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Employees say DEI efforts from leaders are critical

Employees who took part in a new global survey say that having a diverse, equitable, and inclusive (DEI) workplace is important to them. They also want their leaders to be vocal about how organizations are actively engaged in such efforts.

Catalyst, a global nonprofit promoting gender equity and workplace inclusion, analyzed 6,800 employees in 11 countries and found 93 per cent want their organizations to detail to their teams how they are creating more equitable workplaces. Although, 24 per cent report that senior leaders never or rarely engage in discussions about the matter.

The survey also shows that the way leaders talk about diversity efforts has a direct impact on employees.

For instance, the fairness case justifies diversity initiatives by highlighting how it’s the socially good and morally right thing to do, is consistent with the organization’s values and contributes to creating a fairer workplace.

In this case, employees are more likely to view their employers as fair, experience inclusion and remain at the organization. On the other hand, research shows that using a business case for diversity has been linked to lower feelings of belonging in women and LGBTQ+ employees. Framing diversity according to its benefits to an organization can have negative consequences for hiring underrepresented job candidates.

A key finding was when using both cases, organizations should emphasize the fairness case to increase the likelihood of positive employee results.

“In this polarizing moment when efforts to build equitable workplaces are under attack, it’s significant that employees want to see proactive steps from leadership, along with clear communication regarding the actions being taken to create a diverse workplace where all employees can belong, contribute, and succeed,” said Emily Shaffer, PhD, a senior director of research at Catalyst and lead author of the report. “Workplace inclusion is not a game with winners and losers; it’s a universal win, fueling creativity, elevating performance, and creating workplaces where all talent can thrive.”

The report also provides practical suggestions for clearly discussing DEI practices with employees.

“Organizations should start by making sure their diversity, equity, and inclusion practices align with their culture and core values; by examining if their messaging to employees clearly reflects why they’re engaging in DEI practices; and by understanding their audiences,” stated Shaffer. “Going back to the basics allows companies to demonstrate their commitment in a way that resonates with employees, leaders, and stakeholders.”

Nova Scotia’s commits $1.6B for capital projects

The Nova Scotia government plans to spend over $1.6 billion on capital projects in the coming fiscal year, which includes hospitals, schools, and roads and highways. Finance Minister Allan MacMaster presented the 2024-25 capital plan this week that also earmarks funds for new housing projects.

“I am pleased this plan supports efforts to build more housing faster and includes the first new funding for public housing construction in more than 20 years,” he said.

Investments that are part of the More, Faster: The Action for Health Build plan include a range of projects, such as, $301.7 million for the Halifax Infirmary expansion and Cape Breton Regional Municipality healthcare redevelopment project and about $146 million for constructing and renewing other hospitals and medical facilities in places like Pugwash, Yarmouth and Amherst and at the IWK Health Centre in Halifax.

The plan also unveiled $208.5 million to build and renovate schools, four of which will open this year, and $50 million to buy land for future needs. Over $30 million for provincial park upgrades and storm damage repairs is also on the list.

Like most provinces in Canada, housing remains a key issue. It’s been more than 20 years since Nova Scotia set aside new funding for public housing construction. For the coming fiscal year.

The government is funnelling $15.5 million into new public housing units. That is part of a $47.1-million investment in building and repairing public housing that also includes $11.8 million for new modular housing. Another $11.8 million will go toward new modular housing and about $27 million will fund Nova Scotia Community College student housing projects at various stages of development.

Team selected for CSRC at new St. Paul’s Hospital

Providence Health Care has selected Diamond Schmitt Architects and Kirsten Reite Architecture as the prime consultant team to lead the design of the Clinical Support and Research Centre (CSRC) at the new St. Paul’s Hospital.

PCL Construction has been selected as the construction manager to oversee all pre-construction and construction aspects of the project. Building design and pre-construction activities are now underway.

“Diamond Schmitt and PCL have demonstrated exceptional expertise as architects and builders. I have immense confidence in their ability to deliver upon our unique vision of transforming care through innovation, research and learning in a purpose-built, state-of-the-art facility,” said Fiona Dalton, president & CEO, Providence Health Care.

To select the teams, Providence issued competitive requests-for-proposals, and carried out extensive evaluations of shortlisted teams dedicated to bringing the CSRC to life.

“The design approach to St. Paul’s Hospital’s new Clinical Support and Research Centre creates a gateway to the health care campus. Designed as an innovation hub focused on providing flexible clinical spaces and lab spaces to support advancements in life sciences research and cross-disciplinary collaborations, the centre is also envisioned as a community hub and crossroads. A new civic plaza, large outdoor terraces on upper floors and interconnected spaces will enhance accessibility and establish a truly integrated health care facility – a vibrant place of science and social activity in downtown Vancouver,” said Don Schmitt, principal at Diamond Schmitt.

The CSRC will be approximately 34,400 square metres (370,000 square feet) in size and connected with a sky-bridge to the new St. Paul’s Hospital, which is under construction. The facility will house key research centres, programs, and specialty physician practices to enhance overall patient care in alignment with the government’s commitment to research and healthcare.

“We are proud to be a part of this project that provides space for research and health care in the community as we continue our partnership with PHC in the development of the New St. Paul’s Hospital and Health Campus,” said Jeff Murphy, vice president and district manager, PCL.

 

Nova Scotia pledges modest housing spending

The Nova Scotia is preparing for modest housing spending, equating to 4.6 per cent of its capital plan for 2024-25. Newly tabled figures pledge $74.2 million for public and student housing in $1.6 billion worth of intended investment in new infrastructure and asset replacement and improvements.

Subject to budget approval later this spring, $47.1 million is earmarked for public housing, including $15.5 million to build new units, $11.8 for new modular housing and the remainder for repairs in the existing public housing portfolio. The $27.1 million allocation for student housing will go to Nova Scotia Community College for projects on its Ackerly, Ivany and Pictou campuses.

“I am pleased this plan supports efforts to build more housing faster and includes the first new funding for public housing construction in more than 20 years,” says Allan MacMaster, Nova Scotia’s Minister of Finance and Treasury Board.

The $15.5 million to build new public housing units equates to less than 1 per cent of the capital plan. Its larger allocations include $448 million for construction, expansion or renewal of health care facilities, $208.5 million for 17 school construction/rehabilitation projects and $483 million for nearly 100 highway projects, including construction and other improvements, paving and bridge replacement/rehabilitation.

Preparing your chiller for spring

As spring is on the horizon, it’s time to start thinking about all the equipment you will need when the temperatures rise and the seasons change. Is the chiller on your regular maintenance list? Regular cleaning and maintenance can help you ensure it’s working when you need it, minimize repair costs, and lengthen its life span.

There are several steps you can take to optimize performance and ensure that your chiller is ready for spring.

Keep track

Monitor your chiller’s performance with an operational log, allowing you to quickly spot anomalies and identify any issues or concerns. Experts recommended that the log be updated daily, as a minimum, to record data like pressures and approach temperatures. As smart technology continues to grow, newer equipment may include software that automatically maintains the log, limiting labour and saving you time.

Manage maintenance

Regular maintenance is crucial for the performance of most equipment, and your chiller is no exception, with scale and sludge buildup leading to lower efficiency and higher expenses. Regularly inspecting the chiller for any buildup will help improve performance and alert you to any upcoming necessary repairs or maintenance expenses.

Leaks are also a concern, and your chiller should be checked for leaks or possible areas of risk regularly. Leaks are not just a concern for efficiency, they also pose a threat to occupants or staff if hazardous refrigerants escape. By using an air-purge time, checking the refrigerant sight-glass, and employing a gas analyzer to assess joints and connections, you can get ahead of leaks or take quick action if one has occurred.

RELATED: Your spring HVAC maintenance checklist

Clean and disinfect

Disinfection is a crucial part of chiller maintenance to reduce contaminants and mitigate bacterial growth. This process should be conducted twice per year (generally in the spring and in the fall) and it includes cleaning the tower basin, fill, distribution deck, and exterior surfaces. According to OSHA (Occupational Safety and Health Administration), cooling towers, evaporative condensers, and fluid containers provide the ideal conditions for Legionella if not properly maintained, which could allow for bacteria to be released into the air if sanitization does not occur.

Create a strategy

Creating a maintenance plan and sticking with it is the key to getting your chiller ready for spring and keeping it working throughout the year. Train staff to follow protocols and regularly assess risks, performance, and planning to mitigate repair or replacement costs.

As the temperatures begin to rise, planning ahead with a cleaning and maintenance strategy for your chiller will have it up and running through the season and beyond.

Exposure to U.S. office loans grows unsettling

Regional and mid-sized banks in the United States are considered most vulnerable to losses on commercial real estate (CRE) loans, particularly those tied to that country’s shaky office sector. However, newly released commentary from the credit rating agency, Morningstar DBRS, traces a wider radius of fallout with financial institutions worldwide demonstrating an upward trend in impaired loans on U.S. commercial properties.

“In our view, many banks will need to make some downward revisions to property valuations and, as a result, incur higher provisions and loan losses,” says Nicola De Caro, senior vice president, global financial institutions, at Morningstar DBRS.

Analysts are watchful as roughly USD $1.2 trillion in CRE debt is set to mature over the next two years, including about USD $300 billion on office and retail properties secured through banks and commercial mortgage-backed security (CMBS). That’s occurring in the context of interest rate uncertainty, tightening lending standards and sliding property valuations.

“Refinancing certain transactions, particularly in the office space, will likely require additional equity and/or restructuring. We also expect an increasing number of borrowers unable or unwilling to pay,” the commentary states.

Among large U.S. banks, Wells Fargo is highlighted for a soaring percentage of charge-offs pertaining to CRE loans over the past year. CRE loans, primarily for office assets, accounted for 30 per cent of the bank’s charge-offs in the fourth quarter of 2023 compared to 2 per cent in Q4 2022. Concurrently, the regional New York Community Bank registered USD $552 in provisions for credit losses (PCLs) in Q4 2023, up from USD $62 million in Q3.

“The increase was primarily driven by higher net charge-offs and reserve build-ups to address weakness in the office sector and potential repricing risk in the multi-family portfolio, which has seen an increase in criticized loans,” Morningstar DBRS reports. “In our view, medium-sized banks and regional banks are more vulnerable to further market deterioration, given that they typically have a higher proportion of CRE within their loan portfolios.”

MSCI’s annual results for 2023 show a negative 8.4 per cent total return across the U.S. property index, attributed in large part to slipping office performance. “There were significant writedowns on the office sector in our U.S. portfolios,” MSCI executive director, Ken O’Brien, told a recent CRE industry gathering in Toronto.

Also speaking at that event, Mark Rose, chief executive officer of Avison Young, noted that some Class B and C office properties in the U.S. are now in negative cash flow situations arising from a combination of high vacancies and “skyrocketing” credit and operations costs. Meanwhile, the U.S. Federal Reserve is advising against foreclosure.

“These banks do not want negative cash flowing buildings back,” Rose said. “The banks are holding onto them because, if they take it all in one year, we could have another systemic banking crisis. The Fed has told them: Just engage in work-outs.”

For Canadian banks, gross impaired loans (GILs) tied to U.S. CRE now account for 22 per cent of total business and government GILs, up from 7.6 per cent at the end of 2022. U.S. CRE loans are also a growing portion of identified credit risk, now representing 41.7 per cent of PCLs versus 21.1 per cent in Q4 2022.

Morningstar DBRS lists Royal Bank of Canada, Toronto Dominion Bank, Bank of Montreal and Canadian Imperial Bank of Commerce as large Canadian lenders experiencing this “credit quality deterioration”, and notes that office properties make up a larger share of their CRE loan books within the U.S. than in other regions. However, the risk is considered minimal.

“The total global office sector exposure at the large Canadian banks is generally well diversified and relatively small, comprising approximately 10 per cent of total CRE loans and ranging from a very manageable 0.8 per cent to 1.9 per cent of total loans and acceptances,” the commentary confirms.

Elsewhere, Germany’s Pfandbriefbank (pbb) is positioned more precariously. As a specialized real estate lender, about 15 per cent of its CRE loans are in the U.S. and office properties make up 80 per cent of that quotient. “pbb is also largely exposed to its home market in Germany, where CRE is also under pressure,” Morningstar DBRS observes.

As well, Tokyo-based Aozora Bank recently stress tested its CRE loan book in the U.S., in which 47 borrowers hold USD $1.89 billion in non-recourse office loans, representing 6.6 per cent of total loans. The exercise assumed that some properties would decline in value by 60 per cent over the next two years, which, in turn, translated into an average loan-to-value (LTV) of 177 per cent. Loans with LTV in excess of 100 per cent were downgraded to non-performing status, increasing the ratio of non-performing loans in Aozora Bank’s U.S. office exposure to 38 per cent — a jump up from 13.8 per cent in Q3 2023.

Plans for $800M luxury skyscraper in Toronto

Freed Developments has plans to construct a 60-plus storey skyscraper in Toronto complete with 100 five star luxury hotel rooms and 400 luxury condominiums that range from 270 to more than 9,800 square feet.

Other features include a 62nd floor Sky Lobby, with a grand staircase leading to a 63rd floor restaurant and bar, a boutique spa, terrace and outdoor garden, private spaces for entertaining and dining, a fitness and yoga studio, a private theatre room, valet parking and a full-service concierge.

skyscraperFreed Hotel and Residences will also feature a second-floor 10,000-square-foot Katsuya Restaurant from Sam Nazarian’s Disruptive Group by sbe, which will be the first one in Canada. There are plans to open in Fall 2028 with a menu curated by Master Sushi Chef Katsuya Uechi, who merges the elegance of Japanese cuisine with modern techniques and flavours.

Freed’s President Corey Shepherd said the project “will be like living in a piece of modern art.”

Located at Adelaide and Duncan streets, west of University, the tower will feature views of Lake Ontario and artwork by artist Takashi Murakami’s.

The art piece, Together with the Flower Parent and Child, will be featured prominently in the lobby. Murakami is known for making groundbreaking contributions to contemporary visual culture.

 

Adrian Smith + Gordon Gill Architecture have designed the skyscraper. The firm is known for creating the next world’s tallest skyscraper Jeddah Tower in Saudi Arabia, as well as Central Park Tower in New York.

“The formal geometry of the tower is defined by both its arrival and skyline expressions,” said AS+GG Partner Gordon Gill. “Diamond shaped facets create a distinctive arrival and retail experience at street level, while the complimentary faceted silhouette of the tower’s top creates an iconic identity within the Toronto skyline. The tower boasts luxurious hotel and residential functions with abundant amenities including terraced, outdoor garden spaces.”

Toronto’s DesignAgency leads the interior design with a collection of spaces and amenities that “transport residents and hotel guests into magical, fun, and exciting worlds of design.”

Freed Hotel and Residences is scheduled to begin sales in March 2024.

New joint awards celebrate Vancouver Island

The Urban Development Institute – Capital Region (UDI-CR), Canadian Home Builders Association – Vancouver Island (CHBAVI), and the Vancouver Island Construction Association (VICA) have announced a new joint award event: the Vancouver Island Building Industry Awards Gala.

The Vancouver Island Building Industry (VIBI) Awards celebrate excellence and innovation within the construction and development industry on Vancouver Island, showcasing the highest level of building achievement.

Through UDI-CR, CHBAVI, and VICA, the VIBI Awards represent the development, residential homebuilding, industrial, commercial, institutional, and multi-residential construction sectors on Vancouver Island.

“The VIBI Awards will be Vancouver Island’s largest construction and development industry award event,” said Kathy Whitcher, UDI-CR executive director. “A joint celebration of our industry underscores the numerous successful years that the development and construction sector has enjoyed, as well as the island communities that benefit from our members’ work.”

The construction and development sector on Vancouver Island employs more than 35,000 people, with the total value of current construction projects on the island being over $11 billion and $12 billion worth of proposed construction projects.

“Through our collective associations, we represent over 800 member companies, many of which are locally owned and operated. Every year, our members build world-class facilities and homes, and we are enthusiastic to use the VIBI Awards to recognize their efforts,” said Rory Kulmala, CEO, Vancouver Island Construction Association.

The VIBI Awards Gala will premiere on June 1st, 2024, at the Victoria Conference Centre (Crystal Gardens) and will host 400 member companies and their guests.

“Built on the success of CHBAVI’s VIBE awards, the VICA Awards and drawing inspiration from UDI-CR’s Provincial Awards program, this collaboration signifies a shared dedication to championing excellence and setting new benchmarks in the ever-evolving realm of building construction and design,” said Kerriann Coady, Canadian Home Builders Association – Vancouver Island CEO. “We look forward to the success of this inaugural event and the many successful years to come.”

 

Construction cost escalators still in play

Atlantic Canada stands out with markedly lower construction costs than points westerly in Altus Group’s recently released estimates of average per-square-foot price ranges for various housing formats in nine major Canadian markets. Costs are generally highest in Vancouver across all multifamily categories, including low-, mid- and high-rise concrete buildings and low-rise wood-frame apartments up to six storeys.

The producers of the 2024 cost guide note that some of the inflationary pressures seen in 2021 and 2022 have now eased, while other escalators remain. Falling costs for commodities and shipping containers are flowing through to construction materials and supplies, but surging demand for housing and an uptick in infrastructure projects creates competition for both materials and labour.

“Consequently, the overall outcome has been characterized by low to moderate cost escalation rather than substantial cost reductions,” the introduction to the cost guide states.

“It appears that the scales are tilting toward moderation of construction costs over the next 6 to 12 months, however, this equilibrium may be relatively short-lived as rapid population growth and a large backlog of projects will inevitably spur more development activity in key Canadian cities,” adds Colin Doran, Altus Group’s head of development advisory in the Americas.

Data for residential cost estimates has been gleaned from 2,550 projects across the multifamily, single-family and seniors’ housing sectors. For multifamily, that covers five different height categories of concrete buildings and low-rise wood-frame apartments, and also includes an estimate of the cost premium for higher-quality design and finishes beyond typical mid-market offerings. Only three markets — Vancouver, the Greater Toronto Area (GTA) and Ottawa-Gatineau — garner cost estimates for towers taller than 60 storeys, whereas there are few projects taller than 12 storeys in Atlantic Canada.

The cited average costs apply only for the scope of construction for the above-grade functions of the building, with additional calculations needed for below-grade parking facilities. Market-to-market variations for the same asset type are attributed to differing standards and specifications, as well as labour and material costs.

“The specification of a mid-quality condominium in Vancouver will typically be a higher specification than what is provided for a mid-quality condominium in Halifax. In addition, there are climate and code variations between cities. For instance, the HVAC system required in Calgary will be different than the HVAC system required in Vancouver,” the cost guide states.

Costs generally rise with building heights, with some of the widest differentials seen in the GTA. There, hard costs for concrete low-to-midrise buildings up to 12 storeys range from $285 to $390 per square foot (psf) versus $340 to $425 psf for 40- to 60-storey apartment towers. Costs are more even in Calgary, at $280 to $335 psf for low-to-midrise concrete apartments up to 12 storeys and $295 to $345 psf for towers of 40 to 60 storeys.

Both types of structures are priciest to build in Vancouver — at $325 to $400 psf for the shorter and $360 to $450 psf for the taller. At the other end of the scale, Halifax offers up the lowest costs for concrete structures up to 12 storeys, at $185 to $265 psf, while costs for similar-sized buildings are pegged at $195 to $280 psf in St. John’s.

Construction costs for low-rise wood-frame apartment buildings are the lowest in Halifax, at $165 to $200 psf, followed by St. Johns, at $170 to $250 psf. They are priciest in Vancouver at $250 to $350 psf, while topping out at $330 psf in Calgary, Edmonton, Winnipeg and the GTA. Wood-frame is cheaper than those markets to the west in Ottawa ($220 to $285 psf) and Montreal ($200 to $265 psf).

CRA introduces new rule to deter property flipping

Canada has introduced a new deeming rule for the 2023 taxation year that will impact residential property owners engaging in property flipping for capital gains. The rule will require property owners (rental owners included) to report profits from the sales of any property that was purchased and sold within a 365-day period as business income unless it meets the criteria for exemption. This means all disposed profit incurred from property flipping is fully taxable and won’t qualify for the 50-per-cent capital gains inclusion rate.

According to the CRA, a flipped property is “any housing unit in Canada that isn’t already considered to be inventory of the taxpayer and was owned by the taxpayer for less than 365 consecutive days prior to the disposition (12-month holding period).”

A transaction could be excluded if the circumstances align with one of the accepted exemptions outlined by the CRA. This includes the death of the taxpayer, a relative joining the household; a divorce/separation, bankruptcy, illness, or disability, among other life events.

In the case of a taxpayer who owns a right to acquire a housing unit located in Canada, the 12-month holding period resets once the taxpayer who entered into a purchase and sale agreement secures ownership of the property.

The 2022 Fall Economic Statement proposed that this deeming rule will be extended to include profits arising from the disposition of the rights to purchase a residential property via an assignment sale. Profits arising from an assignment sale would be deemed to be business income if the rights to purchase a property were assigned before the end of the 12-month holding period. The 12-month holding period would reset once the taxpayer who entered into a purchase and sale agreement secures ownership of the property.

For the full details, click here: Residential Property Flipping Rule – Canada.ca

 

Condo owners saw home values decline in 2023

Condo owners who invested in what was considered a more affordable housing option at the end of 2022 saw their home values decline last year, with year-over-year price drops across 26 markets.

A new study from Point2 analyzed the changes in property values across Canada’s 67 largest cities in 2023 and found the sharpest percentage declines were in the condo market. The hardest hit cities were located in Ontario, in Mississauga, London and also in Lethbridge, Alberta, where drops ranged from 5.8 per cent to 6.1 per cent

Meanwhile, the highest net losses occurred in Barrie, Ont. (- $28,000), and Victoria B.C. (-$28,250). In Mississauga, owners’ newly acquired homes lost $36,600 in value, essentially depreciating by $100 on a daily basis.

Condo prices continued their year-over-year downward path in 26 markets in December, as well. The average condo price in Mississauga was $635,600 in 2022 and dropped to $599,000, by the end of 2023. In Toronto, the average price is $711,000 compared to $734,400 in 2022.
Also in Ontario, Hamilton, St. Catharines and Niagara Falls show drops of between $16,000 and $18,400.

Condo owners are also seeing gains in seven other cities. Condos in Coquitlam, B.C.; Halifax, Nova Scotia; Richmond, B.C. and Calgary, Alberta added more than $50,000 in one year.

Single-family homeowners across 18 cities have also seen their property values plummet, with Burlington, Ont. topping that list. For owners there who bought at the end of 2022, their home is currently worth nearly $60,000 less than what they paid for it. Other cities in Ontario experienced big losses, as well. Kitchener, Markham and Mississauga homeowners lost as much as 56,043 annually.

Although single-family homeowners are seeing change for the better. In November 2023, the data showed that homes were losing value in 25 large cities, but in December owners in only 18 cities lost home value.

Access to units for common element work

Pursuant to Section 19 of the Condominium Act, 1998 (the “Act”), condominiums have the right to enter condominium units (and exclusive-use common elements) to perform various objects and duties upon reasonable notice.

The typical examples of the need for such access include repairing a common element riser, which is only accessible from the unit, performing fire inspections of the unit’s fire alarm, or performing repair work to the unit that the owner was required to perform but did not within a reasonable period of time under Section 92 of the Act.

But what happens when the purpose of access is less clear or more unusual?

Specifically, what if access is required through a residential unit to perform common element maintenance or repairs to the building in general? The most common example of this in my experience over the years relates to access to roof anchors, which are located on an exclusive-use common element balcony or terrace. In this scenario, a condominium would seek access to the residential unit to travel through the unit to the balcony in order to perform work.

Usually, the roof anchors are accessed in order for the condominium to perform window washing or other general maintenance or repairs to the common elements. That is, the work to be performed by the condominium really has nothing to do with the applicable residential unit itself.

In such a situation, a residential unit owner may be understandably concerned about contractors and equipment moving through the unit, both as an inconvenience or allegedly a nuisance. The residential owner often argues that the condominium can access the balcony from the exterior (via swing stage or other means).

Another example of such unit access may be staging work on a terrace in order to maintain or repair the exterior of the building, and where access to the terrace might only reasonably be available through the unit.

Such situations in the past have created headaches for condominiums and their boards and managers. Having a dispute with an owner over access for such purposes can result in delays, legal and other costs.

Fortunately, this very situation was addressed last year in the decision of the Ontario Superior Court in Ron John William Dowdell et al. v. York Condominium Corporation No. 403 (the Dowdell case).

The basic facts of the Dowdell case are the same as the balcony anchor scenario discussed above. In brief, the owner was refusing access through the unit to the exclusive-use balcony and the roof anchors situated there. The purpose of entry included required periodic inspections of the anchors, together with using the anchors to facilitate a swing stage to clean windows below the applicable residential unit.

Both the owner and the condominium brought competing applications to the Superior Court against each other. Dowdell claimed in part that the condominium was acting oppressively in demanding access through the unit, and the condominium sought orders requiring Dowdell to provide access through the unit. The owners’ application included a claim for damages based on oppression, loss of enjoyment of the unit and breach of the right of privacy.

The owners’ primary argument was that access to the balcony/roof anchors could be arranged entirely from the exterior of the building, and not requiring access through the unit. The owners alleged that the access to the unit was disruptive and a nuisance and unreasonably affected them.

Ultimately, the court sided with the condominium corporation and made orders that the owners provide access through the unit. The evidence as accepted by the application judge included that the cost of arranging for a swing stage entirely from the exterior, rather than access to the unit, involved considerable cost and that it was reasonable for the condominium to insist upon access through the unit.

The key to the decision in my view is the concept of ‘reasonableness’. That is, the condominium was entitled to perform its duties in a reasonable manner, and that was the case here.

We would expect that this decision would apply to other types of ‘unusual’ access to a unit, including access for example to stage maintenance/repair work on an exclusive-use common element terrace.

Of course, facts will differ from case to case, and there appears to be a balancing of the owners’ right to minimal disturbance versus the condominium’s right to perform its maintenance/repair work in a manner that is reasonable and not excessively costly compared to any alternatives.

Also worth noting is that many condominiums may have provisions in the declaration specific to particular units and their exclusive-use balconies that reference the existence of roof/balcony anchors or other services and explicitly provide for a right of entry via the residential unit. In those cases, the access is more obvious and less of a question. Unfortunately, not all condominiums have such a provision in their declarations, including in the Dowdell case.

These issues of unit access for general common element repairs were not previously addressed in any detail in the jurisprudence, and was an open question and an ongoing source of disputes among condominiums and owners.

Thankfully, the Superior Court has provided clarity on the issue as discussed above which should be of assistance to condominiums and owners. As we all know, condominiums can often be a fertile ground for many disputes. This decision should help reduce at least one type of dispute which, while not a ‘monumental’ step forward, is nonetheless significant and welcome.

David Thiel is a partner in the condominium law group at Fogler, Rubinoff LLP. He can be contacted at [email protected] or 416.941.8815.

 

Toronto Community Housing appoints new president and CEO

Effective April 2, 2024, Sean Baird will take over as Toronto Community Housing Corporation (TCHC)’s new president and CEO after an extensive executive search. According to Adele Imrie, Chair of the Board of Directors of TCHC, the Board was unanimous in their decision to appoint Baird, who’s described as a visionary leader and a seasoned public sector executive with significant experience in housing and social services.

Sean Baird“Toronto Community Housing is at a critical juncture in its history, readying itself to participate in the City of Toronto’s affordable housing strategy,” Imrie said. “The Board has been purposeful in our search for a visionary leader who will maximize the skills and expertise of TCHC as a force for city building. Sean Baird’s expertise and his background in the housing and social service sectors distinguished him as a transformational leader to guide the organization into the future.”

Baird is currently the Commissioner of Human Services at Peel Region, a role that involves overseeing all social services functions for over 1.5 million residents across Mississauga, Brampton, and Caledon. Prior to that, he spent over three years in the role of Commissioner of Digital & Information Services at Peel. Former accolades include being internationally recognized and awarded “Top Digital CIO” and “Best Digital Architecture in Local Government” for 2019 by ICMG Enterprise Architecture Ratings.

Baird comes to TCHC at a pivotal time in the organization’s history, after recently celebrating its 20th anniversary in 2022, and now preparing to take on new responsibility in 2024 as part of the City of Toronto’s transformative new housing plan.

“Toronto needs strong, passionate leaders that push for greater availability and affordability of housing and housing support services, factors that underpin the quality of life for many of our citizens,” said Mayor Olivia Chow. “TCHC’s Board of Directors has made an excellent choice in their hiring of Sean Baird. He has the skills and experience to effectively lead TCHC and be an important voice for housing needs in our city.”

Tom Hunter, Interim President and CEO, will be returning to his role as CEO of Toronto Seniors Housing on April 8, following a transitional handover with Baird.

For more info, click here: Sean Baird to join Toronto Community Housing as new President and CEO | Toronto Community Housing (torontohousing.ca)

Kamloops cancer centre plan approved

The Government of British Columbia has approved the business plan for the BC Cancer Centre at Royal Inland Hospital (RIH) in Kamloops.

The project’s budget is approximately $359 million shared between the provincial government, Interior Health and the Thompson Regional Hospital District.

“Approval of the business plan is a critical milestone for this crucial project. This state-of-the-art cancer centre will benefit patients in Kamloops and the surrounding area by offering the confidence from knowing that we’re building treatment capacity for now and the future,” said B.C. Health Minister Adrian Dix.

The five-storey facility will be built on the Westlands site on the RIH campus with space for radiation treatment, radiation-therapy planning, including a CT Simulator, an outpatient ambulatory-care unit, including 10 exam rooms, and two consultation rooms for radiation-therapy service, an additional MRI suite, and patient arrival and check-in areas. The centre will have three linear accelerator vaults. These heavy, concrete structures contain radiation equipment used for cancer-patient treatment.

In collaboration with Indigenous partners, there will also be a sacred space for patients, caregivers and staff, with features to support traditional ceremonies. A new 470-stall parkade will also be constructed as a part of the centre.

“Delivering expanded, comprehensive cancer care in Kamloops is one of our top priorities for the upcoming years. Heading into the procurement process, and subsequently, construction, we look forward to engaging with local communities, patients, families and Indigenous partners to ensure the delivery of high-quality, culturally safe cancer care for people across the region,” said Susan Brown, president and CEO, Interior Health.

The procurement process is underway. Construction is expected to begin in 2025 and complete in 2028.

 

SRG Partnership joins CannonDesign

SRG Partnership has joined CannonDesign, bringing together two firms committed to making a profound difference through design.

Both SRG Partnership and CannonDesign share a commitment to designing places that help people, communities, and the environment to flourish. Together, the firms will amplify their impact throughout the Pacific Northwest and across the country, setting new standards for transformative design for health and wellness, education, science and technology, sports and recreation, and culture.

Going forward, SRG Partnership will be known as SRG + CannonDesign. With the addition of SRG’s Portland and Seattle studios, CannonDesign now has 18 offices and nearly 1,300 teammates across North America and India.

“SRG Partnership defines itself with a statement—Invent a better future—that truly resonates with me,” said CannonDesign’s CEO Bradley Lukanic, AIA. “Partnering with this established design firm is a wonderful start to the year. The alignment and focus between our firms will drive us forward; together we’re going to create positive impacts with design excellence inside and outside of our communities.”

SRG has a storied history in the Pacific Northwest spanning more than 50 years. Led by president Lisa Petterson, the firm is recognized for its commitment to crafting deeply sustainable buildings that enhance the quality of life. Its more than 60 employees have led award-winning projects of all scales, from the Oregon Health & Science University Knight Cancer Research Building, to Hayward Field at the University of Oregon, the Multnomah County Central Courthouse, and the Center for Behavioral Health and Learning at the University of Washington, among others.

“SRG has been making an impact consistently, but we recognize we can achieve even greater growth and impact alongside CannonDesign,” noted Petterson. “The alignment in our cultures, commitment to diversity, and emphasis on sustainability is striking. CannonDesign’s Living-Centered Design ethos also beautifully aligns with our purpose to leave a lasting impact on communities. I’m genuinely excited about the new opportunities this merger brings to our people, clients, and the communities we design for.”

 

Negligence and dangerously defective work

On January 24, 2024, the BC Court of Appeal illuminated the intricate landscape of liability for negligence in construction projects in the decision of Centurion Apartment Properties Limited Partnership v. Sorenson Trilogy Engineering Ltd., 2024 BCCA 25. This case involves a 11-storey 90-unit concrete apartment building in Langford, B.C., which faced evacuation post-occupancy due to severe structural deficiencies jeopardizing resident safety.

Background

The action was commenced by related entities (collectively, Centurion) that are part of a real estate investment trust and the current legal and beneficial owners of the building at issue.

Centurion purchased the building in April 2019 from the original owner-developer by acquiring the shares of the company holding legal title to the land and building.

The contractual matrix for the design and construction of the building involved the owner-developer retaining a designer-builder, DB Services Victoria Inc. (DB), which in turn retained structural engineers, Sorensen Trilogy Engineering Ltd. (engineers), as consultants on the project.

The contracts between the parties contained clauses allocating and limiting liability. The contract between DB and the engineers limited the structural engineers’ liability, “whether in contract or tort”, to the fees paid to the engineers for their services on the project, which amounted to $88,775. The contract between the owner-developer and DB was a standard form CCDC14 – Design-Build Stipulated Price Contract, which stated that there was no contractual relationship between the owner-developer and the engineers, allocated liability for acts and omissions of the engineers to DB, and limited the extent of DB’s liability to the $1 million of insurance it was required to carry.

After the building was occupied, Centurion became aware of serious deficiencies in design and structural integrity, following investigations by Engineers & Geoscientists of British Columbia (EGBC) and the City of Langford which resulted in the city revoking the occupancy permit, requiring the building to be evacuated and the residents to be relocated to a hotel. The EGBC had received a complaint which ultimately led to the determination that the building did not meet certain requirements of the code and resulted in citations against the engineer of record and principal of the firm for accepting a retainer despite lack of the requisite expertise, unprofessional conduct, and incompetence.

BC Supreme Court

Centurion sought recovery for damages arising from negligence in design and construction of the building from the engineers. The engineers applied to summarily dismiss the claim for negligence arguing that there was no relationship of proximity sufficient to establish a duty of care. The court sided with the engineers and held that the freely negotiated contractual arrangements between sophisticated parties expressly addressed and allocated risk, therefore negating any relationship of proximity and altering the duty of care that would otherwise be owed by the engineers to the owners. Accordingly, the owners could not circumvent the contractual arrangements by pursuing a claim in tort. The court also upheld the limitation of liability clause, restricting the engineers’ liability to the fees paid for their services.

BC Court of Appeal

In a pivotal reversal, the Court of Appeal challenged the lower court reliance on the parties’ contractual matrices without considering the true nature of the risk, distinguishing between cases shoddy or substandard workmanship from dangerously defective work. It affirmed that a duty of care does arise between a supplier of goods and a subsequent purchaser if the defective goods present a risk of real and substantial danger necessitating repair. That is, the engineers had a duty, independent of any contractual stipulation, to take reasonable care in designing and constructing the building to ensure that it did not contain defects that pose foreseeable and substantial danger to the health and safety of occupants. Given the parties’ expectations, the foreseeable reliance on the professional competence of the engineers, and public policy concerns, it would not be just and fair for the contractual arrangement to eliminate a duty of care in tort.

With respect to the clause limiting the engineers’ liability to the fees charged, the Court of Appeal set aside the lower court reasoning and expressed reservations about determining whether such a clause was unconscionable summarily, emphasizing the need for weighing the factual matrix and assessing allegations of fraud and misrepresentation against the engineers at trial to determine validity or enforceability of the limitation clause.

Takeaways

This decision underscores that corporate structures and contractual arrangements between parties in the construction chain do not operate to completely absolve liability under the law of negligence when the nature of the risk rises to the level of real and substantial danger.

This will serve as a cautionary tale reminding construction participants to broaden their outlook with respect to consequences of any acts or omissions beyond contractual obligations by considering potential impact on the expectations, reliance, safety, and interests of other stakeholders.

The Court of Appeal’s refusal to allow contracts to be used as shields against justified claims emphasizes the policy rationale for holding parties accountable for foreseeable consequences of breaches of duties that carry potential for significant risk of harm.

The appeal decision leaves the door open for owners seeking to advance claims for pure economic loss against parties in construction projects with whom no direct contractual relationship exists when sufficient proximity can be established giving rise to a duty of care.

 

Iman Hosseini is an associate at Alexander Holburn Beaudin + Lang LLP. He is a member of the firm’s Construction + Engineering, Business Disputes, Labour + Employment, Corporate/Commercial, and Wills, Estates + Trusts practice groups.

 

 

The power of personalization and customer experience

In today’s highly competitive digital landscape, facility cleaning and maintenance businesses face a daunting challenge in standing out and capturing local market share. However, these businesses can achieve significant growth by implementing cost-effective strategies incorporating personalization and enhanced customer experiences.

Localization involves adapting marketing strategies to suit a specific target market’s unique needs and preferences. It goes beyond translation and encompasses cultural nuances, language, and regional preferences. Localizing digital marketing efforts allows businesses to effectively engage with their audience, build trust, and establish a strong brand presence:

  • Geo-targeted advertising: Utilize Google Ads or social media advertising to target customers in specific geographic areas. By delivering tailored ads to local customers, cleaning and maintenance businesses can expand their visibility and attract a new clientele.
  • Customized landing pages: Create landing pages specifically designed for local customers. Incorporate local testimonials, images, and information to establish a sense of familiarity and trust. This personal touch will enhance customer engagement and lead to higher conversion rates.

Personalization is a crucial aspect of localizing digital marketing strategies. Cleaning and maintenance businesses can create a personalized experience by tailoring content and offers. This can be achieved through various means, such as analyzing customer data, segmentation, and behaviour. Understanding customer preferences and delivering relevant content significantly enhances customer engagement and drives conversions.

Personalized email marketing, for example, allows you to leverage email marketing automation tools to segment your customer base by location to send targeted emails containing local offers, events, or promotions. Small businesses can establish themselves as active community members by tapping into local interests and events.

Customer experience (CX) is pivotal in localizing digital marketing growth strategies. CX encompasses every customer interaction, from the initial touchpoint to post-purchase support. By prioritizing customer experience, businesses can create a positive and memorable journey for their customers. This can be achieved through seamless website navigation, personalized recommendations, responsive customer support, and streamlined purchasing processes. A great customer experience fosters loyalty and encourages positive word-of-mouth, increasing brand awareness and growth:

  • Online reputation management: Monitor and respond to customer reviews across various platforms. Small businesses can create personalized responses that show they value their customers and are committed to addressing any concerns. A positive online reputation is critical for attracting and retaining new customers.
  • Social media engagement: Frequently engage with people on social media platforms by responding to comments and inquiries. Provide quick and helpful responses to foster a positive relationship with your audience. Regularly share local updates, behind-the-scenes content, and customer success stories to build credibility and trust.
  • User-generated content: Ask customers to share their experiences with your business through reviews, testimonials, and social media. These authentic and relatable experiences help build trust and attract new customers.

The power of data and new technologies

Data and analytics are invaluable tools in localizing digital marketing strategies. Businesses gain insights into their target audience’s needs and preferences by analyzing customer behaviour, preferences, and purchase patterns. This data can then be used to create personalized marketing campaigns, optimize content, and refine customer experiences. Additionally, data-driven decision-making allows businesses to measure the impact of their localized marketing efforts and make necessary adjustments.

Technology has revolutionized the way businesses localize their digital marketing strategies. Automation tools, artificial intelligence, and machine learning algorithms enable businesses to streamline processes, deliver personalized content at scale, and optimize customer experiences. From chatbots providing instant support to personalized email marketing campaigns, technology empowers businesses to engage with their audience and drive growth efficiently.

RELATED: Use AI to build your commercial cleaning business

Localizing digital marketing growth strategies through personalization and customer experience is a powerful approach for cleaning and maintenance businesses seeking to connect with audiences more meaningfully. By understanding the importance of localization, harnessing the power of personalization, prioritizing customer experience, leveraging data and analytics, and embracing technology, organizations can create impactful marketing campaigns that resonate with their audience, foster loyalty, and drive sustainable growth in today’s competitive digital landscape.

Dave Bonnemort is the Master Franchise Owner for Anago of Utah, part of the Anago Cleaning Systems brand supporting over 1800 franchises across the U.S. and Canada. For more information about Anago of Utah, visit AnagoCleaning.com/Utah.