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Low-income households foiled on energy savings

Prince Edward Island and Nova Scotia are the top spenders to alleviate energy cost pressures on low-income households among Canadian provinces. Efficiency Canada’s newly released Provincial Energy Efficiency Scorecard reveals that the two Atlantic provinces provide significantly more dollars per economically stressed household — equating to $215 in PEI and $121 in Nova Scotia — than other provincial governments.

Nova Scotia, with a population of about 980,000, also has the second highest total budget after Ontario to help low-income consumers find energy savings. In 2019, Nova Scotia invested $17.8 million in targeted conservation programs, while Saskatchewan, with a population of about 1.2 million, spent $340,000.

Analysts with Efficiency Canada — a national not-for-profit organization championing the dual economic and environmental benefits of energy and water efficiency — based the interprovincial comparison on funds available to help low-income consumers capture savings and the number of households spending more than 6 per cent of their after-tax income on energy. That’s calculated for the most recent period for which 12 months of data is available, taking it back to a 2019 start-date for seven provinces and to 2018 for PEI, Ontario and British Columbia.

The 6 per cent benchmark to demarcate households struggling with energy costs is about double the national median for household energy spending. It’s also based on common standards that households should spend no more than 30 per cent of income on housing, while no more than 20 per cent of housing costs should be allocated to energy.

Roughly 20 per cent of Canadian households are presumed to carry undue energy cost burdens, but that average rises to 37 to 41 per cent across the four Atlantic provinces. On the flipside, the average falls below 20 per cent in Quebec, Manitoba, Alberta and British Columbia.

Meanwhile, financial stress is a barrier to implementing energy-saving measures that come with upfront costs. “While programs targeting traditionally underserved and hard-to-reach customers yield larger benefits, realizing them is more capital-intensive and requires different outreach and engagement strategies,” Efficiency Canada analysts submit.

The scorecard shows varying spending or cost-cutting thrusts among the provinces. In the latter category, Manitoba slashed its commitment to low-income energy programs by more than 50 per cent from the figures cited in Efficiency Canada’s inaugural scorecard released in 2019, reducing spending per household in need by $44.16. Even so, it still ranks third among the provinces with its new per-household rate of $43.80.

From there, provincial spending per household in need slips down to Ontario’s fourth ranked $33.68. The province is scheduled to begin a new four-year round of conservation and demand management (CDM) incentive programs in January 2021, and has stated that programs for low-income residential customers are a priority.

Saskatchewan increased spending by $2.77 per household in need, to push this year’s average up to $4.12 per household. That’s tied to the 2019 launch of a SaskPower pilot program for low-income households in Regina and Saskatoon. Qualifying customers were offered free home energy-use assessments and free installation of LED lights, smart thermostats, low-energy power bars and/or low-flow showerheads. Nevertheless, the province is deeply entrenched as the most frugal investor in low-income programs with a wide margin to ninth positioned Quebec, which spent $12.60 per household in need.

While Alberta’s total spending tally of $7.7 million — equating to $32.43 per household in need — is an increase of $8.83 per household from last year’s scorecard, the data encompasses regimens of two different provincial governments. The current government dismantled the former government’s energy efficiency incentive programs in October 2019.

New standard for accessible homes announced

CSA Group is developing a new, national standard for affordable, adaptable and accessible homes that will form the foundation of a new Rick Hansen Foundation Accessibility Certification (RHFAC) module to help rate the accessibility of residences.

Based on the National Standard of Canada, CSA B651-18, Accessible design for the built environment, RHFAC is the only national program that rates, certifies and celebrates the meaningful accessibility of buildings from the perspective of persons with mobility, vision and hearing disabilities.

The standard will help support the development of affordable and adaptable accessible homes across Canada by providing evidence-informed guidance, and the application of new and existing knowledge related to best practices for the design, construction, and modification of affordable and adaptable accessible homes. RHF will provide expertise in housing accessibility as a member of the advisory panel that will help guide the standard’s development.

“Having the opportunity to age at home is increasingly important to Canadians, and the need for accessible housing in Canada is a huge issue,” says Brad McCannell, vice-president of access and inclusion at the Rick Hansen Foundation. “We’re thrilled that CSA Group will be developing this new residential standard and to incorporate it into RHFAC to help industry address this critical gap.”

Public polling released by the Angus Reid Institute in January 2019 shows that one in three Canadians have issues getting around their own home and a majority are anticipating challenges moving around at home in the future.

The federal government, through the National Housing Strategy (NHS) delivered by Canada Mortgage and Housing Corporation (CMHC), is providing $190,000 in funding to CSA Group to support research and the development of this new standard, which is scheduled to be published in May 2022.

Designer-focused condo takes shape in T.O.

A 22-storey mixed-use condo will rise in Toronto’s Annex neighbourhood as the first newly developed building in the history of the Designers Walk community—an area of the city that currently houses a multitude of showrooms and interior design and architectural firms.

Slated for completion in 2023, the condo will incorporate features for residents and clients of future firms to attract like-minded buyers and businesses, including a vertical forest and more than 10,000 square feet of flagship retail, showroom and office space.

“For us, fostering and supporting our professional community has been at the centre of everything we do,” said Joab Igra, founder, Designers Walk. “We’re building a hub in which architects and designers will be able to live and work in the centre of Canada’s design industry, giving them unprecedented opportunity and access to our community.”

Developer Cityzen Development Group currently plans to build 92 units at the 314 Davenport Road location.

“Designers Walk is known as a destination for Toronto’s designers and architects to source and procure show-stopping design elements for their clients, and as a home-base for prominent firms,” said Igra. “This new chapter with our expansion into residential real estate allows us to bring that beauty and experience to all those who want to live in a space that’s truly unique and forward-thinking.”

 

Mayors target embodied carbon in construction

The mayors of Budapest, Los Angeles. Mexico City and Oslo are the first signatories of a new declaration targeting a 50 per cent reduction in carbon emissions from construction projects by 2030. The pledge is a C40 Cities initiative, which will be seeking support from municipal leaders and the local development industry in other major global cities to raise awareness about embodied carbon levels of buildings and infrastructure.

Mayors Gergely Karácsony, Eric Garcetti, Claudia Sheinbaum and Raymond Johansen  have committed to supporting the repurposing and retrofitting of existing buildings and facilities with an eye to exhausting the full lifecycle of carbon-intensive building components and materials. Notably, concrete production accounts for 8 per cent of annual global greenhouse gas emissions.

“Embodied emissions in construction activities and materials are uncharted areas, where large mitigation potential can certainly be found,” Mayor Karácsony observes. “Budapest wants to find its way to mobilize its ecosystem to make significant improvement in this field.”

The mayors’ pledge is to be accomplished through planning policies, design standards, building codes and procurement and contracting processes that promote zero-emission construction machinery, transparent reporting of embedded carbon in the supply chain and frugal use of raw material. The mayors have also agreed to approve at least one prominent net-zero construction project by 2025, and to produce annual progress reports on their actions.

“We are confident that the C40 Clean Construction Declaration will contribute in shifting the construction market globally,” says Oslo’s Mayor Johansen. “Together, we can remove fossil fuels and reduce emissions from construction sites altogether. This will make them safer, quieter, cleaner places to work, and will ensure that the air in our cities is cleaner and healthier to breathe.”

Lethbridge care centre will open in 2022

Construction is underway on St. Anne’s Haven, a new continuing care centre in Lethbridge. The facility is expected to open in spring 2022.

The Alberta government contributed $10 million towards the $26-million Covenant Care project, supporting the commitment to build more and safer continuing care spaces in communities most in need. St. Anne’s Haven will be home to 102 people needing supportive living and dementia care.

“This facility will benefit all of Lethbridge. St. Anne’s Haven will be a safe and welcoming home where seniors and people with disabilities can get the care they need. Thank you to Covenant Care for providing thoughtful, compassionate care to our community’s seniors, people with complex needs and their families,” said Nathan Neudorf, MLA for Lethbridge-East.

Situated on almost five acres in Lethbridge’s Garry Station neighbourhood, the three-storey building will feature natural light, visiting spaces, a chapel and outdoor patio and gardens. Seniors will live in small home-like groupings of 17 suites, each with its own private entry, kitchen and dining area.

Social interaction and a sense of community, as well as independence and high-quality care will be key elements of St. Anne’s Haven.

St. Anne’s Haven will have a central entry that leads into a main lobby and reception area. The lounge and common areas will welcome residents, their families and guests to spend time together socializing or in worship. The spaces will be flexible and expandable so staff can respond to the needs of residents.

“St. Anne’s Haven will be a place where residents feel truly at home. They will have safe and convenient access to outdoor spaces and will be encouraged to make their own decisions – such as when they would like to eat, sleep and enjoy activities,” said Derrick Bernardo, president, Covenant Care.

It is named after St. Anne, the patron saint of grandparents. Together with the word haven, the name evokes acceptance, comfort and safety.

New Vancouver laneway project features Salish art

The newest laneway project, snékwem lane, has officially launched and is ready for the public to enjoy in Vancouver. The snékwem lane is located between Granville and Pender Streets and is the fourth transformed laneway project managed by the Downtown Vancouver Business Improvement Association (DVBIA).

The lane is part of a larger transformation project that came from a public engagement process called Re-Imagine Downtown Vancouver that revealed a need for more inclusive experiences and spaces over the next 25 years.

The mural design is a collaborative artistic vision between artists James Harry and Lauren Brevner, turning a predominantly grey laneway into a bright, visual feast with blue, yellow, and salmon-red colours.

The laneway’s design features Lauren Brevner and James Harry’s modern interpretation of a traditional Squamish story about how the salmon came to Squamish waters. The story was passed down to Harry by his father, Xwalacktun, and speaks of visitors with supernatural powers who, with the help of snéḵwem (the sun), led the Squamish people to the village of the salmon people.

The design’s focal point is a 50 feet feminine figure personifying the spirit of snéḵwem (the sun) and seven kwu7s (chinook) salmon, which are the first salmon species to run every year. Seven is also a significant number for Indigenous people as it represents the Seventh Generation Principle: a philosophy that the actions we make now impact the future seven generations.

“Despite the challenging circumstances we find ourselves in, we’re proud to continue to support local artists, some of the hardest hit by the pandemic and the restrictions in place,” says Charles Gauthier, president and CEO of the DVBIA. “The DVBIA is dedicated to showcasing more Salish art within downtown public spaces. Laneways have a vast amount of untapped potential, and our transformation projects use art to brighten and animate a nondescript space that further encourages people to explore downtown.”

Previous projects include Alley Oop, a bright, pink and yellow alleyway located just off of Hastings and Granville; Ackery’s Alley, an outdoor performance space featuring an interactive light and sound installation adjacent to the Orpheum Theatre; and Canvas Corridor, located in Eihu lane between Alberni and Robson Streets, highlighting forty-five doorways and vents wrapped with artwork from local artists.

Grocery-anchored retail deemed a best buy

Grocery-anchored retail plazas top the “best buy” list in Altus Group’s most recent quarterly survey of investment trends. That stands in stark contrast to other types of retail properties, which the 150 Canadian real estate executives participating in the survey tagged as their least preferred assets.

“Food-anchored centres are one asset class that has fared well in this pandemic because it’s essential — grocery and pharma,” Colin Johnston, Altus Group’s president, research, advisory and valuation, told online attendees of the REALPAC/Ryerson Virtual Research Symposium last week. “So people are looking for that, and desiring that asset class.”

Otherwise, he drew a downbeat picture of the bricks-and-mortar retail sector as it reels from COVID-19-triggered public health controls and watches its already gaining competition grow even faster than projected. Following two years of less than 5 per cent sales growth, Canadian retail sales have now dropped below 2019 tallies. However, e-commerce’s share of total sales has climbed by nearly 30 per cent.

In November 2019, analysts calculated e-commerce would account for 7.7 per cent of Canadian retail sales in 2020. Thus far, it’s 8.7 per cent — as lockdowns are re-imposed during the traditional busiest shopping season of the year.

Johnston cited statistics from the United States reporting 40 million first-time e-commerce shoppers during the first four months of the COVID-19 outbreak. “That is a structural change,” he concluded.

Fashion and home furnishing retailers have been hard hit. Notably, second quarter clothing and clothing accessory sales in Ontario dropped 65 per cent from the comparable period in 2019. Eight companies, encompassing 18 retail brands and more than 1,300 stores had filed for CCAA (Companies’ Creditors Arrangement Act) protection. Meanwhile, plummeting sales for restaurants and food services emanate pain widely to employees, business owners and commercial landlords.

“A lot of the experiential retail, the trendy food halls etc. that were going to be a big part of saving enclosed shopping centres, unfortunately, those have been hard hit,” Johnston said. “It has been difficult for landlords who spent a lot of money putting those concepts in, in places like Ottawa, Toronto, Vancouver and Montreal.”

Between April and September, tenant rent delinquencies in enclosed shopping centres ranged from a high of 64 per cent in May to a low of 26 per cent in September. Relatively fewer tenants struggled in strip malls or open-air shopping centres, but delinquency rates ranging from a high of 41 per cent in May to lows of 13 per cent in July and August still far surpassed levels in other types of commercial properties. Notably, the national office delinquency rate topped out at 8 per cent during the same six-month period, and the highest delinquency rate recorded among large-bay industrial tenants was 6 per cent in May.

Johnston reports some restaurateurs and fashion retailers are seeking new interim rent arrangements, in which they pay a variable rent based on a percentage of their monthly sales rather than falling still farther behind on unachievable contracted rent payments. “That’s difficult for landlords, but I think a bunch of them are coming to grips with that and, in some cases, helping their retailers in that regard,” he noted.

Many landlords will now be considering ways to reposition faltering properties, perhaps sooner than they had envisioned. “COVID has accelerated many of the trends we were already seeing in the retail sector. Those failed community malls are going to be hastened toward redevelopment scenarios as they lose the last of their tenants,” Johnston observed.

Nevertheless, he cautions that the roughly two dozen popularly touted examples of obsolete U.S. malls that have converted to e-commerce fulfillment centres may not be so easily transferable to Canada. The necessary rezoning and planning approval process would likely be lengthier and more difficult here. Plus, while aging malls might be ideally located for last-mile delivery, fewer would be functionally compatible with a logistics operation.

“If they have low clear heights, they are not conducive to being made into huge distribution centres with a 40-foot clear ceiling,” Johnston advised. “There’s a lot of cost to that.”

He suggests e-commerce retailers and the developers tapping into that burgeoning sector will also be looking in other directions. Multi-level industrial facilities like the five-storey complex now under construction in Ottawa are still a new concept that he projects will become commonplace, particularly given the current shortage of industrial land ready for development.

“There is going to be more competition among industrial developers who want to have that last-mile fulfillment and residential developers for sites that are proximate to large urban populations,” Johnston predicts.

Your Rising Insurance Rates

From floods and hailstorms, to inadequate building maintenance, your insurance rates are impacted by several factors—not all of which are in your control. For apartment building owners today, it’s a tough market…and it’s only getting tougher.

Michael Blackman, Regional Manager and Principal at RJC Engineers, Kelowna, points to poor building maintenance and sub-par construction as primary causes for the dramatic increases we’re seeing. Citing a recent study by the BC Financial Services Authority, he notes: “Insurers are incurring losses mostly from minor claims [due to] poor building maintenance practices and initial construction quality issues.”

Additionally, as climate change affects weather patterns, causing more major weather events to strike globally each year, it seems likely that property owners will face additional rising insurance rates.

Overall, the impact to property insurance is a tough pill to swallow, especially for those doing everything right.

“I’ve found it helpful to understand the insurance industry as a whole,” he says of the complex world of underwriting. “The funds that support insurance are broadly shared. For example, fire, flood or hurricane losses in other parts of the world are often underwritten by the same entities that underwrite Strata flood or property damage losses. An increase in losses elsewhere, impacts the whole industry.”

Depending on several variables, including underwriting entity, claims history, location and other drivers, the impacts can be broad. But one thing building owners can do to keep insurance premiums down as much as possible is to ensure their building assets are in the best possible shape.

“Working with a reputable consultant, such as RJC, can assist in several ways,” he says. “Consultants are trained to understand and solve the right problems. By doing so, we can help define and limit what needs to be done. This helps keep overall costs down on your project, and your neighbour’s project—keeping in mind that insurance is underwritten by a few common entities.“

Working with a consultant can also help your building by showing the insurance industry that it is well maintained, and therefore arguably of lower risk. “By reviewing your envelope and addressing known potential issues, you can not only maintain or improve the shared value of your asset, but you can reduce the need for urgent response, such as what happens with a flood or roof leak,” he says.

In some cases a building owner may have had reports completed, but not acted on the findings therein. “The insurance industry is aware of this and can request these reports,” he warns. “If the findings and recommendations are significant, but not acted upon, building owners can expect their costs for insurance to go up or even to be denied coverage given it puts them in a more risky group than those that have followed through on their maintenance and repairs.”

So, what can apartment building owners do to secure the best insurance rates?

Blackman says there are a few avenues worth exploring.

“First, work with a reputable insurance broker. Second, stay on top of building maintenance and repairs. Ask the right questions. Did the findings of the report commissioned get actioned? If not, ask for follow-up. Third, if a tenant is having an issue with his or her unit, address it. These are community buildings, and with engaged community members, they run a lot better.”

For more information, contact Michael Blackman directly at [email protected], or visit www.rjc.ca

 

 

Bond rate signals to institutional investors

A 100 basis point slide in the 10-year Canada bond rate over the course of the COVID-19 pandemic contributes to real estate’s continuing allure for institutional investors. Speaking at last week’s REALPAC/Ryerson Virtual Research Symposium, Colin Johnston, president, research, advisory and valuation, with Altus Group, tracked a widening spread between 10-year bond yields and presumed real estate returns that measured 561 basis points in favour of real estate at the end of September.

“This is what pension funds and the life (insurance) cos look at,” he said. “They look at the spread between 10-year Canada bonds and internal rates. Right now, that does provide a potential buffer to values going forward.”

He submits that’s reflected in steady or even shrinking cap rates for multi-residential and industrial properties over the first three quarters of the year. Johnston’s presentation also revealed a general alignment between MSCI data for the Canada Property Index and results of Altus’ quarterly investment trends survey, based on responses from 150 Canadian commercial real estate executives. MSCI charts strong national returns in both the industrial and multi-residential sectors — averaging 12.4 per cent and 8.6 per cent respectively — while survey respondents tag those properties as their preferred investments.

“What’s in demand? It’s industrial; it’s industrial land; and it’s apartment buildings,” Johnston tallied. “What’s not in demand? The enclosed malls: the tier 1; the tier 2 regionals; the community (shopping) centres.”

Together, industrial and multi-residential properties account for nearly 42 per cent of Canada-wide investment sales value during the first eight months of 2020. Across all asset classes, year-over-year sales values dropped by 17 per cent and transaction volume declined by 11 per cent compared to January-August 2019. That was most notable in the office sector, which recorded $7 billion in sales during the first eight months of 2019, but was down to about $3 billion in sales for the comparable period of 2020. In contrast, industrial sales volume increased in 2020 and multi-residential registered the least amount of slippage among the other asset classes.

Looking at other factors that influence returns and investor outlook, Johnston pointed to September tenant delinquency rates ranging from 26 per cent in enclosed malls to 0.5 per cent in large-bay industrial facilities. Delinquency has abated from springtime levels for all property types — in May it peaked at 64 per cent in enclosed malls — and was pegged at 3.5 to 4 per cent for small-bay industrial, office and multi-residential properties as the third quarter came to an end. Meanwhile, tenant delinquency remained in the double-digits, at 14 per cent, for strip malls and open-air shopping centres.

“National office delinquency is less than 4 per cent, but there’s this disconnect between people who are paying rent and actually not occupying space,” Johnston mused. “The estimate is office attendance is somewhere below 20 per cent and I’d say, if we’re in the major CBD markets like Toronto, Vancouver, Montreal, it’s less than that.”

He ties the sparser attendance rates in those big city downtowns to workers’ heavy reliance, in normal times, on public transit, suggesting that contributes to current uncertainties in the office sector. Nevertheless, from a regional perspective, MSCI reports Toronto, Vancouver, Ottawa and Montreal delivered positive returns over the first nine months of the year, and those are also the markets Altus survey respondents favour.

“Vancouver, Toronto and Montreal, absolutely (are understandable). They’re big attractive markets with huge CBD districts, etc.” Johnston acknowledged. “Ottawa, I would say has done very well in this pandemic simply because it’s a large government town. If you think of concerns with regard to office occupancy, the government moves slowly. So I think people look to that market as one that will be fairly stable going forward.”

Mixed-use condo 11 Yorkville begins ascent

11 Yorkville is taking shape as developers broke ground on the 62-storey condo last week.

Once complete the tower will feature 593 residences, 43,000 square foot, double-storey retail space, and a brand-new city parkette.

Designed by Sweeny&Co, the tower pays homage to the timeless gothic architecture that was predominant among New York’s first skyscrapers in the 1920s. Since launching the project in 2019, the developers have already sold 97 per cent of suites in this mixed-use development.

“The neighbourhood’s new parkette will play a key role in contributing to Yorkville’s already active public realm,” said Howard Sokolowski, chairman and CEO of Metropia. “11 Yorkville will leave an indelible mark on this city, and we could not be prouder of this project’s resounding success in such a short time.”

The land assembly began in 2014 as RioCan and Metropia began consolidating their properties along Yorkville Ave., with the goal of contributing to the legacy of Yorkville. Capital Developments, who partnered with RioCan and Metropia on E2 Condos at Yonge and Eglinton, was also enlisted as a partner.

Recognizing the need for more public space in the neighbourhood, the developers introduced a 14-metre-wide parkette designed by acclaimed Janet Rosenberg & Studio that fronts the building’s retail space, connecting Cumberland St. to Yorkville Ave.

Interiors are designed by award-winning firm Cecconi Simone. Design-focused kitchens form the heart of the suites, which include a two-level black marble island with a built-in wine trough, a wine fridge, and a marble range hood enclosure.

“11 Yorkville brings a true luxury experience into every detail of the building from the moment you walk through the front door,” said Jordan Dermer, co-founder and managing partner of Capital Developments.

Sustainable practices for a sustainable future

For some companies, sustainable cleaning has long been top of mind. For others, it’s become a renewed focus in the wake of 2020, the year of the pandemic. Whatever the state of play has been until this point, though, there’s no doubt that in the current world, the issue is an unavoidable topic of discussion.

Part of the issue of cleaning and maintenance in the age of a global pandemic is that, naturally, there can be an inclination to be reactionary in decision-making. However, avoiding that knee-jerk desire to find quick solutions is vitally important, else the industry can end up with a variety of band-aid measures that come unstuck under prolonged scrutiny.

The tendency can be to look for something that’s going to kill COVID-19 effectively and quickly, but the reality of that can be that the products or methods used do more harm than good in the medium and long term. An absence of sustainable cleaning could be environmentally unfriendly or even potentially harmful to workers or visitors. It’s also vital for companies, when faced with the need for more or revised products, to avoid creating secondary issues like more pollutants.

In that environment of acknowledgement, sustainable cleaning comes to the fore. Now, after over eight months of serious recognition of the impact of the pandemic, firms are seeing the current landscape as an opportunity to step back and reevaluate cleaning programs. Sustainability was a topic at the recent ISSA Show North America, and FC&M talked to several companies about what they’ve been doing to look to the long term.

Inspiring confidence through certification

One way of showing your green concerns is to get certified. ABCO Cleaning Products, for instance, has long prided itself on carrying the global Green Seal certification for its products, which include a long line of mopheads and dust mops. That recognition is particularly important to it and its customers, say director of operations Carlos Albir and national sales manager Luis Janania.

“We’re having tremendous feedback on that certification from a lot of the distributors that see the value behind it,” says Janania. “It really allows them to start selling simple products like mops and dust mops to an industry that’s very much moving toward sustainability.”

Meanwhile, many of Whittaker Systems’ carpet cleaning formulae and products have also earned Green Seal certification, which director of technical services Joe Bshero describes as the industry gold standard.  Whittaker also reinforces customer trust by passing thorough tests to achieve WoolSafe and Carpet & Rug Institute approvals. Bshero notes the WoolSafe certification ultimately means that the products are officially greenlighted as being safe on all carpet constructions, leading to an easier and more efficient cleaning process.

Sustainability in practice

Sustainability fits with everything that’s going on in the world in 2020. There’s already far more focus on how people are cleaning, when they’re cleaning, what they’re cleaning with, what additional tasks they have introduced, and so forth. Part of the battle companies face, says Janania, is changing the perception that “going greener” means more expense. In reality, it’s more about a) having the desire to pursue a more sustainable approach and b) making the pivots necessary to achieve that.

Communicating sustainability is another important factor. Just as programs like ISSA’s GBAC STAR accreditation allows facility managers to show off cleanliness credentials, open messaging conveys to customers and end users how businesses are working towards a sustainable future. Albir explains that ABCO’s vertical integration allows it to demonstrate its environmentally friendly approach from raw material to finished goods. “We’re able to show how we’re recycling this clothing garment scrap to convert it into raw material that we spin into yarn to then produce all these types of mopheads and dust mops,” he says.

Hydro Systems’ global product manager John Goetz notes sustainability is tied into practicalities, too. The company’s newly developed chemical dispensing systems remove a certain degree of human error. “The one thing we don’t want with the chemical dispensers is the end user coming into contact with the chemicals, free pouring or mixing,” notes Goetz. Instead, they provide a solution that dispenses the appropriate amount of chemical dilution each time. This, says Goetz, helps to cut down on waste. “Getting the job done first time in terms of kitchen and laundry means less rewash, which of course would use more chemicals, more water, more utility.”

Meanwhile, Sofidel vice president Fabio Vitali explains that his company has been working for over a decade on biodegradable dispensary products made from non-plastic sources that cause less environmental harm.

A focus moving forward

There are renewed efforts in the present, too. In time, Vitali says, Sofidel noted that ocean preservation was a hugely important and often overlooked issue and so its Papernet brand of HyTech dispensers now includes HyTech Ocean, which utilizes plastic that is recovered from unstable ocean materials. The final result is a product that is made of 100% biorecyclable plastic, 30% of which is ocean plastic.

Vitali explains that the net effect in terms of ocean preservation is negative. “We don’t add, we take out because we re-use part of the plastic and the rest is recyclable. We’re very proud of this development, we believe it’s the first of its kind.” The initiative is currently limited to a couple of items but the company is looking to expand it across the board. In addition, Sofidel was recently awarded a Leadership Award by the Forest Stewardship Council in recognition of its efforts towards responsible sourcing and forest management. It also released a few months ago a plastic-free packaging.

Other companies, too, have been achieving recognition. Ecolab Inc., for instance, was just named to the 2020 Dow Jones Sustainability™ World Index, which evaluates the sustainability performance of the largest companies listed on the Dow Jones. And other innovations in the field are focusing on long-term capabilities and a sustainable future.

Bshero notes that Whittaker’s carpet cleaning machines are extremely durable, with an average life of about 10 years, while its cylindrical brushes generally last for a million square feet per set. He acknowledges that improper carpet cleaning results in materials thrown on a landfill far too soon and that one of Whittaker’s biggest sources of pride is that it reduces the frequency with which that occurs.

Whittaker uses approximately a single gallon of cleaning solution to clean around one thousand square feet of carpet, saving a vast amount of water with the type of low-moisture systems that have become commonplace. The relatively quiet operation of the machines, too, means they can be used for day cleaning in offices and call centres without too much disruption. That, in turn, means their usage doesn’t require burning lights, heating, or air conditioning at night.

A sustained push

When it comes to sustainability in cleaning and maintenance, of course, we’ve barely scratched the surface here. But, moving forward, don’t expect this discussion to go away. If anything, sustainability’s importance is only likely to continue to grow.

The concept of “green cleaning” can be misunderstood. It doesn’t mean that cleaning tasks aren’t being carried out as well or as often; rather, the crux of the idea is that different tools and processes are being used, ones that are more sustainable. It’s been on the agenda for some time now, but an inevitable result of a year like 2020 is that the industry’s thinking shifts more to long-term viability. The more widely sustainability is a point of focus and discussion, the more it can be embraced.

Infrastructure investment tops Vancouver survey

Critical infrastructure investment was identified by the vast majority of Metro Vancouver residents as the key to help the economy recover from the COVID-19 pandemic, according to recent public opinion research.

While public health and affordability were the most prominent public concerns, an overwhelming majority of residents felt that investment in critical infrastructure must be part of B.C.’s and Canada’s plans to build back better from COVID-19.

In late summer 2020, Mustel Group surveyed 1,500 Canadians (300 from each of the five Metro Vancouver sub-regions) to better understand public concerns and attitudes toward Metro Vancouver’s services and infrastructure.

Fully 81 per cent agreed that infrastructure investment is an effective way to stimulate the economy, and 85 per cent agreed that senior governments should provide additional funding for local infrastructure projects. Projects related to drinking water, wastewater treatment and housing garnered the most support.

“Infrastructure investment is a way to stimulate the economy that also improves quality of life, helps protect sensitive ecosystems and makes the region more resilient to climate change. Boosting the local economy through infrastructure investments will create thousands of well-paying, family supporting long-term jobs and help meet the service needs of a growing population,” said Sav Dhaliwal, chair of the Metro Vancouver board of directors.

Representing over half of the province’s population, GDP and jobs, the Metro Vancouver region is the economic engine of the province and is uniquely positioned to drive economic recovery through infrastructure investment.

Metro Vancouver is planning for more than $6 billion in infrastructure projects over the next five years including upgrades and replacement of infrastructure for drinking water and wastewater treatment, as well as renewable energy projects, park land enhancements and affordable housing developments.

“Infrastructure investment needs to be part of B.C.’s and Canada’s plans to build back better from COVID-19. Our communities depend on it,” said chair Dhaliwal, “Through its provision of services that underlie the livability of the region, Metro Vancouver is uniquely positioned to lead the long-term regional and provincial recovery once the worst of the pandemic is behind us.”

CAPREIT acquires two Ottawa rental properties

CAPREIT announced it has waived conditions and will acquire two Ottawa rental properties for $95.5 million. Consisting of 380 suites, residential occupancy in the portfolio currently stands at 98.7 per cent.

Closing of the transaction is anticipated on or before November 30, 2020.

The first property, a 50-suite apartment building located at 141 Augusta Street, in downtown Ottawa, is a short walk from the historic Byward Market, Rideau Centre, and other local shopping. The apartment is also situated close to schools and the University of Ottawa.

The building is described as in good condition, with the potential to add further value under CAPREIT’s capital expenditure program.

The second property, known as Surrey Place & Hunter’s Point, includes 330 three- and four-bedroom townhomes ideal for families. Located in the popular Gloucester neighbourhood of Ottawa, residents are close to green space, retail shopping, schools, and universities. The townhome units include spacious floorplans with backyards, as well as a communal swimming pool and playground. The property is also in excellent condition and stands to realize incremental value under CAPREIT’s management.

“These Ottawa acquisitions are an excellent example of our asset allocation strategy to target mid-tier residential properties in strong Canadian rental markets where our experience will generate increased value for our Unitholders over the long term,” commented Mark Kenney, President and CEO.

More information about the two Ottawa rental properties and other CAPREIT news can be found at: www.capreit.com

How a newly expanded CAT will impact condos

On October 1st 2020, the Condominium Authority Tribunal of Ontario (the CAT) expanded its jurisdiction to include disputes about pets, vehicles, parking, and storage (“PVPS”) issues, including whether a condominium can charge back a unit owner for such PVPS issues. Previously, the CAT could only hear disputes regarding condominium records requests and record-keeping.

This expansion of the CAT’s jurisdiction into PVPS issues should be noted by condominium corporation boards and managers alike, since this will drastically affect how a condominium should consider enforcing against PVPS issues post-October 1st 2020.

Condominiums are now no longer permitted to enforce against PVPS issues in the Ontario Superior Court of Justice – all PVPS enforcement disputes must be brought to the online CAT portal instead, whether by the condominium corporation trying to enforce against a unit owner (e.g. a unit owner who allows his pet to defecate all over the common elements) or by a unit owner against their condominium corporation (e.g. a unit owner who wants to park his Sea-Doo in a parking space but the condo’s rules do not permit him to do so).

To date, the CAT has only very rarely awarded legal costs to a successful party; Rule 46.1 of the CAT’s Rules of Practice explicitly stipulates that legal costs are not to be awarded “unless there are exceptional reasons”. This is vastly different from the “usual” rules for cost recovery in the Superior Court; the Superior Court has repeatedly held that legal costs should normally be awarded to the successful litigant, and has even held that in condominium litigation, the other “innocent” owners of a non-profit condominium corporation should not be forced to bear the legal costs of having to enforce against a violating unit owner.

Yet at the CAT, even if a condominium corporation is successful in its defence against a unit owner’s improper request for records, the CAT has refused to award the condominium with any of its legal costs. The CAT has also refused to award legal costs for a unit owner who was successful in the CAT Stage 3 Adjudication and proved that they were entitled to the condominium’s records after all.

So now, condominiums must think very carefully about the pros/cons and risks/benefits to enforcing against a PVPS violation. Charging back the condominium’s $40 cleanup fee for cleaning up the owner’s pet defecation may ultimately result in the condominium having to spend many times that amount of money in legal fees, defending itself against a CAT Application that the unit owner brings to the online tribunal.

Many condominium boards and managers may ultimately choose to simply refrain from enforcing against any PVPS issues whatsoever, due to the costly risks involved. Without proper enforcement of the community’s declaration, rules, and bylaws though, “chaos will result” as the Superior Court once put it.

However, there are three exceptions listed under Section 1(3) of O. Reg. 179/17 (the “CAT Regulation”) made under the Condominium Act, 1998, S.O. 1998, c. 19 (the “Act”). Namely:

1. If the PVPS dispute involves a Section 98 Agreement (i.e. a written agreement regarding an owner’s modification of the common elements), the dispute would still go to private mediation/arbitration under Section 132 of the Act.

2. If the PVPS dispute involves an Electric Vehicle Charging System Agreement (i.e. a written agreement under Section 24.6 of the General Regulation to the Act), the dispute would still go to private mediation/arbitration under Section 24.7 of the General Regulation.

3. If the PVPS dispute involves Section 117 of the Act, the dispute would still go to the Ontario Superior Court of Justice under Section 134 of the Act.

This third exception will likely become very important to condominiums, as they try to look for an “escape hatch” that will allow the PVPS enforcement dispute to stay outside of the CAT’s jurisdiction (where legal costs are very unlikely to be awarded) and remain in the Superior Court instead (where there’s the possibility of 100 per cent legal costs being awarded to the condominium).

For example, if a unit owner has a barking pet dog that is causing a nuisance to others which is in violation of the condominium’s declaration, bylaws, or rules, then the condominium will likely have to bring an online Application to the CAT to enforce against same. However, if that barking dog also poses a likely threat of personal injury to others, like biting individuals on the common elements, then the condominium could argue that the PVPS dispute is outside of the CAT’s jurisdiction since Section 117 of the Act is triggered as well.

Of course, all of this could be solved if the CAT decides in a PVPS dispute that the indemnity clauses in a condominium’s declaration can constitute an “exceptional reason” to award legal costs to a condominium corporation who is entirely successful in enforcing against a unit owner’s PVPS violation. All of this could be proactively solved by the Condominium Authority of Ontario (the CAO), if the CAO’s board of directors amended the CAT’s restrictive Rules of Practice to state that legal costs should normally be awarded to the successful party – whether it be a successful condominium corporation or a successful unit owner.

Either way though, something must be done, before condominium communities across Ontario descend into condo “chaos” due to boards and managers refraining from enforcing any of their condominium’s governing documents in PVPS cases.

Victor Yee is a condominium lawyer and litigator at Elia Associates, a law firm that specializes in condominium law. Victor has successfully represented clients at all levels of court in Ontario, in various tribunals throughout the province (including the CAT), and in condominium-related mediations and arbitrations. He can be reached via email at [email protected].

Developer avoids liability after cancelling condo

The recent Ontario court decision in Ritchie v Castlepoint Greybrook Sterling Inc. is very good news for Ontario condo developers who must cancel their projects prior to construction.

In granting judgment, Justice Perell dismissed a proposed class action brought on behalf of purchasers of 179 units in a condominium project. The project had been terminated by its developer and the purchasers’ deposits were refunded with interest prior to construction. The purchasers of the pre-construction units sued for damages of over $10 million representing the increased market value in their units following entry into their purchase agreements.
The project was terminated because the developer said that it was unable to comply with the contractual condition that it obtain financing by December 28, 2018. The purchase agreements went on to state that in the event of termination for failure to satisfy the conditions, the purchasers would receive back their deposits with interest.

In its letter to purchasers giving notice of termination, the developer stated that “we will not be in a position to obtain the necessary municipal approvals and permits required to build Museum FLTS in the foreseeable future. As such and with the passage of time, the now untenable project timetable has rendered the project commercially un-financeable.” Castlepoint’s evidence in court was that rising construction costs made the condo financially unviable, as a project projected to generate negative returns would not qualify for financing.

Each purchase agreement contained an exculpatory clause—also called an “exclusion clause”— which stated that if the agreement was terminated, the developer would not be liable for any damages resulting from the termination of the agreement.

The purchasers disputed the enforceability of this clause and sought damages. Their primary position was that the developer had not taken all reasonable steps to advance the project and that the developer had therefore breached its duty to perform its contractual obligations in good faith. Thus, it would be improper to permit the developer to use the exclusion clause to avoid its duty of good faith.

Once challenged, exclusion clauses are enforceable only if they pass a multi-stage review by the court, which includes considering whether the clause was “unconscionable” at the time it was made, or whether its enforcement would contravene public policy. In Ritchie, the court held that the exclusion clause applied to limit the developer’s liability, regardless of whether the developer had acted in good faith—no actual finding was made as to good faith.

Further, the clause was found not to be unconscionable and did not contravene public policy. The court held that where developers breach their obligations to take reasonable steps on a project, the purchasers’ remedy may be limited to a right to recover their deposits with interest and not a claim for damages. In the court’s view, this was a fair and reasonable remedy. As a result, the developer’s motion to dismiss the class action was granted. The purchasers are now appealing.

This decision will have significant implications for both condo developers and purchasers. While the purchasers claimed that a failure to act in good faith should nullify the exclusion clause, the court’s decision means that a failure to act in good faith does not limit or restrict the exclusion clause’s application. Regardless of whether the developer was actually entitled to rely on the failure to obtain financing, the exclusion clause applies to limit damages.
Developers will take great comfort from this decision, knowing that the decision and reasons for the cancellation of a project will not be subject to court review, provided the agreements of purchase and sale contain an exclusion clause and provided the Ritchie case is upheld on appeal.

There is considerable caselaw on the duty of good faith performance in contractual dealings. The Ontario Court of Appeal ruled in the 1985 case of Greenberg v Meffert that where a contractual condition is within the sole discretion of one party, the discretion must be exercised honestly, reasonably and in good faith. The Greenberg case was not discussed in Ritchie which now effectively limits the application of the Greenberg doctrine because an exclusion clause can trump or limit the consequences of the bad faith exercise of a sole discretion.

As the purchasers’ only remedy for a bad faith breach of their agreement is the return of their deposits with interest, the exclusion clause outweighs or nullifies a developer’s contractual obligation to exercise its discretion in good faith, essentially rendering this obligation virtually meaningless.

Finally, exclusion clauses will now operate to provide considerable protection against class actions by purchasers, which pose a substantial threat to developers when terminating condo projects. As the purchasers have appealed this decision, the decision of the Ontario Court of Appeal will be of great significance for sellers and buyers in the condo market.

David Taub is a partner at Robins Appleby LLP. He has extensive experience in business litigation where he represents developers and builders, lenders, banks, insurance companies, entrepreneurial developers and builders, manufacturers, and commercial landlords. [email protected]

CERS applications to be accepted as of Nov. 23

Legislation to enable the Canada Emergency Rent Subsidy (CERS) received parliamentary approval late last week and an online application portal was expected to be operational for Nov. 23. In a Friday afternoon address, Prime Minister Justin Trudeau thanked the opposition parties for their cooperation in passing the Act, which will also extend the Canada Emergency Wage Subsidy (CEWS) until June 2021.

“Doing the things that protect our health are actually the best things to do to protect our economy,” he asserted. “Going into lockdown and supporting businesses while we’re in that lockdown is a better way of ensuring their success in a few months, in a few years, than trying to tough through a virus that is running around unchecked.”

The new direct relief program for businesses experiencing COVID-19-related financial strains becomes available just as the Ontario government imposes operating restrictions on non-essential businesses in Toronto, Mississauga and Brampton. This follows similar measures the Manitoba government put in place last week.

Under CERS, businesses faced with extra impediments due to public health protocols may be able to qualify for coverage of up to 90 per cent of their monthly rent or mortgage costs. The standard CERS program covers a maximum of 65 per cent of those costs, with payouts awarded on a sliding scale from there depending on qualifying factors.

The Ontario government is also replenishing its fund providing partial rebates of property tax and utility costs. It was established as a $300-million pot in October to assist designated businesses — including bars, restaurants, indoor fitness facilities and other cultural, leisure and hospitality venues — in regions where business operations are subject to stricter pandemic-related controls. Another $300 million has now been injected.

“Ontario will work with the federal government to ensure these supports for businesses in COVID-19 hotspots are available in the most straightforward and seamless way possible by integrating these rebates with the federal Canada Emergency Rent Subsidy (CERS) program,” a Nov. 20 Ontario government release states. However, that prospective recipients will have to apply separately through the provincial government’s online portal.

Interior design trends in 2020 and beyond

When it comes to predicting design trends for 2020 and beyond, little did we know that we would have to take into consideration the current pandemic. When designing common spaces in condominiums, designers and architects are more adept at finding forward-thinking design solutions with the health, safety and well-being of residents in mind. This is particularly true in multi-residential refurbishment projects, as we reinvent amenity spaces, including lobbies, party rooms, lounge areas and mailrooms.

Bringing a fresh sensibility to this process, we recognize that the building materials we use are key. From alloys to metal and glass to non-porous and non-absorbent surfaces, choices of materials and design are not just aesthetically fashionable but are precautionary measures for better infection control. Taking cue from hospital design, we can more easily facilitate cleaning and wellness protocols by avoiding overly intricate designs in high-touch surfaces, like handles, buttons and railings. We are finding a new balance between bold design statements and practical restraints.

A flat, smooth façade makes it easier to clean and disinfect. Cambria’s new 2020 collection of quartz surfaces, including the Big Sur Mist and Sanibel Shoreline designs, are perfect examples. An even bigger bonus is that they’re produced from pre-consumer recycled content as certified by SCS Global Services. As designers, we can feel good about sourcing such products as they meet our design requirements and are environmentally-friendly. We will continue to see large format quartz and porcelain slabs being used for wall cladding, fireplace cladding, as well as vinyl wallpaper, since both are wipeable and easy to sanitize.

Architectural details are also being simplified with fewer horizontal surfaces – particularly ledges and complex baseboards. Instead, we are seeing wood being used to draw the eye vertically through panelling and millwork. The streamline profile of organically-derived materials gives spaces a more heightened appearance, along with a deeper sense of connection to nature. From Scandinavian inspirations, light woods will make a popular comeback, especially in modern settings.

Colour will play a big part in our interiors, as opting for happy and bright tones can revitalize the spirit of a home. There doesn’t have to be a lot of colour, but some contrast will elevate the interiors to another level. Quieter background colours will be balanced with bursts of vibrant hues, especially in lobbies and party rooms. As colour trends evolve into 2021, selecting colours that enliven a space is truly important in uplifting our mental states and helping us to move forward in our “new normalcy.”

While many are escaping to the great outdoors as a source of tranquility and calm, there are also ways to bring a sense of peace and harmony to the indoors. Decorating with live plants rather than faux will strengthen the human-nature connection and has the added perk of purifying our air supplies.

Our interior spaces are so important for our well-being and for the prevention of disease. With this in mind, Kravet is doing their part with their bleach cleanable fabrics, such as Crypton, Stakleen, Inside Out, Silicone and Extreme Performance. These fabrics are typically used in healthcare environments; however, they are contract-viable and should be considered for upholstery and window treatments in residential settings too. Electric curtain track systems for drapery are also a great idea to prevent people from touching the fabric panels. They can be operated from smartphones, tablets or remote controls.

As we embrace the current situation, it makes us more aware of how we are connected, how we interact with one another and when we must be mindful of another person’s space. Subtle visual cues, such as a pattern on a floor or directional stickers, can make all the difference in encouraging residents to walk in a certain path. Furthermore, creating safe spaces where residents can safely pick up and drop off packages and other materials is imperative, as online shopping has skyrocketed during this time.

Lastly, with more people working from home, co-working spaces in condominiums have become vital, coveted spaces. Mood-lifting use of colour, unexpected patterns, modular furniture and task lighting are all considerations when designing these coherent, focused atmospheres. Condominium amenities typically improve quality of life and provide a lifestyle and sense of community to its residents. Now, equally regarded is the health and safety of its owners. As designers and architects broaden and shape these spaces, we are encouraged to think beyond the standard and find unconventional materials and incorporate them in the condominium’s aesthetic lexicon.

Darlene Janeiro is principal of Darlene Janeiro Design Group Inc. She specializes in condominium refurbishment projects, with more than 15 years of experience in the design industry. Her entrepreneurial leadership style and extensive knowledge of home décor and design trends is paramount to serve her impressive roster of residential and commercial clientele. darlenejaneirodesign.com