Commercial electricity customers mull decision

The Ontario government’s promised electricity cost adjustments have transformed a projected 3 per cent increase into a 17 per cent reduction for the average residential customer. New rates kicked in May 1, shaving 2.8 cents per kilowatt-hour (kWh) off the price that the Ontario Energy Board would have otherwise pegged for on-peak power consumed between 11 a.m. and 5 p.m., and 1.4 cents/kWh from the lowest priced, off-peak rate between 7 p.m. and 7 a.m.

Potential savings for commercial electricity customers are more difficult to quantify, but May 1 represents something of a watershed for them also. Many owners/managers of larger office buildings and shopping malls will soon have to make a first-time decision about joining the Industrial Conservation Initiative (ICI), while newly expanded eligibility for the program’s perks may be even more punitive for smaller customers on the losing side of cost redistribution.

Previously, as the name suggests, industrial customers were the majority of participants since program rules essentially disqualified all but very large commercial facilities — typically at least 1 million square feet — and/or buildings that house data centres. Now, with the threshold for eligibility reduced to a monthly peak demand of 1 megawatt (MW), energy management specialists advise most office towers in the range of 350,000 square feet would meet ICI entry requirements.

“It presents a great opportunity,” Bala Gnanam, director of sustainable building operations and strategic partnerships with the Building Owners and Managers Association (BOMA) of Greater Toronto, told attendees at a recent seminar to examine some of the possibilities. “We foresee that many of our members could end up saving hundreds of thousands of dollars, but, at the same time, there is confusion about it in the marketplace.”

That perhaps parallels the confusion surrounding the Global Adjustment — the largely opaque bucket of costs that ICI participants can mitigate through curtailment of electricity consumption during periods of high demand. While Gnanam describes the Global Adjustment (GA) as “one of the most difficult costs to understand”, its impact on electricity bills is easy to see. In the 10 years between 2006 to 2016, it soared from a province-wide monthly average of $54.5 million to more than $1 billion, equating to a 1,786 per cent increase.

Looking back to summer 2016

May 1 marks the beginning of a new benchmark year for the ICI program, although a few other key dates are also in play. This is a time for current and prospective new participants to look back at their electricity loads during the five identified hours between May 1, 2016 and April 30, 2017 when the highest province-wide demand was recorded. Local distribution companies (LDCs) will be required to supply this information no later than May 31 so that eligible customers can meet a June 15 deadline for opting in.

Those who choose to do so will be designated as Class A customers. As such, their monthly share of the GA from July 1, 2017 to June 30, 2018 will be calculated with a consistent mathematical factor, derived from their energy demand during the five peak hours in the 2016-17 period. Non-participants remain in the vaster ranks of Class B customers, paying the GA on a volumetric per-kWh basis.

Commercial electricity customers won’t necessarily be making their inaugural decision from a position of strength. It’s commonly acknowledged that it is easier to curtail power consumption in industrial operations, where production can be shut down with relative ease, than in office towers or shopping malls, where energy demand tends to rise in step with the peaks.

“Our analysis of dozens of properties suggests that commercial properties with mechanical cooling that operate during normal business hours will not benefit by opting in as Class A customers,” reports Neal Bach, president of the energy data management and consulting firm, Energy Profiles Limited.

Moreover, when the 2016-17 peaks occurred — on July 13, August 10, 11 and 12 and September 7 — commercial customers in the 1 to 5 MW range weren’t aware that they’d be deemed eligible for the program. By the time the Ontario government made the announcement on September 13, 2016, they’d missed the window for knowingly strategizing. Nevertheless, the generally disadvantageous allocation of costs to Class B should prompt all potential Class A customers to consider their options.

Cost redistribution

Customers who don’t qualify for the program are the subsidizers of ICI beneficiaries. After Class A customers’ Global Adjustment is calculated each month, the remainder of the costs is simply apportioned to the Class B base. In 2016, this worked out to an average of 9.75 cents/kWh.

“Theoretically, if the majority of Class A customers don’t have a good peak demand factor, Class A would actually pay more and Class B would get a break, but I don’t think that’s going to happen,” observes Scott Rouse, managing partner of the consulting firm, Energy@Work.

Ultimately, energy efficiency is Class B’s best and perhaps only defence. “The more electricity you use, the more Global Adjustment you will pay,” Janet Young, a communications advisor with Ontario’s Independent Electricity System Operator (IESO), reminded seminar attendees.

Buildings connected to Toronto’s deep lake water cooling network could be particularly good candidates for Class A. “Deep lake water cooling decreases electricity over traditional cooling by 90 per cent. On peak days, there are no chillers running,” Richard Palu, director of partnership development with the system operator, Enwave Energy Corporation, told the gathering.

Beyond this niche of potential winners, Rouse offered some past examples of large customers that have seen rewards or suffered losses based on their choices. Typically, facilities that have relatively consistent energy demand will achieve better results in Class A than buildings in which demand rises and falls throughout the day.

Because the peak demand factor used to calculate Class A costs lags real time by about a year — i.e. demand during the peak hours of summer 2016 determines Class A’s share of the GA in 2017-18 — changes in occupancy could also influence outcomes. If an energy-intensive tenant like a data centre has moved in since September 2016, Class A status should translate into lower electricity costs than Class B. If there has been a significant and sustained loss of occupancy since September 2016, Class B could be more cost-effective.

“Some people don’t consider what their future operations profile may look like,” Young said. “In the end, this is a business decision. It’s hard to say that this (Class A) would be good for all offices across Toronto.”

Eligible customers are required to annually state their intention to participate by the prescribed date in June so it is possible to switch classes at that time. Ontario’s Minister of Energy also has the discretion to allow a Class A customer to withdraw from the program, but that is likely to occur only in extraordinary circumstances such as an unforeseen calamity. The financial consequences of simply making the wrong decision will have to be borne for the full annual term.

Repercussions of residential relief still unclear

Currently, it’s still unclear how the Ontario government’s new hydro rate strategy will flow through to non-residential customers. Some previous components of GA costs — the Ontario Electricity Support Program and the Rural or Remote Rate Protection Program — will now be funded via general provincial revenues, which, the Ministry of Energy states will “provide savings” for all electricity ratepayers. Other cuts reflected in the new residential/small business rates may not be shared so universally.

In an April 10 letter to the Ontario Energy Board, Energy Minister Glenn Thibeault gave instructions for approximately $2.5 billion in GA relief for the period of May 1, 2017 to April 30, 2018 “to benefit all Ontario customers that are eligible for the RPP (regulated price plan), including those that have opted out of the RPP in favour of market-based pricing or a retail contract as well as non-RPP eligible customers that are eligible for the 8 per cent rebate (of the provincial portion of the HST).”

That would encompass residential, multi-residential, small business and farm accounts, but would not include commercial customers that use more than 250,000 kWh annually. Thus, the Class B Global Adjustment allocation for May is expected to be revelatory.

“Is the GA relief going to apply to all consumers, or will it all be allocated to the RPP?” Bach muses. “Or will the RPP decrease be added back into the GA, thereby increasing costs for commercial customers?”

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

Minto Capital acquires Radisson place in Calgary

Minto Capital Management Inc. announced the acquisition of Radisson Place in Calgary, Alberta. Radisson Place is a 12-storey multi-residential building east of downtown Calgary, complete with 11,400 square feet of commercial space.

In the near future, Radisson Place will undergo a renewal initiative that includes in-suite kitchen and bathroom renovations, interior common area refurbishments and updated amenity spaces.

“Radisson Place offers significant opportunity for our investors in the Calgary market” says Glen MacMullin, SVP Investment Management with Minto Capital. “With 60 years’ experience in the multi-residential asset class through our fully integrated end-to-end real estate platform, we’re well positioned to identify investment opportunities that will drive solid returns for our investors.”

The purchase of Radisson Place marks the fifth acquisition for Fund II. Launched in January 2015 with capital commitments of $158 million, Fund II stands at approximately 60% invested with a targeted annual return of 14 to 17 per cent.

Recent acquisitions undergoing renewal initiatives within Fund II include:

• Westlawn Village Apartments, which closed June 12th, 2015. Westlawn is a 144-unit multi-residential property located in Edmonton, Alberta.
• The International Hotel Suites, which closed November 30th 2015. The building is a 254 unit, 34-storey concrete tower currently operating as a hotel to be converted into multi-residential units located in Calgary, Alberta.
• Morningside, which closed February 25th 2016. The property includes, 2 concrete buildings, 4.5 and 5 storeys tall, totaling 214 units in Toronto, Ontario.
• St. Dennis, which closed October 27th, 2016. This apartment complex is a concrete 10 storey high-rise, totaling 330 units and just under 11,000 square feet of commercial space in Toronto, Ontario.

About Minto Capital

Minto Capital Management Inc. (“Minto Capital”) is the investment management division of The Minto Group, a fully integrated real estate enterprise established in 1955 with expertise in asset management, property management, development and construction. With 1,200 employees across Canada and Florida, the company has built over 85,000 new homes and currently manages 15,000 multi-residential units and 2.7 million square feet of commercial space. Minto Capital’s $2.9 billion portfolio is comprised of proprietary capital as well as private equity funds and joint ventures with institutional partners.

Minto Capital announces two big CRE investments

Minto Capital Management acquired Radisson Place in Calgary, Alberta, a 12-storey multi-residential building east of downtown Calgary, with 11,400 square feet of commercial space.

Minto Canadian Real Estate Value-Add Fund, LP (Fund II) made the purchase with the intent to revitalize the space, including in-suite kitchen and bathroom renovations, interior common area refurbishments and updated amenity spaces.

Fund II is a private equity fund “targeting multi-residential assets and ancillary retail across Canada’s major cities.”

“Radisson Place offers significant opportunity for our investors in the Calgary market” says Glen MacMullin, senior vice-president of investment management with Minto Capital. “With 60 years’ experience in the multi-residential asset class through our fully integrated end-to-end real estate platform, we’re well positioned to identify investment opportunities that will drive solid returns for our investors.”

The purchase of Radisson Place marks the fifth acquisition for Fund II. Launched in January 2015 with capital commitments of $158 million, Fund II stands at about 60 per cent invested with a targeted annual return of 14 to 17 per cent.

Minto Place Complex

Minto Capital also partnered with Investors Real Property Fund (Investors Group), selling 50 per cent ownership in Minto Place, its downtown Ottawa office complex.

The transaction includes three office towers comprising 945,030 square feet of leasable retail and office space and 1,055 parking stalls. Minto will maintain the other 50 per cent stake and continue to oversee property management and leasing for the complex.

“I’m extremely proud of this accomplishment. It is a big step forward in delivering on our business plan and fueling our growth.” said Rob Pike, president of Minto Properties, the investment management (referred to as Minto Capital) and property management division of The Minto Group. “This partnership is a significant proof point of our shift to institutional investment management, providing us with greater opportunities to re-invest and grow.”

The transaction does not include 185 Lyon Street, the multi-residential tower which shares the same city block.

Fortress sells two development sites

Fortress Real Developments (Fortress) has sold two development sites, located in Richmond Hill and Pickering, which were originally purchased in April.

The Richmond Hill development had already received OMB approval in early 2017 for 22 luxury three-storey freehold townhomes, while the Brock Village project in north Pickering, which was originally intended to become a mixed-use commercial and residential development, had been reimagined as a 59-unit townhouse project.

The supply of ground-oriented new housing in the Greater Toronto Area has fallen to its lowest point since 2007, according to Altus Group data. In March 2017, there were only 932 new low-rise homes available to buyers, a decline of 68 per cent year-over-year. Developers and new home builders hoping to help fix this problem had been enquiring on the availability of sites throughout the development community.

“With over 70 active real estate developments in our portfolio, we were comfortable disposing of a couple of our smaller sites, especially given the generous offers received for the Towns on Hall and Brock Village projects,” said Jawad Rathore, Fortress CEO, in a press release. “We were happy to extract the value created through the approval and assembly on these sites, and offer thanks to our partners and consultants for the realization of our planning objectives.”

The lack of supply is one of the reasons the prices of new homes continue to climb steadily in the GTA. The Altus Group reported that in March 2017, the average price of a new low-rise home topped $1.1 million, an increase of 32 per cent year-over-year.

Draft plan unveiled for Port Credit waterfront development

West Village Partners (WVP) recently purchased a 72-acre former oil refinery site in Port Credit, Ontario, and will be working with residents and stakeholders to transform the lands into a live-work-play waterfront community.

Located at 70 Mississauga Road South on the shore of Lake Ontario, the development is a joint venture with Kilmer Group, Dream Unlimited Corp, Diamond Corp, and FRAM + Slokker. In December 2016, WVP was selected by Imperial Oil as the winning bidder after an in-depth RFP process to purchase the property.

The mixed-use master plan calls for about 200,000 square feet of office and retail assets, a new waterfront park with a beach and ecological gardens, a community centre, four green corridors that link the waterfront to Lakeshore Road, and gathering spots and amenities that are highly vegetated and interactive. Linking these components together will be an intricate pedestrian network and bike routes, and a rejuvenated Lakeshore Road West main street.

Site studies are now underway, with the goal of beginning work this fall. Phased construction is anticipated to begin in 2019.

“We’re determined to deliver a special community that will raise the bar for architectural and design excellence and to transform this section of the Port Credit shoreline into a dynamic waterfront community with places to live, work, shop and play,” said WVP Spokesperson Ken Tanenbaum, vice chairman of Kilmer Group.

Mississauga Mayor Bonnie Crombie attended the announcement of the draft plan last week.

“The unveiling of the draft plan for this new development is proof that Mississauga is a city in demand and that people continue to choose Mississauga to raise a family, find a well-paying job and enjoy an unrivalled quality of life,” Mayor Crombie noted.

Later this spring, WVP will hold the first of a series of public engagement meetings to deliver an extraordinary landmark development for the city.

Problematic market conditions persist: CMHC

Although conditions in Canada’s housing markets are showing some signs of improvement, Canada Mortgage and Housing Corporation (CMHC) is still holding the official overall rating of the country’s housing market at “strong evidence of problematic conditions.”

CMHC’s quarterly Housing Market Assessment (HMA) reported evidence of overvaluation at the national level has been downgraded from strong to moderate, and is now present in six Census Metropolitan Areas (CMAs), rather than eight.

“While the overall assessment for Canada has not changed from the previous quarter, the level of overvaluation has been downgraded to moderate,” said Bob Dugan, CMHC chief economist, in a press release. “Regionally, eastern markets show weak evidence of overvaluation while this factor is stronger in western centres and markets in southern Ontario, where economic fundamentals have not kept pace with recent price growth.”

In Victoria, evidence of overvaluation has climbed from moderate to strong, as fundamentals are not keeping up with higher prices. There is also moderate evidence of price acceleration and overheating in this region, leading to strong overall evidence of problematic conditions. Meanwhile, home prices have improved in Regina, Montreal and Quebec CMAs.

Overbuilding has declined from being detected in eight CMAs to six. In Moncton and St. John’s, the supply of homes is adjusting to the demand, but in the Prairies, urban centres continue to show moderate to strong evidence of overbuilding.

In Toronto and Hamilton, price acceleration, overvaluation and overheating is present. Price growth has intensified and demand outweighs supply in the rental, resale and new home markets. In Vancouver, strong evidence of problematic conditions has been detected due to moderate evidence of price acceleration and strong evidence of overvaluation.

Luxury condo development slated for Oakville

The Insignia Private Residences at Sixteen Mile Creek, a nine-storey, 29-unit luxury condominium development, will soon call Oakville home. The development brings with it the opportunity for buyers to have a wider selection of homes in the $800,000 to $2.5 million range.

“Based on the latest statistics from the Oakville, Milton & District Real Estate Board, residential sales in Oakville are up more than 18 per cent in the last 12 months,” said Cindy Avis, of the Avis Team, in a press release. “The timing could not be better for the arrival of 29 new residences in Oakville amidst the tightest demand this town has seen in years. With the average price of a new residence in Oakville up 35.9 per cent in the last 12 months to more than $1,390,000, this project creates a much-needed destination for those in search of luxurious condominium living.”

The developer, Opus Signature Collection, brought on construction partner LCL Builds of Toronto and architect OneSpace Architects of Toronto to work on the building, which will feature suites ranging from 1,271 to 3,117 square feet. Each floor of the building will house a maximum of four units, so each home is guaranteed a corner view.

Each buyer will receive a complimentary design consultation by Oakville-based Studio h Interior Design, which has selected a collection of high quality finishes to complement the overall design of the building while personalizing each unit.

Other amenities of The Insignia include a private concierge, panoramic south-facing rooftop lounge with professional kitchen and dining room, walkout rooftop terrace with outdoor cooking facility, and a main-floor wine lounge with private wine lockers. Most suites will offer parking for two vehicles.

Gord Hicks named global CEO of BGIS

Gordon Hicks has been appointed the global chief executive officer of Brookfield Global Integrated Solutions (BGIS), a newly-created role within the global real estate management services company.

Hicks currently serves as BGIS’ CEO for the Americas. The company says this new global position addresses future opportunities during a time of tremendous growth for BGIS.

Over the last 24 months, BGIS has almost doubled its size and expanded in Asia, the UK and the United States. It has 7,000 team members delivering services to more than 100 clients with more than 300 million square feet in a portfolio of 30,000+ facilities around the world.

“Under Gord’s leadership, BGIS’ business in North America has grown significantly in the last 10 years, and its service offerings have expanded to meet the evolving needs of the clients and markets BGIS serves,” said Bryan Chew, chairman of the board. “Gord is a passionate, innovative, results-focused, team-oriented leader and is well-positioned to lead the business through its next stage of growth.”

Hicks started his career with BGIS in 1997. Since then, he has graced a number of executive positions within the company.

He has also held a number of industry board positions over the years, including the International Facility Management Association (IFMA), Canada Green Building Council and the Climate Reality Project, and is a graduate engineer from Carleton University. He is also actively involved in the Corporate Knights Executive Council for Clean Capitalism, and recently founded and is the first Chair of the Board for the Building Energy Innovators Council (BEIC).

Alberta, police refine workplace injury and death investigations

Alberta is working on new rules to improve the way workplace injury and deaths are investigated and to help clarify if criminal charges and violations are necessary.

Last week, the province signed a memorandum of understanding with 10 police services. While occupational health and safety (OHS) and police currently coordinate when to investigate serious incidents, new protocols will make it easier to determine criminal activity.

“Criminal charges are another enforcement tool to help ensure compliance with workplace health and safety laws,” said Minister of Labour Christina Gray. The agreement will help OHS and police to better serve and protect Albertans to help ensure every worker comes home safe at the end of the day.”

Amendments to Canada’s Criminal Code took effect in 2004. They allow for criminal charges in serious cases of workplace death or injury, and apply to anyone on a site or who directs the work of others. Since then, there have been 11 prosecutions in Canada, but none in Alberta.

“This memorandum of understanding will help solidify the coordination and communication of Alberta’s police services with those who investigate serious workplace occurrences,” said Marlin Degrand, assistant commissioner RCMP K Division and Alberta Association of Chiefs of Police representative. “By defining roles and protocols, police can focus on any criminal activity that may have occurred and investigators can ensure their time is spent on the incident investigation – and that benefits all Albertans.”

How to prolong the lifespan of lighting systems

Facilities and properties everywhere are switching to more efficient lighting technology. Older lighting technologies such as metal halide, high pressure sodium (HPS), or even fluorescent are slowly becoming obsolete and being replaced with evolving solid-state lighting technology.

With a strong focus on the energy savings promised by a lighting system, its lifespan often gets overlooked. Along with the direct energy savings that an efficient lighting technology such as LED offers, facilities are also realizing cost savings by prolonging their lighting system through best practices.

These best practices involve both physical applications and practical decisions. The following five strategies will lay the foundation for a lighting system that can realistically last 50,000 hours or longer versus 15,000 hours, which is very common with high-intensity discharge (HID) technologies.

1. Choose the right technology

All else equal, LEDs offer the longest rated lifespan compared to commercial application lights such as metal halide, HPS, and fluorescent. When a facility adopts LED, their lighting system is set up for a lifespan of two to three times the lifespan of other lighting technologies.

From there, facilities with LED fixtures can take steps to extend the lifespan of their lighting system from 50,000 hours all the way up to 100,000 hours in some cases, which improves the ROI. The steps commonly taken to prolong the lifespan of a lighting system apply no matter what technology is being used.

2. Match the product to the environment

Issues occur when a lighting system specifically designed for one environment is used in another. For example, lights that aren’t built to handle vibrations are much more likely to fail prematurely when used in high-vibration locations. Similarly, lights that are not vapour tight and do not lock out any water, dust, or dirt will likely fail prematurely when used in wet locations.

Applying a light in an environment for which it was not designed or made specifically can prove detrimental to the lifespan of any light, not just LED. If a light must be applied in an atypical environment, use a specific technology or casing, which can be sourced from a reputable commercial lighting company that offers different application-based light fixtures.

3. Look for properly designed heat sinks

Heat can weaken a light’s lifespan if the heat sinks commonly used for thermal management within a lighting fixture are improperly designed.

Excess heat is often conducted away from the junction box through a heat sink. This allows the heat to escape from the light, which prevents damage. Heat sink design, by nature, is an intricate process. Improperly designed heat sinks can cause issues such as air pockets and less-than-optimal cooling, putting the light at risk of premature failure.

The issue of lighting fixtures generating heat will persist until lighting companies and engineers find a way to use 100 per cent of the electrical input to produce light rather than heat. For now, it can only be dealt with by using properly designed passive cooling methods and choosing a technology that is efficient in turning electrical input into light rather than heat.

4. Dim below capacity for longevity

As important as it is to use lights in their intended application, using an overqualified light below its capacity by dimming is a common way to extend a light’s lifespan.

For example, dimming a light with a capacity of 150 watts down to 125 watts will reduce stress on the light. Operating the light well below its capacity will ensure its limits are never tested and thus prevents potential damage from excess heat.

Heat-withstanding capacities aside, a light operating below its standard output also reduces stress on its use. For example, a light using 150 watts could last for five to six years operating 24 hours a day. All else equal, that same light operating at 125 watts at 24 hours a day may last roughly an extra year.

5. Maintain consistent lumen output

All luminaires output less light over time, in a process called lumen depreciation.

There are two common ways to compensate for this depreciation in any lighting system. The first is to adopt LEDs, which depreciate less overall and more slowly. The second is to dial the light fixture below its maximum output to start and slowly dialing it up to remain at a consistent lumen output level throughout its lifespan.

Many up-to-date lighting systems use these tactics to prevent under-lit areas, even near the end of a light’s lifespan.

By following these best practices, facility managers, building owners and electrical contractors can ensure their lighting systems meet or exceed lifespan expectations originally promised by LED technology.

Dwayne Kula is the founder of My LED Lighting Guide, which specializes in industrial and commercial LED lighting. He can be reached at (888) 423-3191.

Golden Gate Capital to acquire 2020

20-20 Technologies Inc. (2020) has entered into a definitive agreement to be acquired by private equity firm Golden Gate Capital. The terms of the transaction were not disclosed.

2020 is the only global provider of applications, solutions and content for interior space planning, omni-channel retail and furniture manufacturing, providing an end-to-end solution that can replace the integration of multiple source component products. Founded in 1987, the company’s clients include many of the world’s largest home improvement retailers and manufacturers, as well as local, independent kitchen and bathroom dealers.

“We are delighted to welcome 2020 into our portfolio,” said Rishi Chandna, a managing director at Golden Gate Capital. “2020 provides the mission-critical solutions that designers, dealers, retailers and manufacturers rely on to create amazing spaces for home and work. As the retail landscape accelerates toward an omni-channel approach, 2020 has the products, technology and team to build upon their position as the global leader in this market.”

2020 will remain headquartered in Laval, Quebec and Westwood, Massachusetts, and will continue to be led by its current senior management team.

“Our customers are the most important part of our business,” said Mark Goldstein, chief executive officer of 2020. “We have a very serious responsibility to provide them new and better ways to help them profitably run their businesses, which requires us to always invest in ideas and technology that will keep us ahead of market trends and dynamics. The long-term strategic approach of Golden Gate Capital and the confidence they have in 2020 make them the perfect partner to inspire us toward an exciting new phase of growth in our company’s evolution.”

The transaction is expected to close later in the second quarter of 2017.

Diamond Schmitt on shortlist to design civic centre

Diamond Schmitt Architects has been placed on a shortlist of firms selected to design a new civic centre for Etobicoke, Ont. The firm recently presented its designs for Etobicoke Commons at a public event.

Diamond Schmitt designed Etobicoke Commons to create a civic heart and a destination for the public to engage in various activities such as recreation and learning, to attending to business at municipal offices. The firm’s designs include community amenities of health services, public meeting services, a fitness centre and pool, a library and retail space.

Diamond Schmitt’s design features a low-rise, tiered podium of folding, grass-lined surfaces, a structure that will be home to all of Etobicoke Commons’ major public spaces. The podium surrounds The Green, a landscaped urban oasis at its centre. The design supports two amphitheatres, an elevated Sculpture Walk, terraces for small gatherings, a daycare play area and space for outdoor markets.

“Many civic squares have large expanses of one-dimensional and spatially barren surfaces; in contrast, on offer at Etobicoke Commons is a multitude of dynamic public spaces that support different uses, are of varying sizes, and are adaptable to changing seasons for the public to really use,” said David Dow, principal at Diamond Schmitt Architects, in a press release.

The building’s glass façade brings the outside into and throughout the building. Transparency is demonstrated by a glass-lined council chamber that is adaptable for other community uses. The Great Hall is a multi-purpose space that provides access to all activities and services within, while the office tower above features a sequence of stacked atria that contribute to interaction among staff in both formal and informal settings.

The design hopes to achieve Net-Zero through a combination of robust strategies to reduce energy-use intensity and generate on-site energy. A carefully calibrated window-to-wall ratio is supported by photovoltaics in roof and skin, triple-glazing and view dynamic solar control glass.

“Etobicoke Commons is meant as a meeting point and catalyst for increased interaction by the community in a setting people can enjoy and that has enough variety and flexibility to make it their own,” said Dow.

Artscape raises $21.4-mil to support creative hub

Artscape has raised $21.4 million in funding – including $14,050,000 in capital funding, $4,450,000 in community bonds, and $2,993,000 in program and start-up funding – to support its art and design entrepreneurship hub Artscape Daniels Launchpad, which is currently under construction as part of the Daniels Waterfront – City of the Arts development.

Funding for the $27.3 million capital project has been contributed by the private sector, philanthropists and all three levels of government. The hub was named to recognize the outstanding financial support provided by The Daniels Corporation and the John and Myrna Daniels Foundation, whose leadership gift of $5.75 million includes $625,000 in support from ‘City of the Arts’ development partner WJ Properties.

The purpose of Artscape Daniels Launchpad is to help artists and designers build thriving careers, organizations and businesses. It will be a unique place where artists have access to a multi-disciplinary environment full of tools, equipment and technology, entrepreneurship programs and activities, and a marketplace of services, resources and opportunities.

“The Government of Canada is committed to supporting Canada’s cultural infrastructure,” said Adam Vaughan, Member of Parliament for Spadina-Fort York, in a press release. “We are making the most of Toronto’s unique assets to strengthen southern Ontario’s creative cluster. Artscape Launchpad will help connect artists and designers from all over southern Ontario to skills training and to the businesses that need their services – all in a state-of-the-art facility.”

Other major capital contributions to the project have been made by the Government of Canada through Canadian Heritage ($3.5 million), the Ontario Ministry of Research, Innovation and Science ($3 million) and philanthropists that have each made donations of up to $1 million. Start-up and program funding was announced including contributions from the Federal Economic Development Agency for Southern Ontario, Ontario Trillium Foundation, Ontario Media Development Corporation, the City of Toronto through Start Up Here Toronto, the Metcalf Foundation, and the J.W. McConnell Family Foundation.

This support allows Artscape to hire a team for Artscape Daniels Launchpad to help deliver entrepreneurship training to thousands of artists and designers and strengthen connections between creatives and businesses in Southern Ontario.

The Daniels Waterfront – City of the Arts community is designed by RAW Design with Rafael + Bigauskas Architects as the Architects of Record. The interior design of Artscape Daniels Launchpad is by Quadrangle.

Artscape Daniels Launchpad is set to open in summer 2018.

GTA new housing supply drops to record low

In March, the GTA’s housing supply challenges caused record-breaking prices, unprecedented inventory lows and skyrocketing condo apartment sales, according to the Building Industry and Land Development Association (BILD).

The supply of new homes available to buyers dropped to a record low, with only 10,153 homes available for sale across the entire GTA, according to Altus Group, BILD’s official source for new-home market intelligence. This number is down by more than 50 per cent year-over-year, as in March 2016, there were 21,006 homes available to buyers.

“The ongoing decline in new housing inventory is a direct reflection of how difficult it is for the industry to bring product to the market. The hurdles builders face keep getting higher,” said Bryan Tuckey, BILD president and CEO, in a press release. “There are ongoing major challenges with a lack of serviced and permit-ready developable land and out of date zoning bylaws. The complexity and time it takes to get the vast numbers of approvals and permits necessary to build have increased dramatically in recent years.”

March 2017 marked the biggest month for sales of new condominium apartments in the GTA with 4,500 units sold. Until last month, May 2016 held the record for most condo units sold with 3,820 sales.

“The record number of condominium apartment sales in March was boosted by recent launches of product in prime locations – more than half of March sales were in projects opened in February or March,” said Patricia Arsenault, Altus Group’s executive vice president of research consulting services. “Demand continues to be fueled by end-user buyers who are shifting their expectations towards more attainable product, as well as by investors whose presence will help ensure a steady stream of new rental housing supply in the years to come.”

Almost 80 per cent of the new homes purchased in March in the GTA were condo apartments in high-rise and mid-rise buildings and stacked townhomes. The climbing condominium apartment sales stood in sharp contrast to sales for new single-family ground-oriented homes, of which there were only 1,175 sold in March, a decline of 45 per cent year-over-year.

Prices of available condominium apartments in high-rise and mid-rise buildings and stacked townhomes climbed 14 per cent annually to $532,792, with an average price per square foot of $666, and an average unit size of 800 square feet.

Meanwhile, the available supply of new single-family low-rise homes, including detached, semi-detached and townhomes, has fallen sharply since 2007. In March 2017, there were only 932 new low-rise homes available to buyers in builder inventories, compared to 17,854 homes available one decade ago.

The scarcity of supply is especially seen in single-family detached homes, which has seen supply drop by 98 per cent over the last decade. Last month, there were 233 detached homes available for purchase, compared to 11,802 in March 2007.

“The inventory numbers are telling us very clearly that not enough new housing and not the right mix of housing is being built to keep up with consumer demand or our housing needs,” added Tuckey. “The industry is following the province’s intensification policy and building and selling far fewer low-rise homes than a decade ago, but demand for single-family homes has not dropped.”

The average price for available new low-rise homes in March was $1,124,600, a 32.4 per cent increase compared to one year ago. Meanwhile, the price for available new detached homes reached $1,783,417, an increase of $716,711 in one year.

Quebec communities get funding for sports facilities

The governments of Canada and Quebec are jointly funding a new sports complex in the town of Val-d’Or and the renovation of sports facilities in the towns of Saint-Felix-de-Dalquier and Sainte-Germaine.

The governments of Canada and Quebec will each invest more than $4.8 million into these three infrastructure projects in the Abitibi-Témiscamingue region under the New Building Canada Fund, Provincial-Territorial Infrastructure Component-Small Communities Fund. The Small Communities Fund is a joint federal-provincial program that provides support to municipalities with fewer than 100,000 residents to develop infrastructure to enhance their cultural, sports, recreational and tourism assets or safeguard public assets.

The federal and provincial governments will each invest more than $3.9 million for the construction of a sports complex in Val-d’Or. The town will also invest more than $3.9 million in the project, bringing the total government and municipal investment to over $11.8 million. The complex will feature a large gymnasium, bleachers, change rooms and multi-use spaces to accommodate a variety of activities, including tennis, badminton, volleyball and basketball.

In Saint-Felix-de-Dalquier, the governments will be investing more than $500,000 each for the renovation of the town’s sports centre, while the municipality will be providing the remaining funding for the project, bring the total investment to more than $1.5 million. The renovation will include replacing the ice boards and windows, adding permanent bleachers, installing change rooms and storage spaces beneath the bleachers and repairing the heating system.

In Saint-Germaine, the federal, provincial and municipal governments will all be providing more than $350,000 each to refurbish the town’s sports complex, bringing the total investment in this project up to more than $1 million. This investment will be put toward replacing the arena’s refrigeration system.

“By supporting construction projects such as these, we are demonstrating our desire to make safe and accessible facilities available to local residents and help municipalities ensure the quality of their infrastructure over the long term,” said Guy Bourgeois, Member of the National Assembly for Abitibi-Est. “These projects will enable Abitibi-Témiscamingue Region residents to practice sports and physical activities on a regular basis, encouraging them to adopt active lifestyles.”

Q1 sees milder decline in downtown Calgary

Market analysts suggest milder decline in downtown Calgary is tantamount to an upturn in optimism. Colliers International’s newly released overview of the first quarter of 2017 reports a 25 per cent vacancy rate along with worries that recent energy sector mergers will spur more layoffs and consolidation of office space, but recounts some signs of renewed demand.

“Many tenants who have been sitting on the sidelines over the last year are of the view that, with improving fundamentals in the energy sector, now is a good time to take advantage of the very favourable market rates and inducement packages currently being offered by landlords,” the report hypothesizes.

Nearly 142,000 square feet of downtown office space was returned to the market in the first three months of 2017, but this is well off last year’s pace when 2.3 million square feet emptied out over the course of 12 months. Total vacant downtown office space now surpasses 10.6 million square feet with more than half of that in Class AA or Class A buildings.

“The majority of available space in the downtown core is comprised of larger blocks of space in excess of 20,000 square feet, which many landlords are reluctant to subdivide for small user requirements,” the report states.

Average net asking rents are now at $15 per square foot, down from $16 in the first quarter of 2016 and a drop of $25 from the $40 high of 2012.

Analysts note that the annual absorption of office space in better economic times has typically remained “well under one million square feet” so they expect it will be some time before the market returns to equilibrium — particularly with the pending addition of another 1.8 million square feet still under construction and destined for the market within the next two years. That said, exceptional activity is not unprecedented.

“If the energy sector were to grow at the levels experienced in the years 2010 to 2012, over which time in excess of 6.5 million square feet of office space was absorbed in downtown Calgary, we could see the office market recover within the next three to five years, as unlikely at this may appear in today’s environment,” the report advises.

Milton District Hospital meets substantial completion

PCL Constructors Canada Inc. (Toronto) has achieved substantial completion on Milton District Hospital’s expansion project.

“The Milton District Hospital project is a tremendous example of the power of collaborative team work,” said Kelly Wallace, PCL Toronto district manager, in a press release. “The hospital’s recognition of the tight construction schedule and willingness to commence with formal design meetings in advance of financial close demonstrated the respect of positions and interests amongst all parties, which proved to be a critical success factor for the positive outcomes achieved on this project.”

The company had 21 months to design and build the expansion on an active hospital site. Over 40 people from the PCL team influenced an outstanding safety culture that resulted in 600 tradespeople leaving the job site safety each day, with over 1.2 million hours worked without a lost time injury (LTI).

“Accomplishing an excess of 1.2 million hours worked without an LTI is a tremendous achievement and I want to thank each and every person who stepped food on this construction site for making it their personal responsibility to work safety,” continued Wallace. “As our industry prepares to celebrate Safety Month, this is a testament to our resolve that by working as partners, and not just individual companies, we will achieve our combined vision of ensuring that every worker returns home safely, every day.”

As part of the Plenary Health team, PCL took on the role of design-builder on the project. Other major partners involved in delivering the project on time and budget under Infrastructure Ontario’s Alternative Financing and Procurement (AFP) delivery model include Halton Healthcare, Plenary Group, B+H Architects, RTKL Associates, Johnson Controls Canada, Smith and Andersen, parsons Brinkerhoff Halsall Inc. (WSP).

“We are incredibly excited about achieving this significant milestone and extend our thanks to everyone who contributed to the construction of this state-of-the-art hospital expansion,” said Denise Hardenne, president and CEO of Halton Healthcare. “This project is a major step in the development and expansion of MDH and will provide increased capacity to meet the community’s growing healthcare needs. The months ahead are going to be fast-paced, exciting and challenging as we prepare ourselves, and this new facility, to provide exemplary patient experiences on opening day and for many years to come.”

With this milestone, Halton Healthcare now has full access to the expansion and will begin preparing the space for occupancy. The hospital is expected to begin providing patient care services in the new space this fall.