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PREMIÈRE ISSUE
Capital HOW VICTORIA WORKS
What the capital region will be like in 2035 Our love affairs with cycling — and recycling
A Victoria student’s bright idea
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Capital 8 10 28 34 46 54 62 90 112
How a Saanich student is changing the world with her invention of a flashlight powered by body heat. What will the capital region look like in 25 years? Much of the growth will happen in the West Shore. A Victoria business leader was introduced to Royal Royals University at age 15. Now he’s chancellor.
Capital SPRING 2014
DAVE OBEE | EDITOR-IN-CHIEF DAVID WHITMAN | ADVERTISING DIRECTOR DARRON KLOSTER | EDITOR JASON SCRIVEN | SALES MANAGER
Demand for tradespeople is expected to outstrip supply by 2016, and Camosun College is meeting the shortage. Why the region’s tech industry has mushroomed over the last 10 years. Four businesses remake their spaces, with a particularly Victoria flavour. Our shipbuilding industry heads for a sea change, with billions in work. The two men behind Atomique Productions are in the vanguard of Victoria’s new generation of entrepreneurs. A stylish cyclist was tired of ugly bike wear. So she came up with an elegant solution, Victoria style.
Capital is published by the Times Colonist, a division of TC Publication Limited Partnership, at 2621 Douglas St., Victoria, British Columbia V8T 4M2. Canadian Publications Registration No. 0530646. GST No. 84505 1507 RT0001 Please send comments about Capital to: editor-in-chief Dave Obee, dobee@timescolonist.com. To advertise in the next edition, phone 250-995-4464, or email sales manager Jason Scriven at jscriven@timescolonist.com.
columnists Dave Obee 6 Dallas Gislason 20 Curtis Grad 25 Pat Elemans 32 Bruce Carter 84 Jack Knox 114 Capital SPRING 2014
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DAVE OBEE Welcome to Capital: our region, up close A celebration of what makes Victoria special
W
elcome to the first issue of Capital, a look at what makes Greater Victoria tick — the businesses, the ideas, the lifestyle and much more. Our region is one of contrasts. We are one large community, yet we have many diverse interests and geographic areas. We are well-established, yet we are fresh and new. We have a healthy, diversified economy, yet major sectors provide stability. Capital is designed to reflect the entire region, looking at business activities here as well as the way we live. That’s because business here is not just about the balance sheet. Entrepreneurs and corporations looking to invest consider our rich quality of life, our enviable climate, our commitment to the environment and our healthy outlook. They stay because, well, it’s tough to leave. Greater Victoria is a smart, creative place. Consider the success stories you’ll find in Capital — and remember that the people mentioned in these pages represent just the tip of the proverbial iceberg. For every person included in Capital, there are a hundred others who are also making a difference. That’s one of the delightful things about living here. No matter where you go, whether it’s in downtown Victoria or on a hiking trail, you will find creative people
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who like to get things done. We recognize challenges, but we don’t see obstacles; we see opportunities. People in the rest of Canada look to us with envy. They also look to us for ideas and innovation, and for our energy. The Times Colonist has been a proud part of life here since 1858 — before Victoria was a city, before British Columbia was a province, and before Canada was a country. It would be an understatement to say that our business has evolved. We have gone from single sheets of paper, fed by hand through a press three times a week, to a 24-hour news and information resource that is updated around the clock. We provide information through this magazine, through our newspaper, through our website, on mobile devices, on social media sites such as Twitter and Facebook, and even on the sign outside the Victoria arena. In one form or another, we provide vital information that helps you to make the most of life in Greater Victoria. Our story is hardly unique. Scores of businesses have been here since the 1800s, and have changed, time and time again, to meet new realities and to take advantage of new ideas and markets. Our lives are hardly static, and the people running successful businesses know that the goals are always being moved. They keep up with the times.
Dave Obee, editor-in-chief, Times Colonist
More businesses are being started every day — some of them are based on bricks and mortar, but increasingly, the winning formula is found using technology. Broadband technology has made it possible for groundbreaking companies to be set up here and sell to the entire world. Why here? It all comes back to the quality of life, the climate, and the willingness of Greater Victoria to move ahead while acknowledging our past. That is why Capital is about business, and life, and more. It is a celebration of all of the things that make Greater Victoria such a remarkable place. It’s not just a onetime celebration, either — look for more, much more, in a few months. In the meantime, we hope you’ll enjoy this première issue.
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â&#x2014;&#x2014; MOVERS
BRIGHT LIGHT
How a young Saanich inventor is changing the world Ann Makosinski with her flashlight powered by body heat. PHOTO BY DARREN STONE
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Capital MARCH 2014
AA
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BY ANDREW A. DUFFY
A
nn Makosinski has come up with something that can literally bring light to some of the darkest corners of the planet and could change the game of power generation forever. Not bad for a 16-year-old Saanich kid. But the Grade 11 St. Michaels University School student is not content to rest on her invention of a flashlight powered by body heat — even if that achievement won the 15-to-16-year-old category at Google’s 2013 international science fair and led to her being named one of Time magazine’s 30 people under 30 who are changing the world. A reluctant spokesperson for anyone other than herself — she bristles at being considered a voice for her generation — the savvy, confident and well-spoken young woman appreciates the platform the attention has given her. “The thing I am most proud of is I’ve brought attention to the fact that over 1.5 billion people still don’t have electricity and my
flashlight is a possible way, maybe in the longterm future, to help some of these people,” she says. Makosinski’s “Hollow Flashlight” has no moving parts or batteries. It does not use toxic chemicals or kinetic energy; it uses Peltier tiles that produce electricity when one side of the tile is heated and the other is cooled to power an LED light. Her inspiration for the invention came from seeing discarded batteries and after visits to the Philippines. A friend living there failed school courses because of a lack of electricity and light limited when she could study. Makosinski knows that problem is widespread. And with power, resource extraction and energy top of mind for many, she is keenly aware she has an opportunity to drive home the message of alternatives to fossil fuels. “One of the main problems we have and we are having is the lack of energy. We are polluting the Earth burning [fuel] and creating these carbon emissions,” she says. “I think this is the future, looking into natural ways we can harvest electricity.” While reluctant to offer pointers to policymakers, Makosinski suggests they need to consider alternative energy sources, includ-
ing the human body. “The body has so much potential, though I’m sure people already realize that,” she says. “After all, we are described as 100-watt walking lightbulbs.” While the human body may indeed generate as much heat energy as a 100-watt lightbulb, Makosinski has yet to turn her full attention and energy to what’s next. She hasn’t yet decided what she wants to do after high school, though she intends to continue exploring the human body as a source of energy. She is working to improve the design and brightness of her flashlight and has signed a confidentiality agreement with a company to work on its application. “I am definitely looking at getting into the sciences and possibly a career in energy harvesting, but I’m not sure exactly. I do want to help people and use things other people wouldn’t expect and see how I can use them in a different way to benefit humanity,” she says, adding with a groan that she probably sounded “cheesy” when she said that. “This has all brought to mind how fortunate we are. We take for granted that whenever we flip a light switch or plug in a charger or press the remote for the TV it’s going to work.” aduffy@timescolonist.com
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BUILDING THE CAPITAL’S
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FUTURE
As the capital region’s population ages, much of the growth over the next 20 years will take place on the West Shore, including construction at the rapidly growing Westhills community in Langford.
BY ANDREW A. DUFFY
I
It will be older, bigger, taller and a little broader, but
don’t expect Greater Victoria to be fundamentally different over the next few decades. Barring the development of any big game-changers
— hover car, anyone? — current trends are likely to continue, experts say: the population is going to grow, it will also get older, and increased demand from normal growth and migration will force densification in the urban centre and suburban spread outside the core. “The change will be gradual but still highly significant,” says consultant and futurist Ken Stratford, the former chief executive of Business Victoria. “The big issue is capacity demand. People want to live here, and our capacity to absorb that will be limited.”
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BUILDING THE CAPITAL’S FUTURE
NORTH SAANICH
2011: 11 11,0 089 0 2038: 14,5 4,5 ,501 5 +30 08 0.8%
GREATER VICTORIA POPULATION ESTIMATES TOTAL GREATER VICTORIA 2011: 344,615 2038: 475,163 +37.9%
475,163 people are expected to be living in the capital region by 2038 — 37.9 per cent more than the 344,615 counted in the last federal census.
SOOKE
22011: 001 11,435 2038: 38 17,323 +51 +5 5 .5% 51 5 5%
22011: 20 0 11,178 17 7 2 2038: 15,117 117 117 7 +35.2%
CENTRAL SAANICH
2011: 15,936 2038: 22,163 + +39.07% HIIGHLANDS
200011: 2,120 2000338: 2,999 +41.5%
SAANICH
2011: 109,75 752 75 5 2038: 128,046 6 +16.7%
VIEW ROYAL
2011: 9,381 2038: 11,853 +26.4%
SIIDNEY ID
LA LANGFORD
2011 11: 1: 29,228 203888: 55,554 + +90.07% COLWOOD OD
METCHOSIN IN N
OA AK A K BAY
2011: 18,015 20 201 8,01 8 8, 015 0 15 2038: 20 0 20,330 330 330 33 3 + +12.9%
2011: 16,093 1 203888: 33,553 +1 1 108.5% ESQUIMALT
2011: 4,80 03 0 2038: 5,9 ,9 9 993 +24 4.8% 8
2011: 16,209 2038: 22,671 +39.9%
VICTORIA
2011: 80,017 2038: 96,816 +20.9%
SOURCE: STATISTICS CANADA; CAPITAL REGIONAL DISTRICT
WELCOME TO RETIREMENT CITY A recent report by the Bank of Montreal suggests 15 per cent of Canadian baby boomers plan to retire in Victoria. Add that into the mix with a population that is healthier and living longer, continued migration from other regions, a student population that may decide to stay after university and over time you get a significant growth in population. According to B.C. Stats, 423,743 people are expected to be living in the capital region by 2025 and 456,377 by 2035, increases of 11.0 and 19.6 per cent, respectively, from the 381,743 estimated to be living here now. While the numbers look impressive, B.C. Stats says the growth rate for the region is 0.9 per cent a year while the provincial average will be 1.3 per cent. While the numbers alone provide pressure, University of Victoria economics professor Brock Smith said they contain a bigger 12
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challenge: “The interesting thing about that population growth is that it skews older.” According to figures from B.C. Stats, people over 65 make up 20 per cent of the capital region’s population. By 2035, it’s expected to be nearly 30 per cent. Growth in that segment is considered high, though other regions will see similar increases. Currently, 14 per cent of the Greater Vancouver population is 65 or older. That will be 22 per cent in 20 years. In the Fraser Valley, the percentage will go from 16 per cent to 21 per cent. In the Central Okanagan, it goes from 19 to 25 per cent. “That has some implications for housing,” says Smith. “With a number of fairly wealthy retirees, housing prices may go up, and it may make it increasingly more difficult for young people and families to work here. If we don’t have the workforce, businesses go away.”
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POPULATION BREAKDOWN Greater Victoria, 2011 Median male age Median female age
BUILDING THE CAPITAL’S FUTURE
MARITAL STATUS
42.5
Total population 15 years and over
299,435
45.7
Divorced 25,055
LARGEST GROUP
Widowed 19,050
POPULATION Greater Victoria
330,088
344,615
of the capital region’s population is expected to be over 65 by 2035, up from 20% at present
50-54 years
27,370
Married 135,355
12,800
Single 81,605
2006
14,570 SOURCE: STATISTICS CANADA, CENSUS METROPOLITAN AREA
Separated 8,215
Common law 30,155
30%
2011
+4.4% SOURCE: STATISTICS CANADA, CENSUS METROPOLITAN AREA
‘THE WEST SHORE IS WHAT’S LEFT’ The trend will likely continue pushing families looking for detached homes to the West Shore. Stratford says it comes with a warning. “The West Shore is what’s left, where there’s opportunity for development — but that window won’t be open for very long,” he says. “Given a restoration of significant economic growth, I think we’ll find the carrying capacity of the West Shore is maybe 15 years.” Matthew Baldwin, director of planning for the City of Langford, says the area is pretty much spoken for, with large parcels of developable land already zoned for development and subdivision. “How quickly they get developed is a matter of demand, but [Bear Mountain, Skirt Mountain, Olympic View and Westhills] represent the reservoir of developable urban land. If Metchosin remains rural forever, what you see in currently zoned Langford and Colwood is kind of it,” Baldwin says, noting the focus would then turn to redevelopment and replacement, like what is seen in the core municipalities. That could come more quickly than people think. According to the Capital Regional District, Colwood’s population will more than double to 33,553 and Langford’s will grow by 90 per cent to 55,554 by 2038. At the same time, Metchosin is looking at a 25 per cent growth in population, while Highlands faces 42 per cent and Sooke eyes 52 per cent. The West Shore is also facing an aging population, which could make future developments more dense than they have been, Baldwin says. “A change of demographics will drive a change toward higher-density, multifamily developments, largely because an older population will want to be living in closer community with others and closer to shops, services and transportation opportunities.” Capital SPRING 2014
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BUILDING THE CAPITAL’S FUTURE
GROWING OLD TOGETHER The aging population will also lead to physical changes — better transportation, wider sidewalks, improved accessibility and lighting. But the alterations are expected to be subtle. Michael Hayes, a professor at the University of Victoria’s school of public health, said the region “has an incredible sensitivity toward that already — access for people with issues in moving around, the older people and disabled.” “That’s not only true for Victoria, but that will be situated against a larger backdrop where universal design will become more the norm,” says Hayes. “I think it’s happening now.” Baldwin agrees, noting the region crossed that hurdle years ago. The needs of an aging population are similar to those for people with disabilities. “There is such a small incremental cost in making a sidewalk wider at the time of first construction that we have gone to that different standard,” he says.
BUILDING UP, NOT OUT That’s very much the thinking already in Victoria, where there is little developable land left. Victoria Mayor Dean Fortin says the next 20 to 30 years will “see the city preserve strong residential communities, enhance our vibrant urban villages.” Significant growth and development will be concentrated in the downtown. “We intend it to be thoughtful development that reflects the charm and character of the city, but we recognize we need to grow the tax base and provide economic opportunities, and we realize people want the density in downtown,” Fortin says. That means building up and continuing with the well-established trend of condominium towers with mixed-use opportunities. “We know we will see 20,000 more residents downtown by 2041, but frankly, my personal goal is to see 30,000,” he says. Growth will be largely in the city centre, followed by village centres such as Quadra and Cook Street. Minimal growth is expected in the city’s neighbourhoods.
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BUILDING THE CAPITAL’S FUTURE
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As for future economic growth, UVic’s Smith says that’s likely to come from within. “I don’t really see large corporations relocating headquarters here,” he says. That leads to the problem of retaining the young talent going through Victoria’s post-secondary institutions. “Once they get here, they often don’t want to leave, but sometimes they have to because the jobs just aren’t here,” he says. “One key driver is to maintain and enhance our entrepreneurial culture. The ability to commercialize innovation is a skill set we all need to work on.” All of those retirees will also drive economic growth in health care, says Pedro Marquez, dean of Royal Roads University’s faculty of management. Renewed growth in the tourism sector and international students coming here to study will also have an impact. Marquez, who is involved in the Vancouver Island 2065 initiative that is
looking to balance economic and sustainable growth, says the ripple effect of schools attracting international students is huge. “They rent suites and apartments, buy cars, eat at restaurants, see movies and their relatives visit several times a year,” Marquez says, adding many of those students want to establish themselves here either by working for local firms or buying their own businesses. In terms of health care, Marquez believes there’s an opportunity for business to fill in the gaps with services and products that are not currently being offered. “And tourism is a wonderful and not well-told secret,” he says. The tight budgets of destination marketing organizations have cut back the splash they can make when selling the city to the world. “Despite the fact Tourism Victoria has formed and built a strategy, we could still do a better job of telling the rest of the world about where we are.”
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GAME CHANGERS
1 A FIXED LINK According to futurist and business consultant Ken Stratford a fixed link with the mainland as an alternative to taking a ferry is a done deal. “I believe a fixed link with the mainland is absolutely inevitable,” he says, noting B.C. Ferries’ operating costs continue to rise while its revenue stream is fixed. “At some point there will be no alternative.” One argument against the fixed link has been that it will forever alter the character and quality of life on Gulf Islands that could be used as stepping stones for any link to reach the mainland. There is also the cost, pegged at a staggering $12 billion even a decade ago — and likely much more in the future — and the difficulty in creating a submerged section through the Strait of Georgia. There is also the spectre of parts of Vancouver Island turning into bedroom communities for Greater Vancouver. Stratford says while that would be likely in places like Nanaimo, it won’t have much impact on Victoria as anyone commuting would face a 3.5 hour commute each way and the cost of tolls and fuel.
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Looking at who and what will shape Victoria’s future is all well and good, but even the most conservative and bet-hedging prognosticator’s expectations are likely to get tossed into the recycling if there’s fundamental change to the Island way of life. And who would bet against there being huge change over the next 20 to 30 years? “When you’re crystal-balling 30 years ahead, you have to recognize that technological advances can change things,” says Victoria Mayor Dean Fortin, noting if it’s big enough all bets are off. Three game-changers in particular could transform the landscape of southern Vancouver Island in the next 30 years.
2 AGRICULTURAL LAND RESERVE Recent allegations of political interference in the workings of the Agricultural Land Commission and the spectre of the commission being restrained have had some wondering what the future of the 40-yearold institution could be and what that could mean for tracts of farmland around the province. “Right now there is land being used for one designated purpose. What if that changed? That could lead to significant changes,” says Michael Hayes, a professor at the University of Victoria’s school of public health. “It really could alter the course of events — I mean how many more Langfords and big-box-store opportunities could there be?” While the province has said the reserve will not be dismantled, its supporters are worried farmland will be lost as B.C. drives further down the road into oil and gas production. The Agricultural Land Reserve was created in 1974 by Dave Barrett’s NDP government to preserve prime agricultural land for farming and food production. Up until then, 6,000 hectares of prime agricultural land was being lost each year to urban encroachment and other uses.
3 THE BIG ONE Most game-changers you can see coming. Whether it be through evolutionary innovation or the stroke of a pen in a cabinet office, there’s usually a head’s-up before there’s a significant change in the landscape. But not where Mother Nature is concerned. It really is anyone’s guess what southern Vancouver Island, which sits in what’s known as the “ring of fire” — the Cascadia subduction zone — will look like if the “big one” does finally come and shake the foundations. A study prepared by AIRWorldwide, a catastrophic risk modelling firm, suggests the region is unprepared for a major earthquake and that such a disaster would wreak havoc on the landscape and economy. The study notes a magnitude 9.0 earthquake in B.C. would cause almost $74.7 billion in damage — $62 billion in property damage and $12.7 billion in indirect economic impact. Only $20.4 billion of those losses would be insured. If a magnitude 9.0 earthquake hits 75 kilometres off the west coast of the Island, AIRWorldwide expects it would trigger a tsunami, landslides and fires with the southwest area of the Island dealing with the most damage. Poorly built structures and heritage buildings in downtown Victoria and Duncan would crumble. Victoria would be ravaged by fires and homes in Esquimalt, Gordon Head and Cordova Bay would be destroyed by a tsunami or landslides. Sea ports in Victoria, Port Alberni and Nanaimo would be incapacitated for months. — Andrew Duffy
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Couple’s new reality is success with TV series BY MICHAEL D. REID or Karen and Dai Davies, dreams of local production prosperity have literally turned into reality. But reality television is the last thing the British husband-and-wife team thought would propel Cedarwood Productions when they moved here in 2002 from London. Before that, Dai was a veteran BBC broadcast editor and Karen an educator and military project manager. Realty Reality, their company’s FortisBCsponsored series about home ownership, and The Hard Way, their Telus-sponsored series in which business mentors help struggling entrepreneurs, are just two of 250 projects they’ve produced since setting up a home-based studio in Cordova Bay in 2003. “We’ve found a new model which we realized is something you have to create when you can’t break into the old model,” says Karen. Their success producing reality fare began with Flavours of the West Coast, a B.C. travel and cooking show hosted by master chef Steve Walker-Duncan. It premièred in 2010 on CHEK TV. It’s a sharp contrast with their original goal. “The whole market has changed,” Karen says. “We were surprised how hard it’s been to break into mainstream TV on the big networks. Broadcasters aren’t saying ‘Here’s a quarter-million to make a show’ anymore.” Before incorporating in 2007 as a production house offering services such as scriptwriting, development, music editing, visual effects, web design and video projects, the couple established themselves with projects such as Victoria! A Souvenir Guide, a tourism DVD. Their pilot for Mile Zero, an edgy homegrown soap opera laced with political and sexual intrigue and pitting tree-huggers against lumber barons put them on the local radar. The series suggested by Dai, who fell in love with Victoria while covering the Commonwealth Games for the BBC in 1994, was inspired by the success of Coronation Street
F
Karen and Dai Davies, with staffer Lindsay Nielsen, in their Cordova Bay production studio. BRUCE STOTESBURY
here. While Mile Zero didn’t fly, Cedarwood has since earned accolades including a Houston Film Remi Award for creativity, and a Greater Victoria Chamber of Commerce 2010 business of the year award. They’ve also created documentaries on coping with cancer (Light in the Darkness), the threat to our water systems (Water for Life), and a portrait of artist Dino Paulos. But the new model — sponsored reality-based television — is taking them into the future. The couple, both 55, attribute their success to building relationships locally, most significantly with CHEK TV, which benefits by obtaining free Canadian content. Corporate and non-profit clients include Elections B.C., the B.C. Cancer Agency, Nova Scotia’s Healing and Cancer Foundation, Sooke Harbour House and even a dentist in London. It’s a lean operation, with Karen as producer, Dai as executive editor and creative director and Lindsay Nielsen, who helmed Realty Reality, as producer and camera operator. The core staff’s work is augmented by contributions from freelancers. Nielsen, 28, a graduate of the Southern Alberta Institute of Technology, joined Cedarwood five years ago when she was seeking an internship. “Most companies just wanted me to do filing, except for Cedarwood,” she says. “I got to be more creative and shoot. They’re inspiring and fun to work for.” What keeps them going is being able to tell stories that make a difference while living
“in the best place of the world,” says Karen, using The Hard Way as a prime example. During its first season, the show helped the owners of Cabin 12 restaurant erase a crippling business debt and successfully restructure. It also triggered a $2-million licensing contract for Creole Jewellery Design after designer Creole Carmichael feared her 22-yearold business was in danger of closing. The show’s second season will include businesses beyond Vancouver Island. “Healthy local businesses mean jobs and a healthy local economy and community,” says Karen. “What we do is only small but hopefully each step helps.” There’s talk of another feel-good series targeting good causes and a documentary on Sasquatch from a First Nations perspective. “We still have tons of stories to tell,” she says, noting they haven’t given up on Mile Zero. “I still believe that can happen. When we first came to Canada we said, ‘Wouldn’t it be great to do a food show?’ It took five years, but we did it.” mreid@timescolonist.com
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DALLAS GISLASON Nurturing the economic garden: It’s up to all of us
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hen we think about the local economy, we tend to think about numbers. The media reports on the unemployment rate, retail vacancy rate and the gross domestic product, which leaves us with feelings of comfort or discomfort. These numbers rarely tell the whole story. Behind them, we can see what our local economy is really all about — everyday people doing some really amazing things. Every day, 370,000 citizens in the capital region make the local economy tick. They buy a cup of coffee on the way to work, visit the dentist on the weekend or drop off their children at daycare. This everyday behaviour is what constitutes “local commerce.” We need to take into account where this money that circulates locally comes from. Of course, we’re not referring to the Canadian Mint; rather, the entrepreneur making a product, delivering a service and bringing new money into the community. Entrepreneurs are vital to the community because they take risks that most of us would not take. They create wealth that combats rising costs and create jobs that diversify our tax base. Greater Victoria is fortunate. We have abundant assets that keep and attract talented people: Canada’s best climate, yearround outdoor activities, constantly improving cycling infrastructure, stunning green spaces, awesome restaurants and a vibrant music scene — to name a few. The convergence of talented people creates a more entrepreneurial spirit as they compete for their respective place in the community. It’s no surprise that renowned thought-leader Richard Florida named Victoria the Second Most Creative City in 20
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Canada (behind only Ottawa). This combination of entrepreneurial spirit and quality of place creates the perfect environment for ideas to take off. Our community’s quality of life attracted software innovator Edwin Braun and his film special-effects company CEBAS Visual Technologies — if you’ve watched a Hollywood blockbuster movie such as The Avengers, you’ve seen Braun’s work. Now, Braun is applying his innovative mind to new technologies and spinoff opportunities (his latest one is Deetectee Microsystems Inc., a company that recently patented its Single Burst Optical Recognition technology for applications across a number of industries from healthcare to smartphones). Our community also has locally grown innovators such as Andrew Wilkinson, founder and CEO of MetaLab, a design firm with multiple offerings, including software products such as Flow — a task and project management tool, and BallPark — a timetracking and online-invoicing system. Wilkinson is one of those entrepreneurs in the community who pays it forward. Entrepreneurs Leif Baradoy and Peter Locke of Kiind, a local startup that is changing the online gift card industry, were proud recipients of MetaLab’s Design Capital initiative, a program that Wilkinson created to help fellow innovators succeed. High-tech isn’t the only sector where local entrepreneurs shine. Andrew Paine and Rene Gauthier at Sitka have worked tirelessly for more than 10 years to expand from building surfboards in a garage to constantly evolving clothing and product lines that feature dozens of artists’ work in their Victoria and Vancouver locations as well as through online sales and distributors abroad. Paul Underhill of Groove Nutrition created a product to aid in his battle with cystic fibrosis. He and co-founder Steve Hughes are growing their flagship product Rumble, an energy and meal-replacement drink, across Canada and the U.S. Marie Hutchinson and Harold Aune founded Whitehall Rowing & Sail in 1987 and were the first to produce sculling boats that feature slide-seat rowing systems. Now, with customers all over the world, they continue to innovate. Their newest
Dallas Gislason is the economic development officer of the Greater Victoria Development Agency.
invention is a sliding-seat attachment for a stand-up paddleboard that lets the user convert the board to a row boat. Ray Brougham at Prototype Equipment Design, a local machine shop, is constantly finding new ways to service the marine and ship-repair sector and bring new innovative services, such as annodization, to the region. Brougham doesn’t just create jobs; he enables his employees to grow quality careers. As a community, we are faced with a beautiful and complex entrepreneurial ecosystem. It is in all of our best interests to ensure that this ecosystem is nurtured by reducing the barriers for these innovators to take their ideas to the marketplace. At the Greater Victoria Development Agency, the region’s economic development office, we meet with dozens of entrepreneurs each year. Some of these entrepreneurs have never started or operated a business before. Some have grown multiple companies and are just looking for the next opportunity to apply their passion and skill. Either way, as a community, we should help them create jobs for local (and future) citizens. We can do this by ensuring they have access to capital, creating government procedures that are responsive to the needs of business, growing talented people out of local post-secondary institutions, and by fostering a culture that is open to people with diverse backgrounds and new approaches to solving old problems.
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Melodie Hutmacher moved from a two-storey, two-bedroom townhouse in Comox to a 400-square-foot condo in the Soho building in Victoria in 2007. BRUCE STOTESBURY
Thinking outside the m i c r o l o f t B Y K AT I E D E R O S A
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or those living in Victoria’s micro lofts, urban living is as much about what is outside the home as in it. Good thing, because the spaces — picture a hotel room, a two-car garage or a shipping container — don’t have a lot of room to spare. “I remember my initial thought walking through the door was, ‘Is this it? It’s so tiny,’ ” says Melodie Hutmacher, who is in her 40s. “But I wanted to live downtown and that’s the sacrifice you have to make.” Hutmacher lives in a 400-square-foot condo in the Soho building on Mason Street. She got rid of half of the furniture from her two-
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storey, two-bedroom Comox townhouse when she moved in 2007. Now, she says, she uses her entire living space. “People are moving to de-cluttering, getting rid of the extraneous stuff we don’t need in our lives.” Hutmacher says living in a small space motivates her to take advantage of Victoria’s downtown. “It does encourage me to get out more because there’s so much more right at my fingertips,” she says. “I can walk pretty much everywhere I need to go.” There’s undoubtedly a lifestyle change involved in micro-loft living, says developer Jon Stovell, who describes the tiny suites as a “300-square-foot condominium with a $3-million living room.” Grocery stores, coffee shops, restaurants, bars and theatres are within walking distance and entertaining is done outside the home — think cocktail parties around the rooftop bar-
becue and lounge area — rather than in it. “The amenities that you don’t have inside your home, you find immediately outside your home,” says Stovell, who works for Reliance Properties. “Micro lofts will only work really well in very urban locations.” Reliance is redeveloping the 1891 Janion building, situated in a prime downtown location bounded by Store Street, the Johnson Street Bridge and the Inner Harbour. A six-storey structure is being added to the rear of the building to accommodate the 122 units, most of which are between 250 and 350 square feet. People lined up overnight in the rain to secure one of the micro lofts, which started at $109,900 for a 243-square-foot unit. (That translates to about $583 a month, including
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HOUSING
Greater Victoria, 2011 TOTAL PRIVATE DWELLINGS
GREATER VICTORIA HOUSING PRICES AND SALES
167,229
Single family homes
POPULATION DENSITY PER SQUARE KILOMETRE
Condominiums Units
Sales 6000
2500
495.0
5000
2000
LAND AREA
3000
696.15
2000
4000
1500 1000 500
1000
(square kms)
0
0 1991
HOUSING TENURE Renter 53,360 (34.8%)
Sales
1996
2001
2006
2009
2013
1996
Average price
2009
2013
Average price
$500,000
AVERAGE MONTHLY SHELTER COST Owner: $1,265 Renter: $968
2006
$350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 0
$600,000
Owner 99,910 (65.1%)
2001
$400,000 $300,000 $200,000 $100,000 0 1991
1996
2001
2006
2009
2013
1996
2001
2006
2009
2013
SOURCE: STATISTICS CANADA, CENSUS METROPOLITAN AREA; VICTORIA REAL ESTATE BOARD
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mortgage payments, strata fees and taxes after a $17,000 down payment.) The Janion micro lofts have queen-size Murphy beds, which fold into the wall to reveal a small two-person dining table. Appliances are compact with a wall oven, narrow fridge and freezer, and dishwasher that blends into the cabinetry. Things we use on a daily basis are more compact and take up less space; laptops and tablets have replaced bulky PCs, flatscreen TVs have replaced older models that needed their own cabinet and books can be read on e-readers. Stovell says his development received interest from a broad range of people, from first-time buyers wanting to test the waters to investors looking for a rental property. “It’s pretty much an emerging trend,” he says. “It’s still early days for micro lofts. There’s certainly a very strong demand.” Tony Zarsadias, owner of the Condo Group, a real estate company focusing on condominiums, suspects that most people bought a micro loft in the Janion as an investment property and intend to rent it out. That’s because the Janion has a very flexible zoning permit, called transient zoning, which is similar to that of a hotel and eliminates a lot of rental restrictions.
“The value of having a unit that can always be rented is high,” Zarsadias says. Clients eyeing small condos that they plan to live in range from retired people looking to downsize from their single-family homes to free up money for travelling to young working professionals who crave being in the centre of a vibrant, bustling downtown. “They need to buy something that’s less expensive. It’s not that they can’t afford it, but all they want to afford is a micro-condo so they’ll adapt their life to fit it,” Zarsadias says. There’s also the eco-minded urban citizens who want to reduce their carbon footprint and bicycle to work rather than drive. “There certainly is a growing community in Victoria of people who just don’t drive,” he says. “They live and work downtown, they walk or ride their bikes. They just don't have the need for a lot of space. People are trying to live a little more simply.” Developer Chris Le Fevre has been including small units of about 400 square feet in his downtown condo developments for the past 10 years. The New England on Government Street, a redevelopment of the 1892 New England Hotel, is set to open in March with 22 studio rental suites between 275 and 325 square feet which will rent for $775 a month and up.
7,000,000 PEOPLE LIKE US. That’s how many people visit The Bay Centre, Victoria’s centre of downtown shopping, year after year. When shopping is your business, there’s only one place to be.
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“I think there’s a trend to modesty that prevails within the housing industry at large, and this is one area of it,” Le Fevre says. “People are more accepting of smaller spaces — and to the extreme in downtown locations, where they don’t need all the paraphernalia. It’s a different style of living.” The Mosaic building on Yates Street was among the first in Victoria to introduce compact units, the smallest of which is about 350 square feet, “which at that time was very scary to the market,” says developer Don Charity. “I used to pace hotel rooms and say, ‘Oh my God, this is a small apartment.’ ” Charity and Fraser McColl are developing the Juke Box condominium, where the smallest unit is a 400-square-foot, one-bedroom apartment. “Europe has been doing this for centuries. . . . We in North American have had excess,” Charity says. kderosa@timescolonist.com
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CURTIS GRAD Investing in Victoria Harbour for the future rom installing mooring dolphins and breakwater handrails to revitalizing heritage buildings and planting native gardens, Greater Victoria Harbour Authority is committed to strategic investment in harbour assets. Founded in 2002 to provide local oversight of marine facilities, the authority is fulfilling its mandate to maintain and improve harbour infrastructure to support the economic, social and environmental health of the region. Responsible stewardship of the harbour requires continuous infrastructure improvement. The authority has invested more than $20 million in capital improvements since incorporation. Projects include raising a deep-water pier at Ogden Point, adding environmentally friendly floats at Fisherman’s Wharf to improve the ecology and increase moorage capacity and enhancing amenities in the Inner Harbour marinas. The harbour authority inherited from the federal government land and infrastructure that required significant upgrading. Strategic investments have ensured the facilities entrusted to the authority benefit the public interest, promote safety and access and serve as a catalyst for new jobs and economic sustainability. Active participation of the Songhees and Esquimalt Nations is key to the success of the habour authority. Their participation has enriched the harbour and respects their deep connection to the land and waterways. The harbour authority invested $600,000 to
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transform the Ogden Point breakwater into a Unity Wall, a canvas for First Nations artists and the young artists they mentor to share their culture with the world. In 2013, the authority installed handrails on the breakwater at a cost of $475,000 in partnership with Western Economic Diversification. The upgrade has improved safety for visitors to the popular site, increased use and enabled access for people with mobility challenges. Infrastructure investments have expanded economic opportunities for local businesses. Fisherman’s Wharf has transformed from a marina with a few small eateries to a floating commercial hub. The installation of the mooring dolphin, which added 70 metres to Pier B, and the dredging of the berth have enabled larger cruise ships to call at Ogden Point, including the weekly visit of the 4,000-passenger-andcrew ship the Celebrity Solstice in 2013. The remarkable growth of the cruise ship sector has strengthened tourism in the region, an industry that is responsible for more than 680 indirect and direct jobs throughout the Capital Region. The harbour authority’s five marinas, also an important tourism driver, have seen significant expansions and upgrades. Marina guests now enjoy modern, secure facilities with power, laundry, wireless Internet, recycling and composting. In 2012, through a competitive request for proposal process, the authority undertook the management of the iconic Steamship Terminal, a historic gateway for CPR steamship passengers. In 2009, the Provincial Capital Commission was successful in obtaining $1.5 million each from the provincial and federal governments under Canada’s Infrastructure Stimulus Fund to begin a major seismic and mechanical upgrade to this iconic heritage building. An additional $1.5 million from the province and $500,000 from the commission were later added to the reconstruction budget to address an expanded scope of work. Since then, the harbour authority has
Curtis Grad, president and chief executive officer, Greater Victoria Harbour Authority.
invested $2 million in heritage and building-system improvements. The installation of a waterfront deck will enhance the experience for residents and visitors to the Steamship Grill & Taphouse, the Robert Bateman Centre and Starbucks. Public support for existing and future initiatives is a primary objective for the authority and its efforts to serve the broader public interest of the region. Community-informed and -supported master plans for all facilities, particularly Ogden Point, are essential to sustain existing lines of business and to identify new opportunities to support ongoing infrastructure reinvestment. Marine structures are expensive to build and maintain. Saltwater corrodes them. Tidal motion and weather cause wear and tear. Over the coming decades, the harbour authority will continue to invest strategically in the marine infrastructure to ensure the vitality and sustainability of the region’s working harbour. The authority is committed to ensuring that port lands and assets serve the broader public interests of the capital region today and well into the future. Capital SPRING 2014
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Local managing partner, Rachelle Keeley
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was teaching French at Uvic when I first heard about Premiere Executive Suites (PES). I was really intrigued by a hotel model that used fully furnished condos instead. After some investigating my business
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partner and I bought the franchise for Victoria. We started off with one apartment and $3000. That was almost nine years ago. We now have almost 50 apartments and ten staff. The most attractive part for companies with staff coming in and out of the city is the value. A fully furnished condo with PES costs less than a comparable hotel suite. It is larger, includes everything from hydro, cable, housekeeping, to insuite laundry and parking. A big plus is that stays over 30 days are non taxable. This is a huge advantage for any company housing staff for a long term project. Premiere Executive Suites was started about 14 years ago by Tim Moore, who saw a need for furnished accommodation for the business traveller or displaced home owners. Tim’s vision was that there would
be a lot more business travel. He was right. We have people staying with us from all over the world. No two days are the same. We might have a team of engineers arrive on Monday followed by a full production company arriving on the Wednesday, and everybody staying different lengths of time.
“One of the biggest pleasures we have is placing families that have been displaced from their homes because of a fire or flood. Taking people from a high stress situation into a beautiful place to stay is really rewarding, it just feels great to be able to help,” says Leah Speller, Office Manager.
Premiere Executive Suites is now in 26 cities in Canada as well as Tampa and Barbados. There are 1320 suites ready for business travellers on short assignment, for new staff relocating to the city or for home owners that have been displaced by fire or flood. We are not about the properties as much as we are about the relationships with people. We want our guests to be sleeping on the best linen and have the best experience knowing they are cared for by the team here.
Premiere Victoria is going into its ninth year of business with Crystal Maxwell managing guest services and reservations. “The suites really sell themselves. They are beautifully furnished, and the rates are lower than a comparable hotel, but you get the whole apartment instead.” Crystal, with many years of experience working in the hotel industry, loved the concept immediately. “I would be happy to live in any of our suites”.
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save thousands per month with more space to live
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Typical Hotel Suite
Bedrooms
Premiere Executive Suites
Typical Hotel Suite
Premiere Executive Suites
1
1+ den
Room Tax (5%)
$7.55
$0.00
Living Space (sq.ft)
525.0
650.0
Tourism Tax
$4.88
$0.00
Average Daily Rate
$136.00
$95.00
Effective Rate
$170.98
$95.00
Parking Cost
$15.00
$0.00
x 30 Day Extended Stay
$4,610.40 $2,850.00
GST/HST (5%)
$7.55
$0.00
STAY IN YOUR HOME AWAY FROM HOME FOR LESS THAN A HOTEL Typical Hotel Suite
Coast to Coast Coverage Residential Environment Separate Living Space Fully Equipped Kitchen 2bdrm & 3bdrm Options Free High Speed Internet Dedicated Work Space Multiple Locations in City Full Size Bedroom
✓
Premiere Executive Suites
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Typical Hotel Suite
In-Suite Washer/Dryer Free Local Calling/Voicemail
✓
Flexible Payment Options 24/7 On Call Service Bi-Weekly Housekeeping Responsive Maintenance Single Point of Contact Direct Control of Guest Experience
WWW.PREMIERESUITES.COM
✓ ✓
Premiere Executive Suites
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
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◗ MOVERS
MEET THE CHANCELLOR Royal Roads University is in his blood
S T O R Y B Y R I C H A R D W AT T S PHOTOS BY ADRIAN LAM
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ictoria business leader Wayne Strandlund likes to say he was introduced to Royal Roads almost from his first day in Victoria at the age of 15. The oldest of eight, Strandlund’s entire family had moved from the hamlet of St. Hubert Mission in southern Saskatchewan in 1962. One of the first things Strandlund did was visit two pals, officer cadets at what was then Royal Roads Military College. “It was like Butchart Gardens,” says Strandlund, now 66. “And there was this full sea view, sitting on the steps, looking at the Olympic Mountains. How good does it get?” “I guess you could say Royal Roads has been in my system, in my blood for a very long time.” The founder, director and chief executive of Fisgard Capital Corp., a firm specializing in mortgage investment and borrowing, is the new chancellor of Royal Roads University. It’s an appointment that’s left him deeply humbled and honoured. He was originally appointed to the Royal Roads board of governors in 2011. Strandlund is excited about his new position because chancellor at Royal Roads — unlike most other universities where it is a ceremonial position — is an activist position. The chancellor chairs the board of governors and takes part in program and course development as well as management of the facility. “It is not a passive position,” says Strandlund. “The board of governors is very active. There is a lot of work that goes on and I enjoy it.” His ability to step from work tasks into interest, observation and opportunity
Wayne Strandlund is the new chancellor of Royal Roads University and founder and CEO of Fisgard Capital Corp.
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Hatley Castle, which was completed in 1908, is the focal point of Royal Roads University, formerly a military college. The castle served as dormitory and mess hall for cadets and staff officers at the college, and is now the universityâ&#x20AC;&#x2122;s administrative centre.
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characterizes his life as it began back in a tiny French-Canadian community east of Regina. His father had only a Grade 11 education. But it was enough to gain him the position of school teacher in the community, teaching in a one-room schoolhouse. During winter, his father would ski to work, hauling the young Strandlund behind on a toboggan to his first classes. Strandlund and his family moved to Victoria in 1962 and he attended the University of Victoria, earning a bachelor of arts, majoring in creative writing and music. Before he graduated, he was married and had three kids. His interest in music has never left. He has been a board member, including president, of the Victoria Conservatory of Music and member and director of the Victoria Symphony Society. To this day he listens to and studies music in his spare time with an analytic approach. During university, it was the summer jobs and part-time work, in construction and real estate sales, where he quickly gained an education in development, home-building, investment and borrowing. Only 23 and still a long-haired university student, he found someone willing to lend him money to build his first home. The lender was someone he happened to meet at a construction site who said he would like to invest in mortgages sought by people of good character.
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‘‘
You are looking at somebody who will be close to 70 when he takes his MBA. I am genuinely interested and I don’t ever intend to retire.
Strandlund put his name forward and he and his young family got into their first home. It was the beginning of his credo that lending and borrowing is a human interaction, where both parties become enriched in more than just money and property. So at Fisgard, lending officers and investment officers work closely together. It’s an arrangement unlike some mortgage companies, where one side has no clue about the other. Strandlund believes the crossover is important. As he describes business at Fisgard, he discusses the human parties involved in the transactions. He recently dealt with a couple topping up tax-free-savings accounts for themselves and their two children. There is another story of a man realizing a dream to buy a boat by raising a second mortgage. Strandlund insists the business is simple. People want to invest money and people want to borrow. His company functions by bringing those sides together. He also does his best to encourage his company officers to seek further education, even paying their costs to Royal Roads University to take advanced business courses. The world is changing and opportunities exist everywhere for new business and new relationships. Two of his senior vice-presidents at Fisgard received their master’s in business and administration from Royal Roads. His son, who works at Fisgard (Strandlund calls it a family business), will be attending in the future. He encourages all his employees to seek degrees there, while working and raising their families. Strandlund says Fisgard is happy to pay and calls it money well spent. When his appointment as chancellor is complete, he intends to enrol himself. “You are looking at somebody who will be close to 70 when he takes his MBA,” Strandlund says. “I am genuinely interested and I don’t ever intend to retire.”
At Footloose you’ll find everything from unique fashion to classic comfort with a twist. We carry an exclusive selection of handmade, and one of a kind designer footwear from around the globe. Lines include Frye, Camper, John Fluevog, Fly London and Naot, not to mention the Erin Templeton bag line out of Vancouver, and the Aunts&Uncles out of Germany. From high end imports to comfortable west coast footwear, Footloose has you covered. We Don’t Do Dull. Shoes, Bags, and Accessories. Website: www.footlooseshoes.com email: footlooseshoes@hotmail.com Follow us on Twitter and Instagram!
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637 Fort St Victoria, 250.383.4040
f o o t l o o s e s h o e s . c o m Capital SPRING 2014
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P AT E L E M A N S We can’t live without you 740, 640, 300, 200, 50, 20, 12, 3. What do these numbers represent? The number of co-op placements, Distinguished Entrepreneur of the Year guests, executive mentors, guest speakers, competition judges, board members, and Innovation Centre for Entrepreneurs clients and executives-in-residence involved with the University of Victoria’s Gustavson School of Business on an annual basis. If you multiply that over our 24-year history, that is a significant number of community connections. The business community is integral to all that we do in the Gustavson School of Business; we simply could not exist and deliver our programs without their involvement and support. In the late 1980s, members of the Victoria business community and chamber of commerce lobbied the provincial government to establish a unique business school at the University of Victoria. In 1990, their request became a reality, but the community’s involvement with the school did not stop there. The School of Business Associates Program was established at the same time the school was created. With David Black, founder and past-president of Black Press, at the helm, 50 people were recruited to the Associates Program, the school’s first board of advisers. This group of business people and community leaders, including the late Alex Campbell Sr., Cedric Steele, the late Robin Hall, Richard F. Bradshaw, the Hon. Judd Buchanan and Ron Lou-Poy, took the lead in establishing the school’s foundation and unique features. Committees were established to develop the school’s mandatory co-op program (the first mandatory co-op program for undergraduate business students in Canada), establish the mentors program, market the 32
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school, create a speaker series, organize special events such as conferences and business dinners, work on the requirements for a new School of Business building, recruit students and establish scholarships. Board members were also involved in program design, teaching of courses, spearheading student projects and advising the dean on governance issues. Although most of these activities are now managed internally by the school, the business community’s connection to the business school remains critical. Since inception, the school has grown significantly and added new programs. We have doubled the size of our bachelor of commerce program and added a Master of Global Business program with two and soon to be four streams, and a PhD program. This year, we will have made 12,560 co-op placements for our bachelor of commerce, MBA and Master of Global Business students. Last year, 41 per cent of the co-op placements were made in Victoria, 23 per cent were placed elsewhere in B.C., 17 per cent were placed in Alberta, 16 per cent were international placements, and three per cent were placed in other provinces. Each year, more than 75 per cent of our students study at one of our 86 international exchange partners in one of 40 countries. We now have two advisory boards — an international board and a local Gustavson Associates board. This change reflects the school’s strategy and commitment to internationalization, our global focus and our continued connection to the local community. The school has earned two significant international accreditations, placing it among less than one per cent of business schools worldwide. A portion of the criteria for accreditation is the school’s connection and work with the business community. The relationship with the business community is synergistic. Each year, our MBA
Pat Elemans, Assistant Dean External, Peter B. Gustavson School of Business
students complete consulting projects locally and internationally for businesses and organizations; more than 300 companies have benefited from this service. Our faculty are leading experts in many areas and give presentations and participate on panels locally and around the world. They are sought after by the media. We organize conferences and symposiums, and bring in world-renowned speakers, events that are open to and benefit the local community. Our Innovation Centre for Entrepreneurs helps people take ideas and grow them to viable businesses. Many local, national and international businesses have been launched by Gustavson graduates. Our office of executive programs, in addition to providing training to First Nations entrepreneurs in northern B.C. and training for Canada’s aboriginal financial institutions and village band officers, offers open enrolment and custom programs for individuals and organizations throughout B.C., Canada and internationally. These are just a few ways that the Gustavson School of Business and the business community work together for mutual benefit. Our community provides the foundation for all that we have achieved and continue to achieve. 2015? The year we will be celebrating 25 years of success.
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ONE OF THE FASTEST GROWING CITIES IN B.C.
GENERAL INQUIRIES
FINANCE
250-478-7882
250-478-7882
ADMINISTRATION
FIRE DEPARTMENT
250-478-7882
250-478-9555
BUILDING
PARKS
250-474-6692
250-391-3162
BYLAW ENFORCEMENT
PLANNING
250-474-0604
250-474-6919
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Dylan Day, 24, learns the trade of arc welding at Camosun College.
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◗ HOW
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VICTORIA WORKS
HOT FUTURE FOR TRADES Camosun College is meeting a looming skills shortage
B Y L I N D S AY K I N E S
S
arah Johnston was always interested in working with her hands. Even as a child, she recalls spending her summers hammering nails or chiselling rock for the fun of it. In high school, she took mechanics and enjoyed it, but was still unsure of what she wanted to do after graduation. “I didn’t want to waste time in school if I wasn’t going toward something,” she says. Instead, she found work at the Victoria airport in baggage handling and later food services. But she always kept her eye on the want ads to see what employers were seeking. “There’s always demand for welders,” she says. “There’s always demand for machinists.” Then a friend told her about a 12-week program at Camosun College where she could try her hand at any number of disciplines to see what appealed. “I’ve never had the opportunity to try welding before. I’ve never had the opportunity to try SLUG: XXMAR-Education(c).eps sheet metal fabrication before,” Johnston says. “So the fact that I was able to come in and do in CAPITAL MAGAZINE – Graphics dated – Editorial a week of each one, and cement what I was into, was the real hook.” Financed through the Canada-B.C. Labour Market Agreement, the Industry Training Author-
EDUCATION
HIGHEST LEVEL OF EDUCATION ATTAINMENT Of the 248,595 people aged 25 years and over in Greater Victoria, 2011
Post-secondary certificate, diploma or degree 165,000 (66.6%)
No certificate, diploma or degree 24,185 (9.7%) High school diploma 58,910 (23.7%)
In 2011, 80.9% of the aboriginal population aged 25 to 64 in Greater Victoria had at least one certificate, diploma or degree, an increase from 2006 (74.5%). Greater Victoria’s 2011 rates exceeded national (71.1%) and provincial (75.0 %) rates.
GETTING A DEGREE
GETTING A TRADE
Average cost at UVic for 8 months of study
The estimated total tuition and fees to attain a 30-week sheet-metal and metal fabrication foundation certificate is $4,100. Cost includes Camosun College assisting with employment and apprenticeship placements. The starting salary for a sheet-metal worker apprentice is $32,000.
Domestic tuition $5,058 International tuition $16,366 Sudent society fees $149 Athletic and recreation fees $158 UVSS health plan $144 UVSS dental plan $144 UPass bus pass $162 Books and supplies $1,700
SOURCE: CAMOSUN COLLEGE
Room and Board On-campus, single On-campus, double Off-campus
$8,123 $7,164 $9,240
SOURCE: UVIC OFFICE OF THE REGISTRAR
SOURCE: STATISTICS CANADA, CENSUS METROPOLITAN AREA; VICTORIA REAL ESTATE BOARD
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Clockwise, from right: Women in Trades program students, with ity’s Women in Trades Traininstructor Geoff Murray at ing program at Camosun is Camosun College. Jolie part of a strategy to align Obey does welding. women’s skills with the future Sarah Johnston works needs of the workplace. at carpentry. It allows about 75 women a “The primary focus has always been [to recruit] young men, and I think today
HOT FUTURE FOR TRADES
year to explore everything from carpentry and automotive repair to welding and sheet-metal fabrication before deciding whether to enrol in a trades program or pursue an apprenticeship with an employer. “We know that we have a skilled-worker shortage, and recruiting individuals is still a challenge,” says Olaf Nielsen, Camosun’s trades training and development co-ordinator. 36
Capital SPRING 2014
we’re recognizing that that recruitment strategy has to be more representative of our community demographics. “Women are a significant portion of our workforce, but in trades they haven’t been targeted. I think we want to bring them to the table.” The British Columbia Trade Occupations Outlook 2010-2020 reports that demand for tradespeople will outstrip supply by 2016 and that “there is an increasing need to educate and train labour force entrants.” The report notes that women represent a “potential source of relatively untapped supply.” They accounted for only three per cent of the workforce in trades, transport and equipment
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038 - Capital
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HOT FUTURE FOR TRADES
Your potatoes aren’t too small for us.
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operators in the 2006 census. “An increase in female representation would certainly bolster the supply side for trades occupations in British Columbia,” the report said. Jayna Wiewiorowski, who co-ordinates the Women in Trades program at Camosun, says the students can move on to further training in a chosen trade or take an apprenticeship in an industry. “Camosun is obviously very well known for our trades training, [so] they have tremendous success finding work — either on or off the Island,” she says. Camosun also offers a similar program to introduce the trades to aboriginal students — another sector of the population that is under-represented in trades, according to the B.C. Trade Occupations Outlook. “Again, we recognize that the representation is very low in trades,” Nielsen says. “So it’s just been a concerted effort to build awareness. ‘Here’s career pathways. These things might be of interest.’ ” Nielsen says both programs are enjoying success, though a sluggish local economy has hurt at times. “Individuals are getting hired. Is everyone getting hired at this point? No.” He says a resurgence in construction has led to increased recruiting for related trades. “Also, our metal trades — sheet metal and metal fabrication — we’re seeing some really positive signs there.” As for Johnston, just four weeks into her program, the 25-year-old student was surprised to discover a passion for automotive repair. On the first day of instruction in that trade, she and her classmates were divided into teams and told to strip and re-build a V-6 engine. “Three to four of us to an engine,” she says. “Tore it completely down until you couldn’t do any more. Put it back together. That was our day. “It was awesome. “I had done mechanics in high school, but had no idea how much I’d love it. It’s been my favourite by far. It’s neat. You’re kind of learning something new about yourself and what your skills are.” lkines@timescolonist.com
merchant and employee services. Make the switch today. For more information, visit: iscu.com/Business
PHOTOS: DARREN STONE, BRUCE STOTESBURY GRAPHICS: ROB STRUTHERS 38
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Victoria General Hospital Emergency Redevelopment, Victoria, Canada
BC Place Stadium Renovation, Vancouver, Canada
The Atrium Building 800 Yates St., Victoria, Canada
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Tel: 250-384-5510 www.wspgroup.com Victoria Steel Water Main Replacement, Victoria, Canada
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TOP INDUSTRIES For the employed labour force, Greater Victoria and British Columbia, 2011 VICTORIA BRITISH COLUMBIA Industry
Number
per cent
Provincial public administration Defence services Elementary and secondary schools Grocery stores Full-service restaurants Hospitals Universities Limited-service restaurants Services to buildings and dwellings Nursing and residential care facilities
12,041 6,445 6,085 5,140 5,100 5,090 5,015 4,200 4,085 4,000
6.7% 3.6% 3.4% 2.9% 2.9% 2.9% 2.8% 2.4% 2.3% 2.2%
Rank
Number
per cent
Rank
1 2 3 4 5 6 6 8 9 10
36,115 10,435 90,385 53,690 65,890 68,320 33,705 53,645 43,095 38,005
1.7% 0.5% 4.2% 2.5% 3.0% 3.1% 1.6% 2.5% 2.0% 1.8%
11 57 1 4 3 2 15 5 7 9
SOURCE: STATISTICS CANADA, CENSUS METROPOLITAN AREA
◗ E M P L O Y M E N T:
WHERE THE JOBS ARE IN VICTORIA
The young face many challenges, even in a diverse city
BY CARLA WILSON
A
lthough Greater Victoria’s unemployment rate may be the envy of the country — it was 4.9 per cent in January and second lowest in Canada — the picture isn’t so bright for younger workers. For those between the ages 15 and 24, unemployment is more than 12.8 per cent, a situation that is mirrored in every province. Ken Thornicroft, professor of law and employment relations at the University of Victoria’s Gustavson School of Business, sees
a clear preference among younger people for regular full-time employment providing the security to be able to achieve goals, such as getting a mortgage to buy a home. But they face a changing labour landscape. “More and more employers are disinclined to have regular full-time employees,” Thornicroft says. “Obviously there are still plenty of regular, full-time employees, but at the margin, it is becoming an issue.” Employers are more willing to offer overtime to existing employees, or hire people to work less than full-time and then boost their hours when necessary, with the aim of saving money, he says. They may also hire contractors rather than hiring regular workers.
TOP OCCUPATIONS For the employed labour force, Greater Victoria and British Columbia, 2011 VICTORIA Industry Retail salesperson Food counter attendants, kitchen helpers and related support occupations Retail and wholesale trade managers Registered nurses and registered psychiatric nurses Administrative officers Cashiers Administrative assistants General office support workers Light duty cleaners Cooks SOURCE: STATISTICS CANADA, CENSUS METROPOLITAN AREA
Number per cent
BRITISH COLUMBIA Rank
Number per cent Rank
7,775
4.4%
1
91,435
4.2%
1
4,005 3,845 3,825 3,155 3,045 3,045 2,800 2,625 2,595
2.2% 2.2% 2.1% 1.8% 1.7% 1.7% 1.6% 1.5% 1.5%
2 3 4 5 6 6 8 9 10
45,170 52,265 38,355 31,720 38,440 33,715 29,940 26,855 29,495
2.1% 2.4% 1.8% 1.5% 1.8% 1.6% 1.4% 1.2% 1.4%
3 2 5 8 4 6 10 15 11
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LABOUR FORCE STATUS
Greater Victoria, 2011 Employed
178,485 Male: 89,815 Female: 88,815 Unemployed
11,540 SOURCE: STATISTICS CANADA, CENSUS METROPOLITAN AREA
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Male: 6,055 Female: 5,485 () !
Baby-boomers staying longer in the workforce also limit the number of job openings, Thornicroft adds. Higher turnover among younger workers will become more common. â&#x20AC;&#x153;The idea that you sign on with one firm in your 20s and you work your lifetime through that, I think that is going to be very, very rare. And I think you are probably going to see a continued growth in self-employment.â&#x20AC;? Greater Victoria has an advantage when it comes to jobs overall. Unlike many B.C. communities founded on one resource sector, the region has matured with a diverse economy. Major employment sectors include governments of all levels, tourism, technologies, hospitals, retail, service industries and manufacturing. All are supported by a range of educational institutions. The Business Council of B.C. is predicting growth of 1.4 per cent in employment this year as the provinceâ&#x20AC;&#x2122;s economy gains strength through to 2015. The aging population opens up what Dallas Gislason of the Greater Victoria Development Agency calls a massive employment opportunity. Thatâ&#x20AC;&#x2122;s the â&#x20AC;&#x153;whole area of health care, health science, of lifestyle consultants and services that this generation will require,â&#x20AC;? he says. The region as a retirement destination will create further economic and job possibilities as the demographic seeks quality food and experiences, Gislason says. That includes more specialty restaurants, organic offerings and locally produced food from area farms. Tourism will remain a strong employment sector, partly fuelled by boomers wanting three-to-four-day excursions and seeking adventure sports such as kayaking. Technologyâ&#x20AC;&#x2122;s future is also rosy, says Gislason, pointing to a decade of significant growth in clean technologies, environmental monitoring and ocean sciences. The retail sector is expected to face headwinds as competition from online shopping means that retailers will have to be innovative.
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Self-employed Mike Vardy reflects on his home office. He runs his own consulting business and travels extensively. BRUCE STOTESBURY
◗ EMPLOYMENT
Why a Victoria father of two believes in the ‘free-agent nation’
42
Capital SPRING 2014
Mike Vardy had enough confidence in himself to leave a steady job in retail management with a healthy paycheque and benefits to strike out on a new independent career path. The 39-year-old father of two now heads his own consulting business, Productivityist. As the name suggests, he helps companies become more productive. “It’s definitely a lifestyle choice,” Vardy says. “I like the freedom that being my own boss gives me.” Vardy believes the self-employed need drive and ability to succeed. He travels extensively. New York, San Francisco, New Orleans, Portland and Vancouver are among his destinations. He is a writer and speaker, works one-on-one with clients, does podcasts and sells self-published books online. But Tuesdays and Wednesdays are “daddy duty days,” when he cares for the children. Vardy represents a new area of employment growth in the region — and across the world, says Dallas Gislason, economic development officer with the Greater Victoria Development Agency. Self-employed make up what he calls the “free-agent nation,” the trend of people creating their lifestyle jobs around their field of expertise.
CLASS OF WORKER Greater Victoria, 2011 Employee
162,900 Male: 79,840 Female: 83,060 Self-employed
24,520 SOURCE: STATISTICS CANADA, CENSUS METROPOLITAN AREA
Male: 14,780 Female: 9,740
Gislason says technology enables entrepreneurs to deliver services to diverse audiences locally and afar. Many are building businesses online. Such firms can be a “oneperson export company” that travels and provides services to out-of-country clients, Gislason says. “They are bringing in money from outside and they are spending it locally in shopping and household goods.” In B.C., 217,900 people were self-employed without paid help in 2011, according to the B.C.-Canada Small Business profile. — Carla Wilson
Follow your path at Royal Roads University School of Business. Learn more at royalroads.ca Yes, agility is essential in today’s business world. Since you’re already thinking this way, you’d be perfect for our School of Business.
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◗ EMPLOYMENT
TOP EMPLOYERS
Check the perks
The capital region’s 20 employers with the largest number of employees as of 2011 Rank Employer 1. 2.
BY CARLA WILSON It pays to work for some of the region’s top employers — perks-wise. Some provide mentors. There are internal promotions and career development, scholarships and sabbaticals. All of the big employers offer a special something.
FAIRMONT EMPRESS HOTEL ✓ Employees have access to Breaker’s, an internal restaurant serving up hot items and salads around the clock — and monthly barbecues on the side lawn
✓ Free dry-cleaning service and 12-week running clinic leading up to the TC 10K ✓ Staff can pursue new jobs and careers around the world with the Fairmont, Raffles and Swissôtels brands ✓ Special room rates for staff, friends and family
ISLAND HEALTH ✓ Staff, volunteers and physicians can earn up to $300 for helping recruit new
3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.
*Total workers
12,226 Province of British Columbia, all ministries Island Health** (previously known as Vancouver 10,009 Island Health Authority) Department of National Defence - CFB Esquimalt 6,000 University of Victoria 4,886 Thrifty Foods Inc. 2,338 2,011 School District 61 (Greater Victoria) District of Saanich 1,611 1,500 School District 63 (Saanich) Government of Canada (all depts. except DND) 1,328 School District 62 (Sooke) 1,300 1,290 B.C. Ferry Services Inc. Camosun College (Lansdowne and 1,102 Interurban campuses) Capital Regional District 1,036 B.C. Transit 879 City of Victoria 771 Victoria Shipyards Co. 700 Canadian Corps of 551 Commissionaires Fairmont Empress Hotel 520 Coast Capital Savings 511 Royal Roads University 427
18. people 19. ✓ Strong public service union agreements providing superior benefits 20. ✓ Free fitness facilities, bike lockers and showers * Total workers include full, ✓ Staff lounges with fireplaces, TVs and computer access PERKING UP: part-time and auxiliary. ✓ Transit subsidies and car pools Island Health staff ** Island Health includes ✓ Scholarships and leadership training RJH and VGH.
B.C. TRANSIT ✓ Free bus pass and a second pass for a family member or dependent
get free fitness facilities, bike lockers and showers.
✓ Gym membership (cost is $5 per paycheque) ✓ Flexible work environment where some staff work part-time from home and others from Langford Transit Centre ✓ Social-club discounts on movies, Victoria Royals hockey games and other outings
THRIFTY FOODS ✓ Employees who have worked full-time for at least a year and never owned a home can qualify for a $1,500 home ownership grant
✓ Training and development programs, health packages, a pension plan and scholarships are available for qualified employees. UVic student Amy Hill, who works in the seafood department in Fairfield, was awarded the Sobeys and Empire Future Leader award. Hill is receiving $10,000 to pay for tuition, plus a paid summer internship at the head office of Thrifty Foods
PROVINCIAL GOVERNMENT ✓ Deferred-salary leave programs and expanding work experience within and between ministries. The province has employees in more than 200 occupations in 20 ministries or agencies. ✓ Long-service awards beginning after 25 years of employment ✓ Flexible work arrangements include telecommuting, job-sharing or compressed work weeks ✓ Recently ratified agreement provides a five-year contract with a 5.5 per cent wage increase
44
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SOURCE CAPITAL REGIONAL DISTRICT
UNIVERSITY OF VICTORIA ✓ Recognition programs for staff, mentors, career development funds and discounts on membership in its athletic facilities ✓ Health benefits include aquafit classes, free lunchtime yoga and meditation classes ✓ While daycare is not free, there is a convenient facility on the campus ✓ Free admission to regular season Vikes games ✓ Free occupational development courses to staff
B.C. FERRIES ✓ Staff get free travel passes ✓ Waterfront views or ocean cruises every work day ✓ Opportunities for advancement, promotions and transfers to locations from the Lower Mainland to Haida Gwaii
CAPITAL REGIONAL DISTRICT ✓ In-house training and development programs ✓ Mentoring program ✓ Leadership development that has been nationally recognized for innovation
045 - Capital
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*European models shown. Models shown for illustration purposes only. Models shown: 2014 Audi Q5 TDI®, 2014 Audi Q7 TDI®, 2014 Audi A6 TDI®, 2014 Audi A7 TDI® 2014 Audi A8 TDI®. From pricing includes freight and PDI ($1,995). Doc ($395), PPSA of up to $45.48 where applicable, licence, insurance, registration, any dealer or other charges, options, and applicable taxes are extra. * Based on the estimated fuel consumption rating, determined using Natural Resources Canada’s approved criteria and testing methods, of 5.3L/100 km (highway) for the 2014 A8 TDI Clean Diesel equipped with automatic transmission and 90L fuel tank capacity. Estimated city rating is 8.7L/100 km. Actual fuel consumption will vary based on driving conditions, driver habits and vehicle’s additional equipment. Refer to the Fuel Consumption Guide for Natural Resources Canada’s rating. See Audi Autohaus for details. “Audi”, “A3”, “A6”, “A7”, “A8”, "Q5", "Q7, “Vorsprung durch Technik”, and the four rings emblem are registered trademarks of AUDI AG. “TDI” and “TDI Clean Diesel” are registered trademarks of Volkswagen AG. © 2014 Audi Canada. To find out more about Audi, visit Audi Autohaus. DL4991427 #31246.
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HOT 900 46
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HIGH-TECH FIRMS IN GREATER VICTORIA
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TECH 20,000
JOBS
Devesh Amatya, senior research biomedical engineer with ViVitro Labs, sets up a laser for cardiovascular-device testing at the companyâ&#x20AC;&#x2122;s Victoria facility. PHOTOS BY ADRIAN LAM Capital SPRING 2014
47
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049 - Capital
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HOT TECH Workers at Quester Tangent assemble components. The company, based in Saanichton, is celebrating 30 years in business.
Q
The perfect storm that led to Victoria’s tech revolution BY ANDREW A. DUFFY
I
t has been almost 10 years since technology eclipsed tourism as this region’s top private industry. But there are still some people wondering just how that happened. The $1-billion tourism industry made sense — a beautiful location in a mild climate with plenty of outdoor activities and creature comforts to appeal to all kinds of travellers. But why Victoria now boasts a $3-billion high-tech industry is a little more vexing. “It’s a good question. … If you looked at it from the 10,000-foot level, you would question what it is about here,” says Bill Collins, an industry veteran and chief operating officer of Quester Tangent, which has been part of the tech sector for 30 years. Collins says technology sectors tend to grow up around bigger centres, and largely “from being adjacent to folks with a need, because necessity is the mother of invention.” And Victoria is, of course, on an Island. “This is not a traditional kind of tech place that evolved,” says Collins. “I think it’s more to do with the kind of people that end up here.” And Victoria appears to have plenty of the right kind of people.
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According to Dan Gunn, executive director of the Victoria Advanced Technology Council, they were drawn here by two universities and a college and 10 federal research labs. “That draws people who are naturally innovative and interested in learning. The other thing about Victoria is, unlike other cities, people often move here for the lifestyle first and then find a way to make a living here,” he says. “That means they are values-driven and find themselves being an entrepreneur. They are willing to make a move and take a risk without the next door being opened. They will do what they have to do to make it work.” Collins agrees, noting that kind of person tends to be smarter and filled with confidence. “You have a collection of people who are very smart, quite highly innovative and risk takers.” But a lot of smart people on an Island does not necessarily translate into a high-tech hub, and certainly doesn’t explain the fact the industry has tripled its economic impact to more than $3 billion within the last 10 years. Gunn believes there was a perfect storm of factors. “In the late 1990s and early 2000s the barriers to entry came down so much because of the Internet and as a result being on an Island was no longer that big a deal.” With companies no longer needing to be anywhere in particular, they opt for a place that provides a lifestyle that would balance off hard work. It worked. There are now more than 900 technology companies on southern Vancouver Island employing 15,000 people directly, though it’s estimated there are more than 20,000 who hold what would be considered tech jobs. There have even been sub-sectors of the industry established, such as the electronic game-design sector, which has grown to 18 local studios employing about 240 people. Scott Phillips, chief executive officer of Starfish Medical, says high-tech’s growth was also fuelled from within as early successful companies like AXYS spun out small firms and re-invested in other start-ups. “People had seen enough entrepreneurs be successful here and they got the idea to start their own companies and others that had been successful were willing to invest,” he says. It helped that the city remained quite small and the tech community remained tight knit. That internal investment continues with the executives behind success stories such as ParetoLogic and Aspreva continually investing in and mentoring new firms. “There is a magical size. If you’re too small, there’s not enough going on, and if you’re too big, people fragment. At this stage everyone wants the whole industry to be successful,” Phillips says. That means senior entrepreneurs are happy to help bankroll and guide new ventures. The hurdles facing further expansion of the industry revolve around talent. “We are working hardest on letting people know there is a tech sector here and there are opportunities for them,” Gunn says. “We are starting to get to be known locally and within B.C., but we need the other areas like Seattle and San Francisco to start to recognize it.” Gunn said Victoria can certainly compete with both on the cost-ofliving issue, and if the industry can hold onto the talent graduating from UVic, Royal Roads and Camosun, there’s no reason it couldn’t be a $4-billion industry in five years. Collins said the lure of the Island lifestyle works. “It’s a tremendous challenge to recruit people, but once they’re here they tend to stay,” he says, noting most of Quester’s senior managers and directors have been with the company for 15 years or more. aduffy@timescolonist.com
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VICTORIA’S
WOW
FACTOR
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BY ANDREW A. DUFFY Boats are reflected in the waters at Oak Bay Marina. With its seaside setting and pleasant climate, the capital region attracts people from all over the world. DARREN STONE
S
ome things just sell themselves: sleek sports cars, sensible shoes, roofing and, it turns out, Victoria. The city, with its waterfront locale, mild climate and myriad charms, is its own strong suit when it comes to attracting newcomers. Clayton Stark, 44, wouldn’t think of living anywhere else. The director of Kixeye’s Victoria gaming studio returned to Victoria in 2012 after a stint in San Francisco. “I was away for a year and wouldn’t have made that stay any longer,” Stark says. “The work-live opportunities are huge. A lot of cities will say they have that, but we really do — I can be hiking a mountain in a rainforest in 15 minutes if I choose to be. I can be in a kayak in five minutes if I want.” The city’s reputation as home to the newlywed and nearly dead is starting to give way, Stark says, adding it has the beginnings of a cosmopolitan city. “There is no end of restaurants and entertainment options.” Kathy McAree, owner of Travel with Taste Tours, says that mix — not to mention a buoyant economy — makes Victoria an attractive package. “I was moved here 17 years ago and had no intention of staying — it’s the food and wine world that kept me here,” she says. “And it’s only gotten better, there’s been a real evolution.” Of course, there’s always that famous mild weather. A 2011 Bank of Montreal report suggested 15 per cent of Canadian baby boomers plan to retire in Victoria. There is also increasing interest from out-of-country buyers — especially at the high end of the real-estate market, which
is seen as a good deal compared with other urban centres. “It’s been very active,” said Scott Piercy of Sotheby’s Realty. Potential buyers comparing Victoria with Vancouver see a more secure city with excellent education facilities. “They see a place for their kids and families to go, then they look at the value.” Mike Holmes, managing broker of Pemberton Holmes Real Estate, says some of that out-of-town investment has buoyed the higher end of the market. “Most of the immigrant money wants to go to the big city, and we can’t delude ourselves that we are big city,” Holmes said. “But we do get some radiated heat from that — people who look at Vancouver and come to Victoria.” When Don Safnuk, CEO of the tech-sector Corporate Recruiters, is looking for people for Victoria, the city is front and centre. “Victoria itself is a huge draw. When we have a position in Victoria, we sell Victoria more than we sell the local tech community,” he says. There are still hurdles, though. Salaries tend to be lower and there is a perception that there are few options available if the job isn’t a good fit. “It’s end-of-the-road syndrome. They wonder: ‘Will I have to uproot my family again and move if the job doesn’t work out?’ It’s a big deterrent and one Vancouver suffered for years,” Safnuk says. Peter Baillie, who recruits for the Victoria-based Executive Network, said many of those looking to find executive spots in Victoria are from the city or have family there. As for the hurdle of lower salaries, Baillie says, “people who want to live here are willing to take a step back in terms of compensation, especially to be in a place where it’s never -33.” aduffy@timescolonist.com
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FOUR GOLDEN VICTORIA MAKEOVERS STORY BY SARAH PETRESCU
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hen it comes to character, Greater Victoria is as easily defined
by its coastal culture and socially conscious residents as its colo-
nial heritage and architecture. How local businesses capitalize on
this can depend as much on space as marketing, especially when a compact downtown is considered.
Capitalizing on our cultural past
‘‘There’s still a wide range of spaces here, particularly for those
fond of heritage buildings,” says Geoff Archer, president-elect for the Canadian Council for Small Business and Entrepreneurship and a professor at Royal Roads University. ‘‘Taking advantage of the characteristics of the space makes sense as an entrepreneur. It’s resourceful.” Archer foresees the city following suit with others in the propensity to renew outdated neighbourhoods and industrial spaces, the creative blossoming of micro lofts into business spaces, parkades into developments with underground parking and unusual business spaces. ‘‘Put a business on a barge downtown? Why not?” There are already many businesses in the city, and outlying areas, making creative use of the space they’re in, some with a particularly Victoria flavour.
1
Green, clean and local
After three years of teaching cooking classes and catering in several spaces around town, London Chef Dan Hayes and his wife, Micayla Hayes, knew they needed to put their business under one roof. ‘‘We wanted to form a tangible identity and be in a space that was modern and clean,” says Dan Hayes. Being in an environmentally friendly building wasn’t at the top of their list, but it was definitely a draw when they had the opportunity to move into one of the city’s first LEED gold-certified developments at 947 Fort St. three years ago. ‘‘The recycling room here is unbelievable. There are bins for absolutely everything,‘‘ says Hayes. The building also has a green roof, energy-efficient plumbing, water-reduction features, a gym, showers and is close to bus and walking routes. Hayes says his customers come foremost for good food and to learn how to cook, but he does see a stronger value placed on sustainability. ‘‘In London, you’d get chefs shouting from the rooftops if they got the season’s first lemons from the Amalfi coast or artichokes from Normandy,” he says. ‘‘Here in Victoria, people want their food to be grown 10 steps from their door. But they also want it to be good.”
Dan Hayes of The London Chef, 947 Fort St.
DARREN STONE
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FOUR GOLDEN VICTORIA MAKEOVERS
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Just a stroll across the park from Fisherman’s Wharf in James Bay is a green-and-white-trimmed character house converted into an understated fresh fish shop — or at least that’s how it appears. The headquarters for Finest At Sea ocean products, at 27 Erie St., also includes an entire fish-processing plant, business office, open-air fish market, and deli and food cart, all expertly enclosed in a residential neighbourbood. “Part of the plan to grow was always to keep expansion in style with the house and the neighbourhood,” says Paul Chaddock, vice-president and partner in Finest At Sea. “We’re fully immersed in the community and they’re our best customers, so it’s important to fit in well.” Filtration systems run under buildings with facades to match the main house, quaint wood steeples mask the sound of fans, and a special forklift runs on an engine that barely whispers.
C onverted heritage house is more than a fish shop
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Paul Chaddock, Finest At Sea at 27 Erie St. DARREN STONE
The idea to house the operation in a heritage home came from company owner and president Bob Fraumeni. He started fishing at age 11 in Gonzales Bay and has fostered a passion for the associated culture and community ever since. “It’s a sweet thing for a fisherman to be able to reach out and sell fish to his own people,” says Fraumeni. With its proximity to Fisherman’s Wharf and James Bay residents, he saw great potential in the 1903 home that’s now Finest At Sea. “It was built by the captain of a schooner so his wife could watch him come into the harbour,” he says. “It was just a drab old house when I bought it, so a lot had to be done.” In 1999, Fraumeni gutted the home and refinished the inside with office space, rooms for overnighting fishermen and eventually a fish shop in the back. It still holds several heritage features, including hardwood floors, a clawfoot tub and nautical memorabilia. While Finest At Sea works with more than a dozen fishing boats, several still come into Victoria’s harbour to deliver fresh spot prawns, salmon, halibut, crab and tuna.
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C ooking a concrete block, sunny side up
It took a photographer’s eye to see a diamond in the rough in an unfinished concrete-block space for rent in Vic West. Actually, it took two. ‘‘We were blown away by the potential,‘‘ says Dean Azim, in the bright, cavernous Cinderbloc Studio at 602 Esquimalt Rd. Azim and business partner Antonio La Fauci liked the space so much they named their business after it. The photography studio is in an nondescript building next to a used-car lot and dog-grooming shop, literally on the other side of the train tracks. When La Fauci first checked out the place more than three years ago, it was a cluttered shell of a room with one invaluable feature. “Eighteen-foot ceilings and southwest-facing windows,” says La Fauci. He shows how the floor-to-ceiling windows helped create the studio’s crown jewel by pulling massive white parachutematerial curtains across the bright light streaming in to create a soft glow. “It’s kind of like putting a softbox over the sun,” La Fauci says. It terms of a work space, Azim and La Fauci went all out on the local connections. They used reclaimed wood from an old house in Oak Bay to build a loft, made a kitchenette from a dismantled bridge in Jordan River, a desk from the old Mayfair Lanes bowling alley and flooring from 120-year-old salvaged fir. Other professional photographers in town already rent the space for shoots, but Azim and La Fauci plan to form a non-profit organization so they can host photographybased talks and events. “It’s an ideal space because you can just take it over and everything is here,” says Azim.
Photographers Dean Azim, left, and Antonio LaFauci placed a massive white parachute material across their front windows to create a soft glow at Cinderbloc Studio, 602 Esquimalt Rd. ADRIAN LAM Capital SPRING 2014
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James Puritch Alumnus, Electronics Engineering Technology Vice President Research & Development, Reliable Controls
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General manager Brad Skerrett looks through the railing with the pubâ&#x20AC;&#x2122;s logo at The Bard and Banker, 1022 Government St. The bank that would later become a pub was built in 1862. BRUCE STOTESBURY
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Matt MacNeil has a history of building pubs around things that are, well, historical. His first venture, The Penny Farthing in Oak Bay, was inspired by watching resident Jack Leonard ride his homemade version of the 18th-century bicycle in the Oak Bay Tea Party Parade. When he was putting together the Irish Times downtown, he researched the history of the building — designed by our most-famous architect, Francis Rattenbury, in the late 1800s as a Bank of Montreal — and restored the original entrance. But his latest venture, The Bard and Banker Public House at 1022 Government St., is perhaps the most historically inspired. “Banks are excellent buildings because they’re usually on a corner, near the best foot traffic, and big,” says MacNeil. The corner building was erected in 1862 for what would later become the Bank of British Columbia. “In researching the building, one of the most interesting
Toasting a historical gem in the heart of Victoria
notes was not just that it had been a bank, but that the great poet Robert Service worked here.” In 1903, Service came through Victoria looking for work and landed a job as the night watchman. The young bachelor slept with a pistol on the second-floor vault, inspiring the name for the pub’s loft bar room. He would later transfer to banks in the Yukon and Prairies, writing poems and becoming one of the country’s most profitable “bards.” “He was both a bard and a banker,” says MacNeil, who envisioned his pub as if it opened in the 1800s in a high Victorian style. Using photos and catalogues from the era, he worked with designers to create the ornate vaulted ceilings, a bevelled glass entrance and an extraordinary display of locally made light fixtures. One of the most interesting features of the pub is the logo, an emblem made up of a Scottish thistle, wild English rose and Irish clover. It comes from a cast-iron fixture that was on top of the building in 1885 and later went to a homeowner in Oak Bay. When MacNeil discovered the emblem, he had it recast into gating on the loft seating above the pub’s bar.
Building on a proud history and bright future, we’re growing business in the Capital City. A strong economy means sustainable prosperity for the entire Region. We’re working to grow our community’s tax base and help businesses thrive. We look forward to working with you.
victoria.ca/business Capital SPRING 2014
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Students work in the nautical simulator lab at Camosun College. ADRIAN LAM
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◗ HOW
VICTORIA WORKS
THE START OF SOMETHING
BIG $7-billion shipbuilding bonanza for the West Coast
BY CARLA WILSON
T
he province’s shipbuilding industry will take a giant leap forward this fall when the first steel is cut on a new federal fisheries science vessel. It’s the start of $7.3-billion worth of ship construction on the West Coast that is expected to provide a generation with hundreds of goodpaying jobs. As many as 17 federal ships will be built by Seaspan Shipyards in North Vancouver and in Victoria, where they will receive finishing touches and go through trials. The first vessel will be delivered in summer 2016. “This is such a great catalyst for change. The next 10 to 20 years is going to be exciting,” said Seaspan chief executive Jonathan Whitworth. “Once you’ve established a facility that is world class and a reputation for delivering on time and on budget, we feel very bullish about the long-term prospects of building both domestically and internationally.”
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The shipbuilding industry
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is already improving. Contracts now total an estimated $10 billion through 2020.
Seaspan is spending $200 million to modernize and prepare for the federal program. More than $20 million will go to Victoria Shipyards, working out of the Esquimalt Graving Dock, to build two facilities for new ship work and ongoing refits to frigates and submarines. Point Hope Maritime in Vic West, Esquimalt Dry Dock Co., and other industries are expected to reap benefits with spinoff work. The federal shipbuilding bonanza arrives as the industry is already improving. Vessel refits, maintenance and repairs and in-service support contracts now total an estimated $10 billion through 2020, according to the B.C. Shipbuilding and Ship Repair Boardâ&#x20AC;&#x2122;s workforce strategy report. All that work translates into expectations for steady production and steady employment in an industry that has been faced with severe downturns in past decades. Openings due to retirement, along with expected employment growth, are anticipated to bring the total number of job openings to 4,237 in shipbuilding and repair and in the plate and fabrication sector by 2020, the report says. It means training opportunities are being developed for everyone from workers on the shop floor and engineers to technology professionals. Esquimalt is home to a new industry-supported Industrial Marine Training and Applied Research Centre, staging a range of training services to fill the need. A $30-million Centre for Trades Education and Innovation is being built at Camosunâ&#x20AC;&#x2122;s Interurban campus. It will include a new marine and metal trades centre with welding, sheet metal, metal fabrication and shipbuilding and repair programs. Ray Fischer, chairman of mechanical and metal trades at Camosun, said the revived shipbuilding industry is giving skilled trades workers more options in their futures. He said once journeymen are trained, they can choose to move between different sectors, such as shipbuilding and construction. With B.C. building ships, the industry also needs skilled people to operate them. Ivan Oxford, an instructor in the nautical program at Camosun, said a shortfall in upper levels of certification among seafarers is looming as many are reaching retirement age. Oxford said nautical graduates are serving on vessels in local waters and around the globe. He said nautical training gives people the opportunity to take on a high level of responsibility early in their careers. The jobs provide attractive salaries and appealing schedules that allow for time off. cjwilson@timescolonist.com
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FIRST NATIONS MAKING
Projects abound as aboriginal leaders seize opportunities
W
ith a hand in thriving local companies, retail development and cutting-edge technology, First Nations communities are playing a steadily increasing role in the region’s economy. Just add up the impact of a few examples: • Salish Sea Industrial Services Ltd., a piledriving and dredging company, earned $9 million in marine contracts in its first year. A joint venture of the Esquimalt and Songhees First Nations along with Ralmax Contracting, it counts 10 aboriginals among 15 employees, a number expected to grow as the company gains more contracts. • The Tsawout First Nation expects to generate 500 construction jobs and 1,000 to 2,000
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long-term jobs with the development of a retail complex on the Saanich Peninsula. • The tiny T’Sou-ke First Nation near Sooke has gained a big reputation as a leader in solar energy. The community has joined TimberWest Forest Corp. and EDP Renewables Canada in a $750-million wind-power project that could power 30,000 homes on the Island. Aboriginal leaders across B.C. are putting economic development at the forefront, says University of Victoria assistant professor Brent Mainprize, who specializes in entrepreneurship and works with a number of aboriginal communities. “It is the perfect storm at the moment,” says Mainprize, a faculty member at UVic’s Gustavson School of Business. He works on entrepreneurship with 25 First Nations com-
munities in northwest B.C. through the Tribal Resources Investment Corp. “Momentum has been gaining slowly, but I think in the last five or six years it’s just been exponential,” Mainprize said. Andy Thomas, hereditary leader of the Esquimalt First Nation for more than 35 years, thinks it’s about time aboriginals played a bigger role in the wider community. “We’ve been kept out of the economy for too long, but now we are back,” Thomas says. The two barges and cranes that make up the Salish Sea Industrial fleet stand as reminders to the Songhees and Esquimalt nations and surrounding communities that a viable business is a path out of poverty and away from stereotypes. “For us, Salish Sea Industrial is a big oppor-
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ECONOMIC WAVES
A family takes a brisk walk along the breakwater at Ogden Point, with the Olympic Mountains behind. The Unity Wall Mural, a tribute to the artistic traditions of First Nations, transformed the breakwater into an enormous canvas. ADRIAN LAM tunity to become visible, because we’ve been invisible for a long time,” Thomas says. He notes that Ogden Point, now a cruise-ship terminal, once held a fish-processing plant and the sawmills that used to dot the city’s landscape had provided his generation with steady, well-paid work. But as the economy changed, the work those industries provided dried up, leaving First Nations with fewer employment opportunities. “When I was a boy, we worked in fish or wood, but it was all gone in the 1980s,” Thomas said. “We had 95 per cent employment back then. When it all fell out, we had 95 per cent unemployment.” Salish Sea Industrial secured a $4-million deal to replace the Royal Victoria Yacht Club docks. It also recently struck a deal with the
Greater Victoria Harbour Authority to drive piles for docks that will serve as a new service to shuttle cruise passengers from Ogden Point to the Inner Harbour. “Having the opportunity to own a business gives our people a chance to be part of the workforce and make a decent wage,” says Thomas. “A worker can buy a new car or a computer for his child to go to school. This is a good beginning.” Harbour authority CEO Curtis Grad sees more partnerships in the future. He notes the authority was incorporated in 2002 with provisions for the Songhees and Esquimalt nations to have representatives on the board of directors. “There’s a very specific clause in our constitution that talks about working co-opera-
tively with the nations on economic-development initiatives,” Grad says. “It’s something that’s been in our DNA since the day we were created [and] we’re really trying to put some momentum behind that now.” The authority’s close links with the Songhees and Esquimalt people have already led to projects such as the Ogden Point breakwater’s Unity Wall, a mural created by First Nations artists. In Central Saanich, the Tsawout First Nation will mark a new beginning this summer when construction begins on an overpass leading to a retail development it hopes will pump new life into its economy. It would connect consumers with the 650,000-square-foot Jesken Town Centre east of the highway, which will also begin going up in summer. Capital SPRING 2014
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It’s a project — with the potential for thousands of jobs — that band members have been looking forward to for more than 20 years. Projections call for the retail centre to open in the first part of 2016. “The community has been waiting patiently and they’ve been excited about this ever since we started getting close,” says Tsawout band councillor and former chief Allan Claxton. Although Statistics Canada puts the unemployment rate for the First Nation at about 16 per cent, Chief Harvey Underwood says it’s really between 60 and 70 per cent. “I think it will benefit the whole area,” Underwood says. “There’s opportunities for the four villages [of the Saanich Nation] and opportunities for the non-native people, too.” Keith McRae, of the Property Development Group, which is a partner in the project, says although there is no formal agreement to provide a certain number of jobs to First Nations, “it is our collective goal through our partnership to provide job opportunities to the Tsawout First Nation.” Near Sooke, the T’Sou-ke First Nation is already reaping some of the benefits of its own unique development, taking advantage of new technology to support traditional lifestyle values and help them thrive in a modern economy. With a membership of about 250, the T’Sou-ke became the first aboriginal community in the world to be designated a solar community in 2013. Solar programs around the capital region and in several First Nations communities around the province have been modelled on what T’Sou-ke has done. The First Nation is also in the process of developing wind power, an income-generating wasabi plantation and revitalizing the seashore. It has attracted academics from around the world to study its successes, offered mentorship to other aboriginal communities and placed an emphasis on culture. “When we were all involved in developing a collective vision to provide a safe and healthy community, we looked far into the future and said: ‘What do we need to start right now to ensure a secure future for our grandchildren’s children?’ ” says T’Sou-ke Chief Gordon Planes. “Energy security, food security, cultural renaissance and economic self-sufficiency were identified as priorities.” The band’s ambitious income-generating project involves building three large greenhouses with the goal of producing half an acre of wasabi a year. The root grows year-round, harvested every 12 to 15 months. Already, the project employs about 12 people. The solar program, which included installation of photovoltaic panels and a solar hot-water heating system, created about 12 jobs with another eight people involved in home conservation programs. But it also provided inspiration and a model for others in the capital region. The T’Sou-ke run outreach programs that include tours for school children as well as an ecotourism program, employing about another eight people. The $750-million wind-power project — a partnership with TimberWest Forest Corp. and EDP Renewables Canada — could generate power for up to 30,000 homes, a significant number for the Island, which gets two-thirds of its electricity from the mainland. It’s expected to create more than 350 construction jobs and as many as 50 permanent jobs.
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CRD POPULATION ESTIMATES Persons 65 years and older 150,000 Total persons 65 to 90+ in the CRD (Percentage of total CRD population)
124,659 (28.2%)
132,135 (28.9%)
111,092 (26.2%)
120,000 95,821 (23.7%)
90,000
77,500 (20.3%)
80,425 (20.9%)
60,000
30,000
0
2014
2015
2020
2025
2030
2035
65-69
70-74
75-79
80-84
85-90
90+
SOURCE: B.C. STATS
THE NEW RETIREMENT BY ANDREW A. DUFFY
G
one are the days of retirees quietly slipping into their golden years. In fact, says Susan Eng of seniors advocacy group CARP, the word “retirement” is almost irrelevant. “Now it’s more of a period of transition. It’s more like people stop the jobs they did for 20 years and do something else, be it paid or unpaid.” Eng says baby boomers, now ages 50 to 68, have always been defined by their engagement with the community. “They are more engaged and they want to stay more engaged in retirement,” she says, noting that can translate into working longer, leaving careers for a different kind of job, or volunteering. “Sometimes they get remarried, they move countries, they take on completely different engagements, often following a passion. “They are not shutting down.” Susan Brice, director of Victoria Silver Threads, agrees. It’s hard to define retirement as just one thing. After all, seniors can be 60 to 100 years old, a range that covers
almost three generations. “I think there is a movement within that baby boomer group, a group that has always set the trends, that they are redefining what it is to be a senior,” Brice says. “They’re not shrugging off any of the realities of it, but the general idea is: Anything is possible.” With seniors generally healthier and living longer, they often can’t fathom doing the traditional retirement activities, Brice says. Six years ago, Silver Threads started its Experience Works program to help prepare seniors to re-enter or find new opportunities in the workforce, offering guidance on putting together resumes and developing interview skills. “Freedom 55 isn’t so much a thing anymore,” Brice says. “The lifestyles shown in advertising and some media show a lot of positive images that require significant income to maintain it over 25 to 30 years.” Eng notes the trend of continuing to work has also been driven by low interest rates — savings haven’t been earning as much — and the economic downturn that “devastated savings” in 2008-09. Retirees often find themselves helping their kids out and dealing with the cost of unexpected medical challenges.
“The expenses can be unbelievable,” she says. As a general rule, most seniors are not in a financial position to fund a retirement of travel and leisure, says Mike Watkins, a wealth adviser with ScotiaMcleod. “They are living a lot longer and they are more active … and people’s expectations have increased for the type of retirement they want to have,” Watkins says. “At the same time, their capacity as a group to achieve those expectations has largely diminished.” Watkins says with corporations reducing or phasing out defined-benefit retirement plans and moving toward a defined-contribution plan — which puts the onus for saving on the employee — a growing number of people are looking at an underfunded retirement. “So while people’s expectations for their retirement activity have gone up, their expectation for working in retirement have changed as well,” he says. “Now the concept of retirement is you may quit your main career, but that doesn’t mean you won’t pick up work or consult. It’s more of a transition or change than a dead stop.” aduffy@timescolonist.com Capital SPRING 2014
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V Viking Air CEO Dave Curtis, his dog A.J. and a new Twin Otter destined for the United Arab Emirates. Right, the assembly room. PHOTOS BY DARREN STONE
LET ME TAKE YOU HIGHER
BY DARRON KLOSTER
Viking Air chief executive Dave Curtis is still busy building airplanes and selling them worldwide. It has meant long days and even longer trips to air shows and remote places, where short-range airlines, mining and oil companies and militaries covet the tough Twin Otter now rolling off the assembly line at an impressive clip in North Saanich. But Curtis is also quietly charting a new course for Viking Air. The man who transformed a small aviation maintenance company into Western Canadaâ&#x20AC;&#x2122;s only aircraft manufacturer has several other deHavilland designs to consider, including the workhorse Beaver, a single-engine Otter or the big Buffalo, a transport plane also used for search and rescue. Viking Air acquired the type certificates to seven de Havilland designs from Bombardier in 2006 and started production of its Series 400 Twin Otter in 2009. Viking Air has completed its 50th Twin Otter in less than four years and has an enviable two-year backlog of orders for 50 more. The impressive airplane, which includes more than 400 modifications and
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Clockwise from top left: Sheet-metal mechanic Cole Fulton works on a Twin Otter cockpit; the plane’s wings are assembled; sheet-metal mechanic Tim Savard works on an engine cowling. has a base price of $6.95 million, is now being built in 10 business days as the customer base for the versatile, 19-seat plane has expanded to 23 countries. The latest deal in February cracked open another new lucrative market in Japan. Of the 844 Twin Otters made by de Havilland over 22 years starting in 1965, more than 600 are still in operation. But existing customers are replacing fleets and emerging markets are discovering the Twin Otter’s durability and usefulness and the orders keep coming. And with that comes interest in other de Havilland planes. The efficiency of the operation and continuing demand 72
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has the company and its owner, Toronto-based Westerkirk Capital, mulling long-range plans. The private equity firm, which acquired Viking in 2003, has a portfolio that includes investments in hospitality, manufacturing, real estate and radio stations across Canada, but it’s clear Viking is a gem in Westerkirk’s crown. Westerkirk manages money for the family of Sherry Brydson, the eldest granddaughter of the late media baron Roy Thomson. Brydson, who lives in Saanich, is Canada’s wealthiest woman — and third-richest Canadian — with her holdings valued at $6.5 billion, according to the Bloomberg Billionaires Index. “All of the stakeholders are very supportive of growing
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and expanding the business ... as long as I can demonstrate there’s a business case for it,” Curtis says. “But it’s a long-term view,” he cautions. “Aviation isn’t for the faint of heart.” Indeed, Curtis has watched Bombardier struggle with its delayed C-Series aircraft in the turbulent long-haul plane market and Boeing and Airbus hit ups and downs on production and deliveries associated with geo-political and economic events. As a “boutique airline,” however, Viking Air has managed to avoid those bumpy rides by building a plane that hasn’t been reproduced in decades and remains in demand. The company is also servicing a short-haul market that isn’t as volatile. The Otter and Beaver, even the bigger Buffalo, are renowned for their short takeoff and
VIKING AIR HAS AVOIDED THE INDUSTRY’S BUMPY RIDES BY BUILDING A PLANE THAT HASN’T BEEN REPRODUCED IN DECADES AND REMAINS IN DEMAND.
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landing capabilities and are found around the world — in jungles, deserts, mountains, the Arctic and at the South Pole. Remaking the Beaver or the single-engine Otter are the most likely expansion plays because Viking has detailed drawings of parts and the tooling capabiliites. But overlapping production with the Twin Otter on the same site and assembly lines isn’t likely possible for the sheer logistics and disruptions to its Twin Otter line, says Viking spokeswoman Angela Murray. If that means a new plant here or in another country, nobody is saying. Producing a new version of the Buffalo hinges both on political and business decisions. The tactical transport plane ended production in 1982 and the last of 122 aircraft built were delivered in 1985. Curtis continues to keep channels open with the federal government on the Buffalo replacing the Canadian military’s fixed-wing searchand-rescue aircraft — or at least the West Coast portion. The fleet currently has six Buffalo and 13 Hercules aircraft. The Buffalo planes are more than 40 years old and there are ongoing mechanical issues and shortages of spare parts. Curtis has no doubt about the Buffalo’s capabilities. “You can drive a fully loaded Hummer into a Buffalo and land it on a baseball diamond,” he said. “It’s very good at what it does.” But a good business case for Viking is another thing. While the Buffalo “has a modest space” in the transporter market and is smaller than the Hercules and Cessna 295, the de Havilland aircraft isn’t pressurized, which allows it to fly long periods at lower altitudes “You can — perfect for search and rescue. Curtis admits, though, it would drive a fully have be more than replacing six loaded Hummer planes for Viking to start any production. “We would have to into a Buffalo own the niche and have a marand land it ket for it,” he says. “We built Viking Air to last, so on a baseball if there’s a market for a new plane diamond.” that we feel will sustain our company in the long term, we will do that.” For now, the Twin Otter is enjoying a resurgence with long-time users and a burgeoning base of new customers in emerging markets. Asia is huge. India is a massive untapped market, as are China, Vietnam and Indonesia. “Those countries are ramping up tourism, and mining and forestry exploration,” said Murray. “They have small landing strips or islands, only accessible by water. And they have to deliver supplies, the mail or people. “In Turkey, a startup company said they can fly to a site in 15 minutes, where it used to take two hours by boat.” In its sprawling production facility on the fringes of Victoria International Airport — fittingly on a street called de Havilland Way — and a final assembly facility in Calgary, Viking has massed a workforce of 600 and a yearly payroll of $36 million. It’s been a defining
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economic engine for the region with good-paying, skilled jobs, but it wasnâ&#x20AC;&#x2122;t easy ramping up production to meet demand for a completely retooled Twin Otter. Viking developed its own plan to build its trained workforce and worked in conjunction with post-secondary schools such as Camosun College and BCIT to tailor programs that now feeds its workforce. The size of the workforce has also spurred the region to examine better housing and transportation options on the Saanich Peninsula. Viking builds almost the entire airplane from its own manufactured parts. The PT6-34 engines are made by Pratt Whitney Canada in Lethbridge. The avionics suite comes from Honeywell in the U.S. and the tail sections from Fleet Innovations in Port Erie, Ont. The various pieces are trucked to Calgary for final assembly. Tim Savard drills rivets into cowlings that secure the engines of the Otter. Heâ&#x20AC;&#x2122;s one of hundreds on the sprawling floor of Vikingâ&#x20AC;&#x2122;s main plant, assigned in workstations that piece together the thousands of parts that make up the plane. â&#x20AC;&#x153;When you grow up making models of airplanes, this doesnâ&#x20AC;&#x2122;t feel like work,â&#x20AC;? Savard says. â&#x20AC;&#x153;Now I donâ&#x20AC;&#x2122;t only get to make a real airplane, but a Canadian legend.â&#x20AC;? Savard has been working at Viking for six years after taking the Viking-inspired sheet- metal course at Camosun College. â&#x20AC;&#x153;I look at it like itâ&#x20AC;&#x2122;s a life job. A lot of people just go place to place, make enough money, but donâ&#x20AC;&#x2122;t really enjoy it.â&#x20AC;?
GNS. The classroom beyond.
dkloster@timescolonist.com
Countries where Viking Air has delivered or have scheduled orders for the Series 400 Twin Otter: UNITED STATES
BANGLADESH
PANAMA
VIETNAM
PERU
MALAYSIA
CHILE
INDONESIA
CARIBBEAN
PAPUA NEW GUINEA
NIGERIA
AUSTRALIA
LIBYA
JAPAN
SEYCHELLES
CHINA
MALDIVES
SWITZERLAND
UNITED ARAB EMIRATES
TAHITI
TURKEY
SINGAPORE
RUSSIA
GNS Student noun 1. A child educated through the IB programme synonyms: global citizen, learner for life Glenlyon Norfolk School is a top IB World School in Canada. XXX NZHOT DB t Do your best through truth and courage Capital SPRING 2014
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◗ GIVING
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BACK
Major Victoria charity has humble roots BY PEDRO ARRAIS
I
f only Burges Gadsden could see it now. He launched the Victoria Foundation 78 years ago with a $20 donation from his mother Fanny. Gadsden’s vision of a community endowment fund became a reality through an act of the B.C. legislature in 1936. The charity’s first meetings were held in the Sunshine Inn, the city’s only soup kitchen in the dark days of the Great Depression. Gadsden was the inn’s manager. From those humble roots, the foundation today manages a fund of just under $200 million, disbursing $12.4-million in grants in 2013. The organization is the second-oldest community foundation in Canada and sixth-largest based on assets under its administration. It is considered the godfather of volunteer groups, helping dozens of agencies around the capital region. But unlike some groups, the foundation doesn’t have a high profile when it comes to fundraising. “People who donate to us are more quiet about their giving,” said Sandra Richardson, CEO of the foundation. “The majority of the time they don’t want recognition of their philanthropy. Sometimes, the gift only comes after a person has passed away.” What sets the foundation apart is how it has been able to inspire donors with causes that befit the community. Over the past eight years, the foundation has published Victoria’s Vital Signs, an annual checkup on what needs work and what is being done well in the region. “The report helps the board set priorities, be it homelessness, childcare or food security,” said Richardson.
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CEO Sandra Richardson in her Victoria Foundation office. ADRIAN LAM
‘‘
People who donate to us are more quiet about their giving. The majority of the time they don’t want recognition of their philanthropy.
But the foundation is more than just a money program. It is also rich in knowledge, acting as a resource for the many charities that have sprung up over the years. “We may not have all the answers, but we know where to find the experts.” This climate of co-operation has led to the foundation joining forces occasionally with other funders to achieve a greater impact. “We see the Victoria Foundation as a partner in philanthropy as we fund similar projects,” said Catherine Schissel, director of community investment for the United Way of Greater Victoria. “By collaborating with them, we can often create a greater impact though our synergy.” The foundation doesn’t rest long on its laurels, with a program that hopefully will cultivate the next generation of people interested
in serving the community. The Victoria Foundation Vital Youth program gives high-school students hands-on experience in philanthropy and community service. Launched in 2003, the program has grown to eight area schools. Students are given $2,500 to distribute to registered charities of their choice. What the students learn while researching worthwhile projects in their communities are invaluable lessons they take with them long after they graduate. “It is heartwarming to see the thought that goes into these projects as they do their homework,” said Richardson. “It teaches them to ask, ‘How can I help?’ and hopefully creates a passion for getting involved in their community.” parrais@timescolonist.com
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◗ RECYCLING
Garbage in, products out END USES OF BLUE BOX MATERIALS Curbside pick-up represents about
45%
BLUE BAG BLUE BOX
EMTERRA GROUP Curbside Pick-up
of material sorted at Cascades Recovery Inc. The rest comes directly from the commercial sector
CASCADES RECOVERY INC. Sorted By Kind
MIXED MATERIALS
FIBRES Newspaper
Cardboard
Mixed Paper
Plastic
Glass
Tin
Lehigh Hanson Materials (Victoria)
Pacific Metals Recycling International (Vancouver)
*Includes toys, batteries, styrofoam, etc. Non-Blue Box Material*
Transported To Processor Until recently, newspaper was shipped to SP Newsprint in Newberg, Oregon. But Cascades plant manager Doug Stevens says the company is looking for a new processor, after the mill stopped accepting newspaper – joining a trend of other newsprint processors leaving the business
RockTenn (Seattle, Washington)
America Chung Nan Inc. (China)
Merlin Plastics (Annacis Island, B.C.)
Port Townsend Paper Corp. (Port Townsend, Washington) #2 Coloured #2 Natural #1 – #7 Mixed
America Chung Nan Inc. (China)
Ground and mixed with other recycled products such as concretes, asphalts and other aggregates to make a road-base
Schnitzer Steel Industries (Victoria) Processed at tin and steel smelter
End Use • #2 Coloured oil bottles
• Newsprint • Molded pulp packaging • Cellulose insulation • Gyproc paper
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• Cardboard boxes and liners • Boxboard for cereal boxes • Medium paper rolls
• Boxboard products • Duroid shingles • Pressed packaging material • Corrugated cardboard liners
• #2 Natural non-food containers: detergent and shampoo bottles, shipping pallets, grocery bags • #1 – #7 "superwood" plastic lumber
• Road-base
• New tin cans
Ellice Recycle (Victoria) Hartland Landfill Facility (Saanich)
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One person’s junk is another’s profits, and this recycler is definitely plugged in
BY AMY SMART
oug Schell looks over his domain: Colourful electrical wires look like a giant serving of spaghetti at the centre of a warehouse. Outdated televisions sit next to discarded mini-fridges and washing machines. And just across the driveway, the “bulb eater” breaks down burnt-out fluorescent lights, filling a 45-gallon drum with the remains of more than 1,000. To the average person, it appears to be junk. But to the general manager of Ellice Recycle, it represents profit. “These are all commodities,” Schell said. More than 1,000 tonnes of materials pass through Ellice Recycle’s dropoff and commercial facilities each month — a significant portion of would-be landfill fodder that instead is finding new life through a market of traders. Most valuable is the copper, which sells for $2.50 to $2.80 per pound. Least is the garbage that must be taken to the dump at Ellice’s expense. After sorting and processing, recyclable material may end up in markets as far away as China. While recycling has been common practice for centuries, the industry surrounding it has diversified alongside the rise of new products, which now include everything from plastics to electronics. While Ellice primarily works with materials not found in a blue box, about 45 per cent of materials sorted at Cascades Recovery across the street come from curbside collection. That means its volume has increased with landfill bans on certain materials — such as the corru-
D
This is not what you’ll find in your average blue box. Doug Schell, of Ellice Recycle, works primarily with non-traditional recycling materials such as electrical wires, mattresses and outdated televisions. Capital SPRING 2014
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But there’s still potential. While there has gated cardboard ban in 1993, the mixed-paper been no industry study specific to the Capiban in 1995 and the broader paper ban in 1998. tal Regional District, a market study of Metro “Each ban increases our volumes,” said Vancouver conducted by Cascadia ConsultCascades Recovery plant manager Doug ing Group found that the city generated 1.3 Stevens. million tonnes of potentially recyclaThe most significant shift, for ble material in 2011. anyone connected to curbside Of that, only 630,000 tonnes recycling, is happening now. are recycled, while 650,000 A controversial new stewVancouver generare thrown away. Excludardship organization called ated 1.3 million tonnes ing organics and electronMulti-Material B.C. is joinof potentially recyclable ics, the disposed material ing the mix by taking material in 2011. Of that, is worth about $53 million responsibility for printed only 630,000 tonnes were and the potential cost savpaper and package recyings of the disposed recycling and disposal in May. recycled, while 650,000 clables is $28.5 million. It follows a provincial decwere thrown away. In the CRD, waste diverlaration in 2011 that the sion increased to 48 per cent industries that produce those in 2012 from six per cent in 1989. materials should pay for the Its goal, helped by the rollout of products’ end-of-life management, kitchen scraps diversion programs, is to reach instead of local governments. 70 per cent in 2015. It’s too early for established industry memIn general, Schell expects the types of bers and businesses along the supply chain recyclable materials to grow. to know exactly what that means. “There are definitely some new markets “Everything could change or nothing will that will come on stream,” he said. “In Vanchange, we don’t know,” Stevens said. couver, they started the cigarette-recycling Having more players in the industry has program and we’re looking at getting involved meant more competition and shrinking marin that here. Cigarette waste worldwide is the gins.
No. 1 material that’s thrown away.” Recycling innovations don’t always work out as planned. Stevens points to an ill-conceived product released around the Olympic Games in Vancouver: Coca-Cola’s “PlantBottle,” made of plastic with an additive that causes it to break down. “It actually had a negative impact on the recycling industry,” Stevens said. “When it was being recycled into new products, the new products started to break down or had potential to break down before it even reached the consumer again.” But even for those innovative new ways of recycling would-be trash, public will is crucial. Municipalities need to keep tipping rates expensive at landfills, for example, in order to keep material flowing into the recycling stream instead, Schell said. “That allows recycling to sort of find its sweet spot going forward.” asmart@timescolonist.com
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A kitchen-scraps ban, starting in 2015, is one way to extend the life of Hartland landfill in Saanich. TIMES COLONIST
◗ RECYCLING
Long live our landfill BY AMY SMART artland landfill is filling up. Some might consider it time to plan for alternatives like incineration or building another landfill. But the Capital Regional District is aiming for something different — eternal life. “What we’re hoping to do is limit as many items entering our landfill as possible,” said Monique Booth, communications and education development supervisor. A zero-waste model may not be a reality right now, but the idea is to repeatedly study what’s going into Hartland, and then find ways to divert it. “[We identify] what’s in our waste stream. Based on that, what other initiatives can we do to whittle that waste stream down?” Booth said.
H
The kitchen-scraps program, which set a 2015 ban on organics, is one bid for life extension. It’s expected to add an extra 17 years to the current life expectancy that would bring us to 2035, based on current habits. Earlier bans, which have directed products such as corrugated cardboard and paper into blue boxes, have led to the diversion of 48 per cent of would-be landfill materials. The kitchen-scraps program is expected to increase diversion to 70 per cent. True zero waste depends on a number of key actions, recycling consultant Reid Hudson said. First, manufacturers make products that can be 100 per cent recyclable. Second, infrastructure is in place to deal with it. Third is political will to make those things happen. Booth said it’s also a matter of changing consumer behaviour. “Our direction now is to move up the hierarchy, in the sense that if we reduce or reuse these items, we don’t even have to deal with recycling them,” she said.
“It’s about only buying what you need, buying items that are higher quality so you don’t have to replace them as frequently. And it’s great to compost … something like a quarter of the food in Canadians’ fridges goes to waste. So it’s about being smart with your purchases and only buying what you need.” There may always be some residual waste that has nowhere to go but the landfill, such as asbestos. So for now, zero waste is more a philosophical objective than a pragmatic one, said Tom Watkins, CRD manager of environmental resource management policy and planning. But looking at alternatives won’t be necessary until we’re closer to the fill date. “There are options thereafter,” Watkins said. “But that’s a long ways off.” asmart@timescolonist.com
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Home of Fun, Flirty, Fabulous Fashion
◗ M OV E R S
Dennis Washington owns Victoria Shipyards, among an array of other companies. UNIVERSITY OF VICTORIA
The billionaire you might not know A key player in capital’s future
BY C A R L A W I L S O N ou probably haven’t met billionaire industrialist and philanthropist Dennis Washington, but he plays a big role in Greater Victoria. Washington’s diverse group of companies includes Victoria Shipyards, a job-creator in Esquimalt where it generates dollars that circulate through the capital region’s economy. Montana-based Washington will further strengthen ties in Greater Victoria on June 4, when he becomes the Distinguished Entrepreneur of the Year, an honour bestowed by the University of Victoria’s Peter B. Gustavson School of Business. His is an inspiring story of a young man from modest beginnings whose determination and hard work led him to success. Business savvy and a life-long work ethic propelled him to billionaire status. Victoria businessman Peter Gustavson, chairman of UVic’s Distin-
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guished Entrepreneur of the Year committee, said, “Dennis was an entrepreneur and a very hard worker by an early age. He grew up with little wealth so he understood the importance of hard work and the value of money.” Washington took calculated business risks and worked hard to make sure he did not fail, Gustavson said. “Dennis has had drive and vision his whole life; the reasons for his success are not a secret. He has the ability to see opportunities where others cannot and the drive to take risks and aggressively pursue them.” Washington is ranked 71st among Forbes’s list of wealthiest Americans, with a estimated net worth of $5.8 billion. He’s ranked 233rd among the world’s billionaires. The Washington Companies include rail and marine transportation, aviation, environmental remediation, heavy equipment sales and leases, as well as mining. Also part of the group is North Vancouverbased Seaspan Marine Corp., owner of Vancouver Shipyards, Vancouver Drydock and Victoria Shipyards, which is preparing for an estimated $7.3-billion worth of federal ship building. Victoria Shipyards is carrying out multimillion-dollar and multi-year contracts to modernize and maintain federal frigates
and Canadian submarines. Dennis Washington’s roots are in the Pacific Northwest. He was born in 1934 in Spokane, Wash., moving to Missoula, Mont., as a youngster, said a UVic-supplied biography. “Like a lot of people in the 1930s, we didn’t have a lot of money,” he said. “But my parents were good people. My mother was a very loving person and my father was a tough, strong guy.” Washington moved several times in his childhood, living in California, Washington and Montana, changing schools each time. By age 14, he was self-sufficient, earning money boxing groceries, delivering newspapers, shining shoes and working at service stations. In his final high school years, Washington lived with his grandmother in Montana, the biography said. “She gave me love and stability at a time in my life when I really needed it. She believed in me and my dreams and my desires.” Washington went into business for himself in 1964, backed by a loan from a Caterpillar dealer. By 1969, he was the largest contractor in Montana. From there, he grew and diversified his business empire. Dennis and his wife, Phyllis, are devoted
to philanthropy, believing the “greatest benefit to society is made through uplifting individuals,” according to the Dennis and Phyllis Washington Foundation website. The foundation focuses on education, arts and culture, health and human services, and community services. Funds come from Washington Companies profits and personal contributions from Washington family members. The foundation has donated more than $130 million to worthy causes. “Besides helping people access the basic necessities of life, Dennis and Phyllis have a particular interest in youth and education,” the Foundation’s website says. The couple’s core values are defined as “integrity, compassion, courage, vision, and perseverance.” The Washingtons’ 64,000-acre family ranch in Oregon was donated to the Young Life organization. cjwilson@timescolonist.com
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BRUCE CARTER Economic diversity brings stability
S
o, what is Greater Victoria’s major industry? Well, the answer is that we have several major industries. And that’s a good thing. The major benefit of this diversity to our region’s economy is stability. Our diversified economy includes a multitude of sectors including top industries in tourism, advanced technology, marine, government and advanced education. Additional sectors include construction, retail, agriculture, and arts and culture including film production. These strong sectors not only make this a great place for employees to live, but also a great place for businesses to invest. Greater Victoria’s diversified economy
makes it more attractive to businesses than other locations because the economy is not as affected by global market changes. To illustrate this point, cities with just one major industry, like forestry, may face devastating effects with changes in lumber prices or fluctuations in the global market. Time and again, single-industry-dependent communities have been severely impacted when one of the major employers struggles with economic downturns. Although our region is synonymous with tourism, it is important to understand the broadening sectors that make our region strong. The tourism industry contributes an estimated $1.9 billion to the local economy. However, growing sectors influence our broadening base of industries. To understand the importance of other industries to our economy, we need to examine their contributions. Advanced technology, another top sector, significantly contributes to the regional economy and employs as many as 13,000 directly, with an estimated $1.95 billion all-inclusive in revenues. Two other top secRelax in the comfort of a high-back leather lounger while you tors include enjoy the many benefits our Seawest Lounge has to offer – including Starbucks® Coffee, tea, juice, fresh pastries, as well as advanced education, a wide selection of newspapers and magazines. with three post-secondary institutions within the capital region as well as the shipbuilding and repair industry, which in 2013 was estimated to generate $750 million and is expected to
an oasis
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Bruce Carter, chief executive officer, Greater Victoria Chamber of Commerce
increase to $1.4 billion in revenue in the coming years. The stability that comes with a diversified economy provides businesses and residents security. In the most recent global recession, Greater Victoria fared well, with only minor changes in unemployment. Reaching a high of only 7.4 per cent (December 2009), which was below the provincial average for that period, and has dropped ever since. The end of 2013 saw one of the lowest unemployment rates in the country, at about 4.5 per cent. Even within the last few years, this diversification trend is growing. In 2006, the highest number of businesses by industry was at 16 per cent; by 2011 that had changed to 14 per cent. The number of businesses by industry are increasingly less concentrated. Greater Victoria works to advance existing business and attract new economic opportunities. This speaks to our efforts in creating a stronger business environment with a more robust and sustainable community, further promoting the vibrant community where we love to live and work. This stable economic environment provides a key additional benefit for both established businesses as well as those considering investing in the area.
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David Tennant (Doctor Who) as Det. Emmett Carver and Anna Gunn (Breaking Bad) as Det. Ellie Miller in a scene from Gracepoint, now filming in Greater Victoria. FOX BROADCASTING CO.
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here’s nothing like an extra tax break and a bigbudget TV series to pull a film-friendly region out of a production slump, says Victoria film commissioner Kathleen Gilbert. This double-whammy saw Gilbert and other stakeholders in the local film and TV production scene recently breathe a collective sigh of relief twice. The first was in December when Shine America announced that Gracepoint, its 10-episode remake of Broadchurch, ITV’s British crime drama starring David Tennant, would shoot here this year. It happened again on Feb. 18, when the B.C. government announced the capital region would finally be eligible for an additional six-per-cent distant location tax credit on labour expenditures, the provincial incentive introduced in 2008 to encourage production outside the busy Vancouver “studio zone.” Until then, the tax credit was available only to producers filming north of Whistler, east of Hope and everywhere except the capital region on Vancouver Island — including the Cowichan Valley, where the producers of the series Spooksville took their first-season business. “The lack of the distant tax credit was the nail in our coffin,” said Gilbert, recalling how production revenues plummeted to $7.3 million in 2008 — less than half of what was generated here in 2007, and far short of record-breaking revenues of $28 million in 2006. Coincidentally, $7.3 million was the same amount generated here in 2012 from 36 productions, including Poker Night, Kid Cannabis, Stonados, Bachelor Canada and the Hallmark movie Cedar Cove, and in 2013, from footage for 25 productions including Unleashed, Dark Waters of Crime and X-Men: Days of Future Past. Gilbert was singing a different tune by late February when she was deluged with phone calls and emails from producers expressing renewed interest. “It’s busy, but good-busy,” said Gilbert then. “I’ve hardly had a chance yet to get out and call every producer from Vancouver to L.A.” She anticipated the cameras would be rolling by the end of March on the first incentive-triggered project, with revenues at least doubling last year’s. “By next year I’m sure we’ll be back up to 2006 levels,” she said. “This is the first year I’ll be able to go down to L.A. and say we now also have the best tax incentives in B.C.” Gracepoint, airing as an “event series” during Fox television’s 2014-15 season, was the other apparent antidote to the downturn since the region’s exclusion from eligible regions in 2008. Gilbert has long maintained landing a TV series — as evidenced by the impact Terminal City had when Crescent Entertainment’s 10-part series shot here in 2004 — would strengthen the industry by providing longer-term employment, encouraging crews to stay here rather than seeking work off-Island. A strong local crew is as important as the locations that attracted Gracepoint, she said. “I’m just hoping they leave happy,” said Gilbert, who conservatively estimates the total spend on Gracepoint would be $10 million during the four-month shoot that began Jan. 28.
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As exciting as it might be for locals to spot stars such as Nick Nolte, Jacki Weaver and Anna Gunn walking around town until May, it’s the economic stability that speaks to stakeholders such as shopkeepers, restaurateurs, equipment suppliers, hotel operators and transportation services that stand to benefit as shooting continues in Oak Bay, Victoria, Brentwood Bay and Sidney. “They’ve really been trying to spend money in the municipalities they’re shooting in,” she said. “When you have a TV series here, you don’t have to worry as much about what you’re doing next.” Bruce Carter, CEO of the Greater Victoria Chamber of Commerce, said the Fox series itself will likely account for the lion’s share of this year’s production revenues. “I’m ecstatic this production has taken place,” he said. “I think that goes to the value of Victoria as a location, and I think we really have to recognize the hard work Kathleen has done. It’s providing continuous employment so ideally we can start moving towards establishment of a local crew again and return to more active filming schedules.” Gracepoint is a different economic driver than a movie that’s here for a short period of time,” said Carter, who estimates revenues from all projects shot here could soon reach $20 million annually. “They’re going to get to know people by name during their long stay, and those relationships will start to really mean something.” Another fan of the region since he moved here from Los Angeles is Don Enright, the New York-born producer (Next of Kin, Picture Perfect), whose films shot here include Perfect Romance, starring Kathleen Quinlan. While Enright has been off the radar since he oversaw The Egg Factory a decade ago, he’s quietly developing future projects that could soon go to camera here. “The extra six per cent will put us back in business,” says Enright, whose film production output here Gilbert says was second only to that of Ted Bauman, the prolific Vancouver producer whose local projects include the sci-fi series Impact, Seven Deadly Sins, The Keeper, The Book of Ruth, The Watchtower, Bond of Silence and Sorority Wars. Enright says it’s also safer since locals now have an alternative to driving over the Malahat to tax credit-eligible regions like Cowichan, often while overtired, on their own dime to get work. While Victoria is “a spectacularly good location area — everything’s 20 minutes away,” it could also benefit from a studio that could house standing sets, he said. Some industry boosters have been exploring whether Esquimalt’s former Wilson Foods warehouse would be an option since local crew member Brian Smith floated that idea. “It’s always helpful if you have to do a doctor’s office, a courtroom and a cop shop, where you can go from one place to another in one building,” says Enright, adding with a laugh: “You’re not going to do the set for Cleopatra there. The pyramids aren’t going to fit, but I’ve shot in a lot worse. It’s like another piece of the picture you’re painting for producers coming here.” mreid@timescolonist.com
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Nick Blasko, left, and Dimitri Demers, co-owners of Atomique Productions, in their vast Douglas Street headquarters. DARREN STONE
Showtime! Atomique Productions takes centre stage BY MIKE DEVLIN
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avigating the edge that separates the thrill of victory from the agony of defeat is an integral part of being a concert promoter. There is a constant yo-yoing of emotions, ranging from out-of-the-box successes to hard-fought failures. But when it comes to creatively rewarding ways in which to make your living, Nick Blasko and Dimitri Demers of Atomique Productions — the city’s foremost concert production company — say they couldn’t dream up a better line of work for themselves. “Victoria as a community, as a city, has given a lot to Nick and I over the years,” Demers says. “It is a privilege to be able to humbly give back to the city that we are a part of.” Atomique Productions has been at the centre of the concert business in this region for the better part of two decades. During that time, Demers and Blasko helped transform
a city often resistant to change into a burgeoning epicentre of arts and culture in the province, staging some of the region’s best music events. “We’ve seen rooms come and go in this town, we’ve seen promoters come and go, and we’ve seen businesses form and close,” Blasko says. “We’ve tried to lean on the brand we created and be known for quality and diversity and consistency.” Their company celebrated its 15th anniversary in January, a run of success that has paid its greatest dividends in recent years. In 2008, Blasko and his wife, Casey Austin, co-founded the annual Rifflandia festival, which Atomique produces. The company also oversees Rock the Shores, another annual festival it invented. Combined, the two multi-day events drew upward of 25,000 people in 2013. The concert database livevictoria.com lists 972 Atomique-produced events dating to 2003. Considering that the Blasko-Demers concert
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connection was forged nearly a decade prior to that, it’s a safe bet to crown Atomique the busiest bunch in town. Despite its credentials, Blasko says it feels like the company has come into its own at a measured pace. “We didn’t start out of the gates thinking this was a company that was going to do festivals. It wasn’t in our view 15 years ago.” No school can teach a promoter about staging a concert or public event. Atomique gets by on a set of acquired skills its owners — motivated by their sense of musical adventure — have picked up along the way. “Both of us are just massive music fans,” Blasko said. “I don’t know where we would be without music to rally around.” Demers, 40, and Blasko, 39, met as students at Sundance Elementary. The classmates bonded quickly. By the time they hit junior high, they could be spotted together at all-ages punk and metal shows around town. When the regularity of these events began to slow, Blasko and Demers — who were just 17 and 18, respectively — stepped in to fill the void. Early gigs under the Atomique banner saw them bridge the gap between rock and punk, and hip hop and electronic music. Not every show was a home run back then, but they found a way to improve in areas they could control. By the time 1998 rolled around, they were making a modest living putting on shows. “We’ve learned from our mistakes,” Blasko says. “We have been in the game long enough that we have a good grasp on how to sell 200 tickets, but also how to sell 10,000 — and how to realistically wrap a production around that.” Atomique is only part of the equation. The two friends also have projects independent of each other. Blasko is co-owner of Amelia Artists, his management company with fellow Victoria native Piers Henwood, while Demers is a member of the Stir-Fry Collective, the city’s longest-running hip-hop and electronic music conglomerate. Blasko also spends part of the year in New York, from which he can better oversee the careers of Tegan and Sara, one of Amelia Artists’ top acts. Alone or together, they manage quite nicely. They have been putting on concerts in the capital region for more than half their lives, and don’t expect to slow their pace anytime soon. Five years ago, the promoters and their staff worked in tandem with Phillips Brewery to host concerts in the beer maker’s back lot. Phillips events were a hit out of the gate, quickly growing from 500capacity tent parties to 2,000-capacity outdoor concerts. For the Amelia Street Block Party, Atomique employed an underused portion of the downtown core and brought it to life with a free one-day festival, staged in honour of Victoria’s 150th birthday. “That’s where we get excited about things, finding new opportunities and new venues and doing something with them,” Blasko says. He and Demers are at the forefront of a new generation of young entrepreneurs, proud Victorians who see no shame in staying true to their roots. They have had opportunities elsewhere in the country, but remain stationed in Victoria for one simple reason. “We have made a very concerted effort to build the Victoria market, and we are always going to continue on that path,” Demers says. “We may decide to work at times outside of Victoria, but I don’t think we would ever consider relocating the company to another city. Aside from it being a matter of business, Victoria is our home.” mdevlin@timescolonist.com
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V
ictoria’s vibrant future relies on its consumers and business owners thinking locally in everything they do. That’s the mantra of a group of business people and professionals trying to preserve Victoria by changing it. “I believe in Darwin’s theory of the one that survives is not necessarily the strongest
Think Local First’s Gayle Robinson, left, Elizabeth Cull and J.C. Scott. BRUCE STOTESBURY, TIMES COLONIST
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or the smartest, it’s the one most adaptable to change,” says Gayle Robinson. The third-generation owner of Robinson’s Outdoor Store — which morphed from a bike shop more than 80 years ago into an outdoor store — was one of a determined group to form the Shop Local movement. The organization now has 130 members, all of whom must own more than 50 per cent of a privately held business, pay rent and market and operate the business without assistance from a corporate headquarters. But just two years in, the Shop Local organization has rebranded and expanded. Shop Local is yesterday. Think Local First is the future, says Robinson. “Think Local First. Shop local when you can, makes you a Victoria local,” Robinson says. In the same way the word “organic” was hijacked, so too has the concept of “shop local.” “It’s not about guilting you into it,” says Robinson. “It’s not about you’re a bad guy if you go to Walmart.” What do business owners want consumers of goods and services to think about? It’s called the 10 per cent shift. Think about putting 10 per cent of your purchases into local services or products.
Why? Because from every $100 spent at a locally owned store, $68 goes back into the community as opposed to $43 on a purchase from a business owned outside the capital region, the organization says. “When you shop with a local business, two to three times as much money stays in the community,” Robinson says. In an era where consumers are flocking to big box stores to take advantage of low prices — or tapping away on their smartphones and tablets to find the best deals online — local businesses and service providers must adapt. “We’re not against big box,” Robinson says. “You have to respect people’s budgets and their sense of value.” When Mountain Equipment Co-op opened its store downtown, Robinson could have folded. Instead, she adapted. Robinson says she has built a reputation on service and having staff with expertise in travel. She price matches with her competitors. Big box and locally owned stores can complement one another — for example, MEC helped connect Chinatown with the rest of the Victoria core. And in Cook Street Village, a Starbucks and a locally owned coffee shop across the street
are both thriving, Robinson says. Specialty shops and service providers trying to guilt consumers into a “mercy buy” is a ploy of the past that doesn’t work. At the same time, if residents want to preserve Victoria’s unique shops and culture, and arts, and attract tourists who contribute more than $1 billion to the local economy each year, then that local economy needs support, Robinson says. “Every independent store has to earn your business with amazing service, great product, great pricing, good value,” she says. “And there’ll be times when Walmart is your best decision, so go shop there. But when you can — knowing that the money stays in Victoria and turns in Victoria — support local business.” Next up, Think Local First is interested in Victoria using Supportland, a rewards card program created by Michael and Katrina di Carlo in Portland, Ore., in 2010. The card offers consumers incentives for locally owned businesses and services participating in the program. So rather than have several cards for individual stores, there’s just one card and the cross promotions benefit both the stores and consumers. charnett@timescolonist.com
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For the cruise-ship industry, the sea has its limits BY CARLA WILSON
C
ruise ships will continue to play a major role in Greater Victoria’s tourism sector. But the Greater Victoria Harbour Authority says Victoria’s cruise ship industry is reaching maturity. And while Alaska will remain one of the world’s cruise hotspots — and Victoria a natural stopover — there are constraints that will see the rapid growth seen over the past two decades power down. Ogden Point is limited to three berths and Alaskan ports face similar space issues. Although there will be larger ships in the future capable of carrying more passengers, there are also environmental limits on Alaskan excursions to glaciers and other sensitive areas to consider. “The system can’t necessarily absorb more double-digit growth,” says harbour authority chief executive Curtis Grad, adding “single-digit” increases are more likely moving ahead. A 2012 consulant’s report for the harbour authority predicted that by 2036, 650,000 cruise ship passengers will arrive in Victoria
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Cruise ships will continue to be a big factor in Victoria’s economy, but there are constraints to fast growth. Ogden Point, for instance, has only three berths. BRUCE STOTESBURY
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during a single season from May to October. That’s still a considerable increase from the 450,000 passengers anticipated this coming season with 210 ship visits. But it’s far from the leaping double-digit increases from two decades ago, when 30 cruise ships tied up. The harbour authority will also have to navigate the tricky divide between growth in tourists being transported from Ogden Point to downtown and other regional attractions through the James Bay residential neighbourhood. The harbour authority has crossed swords with the James Bay Neighbourhood Association for years as residents raise their voices about ship emissions and the tourist buses that increase exhaust, noise and traffic. A gondola proposal over the streets of James Bay to the Inner Harbour was roundly shot down earlier this year. The harbour authority has put more environmentally friendly and higher-capacity buses on the road to reduce emissions to address some of their concerns. And this year, it will launch a water shuttle service taking passengers from Ogden Point into the harbour. Despite the issues, the harbour authority maintains cruise ships bring in millions for
the economy from May to October. The organization also points to the intangible benefits of visitors returning for longer stays once they get a brief taste of Victoria. A consultant’s report for the harbour authority in 2012 said ship visits led to $49 million in direct spending, rising to $96 million once indirect spending was included. A total of 683 full- and part-time jobs were created and $30 million in wages were paid, the analysis said. Overall, 77 per cent of passengers came ashore to spend an average of $66.11 on retail, tours, transportation and food and beverages. Slightly more than 40 per cent of crew members came ashore to spend an average of $64.10 each, it said. Economist Brian Scarfe, who prepared a report for the James Bay Neighourhood Association in 2011, disagrees with the study. The cruise industry has a “zero or negative net socio-economic impact,” his study said. Estimated economic benefits were at most $24 million while estimated costs came to $28 million. Costs included traffic congestion and noise, road repairs, emissions, public subsidies and marine effluents, Scarfe said.
By 2036, 650,000 cruise ship passengers will arrive in Victoria during a single season from May to October, says a report for the harbour authority.
cjwilson@timescolonist.com
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UP, UP AND AWAY FOR VICTORIA AIRPORT With a two-million passenger target for 2020, this gateway to the capital is constantly evolving
BY CARLA WILSON
V
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YYJ PASSENGER VOLUMES Passengers boarded and deplaned, 2007 to 2013 1,481,606 (+6.6%)
1,538,417 (+3.8%)
1,532,889 (–0.4%)
1,514,713 (–1.2%)
2009
2010
1,499,792 (–1.0%)
1,506,212 (+.5%)
1,556,960 (+3.4%)
1.5 Millions of passengers
ictoria International Airport is expecting to handle two million passengers a year by 2020. And that means more changes ahead for YYJ. Terminal and runway improvements, a longer landing strip for overseas flights, development of a new business park and a potential five-acre commercial site are already in various stages of planning. “We have over $100 million mapped out in capital improvements over the next 10 years,” says Geoff Dickson, chief executive of the Victoria Airport Authority. The investment reinforces the airport’s role as an economic hub in Greater Victoria. Passenger numbers are a key indicator in the tourism sector and traffic generates business by linking corporate ventures and entrepreneurs as airport officials continue the quest to bring in more airlines and additional destinations. The two-million passenger target is based on projected increases over the next five years
1.0
.5
0 2007
2008 Domestic
SOURCE: VICTORIA INTERNATIONAL AIRPORT
2011
Transborder
2012
2013
International
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Last year, a record 1,556,960 passengers went through the airport, eclipsing the previous mark set five years ago by 18,500 passengers, or 1.2 per cent. The airport is constantly evolving. Right now, $8.1-million in terminal improvements are wrapping up. A $7.5-million resurfacing of the main runway will start this summer. Another $7 million to $10 million will be spent next year to expand the airport’s apron areas to create parking space for more aircraft. Within five years, the terminal building may be expanded again. “We are always projecting what demand growth is going to be,” says Dickson. “The challenge always is you don’t want to be too far ahead of the demand curve, but you don’t want to be behind it.” Extending the main runway to handle larger aircraft — and flights to Europe and potentially Asia — has been on the radar for years and the groundwork is being laid now. Despite failing to win federal and provincial backing to add 1,500 feet to the main runway, the airport authority says it will now pay for expansion itself. The plan is to add the 600 feet to the west and another 900 feet to the east, creating an 8,500-foot-long straightaway, the maximum that could be built on the site. First on the agenda will be an $8.2-million
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western extension. The project is listed in the airport’s master plan to 2017, but no start date has been set. Another 900 feet to the east, pegged at $14 million, is in the airport’s 20272031 master plan. Lindalee Brougham, chairwoman of the Airport Authority, would not say when the expansion might happen. But by doing work on the apron and paving, “we are laying groundwork for it now … it’s not a distant, far-off thing.” She cautions that “just because we do it doesn’t mean that people are going to come.” Airport officials say timing depends on the health of the general economy and other competing capital investments. “Our most important capital priorities are creating adequate capacity to deal with North American scheduled services and to ensure that we have adequate air terminal building facilities to deal with passenger growth,” says Dickson. He says an extended runway would be expected initially to serve seasonal charter airlines, rather that year-round scheduled flights. Tae H. Oum, of the Sauder School of Business at UBC and chairman of the Air Transport Research Society, sees growth potential in flights between Victoria and cities such as Oakland, San Francisco and Portland. “I do not see Victoria as a good airport for attracting direct long-haul international flights [to and from Asia or Europe, or eastern North America],” he says. “There may be some possibility of attracting direct flights from western provinces and western states.” Visitors from Europe or Asia will continue to fly into hubs such as Vancouver and Seattle, Oum says. From there, he says they will make trips to Victoria via ferry, helicopters or floatplanes. A new $104-million replacement facility for 443 Maritime Helicopter Squadron is nearing completion on airport lands, where more than 60 businesses, some with tenants of their own, are located. They include some of the region’s largest companies and employers such as Viking Air, Scott Plastics and Thrifty Foods. The Victoria Airport Authority controls 1,147 acres (85 per cent is in North Saanich and 15 per cent in Sidney) around YYJ under a 60-year lease from the federal government, running until 2031. The market proved too soft in 2012 when the authority announced a 42-acre light-industrial business park on Willingdon Road on the southwest portion of airport lands. Plans call for a mix of high-tech firms, offices, research and development operations and clean manufacturing. Buildings will be limited to three storeys. When demand picks up, Dickson says the land will be waiting. cjwilson@timescolonist.com
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What it will look like: Harbour Air terminal for Victoria’s Inner Harbour, complete with check-in counters, waiting room, washrooms and customs clearance. CHOW LOW HAMMOND ARCHITECTS INC.
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onstruction could start this summer on Harbour Air’s $4-million floating seaplane terminal on the Inner Harbour. “It will be a gateway for people coming into Victoria or departing — first impressions and last impressions will be unique because it is floating,” says Randy Wright, executive vice-president of the Harbour Air Group. Wright said the terminal will take between 18 and 24 months to complete. Anything on the water must accommodate federal Fisheries and Environmental rules, meaning the site would be closed for periods of time. Architect Sid Chow designed the 5,242-square-foot terminal. Its main floor will have check-in counters, a waiting room, washrooms and customs clearance. A pilot lounge and administrative offices are planned for the second floor. There will also be a new customs and immigration service in the terminal. It will be built off site, towed into the harbour and set up in front of a new plaza linking David Foster Way, a waterfront walkway to run from Ogden Point to Rock Bay. Benches, trees and bicycle racks will be added. Seaplanes have had a place in Victoria’s harbour since 1919 and continue to play a major role in the Island’s transportation system, with Harbour Air carrying more than 300,000 passengers a year along the West Coast. — Carla Wilson
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Mixing it up
Mike Black steers Capital Iron — known for its wide-ranging inventory including an array of nautical relics — as the 80-year-old business expands into Langford. ADRIAN LAM
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apital Iron’s diverse inventory — from hardware and kitchenware to antiques, clothing and outdoor gear — helps tell the tale of a business that has continually reinvented itself over its 80-year history. “The store has grown and evolved and now we sell everything from hammers to hot tubs,” says store owner Mike Black. “We’ve always had the reputation that says you never know just what you’ll find in here.” Capital Iron, which began in the scrap-metal business reflected in its name, has gained its reputation by widening the range of the items on its shelves as it adapted to the changing times. Even now, the company is planning an expansion into Langford, bringing the number of its outlets to three, with downtown Victoria and Sidney. Capital Iron’s original building, at 1900 Store St., predates B.C.’s 1871 entry into Confederation, going back to 1863, when it was built as a warehouse, part of a dock and sales area. Ships unloaded goods to be sold or stored for a brief time before they were moved from
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the harbour. Similarly, Victoria and Vancouver Island businesses would transport in goods to be stored in the warehouse until they could be shipped out. In the late 1800s, the warehouse became the Victoria Roller Flour and Rice Mills. Rice would be shipped in from Asia, processed in Victoria and sold, largely to feed Chinese labourers constructing expanding railways. But the Canadian government worried about competition for newly settled Prairie wheat farmers and put a tax on unprocessed grain, including rice. In 1897, the Victoria Roller Flour and Rice Mills went bust. Another rice and flour mill moved in, but it also closed within a few years. The building stayed mostly empty for 17 years until 1934, when Morris L. Greene created Capital Iron and Metals Ltd., a business first specializing in scrap metals taken largely from marine salvage. This connection with scrapping ships explains the marine artifacts in the basement level, which Black hopes to turn into a small museum. But Greene was obviously a nimble-footed businessman. He sold things such as textiles, even men’s suits, during the Great Depression. In 1945, the Second World War ended and, as the Navy reduced in size, warships became increasingly available as scrap, providing steady work for Capital Iron. And at the same time, large amounts of military surplus became available. Greene quickly became known as a war-surplus dealer, offering uniforms, boots and other military gear. Ron Greene is Morris’s son and Black’s father-in-law. He’s retired from the store operation, but still owner of the Store Street land and building. He says the story of the “two-foot screwdriver” explains the company’s move into retail. Family lore says that Morris received a big load of giant screwdrivers that were originally meant for working on military radar gear but became redundant as radar equipment became smaller. Customers asked for something smaller. “So Dad started bringing in regular lines of screwdrivers because not everyone wanted a screwdriver that was two feet long,” Ron Greene says. Morris died in 1972 at the age of 71, and Capital Iron ceased to break up ships and switched completely into retail. Black became part of the Capital Iron story in 1987 when he married Ron Greene’s daughter, Eveline. The following year, Black left the Navy to work for his new father-in-law. “My goal in the Navy was to be captain of the ship, and now it’s a similar thing, only it’s a different ship,” says Black, 53. He is now deeply involved in planning and getting ready to move into the new West Shore store on Langford Parkway, in the former Sandy’s Furniture location. Black said the new 23,000-square-foot Langford space will offer the same kind of eclectic shopping experience as downtown’s 40,000 square feet. It may not be the company’s final expansion, either. Black said he has taken calls from Duncan, Nanaimo, Courtenay and even the Interior from property owners seeking Capital Iron as a tenant. Black is proud of Capital Iron’s operation, whether it’s the employees, who will number 110 when the Langford store opens, or the relationship with the surrounding community and its reputation and community involvement. But he is also proud of Capital Iron’s unique store character. “I can’t think of anywhere else in the world that I’ve come across in my travels that has a mix like us,” he says. rwatts@timescolonist.com
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mong its vast array of artifacts, the Royal B.C. Museum holds the Webster! broadcast collection. It’s now in cold storage. And the museum wants to make sure this invaluable peephole into social history doesn’t disintegrate. The collection consists of videotapes of Jack Webster’s television show, in which the irascible Scottish-born journalist interviewed Canada’s movers and shakers. The Webster! collection was donated to the museum in 1987. Originally broadcast from 1978 to 1987, Webster! boasts a whopping 1,150 episodes. The late Webster interviewed politicians, business titans, labour honchos, writers and entertainers. “He had everyone on his show. He had celebrities. Pierre Trudeau. First Nations leaders. He had people talking about pipelines on the show,” said David Alexander, head of the museum’s digital preservation department. The problem is, videotape is fragile. It deteriorates over time. You can slow down the process by putting it in cold storage, but you can’t stop it. With such fragile collections in mind, the museum’s new archives and digital preservation department was founded a year ago. It’s now digitizing the Webster! collection so it can be preserved and viewed by future generations. Such a dedicated digital preservation department is likely unique in Canada, says museum CEO Jack Lohman, who founded the department. In his new book of essays, Museum at the Crossroads?, Lohman references the urgent need for digital preservation, that is, preserving information in formats that can be accessed by computers. “We need to digitize, not only so that we can speak to the world, but so the world can speak to us,” he writes. Digital preservation is an immense, complex issue for museums worldwide, especially ones such as the RBCM, which has a dual function: it’s an archive as well as a museum. The RBCM’s immediate list of digitization projects includes: • Hundreds of letters from First World War soldiers, many scribbled in pencil from the front lines • A 480-image collection of photographs by Frederick Dally, who photographed the Caribou gold rush in the mid-1800s • A collection of 22,000 scans, negatives and prints from the Beautiful British Columbia magazine from 1966 to 1982. That’s just the tip of the iceberg. Consider
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that the museum also holds: 22,500 linear metres of textual materials, 178,405 maps, plans and drawings, more then five million photographs, 10,253 artworks, 30,000 hours of audio, almost 8,000 reels of film (both onsite and off) and 15,000 hours of video. Not everything can or will be digitized. But clearly, the museum’s seven-member digitization team has its work cut out. Lohman says a top priority is preserving a vast collection of audio tapes created by Ida Halpern. A Jewish refugee from Nazi Germany, the ethnomusicologist was active in the 1940s, recording the music and ceremonies of First Nations people throughout the Pacific Northwest. “It’s absolutely unique in the world,” says Lohman, who has put forward the Halpern collection as a UNESCO Memory of the World applicant. Digital preservation is also about saving more contemporay collections already in digital format. For instance, says Alexander, a photographer might donate a lifetime’s worth of images, some of which are digital. Or there might be a collection of songs in MP3 or MP4 format. These must be secured and stored safely, so no one but museum staff can have access to the originals. Museums ignore this aspect of preservation at their own peril, Lohman says. “This is an absolute must for an institution like us that holds so much information. [My perceived need for such preservation] came out of my belief there’s a real risk of a black hole in history.” Ease of access is one happy result of digital preservation. Make something computer accessible and anyone can potentially reap the benefits. The museum is now creating a provincewide Learning Portal to make its museum and archive content available to teachers and students throughout the province. The Learning Portal will be launched in August. Lohman, meanwhile, is looking to create something he calls the Atlas of British Columbia. The new project will connect access to the digital collections of such provincial institutions as universities and museums. The overreaching goal for the museum, he says, is to make its contents available to the world. “I’m creating a world-class institution where its collection and archives are known globally. … What this museum carries inside is so important, it’s on the global list of the key stuff of the world.” achamberlain@timescolonist.com
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◗ TOURISM
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BY CARLA WILSON
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ounders of a new bicycle tour and rental company figure they’ve hit on the perfect tourism troika by giving visitors a combo of culinary, ecofriendly and active experiences. “Our whole premise is European-style cycling,” says Paul Rayman, who owns The Pedaler with Rosemary Lee. Tours include Hoppy Hour with stops at local craft breweries and Beans and Bites, where visitors get coffee and tasty treats. They take tourists through the Fernwood, Fairfield and Cook Street neighbourhoods, and out to the Saanich Peninsula to show off “all of this great stuff that’s going on that we as Victorian’s love.” “The bicycle is the perfect thing to get people there,” Rayman says. The new company is part of a shift in the tourism experience for Greater Victoria. Visitors and their money have long been a lifeblood for the region, renowned for its seaside beauty and mild climate. But trends are changing. As the attraction-based model fades, the new side of tourism is seeing smaller companies providing experiences around adventure, environment, culture and dining, experts say. Rayman points to Victoria’s rising culinary reputation and craft breweries, cycling culture and the environmentally friendly nature of their tours. “We’ve hit three of the top trends in tourism.” Tourism Victoria chief executive Paul Nursey agrees. The destination marketing group, which promotes the region to outside markets, says tourism’s value to the capital region is estimated at $1.9 billion a year. Growing that important economic infusion is essential, says Nursey. He believes there is increasing tourism demand for experiences and the chance to engage with local residents, saying these visitors are willing to spend more. Other trends include an increased focus on culinary offerings and demand for accommodation with appealing design features. He added Victoria’s brand remains solid with its gardens and flowers, independent retailers, activities such as whale watching and its food. Nursey says the region is coming off a strong tourism season and expects increasing consumer confidence and a lower loonie to help drive the industry this year. “We are hoping to consolidate and grow a little bit. If everything goes very, very well, perhaps even a bit more,” he says.
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◗ TOURISM But Victoria isn’t alone and competition for tourism dollars is fierce. Tourism is growing rapidly around the world. It’s being fuelled by baby boomers hitting their prime travelling years, emerging economies with citizens starting to travel internationally and from the millennial generation, born in the early 1980s through to the early 2000s. “We really can’t take any of this for granted. We have to work for it,” Nursey says. If Greater Victoria’s tourism sector performs well, Nursey believes the region can attract capital. “I mean investment in renovating hotels, creating attractions because the customer expectations are only growing.” “It is very important that we do a good job of communicating our story well,” Nursey says, and that includes positioning the region as environmentally, economically and culturally sustainable. The Inner Harbour is “vitally important” for tourism’s future, Nursey says. “It’s such an important international gateway, with the floatplanes and the Coho and the Clipper [ferries],” he said. “We have to make sure that our gateway, our valuable asset there is workable, is beautiful, is functioning.” He says tourism is emerging from a “long, deep trough. Our challenge now is to position ourselves for long and sustained success.” Nursey notes the industry has challenges on the national level. He points to Canada’s cumbersome visa system, which is being outstripped by other countries modernizing their approach. This system is one of the country’s top competitive barriers to tourism, Nursey says. “Around the world, we are seeing other countries use visa policy as an advantage. We are seeing countries offering multi-country visas, very efficient processes, integrating into the sales channel. So we’ve got to deal with that.” Aviation policy is another key federal issue, Nursey says. “We need more open skies. We need a better, more efficient cost structure and also more competition.” cjwilson@timescolonist.com Photo: Bruce Stotesbury
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Ride on: business cycle takes on new meaning BY MIKE DEVLIN s a professional mountain biker, Andrew Mitchell earned four Canadian titles and numerous sponsorships. That career ended at its prime, when Mitchell was just 23. A series of concussions robbed him of what could have been a lengthy — and lucrative — run as a rider, but concussions couldn’t kill his love of Brewmaster the sport. Sean Hoyne loads a He quickly cobbled together keg into a courier cargo an exit strategy which began bike with GeaZone owner with a business-administration
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certificate from the University of Victoria. By pairing that with his interest in cycling, Mitchell came up with a revolutionary twist on the delivery business: GeaZone Eco-Courier, his zero-emission courier company. Years of touring on the professional mountain-bike circuit gave the 26-year-old president and CEO (he calls himself an “ecopreneur”) a unique perspective on life, if not business. In Italy, for example, he would often see bikes carrying cargo through the downtowns of various cities. That got him to thinking. “The whole focus of the business revolves around sustainability. Travelling the world, I got to see a lot of things, in terms of how things move around and how we can do it better.” GeaZone officially got underway in 2012. In the years since, its customer base has grown considerably. The early days were spent managing a steep learning curve. GeaZone operated with just two cargo tricycles and serviced a delivery radius that went as far out of the downtown core as Gordon Head and Langford. GeaZone is now doing daily runs to Sidney and Langford, and has routes stretching as far north as Nanaimo. In order to expand, Mitchell purchased a Nissan Leaf electric car, which kept GeaZone’s business model and ethical mindset intact. GeaZone has since purchased two more electric vehicles for routes of greater distance, which complement his fleet of two cargo tricycles (powered by electric motors) and one traditional bicycle. “That fits right in with who we are as a company,” says Sean Hoyne, brewmaster and owner of Victoria’s Hoyne Brewing Company. Since the summer of 2012, shortly after the brewery opened, GeaZone has delivered cases of Hoyne’s beer by bike to liquor stores in the downtown core. “Rain or shine they show up,” Hoyne says. “They have rain gear in the winter, and pedal away. We’re thrilled to be using them.”
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Bike couriers have existed for decades in the city, so GeaZone is not breaking new ground in that regard. But Mitchell manages to keep his prices on par with or in the neighbourhood of his competition because GeaZone’s delivery methods do not use costly fuel. “We have allowed ourselves to be cost-competitive with other courier companies because of our developments in terms of technology.” Things are coming into form for the sixemployee company in other ways as well. GeaZone recently developed through its in-house IT developer, Jeff Austin, a smartphone app that enables its couriers to paperlessly process transactions. Traditional waybills are inefficient and environmentally unfriendly, Mitchell says. Processing via their app saves GeaZone 25 cents per signature while reducing their environmental impact to boot. That alone is not good enough for Mitchell. “We want to be a completely emissions-free courier service,” he says. “Although there is some emissions created from the electricity [that charges the cars], we want to create a sustainable infrastructure, be it solar or hydroelectric, which is fairly clean and renewable at this point.” GeaZone was given the opportunity to expand into Vancouver, which would have meant purchasing a gasoline-powered vehicle. Mitchell declined, even though the contract would have doubled the company’s revenue within a year. He stays competitive because the vehicles use no fuel. Forgoing that philosophy for profits is not in the cards at GeaZone, he says. “If anything, we want to give back to the grid.” A number of GeaZone clients were early adopters, local bakeries and breweries among them. Mitchell is happy to pay it forward by giving other locally run businesses his patronage. That is the best way to ensure that the local business community takes care of its own, Mitchell says.
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or Susan Stokhof, it was the last straw. The Esquimalt business analyst arrived at the office she shared with a male colleague. And then … disaster. “I was pulling down my ugly bicycle rain pants. My jeans went down with it. I thought, ‘That’s it, I’m not dressing like this anymore.’ ” Stokhof is a hard-core cyclist. She and her husband, who’s from Amsterdam, went for six years without a car. A stylish woman who previously worked in women’s and men’s fashion, Stokhof got fed up with what she viewed as unnecessarily ugly bike wear. So in December 2012 she started her own business, Le Vélo Victoria (French for “the bike”). Stokhof figures a burgeoning interest in style is emerging as the next big cycling trend. Le Vélo Victoria was hatched to help address that need. Stokhof’s online boutique specializes in functional and stylish cycle wear and accessories. You can purchase rain capes, tunics and hats. You can buy hand-painted bells, handbags that function as panniers, colourful bike-seat caps, portable leather wine racks or filigreed bike skirt guards that resemble fans. Le Vélo Victoria’s motto is “Elegant solutions for everyday bike challenges.” Bottom line, if you want to look good when you cycle, Stokhof can help. Her clothing is aimed at women, although some accessories are unisex. She doesn’t manufacture her items; she sources them from elsewhere (although some are made specifically for her shop). What visitors to Le Vélo Victoria (levelovictoria.co) benefit from is Stokhof’s sharp sense of style. Her biggest beef with bike wear and accessories is that most of the gear has a sporty look. Stokhof says she doesn’t want to wear fluorescent-hued spandex all the time. “Cycling isn’t just about sport, right? I just didn’t want to arrive at a coffee shop or for dinner and have all my rain gear on. It’s kind of yucky,” she said. Stokhof said the notion of stylish cycling is more ingrained in Europe, where you might see a business-suited man holding an open umbrella while biking to work in the rain. Stokhof believes
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Le Vélo Victoria founder Susan Stokhof, with husband Laszlo. Her new business specializes in stylish bicycle accessories for men and women. JACQUELINE DOWNEY North Americans are becoming interested in style as cycling becomes more popular. She also believes stylish bike wear will also pull fence-sitters who might be interested in commuting by bike but have yet to make the leap. The attraction of looking good is just the push some people need. Stokhof dispenses advice via a blog on her website. For instance, some people are worried about arriving at work sweaty in their business garb if they cycle. She explains how to fold a too-hot suit jacket properly and store it in your pannier. Stokhof’s other common-sense suggestion: Simply slow down if you’re getting too hot. “It’s not a race,” she said. So far, Le Vélo Victoria is just Stokhof and her marketing manager. She’s active on social media, with a presence on Facebook, Pinterest and a Twitter following of more than 1,800. Stokhof continues to work as a business analyst by day. Her Le Vélo Victoria work is done during the evening and on weekends. She stores products in a well-organized room at her Esquimalt loft. “We’re selling a lifestyle,” Stokhof said. “It’s a lifestyle brand we’re creating.”
R !"# O"$ B%&'"# P"&$ Where Victoria Remembers
www.robp.ca Community Owned ~ Not For ProÞt ‘In service to Greater Victoria...since 1923’
achamberlain@timescolonist.com Capital SPRING 2014
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JACK KNOX Cultural advantage How Greater Victoria keeps its edge
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couple of years ago, I did some talks on behalf of the United Way, visiting employers around town as a cheerleader for the charity. An unexpected benefit was the backdoor, behind-the-scenes peek it gave inside some of Greater Victoria’s workplaces. It was like being let in on a secret. Sometimes the glimpse was fascinating, sometimes it was (shudder) like walking onto the set of The Office (think the Cubicle of Broken Dreams). One that stood out — in a good way — was Schneider Electric in Saanichton. Schneider makes energy-monitoring tools, mostly for industry and other largescale users (in fact, the local arm was known as Power Measurement Ltd. before the business was taken over by the Frenchbased multinational). Since most of its customers are in far-off lands (in Victoria, anything beyond Nanaimo counts as a far-off land) the company flies a little under the local radar. Victorians might be surprised to find 350 people work at the company’s Keating Cross Road plant. What was remarkable to me wasn’t that plant, but those people, who all seemed young, healthy, energetic, sharp; when they gathered in one spot it looked like the starting line of the marathon (minus the Kenyans). Maybe I caught them on a good day, but it appeared they wanted to be there. They looked engaged. The image stuck. Truth is, some workplaces are more alive than others — and it’s no coincidence that the more vibrant ones can be found in Victoria’s burgeoning tech sector. Schneider is just one of those knowledge-based employers where success depends on getting the most out of employees’ brains.
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Some organizations can get away with a boss-down management style built around a rigid hierarchy, but that’s simply bad business for companies that rely on constant innovation. It’s tough to attract and retain good people with an approach that says: “Keep your ideas to yourself, shut up and do as you’re told.” On the contrary, the challenge is to find staff who, instead of saying “This is how we’ve always done it,” think “This is how we could do it.” Creating a culture in which such people thrive becomes a conscious choice. Schneider’s website boasts of plowing five per cent of sales into research and development. It’s important to give people the time to be inventive, says plant manager Jennifer Jacques. In some workplaces, the bosses want the worker bees to be seen and not heard; at the Saanichton plant, an employee-run team actively solicits opinion on how to make things better. Staff-driven philanthropy — the 24 Hour Relay, the Festival of Trees, the VIATeC food bank challenge — creates a sense of community. “In my experience, the best ideas come out of collaboration,” Jacques says. “In Victoria we are literally on an island and in a challenging time zone for a global business. This enforces the need for us to be collaborative in all aspects of our business — with our customers, suppliers and colleagues.” The company takes advantage of Victoria’s talent incubators. It recruits from universities across Canada, but has had a lot of success with local co-op programs, particularly on the engineering side. “We do a lot of recruitment from UVic and Camosun,” Jacques says. Diversity, finding people with different perspectives, is a must. “Cultural diversity, gender diversity, diversity in experience — all of these
Jack Knox, columnist, Times Colonist
aspects of diversity contribute to innovation. In addition to our recruitment from UVic and Camosun, we also promote global mobility within Schneider, and we have had good success recruiting to Victoria. People love living here.” Ah yes, the famous Victoria lifestyle advantage. We joke about this being the Island of Misfit Toys (some would say the place where the rest of Canada shovels its flakes), full of creative independentthinkers who not only march to a different drummer but have an entire orchestra going on between their ears, but the reality is a little more mundane: This is a nice place to live. If you could take your skills anywhere in Canada, where would you rather be? The sunshine factor only gives Victoria an edge, though, when such people are encouraged to use those skills.
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Clearly, the pricetag is its second most attractive part. The price leadership of the CLA takes nothing away from every other aspect of leadership that comes with the Three-Pointed Star. From its winglike dash and tablet-style color screen, to its available Panorama glass roof and multimedia systems, it’s a cabin that puts you ahead of the crowd. Combine that with 208-hp of turbocharged performance and ECO Start/Stop for optimum fuel efficiency, the all-new CLA is one you’d sell your soul for but luckily at this price, you can keep it.
THE STUNNING NEW 2014 MERCEDES-BENZ CLA. TOTAL PRICE1 $36,660*
Ask us about Prepaid Maintenance. Mercedes-Benz.ca/PPM
Three Point Motors
- A Division of the German Auto Import Network
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2546 Government Street | 250-385-6737 | threepointmotors.com © 2014 Mercedes-Benz Canada Inc. 2014 CLA 250 with optional Sport Package and optional Bi-Xenon Headlamps shown above, National MSRP $36,350. **Total price of $36,660 includes MSRP of CLA 250 base model of $33,900, freight/PDI of $2,195, dealer admin fee of $395, air-conditioning levy of $100, PPSA up to $45.48 and a $25 fee covering EHF tires. 1Vehicle licence, insurance, registration and taxes are extra. Dealer may sell for less. See Three Point Motors for full details. DL9818 #30817.
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The world looks different from here. Peter B. Gustavson School of Business students shape ideas and send them into the world. If youâ&#x20AC;&#x2122;re ready for a completely different outlook for your business, talk to us about how our students can help. uvic.ca/gustavson