UBC using Wi-Fi data to save building energy

A University of British Columbia (UBC) engineer has come up with a way to use Wi-Fi to determine the number of people in a building and adjust its ventilation accordingly, allowing for energy savings without sacrificing air quality.

“Every day, thousands of smartphones, laptops and tablets connect to the Wi-Fi network at UBC,” said Stefan Storey, the engineer, who holds a master’s in mechanical engineering and a PhD in resource management and environmental studies from UBC. “Our Bridge software anonymously counts the number of wireless devices in each room and passes the counts on to UBC’s building control system, which then adjusts airflow through the relevant building, practically in real time.”

Based on the number of occupants in the building, the control system can vary the airflow to a room, increasing it during a busy lecture or turning it down during the times in between.

UBC and Storey tested the technology at the Irving K. Barber Learning Centre library, which serves thousands of students and staff. The test found that this technology reduced energy consumption by five per cent over a period of 12 months, while maintaining air quality and occupant comfort.

According to David Woodson, UBC’s managing director of energy and water services, the new system could help the university cut greenhouse gas emissions by hundreds of tonnes and save up to $100,000 in energy costs per year for core campus buildings. UBC plans to install the technology in 10 more buildings over the next several months.

“This software uses the existing Wi-Fi network to provide good air quality and thermal comfort, so costs are lower and disruption is less compared to other occupancy detection technologies,” said Woodson. He went on to say that UBC’s Wi-Fi users are completely protected as all private information is removed in strict compliance with Canadian privacy legislation.

According to Storey, this project highlights the potential benefits of using Wi-Fi systems to create “smart buildings.” Storey co-founded the company Sensible Building Science around this discovery, with support from entrepreneurship@UBC, which provides help to UBC students, alumni, faculty and staff entrepreneurs as they develop and market their ideas. His patent-pending innovation is now being installed at campuses across B.C.

“As far as I know, this is the first technology in North America to use Wi-Fi access points as a sensor network and as a way to communicate with building control systems,” said Storey. “As we continue to develop it, we can help many more buildings become much more responsive to occupant needs.”

More WELL certification firsts for TD Centre

Toronto-Dominion Centre’s (TD Centre) 222 Bay St. tower is the first existing building in North America to achieve a Gold-level certification under the WELL Building Standard (WELL).

TD Centre previously earned the world’s first v1 WELL certification for an interiors project at TD Bank headquarters, a feat celebrated last year. Cadillac Fairview oversaw this new Core & Shell certification process in response to growing research showing the business case for office buildings that support health and well-being of occupants.

The WELL Building Standard is a performance-based system for measuring, certifying and monitoring features that impact human health and wellbeing, through air, water, nourishment, light, fitness, comfort and mind.

“Buildings are living and breathing human environments that have a material impact on the mind, body and spirit of people who live and work in them,” said David Hoffman, general manager, TD Centre. “Through smart investments in building design and operations that enhance human health and wellness, TD Centre is delivering significant new value for our tenants, supporting the productivity and competitiveness of their businesses.”

According to the World Green Building Council, buildings with improved air quality and ventilation not only mitigate the health risks of exposure to CO2, VOCs and other indoor air pollutants, but can also improve employee productivity by up to 11 per cent.

“Today’s top employers understand how real estate can impact the performance of their employees,” said Barbara Ciesla, senior vice-president at Jones Lang LaSalle, who consulted on the project. “TD Centre’s achievement of WELL Certification lays a strong foundation for tenants looking to pursue further strategies of health and wellness in their workplaces.”

Buildings that promote physical fitness of their occupants also help reduce absenteeism.

“With staff wages and benefits typically accounting for 90 per cent of a business’ operating costs, any improvement in employee health and productivity can have a profound effect on the bottom line,” added Sal Iacono, executive vice-president, operations, Cadillac Fairview.

Pursuing this Gold-level certification required meeting the standard’s 30 preconditions and additional optimization features. Some key features that were added include:

Building HVAC systems and operational protocols that enhance air quality delivered to tenant spaces, including high grade air filtration, HVAC maintenance protocols, ongoing commissioning of building systems that impact air quality, and controls around the introduction of indoor air pollutants from building materials.
Promotion of stairwell use and upgrades like painting, lighting and installation of motivational nature scenes to provide pleasant vertical paths of travel for occupants. Occupants are also able to join classes that provide exercise techniques for getting the most out of stairwell usage.
Supporting occupants in healthy food choices during the work week through lunch n’ learns, expert assessment of healthy meal options at TD Centre, and a series of nutritional communications installed in lobbies, posted in elevators and shared with tenants for distribution to their employees.

Can patients grow pot in their condo units?

A recent court decision may have opened the door to medical marijuana patients to grow a limited number of a marijuana plants in their condominium units for personal use, and condominium corporations may not be able to stop them.

In Allard v. Canada, four individuals argued that federal regulations passed to control the use of medical marijuana were unconstitutional. In a ruling issued February 24, 2016, the Federal Court of Canada agreed and confirmed the rights of authorized marijuana users to grow marijuana for their own purposes.

From 2001 until 2013, the federal government’s Marijuana Medical Access Regulations allowed patients with authorization from a medical practitioner to gain lawful access to marijuana in one of three ways. Authorized patients could either designate someone to produce marijuana for them, purchase marijuana directly from Health Canada, or cultivate their own marijuana plants.

In 2013, the federal government replaced those regulations with the Marijuana for Medical Purposes Regulations. One of the key changes was to remove the rights of authorized marijuana users to grow their own marijuana. The new regulations forced them to purchase marijuana from a licensed producer.

In response to the Allard decision, the federal government replaced the Marijuana for Medical Purposes Regulations. The new Access to Cannabis for Medical Purposes Regulations allow authorized individuals to grow a limited amount of marijuana for their personal use (or to have someone do this growing on their behalf).

Registered patients who intend to grow their own medical marijuana must comply with the requirements under these latest regulations. The regulations include provisions to help maintain safety and security of patients, growers and surrounding communities. Moreover, registered patients are required to comply with all relevant provincial/territorial and municipal laws, including bylaws respecting zoning, electrical safety, and fire safety, along with all related inspection and remediation requirements. If patients do not comply with the regulations, they are in violation of the Controlled Drugs and Substances Act and the Criminal Code.

Even though, prior to 2013, a patient with a doctor’s prescription had the right to grow marijuana, there was relatively limited public awareness of medical marijuana at the time. More recently — particularly as a result of the Allard decision and the subsequent changes in the regulations — there is a drastically increased awareness of the right to grow medical marijuana. These latest regulations raise several issues for condominiums.

Most importantly, it appears that authorized individuals (patients who need marijuana for medical reasons) may now have the right to grow a limited number of marijuana plants, for their own use, in their units. Condominium corporations may not be able to prevent this. In many cases, registered patients will be entitled to accommodation by their condominium corporation under human rights law. Therefore, condominium corporations would be obligated to accommodate these individuals to the point of undue hardship, meaning that the corporation might have to allow marijuana cultivation, in such cases.

While condominium corporations may not be able to prevent such marijuana cultivation, they can certainly regulate the marijuana cultivation by way of a rule.

It is recommended that condominium corporations consider passing a rule stating, among other things, as follows:

Only registered patients (persons with an established medical need) may grow marijuana.
The cultivation must comply with all applicable federal regulations.
The cultivation also must not cause any harm to the property or any disturbance to other persons.
The grower must advise the corporation of the cultivation, and the corporation may access the unit at any reasonable time, on reasonable notice, to observe the cultivation.

In some cases — for instance, where humidity levels are a particular concern in the building — it may be possible to consider a rule prohibiting all plant growing (including marijuana growing) in the units. This is something to be considered on a case-by-case basis.

There are also some other issues for condominium corporations to bear in mind.

Increased energy/water consumption

Someone who is growing marijuana for personal use may use significantly more hydro or water than other occupants. In a condominium corporation where water and/or hydro consumption are included in the common expenses for the units this may result in inequities.

The Ontario Small Claims Court reviewed this issue in Metropolitan Toronto Condominium Corporation No. 659 v. Truman. In that case, Mr. Truman had a permit to grow marijuana for personal use (presumably under the Marijuana Medical Access Regulations) and he did so in his unit. Mr. Truman’s growing of marijuana resulted in a significant increase in overall water consumption. The declaration for the condominium stated that the common expenses for the corporation included “water, except such that is used for commercial and industrial purposes, and except hot water.”

The Court found that Mr. Truman’s use of water was not “for commercial or industrial purposes.” However, the Court found that Mr. Truman’s use of water was disproportionate to his allotted share of common expenses and this was inequitable and unfair. As a result, the Court said that the condominium corporation could recover excess water charges from Mr. Truman.

This case demonstrates the need for condominium corporations to be aware of the potential financial impacts of marijuana cultivation, and to take steps to mitigate the effects.

Smoking in units

Smoking of marijuana in a unit is another matter entirely and is subject to a separate set of considerations. Smoke migration and the impacts of second-hand smoke can apply to all types of smoke, including marijuana smoke. A smoking ban would also normally apply to all types of smoke. Condominium corporations that are smoke-free should ensure that the language is broad enough to cover marijuana smoke. Even so, an owner with a medical need for marijuana might have the right to smoke, depending on numerous considerations in each case. The point is that growing marijuana in the unit and then smoking that marijuana in the unit are two entirely separate considerations.

And these issues will only increase if marijuana use is legalized.

In summary, the growing and use of marijuana are important issues for condominiums in the future. Condominium corporations should review their governing documents and make changes as necessary to protect the health and safety of all residents. Furthermore, corporations should consider the potential increase in expenses due to marijuana cultivation.

James Davidson is a partner at Davidson Houle Allen LLP, and has been practicing condominium law for more than 34 years. He represents condominium corporations, their directors, owners and insurers throughout eastern Ontario.

Cheryll Wood is an associate at Davidson Houle Allen LLP, and has been practicing condominium law for four years. She represents condominium corporations, their directors, owners and insurers throughout eastern Ontario.

Three Ways Engineers Can Improve Building Projects

At the start of a building project, property managers may question the need for both engineers and contractors. Sometimes, as a means to save money, hiring a contractor to do all the work seems like a viable option. Depending on the project, if property managers choose this route, they may miss out on a level of engineering expertise that is, in fact, profitable in the long term.

“We have great respect for and good working relationships with contractors, but you should be cautious if a contractor says you don’t need an engineer for your project,” notes Nick Jackson of CET, Project Designer at M & E Engineering.

With this in mind, here are three reasons to consider hiring an engineer for your next building project.

Profitable Projects

When financing the costs of a project, forgoing the expertise of an engineer can result in inconsistent prices and a lack of understanding of the scope of work. Costly delays, errors and the installation of inefficient systems are often bound to occur.

The expense of hiring an engineering firm to design your project and manage your construction actually offers a long-term pay back. An engineer’s detailed drawings and specifications give a contractor more clarity of the project scope. Engineering drawings identify the make and model of the equipment to be used, how it should be laid out on site and the materials that should be used. This information is what helps contractors meticulously price the project so that their costs are competitive.

With a typical boiler replacement project, the designer will look at the overall system and how the components work together. Engineers will calculate the flow rates of the main system pumps and each boiler pump so that the design of the system is balanced. The operating temperature and design of the heat exchangers and heating coils all contribute to the efficacy of the overall system. Changing a boiler is not always a straight forward task.

Engineers will also focus on the demand for the whole building, allowing for redundancy, design for controls to optimize the operation and will possibly upgrade to a higher efficiency boiler such as condensing type of boiler. This holistic approach saves more time and money, compared to an engineer’s fees. When key items such as equipment cycle time and temperature controls are considered, there is a potential of extending the life of the equipment.

Bigger Picture Approach

During the design process, a consulting engineer works on behalf of the building. The engineer will look at whole-building system design and not just the separate mechanical, electrical and plumbing components. Integrating these systems complements the design and establishes long-term system performance and energy savings. Looking into the reason why items failed and improving on the system, rather than constantly replacing faulting equipment, all plays a part of improving the cost effectiveness of a project.

Engineers work to optimize the building’s various needs and budget, and prepare drawings based on analysis and design calculations to meet building codes. By calculating the required performance of the systems, they can recommend the quality of materials that will be necessary for sustainable and effective systems.

Throughout your building’s lifecycle, engineers can also manage projects and provide consultancy services. Hiring an engineer creates a positive long-term relationship with a qualified, experienced professional who protects the interests of the building. If issues come up in the future, your engineer is there to help you solve problems.

An engineer familiar with preparing building condition assessments or reserve fund studies will have an understanding of the lifecycle of the building equipment. The engineer can then work with the owner regarding replacement schedule and budgeting.

Exceed Sustainability

Environmentally conscious principles are now commonplace in the profession, and reputable engineers see opportunities to create more energy efficient buildings. Saving energy is no longer a rarity among real estate leaders, and property managers should expect engineers to understand the intimate connection between technical knowledge and human behaviour.

The future of buildings is more cutting-edge; it involves renewable energy, reducing water use and sourcing and integrating sustainable materials. Additionally, there is a growing appreciation in the industry of the need to track carbon emissions across a building’s life cycle. Engineers can help property managers consider and target those goals, and will conduct a thorough life cycle analysis. Through proper design and retrofitting, a building can dramatically reduce its environmental footprint, be healthier for tenants and perhaps become a muse for others in the industry.

Hiring an engineer to oversee your building project is the right way to go. If your building requires upgrades, replacements or renovations, call an engineer first to design solutions that work and to help you manage a high-performing asset.

For more info on how engineers can assist your next project, connect with professionals at M & E Engineering Ltd.: President Ed Porasz, P.Eng., Nick Jackson CET, Project Designer and Project Engineer Ross Morley, P. Eng. M & E Engineering is a professional multi-disciplined Mechanical & Electrical consulting firm situated in Vaughan, Ontario.

Toronto Community Housing in crisis

It has been another tumultuous month for Toronto Community Housing, Canada’s largest social housing provider. The city-run entity with a $9-billion portfolio is once again facing criticism for failing in the upkeep of its 59,000 units—despite a lack of funds, decaying stock, and a wait-list of more than 181,000 people.

Since its inception in 2002, TCHC has faced numerous challenges and scandals, prompting the resignation of four top-level executives amid reports of financial and tenant mismanagement. In the latest wave of turmoil, TCHC announced plans to close 400 homes next year due to a shortage of repair money.

With 600 units already facing closure this year, that will bring the total number of unusable dwellings to 1,000 by the end of 2018. Of course, at a time when affordable housing is at a complete deficit, Toronto citizens greeted this news with a great deal of trepidation.

Last week, Toronto Community Housing also revealed that interim CEO Greg Spearn would be stepping down from his leadership role “for personal reasons.” Spearn, who’d been at the helm since the former CEO Gene Jones resigned in April 2014 following a disparaging ombudsman’s report, has yet to comment on his resignation, but new reports suggest the move wasn’t voluntary.

“Greg has provided stability and growth at a time of immense challenges,” said chair Bud Purves in a statement. “We appreciate his commitment and our entire Board and staff leadership team wish him well on the next phase of his professional career.”

Taking over as interim CEO is Kevin Marshman, who is currently vice-chair of the board. Marshman will be taking a leave of absence from his current role while he fulfills his new duties and the search for a permanent CEO continues.

But with that search, questions swirl around what—if anything—can be done to get things back on track. Greg Suttor, senior researcher at Toronto’s Wellesley Institute is skeptical things can ever improve unless resources are significantly boosted and management issues properly addressed.

“Toronto Community Housing needs more resources,” he says, noting that its operating budget is just over $800 per unit monthly while rent revenue averages just under $450 per unit per month. “On a per-unit monthly basis, this operating budget includes just under $200 in debt service, $250 for property management, and $250 for utilities and property tax. As a big public housing provider it also has large IT, security, and head office costs. But its per-unit operating costs are not padded or excessive by industry standards.”

As Suttor also notes, revenues are low because that is TCHC’s mandate—to provide low rents to low-income tenants—while the specific rent-to-income calculations are prescribed in provincial law. But while the costs continue to inch up every year with inflation, the incomes of low-income tenants generally do not. “They’ve been flat for the past couple of decades,” he says.

In the meantime, TCHC is also spending $250 million per year (around $4,000 per unit) on major repairs. But this level reflects special federal funding in 2016-2018 that won’t be sustained. Ongoing capital funding is needed to ensure that 50-year-old buildings stay in decent condition. “If any landlord was operating on this basis, they’d be in just as much trouble,” Suttor remarks.

Yet, instead of increasing subsidy, the City has been imposing restraint, while the province is contributing nothing apart from one-time federal flow-through funds for repair, and collaboration on refinancing mortgages to free up some TCHC debt service funds to support those repairs. “Ontario is the only province in Canada and the only jurisdiction among the world’s affluent countries, where most social housing rent subsidy is left to the municipal level of government,” he says.

On the management side, Suttor believes that the turbulence of 2011 through 2014 wasn’t so much about the organization itself, but about the destructive political environment generated by former mayor Rob Ford. “By 2014 everyone recognized the dysfunction and disorder that [Ford’s] politics created, but did they remember that the turmoil at TCHC was Rob Ford’s first mud storm?”

To deal with the ugly fallout of that mud storm, Mayor John Tory appointed an independent six-person Housing Task Force in January, 2015. The Task Force, led by Senator Art Eggleton, conducted a one-year study to provide detailed insight and advice on how to get the beleaguered agency back in working order. Overall concerns included: a lack of respect and responsiveness towards tenants; secrecy and a lack of transparency; an inability to aggressively evict drug-dealers; a deficit of $107 million on a Regent Park revitalization that was not even half complete; rent arrears that ballooned to $12.8-million by the end of 2016; an inability to turn around vacant units in a timely manner, resulting in 3,540 vacancies; as well as an increasing repair backlog.

As for management issues today, Suttor says he believes Spearn provided strong leadership during his tenure, but that he’s not surprised the City is looking for a change. “I don’t know the specific reasons why Spearn is departing, but with the City initiating major changes to implement some of the Eggleton TCHC Task Force recommendations, it’s not surprising that there’s a desire for new leadership.”

Retail leader buckles down on EV range anxiety

Cadillac Fairview (CF) is ramping up its newest low carbon initiative – a national electric vehicle (EV) charging program that will add 45 networked chargers at 15 major shopping centres across Ontario, Quebec, Winnipeg and New Brunswick, with some regions welcoming universal fast chargers for the first time.

Unavailable charging stations are a barrier for many drivers in provinces like Ontario where there are currently 10,000 EV car owners. That number is ripe for growth.

With this trend in mind, CF partnered with Quebec-based FLO, the largest network of charging stations in Canada, to roll out installation over eight months, with more stations slated for 2018. Chargers will be connected to a mobile app on the FLO network, so drivers can instantly locate them and track charging sessions in real time. There’s also a 24/7 bilingual customer support service for drivers seeking immediate assistance. CF currently has 60 chargers at existing sites. Some have converted to FLO; others will in the coming months.

EV users don’t just want to plug in at home, and this amenity will ultimately ease range anxiety many feel when on the road and help accelerate new EV purchases. Above all, it sets a standard in the retail sector to champion sustainable services that contribute to a low carbon future, while catering to bricks-and-mortar tenants and all the shoppers who use EVs.

“When we started launching this project and putting together a steering committee, people were really excited about it,” says John Massey, vice-president, operations, Ontario portfolio, Cadillac Fairview. “It’s smart to do from a corporate, environmental social governance perspective, but also smart from an employee engagement perspective. People are really keen on being a part of the project, and properties are excited to get these stations at their assets.”

Currently, FLO has more than 3,000 charging stations deployed coast to coast. These new sites will support a minimum of three chargers, operating at two different capacities: Level 2, which need three to four hours to replenish 80 per cent of a EVs capacity, and universal fast chargers, which need about 30 minutes to reach the same.

Regions seeing fast chargers for the first time will include downtown Toronto (CF Toronto Eaton Centre), Kitchener (CF Fairview Park), Hamilton (CF Lime Ridge), London (CF Masonville) and Winnipeg, Manitoba (CF Polo Park). As it stands, there are 150 fast chargers in Canada, so this project will increase that number and boost the overall EV ecosystem.

FLO president and CEO Louis Tremblay says it’s great to work with a company who has several locations across Canada, since most EV charging stations are found in Ontario, Quebec and British Columbia. Those provinces now account for 95 per cent of EV sales in the country.

“In Quebec, we started to deploy charging infrastructure before anyone else, and to make sure we’re not only implementing charging stations, but charging stations with reliable service,” says Tremblay. “For CF, they didn’t just want to bring charging stations to parking lots, but value to customers, with something that was reliable and well-supported.”

After an extensive due diligence process that involved looking at major EV charging players, including many in the U.S., FLO prevailed.

“Not unlike our approach to retail merchandizing where we’re always looking for the best and smartest and innovative retailers, we used the same approach for this aspect, and really looked for a company who was aligned, who was leading edge, had the best network and who was able to provide the best experience for customers who come to our properties,” says Massey. “Everything about them was extraordinarily professional, and the fact that they are Canadian was a great, too.”

For properties owners looking to add EV stations to their portfolio, Tremblay suggests taking a broader approach.

“This is something you start that will never stop. Some understand it; others take years to discuss it,” he adds. “If you’re not committed and you want to do something quick, you will regret it. When it’s a national approach, you will have a lot of success, visibility and marketing. Your customers will be happy and more customers will shop while they charge.”

Cities poised to terminate vacant unit rebate

Stakeholder consultation on the future of property tax rebates for vacant commercial and industrial space has been a rote exercise in Toronto given that City Council had already voted to eliminate the program two months prior to a recent public meeting to discuss the issue. Elsewhere, municipal officials in Ottawa have proceeded in a more conventional sequence, but real estate industry advocates are preparing for the same result.

This follows the Ontario government’s announcement last fall that municipalities would be given leeway to discontinue the rebate that was first introduced in 1998 in tandem with a province-wide overhaul of property assessment and taxation. Toronto and Ottawa are among what’s likely to be a crush of local governments requesting provincial approval to dismantle the vacant unit rebate program.

“I guess we’re not surprised, but we are disappointed,” reflects Dean Karakasis, executive director of the Building Owners and Managers Association (BOMA) of Ottawa. “This is a change of tax policy, and the way it has been characterized seems to be a bit of an attempt to smokescreen what’s really happening.”

Past, present and would-be recipients bristle at suggestions that the rebate is a subsidy or a disincentive to improve the marketability of their properties. Rather, they point to the program’s historical rationale. It was meant to mitigate the added liability that commercial/industrial ratepayers assumed when the former business occupancy tax (BOT), which had been charged directly to tenants, was rolled into a single property tax bill levied to landlords.

“It’s a tax policy to acknowledge there is a vacant space where the business would otherwise reside,” Karakasis says.

Under existing rules, landlords qualify for partial reimbursement of property tax paid on commercial or industrial space that’s vacant for 90 or more days during a tax year. Applications with supporting documentation are typically submitted in February of the following year, and payouts — equivalent to a 30 per cent refund on vacant commercial space or 35 per cent on industrial space — occur after municipal officials verify the claims.

In theory, the revenue underpinning the rebate is collected upfront and then held in trust for the recipients, but many municipalities report discordance between their budget estimates for the program and the eventual expenditures. Ontario Ministry of Finance data shows that, province-wide, the value of the rebate jumped from $32 million in 2008 to $60 million in 2014 — suggesting that it could be problematic to base budget allocations on the previous year’s costs. Notably, a report prepared for Ottawa councillors chronicles recent shortfalls of $10 million as “over the years, the budget has not kept pace with the actual use of the program”.

“It’s an obligation on the municipality. They have to make up that revenue in the budget and build it into their rate structure, but it’s unpredictable and it can be very hard to estimate these things with accuracy,” says Almos Tassonyi, executive fellow and director with University of Calgary’s School of Public Policy and a research associate with International Property Tax Institute. “For example, how many municipalities actually thought Target was going to go out of business?”

Decisions precede consultation

Based on the schedule endorsed in Toronto’s budget vote earlier this winter, the full rebate will still apply for vacancies in the first six months of 2017. It will then be cut to 15 per cent from July to December before it is eliminated entirely beginning in 2018.

However, the city still has to formally submit its request to the Ministry of Finance so opponents of the move — including REALPAC, NAIOP and many of the city’s business improvement areas — are pushing for a more gradual phase-out or a mechanism to enable commercial/industrial ratepayers to self-fund a rebate program. They note that Council had little opportunity to reflect on the industry’s concerns or consider alternatives before making its mid-February decision since the public meeting on the issue was not held until April 20.

“The mayor opined fairly early that he thought the rebate was a subsidy for big business and he wanted to kill it,” recalls Brooks Barnett, REALPAC’s manager of government relations and policy. “The Province also wanted municipalities to consult with the business community, and not all of them have done that to the extent we would like to see.”

Outside Toronto, commercial/industrial ratepayers in Mississauga, Brampton and Caledon have been invited to public meetings later this week to discuss Peel Region’s proposal to reduce the rebate to 20 per cent in 2018, and to 10 per cent in 2019, before eliminating it entirely beginning in 2020. Meanwhile, an early April report to Hamilton councillors promised “engagement will occur during April and into May of this year”, but the Chamber of Commerce, which is prominently listed as a group to be consulted, had not been contacted as of April 27.

“We suspect a lot of these consultations are just checking a box,” says Terry Bishop, president, property tax, with Altus Group Limited. “Municipalities know what they want to do.”

The city of Ottawa convened its public meeting in early March, and considered submissions from BOMA Ottawa and other stakeholders, but appears to have rejected BOMA Ottawa’s proposal that funds be levied specifically from the commercial/industrial property classes to support the rebate’s continuation. This week, the finance and economic development committee will consider recommendations for a two-year phase-out that would see it reduced to 20 per cent of property tax paid on vacant units in 2017 and down to 10 per cent in 2018. City Council will make the final decision later in the month.

Property tax consultants foresee a drop in applications as the rebate is phased out.

“At a 10 per cent rate, clients will likely not even bother because the cost to obtain it will outweigh the benefit unless it’s a significant amount of space,” predicts David Gibson, a director with Yeoman & Company Paralegal Professional Corporation. “These vacancy applications are incredibly arduous. I have claims from 2015 that are still in play and it will be mid-2017 before they will be settled.”

Passage of time obscures original rationale

Burdensome administration is one of municipalities’ frequently highlighted complaints with the program, but that’s also true of the forerunner business occupancy tax. A 1999 joint publication from the Ontario government and the Association of Municipalities of Ontario outlining the many details of what was known as local services realignment states: “Outdated and arbitrary, the BOT was the source of a large portion of municipalities’ tax arrears, and municipalities and businesses have long asked for its elimination.”

Proponents of continuing the rebate have offered some suggestions for curbing municipalities’ costs, including: scoping eligibility to at least 120 days of vacancy; placing limitations on the number of consecutive years a property could qualify; and drawing funds for the rebate solely from the commercial/industrial tax base.

“We recognize the administrative costs have become quite significant to administer the program and validate applicants’ claims,” Barnett affirms. “Changing the application fee structure so there’s more cost recovery there for the city is something we could get on board with.”

Other arguments for dismantling the rebate are seen as much more contentious. The real estate industry typically rejects the theory that the Municipal Property Assessment Corporation (MPAC) accounts for vacancy in evaluations, and highly resents the accusation that landlords aren’t actively trying to lease space because the rebate offers an undue safety net.

Ontario’s four-year assessment cycle makes it a clumsy instrument for addressing periodic vacancies in any case, but property tax experts stress that the rebate is an entirely separate mechanism from the vacancy allowance MPAC applies. It was specifically designed to address the extra tax burden assigned to property owners when the BOT was eliminated.

“The business occupancy tax might be gone, but the cost of this tax is still in place on a gross basis. So instead of the tenant paying the business tax portion and the landlord paying the realty portion, now the landlord is subject to both portions,” Gibson explains.

Nevertheless, with the passage of time, there are fewer municipal officials who experienced the relief of shedding the administratively cumbersome BOT firsthand. In the intervening 19 years, they’ve become more focused on other financial pressures.

“There is no question that it (eliminating the rebate) is a change in tax policy, but this is now viewed as just a subsidy that is in the system,” Tassonyi observes.

In practice, existing tenants will make up for the loss of the rebate as landlords pass through property taxes. Thus, Barnett urges decision-makers to take an economic development perspective.

“It’s not a subsidy. It’s something that keeps the industry relatively competitive if it sees a lot of vacancies,” he asserts. “Removing this would be removing a major slice of the tax competitiveness pie.”

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

Green buildings contribute to productivity: research

Recent research done in collaboration between the National Research Council of Canada (NRC) and Royal Bank of Canada (RBC) found that green buildings have a positive impact on the productivity of the employees working within them.

The research determined the human resources benefits of building green by analyzing anonymous data on more than 40,000 RBC employees against information on more than 70 RBC office buildings. Results found that overall, green buildings have statistically higher employee job satisfaction, higher employee engagement and organizational commitment, and higher management-assessed performance.

“Organizations inhabiting or owning buildings that are looking to meet green certification standards, such as LEED (Leadership in Energy and Environmental Design), usually use the environmental impact and energy cost savings benefits to make the case for certification,” said Richard Tremblay, general manager of the NRC’s Construction portfolio, in a press release. “Now, the NRC and RBC have developed objective methods to support the case that green buildings enhance job satisfaction and enhance indicators related to productivity as well.”

This research is just one of the NRC’s initiatives to create a greener future through innovation. The NRC was selected for this collaboration because of both its technical knowledge of high-performance buildings, as well as its impartial analysis of more than 120 million records from RBC.

“We are delighted to have partnered with the NRC on this ground-breaking study,” said Robert Carlyle, RBC’s senior director of strategic workforce management. “We look forward to uncovering new insights with the NRC to assist in developing physical spaces that help keep employees engaged.”

Shared-use facility slated for Dufferin and Lawrence

Villa Charities Inc. and the Toronto Catholic District School Board (TCDSB) have unveiled updated designs and a 3D model for the new shared-use facility for the Columbus Centre/Villa Charities and Dante Alighieri Academy Redevelopment. Considered to be the largest cultural/academic community hub currently under construction in North America, the project will be constructed at the intersection of Dufferin St. and Lawrence Ave. in Toronto.

“The partnership of the Columbus Centre and Dante Alighieri Academy is a unique model of collaboration, efficiency and innovation,” said Anthony DiCaita, president and CEO of Villa Charities, in a press release. “This reimagined space has been designed to honour our legacy and heritage, while providing a more contemporary and progressive vision for the community. A space more vibrant, multi-dimensional and intergenerational than ever.”

The community hub will be an important space for Italian-Canadians in the GTA and others who wish to explore Italian culture. It will replace the current Columbus Centre, which is considered the cultural heart of the GTA’s Italian-Canadian community.

The energy-efficient complex, which was announced in December 2012, is currently estimated to cost between $60 and $70 million. The fully accessible, joint-use facility will feature a three-storey glass façade along Lawrence Ave. to bring in natural light, urban green spaces for outdoor activities and a green roof, a 435-seat performing arts theatre, new event/banquet space, new music, dance and fine arts studios and athletic facilities with state-of-the-art fitness studios for spin, aerobics and yoga, among other amenities. CS&P Architects, Pillon Architect, Global Architect and Gatzios Planning + Development Consultants are all partners on the project.

“This reinvigorated facility will enable us to provide a collaborative, inspiring and 21^st century learning environment for our students, in addition to a variety of educational, cultural and volunteer opportunities,” added Angela Gauthier, the Director of Education of the Toronto Catholic District School Board. “We’re excited about the future of Dante Alighieri and continuing our partnership with Villa Charities.”

Construction on the shared-use facility is set to begin in February 2018, with an expected opening date in 2020.

Trends in high-pressure laminate surfacing

In the interior design industry, high pressure laminate (HPL) is a practical yet stylish surfacing material. Colour, pattern, wood or stone looks, finish and texture — absolutely any visual can be recreated or designed as a laminate. This allows endless visual solutions available for the designer to create their own ideal interior brand.

Laminate is affordable, durable, impact and scratch resistant. It can be used in any interior space, on horizontal and vertical surfaces, with many unique applications. Not only does laminate look good and perform well, it is also easy to fabricate using common woodworking techniques. And new breakthroughs in resin technology allow additional functional features beyond just style.

Design trends

Emerging social, economic and design trends from around the world influence interior designers as well as producers of surfacing. What impacts the end user drives interior designers to create spaces and that needs viable style solutions. Some of the biggest trend drivers for consumers are:

Responding to the new digital world with a need for a more balanced lifestyle and interior spaces;
Appreciation for craft and looking to art for inspiration; and
Personal responsibility for the environment, health/well-being and relationships.

Personal sanctuary and bringing the outdoors in

Personal space and time is more limited in today’s hectic world. In public spaces such as offices, hotel lobbies, airports, designers are carving out places of refuge to reduce stress. Style tools that enhance these spaces are timeless and familiar. A back-to-basics trend is to bring the outside in. Recent wood-look laminates appear natural and untouched, not overly rustic. Wood grains in light unstained finishes are key, as they represent the raw wood cut and milled. It’s a pure representation of nature that pairs well with honest materials such as metals, mesh, denim and fabric looks.

Spectral and colour pop

Bright colour cuts through the technology-driven aesthetics of recent times; it’s a low-tech approach with an artistic hand. Interiors that need a bold punch for impact use adventurous patterns, vivid materials and unexpected textures. Laminate technology can create daring designs with bright colours to provide designers another option to counterbalance nature-inspired trends.

Smart organic and functionality

The trend of smart organic marks a much more scientific approach to surfacing. Designers are looking for materials that are more environmentally conscious as well as perform more functions. New surfaces manipulate desirable qualities of both natural and synthetic materials to create never-before-seen smart surfaces.

Functional trends

Antimicrobial surfaces

Well-being and cleanliness has impacted the interiors market. Antimicrobial surfaces are practical for home, healthcare industry and public spaces where there is a concern for wellness. Solid surfacing and new laminate technology are available today for a technical solution beyond visuals.

Chemical resistance

Chemical-resistant surfaces add additional protection for hard-working interiors where harsh chemicals are used, such as healthcare facilities, hair salons, labs and more. While some chemicals and cleaning solutions can damage materials, special laminates have integrated resin technology to withstand harsh cleaning and chemical products. Always be sure to check the manufacturers’ product details before using cleaning or chemical-based products on a surface.

Scratch resistance

Laminate has always been a durable choice. Improved surfacing technology has added extra scratch-resistance, making laminate surfaces easy to maintain. Scratch-resistant laminates are ideal in interior spaces where surfaces receive heavy use, such as education, retail, hospitality, healthcare and offices.

Thermal-healing capabilities

As part of the natural trend, very matte surfaces are enhancing raw wood and stone looks. When made to be very matte, typical laminate technology is vulnerable to burnishing and fingerprinting. Emerging technology features thermal-healing capabilities to pair with soft-to-the-touch matte surfaces. The smart-surface healing technology allows easy repair, as simple as using an iron and a wet paper towel.

Anti-fingerprint

Super matte anti-fingerprint surfaces are now available on the market. They are low-maintenance, which makes them ideal for industries such as hospitality, restaurants, and any high-traffic area or places calling for a clean look.

Eco-friendly products

Eco-friendly products are continuing to evolve. Today’s responsible laminates are tested and certified through various third party organizations. As examples, GREENGUARD certifies for low chemical emissions and the Forest Stewardship Council, or FSC, certifies responsibly managed forestry products.

The number of surfacing options that have incorporated smart organics trends are growing. These options create beautiful visuals from recycled materials. Examples include recycled leather used to make new surfacing, reclaimed denim fibers used as additives in laminates and post-industrial content used to compose solid surfacing.

Laminate is an ideal surfacing material for many commercial spaces, from offices to hospitality, healthcare to education, to retail and more. There are great laminate options for every interior design style or functional need.

The latest design trends show the versatility of the surfacing material with colour-infused and nature-inspired applications. At the same time, the latest functional trends show how technology is enhancing the inherent properties of the surfacing material by addressing practical considerations such as ease of maintenance.

With more than 30 years of experience in the design industry, Renee Hytry Derrington is the group VP of design for Fletcher Building’s Laminates & Panels division, which includes Formica Canada inc.

Historically low downtown T.O. office vacancy kicks off next development cycle

Available office space in the Greater Toronto Area declined during the first quarter of 2017, with record low vacancy setting the ground for a new development cycle.

According to Avison Young’s First Quarter 2017 Greater Toronto Area Office Market Report, overall availability is down 70 basis points (bps) year-over-year and vacancy is fell lower at 90 bps. About 558,000 square feet of space was completed overall this quarter, with 88 per cent preleased.

“Although the GTA’s office market has experienced almost 14 million square feet of new development so far this decade – driven largely by workplace strategy and consolidation – demand continues to outpace new supply, and nowhere is this trend more apparent than in Toronto’s growing downtown market,” says Bill Argeropoulos, principal and practice leader, research (Canada) for Avison Young.

Downtown and Midtown Markets

Two major announcements during Q1 have pushed the amount of construction in the downtown market to 6.3 million square feet, with 49 per cent preleased.

Cadillac Fairview and the Ontario Pension Board made a “bold move,” beginning construction of an 879,000-square-foot office tower at 16 York Street without a lead tenant.

Another Q1 announcement that “removes uncertainty” and offers tenants more “viable options,” as Argeropoulos states, is the Bay Park Centre phased development, a partnership between Ivanhoé Cambridge and Hines that will see the completion of a 2.9-million-square-foot tower, with CIBC taking 1.75 million square feet as anchor tenant.

“While some landlords will feel the effects more than others, many tenants will see CIBC’s transaction as an opportunity to secure premises in buildings that the bank is set to vacate,” notes Avison Young Principal Robert Armstrong in Toronto. “Given the amount of lead time, the market will have plenty of opportunity to deal with this pending backfill space.”

Suburban Market

The GTA’s suburban market recorded rising occupancy levels. Notable gains in Toronto West (mainly class A) and Toronto East (class B) is offsetting losses in Toronto North (class A).

As a result, overall suburban availability and vacancy retreated 20 bps and 40 bps quarter-over-quarter to close the first quarter at 14.8 per cent and 11.3 per cent, respectively.

“While the suburbs are marching to the beat of a different drum, they have still enjoyed robust development activity during this decade, accounting for half of the new office product completed in the GTA,” adds Argeropoulos. “Both downtown and suburban markets continue to focus increasingly on development oriented around current and future transportation hubs, in line with evolving workplace and city-building trends.”

Humber River Hospital certified LEED Gold

Humber River Hospital recently achieved LEED Gold certification through the Canada Green Building Council (CaGBC).

“We designed and built our new hospital on three core principles: lean, green and digital,” said Humber River Hospital president and CEO Barb Collins, in a press release. “Being certified LEED Gold is a testament to the work done by the hospital, and our project partners Plenary Health Care Partnerships and PCL Constructors, in respecting our environment throughout the project, carrying over into the actual building performance. Our design compliance partners HOK also played an important role in helping Humber develop its LEED strategy. We are grateful to the Canada Green Building Council for certifying that this work was done to a very, very high standard.”

Some of the highlights of Humber River Hospital, one of the most energy-efficient acute care hospitals in North America, include:

Building systems that demonstrate unprecedented energy efficiency targets
100 per cent fresh air circulation
The use of recycled content in 20 per cent of building materials
The use of 46 per cent regionally-sourced construction materials
The diversion of 96 per cent of construction waste from landfill
Vegetated open space covering 38 per cent of the project’s total site area
Reducing water use by 33 per cent and making landscaping water-efficient by using captured rainwater
Reducing the heat island effect by using a vegetated roof and reflective roofing materials

“Surpassing the project’s intended LEED Silver classification to achieve LEED Gold is a testament to the entire collaborative team’s relentless pursuit of achieving unprecedented energy efficiency targets to reduce Humber River Hospital’s carbon footprint and create a facility that balances energy efficiency and innovative technology, enabling the hospital to focus on its core business of providing exemplary patient care,” added Bruce Macpherson, project director at PCL Constructors Canada Inc.

Humber River Hospital was delivered under Infrastructure Ontario’s Alternative Financing and Procurement delivery model in partnership with Plenary Group, PCL Constructors Canada Inc., HDR Architecture Associates Inc., Johnson Controls, MMM Group Limited, Smith + Andersen, WSP Canada Inc. /Halsall, Modern Niagara Toronto Inc., Plan Electric, A.M. Candaras Associates Inc., and Quinn Design Associates.

GTA condo lease transactions up 3.5 per cent in Q1

Greater Toronto Area realtors reported 6,680 condominium apartment lease transactions during the first quarter of 2017, an increase of 3.5 per cent compared to the same period one year before, according to the Toronto Real Estate Board (TREB).

The number of condominium apartments listed for rent during Q1-2017 was up on a year-over-year basis as well, but by less than one per cent.

“As the population and, by extension, number of households continues to grow in the Greater Toronto Area, the demand for housing increases,” said Larry Cerqua, TREB president, in a press release. “Some of this demand is pointed at the rental market, including condominium apartments that owners have chosen to rent out to tenants. The problem is that the supply of units available for rent has not kept up with demand, leading to more competition between renters and strong upward pressure on average rents.”

The price to rent an average one-bedroom condominium apartment in the GTA climbed 7.8 per cent to $1,791, while the rent for an average two-bedroom unit increased by 6.8 per cent to $2,432.

“It is important to remember that the residential market meets the housing needs for a substantial number of GTA residents, including newcomers to Canada who choose to settle in this region,” added Jason Mercer, TREB’s director of market analysis. “As a result, the rental market often falls under the public policy lens. Policies pointed at the rental market should be based on solid empirical evidence and should not hamper the supply of rental listings, which has been the main issue impacting renters over the last year.”

Buddy Holly Hall breaks ground in Lubbock

Buddy Holly Hall of Performing Arts and Sciences recently broke ground in Lubbock, Texas, the hometown of the 1950s pop icon Buddy Holly.

The 218,000-square-foot performing arts centre, designed by Toronto-based Diamond Schmitt Architects, features the 2,200-seat Helen DeVitt Jones Theatre; a 425-seat studio theatre; a grand hall; a bistro; and the 22,000-square-foot home to Ballet Lubbock with five dance studios. The Christine DeVitt Lobby will serve as a gathering point and community asset.

The venue will be able to serve many purposes, from opera, Broadway shows and symphonic music, to rock concerts, conferences and social events.

“To achieve this versatility, the floor of the auditorium can have raked seating or be flat for a standing audience, either below or in line with the stage,” said Matthew Lella, principal at Diamond Schmitt, in a press release.

The central volume of the venue conceals the fly tower and is framed by a roofline of angled planes with cascading columns that create a strong visual identity and a welcoming entrance. A replica of a 200-foot telecommunications tower will serve as a light sculpture and act as a beacon for the performing arts centre.

The Lubbock Entertainment and Performing Arts Association (LEPAA) is developing the privately-funded, $155-million project, which will also serve as a learning centre for the Lubbock Independent School District.

“Buddy Holly Hall will be a beacon for progress and downtown revitalization for Lubbock and the South Plains,” said Tim Collins, chairman of LEPAA. “The venue is a hub that brings together people of all ages to experience world-class art in a world-class facility.”

Diamond Schmitt is working with development team partners Garfield Public/Private, LLC, Parkhill, Smith & Cooper, MWM Architects, Hugo Reed & Associates, Jaffe Holden Acoustics, Schuler Shook, and Lee Lewis Construction on this project.

Buddy Holly Hall of Performing Arts and Sciences is on track to open its doors in 2020.

Ontario foreign buyer tax may drive Montreal sales

Ontario’s Fair Housing Plan, a suite of new measures meant to stabilize the red-hot housing market in the province, includes a 15 per cent tax on property purchased by foreign buyers. According to the Quebec Federation of Real Estate Boards (QFREB), this change may increase the presence of foreign buyers in the Montreal real estate market. However, the QFREB does not anticipate any major short-term impacts.

Canada Mortgage and Housing Corporation (CMHC) data estimates that Montreal’s proportion of foreign buyers only sits at 1.5 per cent. While this figure might be underestimated, the proportion remains quite low. In comparison, the percentage of foreign buyers in the Vancouver region is estimated at 9.7 per cent, while in Toronto it is likely around 4.9 per cent.

In Montreal, foreign buyers would likely purchase properties in central neighbourhoods for single-family homes and the downtown core for condominiums.

“Activity by foreign buyers in the Montreal area could have an upward impact on property prices in some central neighbourhoods, as this is where they tend to concentrate their purchases,” said Paul Cardinal, manager of the QFREB’s Market Analysis department. “However, the impact would be limited given that Montreal’s real estate market conditions are very different than those observed recently in Toronto and Vancouver.”

The residential real estate market in the Montreal Census Metropolitan Area (CMA) has seen moderate price increases in recent years, with the median price of single-family homes climbing six per cent from $279,000 to $295,000 between 2013 and 2016. The median price of a condominium also increased by six per cent over the same period, from $227,000 to $240,000.

The Montreal real estate market remains relatively balanced overall, as the single-family segment remains slightly in favour of sellers, the plex market is balanced, and condominiums remain in slight oversupply. In the rental market, Montreal’s vacancy rate is 3.9 per cent, according to CMHC, which is much higher than Toronto’s 1.3 per cent and Vancouver’s 0.7 per cent. Although more foreign buyers are arriving in Montreal, resulting in a significant increase in net migration and the number of non-permanent residents in 2016.

“We are far from a housing shortage, whether it be the resale, new construction or rental markets. In this context, it is difficult to envisage a surge in prices like Toronto,” added Cardinal.

Remote working boosts productivity: survey

Remote working can boost productivity levels by providing employees with a much-needed change of scenery, according to a survey commissioned by Regus. According to the results, 46 per cent of Canadians suffering from being confined for long periods of time found relief by varying their work environment.

The survey, which canvassed over 1,500 business people in Canada, found that in addition to improving productivity, working remotely also helps 53 per cent of employees concentrate. This is because leaving the usual business environment renews focus and allows workers to complete necessary tasks without interruptions from colleagues and ringing phones.

Flexible working also improves the commute to work for 53 per cent of respondents and allows 43 per cent of those surveyed to spend more time with loved ones at the end of the day.

Other key findings of the report include 53 per cent of respondents prefer flexible working because it allows them to be closer to clients or prospects for meetings. The survey found that 32 per cent of Canadian managers and directors intend to allow their teams between one and two days to work remotely next year, while 13 per cent of managers would allow workers to work remotely for the entire week.

“in the past, many employers have been hesitant about allowing employees to work remotely, so it’s surprising to see how many supervisors are embracing the positive impact that remote working can have on their workforce,” said Wayne Berger, executive vice president at Regus Canada, in a press release. “Offering employees the possibility of mobile working, even for a couple of days a week, increases their productivity levels as well as general well-being.”

“Further motivation for directors is that remote working provides companies with a wider reach,” continued Berger. “As a business grows, proximity to clients and prospects is indispensable but also costly. Flexible working allows companies to have a presence in different locations, whether to meet potential customers or source suppliers, with little extra expense.”

Aircuity platform used in NRC building retrofit

Aircuity’s airside efficiency platform was used in the major retrofit project at the National Research Council of Canada (NRC)’s building in Saskatoon, Saskatchewan. The building is now using two Aircuity Sensor Suites (SSTs) in its laboratory spaces and one SST for exhaust fan control.

“Over the last decade, airside efficiency has proved to be the biggest single energy efficiency conservation measure available for laboratory spaces,” said Dan Diehl, CEO at Aircuity, in a press release.

“Implementing energy retrofit projects in a lab environment is challenging,” added Mark Newman, energy management officer at the National Research Council. “But these same challenges also present the NRC with significant opportunities to conserve energy, reduce its environmental footprint and yield substantial savings on operating costs.”

The smart platform saves energy, gives building users access to intelligent data about their spaces and enables a healthier environment for those that work in the building. The system improves cognitive function and productivity, reduces environmental health and safety risks and promotes sustainability initiatives as part of a smart building strategy.