Department store drain continues

Nordstrom Canada’s sudden swoosh into the department store drain will leave empty anchor space in some of the country’s top-performing and most prestigious regional malls, adding to a decade of challenges thus far for retail landlords. The U.S. based retailer filed for insolvency protection under the Companies’ Creditors Arrangement Act (CCAA) late last week and announced plans to close 13 physical stores by late June. Sales through its Canadian e-commerce platform ceased as of March 3.

“This will enable us to simplify our operations and further increase our focus on driving long-term profitable growth in our core U.S. business,” Erik Nordstrom, chief executive officer, said as the company released results for the fourth quarter of 2022. “Despite our best efforts, we do not see a realistic path to profitability for the Canadian business.”

Looming closures include six large-footprint Nordstrom stores in enclosed shopping centres and seven mid-sized Nordstrom Rack stores in a mixture of enclosed malls, open-air centres and urban streetfront locations. That will empty out anchor space in five of Cadillac Fairview’s regional malls: Pacific Centre, Vancouver; Chinook Centre, Calgary; Rideau Centre, Ottawa; and Toronto Eaton Centre and Sherway Gardens in Toronto. Oxford Properties will also see vacant anchor space at Yorkdale Mall in Toronto, while Ivanhoé Cambridge awaits the departure of Nordstrom Rack from Vaughan Mills in the Greater Toronto Area and Calgary’s Deerfoot Meadows.

Nordstrom’s move comes just days after the U.S. parent of Bed Bath & Beyond announced the shutdown of 65 outlets throughout Canada, and is the newest in a string of retail closures in recent years. In that context, industry analysts suggest it’s both a shock and a somewhat foreseeable event.

Closures called unexpected, but not necessarily surprising

“Bed Bath & Beyond wasn’t really a surprise at all. Nordstrom is more unexpected,” observes Lisa Hutcheson, managing partner with the retail strategy consulting firm, J.C. Williams Group. “I don’t think we’re surprised, but it’s unexpected that there weren’t more warning signs.”

On the latter front, credit rating service DBRS Morningstar recently downgraded the retailer’s status from positive to stable after lower-than-expected earnings over the past two quarters. In a March 3 statement, DBRS Morningstar projects the termination of Canadian operations will have a positive effect on Nordstrom’s profitability and operating efficiency, but undermine the company’s geographic diversification efforts along with a “lesser extent” hit to its market position and size.

“In aggregate, the closures do not have a material effect on Nordstrom’s overall credit risk assessment because of the relatively small size of the Canadian operations, which account for less than 3 per cent of total sales,” the statement advises.

Looking at the total distribution of stores, Canada accounts for six per cent of Nordstroms and fewer than three per cent of Nordstrom Racks. However, Hutcheson notes they’re more densely concentrated into a few markets with the six stores in the Greater Toronto Area perhaps eroding each other’s market share as high-end fashion and goods providers.

“I think they have two Nordstrom stores and one Rack store in all of New York City and Chicago only has one Nordstrom store so it’s kind of not a surprise that we just don’t have the density (of consumers) for these big category killers and large-format stores,” she reflects.

Hutcheson attributes the over-abundance in part to a misperception that it could be an easy plug-in replacement for Sears. That’s coupled with the waning stature of department stores in general and the COVID-19 pandemic’s wallop to the fashion retail category in particular, making it unlikely that any single contender will arise to fill the void Nordstrom now leaves behind.

“The quick answer is not going to be: oh, there’s some other amazing retailer that’s just going to fit that space perfectly,” she warns. “I think we’re at a tipping point where the anchor is not going to be an anchor in the traditional way that we have defined them as department stores or grocery stores. We’re going to start to see them be much more catered to the unique proposition of each shopping centre and the demographic and psychographic needs of those customers.”

As with Target’s insolvency and retreat from Canada eight years ago, affected landlords will now be entering negotiations to see what losses can be recovered from abandoned leases. For now, there are few details of their ranking among creditors.

Prestige malls deemed well positioned to navigate upheaval

There are also concerns about possible reduced traffic and associated repercussions for other retailers in the vicinity of shuttered stores. However, Raymond Wong, vice president, data operations, with Altus Group maintains this group of properties has both the prestige to draw replacement tenants and the depth to weather the loss of an anchor.

“Granted, Nordstrom is a large and significant tenant, but when you look at the number and quality of retailers at malls like Yorkdale, the Eaton Centre or Pacific Centre, they are still going to be a destination for consumers and for tourism as well,” he submits. “This could also mean an opportunity for a retailer that’s looking into Canada and this would give them an opportunity to get into some of these great retail locations.”

Among some of the touted potential newcomers, Hutcheson reports talk of Primark, a fashion and household goods retailer that has expanded beyond its main base in Ireland and the United Kingdom into the United States and throughout Europe, and Quebec-headquartered Simons, which currently has 16 Canadian stores including six outside Quebec and is already Cadillac Fairview’s tenant in four locations.

As well, both she and Wong cite a burgeoning introduction of mixed uses, bringing in fitness facilities, professional services and co-working space. To date, that has largely occurred in community and lower-tier regional malls, but sudden emptying of hundreds of thousands of square feet presents an opportunity to test the concept in prime retail real estate.

“It’s not going to be a one-size-fits-all. If I think about the Eaton Centre, it’s really primed for something that’s more entertainment and tourism focused,” Hutcheson suggests. “Other spaces are going to get carved up and there’s going to have to be a lot of creativity.”

“Owners are constantly looking at and getting inquiries from other retailers, whether it’s domestic or on a foreign basis, and they are well versed with the international retailers that are expanding. So it’s not like they’re starting from zero,” Wong says. “You have a lot of smart owners that will come up with new solutions, new configurations to get that space leased up or reused to ensure there’s alternative income in that space. It will be interesting to see what type of pivot-and-change the space takes.”

He argues retailers will continue to seek out physical retail space where, statistics show, they’re more likely to generate impromptu extra purchases than through e-commerce, while consumers will continue to see in-person shopping as both a practical and social exercise. Elsewhere, the demise of Nordstrom Canada’s online platform could be good news for a handful of prospective industrial tenants and/or landlords positioned to capture rent gains.

“Depending on where the Nordstrom warehouses are located and how they service the client, it may free up a little bit of additional space in a really tight market,” Wong says. “It will help slightly, but the demand is still outpacing the supply so it’s not a significant change in the industrial market.”

Barbara Carss is editor-in-chief of Canadian Property Management.

Lansdowne Centre redevelopment moves forward

Construction on the major Lansdowne Centre redevelopment project in Richmond could start as early as March 2025.

Vanprop Investments has entered into a joint venture with Bosa Properties for Phase 1 development of Lansdowne Centre, a retail mall and hub in the heart of the Richmond since 1977.

A rezoning application has been submitted for the Phase 1 development which would launch revitalization of this important destination, to create an inclusive, amenity-rich community with retail, entertainment, culinary, public spaces, and new housing, including rental and below-market rental, all close to public transit.

“With Bosa Properties as our partner for the Phase 1 development, we are excited to bring our Master Plan to life by energizing the existing Lansdowne Centre and unlocking the potential of a retail-centric site, while expanding on its ability to contribute to the city and region,” said Kevin Hoffman, CEO Vanprop Investments.

Lansdowne Centre will remain open and operational during initial redevelopment, and will be gradually replaced in later phases of the project to make way for additional housing, retail, and public spaces.

Two condominium buildings and one low-rise building will be developed in Phase 1. The existing mall will be removed in later phases of the project, ultimately being replaced by a new mixed-use retail complex of approximately the same size. The new retail will be designed as an experiential, outdoor lifestyle centre rather than the covered mall that exists today.

“Bosa Properties is incredibly proud to partner with Vanprop to kick off the redevelopment of Phase 1 at Lansdowne Centre,” said Colin Bosa, CEO, Bosa Properties. “Community building has always been at the heart of Bosa Properties and we’re working together with our partner to create a holistic, mixed-use destination that brings new energy to the heart of Richmond – setting the tone for evolving lifestyle trends and offering new housing options for a growing city.”

Phase 1 will guide the future development of commercial, residential, amenities, and park space across the 50-acre site, to the benefit of the community. The Master Plan and OCP (Official Community Plan) Amendment were approved by Richmond City Council in March 2021.

Understanding collaborative contracts

Introduction

Collaborative construction contracts are not new to Canada, but the global pandemic, increased climatic events, high demand for experienced contractors and labour, supply chain disruption, inflation, and a potential recession have resulted in a significant increase in their popularity over the past few years.

Collaborative contracts are premised upon the early engagement of participants before the details of the project have been finalized. In the right circumstances, these models can provide the benefit of a collaborative environment, provide insight about the project from various participants, and allocate risk in creative ways. However, collaborative contracting is not a panacea and, as with anything, there are tradeoffs that participants need to be aware of when considering these models. Additionally, participants can obtain some or all of the benefits of collaborative contracts by adapting traditional construction models.

This article will highlight four of the more common collaborative contracts in Canada and challenges associated with these models.

Common Types of Collaborative Contracts

Early Contractor Involvement /Construction Manager at Risk/Construction Consultant General Contractor/Design Assist

Known under various different names, the key characteristic of this model is the engagement of the contractor on a consulting basis to provide constructability and procurement services during design development. As the project details are developed, the parties negotiate the cost and schedule for the project. If agreed, the contractor then assumes a more traditional contractor role under a guaranteed maximum price or a fixed price.

Progressive Design-Build (PDB)

In a progressive design-build contract, the owner engages the design-builder before the project requirements have been finalized. During the first phase of PDB, the design-builder works with the owner to advance the design, provide cost and schedule estimates and procurement services. Once the design is advanced to an acceptable point, the design-builder and owner move to a second phase where they (hopefully) agree to a fixed price or guaranteed maximum price to complete the project on more traditional commercial terms.

Integrated Project Delivery (IPD)

Integrated project delivery involves all major project participants (such as the owner, the contractor, and the architect/engineer) entering into a multi-party contract at an early stage of the project. The IPD contract sets out how collaborative decision-making and management will work from the validation phase through to the warranty phase of the project. During the project, the IPD parties are paid their actual costs with no (or little) profit while performing their obligations. The schedule, target price, and other goals for the project are agreed to by all IPD parties and, subject to permitted adjustments, the parties share in a profit pool tied to the project metrics if those goals are met. A key feature of IPD contracts is a waiver or limitation of project claims between IPD parties, subject to certain exceptions.

Alliance

There are many versions of “alliance” contracts. Some of them look like IPD, some of them involve early contractor involvement, and there are other similar approaches. It is difficult to really talk about alliance contracts given the disparity in approaches, but this is actually the key caution, namely that it is crucial to understand what the contract is doing before executing it.

Challenges with Collaborative Contracts

Collaborative contracts have admirable goals; however, there are certain challenges that participants should consider and manage prior to determining whether they are appropriate for a particular project. These challenges include:

No Guarantee of Price or Schedule: The early engagement of project participants means that little price or schedule certainty is provided at contract signing and there is no guarantee that the parties will eventually agree to such terms. This reality could lead to long project delays, an inability to agree to a fixed price or guaranteed maximum price, or inappropriate bargaining pressure.

Procurements are Costly and Collaboration is Not Free: Procurements of collaborative contracts can be costly and time consuming. The cost to collaborate can be significant and it may not make sense for all projects.

Attitude Change: Collaborative contracts require collaborative attitudes and significant time commitments and resources from sophisticated participants. Without it, participants often shift back to traditional roles sacrificing some of the benefits under these models.

Confidentiality of Commercial Terms: Due to certain confidential and propriety concerns, there are very few public examples of what is and is not “market” for collaborative contracts. There are significant differences between what parties to these agreements believe the commercial terms should be.

Intellectual Property: There are numerous concerns about the ownership, responsibility, and liability for intellectual property created under these collaborative contracts that result in commercial terms that may not be ideal to all parties involved. This includes what happens if an agreement cannot be reached.

Conclusion

Collaborative contracts aren’t new, but market conditions have resulted in an increase in their adoption in Canada. There are many benefits to the early engagement of project participants and collaborative approaches to project delivery, but these models do present challenges. Those considering these contracts should be aware of their key differences to traditional delivery models. With knowledgeable industry participants, we are confident that these challenges can be managed to assist in the success of collaborative contracts in Canada.

If you have any further questions about collaborative contracts or construction contracts in general, please contact Bill Woodhead ([email protected]) or Matthew Quintieri ([email protected]). Bill is partner and Matthew is senior associate at Borden Ladner Gervais LLP.

PSP Investments to acquire digital infrastructure

Canada’s Public Sector Pension Investment Board (PSP Investments) and EQT Active Core Infrastructure will jointly acquire Radius Global Infrastructure, a multinational aggregator and owner of properties leased to wireless communications and other digital infrastructure operators. The partners will retain the Radius brand and take the company private through a cash deal of USD $15 per share, valued at approximately USD $3 billion (CAD $ 4 billion).

“Radius is a strong fit with PSP’s portfolio and mandate given it has inflation-adjusted contracted income, little exposure to GDP and substantial growth opportunities linked to demand for digital services,” says Patrick Charbonneau, PSP’s global head of infrastructure investments.

Radius management will continue to operate the company, which holds interests in the revenue streams of nearly 9,190 digital assets located on more than 7,020 different communications sites in 21 countries. About two thirds of that portfolio is in Europe with about 18 per cent in Canada and the United States and the remainder in Latin America.

“Partnering in a private capital context with EQT and PSP, both of which have significant expertise in communications infrastructure, will enable Radius to accelerate origination activity and further invest in both geographic expansion and adjacent asset opportunities,” says Bill Berkman, co-chair and chief executive officer of Radius.

The transaction is expected to close in the third quarter of 2023.

B.C. Budget 2023 takes action on housing issues

In addition to growing a clean economy and addressing urgent health care issues, B.C. Budget 2023 promises to invest in housing development with measures intended to stimulate construction and provide support for families in need.

“B.C. is a great place to live, but people are facing real challenges – not only from global inflation and the pandemic, but from ongoing and systemic challenges,” said Katrine Conroy, Minister of Finance. “This year’s budget helps protect people who can’t afford today’s high prices and takes action on the issues people care about, like finding affordable housing and accessing health care.”

Specific to affordable housing and steps to prevent homelessness, B.C. Budget 2023 is providing an additional $4.2 billion in operating and capital funding over the next three years in a move it is calling the largest three-year housing investment in the province’s history. Meanwhile, moderate- and low-income renters will be eligible for a new income-tested renter’s tax credit. Qualifying households with an adjusted income up to $60,000 could receive up to $400 per year, while those with an adjusted income above the $60,000 threshold will receive a gradually reduced credit, reaching zero at $80,000 based on the 2023 taxation year.

David Hutniak of LandlordBC said his association has been supportive of a renter’s rebate program since the concept was first proposed back in 2017.

“We continue to be supportive,” he affirmed. “At that time, however, we argued that the rebate should not be universally applied to ensure that those in greatest need reap the benefits. We also advocated for a more generous rebate to, again, support those renters in greatest need. This meant income-testing, as the Province has proposed. It is good to see that the government has now delivered on its promise and that there’s a multi-year commitment to fund this initiative.”

Eligibility for the renter’s tax credit will exclude amounts paid for a campsite, moorage, or manufactured home site, under a rent-to-own plan, or by employers for accommodation that is not required to be included as income. To qualify, rent must be paid to unrelated persons, and the credit will be available for B.C. residents over the age of 19.

Partial tax exemption for new purpose-built rental buildings

As of January 1, 2024, purpose-built rental buildings in B.C. will be exempt from the additional 2 per cent property transfer tax that’s currently being applied to transactions involving properties exceeding $3 million. To qualify for this exemption, the residential portion of a building must be rental-only and have at least four apartments. The government said it introduced this new measure to build on the rental housing revitalization tax exemption provided in Budget 2018 and encourage more rental development in the future.

“While this is being framed as an incentive, in reality, it’s the government correcting an anomaly they created back in 2018,” observed Hutniak. “That year, the B.C. NDP introduced the so-called luxury home tax, which added 2 per cent PTT on the portion of the fair market value of any residential property transaction exceeding $3 million, which unfortunately meant that purpose-built rental buildings were captured by this additional tax.”

At the time, LandlordBC lobbied to change this, arguing that purpose-built rental buildings should be exempt from the tax given it unfairly targeted multi-residential rental assets and would discourage companies from building and purchasing apartments.

“We regularly reminded the B.C. NDP of the need to correct this anomaly and are pleased to see that they have finally eliminated this tax on purpose-built rental projects in Budget 2023,” he said. “While the current high interest rate dilemma has exacerbated the new rental construction environment, it is good to see that this change has been implemented.”

Secondary suites pilot

The government is also providing up to $91 million over three years toward a new pilot project that will provide financing incentives to encourage homeowners to develop new secondary suites on the property of their principal residence to rent to long-term renters. The pilot is anticipated to facilitate thousands of more housing opportunities across British Columbia.

“While little detail has been provided about this initiative, we look forward to potentially partnering with the Province to ensure that new landlords entering the market via this pilot understand their rights and responsibilities to ensure successful tenancies,” Hutniak said. “While clearly the long-term solution is to ensure that rental developers have a legislative environment conducive to the creation of an over-abundance of purpose-built rental housing, this pilot project could potentially facilitate more housing opportunities across B.C. in short order.”

Building and unlocking more homes

B.C. needs more homes, including purpose-built rental properties, to ensure it can meet current and future demand. As such, investments to get more shovels in the ground and to stimulate new construction, include:

Almost $1.7 billion in operating and capital funding over the fiscal plan to create homes through the BC Builds and Building BC programs, which includes targeted investments in the Indigenous Housing Fund and the Community Housing Fund. It also includes $394 million to help buy land near future transit development to ensure affordable housing projects exist along transit corridors.
An additional $575 million over three years to support the construction of thousands of new student housing spaces, including in high-demand areas in the Lower Mainland, southern Vancouver Island and Thompson Okanagan.

For more on B.C. Budget 2023, click here: Budget 2023 takes action on issues that matter most | BC Gov News

B.C. budget disappoints business groups

B.C. business groups are calling out the significant shortfalls in the B.C. Budget 2023, released on February 28.

The 2023 budget, the first for new Premier David Eby, features spending for important infrastructure, social and community initiatives but comes at the expense of addressing increasing cost pressures facing businesses and the province’s competitiveness.

The budget provides “little support to businesses who are struggling with the cost of doing business,” said Fiona Famulak, president and CEO of the BC Chamber of Commerce. “In order to have healthy communities, we need to ensure we have healthy businesses.”

Government has allocated $8.7 billion more in operating funding and will run deficits totalling $11 billion over the course of the fiscal plan. Capital spending on critical infrastructure, such as schools, transit, roads and hospitals, will reach a record $37.5 billion while the provincial debt is forecast to be $99.5 billion at the end of 2025/26.

“Of particular concern to small- and medium-sized businesses is the increase to the carbon tax of $15 per tonne per year through 2030 with little to offset the costs they will incur,” said Famulak. “This is going to impact our supply chains and raise costs of producing goods in British Columbia.”

There were some positive measures that include:

$77 million towards increased investments to address delays in permitting approval in the natural resource sectors.
Increased supports to address significant societal issues that have a direct impact on business, including housing, homelessness and mental health.
$58 million directed towards speeding up foreign credential recognition for qualified professionals.

“This budget was an opportunity for government to help businesses navigate through and beyond a very difficult past few years. A step such as adjusting the Employer Health Tax threshold would have demonstrated that government is willing to address the challenges that many of our members face,” said Famulak. “Unfortunately, that opportunity was missed.”

The Greater Vancouver Board of Trade shared similar sentiments, issuing a letter grade of C- for the 2023-24 provincial budget.

“Our members had hoped for measures to offset the rising costs of doing business but found no relief in Budget 2023,” said Bridgitte Anderson, president and CEO of the Greater Vancouver Board of Trade. “Unfortunately, the budget is essentially silent on an economic strategy to attract investment, and increase our innovation capacity and competitive advantage. With a slowing economy and a growing population, we need a strong private sector and competitive investment conditions to increase prosperity across the province.”

Both organizations expressed optimism for the new Future Ready Plan, which will provide support to address critical labour force challenges.

The Business Council of B.C. (BCBC) also pointed out the budget’s significant shortfalls when it comes to addressing challenges facing businesses. The budget contains no substantive measures aimed at driving long-term economic growth, improving business investment conditions, boosting productivity, or reducing business costs.

“The bottom line is that Budget 2023 significantly expands the role, reach and cost of the public sector in the economy while offering little new to support the prosperity of businesses or families in British Columbia,” said Ken Peacock, BCBC’s chief economist.

The British Columbia Construction Association called the lack of commitment to address prompt payment legislation a major failure because non-payment and late payments are “out of control, right alongside skyrocketing interest rates, cost of materials, and cost of labour.”

“The single biggest thing B.C.’s government can do for its 25,000 small and medium construction businesses is provide prompt payment legislation so that they will be reliably paid for the public and private projects they are called to build. No amount of infrastructure investment will succeed if we don’t reduce the pressures on B.C.’s builders,” said the association.

Cheryl Mah is managing editor of Construction Business.

Exploring the psychology of reserve fund planning

There’s a psychology to reserve fund planning. It’s a mindset I’ve seen take shape within the condo management community throughout the decades and an approach to proactive funding that will pose risks to our built environment that are better addressed now than later.

But first, some introductions. In 1992, my company, Morrison Financial Services Limited, advanced the first loan to a condominium corporation in Canada. From that point forward, I gained a “boots on the ground” perspective into how reserve fund studies were governed and perceived by the condo boards tasked with saving money for a rainy day. I had a theory back then which has proven true today; that most reserve funds were being chronically underfunded and, as a result, today fall short when needed the most.

I should preface this by saying these are my opinions. I do not have the financial data in front of me to back this claim. What I do have, though, is decades of experience providing financial solutions to condo management teams who find their reserve funds lacking when it comes time to pay for big-ticket repairs and renovations. Those years have left me with insights into why many reserve funds have been underfunded in the past and why the same issue exists today.

A social perception

When I refer to the “psychology” of reserve funding, what I mean is just that; the mindsets and perspectives that have informed reserve fund planning. Consider the fact that, in our culture, condominiums have largely been regarded as a transient mode of homeownership. As I view it, most condo owners love their unit but don’t consider it their final home. Instead, younger owners view condo ownership as a middle step towards owning a single-family house, while older individuals might perceive it as the next stop before a retirement residence, and investors hold on to units until they find the best time to sell. As a result, many owners aren’t too worried about the long-term health of their condo buildings. These same owners get elected to condo boards and determine how much money should go within a reserve fund. And as one might expect, they aren’t in a rush to increase their monthly payments or tighten their purse strings for building repairs or improvements they won’t be around to see.

But what about the Condominium Act?

It’s true the Condominium Act does include provisions for reserve fund planning that are meant to alleviate this issue. It’s also true that the Act has been amended to ensure reserve fund studies are performed regularly to provide guidance on how much money condo corporations need to be saving in order to protect the health and safety of their building and residents.

These guidelines look good on paper but are not complete solutions. I argue that, despite best efforts, reserve fund studies are not an exact science and the amount they suggest doesn’t typically account for all the surprises down the road. I would also make the case that provisions put forth by the Condominium Act to enforce reserve fund planning, while well-intentioned, lack teeth regarding enforcement. At the end of the day, despite all the reports and best practices, reserve fund planning is still governed by a desire to keep condo fees low and avoid upsetting owners.

What does this all mean?

Thirty years and countless loans later, my predictions that reserve funds are chronically underfunded are coming true. But so what?

Well, one result is that more and more condo corporations will find themselves faced with expensive work that their reserve funds simply cannot handle, triggering the need for a special assessment or a loan, neither of which is an ideal choice (and this, coming from a loan provider). In more extreme situations, I see vital repairs and renovations simply going undone, resulting in severe occupant safety issues and, in extreme cases, the wrecking ball.

As the issue becomes more common, I also see the democratic governance of condominium corporations being removed, at least on this issue. In its place, I predict we’ll see laws come in that give professional condo managers the ability to override this democratic procedure to ensure the right amount of money is going into reserve fund studies, whether residents agree or not.

And yet, I’m optimistic

I do not believe the chronic underfunding of reserve funds is any one person’s fault. It is the result of a psychology passed down from one generation of condo boards and owners to the next, and a mindset that current rules and regulations have not yet addressed to their fullest.

However, I believe that we can – and want to – do better. Part of me hopes that pride of ownership will prevail; that most condo owners and managers want their assets to be in good repair, even if it means a little extra each month. I also believe everyone in the community has a stake in this issue since the degradation of our urban landscape impacts us all.

I’ve made a successful business out of lending money to condominium corporations. Over the years, my team has worked with a broad range of condo stakeholders that genuinely care for the health of their building but have found themselves with inadequate reserve fund resources to do what’s necessary. So while it may seem counter to my own bottom line, my advice to them is one I embrace in my business; the best way of operating is one in which everyone plans for the future.

Morrison Financial is a trusted private lender for financing & mortgage solutions in Canada for over 35 years. Visit morrisonfinancial.com for more.

The challenges of adding technology to your building maintenance program

The advances in technology have made all sorts of improvements in the building maintenance industry, from increased efficiency to providing more accurate data. But is there a downside to the rise of these tools for maintenance managers?

Not a downside, per se, but there are some challenges that come with the growing popularity of automation and the rise of ‘smart’ buildings. While the pros certainly outweigh the cons of evolving technology long term, assessing the risks is important for building managers as they make daily decisions that impact their business.

Security

Innovation like IoT (internet of things) provides users with regular, real-time data about traffic, inventory, energy usage, and more. For convenience, this data is typically available on multiple devices so that it can be accessed by everyone who needs it, but that comes with an increased security risk of a data breach.

If you plan to add automation as a way to improve efficiency and to better manage your business, think about the level of reporting, access, and storage you need to best manage that data. Outsourcing your security is one way to get a handle on cybersecurity and keep your information and your business safe.

Expense

Technology can come with a hefty price, and even though it often pays off in the long run, an initial investment can be a deterrent to progression. Things like overhauling your inventory system or updating your infrastructure can seem daunting at first glance. Develop a long-term plan to integrate the technology on your list so you can stagger the costs and budget for the expenditures.

Training

It doesn’t make sense to upgrade your facility with technology that makes the job easier if you don’t take the time to train your team to use it effectively. That includes new staff, too.

Training your employees comes with a cost, so factor that into your budget as you make upgrades and add innovation. There’s no point in investing in tools to make your life easier and your business more efficient if they might be misused or undervalued by your team.

Technology and innovation can help facility managers better their business, get the job done faster, and complete tasks more efficiently. It’s important to look take all factors into account, including possible challenges when you look at adding technology to your building maintenance program.

Why reading chemical labels has never been more important

The pandemic certainly changed the way many organizations approach cleaning and disinfecting, and reading chemical labels is vital. Facilities of all types are using disinfectants more frequently, thus increasing the chance that products are used without proper oversight. Failing to thoroughly read a chemical label can often result in an incorrect application, which can put cleaning professionals, building occupants, and the environment at risk. This makes following label instructions correctly more important than ever.

How to know if a disinfectant is effective

If a manufacturer offers a solution that is intended to inactivate a virus, the Environmental Protection Agency (EPA) must be aware. In addition, manufacturers of devices that create a disinfectant (like on-site generation systems) or those that are used with disinfectants (like electrostatic sprayers) should be able to provide sufficient proof that the device has been tested against the virus it claims to inactivate. Manufacturers should also have proof that they produce the devices in an EPA-approved facility.

Meanwhile, bottled solution manufacturers should be registered and have their EPA registration number printed on the product label.

There is strict regulation on what can and cannot be put on a bottle’s label. Every claim on the label, from target organisms to container disposal directions to marketing claims is thoroughly reviewed. This process is essential for securing an EPA registration number for a product label.

How can you identify whether a product is registered by reading the label? Look for the EPA registration number and the EPA establishment number. This is typically listed on the back panel of the label near the manufacturer’s name and address.

Optimize cleaning and disinfection protocols

Once you’ve confirmed the product is registered, the next step is to understand its proper application. Chemical labels should have a distinct section titled “Directions for Use.” The following legally required disclaimer is an important requirement of this section “It is a violation of federal law to use this product in a manner inconsistent with the label.”

The “Directions for Use” section will detail how to wipe, spray, or fog the product. Remember, if a certain application method is not listed, it cannot be used. For instance, the EPA now requires specific testing for fogging and electrostatic spraying claims. If there are no instructions for it, by law, the product cannot be applied in that manner. Doing so may lead to safety, performance, and sustainability issues.

Other important information also found in the “Directions for Use” section includes:

Whether precleaning is necessary
Contact time
Types of surfaces that can be disinfected
Target organisms the product is proven to be effective against

Minimize risks by identifying potential hazards

As all disinfectants are intended to destroy harmful living organisms in one form or another, the idea that any one formula is “safe” is not accepted. Words like “safe” or comparisons to other formulations as “safer” are not allowed when registering a product. A disinfectant label is not for marketing purposes – it is meant to communicate any hazards on chemical labels that the user may be exposed to, and detail how to minimize risk.

If a product has a known hazard, it must be communicated via a “signal word” on the label’s front panel. Based on strict criteria for the five routes of exposure (as defined in 40 CRF 156.62), a disinfectant can fall into one of four categories based on the toxicity level (see Table 1).

_{Table 1: Excerpt from the EPA label review manual stating the required signal words for the respective toxicity category.}

Category I is the highest toxicity category and Category IV is the lowest. Each category requires a specific signal word. If no signal word is listed on the label, the product has met the criteria for category IV, or the lowest toxicity category.

Making the most of disinfectants

Cleaning professionals should make the most efficient use of disinfecting chemicals, following each label and device’s directions. It is equally essential that facility managers and their teams remember that what appears on a bottled solution’s label or in a device’s instruction manual is just as important as what does not appear there. With the proper understanding of disinfectant efficacy, protocols, and risks, organizations can enhance cleaning performance, sustainability, and safety, which is key for preventing and reducing the impact of future SARS-CoV-2 outbreaks.

Tyler Williams is director of Scientific Services at PathoSans, a leading provider of on-site generation (OSG) devices that produce ready-to-use, highly effective, sustainable cleaners and sanitizers known as electrochemically activated (ECA) solutions. To learn more about PathoSans, visit www.pathosans.com.

Alberta distributes asset upkeep funds unevenly

Seniors and social housing aren’t getting a share of the extra funds the Alberta government is investing in the upkeep of public assets. The text of the newly released 2023-24 provincial budget promises an additional $257 million above last year’s spending for capital maintenance and renewal (CMR), although the numbers cited in the “capital plan details” elsewhere in the document show it as a $233 million increase. In any case, seniors facilities and housing are in line for a 13.5 per cut, trimming the allocation from $37 million in 2022-23 to $32 million for 2023-24.

“The CMR funding supports thousands of projects for schools, hospitals, roads, information technology infrastructure and other key assets,” the budget document states. “CMR funding preserves and extends the useful life of existing infrastructure, maintains their long-term value and enables proactive asset management to ensure they are well-maintained and functioning when Albertans need them.”

Health care facilities will be the biggest beneficiary of the new injection of funds, receiving an extra $74 million for a nearly 50 per cent increase over last year’s estimated $149 million CMR expenditure. Post-secondary facilities are tapped for a $40 million top-up, representing a nearly 37 per cent increase in year-over-year CMR spending, while an extra $39 million is earmarked for government-owned facilities, equating to a nearly 40 per cent increase for 2023-24.

The largest chunk of Alberta’s CMR spending goes to roads and bridges, with an extra $96 million pledged for 2023-24. That translates to a 15.2 per cent year-over-year increase, boosting the allocation from $631 million to $727 million.

The 2023-24 budget also promises more funding for community operated facilities. That includes a sustained $11-million boost to the annual budget for the Community Facility Enhancement Program, fixing it at $50 million for the next three fiscal years, and a new pledge of $8 million over three years to help Agricultural Societies make upgrades to fairgrounds and agricultural halls.

Non-profit organizations can apply for Community Facility Enhancement funds to be used toward the development, purchase, renovation/retrofit or expansion of “sports, recreational, cultural or other related public-use community facilities”. The new funds for Agricultural Societies are for repairs, renovations and energy efficiency upgrades of existing facilities.

Rental demand spotlights tenant relationships

Newly released data from Statistics Canada shows that investors owned more than one fifth of houses in British Columbia, Manitoba, Ontario, New Brunswick and Nova Scotia in 2020. Condominium apartments topped this list in Ontario and B.C., with 41.9 per cent in Ontario being investor-owned, followed by over a third in B.C. The majority of owners were living in-province.

As condos supply the surging demand for rental housing, which continues to trend lower in cost than home ownership, many corporations may be experiencing a rise in tenant-occupied units.

“There can be tenants that fit right in and engage with the interests of the community and there are tenants that are quite the opposite,” said Sheila Krivsky, property manager with Shore to Slope Management Services, during an online discussion on tenants in condos, hosted by CCI Huronia.

Property managers are often on the receiving end for complaints and requests that should be directed to the landlord. Before entering into a lease agreement, this is just one issue to consider. There are many others, namely, clarifying what the corporation is responsible for versus the unit owner, what items to include in a lease agreement, and ensuring adequate insurance coverage.

The corporation-landlord-tenant relationship

As tenants settle into their homes, it is imperative to solidify their sense of place in the community, whether through events or newsletters.

“Some buildings are highly tenanted, and leaving the majority of the residents out of the loop doesn’t encourage the feeling of a single community,” said Krivsky, “What you don’t want to encourage is an owner-tenant divide between residents.”

“We want to encourage tenants to care as much as an owner who has an invested interest in the property. This makes it more likely for a tenant to reach out to management about corporation-directed issues.”

Corporations could also build a tenant welcome package for owners to hand out, which includes what contact information to provide to management. “Really helping owners gain the knowledge they need to become landlords and leasing their units and also knowledge for tenants to fit into the community is the goal.”

Unit owners are responsible for ensuring their tenants comply with the condo’s governing documents, and any communication should be directed to them. Corporations are to address tenants’ concerns directly with the unit owner, and should do so in writing, in case an owner doesn’t remedy a situation, which could lead to legal action, said Krivsky.

When it comes to interior repairs or maintenance and requests for common elements changes, owners must request those changes to the corporation. If the tenant makes unapproved alterations, the accountability to restore falls upon the landlord. Other rules pertain to homeowner meetings. Tenants can attend them, but only if the owner assigns their proxy to the tenant for the particular meeting.

Owners must notify their condo corporation within 10 days of entering into, renewing or terminating a lease, according to Section 83 of the Condo Act. They must provide their own address, the renter’s name and a copy of the lease, renewal or a summary of either, and give the lessee a copy of the declaration, bylaws and corporation’s rules.

Insurance considerations

Tricia Baratta, commercial insurance professional at Gallagher and vice-president of CCI London and Area, cited three policies for condos with rental units. Section 99 and 102 of the Condo Act outline what the condo corporation policy should insure. A more recent addition is cyber-privacy and liability.

A unit owner’s coverage should include anything above the standard unit description and bylaw, their contents that aren’t attached to their unit, extra living expenses for vacating in the case of repairs, deducible and loss assessment and their own personal liability. However, when transfering to a leased-unit agreement, while all the same coverages apply, the tenant should take on additional living expenses and some of the contents. Owners can lower the contents limit as their personal property is no longer inside their unit, apart from appliances that require repair.

Unit owners should require that tenants show proof of insurance, Baratta stressed. “We want to make sure that content, should it be damaged in a loss, can be removed from the unit and that there is coverage for that. We don’t want the condo corporation or unit owner to take care of that bill.”

While the condo corporation’s coverage remains the same during a leased arrangement, the higher the ratio of rentals to owner-occupied units, the greater the impact on a corporation’s premiums, Baratta noted.“If you have 50 per cent rentals in a condo you are definitely going to see an increase in the premiums that are allocated to that property coverage and liability coverage. Some insurance companies won’t even write a condo policy if they are above that threshold.”

Section 83 notices

Corporations are obligated to keep records of notices of these leases. Natalia Polis, condo lawyer with Lash Law, explained how knowing who residents are comes in handy for security purposes. When armed with the condo’s declaration, bylaws and rules, tenants are made aware of what is not permitted within a corporation.

In case of infractions, notices contain a tenants’ contact information, so management, the corporation and solicitor can directly communicate with them.

Notices also clarify off-site owners. “This is important, especially when there is an owner-occupied position up for election,” she said. “ Off-site owners would not be entitled to vote for that election. It also affects the eligibility of some owners to run for the election if there is a specific qualification in their bylaws that requires them to be an owner occupant.

“In some circumstances, I’ve seen an owner get elected onto the board and then subsequent election they found out that he’s not an owner-occupant and that’s the specific qualification in the corporation’s bylaws. So, that owner was immediately disqualified. This could leave the corporation in a precarious position. It could lead to a vacant position or worst case scenario— if there are not many directors on your board you could be without quorum.”

Corporations must identify how many units are leased for their status certificates and periodic information certificates. Owners are also requesting these records. “We’re seeing, ever since the CAT received jurisdiction over records disputes, owners are bringing these disputes left, right and centre, especially with the terms of Section 83 notices,” Polis said.

According to what a corporation is to maintain with Section 83 notices, Polis relayed clarification from the CAT in Chai v. Toronto Standard Condominium Corporation No. 2431. “This decision held that Section 83 requires a corporation to maintain a list of each unit for which one or more notices under Section 83 have been received.”

This includes the type of notice and date it was received—for all units that have ever submitted a notice.

The CAT ultimately ordered the condo to provide a copy of the updated record within 30 days, except for information relating to specific units/owners under section 55(4)(c).

The case also underscores the importance of leased units equaling the notices received, said Polis. “If the corporation has not received a lease, it should not include the information about the unit being non-owner occupied in the information certificates or status certificates, or disqualify the person before they are even a candidate for owner-occupied positions. Even if the board and management know the unit is leased, you do not enter that number unless the corporation receives that notice.”

Another lesson learned for record-keeping in relation to Section 83 is maintaining adequate and accurate notices. Not all owners may submit them, but corporations can reach out requesting updates.

What goes into residential leases and governing documents?

Residential leases should correctly identify the premises and acknowledge that the tenant is bound by the Condo Act, declaration, bylaws and rules, as amended from time to time, said Patricia Elia, senior lawyer with Elia Associates.

As she further noted, “you want to confirm the fact that a unit owner cannot grant a greater interest in land than what they themselves hold.”

The landlord is responsible for enforcing compliance in relation to the tenant. There also should be a robust indemnity clause to ensure the tenant acknowledges they will be responsible for the consequences of their actions according to the leasing obligations

According to the corporation’s framework, “the declaration, bylaws and rules should contemplate, where you do have tenancies possible, that your corporate governance is actually meeting that possibility,” said Elia, adding that the declaration should include indemnification obligations by the unit owner (and their guests and tenants) for any costs incurred by the corporation that deal with compliance.

Bylaws can create parameters for mischief and should anticipate tenancies. Rules should encompass all residents living in the condo. Another essential element is the provision of emergency contact information. In case of an emergency, owners should be first to take responsibility, but if they live outside the country then request a tenant’s emergency contact be someone located in Canada.

“You may want to include in your rules or set of policies, in the case of a tenancy, please provide us with a contact person other than the unit owner to contact quickly,” said Elia. To make communication easy and fulfill the obligation as a landlord under legislation, a tenant can sign an email authorization form via a permission slip in the welcome package.

Tenants should also acknowledge they have read the governing documents. “You have to comply with the Act, but it’s important to show, in your contractual relationship, that you’ve actually delivered that because that is the standard you are going to be held to as a landlord.”

As Elia noted, there must be clear boundaries between the corporation’s duty and the owner’s responsibility, while embracing all the relationships that form the community as a whole.

If recent news is any indication, enforcement continues to be a hot topic. Sonja Hodis, a litigation lawyer at Hodis Law, relayed her top 10 enforcement considerations.

1. Notify the tenant and owner of the breach and corrective action that must be taken so they are both part of the discussion from the very beginning.

2. Never breach rule number one. Failure to notify all parties from the beginning will cause problems for corporations when seeking reimbursement for their costs against the owner. There have also been issues around getting enforcement orders against tenants. Don’t rely on the owner to communicate breaches to the tenant.

3. Update indemnification provisions. Use specific language in governing documents, stating the owner is responsible for any costs incurred by the condo, even if the tenant is in breach, and the condo is not required to collect from the tenant. Costs ordered against tenants are difficult to collect; however, costs ordered against owners can be added to the common expenses.

4. Obtain completed owner and tenant information forms and update them on a yearly basis.

5. Give owners a reasonable opportunity to take steps to fix the problem. If not, there is a good chance it will affect your ability to be reimbursed for costs.

6. Cooperate with owners who are taking steps to evict a tenant under the Landlord and Tenant Board. Provide them with evidence and information they require.

7. Know your boundaries when it comes to enforcement and dealing with tenants in condos. There is no contractual relationship between the condo and the tenant. The condo’s ability is limited to breaches of the Condo Act and governing documents.

8. Name the correct parties in legal proceedings. Tenants are not allowed to bring applications against owners or condos under the CAT. Only owners and condos can bring applications against the tenants. Name both tenant and owner as respondents in those applications.

9. Eviction is a very strong remedy. The CAT has no authority to evict a tenant. Courts can remove tenants under Section 134 (4) of the Act if the tenant has contravened an order under Section 134 or has not paid the amounts due under Section 87.

10. The Condo Act’s Section 87 is a ‘secret weapon’ for collecting expense fees. It is another enforcement tool that condos can use only when a unit is a rental unit. If common expense fees go unpaid, it allows corporations to notify the tenant to direct their rent to the condo to cover arrears.

Metro Vancouver adopts new growth strategy

Metro Vancouver has adopted an updated regional growth strategy to shape the region for the next three decades.

Metro 2050 the collective vision for how projected growth will be managed in the region to support the creation of complete, connected, and resilient communities. It will also protect important lands from development and support the efficient provision of urban infrastructure like transit and utilities.

“The adoption of this plan is a significant achievement,” said George V. Harvie, Metro Vancouver board chair. “It represents a commitment by every member in the regional federation, TransLink, and neighbouring regional districts to work together in the spirit of collaboration for the sake of future generations. I know we all believe that together we make our region strong.”

Metro 2050 is an update of the 2040 plan and addresses climate change, affordable housing concerns, and recent growth projections, and seeks to fully align with Transport 2050, the region’s transportation strategy. It includes a series of policy improvements based on learnings over the past 10 years.

“The purpose of this strategy is to promote the creation of communities that are socially, economically, and environmentally healthy, and make efficient use of public facilities and services, land, and other resources,” said Eric Woodward, chair of Metro Vancouver’s Regional Planning Committee. “Metro 2050 is the plan we need to address the big challenges we are facing as a region and to take advantage of the many opportunities in our shared future.”

The plan sets out five overarching key goals: create a compact urban area; support a sustainable economy; protect the environment and respond to climate change and natural hazards; provide diverse and affordable housing choices; and support sustainable transportation choices.

By 2050, it’s estimated that a million new residents will call this region home. Metro 2050 includes updated population, housing, and employment growth projections, and anticipates the need for the creation of approximately 500,000 new jobs and 500,000 new homes over the next 30 years.

New school coming for Kamloops

The B.C. government is providing $65.3 million for a new 485-seat elementary school in Kamloops.

The new school will serve students from kindergarten to Grade 7 and includes the learning centre, which will be used for programs and services, including child care, which benefit the broader community.

“Our government understands the importance of supporting families, and we know that Kamloops is a fast-growing city,” said Rachna Singh, minister of Education and Child Care. “I’m proud that we are providing funding for a new elementary school with a neighbourhood learning centre that will benefit students and families in the Pineview Valley area for years to come.”

Mass timber will be used in the new school’s design, where appropriate. It will also include greenhouse gas reduction measures that will set the building’s emissions at least 50 per cent lower than the current LEED Gold Standards. In addition, the school will be built with a climate-resilient building design that will better equip the school to stay cool during extreme heat.

Construction on the school is anticipated to start in spring 2024 and open in summer 2026.

“Our board of education is extremely pleased to receive this much-needed new school announcement, and we look forward to continuing to work with the ministry on our other capital priorities,” said Heather Grieve, board chair of School District 73.

Since September 2017, the province has invested $32.7 million, and the school district contributed an additional $1.75 million in a 525-seat addition at Valleyview Secondary, which opened last year. Construction is underway on the Parkcrest Elementary school which is set to open in 2024. That project received $34.8 million from the government with an additional $300,000 from the school district and $2.1 million from the City of Kamloops.

Discount coming on Alberta’s education mill rate

Alberta ratepayers will see a reduction in the education property tax mill rate this year. The newly released 2023-24 provincial budget confirms the government will requisition $2.5 billion to apply to education operating costs, which is consistent with the 2022 levy. However, that will be spread across an expanded assessment base.

As a result, the non-residential mill rate will be set at $3.76 per $1,000 of assessed value, approximately 3.6 per cent lower than last year’s rate of $3.90 per $1,000 of assessed value. Residential ratepayers can expect a 3.4 per cent discount as the mill rate drops to $2.56 per $1,000 of assessed value, down from $2.65 per $1,000 in 2022.

“The tax has covered about 30 per cent of educational operating costs in recent years, with the remainder funded through general revenue,” budget document advises.

Meanwhile, Alberta’s municipalities can look forward to a slight boost in grants-in-lieu payments for provincial properties exempt from local taxes. The budget promises a phased $4 million top-up over three years, increasing the total value of grants from $36 million in 2023-24 to $40 million in 2025-26. The extra funds acknowledge rising property values and are meant to ensure that provincial sites can be consistently maintained.

“The Grants in Place of Taxes program acknowledges that the province benefits from municipal services, such as roadwork, snow clearing, transit and emergency services, provided to government properties,” the budget document states.

Finding the right maintenance strategy for your building

As building managers know, finding the right maintenance strategy for your building is the key to increased efficiency, cost savings, and improved performance. Whether your approach is proactive, reactive, short-term, or “big picture,” managers need a plan to address equipment failure and maintenance issues on an ongoing basis.

Here’s a look at four different approaches to maintenance to get you started in developing a strategy that works best for your building and your business.

Corrective maintenance

This strategy is a reactive one, based on the idea that when an anomaly is detected, it is addressed with the goal of restoring regular operations soon as possible. This strategy relies on the belief that regular maintenance costs more than simply addresses issues as they arise.

Preventative maintenance

This approach is basically the opposite of the previous one, focusing on regular, scheduled maintenance to reduce the risk of failure and to avoid the equipment being out of service. This system also gives you a really good way to stay on top of the condition of your equipment so you can plan for replacement when the time comes.

Risk-based maintenance

Predictive, data-based decision-making is what this strategy is based on, using analysis and measurement to plan and carry out maintenance. The goal is to use risk assessment, based on gathered data to create a regular maintenance program. The premise is that when information is analyzed, risk assessment is conducted and maintenance is performed based on the identified risk, resulting in overall better performance and efficiency.

Condition-based maintenance

Similarly, this approach relies on data to set a maintenance schedule, but relying on constant monitoring, repair or replacement is conducted following predetermined criteria on a regular basis. This system basically relies on vigilant analysis and catching anomalies before they turn into serious issues, to cut down on major equipment failure.

Whatever approach you take – maybe it’s a combination of one of these or you’ve created your own version – the goal is to minimize overall spending, take the surprise out of costly expenditures, and run your building and equipment at their most efficient. Develop a strategy that works best for your business and allows you to better perform your job as the maintenance manager.

2023’s top HVAC trends

What are this year’s top HVAC trends? It’s likely no surprise that 2023 will see a continued rise in the use of technology to help facility managers improve efficiency, performance, and asset management. As technology takes over so many facets of building management, heating and cooling is no exception, benefitting from technology tools to continue to evolve and improve.

This year’s HVAC trends use technology to make your job easier and boost the performance of your building.

Get smart

You’ve heard of smart warehouses and smart washrooms, but smart thermostats are the newest way for building operators to manage heating and cooling from wherever they are on their tablets or phones. Being able to better manage the heating and cooling in your building means that you can optimize the temperature according to the use and traffic of your space for better efficiency and to cut costs.

Go remote

Along with controlling your heating and cooling, you can also review and manage data and diagnostics remotely. This feature gives you a look at your real-time usage, monitoring humidity, air level qualities, temperature, and more. It also makes it easy for you to identify issues as they happen and look at long-term data to make informed financial decisions.

Stick with the standards

Studies show that HVAC systems use about 35 per cent of a building’s energy, on average. With climate change continuing to be a concern, experts predict that this year will bring a tightening of standards for the HVAC industry that will lead to even greater energy efficiency. That, combined with additional measures like increased insulation and alternate sources of energy could significantly reduce the impact that HVAC has on the environment.

Choose an alternative

The HVAC industry is embracing alternative energy sources, like wind and geothermal. Solar power is also gaining popularity, enabling some air conditioners to operate emission-free. The industry is also moving towards air conditioning using refrigerants with less negative impact on the environment. Along with these alternatives, the use of electrification in heating is becoming more popular, where the system runs completely without the use of fossil fuels, using things like heat pumps to get the job done.

As building management continues to evolve to improve performance and efficiency, these top trends can help you use technology to turn your HVAC into a more cost-effective endeavour, while lowering your carbon footprint.

Vancouver approves 10.7% property tax hike

Homeowners now face an average property tax increase of 10.7 per cent after Vancouver City Council approved an operating budget of $1.97 billion for 2023.

The hike comes with spending allocated for core city services like infrastructure renewal, police services, reserve replenishment, and other city funding.

Although tax notices will differ for each property depending on the assessed value, the average condo owner will now pay an extra $124 annually. It also means $326 for single-family homes and $549 for a business property.

These estimates solely reflect the city’s portion of taxes. The amount due on a tax notice will also include utility fees, provincial school taxes, and taxes levied by other taxing authorities.

This is Vancouver’s largest property tax increase in over a decade.

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