know when

technology is at its best? When it is so good at what it does that you forget it’s there altogether – which is exactly what’s happening with the advent of tablet PCs. No longer considered a novelty item, tablets such as the Apple iPad, BlackBerry PlayBook, Motorola Xoom and Samsung Galaxy Tab are now seen as game-changing companion tools. The more that we get comfortable with the taps, swipes, pinches and flicks that drive them, the more they are changing the way we work, especially when it comes to engaging customers. Imagine visiting a new home sales centre where sales representatives are equipped with the latest tablet. Instead

of awkwardly glancing over someone’s shoulder to view a computer screen or f lip through static images in a glossy brochure, you’re shown a stunning three-dimensional virtual tour of your dream

When you ask about area amenities, the sales representative simply taps on an interactive site map, quickly pulling up nearby restaurants, shops, schools and other services. When you’re having

imagine visiting a new home sales centre where sales representatives are equipped with the latest tablet. home or condo on a tablet, complete with 360-degree interior and exterior spins. No matter how the device is rotated or turned, the image automatically adjusts.

trouble deciding between two floor plans, there’s no need to flip back and forth – the tablet displays both side-by-side. Applications available for tablet computers are designed

Tim Ng is a Partner at ADhoc – real estate Visualization studio. www.adhocimc.ca

to assist the sales process. They build on the digital environment of wall-mounted interactive touchscreen displays, offering a more personal focal point that is collaborative, informative and versatile. Most tablets are equipped with advanced wireless capability and 3G connectivity, making it easy to access corporate information systems or the Internet. Depending on how transparent a builder chooses to be, it’s even possible to display real-time availability of inventory so that purchasers never have to hear, “Let me see if that’s still available.” More importantly, a tablet PC effectively removes the “disconnect” from the entire sales process. OHB

ontario home builder summer 2011

ace idea Pllders i for buv ators o n e r &

toP shelf

SawS with choice and Speed

Consumer choice is perhaps the most apt phrase to describe Porter-Cable’s recent launch of two reciprocating saws: one with an orbital action and one without. Both provide the speed required for tough jobs such as cutting metal and masonry, says the manufacturer. Powered by a 7.5 AMP motor, the non-orbital PC75TRS is equipped with a tooled shoe adjustment which provides easy depth modification, plus a twist-lock blade clamp for fast and effortless blade changes. It is also designed for demolition work where final cut quality is not a major concern. This model has a tool-free shoe adjustment. Other features include a two-finger variable speed trigger and a six-foot-long rubber cord which provide durability and flexibility in cold weather. www.portercable.com bridging deVeloper needS

The BRIDGE Group at Robins Appleby & Taub LLP was initially established several years ago to address the recent recession. With the economy back on track, it has evolved into a group of legal professionals headed by Leor Margulies and Sheldon Goodman which provides expertise to help acquire, structure, develop, finance and sell joint venture real estate projects, particularly residential condominium developments. BRIDGE takes a holistic approach to development issues, utilizing experts in real estate, litigation, tax and business law. www.robinsapplebyandtaub.com

hard-wearing tileS are flexible

Extraordinarily light with a thickness of just three millimetres, Slimtech tile slabs give builders, renovators and architects a fast and inexpensive option for dressing up any area of a home or condominium unit. Flexible and versatile, they can be installed on ventilated walls or applied to dividing walls, cupboard doors, cupboards, doors, kitchen work counters and the top of bathroom furniture. Existing surfaces do not have to be removed or demolished. The tiles can be cut on site using glass cutters, diamond discs or a hydrojet cutting machine. www.ceramichelea.com More power leSS Shock

Although they’re essential on most construction sites, rotary hammers can take a physical toll on tradespeople after years of use. DeWalt has launched a new line of three heavy-duty SDS rotary hammers designed to provide maximum performance, jobsite durability and increased comfort. They are equipped with a shock mount rear handle system that reduces vibration up to 50 percent compared to the manufacturer’s existing lines. Each hammer has its own unique features and two are compatible with a dust extraction system with a HEPA filter. www.dewalt.com

ontario home builder summer 2011

top shelf

break-Through Nailer

A new 15 gauge finish nailer is being heralded by tool manufacturer Bostitch as offering breakthrough features that will make the work of trim carpenters easier and more productive. Weighing only 4.15 pounds, the magnesium-constructed N62FNK-2 has been designed for applications such as installation of moulding, door/window casings, trim, hardwood flooring, solid hardwood flooring and advanced woodworking. Just one of its innovations is a rear exhaust which directs air away from the user and eliminates blowback. Other features include a dust blower and an integrated LED light. The tool’s weight and balance are also complemented by an over-moulded grip to maximize comfort and minimize fatigue during overhead applications or prolonged use. www.bostitch.com Corded for power porTable paiNT

A new and innovative container from the Keane Corporation reduces the time painters have to climb up and down ladders for refills, plus allowing them to concentrate more on the job at hand and worry less about spills. Easily portable thanks to a large carrying handle, the PaintSmart Trayz can hang vertically on an extension latter or horizontally on a stepladder. The reservoir has two sides and holds up to two quarts of paint. Other features include hooks for brushes and slots for rollers which permit the paint to easy flow back into the tray. There is also a twist cap drain spout to pour excess paint back into the can. www.paintsmart-trayz.com

Bosch has just rolled out a corded oscillating multi-tool which it is calling the new generation in this product category. Rated at 2.5 amps, the MX25E has been designed to reduce the tedium and effort in time-consuming and tiring jobs such as flush-cutting, plunge cutting, sanding, grinding, grout removal and scraping. Weighing only 3.3 pounds, its compact size makes it ideal for working in tight corners and tackling projects that can’t be accomplished with other tools. It uses a 12-point accessory system and features a variable speed system. An adaptor for competing manufacturers’ attachments is also available. www.boschtools.com

TighT spaCes, No problem

Cutting rigid copper and other materials in small, cramped or tight spots is never an easy task. With the compact and easy-to-use LENOX tight spaces tubing cutter, however, the work has become a lot less onerous. It only requires a half-inch clearance to make a cut and there are bright coloured arrows which clearly indicate which direction to turn the cutter. Other features include a grooved cast aluminium non-slip grip which ensures secure handling in cramped and potentially damp spaces and stainless steel interior components that won’t rust if exposed to moisture. Available at plumbing, electrical and construction outlets, the cutter comes in half-inch, threequarter-inch, and one-inch sizes, as well as a storage kit containing all three. www.lenoxtools.com

ontario home builder summer 2011

Everything you need to know about weatherproofing, you learned in kindergarten.

Start S

m — Rem e m b e r art flashing the s and t ape. Visit ty par.com . And the same lesson applies today for your homes. Complete protection from rain, snow, sun and high winds is elementary with the TYPAR® Weather Protection System. With TYPAR weather-resistant barriers and a 10-year limited warranty, you can start smart all over again. 1-800-284-2780

top shelf

A drAin with styLe

Sleek and versatile, the brand new Keri-Line linear drain from Schluter Systems is an elegant low-profile alternative to traditional shower drains and allows builders to offer buyers an interesting array of design opportunities, including wheelchair-accessible showers. Featuring an adjustable brushed stainless steel grate frame in an elegant square trim design to accommodate a range of tile thicknesses, the drains are easy to install. They can be located near walls to create a more aesthetic appearance, as well as being out of the way. Another major benefit is that shower floors can be built with a single slope so larger format tiles can be used. www.schluter.com

Let there be Light

Everyone needs at least a couple of flashlights, especially tradesmen and labourers. Apart from the fact it provides very good illumination, the Ryobi Tek4 LED worklight has been designed to withstand the tough conditions inherent on any new home construction site. Powered by a four-volt Lithium-ion battery, it is impact, dust and water resistant. It also has a number of advanced features including a variety of mounting options, six ultra-bright white LEDs and a 90-degree adjustable lamp assembly. Other features include an integrated magnetic mount and an accessory mounting plate for non-ferrous surfaces. The light is available exclusively at Home Depot. www.ryobitools.com

new brighter worLd Free oF smoke

Outdoor kitchens are fast becoming a popular household luxury item, but the proper ventilation of smoke and odours, which can accumulate in these spaces, is just as important as it is indoors. Air King’s new Model P1848 series of professional range hoods automatically start when an internal thermostat detects that the heat level has risen to an excessive amount. With a 48-inchwidth they can fit over most grills and have also been designed to withstand the elements. ETL listed for damp locations, they’re constructed of 304gauge stainless steel that won’t discolour over time. Other features include easy-to-clean, dishwasher-safe baffles which capture grease and debris and three dimmable 45-watt maximum halogen lights to illuminate the cooking surface. www.airkinglimited.com

ontario home builder summer 2011

Daylight from above is an essential, cost-efficient element that transforms conventional rooms into splendid spaces while reducing the need for uninspiring electrical lighting. VELUX Canada is launching a new builder program that will assist builders to optimize their use of daylighting and natural ventilation through the roof. The program offers: free computer daylighting modelling; onsite installation training; model home skylight discounts; and enhanced in-home warranty support. The program can be tailored to the builder’s needs. Contact Russell Ibbotson at 416-712-2864. www.velux.ca

Jones DesLauriers Insurance Management Inc. is a leader in providing builders insurance solutions. We recognize the insurance challenges builders face today and offer competitive rates and the most comprehensive coverage available in today’s insurance market.

Marz Homes and Jones DesLauriers Insurance Management Inc. represent generations of professional excellence coupled with the drive, sophistication and creative intelligence to lead our respective industries. “We partnered with Jones DesLauriers due to their outstanding reputation within industry circles as a knowledgeable homebuilders’ insurance broker, who understands the plethoraof insurance challenges facing the industry. We now have the most comprehensive and affordable insurance protection for all our operations.” – CAMERON BAILLIE, CFO, MARZ HOMES

1.877.232.9996 jdimi.com/builders

/JonesDesLauriers @360risk

top shelf

Five-in-one-compressor

Working conditions for roofers, trim carpenters and other trades requiring compressed air promises to be a lot easier and more productive with the new RIDGID Tri-Stack 5-gallon air compressor. An innovative design allows the compressor to be used in five different configurations. For example, the tanks can be separated from the motor for easy transportation and then easily reassembled on the jobsite. Working together, the tanks and motor can achieve maximum efficiency, such as operating two nailers at the same time. Another application would be to remove the compressor from the tanks and store it in another room to reduce noise when nailing. An air hose can connect the two components over long distances and the pressure will remain consistent, says the manufacturer. The tanks can also be filled with air and used independently for small tasks. www.ridgid.com soFtening hard water

designed For builders

Treatwater Canada offers products that conserve both water and energy and avoid salt being flushed into the waste stream and water table. Manufactured by Fluid Dynamics in the U.K., this catalytic conversion technology has been proven in 35 countries, since 1973. Now available in Canada, through Treatwater Canada, the “housetron” is plumbed in-line, in less than one hour and at two-thirds of the cost of a standard salt-based water softening system.

For the homeowner, especially the first-time buyer, the decor selection process can be an overwhelming and tedious process. Decorative Interiors has the expertise to know what your purchasers are looking for and can show them how easy it is to create the home of their dreams. Offering a “pain free” process, Decorative Interiors is helping homebuyers enhance the way they spend time in their home. Decorative Interiors has a number of home builder services that include: pre-delivery inspections; the designing of homeowner manuals and pricing guides; interior design and home staging. www.

www.treatwatercanada.com

decorativeinteriors.ca

Faucet can be customized

Builders searching for stylish, yet practical fixtures to showcase their model home kitchens might want to consider the Elevate faucet from Price Pfister. Intended to eliminate the age-old problem of trying to fill extra tall pots in sinks, the faucet features an adjustable 360-degree spout which allows users to customize the height. Designed to complement both contemporary and traditional kitchens, the faucet is easy to install. It can be mounted with a deckplate for a four-hole configuration and without a deckplate for a two-hole configuration. The Elevate is currently sold exclusively at Lowe’s. www.pfisterfaucets.com

ontario home builder summer 2011

NEW HOME DEMANDS – DEMAND TANKLESS TECHNOLOGY New home buyers expect all the latest and best amenities. And new homes that feature multiple bathrooms, elaborate kitchens and laundry facilities add up to a big demand for hot water. A Rinnai tankless heater will supply endless hot water to multiple needs simultaneously. Plus they’re capable of delivering up to 97% thermal efficiency – saving both energy and money. Compact, light weight and space-saving, tankless heaters are simply mounted to the wall, using a single concentric vent. It’s that easy. New homes demand the best. And for quality, capacity and efficiency, Rinnai is the answer. For more information: call 1-888-571-2627 or visit www.redmondwilliams.com.

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Celebrating the life of david horton

It was an afternoon to remInIsce and cry a lIttle – but mostly to celebrate a lIfe well lIved.

photos: Rodney daw

David Horton, Executive Director of the Ontario Home Builders’ Association, died on May 1, 2011 and members of Ontario’s housing industry, politicians, civil servants, the media, former high school colleagues and a multitude of friends and family came together on June 22 for an afternoon to share stories and honour the dedication, service and contributions of David’s remarkable life. The celebration of David Horton was held on June 22 at the Prince Hotel in Toronto – a hotel very familiar to David and OHBA members as many OHBA events and meetings have been held at the venue located just a short walk from association offices in North York. Attendees noted some of the highlights of David’s stellar career with the association and industry including his induction into EnerQuality’s Hall of Fame earlier this year. Renowned as an outstanding organizer and skillful communicator, he organized OHBA conferences in communities across the province, elevated and enhanced the organization’s advocacy work on behalf of the industry and Ontario homebuyers, and made hundreds of friends along the way. A number of OHBA Past Presidents spoke

of their experiences working with David, noting his commitment to the association, his mentoring skills and how they got to know him while driving him around the province on visits to local associations (David was a staunch TTC’er who never got a driver’s licence). To further honour David, OHBA President Bob Finnigan announced the establishment of the “David Horton Leadership Award” that will recognize exceptional achievement from deserving staff at the local, provincial or national associations. David Horton was OHBA’s Rock of Gibraltar, its spirit, its determination and its driving force. We have lost a great man who was a wonderful, supportive friend to so many people and we, and his multitude of friends and family will miss him dearly. ontario home builder summer 2011

People were asked to submit three words that they felt best described david horton. here’s some of what contributors had to say…. To honour David, the OHBA Executive and Board, has agreed to establish the “David Horton Leadership Award” that will recognize exceptional achievement from deserving staff through our local associations or the provincial or national level. One of the words we have heard frequently from EOs from across the province, is how they felt David was a mentor to them. The David Horton Leadership Award will be a wonderful legacy – a reminder of David’s valuable contributions to our associations and our industry.

Bob Finnigan, President Ontario Home Builders’ Association

Was my mentor

Denise Lafond, Sudbury

Sensitive, Supportive, Sincere

Aggie Tose, EO, Haliburton County HBA and Chair, OHBA Executive Officers Council

Honest, Honourable, Humble

Hon. Rick Bartolucci, Ontario Minister of Municipal Affairs and Housing

Kind, Generous, Dedicated

Lorraine Stratton, EO Peterborough and Kawarthas HBA

Gentleman, Gracious, Tactition

John Herbert, EO Greater Ottawa HBA

Mentor, Integrity, Caring

Nineteen OHBA Past Presidents joined OHBA current President Bob Finnigan with a thumbs up following a memorable and inspiring afternoon celebrating the life of David Horton.

ontario home builder summer 2011

Douglas W. Stewart, MCIP RPP Associate

Dedicated to OHBA. Respected by his peers. Appreciated for his efforts.

Hon. Dalton McGuinty, Ontario Premier

David was a wonderful man who worked tirelessly on behalf of the OHBA and its members for 25 years. I admired him very much for his great courage, kindness and dedication to the people he served.

Tim Hudak, MPP, Ontario PC leader

Someone very special who will always be remembered.

Andrea Horwath, MPP, Ontario NDP leader

I remember David with great fondness, especially during my term as Minister of Housing. He always presented himself as a man of great personal integrity, good-natured and with a witty sense of humour. He always spoke with great passion and conviction about the needs and successes of the home building industry in Ontario. He will be missed by many for his good counsel and wisdom. John Gerretsen

(former Minister of Municipal Affairs and Housing)

david’s words of wisdom

If you want to know your values, look at what you’ve done today. 90% of what you worry about never happens. There is no free lunch at OHBA. Here’s your hat, what’s your hurry! There is no job too big or too small.

Dr. Alvin Curling, former Minister of Housing, George Smitherman, former Deputy Premier and Minister of Energy and Infrastructure, Steve Paikin, host of TVO’s The Agenda and OHBA Past President Hugh Heron.

ontario home builder summer 2011

OHBA President Bob Finnigan, TVO’s Steve Paikin and Carlton Aylett look at some memorabilia from David Horton’s 25-year career at the provincial association.

David was a giant in the housing industry….very professional, very friendly and very dedicated to his industry.

Hon. Steve Mahoney, Chair WSIB

I first met David when I was Minister of Consumer and Business Services….and I knew right away I was dealing with a man of great integrity and honour and someone whose word could be trusted.

Jim Watson, Mayor of Ottawa

“Massive Leaf fan.” That’s how I’ll remember him. Every time we got together, he loved to talk about the team.

Steve Paikin, Anchor and Senior Editor “The Agenda with Steve Paikin”

Web link

Use your QR code reader on your smartphone to read more online. For instructions on how to download a Qr codE rEadEr, plEasE sEE pagE 14. www.ohba.ca/qr-exclusive-002

ontario home builder summer 2011

I have never worked with someone who does not come from a builder/ developer background who has been as loyal, dedicated and committed to our industry as David Horton. In addition to his many years of outstanding service to the industry, he was a wonderful individual and it has been my honour to work with him and call him my friend.

Mark Basciano, OHBA Past President, Mountainview Homes

I was always impressed by how David ran OHBA. It didn’t matter who was President, he was in the background, always in control of the situation, ensuring everything was prepared in order to get the message across. I was always well prepared thanks to David.

Frank Giannone, OHBA Past President, FRAM

Dedication, Loyalty, Class

Danny Gabriele, OHBA Past President, Marz Homes

The best of the good guys

Hugh Heron, OHBA Past President, Heathwood Homes

A friend who knew the song in my heart and could sing it back to me when I’d have forgotten the words.

Albert Schepers, OHBA Past President, GS Engineering Consultants

True, Loyal, Kind

Rob Cooper, OHBA Past President, Alterra Group of Companies

Considerate, Insightful, Engaged

Brian Johnston, OHBA Past President, Monarch Corporation

Bigger than Big!

James Bazely, OHBA Past President, Gregor Homes

Strategic, Friend, Mentor

Peter Saturno, OHBA Past President, Midhaven Homes

Ontario’s best kept residential development secret.

Located where the Welland Canal connects to Lake Erie, Port Colborne offers excellent opportunities for new residential multi-unit waterfront projects, and house construction in several recent developments. With miles of lakefront shoreline, canal-side shopping and dining, yearround recreational amenities, thriving

marina and beaches, Port Colborne offers a lifestyle that’s second to none.

In a growing region of over 430,000 people just minutes from the Canada-U.S. border and a short drive to the Greater Toronto Area, Port Colborne provides all the necessary ingredients for successful residential development projects. We’re ready to help make your residential development a reality in Port Colborne. Give us a call today.

To learn more please contact: Stephen Thompson, General Manager & Director, Economic Development, Tourism & Marketing, City of Port Colborne • 905.834.1668 ext.238 • stephenthompson@portcolborne.ca

photos: yael young

ontario home builder summer 2011

for business Are municipAlities more receptive in the drive for economic development? By Tracy Hanes

Port Colborne Mayor Vance Badawey says his city is experiencing unprecedented infrastructure investment.

Often it seems that the relationship between builder and municipality is “us” versus “them,” especially when steep development fees, seemingly endless red tape and long delays for approvals are involved. But many municipalities are making a concerted effort to better serve builders. It’s not always easy, with the province mandating density targets and designated growth areas, infrastructure servicing issues, and many official plans going before the Ontario Municipal Board. Here are some officials’ takes on the builder-municipal government relationship and what their particular municipality is doing to encourage building and development. ontario home builder summer 2011

CALEDON

The Town of Caledon has been predominantly rural in nature, attracting affluent Toronto expatriates in search of country homes. It’s made up of a collection of small villages and hamlets, with Bolton the largest community. But with the town’s population of 57,000 set to burgeon to 108,000 by 2031 and almost 50,000 new jobs forecast, Mayor Marolyn Morrison says the town is planning growth to accommodate industrial and residential growth. The town is working to streamline its development process and is testing a fasttrack system for standard building permits. The town’s project manager is developing a client-centred business model. Permit approvals and plans of subdivision take about three years from submission to subdivision registration. Development fees are $18,458.92 for a single detached unit.

GUELPH

The City of Guelph has prepared Prosperity 2020 – Strategic Directions for Economic Development and Tourism, which establishes the city’s strategic framework for supporting new investment. Consistently ranked among the top 10 places to live in Canada, the city is located in one of the strongest economic regions in the country, is rich in culture, architecture, parks, green spaces and events. It projects that it will have a population of 175,000 and 92,000 jobs by 2031. Development charges have increased from $10,305 in 2006 to the current $23,021. Going forward, the city believes it is being pro-active in working with residential developers who are proposing to redevelop current brownfield, infill as well as former industrial properties.

HAMILTON

Recently, the Real Estate Investment Network, a leading real estate research organization, ranked Hamilton number one in its latest report on the top Ontario cities and towns for real estate investment. Last year was a record-breaking year with the city’s building permit activity reaching $1 billion in construction value. The city has set up a liaison committee 40

ontario home builder summer 2011

with the Hamilton-Halton Home Builders’ Association (HHHBA) and that relationship has been critical in improving and streamlining processes. It has also introduced an online permit application service. The city is currently developing, with the HHHBA, a standardized review process for single family dwellings. Most subdivision plans are processed in 120 days. Recent increases in development fees range from $11,434 for apartment units to $27,017 for a detached home. The city is encouraging a full mix and range of housing types and densities. The Urban Hamilton Official Plan contains targets for affordable ownership and rental housing. Second dwelling units (accessory apartments) are permitted within all single and semi-detached dwellings in the urban area subject to zoning requirements and affordable housing is considered first for disposal of any surplus city-owned lands.

NORTH BAY

The creation and adoption of a new official plan and the subsequent servicing of new residentially-designated lands through a municipal infrastructure improvement program is expected to open up new opportunities for residential development. Municipal leaders and senior staff meet with the development community biannually through the Developers Liaison Advisory Committee (DLAC) to discuss their needs and concerns and to adjust the city’s policies and programs accordingly. The city also created the Development Application Review Team (DART) which is comprised of representatives from all internal city departments and from many external organizations. DART meets every two weeks to review development applications including plans of subdivision, site plan control agreements and official plan and zoning bylaw amendments. By getting everyone at the same table to discuss the development, city officials say they have significantly streamlined the approval process and ensure that everyone is on the same page moving forward.

OTTAWA

Ottawa is investing in transit infrastructure and street rehabilitation projects in the downtown core to improve transportation reliability and build upon neighbourhood distinctiveness (e.g. Little Italy,

building tips Buy beyond the greenbelt. Absorption is slower, but there are lower land costs, reduced development fees. “What’s wrong with selling 100 homes a year?” says BILD Chair Paul Golini. “Be realistic.” • Look for areas that have indications of promising job and economic growth (eg. Big box stores moving in) as well for areas where GO and transit will expand • Look for infill opportunities in already developed communities – eg. a smaller parcel between two larger builders • Develop a portfolio of land that will come to fruition over different time periods – short term (one to two years), long term (five to 10 years) and even longer term • Do your research. understand the local municipality’s approval process, be aware of possible environmental considerations and if the local community is tolerant of new development • Look into partnerships with other developers to acquire sites or to build on lots they may have. • explore infill opportunities and consider higher density housing forms, such as stacked townhouses, midrise condos, etc. • remember that when interest rates start to climb, more people tend to move to where they can afford homes, which is an advantage for builders in outlying areas

the Glebe, West Wellington). Through an updated zoning bylaw the city is promoting intensification and infill housing. City officials say they are pursuing transit-oriented development along the major transit corridor as a means of activating underutilized properties and encouraging residential development within Ottawa’s core urban area. On the building code services side, Ottawa has implemented an online applications process whereby production builders are able to submit their building permit applications. Following an OMB hearing that was initiated by the Greater Ottawa Home Builders’ Associaton, 850 hectares have been opened up to development within the city’s urban boundary. With the city’s population expected to grow from the current 923,000 people to 1.13 million by 2031, the OMB hearing is less of an example of how a municipality is supporting housing affordability and choice, than a clear example of

how the industry has advocated positive progressive housing policy to respond to a growing population and employment base.

OWEN SOUND

Owen Sound’s new economic development strategy supports the retention of existing businesses and manufacturers and promotes Owen Sound as a place “where you want to live” – a small big city in the Niagara Escarpment area and on the shores of Georgian Bay. The city has been working to reduce development charges and its new Community Improvement Plan provides a variety of incentives including: brownfield, vacant land tax, as well as reduced or no development charges for redevelopment of existing buildings or sites. In an attempt to streamline its processes, Owen Sound combined building and plumbing permit applications for new houses into one process. The building permit application process provides planning and engineering reviews of site and grading plans – one-stop shopping and facilitating approvals from other agencies where necessary. Inspections are scheduled electronically and can, in many cases, be done on short notice if required, the city says. In 2009, council instituted a development charges holiday for new residential construction as an incentive during the recession, which saw development charges drop from $5,928 in 2006 to the current $3,854 for a single home. The charges are scheduled to return to $5,956 by 2013.

bread and butter has always been the single detached home and we’ve had builders hit different niches with respect to condos.” The city is in the process of carrying out secondary planning exercises and creating a blueprint for greenfields with commercial areas and medium density housing. “We have so much land that it’s going to take years for land to be taken up with singles,” says Hetherington. “We are trying to provide some policy direction as to how we see some of these greenfield areas develop.” The city is looking at financial incentives to create residential opportunities downtown and to help it meet the provincial target of 50 people and jobs per hectare. The approval process takes about five days and Peterborough has made a number of changes to streamline the process, such as adding staff dedicated only to housing. There is a one-day turnaround on most inspections. Development charges are twofold: there is a city-wide charge plus a specific area charge for each area based on the infrastructure required. For example, no new trunk sanitary sewer is required in the north end of the city so the charges won’t be as much as in the south end. Citywide charges for singles or semis are just over $9,000 per unit; townhouses about $8,000 and apartments $5,300 per unit.

PICKERING

Pickering is currently reviewing potential incentive programs that it expects will attract the type of higher density development it is encouraging in the downtown

and mixed-use corridors. The city is also working with the Region of Durham to expedite the delivery of higher order transit to Kingston Road, which will assist in attracting higher density development. The city’s building section has put in place a certified model program for lower density residential development, which allows the builders to receive city approval of the building plans associated with the identified house model types, in advance of the individual application for building permit. This process is intended to expedite the building permit review and approval process, and better accommodate the industry’s construction schedules. Projections to 2031 are approximately 225,000 population and 76,725 jobs. Seaton, Pickering’s largest greenfield development community, forms part of this growth and is anticipated to accommodate 61,000 people and 30,500 jobs by 2031.

PORT COLBORNE

In addition to hundreds of acres of developable land and inexpensive lots in infill situations or new subdivisions, Port Colborne, located at the southern tip of the Niagara Penisula along the Lake Erie shoreline and Welland Canal, has a large cachment area of 430,000 people – 390,000 of them 35 minutes away. The town itself has 19,000 people and is designated as a growth centre by Places to Grow. “We’ve got many, many opportuni-

PETER BOROUGH

Finding developable land isn’t a problem in Peterborough, one of the province’s designated urban growth areas. The city has just completed a two-phase annexation with two adjacent townships, providing abundant land for building and finalized its official plan in 2009. “We’re in really good shape, but hitting the density target is a different matter,” says Ken Hetherington, Planning Division Manager. “We haven’t seen small walk-up apartments or multi-storey (residential) buildings built for 25 years. Peterborough’s

Studying planning documents, Port Colborne Mayor Vance Badawey, right, says the city enjoys an abundant inventory of valuable serviced lands along its waterfront.

ontario home builder summer 2011

ties for whole employment and residential development. We have capacity at our water and waste water treatment plants, which have undergone millions of dollars of upgrades,” says Stephen Thompson, Economic Development General Manager. “There are a number of different subdivision areas with servicing already on the lot line and two subdivisions with lots available and ready to go with approvals in place,” says Thompson. “Getting a building permit has a turnaround time in a matter of days as opposed to weeks.” Development fees are under $10,000 per residential unit. Jobs are being created in the health, social service, manufacturing, transportation and food, and bio sectors, which are attracting residents, Thompson explains. Its moderate climate and new medical facilities also make the area, popular location among retirees and seniors. “The City of Port Colborne is in a unique position,” states Mayor Vance Badawey. “We are currently experiencing unprecedented infrastructure investment including a new $31-million recreation centre, four community improvement plans, miles of recreation trails, enhanced green spaces, including major investments in parks and recreation/programming. Our community has an abundant inventory of valuable serviced lands along our waterfront. We have set the groundwork for private sector investment which will offer the consumer the best of all worlds.”

STRATFORD

Stratford, which lies 26 kilometres outside the Places to Grow’s current boundaries, is encouraging residential and employment growth, says Mayor Dan Mathieson. The population of 32,000 is expected to enjoy steady growth to 40,000 over the next 20 years. There is a good stock of development – ready land and the city has undertaken $80 million in sanitary sewer and water upgrades in the last seven years. “That has positioned the city for more capacity and growth,” says Mathieson. Ninety percent of Perth County, which Stratford sits in, is classified as prime farmland and is among the top producing areas in Canada. “We have to be mindful of the land needed for agricultural purposes,” says Mathieson. “Intensification and land-use planning are critical for us, so we don’t take 42

ontario home builder summer 2011

Stratford Mayor Dan Mathieson and Pinnacle Quality Homes President John Meinen review plans as ground is broken for an 18-lot subdivision by Pinnacle.

productive agricultural land for development purposes.” Stratford endeavours to expedite approvals and has a site plan review committee comprised of representatives from various city departments to preview proposals in an attempt to reduce circulation time. This was the result of a joint committee meeting with members of the local building association. Development fees range from $5,230 for a bachelor or one-bedroom apartment to $13,265 for a detached home. Additional area-specific charges apply for projects in the northeast area of the city. Stratford is a popular retiree market, but Mathieson says the city is trying to bring in a younger demographic and to do that “we need to have a good mix of residential development and employment lands to attract new industry.” While Stratford still has manufacturing tied to the auto industry and is worldrenowned for the Stratford Festival, the city is attempting to diversify and wants to evolve into a centre for information and communications technology. The University of Waterloo is locating a digital media campus in Stratford and RBC is building a 400,000-square-foot data centre there. “We are told the investments we’ve made are starting to resonate,” says Mathieson. There are opportunities in downtown heritage buildings, where the city is encouraging owners/developers to make second and third floors into liveable units and is offering a tax incremental finance plan to phase in any tax increase over 10 years. Building owners/developers are eligible

for a $25,000 grant and loan program to improve the exterior of downtown buildings.

SUDBURY

The City of Greater Sudbury has taken an approach which looks at sustainability through encouraging economic development around five key engines of growth (mining, education, tourism, health services, and arts and culture) and its northern lifestyle and natural beauty. In 1995, council established a Development Liaison Advisory Committee (DLAC) in co-operation with the Sudbury District Home Builders’ Association, Sudbury Construction Association and local design professionals to provide increased interaction and communication between the then Regional Municipality of Sudbury and the development community. Development charges have been waived within the downtown to encourage residential infilling. The city has adopted a benchmark turnaround time for all building permits, a model home policy that allows developers to build up to five model homes prior to the registration of the subdivision to more effectively market the subdivision but also speed up the return on investment, pre-servicing agreements for subdivision development and a development costsharing policy that provides development charge credits for residential development facing infrastructure challenges. The city is an economically diverse community which is poised to see substantial growth

in all sectors identified in its strategic economic plan, including over $2 billion of infrastructure investment by world mining giants VALE and Xtrata. Population is expected to be 170,000 by 2021. Development charges for a single-family home were $3,079 in 2006 and $11,597 this year. Through its Growth and Development Department, the city has established a single source (one-stop) approach for developers and builders that provides for comprehensive planning act, building code, fire code and infrastructure engineering information/commentary for development proposals. Further, a “rapid response team” approach is applied for larger economically significant time-sensitive projects in which a team of experts from each specific area is mobilized and assigned to shepherd projects from cradle to permit issuance. City council is also developing a new Brownfield Community Improvement Plan, which will look at providing incen-

high demand – attractive to both the lowrise builder and the high-rise builder,” says Gary Wright, Chief Planner and Executive Director for the city. The population is expected to hit 3.08 million by 2031. Toronto does not have the water and sewage capacity issues that other areas (such as York Region) are grappling with and has the lowest development charges for low-rise and high-rise units in the GTA ($14,025 per low-rise unit, $9,040 per highrise unit) by far. The city’s official plan has been directing growth to priority areas such as the downtown, central waterfront, mixed-use centres in Scarborough, Etobicoke, North York and at Yonge/Eglinton and along avenues such as Sheppard Ave. Planning approvals for complex applications can take 12 to 18 months, while more routine proposals take four to nine months, says Wright. The city has no greenfields left, so almost all development is infill development which means there is an existing

often the relationship between builder and municipality is “us” versus “them.” but many municipalities are making an effort to better serve builders. tives to reclaim lands that are captured by the Ministry’s Environmental Protection Act.

TORONTO

Toronto’s been on a 10-year hot streak and it doesn’t seem to be cooling yet. It boasts the busiest condo market in Canada. Between 2006 and 2010, 58,217 new residential units were constructed, about 75 percent of which are condos. For the past two years Toronto has represented 40 percent of all residential completions throughout the GTA and on average, has added about 10,000-plus jobs a year for five years. “Toronto is a very attractive place to build. It is a large, diverse market with

community to work with and a sophisticated political system to work through before approval. He says Toronto is attempting to streamline development approval on a number of fronts. The city’s STAR system (Streamlining the Application Review) provides a faster, more efficient review of planning applications. Applications must be complete to qualify for the STAR process, which establishes response deadlines for circulated divisions and agencies to provide their comments to city planning on an application. The amount of review time has been agreed to by senior management in each division. Planning consultant positions have

also been established at customer service counters in each of the city’s four districts to offer information and assistance. The Building Toronto Together: A Development Guide is available online and outlines development review processes and the requirements.

WATERLOO

Waterloo has recently gone through an extensive exercise to develop a new site plan approval process that it hopes will yield faster turnaround times for simple and complex residential developments. In addition, the city says it has adopted urban design guidelines that demonstrate community expectations before an application is even made, thereby helping avoid conflicts at a later date when it is tougher to manage. Development charges have seen a relatively moderate rise from $11,000 in 2007 to $13,600 this year. Waterloo officials say the city wants a strong home building industry and is finalizing a new official plan that supports a blend of both greenfield, infill and highrise development.

WHITBY

This Durham Region town has been ahead of the Places to Grow curve in encouraging growth within existing boundaries for some time and looks favourably upon such proposals. “There’s been a decline in housing activity in greenfield development. It’s substantially less than it was in the early part of the decade,” Whitby Planning Director Bob Short says. “The big reason is land supply and market conditions and I don’t see that changing for three or four years.” A plan to make unserviced greenfield land in west Whitby available for “responsible urban expansion” (including residential and commercial) has been stalled by the region’s official plan going to the OMB. Currently, new home building continues in Brooklin and West Lynde and there is opportunity for intensification projects in town, such as Port Whitby and brownfields sites south of the 401. There are also plans to expand Brooklin’s downtown area, but that requires regional approval. OHB ontario home builder summer 2011

Land The challenges of finding serviceable building lots By Tracy Hanes In the famous poem, “The Rime of the Ancient Mariner,” the title character

laments about “Water, water, everywhere, nor any drop to drink” when his ship is stuck in the middle of the saltwater sea but there’s no drinking water to be had. Paraphrased for the current Ontario housing industry, the quote could well be: “Land, land, everywhere, nor any lot to build on.” Provincial legislative initiatives such as the Ontario Greenbelt (the world’s largest greenbelt at 1.8 million acres spanning across the Greater Golden Horseshoe to the tip of the Bruce Peninsula) and Places to Grow have constricted the supply of land available for development in many areas of the province. “Anywhere in the GTA, as well as from Kitchener-Waterloo to Barrie to Oshawa to Niagara, land supply is a problem, and in Ottawa too,” says Ontario Home Builders’ Association President Bob Finnigan. The big problem, says Finnigan is that every town and region in the Greater Golden Horseshoe was required to have official plans filed by 2009, “but all of those plans are before the Ontario Municipal Board,” which has stalled development, says Finnigan. Land that was supposed to come on stream last year or this year won’t be ready for development until 2012 or 2013, which has created a bottleneck. “It’s going to be a very interesting two or three years,” notes Finnigan. The OHBA has been holding talks with the provincial government to speed the process up and is also advocating to get the building code changed to permit wood-frame construction of up to six-storey buildings. This move would open up more opportunities for low-rise builders, allowing them to use their existing trades and opening up sites that are currently not affordable or feasible. Like it or not, low-rise builders are going to have to “get creative,” Finnigan says. Here’s how some of them are dealing with the land shortage and how they go about finding sites and some solutions they suggest.

ontario home builder summer 2011

robert miller

John meinen

President Miller Homes and President of the North Bay Home Builders’ Association

President, Pinnacle Quality Homes, President of the Stratford and Area Home Builders’ Association

Land is hard to get in North Bay, says miller, but not for the same reason it is farther south. The problem is the rocky northern Ontario landscape and the difficulty and cost of servicing lots that sit on bedrock with sewer and water. “Developers trying to develop land have a hard time and you have to blast a lot of rock,” says miller. Builders and developers tend to be separate entities in the North Bay area, with many builders sharing lots in a subdivision owned by a developer. The area’s largest builders might build 20 homes a year; smaller builders like miller construct eight to 10. miller says the best strategy for builders in his area is to encourage relationships with the developers, which are more personal than farther south. “You have to present yourself more on what you can offer to the consumer,” as there are fewer buyers than in more populated areas and stiff competition from other builders, he says.

stratford isn’t facing the same land constraints as the Golden Horseshoe; land is plentiful and available for development, says meinen. One issue that could become problematic for small builders is that large building companies from Kitchener and London are buying up large tracts around the city. “It’s up to us to find land within the city or smaller pieces,” says meinen. “I’m developing an 18-lot subdivision now. It’s not big, but it’s in an ideal location, not on the outskirts. I’m a small builder and in this economy, it doesn’t hurt my feelings that it’s only an 18-lot site. You’re not putting expensive pipe in the ground.” meinen is a custom builder who will build higher-end executive homes on that site. He says a lot of other local builders are buying infill lots and knockdowns. Builders and developers tend to be separate entities in his area. “my personal take on it is that smaller builders will have to get large or get out. It’s no different than what’s happening in any other industry,” says meinen. “It’s too bad, as smaller builders do have a unique segment of the market. You have to be diligent in looking for smaller pieces of land or infill or hope that a local developer gets a piece of land we can be part of.”

boaz Feiner Jeff Goldman Vice-President, Geranium Homes (builds in Woodstock, Port Hope, Stouffville, Big Bay, Ballantrae)

“There are three main attributes to a good community – location, product and price,” says Feiner. “In a hot market, you need one of the three. In a down market, you need at least two, if not three, to have a viable project.” Feiner says, of approximately 100 possible deals that pass his desk each month, only about two may make it to the next stage. “The industry is going through huge transformation because of the lack of available land,” he notes. “It used to be that a developer would develop lots and builders would bid on the serviced lots. Developers and builders used to be separate entities but all of us had to create our own niches.” Geranium, a builder/developer, has been building land banks for the past decade. It looks to Places to Grow as a roadmap of where growth will occur, as well as municipal planning policies and development fees. Cardinal Pointe in stouffville is the company’s “calling card” and Feiner says the town’s connectivity to markham, Highways 48, 404 and 407 had great appeal, as well as the fact big box stores were moving in. “every project takes vision,” says Feiner. “You can screw up a good project or make a bad project good. Part of our success is that we’re basically a management company – we have legal, finance, engineering staff. A lot of people getting into real estate are running into roadblocks and can’t navigate planning policies. We do some joint ventures, lending our expertise to bringing these projects to market and making them viable.

President of the Durham Region Home Builders’ Association and Durham Custom Homes (builds in Oshawa and the GTA, Midland, Muskoka) “Durham region has a better supply of land than most of the Greater Golden Horseshoe, but not an overabundance,” says Goldman, who heads up Durham Custom Homes, a 60-year-old family business. “Part of the problem is whether sites are ready to go or facing other obstacles such as capacity issues or approvals.” Goldman’s company’s long history has allowed it to compile an inventory of land (and it still has a stock of developmentready lots in its Kingsway Forest development in Oshawa) but he says a lot of builders are in a holding pattern, with 29 appeals in Durham going to the OmB. Goldman’s company builds in the GTA as well as midland and the muskokas, but those areas can be tricky as well. “You have to have some understanding of not just the approvals process, but an awareness of things that could present major obstacles such as environmental concerns, areas that have been subject to First Nations land claims, even things like existing infrastructure such as hydro corridors bordering a site,” he advises. “You also have to have an understanding of the general political climate towards development and how the local community feels about that. “In the land business, in order to survive you need deep pockets and a tolerance for risk, patience and a sense of humour,” says Goldman.

Paul Golini Greg Graham Jr. Vice-President Empire Communities (builds in Breslau, Brantford, Binbrook and Uxbridge) and BILD Chair

President of Cardel Homes, Ottawa, and Past President of the Greater Ottawa Home Builders’ Association

“either by design or by fate, we staked out large land positions in outlying areas where development has hopscotched over the greenbelt,” says Golini. “It has allowed us to have what a lot of builders don’t have – a land bank.” While Golini’s company builds condos in downtown Toronto, its low-rise projects are in outlying areas at the edge or just beyond the greenbelt. empire likes large tracts where it can build master-planned communities. Property is considerably cheaper in those areas and development charges less, says Golini. empire looks for areas that show promise for economic growth and job development. In Binbrook, 15 minutes from Hamilton and 10 minutes from stoney Creek, “we saw big box stores making investments in that area.” empire was the first builder in southwest Brantford and has built 2,000 homes in its Wyndfield development. It was a gamble, as Brantford was just emerging from economic woes of the 1980s and 1990s when several major industries closed. But companies such as a Tim Hortons distribution centre, a Ferrero rocher candy plant were moving in and a Bell mobility call centre is set to open in early 2012. “I remember coming out here and looking at our land in the first days and it was only fields. It was like ‘oh my God what have we done,’” recalls Golini.

similar to what’s happening in the Golden Horseshoe, a large 20,000-hectare greenbelt (managed by the National Capital Commission) and the local municipality’s push for intensification is restricting land supply and driving prices up, says Graham. “The greenbelt runs through the middle of the city and was created more than 50 years ago but the government has no desire whatsoever to open it up to development,” says Graham. “so development has jumped over the greenbelt and created sprawl. People are going as far away as Arnprior, Almonte and Kemptville and driving an hour to 90 minutes. They are using the city’s infrastructure yet paying taxes to smaller communities.” What’s happened over the past eight to 10 years, says Graham, is that many large building companies started coming to Ottawa and buying large tracts of land on the urban boundary, “so the majority of land is already acquired and finding a new piece is virtually impossible. Creating large builder monopolies takes away choice from the consumer and dictates price. His own company is in good shape with 600 or 700 acres, “but we’re constantly looking for land and we have a planner who looks after our land and talks to developers we can partner with.” He says builders have to look for small infill projects within the city or go to outlying areas, where builders need to work with local politicians who want to keep their small community identities.

bob Finnigan OHBA President and Executive Vice-President for Heathwood Homes (builds in Milton, Uxbridge, Brampton, Richmond Hill) Heathwood prefers large tracts of land where it can build 500home communities, but that is changing, says Finnigan. He says Heathwood has always been a Toronto/GTA builder and will continue to be. With those large sites “extremely hard to come by,” Heathwood has looked to small 50- to 60-lot sites, such as several it has in richmond Hill. The company looks for sites that have distinctive natural features such as ravines or woodlands, where it can create a sense of community. Two of those sites, the reserve at the Woodlands and Forestbrook (both sold out), are infill sites in close proximity to each other; the same sales office was used for both sites which had a combined 130 homes. The Woodlands in richmond Hill, offers luxury homes on 35-, 40- and 43-foot lots. Heathwood is also building an all-townhouse master-planned community in Brampton, Terra Cotta Village, with 200-plus units with a pond, park, play area and biking and walking trails and built an alltownhouse development in the centre of richmond Hill. “The single family new home in the GTA is a commodity that is slowly waning,” Finnigan notes. “The industry would love to provide all the choice we used to be able to, but the 50-foot single is on the way out. A new large lot will be a 40, or maybe a 36- or 32-foot lot.” OHB

ontario home builder summer 2011

By Michael collins-WilliaMs

Absolute success

Absolute World made headlines even before a shovel was put into the ground. An international design competition put this project on the world map.

ontario home builder summer 2011

Key Stats and Facts HeigHt: 56 floors, 178m and 50 floors, 151m Units: 428 and 452 Location: Hurontario street & Burnhamthorpe road, mississauga City Centre compLetion: 2011

They tower over the tallest buildings in Mississauga; architectural

oddities that have now become instant icons on this city’s downtown landscape. Nearing completion, the impossible-to-miss twisting towers are set to become the 21st-century symbols of Mississauga’s transformation from a sleepy suburb to a thriving urbanized city. If the builders envisioned these towers would become instant landmarks, they have accomplished that objective. The striking design of the Absolute World towers at the city’s primary streets – Hurontario and Burnhamthorpe – create a gateway to Canada’s sixth largest city. The project has made headlines from the very beginning, starting with the announcement that developers Cityzen Development Group and Fernbrook Homes would host an international design competition to design the first tower, which attracted more than 600 submissions from 92 architectural firms across 70 nations. Those submissions were narrowed down by a jury to six finalists and the competition was then opened for public voting. On March 28, 2007, it was announced that Yansong Ma of Beijing’s MAD Studios had won the opportunity to see his vision come to life. In his design, Ma, a protégé of Iraqi-British architect Zaha Hadid, incorporates continuous balconies and floor-plates rotating clockwise between one and eight degrees around a concrete core. The first tower, which will total 56 storeys when complete, ultimately twists 180 degrees from the base to the top with a pronounced shift of eight degrees per floor over 10 floors at the “hips” midway up the tower to give the structure its very unconventional figure. “The floor-plates are essentially the same all the way up the building, but it’s that rotation that gives it the shape,” says Sam Crignano, president of Cityzen. The nickname for that first tower became “Marilyn Monroe” for the equally curvaceous Hollywood starlet. When it came time to plan the second tower a few months later,

the overwhelming consumer reception to the original Absolute World tower prompted Fernbrook and Cityzen to approach Ma to design a mate to the Marilyn Monroe tower – a masculine-shaped curvilinear tower dubbed “Joe” (Marilyn’s one-time husband Joe DiMaggio). Eager buyers once again exceeded the developer’s expectations and sales targets. “There’s no question our design was costlier to build than an average-looking building, but in the end, the market responded and they paid a little extra for a great design,” Crignano says, adding that the project proved that consumers were willing to pay a substantial premium to live in a bold landmark building. The unique organically curved profile presented expensive challenges in comparison to more traditional condo towers where each floor and all its components are vertically stacked. Furthermore, the construction of the tower required tremendously difficult formwork transitions as the irregular building floor plate changed each and every floor. The formwork truss system was required to be flexible enough to manage different structural configurations on each floor and creative placement of key elements such as kitchen and washroom wet-walls; elements that are typically stacked. “We spent a lot of time analyzing the logistics of construction and tried to anticipate problems before we got to the jobsite,” reflects Crignano. “It’s very complex and required a very comprehensive design team.” Supporting walls within the tower run longer or shorter depending on the configuration of each floor and “C” shaped walls surrounding the concrete core and elevator shafts act as

Web link

Use your QR code reader on your smartphone to read more online. For instructions on how to download a Qr codE rEadEr, plEasE sEE pagE 14. www.ohba.ca/qr-exclusive-003

ontario home builder summer 2011

Above: Mississauga Mayor Hazel McCallion at the “topping off ” party in November; Top right: The two towers near completion; Lower right: a new Toronto project, The L Tower.

unconventional Projects by Cityzen development and Fernbrook homes The Absolute World Towers built in partnership between the Cityzen Group and Fernbrook Homes aren’t the only head-turning architectural marvels underway by these two visionary developers. Other GTA projects in which they plan to make an architectural statement on the Toronto skyline include: The L Tower designed by ‘starchitect’ Daniel Libeskind (known in Toronto for the controversial renaissance rOm crystal expansion on Bloor street) will rise 57 floors above the sony Centre for the Performing Arts (formerly the O’Keefe Centre) and create a new iconic skyscraper in the city core. This project is a partnership between Fernbrook, Cityzen and Castlepoint. Pier 27, now under construction with its unique bridge-type design by Peter Clewes of architectsAlliance will be the first residential project to grace the eastern half of the revitalized City of Toronto waterfront.

international design Competition The competition attracted over 600 inquiries resulting in submissions from 92 architectural firms across 70 nations and six continents. The six finalists included: Nicholas Boyarsky, Boyarsky murphy Architects; michael rojkind, rojkind Arquitectos; roland rom Colthoff, Quadrangle Architects Limited; sebastian messer, studio mWm; Yansong ma, mAD Architects; Tarek el-Khatib, Zeidler-Partnership Architects;

ontario home builder summer 2011

structural supports while housing the building’s mechanical systems. The project initially launched in the second quarter of 2006 at an average price per square foot of $370, which, according to Urbanation, was an astounding 20 percent premium over competing condo projects in the Mississauga City Centre sub-market at the time. “The design clearly brought more sales and accelerated the whole sales process,” reveals Crignano. “Great design is what helps create enduring value for residents,” adds Fernbrook Homes President Danny Salvatore. “What I wanted us to build were homes not just for this generation, but generation after generation to come as well.” So if the consumer demand is there for bold, innovative designs, why are these type of competitions not more common? “You need a site that merits an international design competition,” says Crignano, adding that the Absolute development is located at “probably the most important intersection in Mississauga. You also need a zoning by-law that affords the flexibility of a competition,” he adds, “because you never know what the design will be at the end of the day.” Salvatore notes, “What we found in Mississauga was a shared vision of the future and an unwavering belief that great design is the path to creating enduring value.” The shared vision and support from the City of Mississauga is a

key reason why the project was so successful. The city eliminated height and density controls in the city centre and actively pursued high-quality architecture for this particular site at the crossroads of Mississauga’s two main streets. The city was a participant through the design competition, with Ed Sajecki, the Commissioner of Planning and building for Mississauga, sitting as a jury member that selected the winning design. Cityzen and Fernbrook also had a champion in Mayor Hazel McCallion, who recently remarked at the topping-off ceremony, that “this building has established Mississauga as a global city – that’s what it’s done. Other buildings, yes, are very important, but this one has just given us that step up.” “In part, the success of Absolute has made council very, very supportive of wanting to see good design,” Sajecki adds. “What we have said to developers is in the downtown we want to see good quality projects and excellent architecture. “When Mayor McCallion went to China seven and a half years ago, she had seen the architecture in Shanghai and wanted to see that kind of special architecture here. A lot of our buildings in the past had been bland, but we are looking for quality design. Most people would agree that the more recent buildings may not all be international class like the Absolute Towers, but they are good quality.” Both Cityzen and Fernbrook have created a strong brand for innovative architecture with the Absolute World towers along with other avant-garde projects such as the L Tower and Pier 27 in downtown Toronto. “Obviously the marketplace is responding to great design because they’re buying in all our developments and they’re paying a premium,” Crignano states. “I think it’s clear that the marketplace wants this; we’re just responding to a market need.” Industry leaders such as the Cityzen and Fernbrook are paving the way for more innovative design in the future across the GTA and setting the stage for an architectural renaissance. Looking to the future, Crignano predicts, “I think we’ve set a new trend and other developers are responding. We’ve got some great architectural talent in our city, and they’ve been challenged to excel. I think this is only the beginning.” OHB

mad architect Yansong ma, Founding Principal Yansong ma, originally from Beijing, received his master of Architecture from the Yale university school of Architecture in 2002 Prior to founding mAD in 2004, ma worked as a project designer with Zaha Hadid Architects in London and eisenman Architects in New York. He also taught architecture at the Central Academy of Fine Arts in Beijing. His works typically incorporate shifting shapes and curvilinear design elements. unique projects range from: The ‘Fake Hills’ housing development under construction in the coastal Chinese city of Beihai on a long narrow waterfront site. The concept includes high-rise towers and low-rise blocks to create a slab-like structure with an undulating roof and circular openings; Perhaps inspired by the Absolute World project in mississauga, ma has designed a 385-metre “urban Forest’” tower soon to dominate the Chongqing skyline in China. The tower is planned to reincorporate nature into the high density urban environment drawing inspiration from the perspectives of both nature and the man-made.

Inspired by Absolute World, architect Yansong Ma designed the Urban Forest in China that will reincorporate nature into high-density living.

the Philosophy Ontario Home Builder contacted architect Yansong ma to gain some insight into his approach to designing Absolute World. Following are his comments: What is your design philosophy? We develop architecture based on a contemporary interpretation of nature. All of our projects desire to protect the sense of community, offering people the freedom to develop their own experience. What Was your inspiration? We wanted to introduce natural forms that played with light, shadow and wind. We also like that the building was nicknamed “marilyn monroe” by the public although she was not our inspiration. What emotions did you Want vieWers to feel When they looked at the building? We do not wish to prescribe any feelings, as everyone should develop their own opinion about it. But we surely hope it inspires, both living in and moving around the building. What are the features you are most proud of? We were amazed to see all the attention the project got. The overwhelming public support for the project from the competition ‘til today reminds us every day that we uncovered a need for a different kind of architecture. What is your general impression of Canadian arChiteCture? It seems that the population is more open to new ideas than many developers think is possible. Were you Confident you Could shake up our Conservatism? When we were selected for the second round of the competition we were pretty sure. has this attraCted additional interest from Canadian developers? It has, but so far nothing is scheduled.

ontario home builder summer 2011

If you are looking for even more in-depth and regular provincial election coverage, sign up for the OHBA Election Watch newsletter by contacting OHBA Manager of Government Relations, Stephen Hamilton, at

shamilton@ohba.ca and sign up for OHBA’s brand new Twitter feed @OntarioHBA. The Election Watch newsletter will provide periodic electronic updates to local associations and to members on the latest polls, policies

and trends leading up to the October 6, 2011 provincial election. So let’s get ready to rumble with Ontario Home Builder magazine’s Tale of the Tape and remember that your vote counts on October 6th!

Now that the municipal and federal elections are ancient history it is time to rev up your engines and get excited for the third and final election of the last 11 months! With the 40th Ontario General Election set for October 6, 2011, Ontario Home Builder took advantage of a great opportunity to prepare special coverage of the election to keep members up-to-date and informed. While other media sources will focus on the broader issues of health care and education, OHBA is your source for election coverage on housing issues. In this issue of the magazine, we will introduce you to the three main party leaders in the lead up to OHB magazine’s special election coverage coming in the fall issue due out in September 2011.

By Michael collins-WilliaMs

ready to rumble

ontario home builder summer 2011

Leader Since: 2009 BOrn: 1967 faMiLy: married to Deb Hutton and together they have a young daughter, miller Olive Hudak

cOnStitUency: Ottawa south

Leader Since: 1996

BOrn: 1955

ohba Fighter CompariSon

HOckey teaM: Ottawa senators

SeatS: 71

Party StatUS: Government

edUcatiOn: Bsc in Biology, mcmaster university; LLB, university of Ottawa

faMiLy: since 1980 has been married to high school sweetheart Terri. The couple have one daughter and three sons. Brother David mcGuinty has served as a federal mP for the same riding since 2004

Fact: Once worked as a customs officer at the Peace Bridge

style: Hungry Challenger – watch for the right hook

style: Veteran who can take a punch Fact: Has nine brothers and sisters

tiM HUdak – UP & cOMer

daLtOn McGUinty – tHe cHaMP

HOckey teaM: Boston Bruins

caBinet exPerience: minister of Northern Development & mines; minister of Culture, Tourism and recreation; minister of Consumer and Business services (responsible for Tarion)

SeatS: 25

Party StatUS: Official Opposition

edUcatiOn: BA economics, university of Western Ontario; mA economics, university of Washington

cOnStitUency: Niagara West - Glanbrook

MPP Since: 1990

PrOfeSSiOn: Lawyer

MPP Since: 1995

Party: Ontario Liberal Party

tiM HUdak Party: Progressive Conservative Party

24th Premier of Ontario

daLtOn McGUinty

Fact: First female leader of Ontario NDP

style: rookie who could surprise

andrea HOrwatH – tHe UnderdOG

HOckey teaM: Was a supporter of Jim Balsillie’s bid to relocate the Phoenix Coyotes to Hamilton

PreviOUS POLiticaL exPerience: ran unsuccessfully as federal NDP candidate for Hamilton West in 1997. Later that year she was elected to Hamilton City Council and served three terms as a city councillor

SeatS: 10

Party StatUS: Third Party

edUcatiOn: BA Labour studies, mcmaster university

faMiLy: Lives with her son Julian

BOrn: 1963

Leader Since: 2009

cOnStitUency: Hamilton Centre

MPP Since: 2004

Party: New Democratic Party

andrea HOrwatH

road to code

Do you know which route you will be taking? By Randy ThRendyle and dave hendeRson

to the way houses are constructed in order to comply with the upcoming implementation of energy efficiency changes to the Ontario Building Code. First established in regulation back in 2006, the changes take effect January 1, 2012 and will apply to any permit applications after that date. The changes to the regulations mandate higher levels of energy efficiency but offer builders two ways (performance and prescriptive) to accomplish the task. Under the performance method, computer modelling software is used to assess energy consumption of a proposed house design. After the house is built, a blower door test confirms airtightness. In order to comply with the Building Code, the house must meet or exceed a score of 80 on the EnerGuide scale. For the techies: the Code only references version 9.34 of the Hot2000 computer modelling software. The prescriptive method, on the other hand, allows builders to choose from 37 methods outlined in accompanying tables in the Code. For a gas-heated house in Southern Ontario, there are 13 prescriptive methods available. Using a prescriptive method 52

ontario home builder summer 2011

photo: JupiTeRimages

Ontario home builders are in the process of making changes

? Production builders

For production builders, the new 2012 Ontario Building Code presents special challenges. Frank Garcea, Vice-President, Low-rise Operations for monarch Corp., says for a production builder like monarch, the biggest problem has been finding a system that will work across many jobsites with many different trades. Last year monarch built about 1,100 homes. To meet the new code requirements, monarch has moved to a 2 x 6 wall system with rigid foam insulation on the exterior wall. When combined with increased attention to taping details it should lead to a home that offers between 1.5 and 2 air changes per hour. In addition, the company will be increasing insulation levels in basements and attics and going with a 94 percent efficient furnace. The changes have meant a heavy emphasis on training the company’s superintendents and trades to ensure that consistent levels of airtightness are met. “That’s really our message to our superintendents,” he says. The company has held seminars and training sessions with both its own employees and its trade contractors in an effort to ensure future homes will be more airtight and more energy efficient. “If you want to achieve better results, you need to work with your trades so they are more knowledgeable about how to better insulate a house,” he says. In monarch’s case, they were able to learn from past experience. Last year the company sold 128 LeeD certified homes in a subdivision near midland and st. Clair Avenues in scarborough and they are currently building an energy star subdivision in Caledon. “We learned a lot from midland and st. Clair that we have been able to use in other communities,” says Garcea.

building above Code

most builders will use one of the many prescriptive paths outlined in the 2012 Ontario Building Code, other builders may want to go the extra mile and exceed the requirements of the new code. One such builder, Doug Tarry Jr. of Doug Tarry Homes, st. Thomas, is already building homes that score 82.5 on the enerGuide scale. “We want to build the best homes possible. That’s our market niche,” he says. The company, which builds about 50 homes a year, aims to attract buyers who are willing to pay extra for an energy efficient home. There are two costs to a home, he says: the initial cost and the operating cost. Tarry’s customers are typically people who are willing to pay more upfront for a home that will be cheaper to operate. “We tend to get seasoned buyers. They have lived in a leaky home and they aren’t happy with it so they come to us,” he says. The new code, he says, aims for 3.1 air changes per hour. some bungalows built by the company have tested as low as .56 air changes per hour. “That’s super tight, almost one sixth of code,” he says. In order to do that, each Tarry home includes a heat ventilation recovery system in order to ensure sufficient air exchange. “We call it the building science principle of build it tight and ventilate right.” He estimates that the HrV system adds about $2,000 to the price. In addition it costs about $1,500 for an improved air barrier and another $1,000 to $1,500 for extra insulation.

What will the market accept? For most builders, finding a price point that the market will accept will be key to meeting the requirements in the new 2012 Ontario Building Code. mike memme, Operations manager for mountainview Homes in Thorold, says that significant drops in housing starts in markets such as Hamilton and Niagara have made pricing very competitive. Given the competitive nature of the market, he says most builders will have to adjust their price lists upward to cover the extra costs in the new code. some price adjustments will likely start this summer and he expects by December most builders will have adjusted their price lists to reflect the new code. The reason, he says, is that the new rules are based on when the building permit is issued, not when the house is sold. If a house is sold this year and the builder wishes to build under the existing code, the building permit must be issued before December 31. If there are delays at the municipal building department and the permit is issued in January 2012, the new code will apply. If that happens, the builder would have to absorb the extra costs of the new code requirements. He expects most homebuyers will be sensitive to any price changes. right now, he says, about 20 percent of the company’s buyers are willing to pay extra for energy efficient upgrades in an energy star package.

Tarry, who is First-Vice President of the OHBA, is currently travelling the province speaking to local home builder associations on the new rules.

means the house meets Code and is deemed to reach an equivalent of EnerGuide 80 without the need to provide backup documentation or airtightness verification. Michael Lio, President of Home Ratings Ontario, says the 2012 Code gives builders a lot of choice. Custom builders who want to demonstrate that their homes are above the EnerGuide 80 standard will likely want to choose the performance method. However, he expects most builders will concentrate on finding a prescriptive option as it demonstrates compliance without the need for verification. One builder choosing the performance path is Doug Tarry Jr. of Doug Tarry Homes in St. Thomas. Tarry, who is the First VicePresident of OHBA, says the performance system offers advantages to custom builders who want to attract customers looking for a high-performance home. Tarry says his concern is that, without testing and verification, there is no way to demonstrate to the purchaser that the home meets the minimum EnerGuide 80 standard. Regardless of which method a builder chooses, there are advantages and disadvantages to both.

Verification and testing

As mentioned previously, the performance method requires the home go through a computer modeling process before a building permit is issued. Once the house is built it must pass a blower door test and meet or exceed EnerGuide 80 standards set out by Natural Resources Canada. The cost of hiring a consultant to model the house design is estimated at $150 to $200 and the follow-up blower door test will range around $350. Using the prescriptive method, the house relies solely on standard municipal inspections during construction and, provided all requirements of the Code are met, it is deemed to meet EnerGuide 80. There are no additional costs beyond what the Code requires. trades and training

Using one of the prescriptive methods offers builders a system that will work across many jobsites employing different trades at each site. It allows companies to set up methodologies so that trades on each jobsite are following the same system. Superintendents on each jobsite can ensure the work is carried out according ontario home builder summer 2011

$ Prescriptive Costs The 2012 Ontario Building Code offers builders 37 different prescriptive methods to make homes more energy efficient, but what is the best way?

michael Lio, President of Home ratings Ontario, says individual builders will have to find the choice that is best for them. Of the 37 choices, 13 deal with gas-heated homes in southern Ontario. By comparison, the old code offered only one method. Lio, who has given numerous seminars to builder groups on the new rules, says builders and government officials believe that offering more choice will be better for the marketplace and offer builders and homebuyers alternatives and different price points. Given the large number of choices, builders will have to “sharpen their pencils,” says Lio. He estimates there may be as much as $2,000 difference between the highest price prescription option and the lowest. “That’s a big chunk of change to leave on the table, so builders really need to do their homework and find out which package is best for them,” he says. It’s also an opportunity to build a competitive advantage over the competition. Last year Lio estimated that the various options would add $3,000 to a high of $5,000 to the cost of a new home. However, he says competition in the marketplace has already reduced those costs. “As people get more familiar with the rules, pricing is changing.” In some cases, he’s seen his estimates cut in half. Adding to that is competition from manufacturers who are bringing new lower-priced products into the market.

occupant lifestyle While building code changes, improved construction techniques and new materials will create a more energy-efficient home, the lifestyle of the occupants is still going to be a major factor in how the house performs. Corey mcBurney, President of enerQuality, says lifestyle will always have an impact on energy consumption. If homeowners choose to turn up the heat in winter or use more air conditioning in summer, even an energy-efficient home will not perform as predicted. What’s needed, he says, is the creation of a “culture of conservation” where people change their habits by turning down the thermostat in winter and adopting energy conservation as way of life. “Lifestyle is a huge variable,” he says, adding that the hope is that better design will have a “trickle down effect” making homeowners more conscience of the need for energy conservation.

Performance Costs

Changes to the 2012 Ontario Building Code offer builders the opportunity to build houses using what is described as the performance method. under this method a house undergoes computer modelling before a building permit is issued and, after construction is complete, it is tested to ensure it meets or exceeds the enerGuide 80 standard. There are, however, extra costs involved. michael Lio, President of Home ratings Ontario says the computer modelling needed for the performance methods adds $150 to $200 to the cost of a home. In addition, a blower door test, which costs about $350, is needed. Another $100 is added to the cost if the house is registered with enerQuality. That adds up to between $550 and $600. Added to that are the additional costs needed to ensure the house meets the enerGuide 80 standard.

in price-sensitive markets, builders fear that passing price increases along to the home buyer will affect affordability and sales.

to the new specifications. Either method will require builders to increase supervision, education and training for both their own employees and their trades.

new ways to manage homes built to the performance standard. Under the prescriptive method there should be fewer variables, easier inspection protocols and communication between municipal building inspectors and builders.

Airtightness

Regardless of method, the Code changes will result in homes becoming more air tight. The Code will require 3.1 air changes per hour. Most builders consider improved wall assemblies and the use of exterior rigid foam insulation to be the most cost-effective way to meet the new standard. Estimates indicate that improved insulation and wall assemblies will add about $2,000 to the price of a home, but those prices could decrease as manufacturers and contractors adapt to the new rules. Adding an HRV system, which is common in the performance method, will add about $1,500 to the cost. Some builders fear that increased mechanical costs could create an affordability issue for homebuyers. inspection

Some builders are concerned that using the performance method might create delays at municipal building departments as there will be a learning curve while municipalities and contractors develop 54

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increAsed costs

In price-sensitive markets, builders fear that passing price increases along to the homebuyer will affect affordability and sales. A common concern expressed by many builders is that homebuyers still prefer to spend money on interior finishes rather than systems that increase a home’s energy performance. Several experts have noted that builders who choose the performance method will be better equipped to manage construction costs. Allowing each home to be modelled using the Hot2000 software before the design ever heads to construction provides a builder with the opportunity to trade off certain elements for others. This balancing act will demonstrate savings if the builder and design consultant work closely. The prescriptive method may save money initially for builders who have never attempted a high performance home before and just need a simple answer on how to get the job done quickly and efficiently. At the end of the day, which method a builder chooses will be at his discretion and comfort level. ohB

If you are interested in having Drain Water Heat Recovery in your new home builds, contact your local Channel Consultant. Call: 1-877-736-1503 E-mail: channelconsultant@enbridge.com

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green showcase OHBA And EnErQuAlity

PArtnEr fOr AnOtHEr infOrmAtivE HOusing tOur By Michael collins-WilliaMs

ontario home builder summer 2011

a beautiful spring day the Ontario

Home Builders’ Association, in conjunction with its partners at the EnerQuality Corporation, conducted a green housing tour through the northwest GTA. Green building innovators and leaders travelled from all over the province to partake in the tour hosted by the Past President of both the Canadian and Ontario Home Builders’ Associations and EnerQuality Hall of

ontario home builder summer 2011

photos: Danny Brizzi

The green housing tour provided a great opportunity for networking and presentations from an array of builders.

Famer, Victor Fiume (Fiume Brothers Custom Homes & Renovations). The sold-out tour travelled to Richmond Hill, Nobleton, Caledon and Brampton to visit green housing projects and provide a valuable education on the different green marketing approaches, as well as technologies available for home builders. The tour began at the Heathwood Homes presentation centre where Heath-

Web link

Use your QR code reader on your smartphone to read more online. For instructions on how to download a Qr codE rEadEr, plEasE sEE pagE 14. www.ohba.ca/galleries/3

Hugh Heron, right, and Rene Grawey, below, of Heathwood Homes explain the technical features of the Green Home.

wood President and industry icon Hugh Heron discussed the leadership that the residential construction industry has taken in advancing innovation and green technologies. The second stop of the day included a visit to the stately King Country Estates in Nobleton where Energy Star for New Homes is being embraced as a standard by CountryWide Homes. A delicious lunch was sponsored by Building Knowl-

edge Canada Inc. at the Belfountain Inn, which overlooks the Forks of the Credit. Participates enjoyed some motivational comments from Gord Cooke, a passionate educator and advocate for better building practices, improved indoor air quality and energy efficiency, who talked about current and future innovations. The afternoon featured Monarch Corporation and Coscorp’s Experience Centre and com-

Green housing tour highlights Heathwood Homes – The Green Home CountryWide Homes – King Country estates monarch – strawberry Fields Coscorp – strawberry Fields minto – estates of Credit ridge

ontario home builder summer 2011

RELIABILITY QUALITY VALUE

Monarch’s Frank Garcia, top, and Minto’s Derek Hickson, below, discuss green housing features and technologies.

305 Iroquois Avenue, Mississauga, Ontario L5G 1M8 Tel: 905.274.5020 • Fax: 905.274.7110 • Cell: 416.577.5526 OHBA_ad_R3.pdf 1 22/10/10 4:12 PM

If you have

EMPLOYEES

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Call Michael Kelly

9 05-667-4748

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Consultation

ontario home builder summer 2011

munity of Engery Star-qualified homes at Strawberry Fields in Brampton and Minto’s Estates of the Credit Ridge, which included a detailed presentation by Minto’s Green Team Leader Derek Hickson on the Energy Star-plus features. The tour provided an opportunity to education industry professionals as to how they can incorporate energy efficiency, water efficiency and other green technologies into today’s new homes. OHBA and EnerQuality thank all the tour participants and builders that featured their green housing site. By continuing to work together, home builders and industry partners can share innovative green building ideas to ensure that Ontario home builders continue to construct even more environmentally friendly homes in the future. OHB

“ Building homes is a reputation business. We build the best homes we can, dealing with the best subcontractors, but when a windstorm hits or thieves break in, you have to be able to make things right. We’re experts in building homes, not insurance. That’s why we have Federated Insurance.

Knowing your business matters Find out more at http://ohba.federated.ca

Our Federated Insurance rep Michael is excellent. He’s quick to respond to our needs, with fast turnaround on those certificates of insurance you always get asked for. And he and his team have the expertise to make sure we’re properly covered, which turned out to be key. With only a few phone calls, they handle everything, and we could get back to doing what we do best. That kind of service and expertise has kept us with Federated Insurance for a decade and counting.” Jennifer Bartos, Saberwood Homes, Concord, ON OHBA Members for 25+ years Pictured at left, with Michael

Federated Insurance is a proud supporter and the recommended insurance provider of the Ontario Home Builders’ Association.

HAMILTON: HOME TO SUCCESS Thanks to home builders for making 2010 a record year for building permits in Hamilton. Over $590 million came from your industry, helping frame Hamilton’s success as being the place to build, develop, invest and live.

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better builder

Benevolent Dictator What it takes to be a thriving entrepreneur By Michael Feuer Being your own boss is a version of the

North American Dream that most people have fantasized about. Unfortunately, for too many would-be entrepreneurs, getting past the dreaming phase and into the doing phase seems insurmountable—especially in a shaky economy where quitting your day job or taking business risks seems foolhardy and funding seems scarcer than, well, pay raises. But the iron is not just hot; it’s smoking. And if you don’t strike now, someone else just might beat you to it. The perfect time to make your move is when everyone else is afraid to. It’s a lot like investing in the stock market – once everyone else starts jumping on the bandwagon, you’ve missed the window. The truth is, entrepreneurial success isn’t rocket science. It requires a great idea, the chutzpah to pull the trigger and the determination and discipline to create

and stack the building blocks needed to get from point A to point B – and from point B all the way to Z. I started OfficeMax with almost no money and built a $5 billion company in a relatively short period of time. Now I’m working to build that same success as founder and CEO of this new venture, Max-Wellness, a health and wellness retail chain. Once you’ve made the decision to take your stalled start-up or expansion plans off the shelf, blow away the dust, and move it into the marketplace, you’ll need to know what to do (and, just as important, what not to do). Here are my nine tested and true tips and insights for getting the job done right: 1. You’ll need to rule your start-up like a benevolent dictator. It’s not as scary as it sounds. The “benevolent” part means always putting the entity, the employees,

and, most importantly, the customer, first. In other words, you’re focused foremost on doing the right thing for the right reasons, for all stakeholders. The “dictator” piece simply means that somebody in a new venture (i.e., you) has to recognize when debate, conversation and analysis can’t take you any farther. At that time you have to decide, “We’re taking this fork in the road, for better or worse, and it’s on my head.” Remember, beating the competition is never easy. Someone has to be willing to make the important decisions when it counts. 2. If you don’t ask, you won’t get. Whether you’re asking an employee to go the extra mile, asking a vendor for a discounted price or pitching a business concept to an investor, you have to be willing to put yourself out there. Though most entrepreneurs don’t like asking others for help, they must ontario home builder summer 2011

better builder learn to live with the process, because it’s a stark reality of growing a company. Asking is certainly much more difficult than getting; however, it becomes much easier if you can learn how to make a strong presentation and tell your story. Attention, interest, desire and action are the key elements of selling – you can ask for or tell just about anything as long as you do so honestly and spell out the good, the bad and the ugly. 3. “No” means “maybe.” The word “no” is just a synonym for “maybe.” This realization led me to train my teams to comprehend that the “no” you receive the first nine times is merely a disguised “maybe”– because the other guy is looking for a reason why not to proceed, or doesn’t understand what you’re asking. It’s only after the tenth time – when the other person hangs up on you or walks out of the room and slams the door – that “no” really means “no.” Obviously, you’ll have to be tactful. You certainly don’t want to alienate potential investors, customers or employees by harassing them for a more favourable answer. But you don’t have to take “no” for an answer either. 4. Always look at a new idea through your customers’ eyes. Today customers have the power – and they know it. No longer do they have to accept inferior products and dismal service. In our world of almost instant computer-driven communications, blogs, chat rooms, Tweets, Facebook pages and apps galore, the consumer has come of age. There is a fast-growing movement afoot, and customers of the 21st century will not be denied. Whatever kind of business you’re running it’s imperative to listen to what your customers are really saying when they tell you what they want from your business. You must learn how to think like your customers and see things through their eyes, not just yours. In essence, you must create an environment, a product offering and a way of doing business that makes you the company of choice. 5. The journey better be as much fun as the destination. Many a great entrepreneur has been derailed by burnout. It’s a disease that can be caused by many factors, but which ultimately boils down to this – 64

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...it’s imperative to listen to what your customers are really saying when they tell you what they want from your business. You must learn how to think like your customers and see things through their eyes, not just yours. too much focus on the final outcome and an inability to enjoy the day-to-day elements of being an entrepreneur. In short, you have to enjoy the journey as much as you enjoy reaching the destination. If you don’t, you might make it there, but you won’t last long once you get there. I always incorporated this mindset into my business plans, right down to my daily activities. I’d start the day by handling my most difficult or unpleasant tasks first. With those out of the way, I’d take a management walkabout, checking with staff members at all levels. Then I’d move on to thinking time, meeting with colleagues, or sometimes just schmoozing, bonding or focusing on new and better ways to get things done. I always tried to teach through my own example that the journey for everyone should be as much fun as the destination. It’s important to shape your day-to-day work in a way that allows you to have some fun. By getting the hard stuff out of the way early, you don’t have to work with a sense of dread and you’re freed up to enjoy the rest of the day. Build some fun into every day, and you’ll stay refreshed and focused on making your business the best it can be. 6. Let “Mother” do the hiring. Bad hires are not only disruptive to businesses – they’re also expensive. According to a variety of studies, the cost of firing senior- or middle-management personnel can be as high as 300 percent of that person’s annual salary, and in some cases, even higher. This includes the cost of finding a replacement, training and the ancillary emotional and unsettling

peripheral and disruptive effects. How can you stack the deck in your favour when making a new hire? Listen to your mother. If there is a voice in your head that sounds like your mother and it’s advising you not to hire a certain candidate, the voice is probably just your entrepreneurial instinct telling you to proceed with caution. But beyond what I call the Mother Rule, there are ways to get job candidates to reveal their own crucial character traits. One way I vet candidates is to ask them to provide a letter of interest outlining why they think they can get the job done and what it would take to get them to join the organization. This shows me how the candidate thinks and articulates ideas and concepts – and also lets me know if he or she is thorough and has a sense of urgency by getting back to me in a timely fashion. 7. Don’t drink your own bathwater. When success is reached, history tends to be rewritten about who did what and why and how victory was snatched from the jaws of defeat. At a certain level, this is all well and good. The problem arises when the true story gets filtered down and the lessons from the experience lose their meaning because they’re not accurate or they’re too vague. This makes it increasingly difficult to apply what you learned to similar future efforts. If something didn’t work and no one remembers why, you’re usually destined to repeat past mistakes. Whether you have hit your stride or have reached a milestone, it’s imperative to remember one thing: If you don’t remain hungry to achieve continued success, you’ll soon find yourself believing that you are

NEW CODE. NEW REQUIREMENTS. NEW COSTS.

OBC 2012 IT’S COMING. GET READY NOW!

ARE YOU READY? Ensure your team is ready to meet the new energy efficiency requirements of the 2012 Ontario Building Code without missing a step. Instructor: Michael Lio, one of Canada’s leading code experts. Don’t miss this important workshop! Visit www.enerquality.ca for more information or to register for an upcoming workshop.

better builder as great as your last success. Moreover, if you do that, you could drown drinking your own bathwater or make bad mistakes because you trusted without verifying. 8. Know when it’s time to pull the plug. One of the biggest dilemmas for any entrepreneur, CEO or business owner is to know when enough is enough. There are peaks and valleys in virtually every company and industry. The trick for an owner is to understand these vacillations and know when it’s time for you to sell – to the highest bidder, of course. The key to fulfillment and continued success is knowing how and when to reinvent one’s business and even personal life. It’s all about looking for that new twist or turn that might ignite a new burning in the belly. That time arrived for me when I decided to sell OfficeMax. The company had been – in my mind anyway – something I did for almost 16 years but wasn’t who I was. I was thrilled that what I did employed 50,000 people with international operations in China, Japan, Brazil and Mexico. At the end of the day, I knew that my team and I had built OfficeMax to fulfill its promise of “serving its customers, creating opportunities for its employees, and building value for our shareholders.” With this realization, I knew it was time for me to move on. 9. Know how to put lightning back in the bottle again and again. It is absolutely possible to be a repeat entrepreneurial success. Most successful second-act players have honed their instincts and skills and created a series of methodical steps that they follow. They understand how to get from A to Z while minimizing pain and wasted motions and maximizing available capital. Experience has taught them where to spend the most time and effort to ensure that they meet or beat both others’ and their own expectations. Like many successful entrepreneurs and operators at this stage, I live to work rather than work to live. I love the challenge, thrive on naysayers telling me it can’t be done and get great satisfaction in proving the pessimists wrong. I won’t presume to understand the psychological reason why anybody does anything, but the simple answer for me is that I put lightning back in the bottle because I know I can. There’s 66

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nothing more gratifying to me than starting from scratch and building a meaningful and relevant business, and if it’s a giant, so much the better. Navigating a start-up venture is about as close as you can get to a 24/7 ride on the world’s scariest roller coaster. Every morning, when the entrepreneur gets out of bed, it’s showtime. And every evening, when that same would-be tycoon rest-

lessly drifts off to sleep, he says a silent prayer, giving thanks for the fact that he’s survived the preceding 18 hours or so and asking to be granted the strength to fight another day. michael Feuer is the author of The Benevolent Dictator: Empower Your Employees, Build Your Business, and Outwit the Competition.

Targeting Moms? Make it Relevant By Carol Flammer

Today’s mom is juggling a lot. From the

pressures of a career to making it to soccer practice with the right uniform on the correct kid, there is always something going on. More than anything, she craves organization, less clutter, more time to spend with her family and to save money. A recent study by Burst Media titled “What Mom Likes Online” (http://www. burstmedia.com/pdfs/research/burst_ media_online_insights_02_10_2011. pdf) does a great job of getting into mom’s head and helping corporations understand how to effectively market to her.

The study shows that moms are not interested in online ads promoting products geared toward family and home. Simply put, they find them irrelevant and distracting. Instead she wants to save! Moms of all ages find product coupons, sales promotion codes and other incentives to be relevant. Here is what they uncovered: 45.2 percent of moms age 18-34 will click to get coupons, as will 54.8 percent of moms age 35-54 and 51.5 percent of moms age 55 or older. After all, it’s hip to clip. More and more families have turned to coupons as a way

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better builder to balance the family budget. Not only can you save money, but there is the thrill of the adrenaline rush when the total at the grocery checkout drops from $250 to a mere $79.99. Moms have been clipping traditional newspaper ads for years and now, thanks to an array of online resources they can clip coupons right from their computer. Moms are also loyal. Check out any mom’s car keys and you will see it’s so. In addition to several keys, her keychain will sport at least one grocery store loyalty card. This concept is easily translated into social marketing, which moms love. It’s time to embrace the loyalty card of the Internet. It’s Facebook. Ok, so it isn’t a real card, it’s completely virtual. FREE offers are everywhere on Facebook. Corporations including The Home Depot, Outback Steakhouse and Starbucks promise, “like my page and I’ll give you something.” So, how does this relate to home builders, remodellers and construction products? Here’s an example of how one home builder wrapped coupon-clipping into their social marketing program. S&A Homes, based in College Station, Penn., launched “Operation Organize Simplify” to home in on what women value. They targeted prospective homebuyers and real estate agents. The campaign originated on their blog where realtors were encouraged to design an organization element for any home for a chance to win a $150 Home Depot gift card and an additional $500 on their next closing. It was no surprise that all the entries were from women and involved achieving better home organization. Most centred on the mudroom or the kitchen. For the consumer facing part of the Operation Organize Simplify campaign, S&A Homes posted a series of blog posts on how their homes could help organize life. Topics included charging stations, drop zones, kitchens, laundry rooms and mud rooms. They even included a major man space, the garage. Both moms and dads can certainly appreciate a more organized garage – one that has room to park both cars! All of the blog posts directed prospective homebuyers a downloadable coupon on the S&A Homes Facebook page. Good 68

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for $1,500 off any organization upgrades with the purchase of a home, six coupons were redeemed in just 45 days. Give Mom something on your social media sites and you give her a reason to come visit. You also fulfill another trait that moms have. They like to share their

“finds” with their friends. Your great deal might just give her the reason she needs to send her friends to your page! Carol Flammer is the author of the best-selling Social Media for Home Builders: It’s Easier Than You Think. For more information, visit www.mreLeVANCe.com.

Be Prepared How to execute a successful disaster recovery plan Fire, flood, power failure, computer

crash, theft, pandemic, terrorism – the list of disasters that could befall your small business is long and frightening. While having a disaster recovery plan is a must, how you implement it can mean the difference between a minor hiccup in your business operations and a major, perhaps even permanent, failure. Here are some tips on implementing your disaster recovery plan from chartered accountant Marc Belaiche, President of TorontoJobs.ca in Mississauga. Establish a disastEr rEcovEry tEam

“You should have a team of people identified and trained to execute the plan if disaster strikes,” advises Belaiche. “If one person in your organization has the primary responsibility for implementing the plan, make sure he or she has a backup and that the primary and backup individuals are never away or on vacation at the same time.”

communicatE thE plan with your staFF

“Effective implementation of your plan will occur only if everyone knows what to do in the event of a disaster,” explains Belaiche. “Document your disaster recovery procedures in your office manual, share them with staff and back them up in a secure location off-site. You should also have some way of communicating with staff members if disaster strikes outside of regular business hours.” tEst thE plan in advancE

“Small businesses should be proactive in testing their disaster recovery plans on a regular basis,” says Belaiche. “It is a good idea to make sure the plan works in practice, as well as in theory. A crucial part of implementation is testing the plan in various worst-case scenarios. Test the process, the people and the infrastructure involved.”

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OHBA gratefully acknowledges and thanks our major corporate partner:

and our other contributing sponsors:

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better builder

Update the plan regUlarly Real Estate Advisory Group

The cornerstone of successful projects.

“New threats, such as computer viruses and spyware, are created every day,” says Belaiche. “Some organizations spend time and money developing a disaster recovery plan that fails upon implementation because they neglected to maintain their recovery capability. New disasters can occur and regular updates to procedures are key to effective implementation.” decide what parts of yoUr plan to implement first

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“If disaster strikes, first secure your financial records, inventory and customer lists if they have been lost or compromised. With this information, your company can still continue to operate, even if it may still be significantly compromised,” explains Belaiche. “Then determine how long it will take you to get back on track and identify what information or resources have been lost.” Other implementation priorities include letting staff, clients and suppliers know what has happened and what you are doing about it – the most important thing is letting everyone know that the business is still operating. Get the expert help you need to fix the most urgent problems. sUrvive

“Your goal is to implement a plan that will ensure continuity and allow your business to run seamlessly while going through the restoration process,” says Belaiche. “A wellimplemented plan will help you recover quickly and effectively from an unforeseen disaster and emergency, thus avoiding significant business interruption and loss.”

Clean Up Your Act Carefully Carefully crafted, crafted, outstanding outstanding quality, quality, superior superior functionality functionality and unmatched and unmatched performance; performance; all backed all backed by the bybest the best warranty warranty in theinbusiness. the business. It’s easy It’s easy to to see why see why moremore architects architects and contractors and contractors specify specify Strassburger Strassburger Windows Windows and Doors. and Doors. 1-800-265-4717 1-800-265-4717 or visit or visit www.strassburger.net www.strassburger.net Kitchener Kitchener Head Office Head Office and Showroom and Showroom 2101 Shirley 2101 Shirley Dr., Kitchener Dr., Kitchener ON N2B ON3X4 N2B519-885-6380 3X4 519-885-6380 1-800-265-4717 1-800-265-4717 BarrieBarrie OfficeOffice and Showroom and Showroom 12 Alliance Sarjeant 12 Sarjeant Dr., Barrie Dr.,2,Barrie ON L4N ON4V8 L4N705-812-4923 4V8 705-812-4923 1-866-796-7023 1-866-796-7023 18 Blvd. Unit Barrie ON L4M 5A5

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What a recent survey reveals about annoying workplace behaviours it pays to sweat the small stuff. in a

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viewed said lacking attention to detail and presenting sloppy work are the co-worker behaviours that annoy them most. Gossiping or engaging in office politics also are pet peeves, cited by 24 percent of respondents. The survey was developed by Accountemps, the world’s largest specialized staffing service for temporary accounting, finance and bookkeeping professionals. It was conducted by an independent research firm and is based on interviews with more than 270 CFOs from a stratified random sample of Canadian companies with more than 20 employees. CFOs were asked: “Which one of the following co-worker behaviours annoys you the most?” Their responses:

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“Today’s office is a fast-paced work environment, but remembering to take an extra beat to check your work will ultimately deliver better results for both you and the organization,” said Kathryn Bolt, Canadian President of Accountemps. “Ensuring your work is up to par will establish you as a valued colleague and help you advance your career.” With regard to office politics, Bolt noted that although there is a certain level of politics within every company, it is best for employees to remove themselves from those situations. “Engaging in any form of gossip in the office could damage your credibility,” she said. “Trust is an essential component in building solid relationships with co-workers.”

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Succession Planning Seven key steps to leaving your business to the children You have worked hard to establish a suc-

cessful business and your greatest wish is to pass that business on to your children. Achieving a smooth transition to the next generation can be a difficult challenge but here are seven tips to help the process along. 1. Timing is everYThing

Decor Consulting for the Busy Home Builder

“You can’t force a succession plan on your children,” advises David Steinberg, a Partner with RSM Richter in Toronto. “They have to have the interest, the aptitude and the ability to succeed you. The time to start planning is when your children have finished school and have decided to join your business.” When the time is right, it typically takes at least three and sometimes up to 10 years to develop and implement the succession plan. 2. Be open and honesT

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“It is critical that all family members be involved in the process so that everyone participates and has a clear understanding of the succession plan,” advises David Webb, Regional Managing Partner with Meyers Norris Penny LLP in Waterloo. “Use a well-defined and well-documented process, and start by identifying the family’s goals and objectives.” 3. rememBer ThaT “fair” is noT The same as “equal”

“Treating children fairly is the goal of most families dealing with succession planning,” says Webb. “However, fairness can be a difficult issue to address, if not all of the children are involved in the family business. Some children may have special needs. Others may have been more actively involved in the build-up of the business to

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its current value and some children may have pursued a career outside the family business. These issues need to be considered in any succession and estate plan in order to preserve family harmony.” 4. Be clear aBout the children’s roles

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“There is entitlement based on birth and entitlement based on ability,” says Steinberg. “The best thing to do is to put the most capable child in charge of the company. It doesn’t mean that the other chilCOGECO CABLE COGECO CABLE dren can’t work in the company, but you COGECO would like toCABLE help you celebrate the would like tohelp help you celebrate the COGECO CABLE usually can’t have more than one child in purchase of your new you homecelebrate by offering the would like to purchase of your new home by offering you a SPECIAL PROMOTION would like to help you celebrate the purchase of your new home by offering charge. 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A •includes Digital Phone Owners Please call 1-866-216-0045 orofemail includes access fee and rental of HD PVR Receiver Unlimited Calling in North America good succession plan includes a strategic NewHomeBuilder@northerncallsolutions.com for more information 5 Calling Features - Voice Mail, Call Waiting, Call Display, plan for the business, retirement, estate Call Forwarding, Visual Call Waiting and tax planning, and transition, commu• Upgrade to HD service includes access fee and rental of HD PVR Receiver nications and contingency plans.” Please or or email Pleasecall call1-866-216-0045 1-866-216-0045 Please call 1-866-216-0045 oremail email 6. manage the transition process NewHomeBuilder@northerncallsolutions.com forfor more information NewHomeBuilder@northerncallsolutions.com NewHomeBuilder@northerncallsolutions.com formore moreinformation information “The transition can be short or long, but everyone’s role should be clearly underPleasePlease call call 1-866-216-0045 or email 1-866-216-0045 or email stood,” says Steinberg. “If the parent NewHomeBuilder@northerncallsolutions.com for more information doesn’t want to give up control, or conNewHomeBuilder@northerncallsolutions.com for more inform stantly overrules the child, the child is going to get frustrated.” Webb adds that, depending on the size, C A ME RON MORTG A G E complexity and value of the business, the S T E P H E N S C A P I T A L L T D. abilities of the children and the readiness of the parents, a transition can take from two to five years.

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7. talk to your advisor

“Your CA or financial advisor can help because he or she is a neutral party and is not emotional about your business,” explains Steinberg. “They have seen a lot of businesses, know how a succession plan should work and understand what is right for your business.” ohB

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product focus

IKO recently unveiled a laminated product with a patented drop pattern developed by the company to create a very distinctive appearance.

Curb Appeal

Improve sales with the right look By Dan O’ReIlly If location is the catalyst that attracts

potential homebuyers to a certain community or geographic district, it is curb appeal that can clinch the purchase agreement. “Even though we spend the overwhelming majority of our time inside our homes, the exterior street appeal is important for sale or resale purposes,” says Leslee Squirrell, principal, Leslee Squirrell by Design, a Kitchener-based design consulting firm which has a number of new home builders as clients. Achieving that look requires planning and carefully choosing a mix of colours

and the right materials no matter the style or price point of a house, she says. “Even in an entry level home, purchasers expect some detail that will be a point of pride in their new home.” While builders are often focused on the cladding and roofing they shouldn’t forget about or improperly use other envelope fixtures. For example, columns are an important element in the curb appeal mix, but thought and planning has to be applied to their placement and dimension. “Columns can cause the front elevation to seem insignificant if they are

undersized in relation to the proportion and balance of the rest of the exterior. Square columns have been replacing round ones in recent years allowing for more face forward detail to the street.” Columns are also an integral component of porches and porticos and, when used in combination with well designed and built overhangs, generate a “sense of arrival” feeling among visitors, as well as protecting them from the elements. An undervalued element, especially in large mass produced subdivisions, are doors. But they’re the first material touched by prospective purchasers. ontario home builder summer 2011

product focus

Vinyl siding colours are richer and bolder than ever before. Combine traditional white trim with darker siding colours such as Grenadier Green by Mitten for luxurious styling.

As such, they should be well chosen, colourful, clean and highlighted with upgraded latches, she says. And don’t overlook garage doors, which Squirrell suggests can make the biggest difference to an exterior elevation and street appeal. “I often encourage builders I work with to specify a coach house door as a standard garage door to set them apart (from the competition).” Rather than leaving them in a prefinished condition, garage doors can and usually are painted in colours which harmonize with the rest of the house, she says. So what curb appeal products are on the market and how are they being used and received by builders? For answers, OHB contacted some leading manufacturers. Stone Veneer

There is a growing consumer appetite for high quality stone veneer cladding as an alternative to materials such as brick 78

ontario home builder summer 2011

and vinyl, says Andrew Powalowski, managing partner for Mississaugabased Stone Selex. Based on its own estimates and feedback provided by contractors and architects, the company believes stone veneer sales now comprise anywhere from 10 to 15 cent of the overall cladding market. That market is unevenly distributed. In rural areas, siding such as vinyl, aluminium more recently fibrocement) has been traditionally used, with stone veneers utilized to accent certain areas.

In the cities stone veneers are much more popular for renovations, additions and newly constructed homes. And brick is still the dominant cladding in large volume new home subdivisions. Still, the demand for stone veneer is on the upswing because it allows for a variety of applications including chimneys, window accents, outdoor kitchens and ancillary recreation buildings such as gazebos and cabanas. Manufactured stones have also become the material of choice in the construction of fireplaces.

in cities some veneers are much more popular for renovations, additions and newly constructed homes. and brick is still the dominant cladding in large volume new home subdivisions.

OHBA_HalfPg_Ad_hor_fnl.pdf

11-06-08

12:22 PM

CMY

ontario home builder summer 2011

product focus homeowners for a distinctive look. “Today’s homeowner is looking for a more unique exterior to set their home apart from the rest. Maybe it’s an Annapolis blue siding that provides individuality in a sea of red brick homes. Whatever it may be, homeowners want to stand out from the rest.” Roofing

The advantage of manufactured stone veneer cladding by Stone Selex is that it is lighter than natural stone and in applications such as fireplaces does not require any support or foundation.

“The great advantage over natural stone is its light weight. Using manufactured stones, a builder can finish a 20- to 25-foot-high fireplace without any support or foundation.” But it isn’t just a desire for a tasteful accent which is driving the market. Increasingly, stone veneer is being used to create full facades, especially for large customized homes. The product’s versatility and low cost – compared to real stone – are some of the reasons. Another explanation is that now there is a much wider selection of styles (cuts) and colours then was available even as recently as a decade ago, says Powalowski . To emphasize that comment, he points to Stone Selex which has more 35 stone styles, each available in five to eight colours. That range allows builders to be more creative. “If builders have an experimental imagination they can mix stone and styles and colours to create endless possibilities for homeowners.” Vinyl Siding

Long gone are the days of pastel vinyl siding and with the passage builders have more opportunity to market their 80

ontario home builder summer 2011

homes, says Jenny Ball, communications manager for Mitten Vinyl. “Today’s vinyl siding offers builders thick panels that lay flat and give a seamless appearance, a large offering of dark rich colours, and matching or contrasting trims and accessories, and accent sidings that replicate the appearance of costly products like stone and brick at a fraction of the cost.” As just some examples, she points to the company’s Mitten Board & Batten siding which recreates the appearance of traditional board and batten, without the costly upkeep that wood siding entails. “It blends the architectural beauty of the past with today’s technology.” Another product option is the Grand River Shakes which realistically simulate the look of real cedar shakes, but without the costly upkeep. Although brick is widely used in the construction of homes in southern Ontario, technological advancements in polymer products have given the vinyl industry a competitive edge, she adds. “We can now offer affordable alternatives to costly products such as stone and brick.” And don’t discount the desire by some

A roof might be roughly compared to a toque in winter or a broad-brimmed hat in the summer. Its prime function is to protect the house and its occupants. Like the stylish hat which makes a statement about its wearer, however, an attractive roof gives a house individuality. According to Statistics Canada, asphalt shingles are the predominant roofing material of choice among builders of single-detached family homes. The reasons are obvious, suggest product representatives. “Even with the volatility of asphalt prices in the world market, asphalt shingles continue to be the most cost-effective roofing system for residential homes. This, combined with the ability to manufacture the product with unique looks, make asphalt shingles a quality choice,” says Nancy Henry, marketing manager for IKO Industries. An example of that quality choice is IKO’s recently unveiled Royal Estate, a unique laminated product with a patented drop pattern developed by the company to create a very distinctive appearance. “Each shingle boasts a range of subtle color variations that evoke the look of true slate.” For its part GAF Materials Corporation recently introduced its “Value Collection Designer Series” which is a line of three products that evoke the appearance of much more costly shake shingles, says sales manager Adam Prestwich. “Asphalt shingles have a long history of performance and value and are still the most widely used roofing material in North America.” That track record, combined with the introduction of limited lifetime warranties by most manufacturers and the development of new bold-looking products, are the factors builders need to consider as part of their overall strategy to enhance the visual appearance of their houses, says Prestwich. oHB

35 to 220 cfm automatic adjusting ventilation, • Mininum and maximum speeds can be set to accommodate home size • Patent pending sensor control process to provide humidity controlled ventilation • Ideal for addressing seasonal humidity problems in basements/crawlspaces • Built-in safeguards for extreme hot and cold or excessively humid conditions;

Regardless of how well a new home is designed or built, in a temperate climate humidity will affect the entire home. Humidity is part of nature. If the air is damp or smells of construction odors, paints, adhesives, etc., when the potential buyer first steps inside, it creates a negative first impression.

Discretionary override control of 220 cfm max. ventilation for 30, 60 or 120 minutes; product showcase Meets ASHRAE 62.2 and Canadian Building Code ventilation requirements; Energy eﬃciency – max.35 watts or average of 10¢/day to operate; 8-year warranty on fan and cabinet; 4-year on electronics.

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Moderate temperature & humidity, ideal conditions (max. ventilation)

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For use in homes up to 3,000 sq. ft. with max. 2,100 sq. ft. basement (2,500 crawlspace) and up to four bedrooms; HumiFresh Ventilation ® T: 506 533-3216 Discretionary override control of 220 CFM max. ventilation for 30, 60 or 120 F: 506 532-6991 HumiFresh ® Humidity minutes; info@humifresh.com Controlled Ventilation (HCV) Toll Free:62.2 1 800and 416-9111 Meets ASHRAE Canadian Building Code ventilation requirements www.humifresh.com

Beaver Valley Stone offers the largest selection of natural stone and precast products in Ontario, including flagstone, both random and saw cut. We also have many different types of drywall, ledgerock, natural stone steps and sills. Our precast concrete products include patio slabs, sills, steps and curbs. We also offer a wide selection of interlocking paving stones and retaining wall systems, from a variety of manufacturers. Accessories available.

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ontario home builder summer 2011

out side the boX

Plan to be Fit

Can we design communities to be exercise machines? By Avi FriedmAn The obesity epidemic is stagger-

Dr. Avi Friedman teaches architecture at mcGill university. He can be reached at avi.friedman@ mcgill.ca.

ing and it seems to keep escalating. In Canada, one person in five is overweight and nearly one in 10 is obese, an increase of two-and-a-half-times over the past two decades. Obesity among Canadian children is particularly troubling. In the past three decades, the rates have almost tripled. Why do waistlines keep expanding? The common tendency is to blame people’s poor dietary choices, made worse by their inactivity. Only recently attention was given to a sobering fact: Our built environment has been progressively altered to curtail physical activity, even by those who wish to be active. Over the past century, we have planned communities, built homes and welcomed lifestyles that let us run daily chores while burning fewer calories. Low residential density implies that basic services and amenities that can potentially get people active are not economically viable in the suburbs. There are not sufficient riders to justify introduction of a public transit and not enough shoppers to support a corner grocery store.

ontario home builder summer 2011

A casualty of contemporary suburban planning is the sidewalk. Since no one walks, some argued, why are they needed at all? Seniors, parents pushing a stroller and children had to share the road with motorists, often putting their lives at risk. When the sidewalk vanished, benches followed, leaving no places to sit, or trees to stand under and talk with a neighbour on a sunny day. Stepping out for a simple healthy walk became uncomfortable. So, how should we get people to be active? The simple answer is to recast in our built environment the features that have, over the past half century, been taken out. Homes and cities must be regarded as exercise machines. Along with the reintroduction of physical changes, we have also continued to warn people about the grim consequences of inactive lifestyles. Several strategies nonetheless need to be placed on top of planning agendas. Higher and medium density communities of greater than 25 units/ acre (62 units/hectare) need to be encouraged. It was repeatedly demonstrated that urban dwellers are

more active than their suburban counterparts. Once higher density communities have been built, commerce will also become economically viable. Efficient public transit must be part of every community. Frequent buses during rush hours, covered shelters and clearly displayed schedules may encourage motorists to leave their cars behind and use public transit. Pedestrians and cyclists must be given priority in all road designs. Slowing traffic, changing the road surface and enlarging sidewalks are some of the means to help make streets people-friendly. Walkable communities need to allow residents to reach every spot within a 10-minute walk. Homes should be built next to or even face play yards, so that parents can keep a watchful eye on their children. It takes time to bring about changes in town planning. Convincing elected officials about the need to invest in health promotion is not simple. Our conduct, however, must indicate the urgency of the situation, because if not followed, the ramifications to people and nations can bear dire consequences. OHB

The DuROCK PUCCS series of Exterior Insulation Finish Systems are the ultimate in insulated rainscreen technology. The patented circular grooved insulation board design incorporates a 10 mm deep air space for positive drainage, and PUCCS EIFS can be easily detailed to direct precipitation to the exterior. Please refer to DuROCK’s three dimensional colour details for guidance in designing interfaces with other wall components. Whereas the EIFS lamina is the Primary Plane of Protection against water intrusion, DuROCK’s air, moisture and vapour barriers form the Secondary Plane of Protection. DuROCK’s patented drainage track (UniTrack) collects drained water and allows it to be dispelled at select locations. The thermal resistance of the insulation, combined with the air barrier properties of the various moisture barriers, enhances the energy efficiency of any building clad or retrofit with DuROCK PUCCS EIFS.

DuROCK PUCCS RMC-1 EIFS is intended for use on wood sheathed, low-rise residential construction. It incorporates DuROCK’s Polar Bear air/moisture barrier and adhesive, which is specifically formulated for use over wood sheathing. This Canadian breakthrough in EIFS technology culminated four years ago when PUCCS RMC-1 EIFS became the first EIF System in Canada to meet the intent of the National Building Code for use over wood substrates. Please visit our website for the latest specification and detail updates on the DuROCK PUCCS series of Exterior Insulation Finish Systems.

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