Distressed asset sales remain a steady fraction

Distressed asset sales were a nominal and relatively consistent fraction of the Canadian investment property market in the first half of 2023, accounting for less than 2 per cent of total transaction volume. JLL’s newly released fall outlook on commercial real estate calls this “low by historical standards” and suggests lenders are key to the divergence from default trends seen in the United States.

Total deal value from distressed properties is lagging from earlier in the decade, hovering below $200 million for the first six months of this year. That compares to $920 million over 12 months in 2021 and about $800 million in 2020, when distressed asset sales equated to 2.6 per cent of the overall commercial transaction value.

The more modest sales volume from January to June also reflects a general slowdown in deal-making and a shift in buyers’ profile. Small investors and developers have driven a growing share of activity as institutional investors and REITs pull back, resulting in more deals in the $5- to $50-million range. “Asset sales over $50 million are accounting for the lowest amount of transaction volume in over a decade,” JLL analysts report.

They also hypothesize this new dominant segment of investors is well positioned to snag any appealing distressed assets that might come along, noting: “These groups are not subject to the same internal reporting structures as pension funds, REITs and fund managers, and are therefore able to transact faster and take advantage of more opportunities during a time of market dislocation.”

Looking at previous times of economic upheaval, dispersal of distressed properties peaked at 2.7 per cent of total sales volume in 2009 following the global financial crisis, while another upward surge occurred with the collapse of oil prices in 2014-2015. Throughout much of the rest of the past dozen years, 1 to 2 per cent of total transaction value has arisen from distressed properties.

JLL analysts typify Canadian lenders as more conservative than their American counterparts, tending to give more credence to historical and current data than to projections for forward-looking markets. As well, recourse loans are more prevalent in Canada, while prospective borrowers with dubious histories are more likely to be known and shunned given the smaller and more interconnected lending community.

Along with those structural controls, JLL analysts foresee a general reluctance to trigger receivership sales in the current market. “In the case of non-recourse loans, where the lender can only rely on the property for repayment, we anticipate lenders will work with borrowers to avoid taking back assets,” they submit.

That also appears to be the case in the U.S., where DBRS Morningstar has been tracking an upward tick of delinquent loans packaged in commercial mortgage-backed securities (CMBS). For August, the credit rating agency reports a delinquency rate of 4.1 per cent. That varies fairly significantly by property type, at: 0.3 per cent for industrial; 1.5 per cent for multifamily; 4.9 per cent for office; and 6.7 per cent for retail.

There have been more than USD $1 billion (CAD $1.35 billion) in newly delinquent loans in each month since the first quarter of 2023, and, each time, that volume has exceeded the balance of cured loans. For August, office properties underpin about 44 per cent of the new delinquencies with retail adding 39 per cent. The month also saw about USD $1.5 billion (CAD $2 billion) in loans transferred to special servicing to work towards resolving defaults, with about 51 per cent of that tied to office properties.

Distressed asset sales to liquidate nearly USD $419 million (CAD $565 million) in loans resulted in losses of about USD $218 million (CAD $294 million) for the month. DBRS Morningstar highlights similar sinking values of properties in newly delinquent loans — citing the Aon Center in Chicago, which now carries an appraised value of USD $414 million (CAD $559 million), down by about half from when the loan was issued.

“Many special servicers continue to hold on to the debt for longer and work out situations with borrowers,” DBRS Morningstar analysts observe.

Additional recent commentary from the credit rater projects that it will be challenging for many borrowers to refinance office properties. About USD $11.5 billion (CAD $15.5 billion) in office-backed CMBS are due to mature in 2024 in an environment with the highest vacancy rates in multiple decades, average asking rents often about 30 per cent lower than in the pre-pandemic era and expectations that valuations will drop lower as the market continues to respond to rising interest rates.

Older unrenovated buildings look particularly vulnerable. DBRS Morningstar finds that nearly two thirds (246 or 382) of properties facing loan maturity in 2024 were constructed prior to 2000. They also represent about 60 per cent or nearly USD $6.7 billion (CAD $9 billion) of the loan balance.

“Lease rollover will likely take a toll at all but the most recently built properties,” the analysis states. “Roughly 75 per cent of office loans maturing through 2024 will have trouble refinancing based on our analysis because of interest rates that are 3 to 4 per cent higher than when the loans were originated, higher expenses and waning demand.”

B.C. launches one-stop permit website

The B.C. government has launched a new one-stop shop website, first announced in January, that aims to fast track the permitting process for builders.

According to the government, the Single Housing Application Service (SHAS) will help deliver more homes faster by creating a simpler permitting application for homebuilders. The service will help clear permitting backlogs, while maintaining environmental standards. With the introduction of SHAS, the province expects permit timelines to be reduced by two months.

The SHAS connects homebuilders to “navigators,” dedicated staff in the Ministry of Water, Land and Resource Stewardship, who guide applicants through all stages of permit applications, act as the single, dedicated point of contact for all information related to homebuilding permits and co-ordinate permitting decisions across ministries.

“Our government is taking action. We’re making it easier and faster to get provincial permits to build new homes, and offering financial support for people who could build a suite they can rent out at more affordable rates. We’ve got lots to do, which is why we’re focusing on initiatives like these that make a real and tangible difference for thousands of families,” said Premier David Eby.

The second initiative centres on secondary suites and comes ahead of planned legislation this fall to make secondary suites legal throughout the province, and a pilot incentive program to help homeowners build secondary suites.

Refinishing floors: a cautionary tale

Keeping a facility clean is no easy feat, requiring a teamwork approach by facility managers and cleaning contractors. This is the story of an error made on a job refinishing floors early in my career, teaching me a lesson that hopefully others can avoid by learning from my mistake.

As a commercial cleaner, I was asked to refinish a client’s office floors. The floors were in a building constructed on a pier in San Francisco, and there was about a mile of surface to cover. When the request was made, I assured the client that I was capable of handling this task, assuming that the skills could be learned on the job. That turned out to be a mistake, teaching me several lessons while on the job:

Refinishing floors is a complicated endeavour, not something a contractor can just jump into. It involves knowing the type of floor, the type of finish that works best on that floor, the type of equipment needed, proper technique, and even a little bit of luck. As a note, contractors should always test and practice on a smaller floor before tackling a project of this size.

As well, commercial cleaners should know that some floors are more sensitive to certain cleaning solutions and equipment than others. Some floors, such as stone floors, can be damaged by harsh chemicals or abrasive tools. But even more, conventional tile floors can be negatively impacted by chemicals and equipment, depending on the type of material used to make the floor. Research is required to determine the best way to clean the floor before starting the job.

The proper equipment and process are also required. If your equipment is not powerful enough to get the job done, it will take extra time, labour, and could damage your equipment in the process. In this case, in conjunction with unqualified equipment, I used mop heads that quickly became soiled, spreading more soil and grime on the floor surface than they removed. With an advanced floor machine and cleaner, quality mopheads, the job would have been completed efficiently, without contaminating the surface. The process is important, too. Always clean the floor properly before applying the finish. Any soil or debris on the floors will show through the finish. Sweep or vacuum thoroughly before applying the new coat.

Reading the labels on the stripping solution is a critical step in the process. The directions indicate how much water to mix with the stripper, clarifying details like “use cold water only,” which maximizes the results of the product. Dilution is also key. Trial and error is not a reliable system – follow the directions laid out by the manufacturer to achieve your desired results.

It’s important to know what the scope of the job entails. Things like drying time can make a big difference to your costing and budget. If you don’t allow enough drying time, the finish can be uneven or peel off. With a floor as large as this one, one coat of finish should have been applied each evening for three evenings.

Without having learned these lessons, the results were not acceptable to the client: the floor streaked and scratched, with dull spots and uneven patches. There were even some scratched baseboards where I had lost control of the floor machine.

As a result of these miscalculations, the job was a total loss to me, having to hire another company to fix my mistakes and make it right. The lesson was that these costly and embarrassing mistakes could have been avoided had I done the due diligence and prepared properly for the job.

Communication and transparency are key between cleaning contractors and their customers. Cleaners need to speak up if they do not have experience with a task or have not yet tackled a project of that scale. Managers need to communicate well, too. Rather than assuming your cleaning contractor is well-versed on all cleaning tasks, clarification may be needed for certain jobs. Remember, facility managers and cleaners are a team, working together for fast, efficient, and cost-effective results.

Robert Kravitz is a former building service contractor and now a writer for the industry. He can be reached at [email protected]

Student debt quashing home buying dreams in Ontario

A new poll from the Ontario Real Estate Association (OREA) reiterates how student debt is a significant barrier to homeownership. The Impact of Student Loan Debt on Homeownership report shows that over half of post-secondary students owe money and graduates with debt greater than $5,000 are finding it harder to save up for a home.

Some Ontarians must look for options in more affordable provinces, with 42 per cent of graduates considering leaving the province for a lower cost of living and more attainable housing. Other life milestones being delayed as a result of student debt include moving out of the family home, getting married, and starting a family.

“Student debt is not merely a financial burden; it’s the biggest barrier to the Canadian dream of homeownership for many young Ontarians and their families,” said OREA CEO Tim Hudak. “Our research shows that the weight of student loans contributes greatly to the housing affordability crisis which, if left unaddressed, will lead to fewer young Ontario homeowners. All levels of government and industry need to work together to bring affordability home to Ontario graduates.”

Due to high housing costs, almost half of the graduates’ parents surveyed plan to stay in their family home for the next decade, rather than downsizing. This will prevent more housing supply from entering the market.

The majority post-secondary graduates polled (75 per cent) still have their hearts set on homeownership. At least 80 per cent of grads support various government interventions that address housing affordability.

OREA has proposed several recommendations to help address the housing affordability crisis that young Ontario graduates are facing:

The provincial and federal government should collaborate to allow graduates to alleviate a portion of their OSAP loan when they add funds into Canada’s ‘First Home Savings Account’ (FHSA). The government should match the addition of funds dollar-for-dollar. For example, if a graduate adds $5,000 into the FHSA, the government will reduce the students’ OSAP loan by $5,000.
Ontario should permanently eliminate the accumulation of interest on all provincial student loans including loans currently being repaid, which is already in effect for interest on federal student loans. This policy aligns with the announcement on April 1st, 2023, from the Government of Canada, which permanently eliminated the accumulation of interest on all federal student loans including loans currently being repaid.
Ontario should increase the grace period for OSAP loan repayment from 6 months to 1 year, allowing students an additional 6 months to obtain stable employment and save money before making payments. All Ontario students have a period of 6 months after graduating or leaving full-time studies before they are required to begin paying back their loan.
Ontario should enable automatic notification to OSAP when graduates file their taxes and receive their OSAP tax receipt. Following the notification, eligible graduates should automatically be entered into Canada’s ‘Repayment Assistance Plan’ (RAP), removing the burden on graduates to re-apply every 6 months.
Ontario should partner with the National Student Loan Service Centre to create an online financial education hub that outlines all necessary information related to student loans. This should include information from each post-secondary institution. This would ensure that students/graduates do not miss important information about repayment and default processes, loan reduction options, etc.

“Student debt casts a shadow over this dream, leaving aspiring buyers caught between their educational ambitions and the desire for a place to call their own,” added OREA President Tania Artenosi. “We need to work to empower the next generation of homeowners, and that starts with pro-homeownership policies aimed at alleviating the pressures of student loan debt.”

Fort St. John opens new RCMP detachment

The City of Fort St. John, in partnership with the Royal Canadian Mounted Police (RCMP), celebrated the opening of the new net-zero Fort St. John RCMP Detachment, located at 10712 – 100 Street.

“We are immensely proud to mark this significant milestone in our community’s history with the opening of the new Fort St. John RCMP Detachment. This collaborative effort not only enhances our city’s safety and security but also underscores our commitment to environmental stewardship,” said Mayor Lilia Hansen.

Replacing the aging 35-year-old detachment, the newly constructed $51.4 million RCMP Detachment boasts a contemporary design, featuring innovative mass timber construction and a 145-kilowatt photovoltaic system. It is anticipated that the detachment will outperform traditional builds by consuming over 80 per cent less energy, equating to annual savings exceeding $60,000.

This groundbreaking endeavour adopted an integrated design process, where a team of professionals, including architects, engineers, and project managers, work collaboratively to design the building. This values-based approach, instead of a cost-based approach seen in typical construction projects, leads to greater efficiencies, improved designs, and higher quality projects.

The Fort St. John RCMP Detachment houses more than 90 employees, including a combined total of 65 police officers from both municipally and provincially funded units, and 25 support staff.

The City of Fort St. John, through the Peace River Agreement, funded the majority of the project, with the RCMP contributing through annual lease payments. This project was also fortunate to secure a $1.5 million grant from the Green Municipal Fund – funded by the Government of Canada, and administered by the Federation of Canadian Municipalities.

Retrofits: an overdue climate solution

It’s been a troubling year for weather-related incidents in Canada. In the most destructive wildfire season on record, lethal blazes continue to tear through parts of the country, with expectations that they’ll be followed by deluges this fall. Meanwhile, tornadoes are damaging homes and causing power outages in other regions. Sadly, this is our new normal, as climate change makes extreme weather much more frequent and severe.

Thankfully, these episodes have not gone unnoticed by the persons and institutions most capable of changing course for Canada. The government in Ottawa has set its sights on net zero emissions by 2050, in-line with the goals espoused in the 2015 Paris Agreement. But among the more encouraging components of Canada’s agenda are its plans for the built environment, inclusive of a $1.5 billion program to renovate, retrofit, and otherwise transform Canada’s public community buildings. It’s the thesis of the policy that’s especially noteworthy. Canada is allocating public funds toward both the mitigation of buildings’ carbon emissions, as well as their resilience toward the adverse effects of climate change. For the private sector, I’d recommend the building developers, owners, and managers of Canada’s commercial real estate sector take similar action with retrofits of their own.

To state the obvious, retrofits to buildings are urgent to protect the people inside them in the face of relentless extreme weather. Weather-proofing existing buildings and infrastructure includes the methods we’re all familiar with: air seals, weatherstripping windows and doors, and improving insulation. It also includes a myriad of new and emerging technologies like nanotechnology for waterproofing, damage-proof smart windows with temperature control, and even external tools like electric vehicles serving as backup generators for buildings. All of these tools, and hundreds of others available, can be incorporated into existing structures.

Of course, existing buildings shouldn’t just be adopted to withstand climate change, but to mitigate it in the first place. Buildings are massive levers for eliminating a bulk of society’s GHG damage, with real estate accounting for 40 per cent of emissions. Energy-efficient lighting, heating, cooling, and water management systems reduce a building’s pollution and save costs for owners and operators. The timing also couldn’t be better to upgrade assets for energy efficiency, with shared office spaces undergoing major changes post-pandemic. The updates don’t have to be drastic. In homes and multi-family buildings, even simple tools like smart thermostats make a big difference; demand response can collectively offset entire power plants. Even bike racks or electric vehicle chargers outside commercial buildings encourage clean transportation.

Of course, the ultimate retrofit makes an existing building not only net zero, but what I like to call, “beyond zero” storing carbon and producing excess clean energy. While existing buildings can’t store carbon through cement the way new buildings can, well-designed and placed greenery on large buildings serves as a natural, albeit small-scale, carbon capture solution. Onsite renewable generation like solar and storage are also viable options for retrofits. Solar panels and battery storage are an obvious option to start transforming buildings into power stations. Water recycling systems are also a viable option. Most existing retrofits aren’t quite beyond zero yet, but we’re getting closer.

The truth is, we have no time to waste updating our existing buildings to adapt to the new challenges we face in the age of climate change, especially as buildings played no small role in getting us into this mess. Before starting from scratch with new structures (and the massive emissions construction produces), upgrades and retrofits should always be considered to protect buildings, the people inside them, and the world around them.

Mahesh Ramanujam is president and CEO of The Global Network for Zero and former CEO and president of the U.S. Green Building Council.

BLVD Q launches in Etobicoke

Mattamy Homes recently celebrated two project milestones. The mid-rise community of BLVD Q launched on the Queensway in Etobicoke this week, while the 157-unit mid-rise Carding House development broke ground in Oakville last week.

BLVD Q is a mixed-use residential development standing at 11 storeys, with quiet co-working zones and complete independent workspaces. A versatile event space featuring a cocktail lounge can easily transform for social gatherings or private events. The amenities are built to cater to residents’ diverse needs and preferences. On the sixth floor, large terraces serve as an oasis, offering fitness areas, spaces for kids, dining spots and lounging areas.

“Our vision for BLVD Q was to create a building that not only revitalizes the retail street but also becomes a model neighbour for the community,” said Mike Lock of TACT Architecture. “The project exemplifies the principles of what we refer to as ‘Warm Modernism’, combining clean lines, warm materials and articulation of the building mass into smaller, more approachable pieces to create an inviting architecture. Our goal is to ensure that it resonates positively within the existing urban fabric while keeping an eye on the future of the neighborhood.”

Interior design firm Mason Studios has envisioned “timeless elegance and urban sophistication,” with a welcoming atmosphere.

“Guided by three overarching design principles – longevity, experience, and redefinition – we aimed to create a sense of timeless sophistication and beauty within BLVD Q,” says Ashley Rumsey, partner, Mason Studio. “By using classic design gestures with contemporary sensibilities, we’ve designed a welcoming environment that residents will proudly call home. Our goal is to offer a high-impact, versatile, and empowering living experience that stands the test of time.”

Carding House

The five-storey Carding House in The Preserve community features boutique condos and spacious townhomes.

“Carding House represents an exciting chapter in Oakville’s growth story,” says Shane Cooney, senior vice president of development at Mattamy Homes. “Our aim is to provide the Oakville community with the perfect blend of modern comfort and the timeless charm this city is known for. It’s an honour to break ground on this project and contribute to Oakville’s bright future.”

Residents of Carding House will gave access to parks and walking trails. The development will also offer an indoor/outdoor lounge and easy access to the Oakville GO station.

“Mattamy Homes is proud to contribute to the growth and vitality of the GTA’s urban landscape,” said Niall Haggart, President of Mattamy’s GTA Urban Division. “BLVD Q and Carding House represent prime examples of our commitment to providing exceptional living spaces in thriving communities.”

Feature photo: BLVD Q

Finessing Fenestration: Managing Owner Expectations during Window Replacements

Originating from the Latin word ‘fenestra’ meaning “window, opening of light,” fenestration refers to the arrangement of doors and windows in a building. Modern day mid- and high-rise buildings maximize light through great expanses of windows. Replacement of fenestration is a major undertaking requiring detailed analysis, careful planning, and large amounts of coordination, especially at occupied condominiums.

The project can be daunting, even for experienced board members and managers. There are many intricacies to untangle: throughout a building’s lifespan, window upgrades are essential to ensure energy efficiency and maintain envelope performance but how can resident disruption be minimized? And the more pressing question, how can we afford it?

“A fenestration replacement project will be one of the largest—if not the largest—capital expenditure a mid-to-high rise development will ever incur.” – Jon Dickson, M.Eng, P.Eng, BSS, Project Principal.

Fenestration replacement is challenging, expensive, and intrusive. Pretium estimates that from inception to completion, a full replacement project can take up to 50% of a property manager’s time. For a board of Directors, it can cause anxiety and stress due to the financial implications, constant coordination, and intrusive nature of the work, not to mention the varying expectations of the members of a condominium.

Planning for a window project should start several years before the planned replacement. Increases in complaints related to windows and doors can indicate a need for replacement in the near term but planning for such a large expenditure requires a long term horizon. A reputable engineering consultant, such as Pretium Engineering, can provide an honest opinion on the current condition of fenestration assets and realistic replacement budgets, allowing corporations to proactively plan with confidence. It is never too early to undertake an assessment to confirm reserve funds are being collected towards a realistic replacement budget.

If a window replacement is required earlier than anticipated in the Reserve Fund Study, or if undervalued, it may not be adequately funded. Financial planning is a critical component to a successful replacement program and needs to be accounted for appropriately. Should the program be under funded, it will be up to the Board, through consultation and discussion, to determine how much additional funds are required and how they will be raised.

If not managed correctly, owner expectations can complicate an already complicated project. Communicating installation and schedule challenges to the owners early and often throughout the process is essential to the perceived success of the project. The invasive nature of the work and temporary displacement of the occupants’ belongings and the occupants themselves can generate tension and stress. Scheduling is typically done through property management; effective communication and prioritizing units with active issues helps maintain the corporation’s assets and reduces liability while reducing perceived concerns from the owners.

Property Management requires the services of a trusted consultant, such as Pretium Engineering, to oversee the construction work in progress, provide the necessary contract administration, support the property management/board with dissemination of information to the building occupants, and resolve technical issues on site. Below are four points to consider when planning for a fenestration replacement process:

1. Window/Door Replacement Projects Can be Costly

There is no one size fits all solution. The cost of a project is dependent on building location, ease of access, interior finishes, and type of window system installed.

With a window replacement potentially costing millions of dollars (and often tens of millions of dollars), a board will be eager to reduce additional costs. A contingency allowance is established to account for unforeseen issues which may arise during the project. It is not uncommon once old windows are removed to discover previous anchorage and control layer tie-ins not conforming to modern standards. Prudent project planning will include the removal and mock-up installation of several ‘test’ windows. While mock-up installations help immensely, they typically do not account for every situation encountered in the entire building. Addressing concealed conditions such as poor underlying infrastructure can increase costs significantly. It’s important to have contingency allowances for concealed conditions and other identified variables. Unforeseen issues will arise, and a variation in fixed fees ought to be anticipated although these can be greatly reduced through use of a mock-up prior to the fully tendered program.

Pretium Engineering recommends a CCDC2 stipulated price contract, which generally protects against increases in cost due to manufacturing inflation along with an appropriate contingency allowance to address unforeseen site conditions upon removal of the original windows.

2. Things Might Not Line Up: Aesthetic Reality – Managing Owner Expectations

In brand new buildings, the window wall is installed before finishing components such as railings giving installers full access to produce a consistent installation. In a restoration project, the windows are replaced with all other elements already installed and the new windows and doors must fit around existing elements. This means things may not line up.

If not specified in the contract, the benchmark for acceptable deviations should be industry standard practice for restoration projects, rather than strict deviation limits often stipulated within specifications for new construction. Many restoration contractors working in the mid-high rise window replacement sector are able to achieve end products with minimal deviation visible to the naked eye from ground level even though the installations exceed allowable deviations common in the new construction sector.

Managing owner expectations regarding the finished work’s visual aesthetics before the project begins can reduce the likelihood of disputes following project completion.

3. Active Scheduling & Communication

Pretium Engineering generally recommends beginning phased work in the most problematic location where practical and economical. For example, if all else is equal, if the north elevation of a building has the majority of the reported leaks or condensation concerns, work should begin there first.

While there are many ways to arrange the replacement program, Pretium Engineering designs their replacement programs around minimizing resident disruption. To achieve that end, all windows/doors within a Suite should be replaced concurrently such that a resident is disrupted only once. Under this scenario, Owners should expect upwards of 10 days for full completion of a suite although active replacement is only required during the first few days with the remainder being completion of interior finishes. The schedule WILL fluctuate depending on weather and complications arising; a successful project is not one which eliminates delays. That is not practical. A successful project is one which communicates the unavoidable delays effectively.

4. Commitment on Management Side

Since it is not possible to predict specific dates of replacement more than a week in advance (due to weather related delays), a property manager will need to distribute multiple notices, take many calls, and write lots of emails during a project’s duration.

Coordinating suite entry requires good record keeping and administration. Relaying resident concerns and recording deficiencies will be part of the follow-up to the job, in fact—it can take up as much time as the initial planning.

Often, the amount of time needed to properly meet the demands of a fenestration project is not properly realized. In some (most) cases, additional staff may be needed to allow the property manager to manage this project along with all of the other building management duties. Due to time sensitivity, decisions affecting the project must be made promptly and on-the-fly—waiting for the next board meeting may not be feasible—meaning board members should also expect heightened levels of involvement during a fenestration replacement project.

Jon Dickson, M.Eng, P.Eng, BSS, is a Project Principal for Pretium Engineering.

Pretium Engineering has offices in Toronto, Newmarket, Burlington, Kitchener/Waterloo, with satellite offices in Windsor and Ottawa. Connect at www.pretiumengineering.com

Indigenous design guides Winnipeg’s largest infill development

Winnipeg’s largest and most sustainable infill development, Southwood Circle, started taking shape this week. Indigenous design principles are guiding the 80-acre project, which is set to become one of the most densely populated neighbourhoods in the city and home to more than 20,000 people.

The walkable, bike-friendly community will feature about 10 kilometers of new active transportation pathways. The entire neighbourhood will be steps from the rapid transit station at the University of Manitoba. Housing options range from affordable rentals to luxury condominiums. More than 12 million square feet of new residential, commercial and institutional space is in the works.

As Manitoba’s first complete campus community, the project is expected transform the University of Manitoba campus into a world-leading “UniverCity” where 60,000 people will live, work, study or play.

“Southwood Circle is part of a transformation of the 110-year-old Fort Garry campus from a daytime commuter destination to a complete community,” said Michael Benarroch, President of the University of Manitoba. “This community answers the call for sustainable housing options. It will be a unique urban experience, distinct within Winnipeg. It will be rich in amenities. It will integrate the university with the surrounding community.”

Benarroch said he expects researchers from many university faculties will be excited for the opportunity to study the new community as it grows. Southwood Circle will create a Living Lab Research Consortium to which all of its developers will belong. Each developer will participate in data gathering, sharing and researching in various aspects of community development, from environmental and sociological impact to engineering and architectural design.

This will give faculty and student researchers the opportunity to collaborate with developers and each other on interdisciplinary research projects. The hope is that research results shared within and beyond the consortium members will help other communities achieve higher levels of sustainability and wellness.

“We have this unique opportunity to continuously improve energy, water and waste efficiency, and generate higher levels of overall wellness through applied science,” said Greg Rogers, CEO of UM Properties. “We cannot solve the problems of the world on these 80 acres but we can find new and better ways that can be shared and applied elsewhere to make an ever greater contribution to housing and environmental challenges.

The community has been planned with careful attention to Indigenous design. “We want this neighbourhood to be a place of wellness, happiness and community,” Rogers added. “And we want it to be a place of healing too with respect to relationships with Indigenous peoples.”

The future National Centre for Truth and Reconciliation will be located on the lands granted to the NCTR by the University of Manitoba. As well, the design team, including Anishinaabe architect Ryan Gorie, was tasked with envisioning a community that embraced nature and preserved the 5,000 trees presently located on the property, some as old as 300 years. The team created a 21-plus acre park network of existing forest for trails and wildlife corridors, twice the municipal requirement.

“One of our most important goals for Southwood Circle is for it to be a symbol of reconciliation in action,” said Bob Silver, Chair of UM Properties. “We’re immensely honoured that the National Centre for Truth and Reconciliation will be part the Southwood Circle community. And our planners have done an amazing job of giving it a place of prominence for residents and visitors.”

The name Southwood Circle arose through consultation with the Elders’ circle who suggested it include a reference to the circle of life.

“As we aspire for this community to be among the most sustainable ever built in Canada, it’s worth pausing to recognize that Indigenous peoples have embodied this way of living for centuries on this very spot,” added Silver. We are honoured that the local Indigenous nations have welcomed us in the development of the project on their traditional territories.”

UM Properties divided the land into parcels that it will lease to third party developers who will be responsible for building in accordance with UM Properties design guidelines. The first call for proposals went out in summer 2023 and construction on the first buildings is expected to begin in 2024.

The neighbourhood is expected to be home to more than 12 million square feet of new residential, commercial and institutional space representing more than $5 billion in private investment in today’s dollars.

B.C. trades training hits record high

SkilledTradesBC, the organization that oversees the skilled trades in B.C., released its annual reporting of B.C.’s trades training highlighting a record number of apprentices, youth, Indigenous people and women participating in the skilled trades in the province in 2022/2023 fiscal year.

“We are in a critical time to diversify and grow the skilled trades workforce in B.C. as we face a skilled labour shortage and anticipate 83,000 jobs in skilled trades over the next decade,” said Shelley Gray, CEO, SkilledTradesBC. “There is a place for everyone in skilled trades and we are excited to see a record number of diverse British Columbians exploring skilled trades as a means to support their families, build a successful career, and contribute to the communities that make this province our home.”

Highlights of the results released in SkilledTradesBC’s annual report include:

41,000 apprentices (+8%)
1,492 Indigenous people entering skilled trades (+ 22%)
1,072 women entering skilled trades (+ 37%)
10,018 youth participation in skilled trades enrollment (+14%)

SkilledTradesBC continues to prioritize growing in these areas as demonstrated in its recently released strategic plan which includes a focus on shifting the perception of the trades, diversity and meaningful reconciliation.

The organization is also leading the implementation of Skilled Trades Certification (STC), helping ensure that trades training and certification is valued and the skills of tradespeople are formally recognized.

Certification implementation has encouraged people to register for their apprenticeships as there has been a notable increase in the number of apprentice registrations in the trades related to STC. Employer sponsor registrations has also shown positive growth, supported by the Canada Apprenticeship Service grant which provides financial incentives to small and medium sized businesses to hire new first-year apprentices in 39 Red Seal Trades.

Read the full report here.

Disputed port industry draws fire in Saint John

The disputed port industry, American Iron and Metal (AIM), is unlikely to win a popularity contest in the city of Saint John any time soon. Nor will it be operating until the New Brunswick government and the Port of Saint John complete a joint investigation into last week’s fire in the metal recycling company’s yard, which spewed toxic smoke into the residential and commercial districts surrounding the harbour.

In a joint communique with Craig Bell Estabrooks, the Port of Saint John’s chief executive officer, New Brunswick Premier Blaine Higgs confirms that “multiple departments and arms of government” will be involved. “The citizens of Saint John and our province deserve answers, and we will work diligently to provide them,” he pledges.

The provincial government has suspended AIM’s operating license while it examines the circumstances behind the fire, and the Port of Saint John will scrutinize the recycler’s compliance with the terms and conditions of its lease. Meanwhile, Saint John Mayor Donna Noade Reardon is calling for an independent audit of AIM’s operational oversight and environmental compliance, and full disclosure of the environmental and public health impacts of the fire.

Bell Estabrooks maintains that last week’s events were “never envisioned” when AIM signed its lease in 2011. “First and foremost, community safety is paramount to us, as well as being a good neighbour to the people of Saint John,” he states.

In her parallel statement, Noade Reardon reiterates that the City has been raising concerns about AIM’s operations for several years. “Its location is unacceptable and incompatible with our residential communities on both sides of the harbour, our tourism economy from the cruise industry, and our work to attract private investment to beautify our waterfront and create housing for our growing population,” she asserts.

Remembering architect Raymond Moriyama

Renowned Canadian architect and Royal Architectural Institute (RAIC) Fellow, Raymond Moriyama passed away at 93.

Moriyama founded his own architectural firm in 1958 and later teamed up with Ted Teshima in 1970 to create Moriyama Teshima Architects, which they ran together until 2003.

A spokesperson from the architecture firm he founded announced his passing on Friday, September 1, 2023. “The world has lost a visionary architect and (his family members) have lost a treasured loved one,” read the statement from Moriyama Teshima Architects.

Moriyama designed numerous iconic buildings, including the Canadian War Museum, Ottawa’s City Hall, the Bata Shoe Museum, the Toronto Reference Library, the Ontario Science Centre, and the Canadian Embassy in Tokyo, to name only a few.

He was recognized with several prestigious awards such as the Confederation of Canada Medal and the Royal Architectural Institute of Canada Gold Medal. In 2008, he was bestowed with the highest honour of the Order of Canada and was granted honorary degrees by 10 Canadian universities.

He was praised for his sensitivity in considering and addressing human scale, for his humanistic approach to design, and his ability to connect architecture with nature and landscape.

Moriyama maintained a strong relationship with the RAIC and was actively involved in advocacy and humanitarian efforts throughout his career. His impact on the profession has been significant, leaving behind a legacy.

RAIC Fellow and former Chancellor, Barry Johns, remembers Moriyama fondly and remembers him not just as an esteemed colleague, but as the most powerful speaker he’s ever known.

“Raymond leaves a lasting impact on the profession and will be dearly missed. Every word he spoke was profound, you couldn’t help but be captivated by his presence. His professionalism, humanity and passion were unlike anything I’ve ever seen, he had all the ingredients of the best kind of architect.’

A responsible approach to infection prevention

Lately, cleaners have been fielding a lot of questions about our disinfecting products. It is always good news to have end users taking a close look at cleaning chemistry and asking for products that will make their infection prevention programs more robust. However, we don’t want to over-emphasize disinfection to the detriment of cleaning. Cleaning continues to be the cornerstone of any facility’s cleaning plan and should be the primary focus.

But don’t take my word for it! Industry best practices and health organizations like Health Canada and the U.S. Centers for Disease Control include cleaning as the important first step in the removal of soils including the coronavirus. Cleaning is the first step in removing soils and debris, allowing for a disinfectant to be effective when applied to the surface afterward.

Now is the time for cleaning companies and departments to focus on tweaking their regular cleaning processes and products, managing frequencies and efficiencies where possible. It is not necessarily the time to over-disinfect or invest in fancy new technology being marketed toward the recent pandemic – and it is never the time to stop regular cleaning with a solid, environmentally friendly general-purpose cleaner.

Cleaning vs. disinfecting

Let’s review the difference between cleaning and disinfecting:

Cleaning physically removes germs, dirt, and impurities from surfaces or objects by using a combination of soap (or detergent) and water. Disinfecting, on the other hand, works by using chemicals to kill germs on surfaces or objects.

The disinfection process should be considered to require two steps, starting with cleaning the surface or object. Next, that surface or object should be disinfected. In order for disinfecting to occur, a surface must be cleaned of all dirt and impurities so that the disinfectant can effectively kill those germs.

The dangers of too much disinfecting

When facilities start to use disinfectants only and skip the cleaning part of the equation, there can be real dangers to human health, effects on the environment, and a compromising of the building’s infection control measures.

Why is the two-step process necessary? First, disinfectants contain active ingredients that can be harsher than the ingredients in certain cleaners, so cannot be used in place of cleaners. These disinfectants should only be applied sparingly and when needed as part of your infection prevention plan on high-touch surfaces. The harsher active ingredients in these products can have adverse health effects on end users and building occupants when used too much or on their own. It is always recommended that disinfectants are sprayed in well-ventilated areas and that applicators wear the proper personal protective equipment (PPE) to keep cleaners safe.

Second, there is a financial element to the equation, the indiscriminate application of a disinfectant for cleaning purposes wastes money. Disinfectants are more concentrated and often more costly, so they are not a feasible financial replacement for cleaning products. Furthermore, soil, particles, and dust on a surface prevent the chemical reaction necessary to inactivate pathogens, including coronavirus. This becomes a waste of time and money, something no contractor or cleaning department can afford these days.

Follow the five steps to disinfecting protocol

Once you are ready to use a disinfectant on your high touch points, it is absolutely imperative to follow this five steps to disinfecting protocol.

Use a registered product, and thoroughly read and understand the label and safety data sheets.
Dilute it properly (regardless of your type of delivery method) and use a parts per million (PPM) litmus paper to test your dilution frequently to accommodate the type of facility and protocol.
Always pre-clean the surface using a high-quality all-purpose cleaner.
Respect and ensure that the dwell time is met.
Include a potable water rinse according to each label, especially on food contact surfaces.

Be wary of false claims

It is no surprise that companies are creating and marketing all sorts of new formulas in the last few years as a defense against COVID-19. Claims from new antimicrobial surfaces to new types of virus-killing coatings that continue to work for seven days post-application. In times of heightened attention to public health, new companies have certainly made it into the market with spurious claims, trying to capitalize on the increased public demand for heightened hygiene.

In reality, if your facility had been paying attention to its infection prevention program before the pandemic, including regular and frequent cleaning, strong product choices, and following the five steps to disinfection protocol listed above, there should be no need to make any big changes when the risk of infection increases.

If you are over-disinfecting, or being lured by false marketing claims, you could get into dangerous territory for your company and your clients. Rely on the experts like your distributors, and local and federal health agencies to provide you with the resources, information, and tools to make healthy decisions for your commercial cleaning programs.

James Flieler is the VP of Sales North America for Charlotte Products Ltd. with over 40 years of expertise in all areas of sanitation. He is a renowned speaker and trainer for local businesses, key regional players, and national corporations across North America, and has conducted hundreds of hands-on presentations and training sessions.

Patient safety during hospital flood events

Hospitals are complex facilities with multiple moving parts. Labs, medical device reprocessing (MDR) departments, kitchens, administrative offices, ICUs, operating rooms, waiting rooms and more, all serve an important purpose that keeps the hospital functioning.

For a facility that is open 24 hours a day, 365 days a year, any unplanned outage or downtime has a substantial negative impact. When a flooding event occurs, either weather-based or mechanical, the effects can be swift and devastating.

What are the risks?

When a water event occurs, one immediate risk that needs to be mitigated immediately is mould. Consider that within 48 hours of a water event, mould starts to develop and can spread rapidly. The negative effects of such growth can pose a serious threat, especially in a hospital setting where the population is already in a higher health risk category. Restoration crews have a 48-hour window to dry out affected components through very specific means or they need to be removed and replaced altogether.

Legionnaires’ disease – a severe form of pneumonia – can become a risk in these settings, when stale or stagnant water sits for too long. Water that is not properly drained or removed can quickly become a problem and Legionnaires’ disease outbreaks can become very difficult to control. This demonstrates the critical need for rigorous infection control to safeguard the hospital environment.

In certain markets where space within the hospital is highly sought after, damaging water events can cause cancelled surgeries and procedures as well as overall delays, creating a significant risk to care access. For example, in an ICU where space is limited because the care is so acute, specific, and dedicated, taking out 10 or 15 per cent of bed space means that many people will not receive the care they desperately need.

Protecting patients

One of the standards that restorations crews must follow is the Canadian Standards Association code Z317.13, which provides guidance on preventive measures to protect patients, staff, and visitors from disease transmission and other health problems during construction, renovation, or maintenance of health care facilities.

A focus on containment and controlling access to the flooded and damaged area is also key for protecting patients. Typically, a restoration crew would set up an airtight containment with negative pressure that isolates the work area from occupied areas of the hospital. These containments can be built onsite or constructed of prefabricated panels which are aesthetically pleasing and quick to set up. Other mechanisms used for containment can include prefabricated panels which are also aesthetically pleasing and quick to set up.

Creating a negative air / pressure environment is critical. If the environment on the inside of the containment is under negative pressure, nothing escapes. Pressure is monitored with a manometer that is displayed outside of the containment so that negative pressure can be monitored. In addition to that, exhaust is filtered through a HEPA air filtration device, and an anteroom would be in place before workers enter the impacted space.

These practices of isolating the damaged areas and work sites from the operations and human traffic flow within the hospital keep all potential contaminants within the work site, and all the hospital personnel and visitors safe and unaffected from the restoration work being done behind the containment walls.

Unique challenges of the hospital setting

Restoration work in a hospital environment comes with its own unique set of challenges and considerations. Unlike a typical business, there is no downtime, and the recovery process is taking place as the hospital continues to operate.

The reality is that work is happening in spaces where medical events are occurring, and it is important to remain aware and considerate of the surroundings and not cause additional stress to staff or patients. It is important to think about keeping patients safe and come up with a plan to work while other people are still in the building.

While it is vital to get the facility back up and running as fast as possible, it is equally important to strictly follow proper procedures to ensure the safety of patients and avoid future risks. The best preparation is to have an emergency response plan with a restoration contractor who is professionally trained and certified in this highly specialized work.

Kevin Spiers is Vice President, National Accounts, First Onsite Property Restoration

Organic waste diversion pilot expands in Alberta

A food rescue and organic waste diversion pilot targeting the industrial, commercial, and institutional (IC&I) sector has expanded to more jurisdictions of Alberta after successfully launching in Ontario’s Guelph-Wellington County.

The Circular Innovation Council is now looking for business and institutional participants in the Town of Westlock and Strathcona County who are interested in trialling food waste diversion to compost. Subsidized collections will launch in January 2024.

The pilot mimics the residential food waste collection model, consolidating collections amongst neighbouring businesses and institutions so they are able to work together to reduce the cost of collection. Businesses are first supported to redirect surplus edible food, if any, to community service agencies, keeping food at its highest value, while organic waste is collected and diverted from landfill to compost.

The nutrient-rich compost is applied to local regenerative mixed farms to improve soil health, sequester carbon, and reduce greenhouse gas emissions.

After 18-months of the pilot in Guelph-Wellington County, the initiative diverted 303 tonnes of organic waste and recovered $160,900 dollars-worth of surplus edible food, which means more than 48,000 meals were made available to those who face food insecurity.

Strathcona County will host this newest pilot to learn how the consolidated and shared collection model can help meet the County’s waste diversion and emission reduction objectives. The County is also interested in how the pilot can serve both an urban and rural setting. The pilot enhances access to affordable food waste diversion for businesses and institutions of all sizes, while connecting them with local charities to redistribute any surplus fresh food.

The Town of Westlock has invested in residential organics diversion, and is interested in understanding how the CIC model may help businesses and institutions in the region meet their waste diversion objectives by supporting equitable and affordable access to organics diversion for businesses and institutions of all sizes and types.

“The cooperative model shared between rural and urban communities is unique and critical to building the scale needed to coordinate investment and make the services affordable,” said Jo-Anne St. Godard, executive director, of the Circular Innovation Council. “The fact that the valuable compost will be utilized on local farms whose products could be sold within the community where the organics are collected fully completes the circle.”

The pilot received recognition from the Milan Urban Food Policy Pact’s biannual Global Forum as an internationally innovative food waste solution, selected from more than 250 programs submitted by 133 cities.

The IC&I sector is Canada’s largest generator of food waste.

Interested parties in Alberta can register on the Council’s website here.

Newfoundland’s Furey tackles smoking and vaping

Smoking and vaping will be banned on all provincial government property in Newfoundland and Labrador as of September 27. The announcement comes as the province marks its first Well-being Week, devoted to promoting physical, mental and financial health and the goal of becoming one of Canada’s healthiest provinces by 2031.

“We are focusing on creating a shift in how we can collectively make life better in our province,” Premier Andrew Furey advised earlier this month as he announced plans for the inaugural week focused on social determinants of health. “As a government, it means prioritizing spending and policy decisions that support the well-being of everyone in this province, while also empowering you to continue taking meaningful steps to better your well-being.”

The smoking and vaping prohibition will apply in provincial buildings and associated outdoor public spaces, including parking lots and the government’s fleet of vehicles. Smokers and vapers are also encouraged to take advantage of free online counselling that will connect them with support to cease the habit.

CAGBC secures decarbonization training funds

The Canada Green Building Council (CAGBC) will deliver decarbonization training to early and mid-career practitioners in the building design and operations fields with the support of a newly announced $7.9 million grant from the Canadian government. Six other organizations nationwide have also received skills development funding tied to the labour demands arising from low-carbon economic drivers.

In total, the package of seven grants will disburse $111.4 million to organizations serving the construction, manufacturing, mining, electricity, renewable energy and agricultural/agri-food sectors, and is expected to underwrite training and/or skills upgrading for more than 22,000 workers. The largest chunk of the funding — $46.5 million — has been allocated to Mohawk College of Applied Arts and Technology in Hamilton, Ontario, to support training for a range of micro-credential certifications in green skills.

“Through these investments, we are positioning workers for success in the jobs of today and tomorrow,” says Randy Boissonnault, Canada’s Minister of Employment, Workforce Development and Official Languages.

CAGBC projects that more than 3,000 participants will take advantage of its enhanced training and skills development, which will start rolling out next month and be available until March 31, 2024. The courses will be free of charge and there will be no requirement for previous training in sustainability.

Other grant recipients include: Canadian Skills Training and Employment Coalition; Electricity Human Resources Canada; the Mining Industry Human Resources Council; Iron and Earth, an Alberta-based not-for-profit organization with an interest in transitioning fossil-fuel workers to new career paths; and the TREC Charitable Foundation Relay Education program, which will develop training workshops for solar installation and operations, vertical farming/greenhouse, wind energy and geographic information system mapping for renewable energy.

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