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Edmonton’s Stantec Tower topped off

Edmonton’s Stantec Tower was topped-off in November, officially making it the tallest Canadian tower outside of Toronto at 251 metres.

Developed through a joint venture between Katz Group and ONE Properties, the Stantec Tower stands 66 storeys and will include both residential and commercial space. It is part of an Edmonton development zone that’s become known as the ICE District

The commercial level of Stantec Tower was topped off one year ago and will house 29 floors of commercial workspace for Stantec, Dentons Canada LLP, DLA Piper, PwC Canada, and more. Stantec has completed consolidating 1,500 of its Edmonton-based employees into its new global headquarters, floors 3-20, in Stantec Tower. Stantec Tower’s fourth-floor balcony, overlooking the future ICE District Plaza, will be open to the public during various times of the year.

Stantec Tower will also offer 483 premium condominium suites as well as 20,000 square feet of indoor and outdoor premium amenity space. Expected to be completed in fall 2019, SKY Residences at ICE District offers 14 unique floor plans.

“Since inception, ICE District has been a vision that will put Edmonton on the world stage, and today’s topping off is symbolic of our city continuing to push the boundaries of progress,” said Glen Scott, president of Katz Group Real Estate. “To not only be the tallest tower outside of Toronto, but to also be a structure that emanates such grandeur and prestige, gives our city a source of pride, and puts us on the map in the architectural world.”

Stantec provided full architecture and engineering services for Stantec Tower, which is targeting LEED Gold certification (exterior) and LEED Silver certification (interior), and FitWel certification.

“For our employees who worked on this project, as well as for our teams working in the tallest tower outside of Toronto, our iconic head office represents the energy and creativity of our company. We are so proud to be part of what is truly the transformation of the City of Edmonton,” said Gord Johnston, president and CEO, Stantec.

IFMA reaccredited to offer IACET CEUs

The International Facility Management Association (IFMA) has been reaccredited by the International Association for Continuing Education and Training (IACET) to offer IACET Continuing Education Units (CEUs). IACET Accredited Providers are the only organizations that are approved to offer IACET CEUs. The accreditation period is extended for five years, and includes all programs offered or created during that time. IFMA was originally accredited as a provider IACET CEUs in June 2008.

“We are pleased to reaccredit IFMA as an Accredited Provider,” said Peter Finn, president of IACET and the Director of Learning and Development for the Society of Women Engineers in Chicago, Illinois, in a press release. “IFMA joins nearly 500 organizations around the globe that have had their programs vetted by third-party experts in continuing education thereby ensuring the highest possible standards are met.”

IFMA’s CEU programming for facility management (FM) professionals is built around 11 core competency areas that were selected following an in-depth global job task analysis. These topics include leadership and strategy, finance and business, project management, operations and maintenance, sustainability, real estate, occupancy and human factors, performance and quality, facility information and technology management, risk management and communication.

In order to achieve Accredited Provider accreditation, IFMA completed an application process that included a review by an IACET site visitor, and successfully demonstrated adherence to the ANSI/IACET 1-2018 Standard addressing the design, development, administration and evaluation of its programs. IFMA has pledged continued compliance with the standard and is recognized as offering the highest quality continuing education and training programs.

The effects of tariffs on the Canadian cleaning industry

Tariffs are taxes or import duties imposed on items imported from one country to another. Sometimes tariffs are nominal – around five per cent of the producing country’s sales price – and in other cases, the tariffs are much higher, in the range of 15 or even 25 per cent.

This happens when one country is trying to discourage another country from underselling domestic manufacturers – the goal may be to change another country’s behaviour. This appears to be what is happening right now between the U.S. and China. The big question for many in the professional cleaning industry is how much these tariffs might impact the cleaning industry in Canada.

While good can come from tariffs, they can also cause harm. This can happen for one or more of the following reasons:

  • The tariffs raise the costs of goods and services.
  • They expand to more and more products or product components.
  • They last too long.
  • They negatively impact related industries not the original target of the tariffs.

This last point is critical, as it is the most likely outcome for the Canadian professional cleaning industry. Currently, there are no specific tariffs on cleaning-related products by either the U.S. or Canada. However, there are tariffs on some of the components, ingredients, and finished products imported from the U.S., and distributed in Canada, and these should be of concern to Canadians working in the professional cleaning industry.

In a press release ISSA,  the worldwide cleaning industry association, opposed the recently proposed tariffs, that would affect, among other things, intermediate component parts or ingredients used by U.S.-based manufacturers in the production of finished goods such as mops, buckets, brushes, janitorial carts, and cleaning product formulations.

Tariffs at Work

Here is how tariffs can impact the Canadian cleaning industry. Let’s say a U.S. jansan manufacturer of carpet extractors has its equipment made in China. This is referred to as “contract manufacturing” or “contract branding.”

Consider a 25 per cent tariff is imposed on those extractors. If the machine had previously retailed for $5,000, tacking on the tariff charge will bring that amount up to $6,250. That is a significant price differential.

To handle the problem, the U.S. jansan manufacturer and the Canadian distributors have several options:

  1. The U.S. manufacturer and Canadian distributors could pass on the added costs directly to the end customer.
  2. The Chinese contract manufacturer could absorb the costs, reducing its profit margin.
  3. The U.S. manufacturer could absorb the costs, reducing its profit margin.
  4. The Canadian distributor could absorb the costs, reducing its profit margin.
  5. A “share the pain” scenario could be created. The U.S. manufacturer and the Canadian distributor absorb some of the extra costs, while some costs are passed on to the end customer.
  6. The U.S. manufacturer could look for ways around the tariff. For instance, exporting the extractors to a third country instead of directly to the U.S. could circumvent the tariff. This approach works if there are no tariffs on extractors coming from the third-party nation.
  7. The U.S. manufacturer could look for a new contract manufacturer in a country in which there are no tariffs.
  8. The U.S. manufacturer could move manufacturing of the equipment to the U.S. or to Canada.

Because the costs of building and operating a new manufacturing plant can be considerable, companies may determine it makes more economic sense to pay the tariff. As a result, one of the other scenarios just discussed will likely play out.

Addressing Future Tariffs

When a tariff situation happens quickly, it catches manufacturers, distributors, and end customers off guard. They will likely have no choice but to follow one or more of the scenarios mentioned earlier. But, over the long term, what can Canadian distributors and end customers do?

Canadian distributors, unfortunately, may be in a very challenging situation. Smaller distributors often purchase equipment from larger distributors. If the larger distributor passes on additional costs to the smaller distributor, the smaller distributors may not be able to absorb the costs. So, they pass them on to the end customer. By doing so, however, they may be “priced out” of the market. The end customer will look elsewhere for brands that are less costly or not impacted directly or indirectly by tariffs.

This situation can also cascade throughout the Canadian jansan distribution industry, impacting both large and small distributors.

One source of relief is for small, medium, and even large distributors to join membership groups or become part of a distribution, sales, and marketing organization. Representing many members, such organizations often can negotiate from a position of strength far more effectively than individual distributors. Luckily for distributors, membership organizations do exist and they can help alleviate the stress of these tariffs, which can benefit the entire cleaning industry.

Michael Wilson is vice president of marketing for AFFLINK, a global leader in supply chain optimization. He can be reached through his company website at www.AFFLINK.com

Valuing the Human Factor in Disaster Restoration

The rise of artificial intelligence (AI) and automation may threaten to replace human talent in many industries, but the opposite is true in the field of disaster restoration. True, the tools might be more sophisticated, but when it comes to helping clients and communities recover from an emergency, nothing replaces the “human touch”.

“Empathy is something you can’t code, and it’s as critical to disaster restoration as any technology,” says Margo Malowney, Vice President of Marketing and Communications with FirstOnSite Restoration. “Being successful in this business takes a special kind of individual – one who understand what clients are going through and are driven to help them recover.”

disaster restorationFirstOnSite Restoration knows the value of human talent well. From the Fort McMurray wildfires to the Alberta floods, and Ontario whiteouts to Quebec ice storms, its success on the front lines of Canadians disasters has hinged on its ability to build teams that can not only handle the job but help guide clients through extremely stressful times.

“It’s not simply about renovation or construction. We meet people in times of crisis; people who have had their lives turned upside down and need someone who can guide the way and manage that stress,” says Malowney. “Therefore, we’re always looking for the types of people who not only handle the stresses of the job, but can bring human skills, passion and a desire to help people in peril, no matter the situation.”

And those situations are adding up. According to the Insurance Bureau of Canada, property claims as a percentage of total claims have risen significantly over the last decade from 24 to 35 per cent, and in 2017, catastrophic losses in Canada accounted for approximately $1.2 billion.

As both natural disasters and man-made emergencies continue to climb, the demand for new talent in the restoration industry is rising. As such, FirstOnSite has launched broad hiring campaigns across the country (especially the GTA) in search of new team members that can counsel clients through all phases of disaster recovery – from the initial business continuity and emergency response planning stages to staff training and the critical minutes, hours and days after an event occurs.

disaster restorationNo doubt, the job can be very challenging and stressful. That’s why a vital part of FirstOnSite’s recruitment approach is ensuring potential recruits know what they’re getting into.

“We try to communicate with our recruits early and transparently in order to find the right kinds of people – the kind who are inspired by knowing they make a difference,” adds Malowney.

AI can’t replicate empathy. Automation won’t replace a trusted partner. And while these tools are critical to enhancing the ways and means by which FirstOnSite does its job, Malowney adds they will always lack an essential “human” touch: “For us, exceptional customer experience is when a customer felt that we cared. People need that human factor – to know they’re being heard by real people – which is why we continue to make that the main driver of our company and a core focus when we look for new talent.”

FirstOnSite Restoration is a leading Canadian-based disaster restoration company providing remediation, restoration and reconstruction services nationwide, as well as for the US large loss and commercial market. For more information, visit www.firstonsite.ca.

MUJI to reopen flagship store in downtown Toronto

Japanese retailer, MUJI, will be reopening its original Toronto location on Dundas Street on November 23, its first flagship store in Eastern Canada.

Following the renovations this location will become the largest MUJI store outside of Asia, spanning more than 19,000 square feet of retail space spread over two floors. The previous store occupied just 5,658 square feet.

“During these four years since we expanded to Canada, we opened seven additional stores and gradually increased our range of products and services,” said Toru Akita, president of MUJI Canada. “By allowing us to reach out to more people and to further convey our philosophy, the Atrium flagship store will open a new chapter for MUJI in Canada. Through interactive events, innovative projects, and new partnerships, we wish to connect and evolve together with local communities and contribute to the creation of a better quality of life.”

This location will carry MUJI Canada’s full range of merchandise of more than 4,000 items — including household goods, apparel, and food. MUJI Atrium will be the only location in Eastern Canada to carry books, made-to-order curtains and rugs, the MUJI Labo collection, maternity wear, and a brand new activewear collection.

MUJI was founded in Japan in 1980 and has five stores in Ontario and three stores in B.C., including its first Canadian flagship in Vancouver.

Low-income seniors housing opens in Saskatchewan

The Government of Canada and the Province of Saskatchewan, along with the City of Humboldt and Stewart Properties, announced the completion of a new low-income seniors housing community located in Humboldt. Called the Elizabeth Retirement Community, the project was made possible by a joint investment of more than $1 million from the federal and provincial governments.

The innovative mixed-use project provides lower income seniors with additional accessibility and support services at an affordable rate as it bridges the cost between market senior’s units and social housing. In total, the new community consists of 40 units: 23 independent-living suites, three studio suites, one hospitality/respite suite and 13 assisted-living suites.

“Our Government is committed to caring for our aging citizens,” said the Hon. Ralph Goodale, Minister of Public Safety and Emergency Preparedness. “We are pleased to announce the official opening of The Elizabeth Retirement Community, an innovative, newly refreshed and rebuilt affordable housing development which will enable low-income seniors to age independently within their own community.”

The Government of Canada is currently rolling out its National Housing Strategy (NHS)—a 10-year, $40 billion plan that will create 100,000 new housing units and lift 530,000 families out of housing need, as well as repair and renew more than 300,000 housing units and reduce chronic homelessness by 50 percent.

This investment in low-income seniors housing supports the Saskatchewan Housing Strategy, Disability Strategy and Poverty Reduction Strategy goal of ensuring Saskatchewan people have affordable, safe, secure and stable housing.

“The Elizabeth will give seniors the stability, comfort, and safety they need and enable them to remain close to family and friends,” said the Hon. Paul Merriman, Minister of Social Services and Minister Responsible for SHC. “We are pleased to work with the Government of Canada, the City of Humboldt and Stewart Properties to meet that need here in Humboldt. This unique project provides safe and affordable housing to seniors in need. Our goal is to continue to help those in greatest housing need and keep Saskatchewan strong.”

Elad Canada to acquire Agellan Commercial REIT

Elad Canada, has entered into an agreement to acquire the full portfolio of Agellan Commercial Real Estate Investment Trust distributed throughout major urban cities in the United States for approximately $680-million.

“The transaction is an important strategic step for Elad Canada, which will solidify its operations in the income-producing properties segment and will generate significant additional cash flow,” said Elad Canada CEO Rafael Lazer.

The real estate development and asset management company is the largest unitholder of the REIT holding approximately 19 per cent of the units. About 87 per cent of REIT’s assets are classified as light industrial properties which include flex and showroom spaces, the remainder of the portfolio are office buildings. The occupancy rate for properties is about 94 per cent on average.

The transaction is expected to be completed in February 2019.

Building the Global Reputation of Facility Management

The need for quality facility management is pervasive with aspects that touch all our lives – both personal and professional and yet the biggest challenge the industry faces is a lack of recognition. A good facility manager is unseen – working to ensure the facility is running at full efficiency but prepared for something to go wrong. From cyber-attacks to flooding, emergency preparedness is the hallmark of a successful facility manager, but the more integrated the facility manager’s role becomes in the strategic operation of an organization, the better the results.

This is where the Royal Institution of Chartered Surveyors (RICS) comes in. As a global professional body that sets standards, regulates and trains professionals working in the built environment from construction to property management, RICS is in the unique position to bring global perspectives to the industry.

“As a third party, RICS is able to bring associations and organizations together to build a global understanding of what FM is,” explains Steve Morris, Head of the FM Sector for RICS. “We want to show the benefit of bringing the FM sector into the boardroom for a seat at the table – highlighting the added productivity that could be gained as FM becomes a part of decision-making. This approach started a few years ago with our collaboration agreement with IFMA and we are now starting to see the results of this collaboration success.”

Recognition is building for the need to have qualified property management to ensure real estate assets are protected and investments are sound. Adopting the common use of standards, training and terminology will build leadership in the FM sector as those holding investment portfolios welcome qualified professionals into the boardroom. Once in the boardroom, facility managers can ensure best practices are built into the design and management of assets at every level. 

“FM touches every point of our lives and working activity in one form or other. It impacts how we go about our lives on a day-to-day basis with an aim to ensure there is as little disruption as possible. And while a big part of this is delivered by facility managers, it also involves many who have not yet realized they are delivering FM,” says Morris.

IFMA and RICS are collaborating on training, events and implementing a system of strategic thinking in the delivery of facility management, which is best disseminated from the boardroom. In 2018, we released the Strategic FM Framework, professional guidance for all levels in facility management from novice to professional. It introduces a common approach for strategic leadership and outlines the role and scope of work.

Focus on facility management

FM has arguably the longest list of competencies and scope of work within its responsibilities than any other industry. It is a profession that requires a holistic implementation with strategy, tactical management and operational delivery aspects. Weakness in any of the crucial FM skills risks impacting the building system as a whole.

Good facility management requires a solid understanding of communications, finance, sustainability, business continuity and more. Morris explains, “FM can deliver best value when implemented as a core consideration from the concept design stage of any built environment project. It provides the best outcomes and return of investment when taking into consideration the full property lifecycle.”

A facility manager following the Strategic FM Framework manages a building as a working system that includes the physical aspects and human aspects of the facility. This guidance is for all FM skill levels, from those who are not currently in the FM industry but who either manage their own facilities, or for those who manage facilities for others to professional facility managers who deliver all FM services. It is a platform for all, it provides a common approach for all levels for strategic leadership and understanding of the role and the scope of work of facility management.

First and foremost, a facility manager is a project manager. Often the FM delivers a quality service, within budget and on time because facility managers have a diverse range of skills and work hard to live up to high expectations. Despite the quiet success of the facility manager, RICS is working with IFMA to bring these skills into the spotlight for some well-deserved recognition. 

As an established global professional body in its 150th year, RICS provides a reputable designation that brings recognition to qualified professionals who have demonstrated competency and leadership in their field. An RICS designation is known globally and professionals who have achieved an RICS status are sought after by international corporations. 

Supporting and providing a platform for qualified facility managers comes with benefits that we will all gladly reap. Find out how you can elevate your career through RICS.

Stay informed by signing up for news updates from RICS.

Scott Construction earns AON Best Employer Award

Scott Construction Group has been recognized with a Platinum AON Best Small & Medium Employer Award for 2019. The annual award, given this year to only 16 Canadian companies, comes as a result of rigorous review of the company’s employee engagement completed by AON, a premier Best Employers program that measures and recognizes leading employers across Canada and worldwide, based on more than 700,000 employees across 500 Canadian Organizations.

Scott Construction achieved Platinum status for 2019 for scoring in the top quartile in the areas of employee engagement, leadership, performance culture, and employment brand. The company will receive their award at the AON Best Employers Gala in Toronto, November 21, 2018.

“We are very grateful and encouraged to see that our ‘people first’ values are being recognized in this way. This achievement reflects our ongoing efforts to ensure that Scott Construction is a preferred employer, with a fantastic culture, and is widely acknowledged as a highly engaging place to work by our staff. We have worked diligently to implement industry-leading programs within our organization, such as our Mental Health Committee, to ensure that we walk our talk every day and that our team knows their value is recognized and rewarded,” stated Darin Hughes, president at Scott Construction Group.

Under Hughes’ leadership, Scott Construction is nearing $500,000,000 in secured backlog in B.C. and Alberta construction projects in institutional, commercial, residential, clean energy, and special projects, with a rapidly growing staff nearing 100 employees operating out of Burnaby and Calgary headquarters.

AON’s managing director for Canada, Allan Shapira describes the AON Best Employer Program as “a significant achievement, earned only by setting the highest standards for workplace excellence. It takes commitment – from leaders, managers, and employees themselves – to create and maintain an engaged workplace, where leadership is effective and accountable, where the culture is performance-oriented, and where the entire organization does what it takes to be seen as an employer of choice. Recipients of the designation live up to this standard and are fully deserving of recognition.”

Global green building activity continues to rise

New commercial construction remains the biggest driver of global green building, according to the Dodge Data & Analytics World Green Building Trends 2018 SmartMarket Report. The recent industry research shows green building in 19 countries is poised for strong, rapid growth over the next three years.

The study was conducted in 86 countries and surveyed 2000 building professionals.

Nearly half of the survey respondents expect that the majority of their upcoming projects will be green buildings. Notably in markets like China and the United Arab Emirates.  Improving occupant health ranks first among social drivers for green building, followed by encouraging sustainable business practices and improved worker productivity.

“With more and more people demanding and expecting healthier places to live and work, more and more leaders around the globe are committing to green building, which is now a trillion-dollar industry,” said Mahesh Ramanujam, president, and CEO of the U.S. Green Building Council (USGBC). As the green building movement has grown, the savings associated with lowering operating costs continues to be a top benefit for owners. Nearly two-thirds of respondents expect to see building operating costs decrease by at least six per cent within the next 12 months, while more than 80 per cent expect this same rate of return in the next five years. As lowering operating costs and occupant health become more widely known and accepted, the value of green buildings increases as well. The percentage of owners reporting that new green buildings have an asset value more than 10 per cent greater than traditional buildings has nearly doubled since 2012. In addition, most architects and contractors recognize that building green creates a higher asset value.

Two-thirds of the survey participants report that using a rating system like LEED allows them to create a better performing building, and more than half of respondents believe that rating systems provide third-party verification that ensures buildings are running in a sustainable manner.

“For the last 25 years, LEED has helped transform building practices. It continues to push the top performers, but we know that we can’t leave the other 80-90 per cent of buildings behind. We need to get all buildings on a path to sustainability in order to raise the standard of living for all people around the world, regardless of their circumstances. And the results of this study show we are on the right path.”

However, more than 50 per cent of respondents from five countries (including the U.S.) say green retrofits are in the pipeline, compared to a 37 per cent global average – suggesting that existing buildings and operational benchmarking will provide significant opportunities for growth.

“The future of green building is focused on performance, but as the study shows, most of the time this practice can be limited in scope,” Ramanujam said. “There has been no increase in the use of metrics to track performance in the last three years, and now there is no excuse for it. It is not enough to demonstrate leadership at a point in time. We want all green buildings to continue to demonstrate leadership long after they are constructed and occupied. That is why USGBC has been laser-focused on bringing building performance benchmarking tools like Arc and LEED v4.1 to market: to make it easier for all projects to take strides toward improving the health and well-being of the people who occupy them every day.”

Additionally, the recent launch of LEED v4.1 offers projects yet another way to continue to drive performance on the path toward LEED certification. Today, there are more than 95,600 commercial projects participating in LEED across the globe, with 2.2 million square feet of building space becoming LEED-certified every day.

Construction Lending Q&A: Jeremy Wedgbury, First National

In our previous Q&A with First National Senior VP Jeremy Wedgbury, we turned a spotlight on apartment construction activity and the lending solutions therein. In the second part of that discussion, we turn to Jeremy once more to discuss current industry challenges and potential financial solutions.

How much have construction costs risen?

Anecdotally, I hear as much as 1% per month or 12% per annum recently, although this varies nationally.

Is this a problem facing apartment builders as well?

Construction cost escalation is a headwind for builders in all sectors. What we see with apartments, though, is that rental rates have increased – in some cases by 25 or 50 cents per square foot – so this helps to cover construction cost escalation. This isn’t true in all markets, though.

As a lender, do you advise builders on how to avoid issues like this?

The borrowers we deal with are very experienced. They understand inflationary input costs, have track records of building on time and budget, and have the financial means to write a cheque for any building cost escalation. Because they are doing a lot of construction, they also have substantial buying power over building products like doors and windows and trade services that helps them offset some of these increases.

Last year, you said it was a great time to be active in building apartments. Is this still true?

Yes, I would say it’s absolutely true for experienced developers. An experienced developer has a network of tradespeople with proven skills and craftsmanship, understands costs and inflationary factors, is able to apply effective countermeasures, and most fundamentally, chooses construction opportunities that make sense based on a deep understanding of local market trends and an appreciation of the need for liquidity. We’re 100% behind apartment builders who exhibit these characteristics and skills and have a track record of successful developments.

First National

Jeremy Wedgbury, Senior Vice President, Commercial Mortgages with First National.

How long do you think the good times will last?

Hard to say, but the fundamentals of demand and supply are very favourable right now, and despite new units coming on stream over the next couple of years, it won’t be enough to serve the demographic and population growth trends in Canada.

What about construction activity levels in other real estate asset classes?

From our perspective, the trends are positive in the office and industrial sectors and condo construction remains strong in major markets like Toronto and Vancouver. In retail, the rise of Internet shopping appears to have dampened activity as many tenants are now exploring business model alternatives to bricks and mortar stores.

Construction lending is often considered the riskiest form of commercial lending. How does First National manage its risks?

By working with experienced builders. We give priority to those clients who have been building for years, perhaps even decades. These are people who know what they’re doing and consequently, they tend to build larger projects with loan values of over $5 million, which is the market First National plays in.

So what is First National’s value proposition?

As a lender, our contribution starts with financial modelling and market research. We’ve developed sophisticated modelling tools that help us run different scenarios for our clients based on different amounts of equity in, different pro forma interest rates, and different financing scenarios, be it conventional or insured. We use one approach to model construction loans and another to model term loans and these tools help builders project their investment returns and the risks to those returns under different base cases. We also make considerable market research available to builders. And then, of course, when it comes to any CMHC program – Flex Financing included – we develop the application submission using our experience as a CMHC-approved lender.

How are you modelling interest rates today?

Interest rates are an important part of any commercial lending arrangement, and for a construction project, rate movements provide a special challenge because the building phase usually takes two to three years to complete. Trying to forecast what rates may look like in 2020 or 2021 is a pretty difficult exercise. What I can say is we model different scenarios for borrowers and try to give them the benefit of our insights into the bond market. For example, the yield curve has flattened this year, which is usually a precursor to economic disruption. However, it has also reduced the normal disincentive to select long-term financing over the shorter term. We believe that we make our borrowers stronger by sharing this kind of market intelligence proactively so that they can avoid issues down the road. It’s part of our “More Than a Lender” approach. We also offer the First National Rate Lock that can help borrowers lock in a term loan rate in advance of lease up.

Final thoughts?

For experienced builders who are focused on apartments, this is a unique point in the business and economic cycle. For First National, our objective is to help our clients capitalize on the most lucrative opportunities in the most advantageous, risk-managed way. In short, we’re open for more business.

For more information, visit https://www.firstnational.ca/home.

Cascades Casino Delta receives final approval

BC Lottery Corporation (BCLC) has approved a new gambling and entertainment facility in the City of Delta. Cascades Casino Delta, operated by Gateway Casinos & Entertainment Limited, will include a hotel, restaurants, meeting space and a casino with approximately 500 slot machines, 24 table games and up to 6 electronic table games.

The Cascades brand is built around the design inspiration of “Play”. The new property will be a full-service local entertainment destination with a casual ambiance, but with the scale and amenities associated with a big-city entertainment facility with exceptional customer service and attention to detail.  Gateway has successfully launched the Cascades brand in Langley, Kamloops and Penticton, BC.  The first Cascades Casino in Ontario has recently begun construction in Chatham-Kent.

“We look forward to bringing this state of-the-art entertainment destination to such a rapidly growing and dynamic community. Through our investment of $70 million in Delta we will bring up to 700 new jobs and careers to the area and significant economic spin-offs during the construction and beyond,” said Tony Santo, Gateway’s CEO.

BCLC’s approval follows extensive reviews of the market opportunity, business case, health impacts and municipal approval process to ensure that the project meets legislated requirements under the Gaming Control Act.

Design of the new Cascades Casino Delta reflects feedback from the public, as received through ongoing community-engagement events including stakeholder briefings, public presentations, information sessions and open houses.

Now that all necessary regulatory approvals have been received Gateway will turn their attention to the completion of all design works, site preparations and the commencement of construction pending the finalization of the land arrangements with the landowners.

Construction of the facility at the Delta Town & Country Inn site will begin in early 2019, with the casino expected to open mid-2020.

Built Green partnership brings WERS to Canada

Built Green Canada has partnered with the Green Builder Coalition to bring performance-based water efficiency to Canada through its third-party certification program: Water Efficiency Rating Score (WERS).

WERS is based on measurable parameters, along with a scoring scale of zero to 100, zero being the most desirable. Indoor water use considers the main plumbing fixtures of toilets, showers, lavatory and kitchen sinks, clothes washers and structural waste. Those who run the shower for a while before getting hot water are familiar with structural waste: it refers to the amount of water wasted before usable hot water arrives at the furthest hot-water using fixture.

Meanwhile, WERS includes the ability to account for all outdoor water use, as well as reuse via rainwater, greywater and blackwater catchment calculations. Depending on the verified filtration methods for rainwater and greywater, they can be used to offset indoor water use. Additionally, any remaining unused rainwater, greywater and/or blackwater (if applicable) can be credited to potential outdoor use.

“Industry and all orders of government increasingly are focused on the reduction of greenhouse gas emissions (GHGs) and in the residential building sector, the emphasis is on improving the energy performance of buildings,” says Built Green Canada’s chief executive officer Jenifer Christenson.

“While energy efficiency is an essential component of sustainable building practices—and our programs—we want to broaden the conversation and shine a light on a more balanced approach that also includes indoor air quality, waste management, and water conservation—some of the key areas of our programs. Despite Canada’s water endowment, we are not immune to water shortages and periods of drought. Moreover, reductions in water usage will save energy, further contributing to the decrease in GHGs.”

Built Green Canada recognizes the pressure on municipalities to supply water to households: managing water demand and financing, building and repairing water infrastructure is a priority. The reduction in water usage can help lessen a number of challenges, including water shortages and increased energy consumption to pump and treat water, pollutants in water bodies, and the expansion of water and wastewater infrastructure. A focus on water conservation helps reduce the load on civic infrastructure: a reduction that can result in a significant financial savings while supporting climate mitigation targets.

The WERS tool will be Canadianized in the coming months, verifier training will occur in the spring, and Built Green is encouraging trials through 2019 for its single family, renovations, and high density programs. Builders will earn points toward their BUILT GREEN home certification, while being able to understand the overall performance of their projects’ water use and make smart choices on the products they incorporate into their builds—and pass-along the associated benefits to their customers.

Ford announces rent control pull-back

As part of its newly announced “Housing Supply Action Plan,” the Ontario Government is proposing a strategy to increase the province’s rental housing supply through measures intended to bolster new development while protecting rent control for existing tenants.

According to the official press release, “The demand for housing in Ontario has risen rapidly in recent years, driven by strong population growth and low interest rates. However, the supply of housing has not kept pace, leading to higher prices and rents.”

Since 2017, purpose-built rental construction in the wake of the previous government’s “Fair Housing Plan” saw a marked decline as a result of punitive new policies, and the rental housing sector has been advocating for change ever since.

Ford’s position on Ontario’s strict rent control regime has been somewhat unclear, until today.

“Many people in Ontario face challenges in finding suitable, affordable rental accommodations, in part due to an extended period of under-building of rental units,” the statement said. “Since 1992, rental unit construction has not matched household formation. Approximately 20 per cent of Ontario households live in purpose-built rental housing. In 2017, the level of new rental construction would accommodate only 10 per cent of new Ontario households. If construction of rental units had kept pace with underlying demand, construction would have started on an additional 6,100 units in 2017.”

The new Housing Supply Action Plan, to be launched in the spring of 2019, proposes to put in place the following key measures:

  • Preserve rent control for existing tenants;
  • Encourage developers to build more rental housing by exempting new rental units from rent control;
  • Cancel the Development Charges Rebate Program, which it calls “expensive and ineffective,” estimating it will create a savings of approximately $100 million over four years.

“Rent control policies that weaken investment incentives and construction activity have played a role in limiting supply growth in purpose-built rental housing,” the document continued. “To address these challenges, the government will enact policies to increase the supply of housing across Ontario [while following through on] its commitment to preserve rent control for existing tenants.”

In a series of Tweets issued by REALPAC, the new plan appears to have won the industry’s endorsement. “REALPAC supports the Province of Ontario’s move to exempt new buildings from the unfair #rentcontrol regime. Housing providers appreciate this market based incentive.”

Confronting workplace harassment in condos

At least one industry executive thinks more needs to be done to address the harassment he says condo managers commonly confront while working in condo communities.

There may be legislative provisions to protect employees from abusive behaviour in the workplace, but condo managers in a toxic environment are unlikely to stick around at a site waiting for policies and procedures to unfold, said Bill Thompson, president of Malvern Condominium Property Management.

“There are so many jobs available that they don’t have to put up with it personally,” said Thompson. “Instead of addressing the situation, they walk away from it, and that’s why the situation keeps getting worse.”

By leaving the abusive behaviour unaddressed, that manager leaves to door open for the same thing to happen to their successor, he explained.

All parties in condo communities have a stake in stamping out harassment in the workplace. Compassionate reasons and legal obligations aside, condo corporations and condo management companies pay a price when there is a revolving door of condo managers. And prolonged exposure to on-the-job stressors can take a toll on the mental health of condo managers, which can have ripple effects in their personal lives.

Life under mandatory licensing

Thompson’s comments come as the condo management industry is adjusting to life under mandatory licensing and regulation of the profession. He observed that there has been some attrition of industry veterans as some opt to retire rather than satisfy new standards. At the same time, minimum qualifications and requirements for experience and education have also made it harder for would-be recruits to enter the profession and replenish the talent pool.

“You have a limited pool of managers and lots of business, so all of a sudden, the quality of management goes down, and all those people who don’t know how to hold their tongue have no patience, and they just come out,” said Thompson. “The harassment just comes out.”

He said he believes that condo managers are subjected to some form of abusive behaviour daily, although he allows that the most extreme cases are rarer. (There’s a difference between a person having a bad day and taking it out on a manager and harassment, which is defined as repeated unwelcome behaviour.)

Of course, condo managers have always faced the possibility of experiencing harassment in the workplace. Take, for example, a scenario in which a condo board director threatens the continued employment of a condo manager who refuses to do their bidding, said Thompson.

He said the protocol for addressing harassing behaviour can be complicated by the involvement of a condo director if the rest of the board is reluctant to hold him or her accountable. Thompson cited a case in which his condo management company saw its contract terminated after raising just such an issue with a board after it had cycled through several of its condo managers.

The costs of turnover

There may be financial costs that come with workplace harassment if it leads to turnover. Burnout and churn of condo managers can affect the bottom lines of both condo corporations and condo management companies, observed Mazen Fegali, a manager within Hays Canada’s property and architecture division.

“First, there are resources involved in searching for a new manager and getting them up to speed. That can be tens of thousands of dollars in time,” said Fegali. “Then, there’s the matter of contracts. If a property management firm was to lose a contract due to a poor-performing manager as a result of burnout or a state of constant churn, the cost could be immense.”

High turnover is the norm in the condo management industry. Fegali said it’s unusual to see tenures of longer than five years with any one company listed on a condo manager’s resume.

Sometimes condo managers leave companies because they’re looking for growth but their employer is reluctant to move them because the client condo corporation likes them so much, he said. Other times, condo managers leave a company because their employer acquires new clients and reassigns managers to sites outside of their preferred geographic areas.

If condo management companies want to minimize turnover, they need to balance both keeping their clients and employees happy, he said. In the case of a beloved condo manager looking to take on a new challenge, that could mean transitioning their replacement into the community.

But more than anything else, Fegali attributed burnout and churn to the fact that condo managers are overburdened with multiple sites.

“To break it down in terms of workload, that condo manager is going to three meetings a month, three AGM meetings a year, and it just doesn’t stop,” said Fegali. “That’s manager burnout.”

On-the-job stressors

Burnout is among the psychological health concerns that are likelier to occur when an employee is exposed to chronic stressors that leave him or her feeling helpless and powerless to control work demands or responsibilities, said Dr. Katy Kamkar, clinical psychologist at the Centre for Addiction and Mental Health (CAMH). Dr. Kamkar distinguishes between on-the-job stressors — which include the kind of abusive behaviour that professionals such as condo managers might encounter through the course of interactions with the public —  and organizational stressors — which include the type of workplace harassment that can occur within a company.

Since on-the-job stressors can have negative consequences for a person’s mental health, she said it’s important to recognize symptoms of distress. These symptoms can include difficulty focusing and making decisions, feeling anxious, depressed or fatigued, a reduced interest or pleasure in activities and low motivation or passion for work, as well as bad dreams and suicidal ideation.

“Especially if we feel it’s immensely difficult to cope with those symptoms, and they increase over time, it’s important to not only seek social support, and also talk about it with family, loved ones and trusted ones, but also to seek professional help,” said Dr. Kamkar.

She said professional help may be available through a company employee assistance program, organizations such as CAMH, or through a community psychologist or a referral from a family doctor.

Mental health issues that originate in the workplace can also spill over into other aspects of a person’s life, such as their relationships, Dr. Kamkar observed. What’s more, she said, on-the-job stressors can be compounded by certain events — take, for example, the legal proceedings that could arise from a condo manager reporting abusive behaviour in hopes of having it addressed through official channels.

As their name suggests, on-the-job stressors are sometimes unavoidable parts of a particular position. In light of this, Dr. Kamkar recommended that organizations provide employees who are exposed to these types of situations tools and training to cope with them.

“When it happens, how can they manage it to de-escalate the situation?” said Dr. Kamkar. “And then also, who can they turn to if they feel the impact on themselves?”

Documenting and reporting harassment

While employers have legal obligations to have harassment policies in place, the training condo managers receive for handling abusive behaviour on the job may be somewhat patchwork, as Thompson indicated it comes down to whatever their condo management company offers. He said key steps in addressing workplace harassment include documenting it and reporting it.

“Managers need to really understand that they are worth it, that they don’t have to put up with it,” said Thompson. “Report it to their company, and if their company’s a good company, they’re going to report it back to the board, and if it’s a good board, that board’s going to do something about it.”

Michelle Ervin is the editor of CondoBusiness.

REMI Network’s Barbara Carss wins Canadian Online Publishing Award

Barbara Carss, editor-in-chief at the REMI Network, won a Canadian Online Publishing Award last night in Toronto for three articles examining how new tax policies could affect commercial real estate.

Carss earned silver for Best Investigative Article or Series in the business category for features that looked at the impact of new U.S. tax rules, additional levies on residential properties in B.C., and a new formula for weighing passive income. This marks the second time is as many years that Carss has been individually recognized with a Canadian Online Publishing Award for her REMI Network reporting. Last year, her article Furor over MPAC multi-res cap rate predicted earned silver for Best Industry Feature.

“Barb is an exceptional journalist who is highly regarded for consistently delivering must-read stories for professionals in the commercial real estate industry,” said Kevin Brown, president of MediaEdge Communications Inc. “With her latest Canadian Online Publishing Award, Barb continues to exemplify with her work the kind of standard-setting industry news the REMI Network team strives to produce.”

In 2017, the REMI Network team won gold for Best Trade Media Web Site at the Canadian Online Publishing Awards, and in 2015 won silver for Best News Coverage in the business category. This year, the REMI Network was a finalist for Best Trade Media Web Site at the Canadian Online Publishing Awards, and editor Michelle Ervin’s article Will ‘ultra-high-rises’ cost more to maintain? was a finalist for Best Industry Feature.

Presented by Masthead Online, the Canadian Online Publishing Awards have celebrated excellence in online publishing for the past 10 years.

Plugging in to the benefits of energy storage

A dramatic rise in energy costs and strict sustainability mandates have been spurring business owners to explore innovative, energy-saving solutions for decades, thus launching the ‘cleantech’ industry to new heights. But just how viable are some of the ground-breaking methods we’re reading about today, and at what point should budget-minded, risk-adverse apartment owners feel confident enough to take the leap?

One of the biggest game-changers in the multi-residential sphere has been sub-metering, a system that allows landlords to regulate energy consumption by putting payment into the hands of tenants. This approach has not only prompted conservational behaviour, but when combined with HVAC upgrades, lighting retrofits and other building improvements, it has led to substantial savings for multi-res building owners in the realm of 30 per cent.

For those pursuing higher performance, additional cutbacks in consumption have come from the use of renewable energy sources, like solar and wind, but the lack of intelligent management systems to store and deploy surplus energy has inhibited these intermittent sources from readily gaining favour.

Enter behind-the-meter energy storage systems, a not-so-new technology that’s been making waves in the cleantech space. Simply put, energy storage is the process of capturing energy produced at one time to use at a later time. Business magnate Elon Musk has been popularizing this method since the launch of the Tesla electric car in 2003, and more recently, with the Powerwall “at-home” battery. But Musk isn’t the only one touting the merits of this renewable energy solution. As we head into 2019, developers and distributors worldwide are working toward its mainstream integration.

What’s changed is the advent of intelligent management software, enhanced regulatory measures and design improvements that have incrementally lowered the cost of systems, all things combined making market conditions for customer-located energy storage ripe. Today, commercial building owners who are seeking more control over their energy costs and increased reliability have begun to take notice.

Leading the way is Starlight Investments, a privately held Canadian real estate asset management company with more than 36,000 multi-residential units across North America. In August, Starlight announced it had partnered with Peak Power Inc., an energy storage service provider, to install up to 2350kW / 4700kWh of energy storage systems. Used to target Ontario peak demand charges at Bloor Islington Place in Toronto, the behind-the-meter battery systems reached commercial operation earlier this year and are on their way to generating a projected electricity bill savings up to 15 per cent.

“We are delighted to be one of the first commercial building owners in Canada to install behind-the-meter battery energy storage,” said Perry Rose, Executive Director, Procurement and Technical Services, Starlight Investments. “Innovative technology, such as energy storage and Peak Power’s software, are providing options to building owners for better ways to manage their day-to-day energy needs.”

The installation at Bloor Islington Place is one of six sites Peak Power installed using funding from the Sustainable Development Technology Canada Grant. SDTC is a foundation that supports Canadian research and development projects that harness clean, innovative technologies with viable, sustainable potential. Once complete, the six sites will be aggregated into a “Virtual Power Plant” to provide additional services to the Ontario grid. Peak Power also has a site using a Tesla Energy Storage System at the Thomson Building at 65 Queen Street West in Toronto.

“Starlight is committed to sustainability for the benefit of all stakeholders including residential and commercial tenants, as well as visitors to our properties,” said Rose. “We continue to seek new and innovative ways to improve our carbon foot print and minimize energy and physical waste. As this technology develops, we’ll certainly be watching for opportunities to integrate it on a larger-scale.”

Targeting the Global Adjustment

As utility consumers are all-too aware, the Global Adjustment fee isn’t cheap. Accounting for up to 80 per cent of the commodity cost of electricity, the GA is used to cover the difference between the market price and rates paid to regulated and contracted generators, and to pay for conservation and demand management programs. For customers with a least one megawatt (MW) of demand, Global Adjustment charges are calculated by looking at total energy use as a share of the total energy use during the five hours of the year when the overall demand for electricity is at its highest—known as the “5 coincident peaks.”

Forecasting these five peaks is complex. Analysts have relied on spreadsheets, regression analysis and general intuition to predict when peak events will occur. This was one of the driving factors that prompted Starlight Investments to pursue a partnership with Peak Power.

“The electricity grid is changing due to the growth of new technologies, such as solar power and electric vehicles,” said Matthew Sachs, Chief Operating Officer with Peak Power. “Battery energy storage can help balance the grid by providing fast-acting response to short-term fluctuations in supply and demand, such as peak demand events, which put a strain on the grid. Installing energy storage at your building can help you save up to 25% on your electricity bills, while also providing grid services to utilities, reducing GHG emissions from electricity production, and improving grid resiliency.”

Sachs also noted that 3280 Bloor was outfitted with the Building Insight Platform, which consists of internet enabled sensors and advanced analytics and forecasting for a “complete energy management solution.”

So, when will we start seeing energy storage systems permeate the apartment sector?

According to Sachs, the applicability of the technology depends on the utility tariff structures which affect project economics. “Currently this technology makes the most sense in Ontario for Class A customers, which are large energy users,” he explained. “The tariff structures have been changing, however, and the trend has been to allow more participation.”

Illustrating this, Sachs pointed to the lowering threshold that classifies a Class A customer. “It used to be 5MW, then it was reduced to 3MW, then 1MW and most recently 0.5MW for manufacturing sites. We believe that in the future everyone will be able to participate, but that will take some time for the regulatory structure to change.”

Another key for multi-residential apartment buildings is that the technology can only be implemented if it’s a bulk-metered building. With plenty of those still in existence, this might be the option hesitant owners have been waiting for.

As a rental housing provider, why should energy storage batteries be on your radar as a future energy-saving solution?

1. Batteries can improve data centre reliability.
2. They can provide power even without a cooling load.
3. They are a cleaner alternative to on-site fossil fuel generators.
4. They are perfect for dispensing energy for short durations during power outages.
5. Prices continue to drop as the market continues to develop.