2013 year in review

As chronicled in Business in Vancouver's look back at the year in business, 2013 featured the come-from-behind victory of Christy Clark's BC Liberals in the May 14 election and ongoing controversy over resource development and pipelines across B.C.

MINI-LIST

Biggest alternative energy companies in B.C.

Issue 1210; ranked by number of B.C. employees in 2013

1. Westport Innovations Inc.

2. Ballard Power Systems Inc.

3. Schneider Electric, Solar Business

4. Endurance Wind Power

5. Analytic Systems Ware (1993) Ltd.

JANUARY PROFILES

TOURISM

Destination BC a sham: critics

Tourism industry business leaders and marketers slam the B.C. government's plans to create Destination BC. They dispute the government's claim that the new tourism organization will be "industry led," saying the government would, in fact, have far more say over how tourism dollars are spent in B.C.

"Giving a budget to a politician is like giving a teenaged boy a quart of whisky and the keys to the family car," Simon Fraser University marketing professor Lindsay Meredith told Business in Vancouver.

Former premier Gordon Campbell's decision to dissolve Tourism BC and put tourism marketing control in the hands of the province's tourism ministry was so unpopular that his successor, Premier Christy Clark, promised to return it to an industry-led approach.

But Accent Inns founder and chairman Terry Farmer says that hasn't happened.

Issue 1210, January 1-7

PORTS AND SHIPPING

Feds exert spin control on shipbuilding contracts: FOI documents

Taxpayers won't get updates on subcontracts being negotiated under Seaspan's $8 billion federal shipbuilding deal until Ottawa decides to provide them, according to documents Business in Vancouver obtained under Freedom of Information.

The heavily redacted umbrella agreement document for the deal between Seaspan and the federal government lays out a strict communications protocol under which the government controls how and when any project updates are released.

The document also states that shipyards can't make any public announcements about projects under the deal without the federal government's prior consent.

"The government is basically just wasting money on spin control," says Jordan Bateman, B.C. director for the Canadian Taxpayers Federation.

"Every time there's any kind of milestone, you're going to end up seeing federal and provincial politicians grinning at the seashore. It should be up to Seaspan to decide when that's appropriate or when it's not appropriate."

Issue 1210, January 1-7

REAL ESTATE

Village 'megapub' brawl brews

Olympic Village homeowners cry foul over City of Vancouver plans to allow Calgary-based CRAFT Beer Market from opening a 350-seat, 13,000-square-foot pub in the Salt Building.

They say the pub would create numerous problems that will devalue not only their units but also 175 unsold units, in which the city has a direct financial stake. The pub could cost Vancouver taxpayers millions of dollars because the city bailed out Olympic Village developer Millennium Development with an emergency $750 million loan in 2008. Receiver Ernst and Young estimated city debt related to that loan at $348 million in June 2012. Olympic Village condo sales were expected to help reduce that debt.

Issue 1211, January 8-14

PORTS AND SHIPPING

B.C. coal exporters like plan to privatize Ridley Terminals in Prince Rupert

B.C. coal exporters applaud the federal government's plans to privatize Prince Rupert's Ridley Terminals.

Doug Smith, chairman of the Ridley Terminals Users Group and general manager for Xstrata Coal Canada, said the coal terminal's employees have done a "tremendous job" running the operation and he hopes to see little change under a new owner.

But he said privatizing Ridley could better position the facility for expansion beyond its plan to double terminal capacity to 24 million tonnes annually by the end of 2014.

"I would think [privatization] would positively affect their access to capital," said Smith.

"There's the potential to expand beyond [current expansion plans] and that would require additional capital, and presumably a buyer would assess that based on the market demand."

Issue 1211, January 8-14

FORESTRY

Catalyst Paper: Beaten to a pulp but still standing

Financially battered Catalyst Paper Corp. starts the new year with a relisting on the Toronto Stock Exchange and hopes that it won't have another year like 2012.

Staggering under an $800 million debt and declining newsprint demand, the Richmond-headquartered company was forced to seek creditor protection, and shareholders were left empty-handed.

The company had to sell off some major assets, including its 50% share in Powell River Energy – a co-generation plant attached to its Powell River pulp mill – and was looking for a buyer for its idled Elk Falls mill in Campbell River.

Despite its woes, the company restructured without massive layoffs during a court-ordered reorganization.

"We've hired over 200 employees, and at no time did we lose any customers," Catalyst CEO Kevin Clarke told Business in Vancouver. "Actually, we gained market share in every one of the markets where we were looking to gain share."

Issue 1212, January 15-21

FINANCE

Tax the rich, business leaders say in BIV-Ipsos survey

Business leaders in B.C. believe increasing taxes on the wealthy is the best way for governments to reduce deficits and debt, according to a survey conducted by Ipsos Reid of 147 business for the 2012 fourth-quarter Business in Vancouver business outlook.

When asked what actions they would like to see governments take to control deficit spending and accumulated debt, 63% of respondents say they wanted to see taxes hiked on the wealthy.

"It's socialistic to say raise the taxes on the wealthy, so it's interesting given that a lot of the people being surveyed would fall into that [wealthy] category," said Dave Pierzchala, senior vice-president and managing director at Ipsos Reid West.

The survey also finds business leaders to be increasingly pessimistic about future sales and profit in their businesses and less confident about the likelihood of hiring new staff or making new capital investments.

Issue 1212, January 15-21

POLITICS

Brewers froth over inequitable liquor regulations

Local brewers call on the provincial government to overhaul archaic liquor laws that allow wineries to have tasting rooms – where customers can be served multiple glasses of wine – but which forbid brewers from doing the same.

Rich Coleman, B.C.'s minister in charge of liquor regulations, admits to Business in Vancouver in September that the rules for brewers are "daft" and that he plans to change the law.

Issue 1213, January 22-28

MINING AND ENERGY

Enbridge battle embroils B.C.'s Super Natural brand

Ecotourism entrepreneurs in B.C. sound alarm bells over the Northern Gateway pipeline proposed by Enbridge Inc.

"The pipeline and increased tanker traffic would absolutely affect our business," King Pacific Lodge owner Michael Uehara told Business in Vancouver.

"We're on what they call the alternate weather route for the tankers, and if the tankers take that route, they will pass within a mile of the lodge."

Randy Burke, managing director of Bluewater Adventures Ltd. and a director of the Gwaii Haanas Tour Operators Association and the Commercial Bear Viewing Association of BC, said he feared a sector-wide collapse.

Ecotourism operators presented their concerns to the federal Joint Review Panel.

Issue 1214, January 29-February 4

MINI-LIST

Biggest manufacturers in Metro Vancouver

Issue 1216; ranked by number of manufacturing staff in 2012

1. Sunrise Farms

2. Avcorp Industries Inc.

3. Teal Jones Group

4. Creation Technologies

5. Original Cakerie Ltd.

FEBRUARY PROFILES

REAL ESTATE

Developers push for demolition of West-End walk-ups

Developers lobby the City of Vancouver to help solve the city's affordable housing crunch by ending what is effectively a ban on demolishing and rebuilding low-rise rental buildings in the West End.

"It's a policy that is prejudicial. It's heavy-handed. It's punitive and it's unfair," said HQ Real Estate Services principal David Goodman, who along with son Mark Goodman also publishes the Goodman Report newsletter.

"Many of these buildings are 60 years old and older. They need to be refreshed."

Restrictions on demolishing older rental stock have been in place since 1989. Both Urban Development Institute Pacific Region CEO Anne McMullin and MacDonald Development Corp. principal Rob MacDonald say they believe the city is reluctant to allow higher density on sites where there are old walk-up buildings because displaced tenants might complain about the city's complicity in having them kicked out of their homes.

Issue 1215, February 5-11

TECHNOLOGY

Canadian clean energy losing its competitive edge

Clean energy industry leaders in B.C. express concern that, while the U.S. plans to double investment in clean and alternative energy, Canadian politicians are focused almost exclusively on oil and gas development.

With companies like General Fusion, Ballard Power Systems, Nexterra Systems Corp. and Corvus Energy, B.C. is a Canadian leader in innovative alternative energy technology. But Pembina Institute's "Competing in Clean Energy" report states that Canada's share of the $1 trillion clean energy market is just 1%.

With the right policies, according to the report, that share could increase to $60 billion by 2020 from $9 billion today.

In addition to innovative technology, B.C. has natural assets, including a windy coastline and plenty of tidal power. Western Tidal Holdings, a consortium of investors, announced ambitious plans to develop tidal power along the B.C. coast.

Issue 1215, February 5-11

REAL ESTATE

New tower set to rise on fabled Il Giardino restaurant

Legendary Vancouver restaurateur Umberto Menghi announces plans to close his 37-year-old fine dining Italian restaurant Il Giardino in the spring to make way for Seacliff Properties to develop what will likely be downtown's newest highrise.

Seacliff bought the Hornby Street and Pacific Boulevard restaurant site on January 15 from W.P.J. McCarthy and Co. owner William McCarthy and several similar sized lots directly north of the restaurant from Menghi.

In addition to closing Il Giardino, Menghi says he will sell his Tuscany Cooking School in Italy.

He adds that he would continue to manage his two Whistler restaurants, Trattoria and Umberto il Caminetto, provide consulting services and write a book about his life.

Issue 1216, February 12-18

ENVIRONMENT

Vancouver's plan to incinerate garbage trashed

Metro Vancouver says incinerating more garbage to create energy could not only lessen the impact on Vancouver's landfills, it could also generate $20 million over 35 years.

But reducing one negative environmental impact could create another one, according to Fraser Valley residents, who fear that Metro Vancouver's plans for a new $400 million waste-to-energy incinerator – in addition to an existing one in Burnaby – would have a dramatic impact on the valley's airshed, which already receives pollution from Metro Vancouver. Adding a second incinerator worries Fraser Valley residents, and for good reason, according to University of British Columbia professor Douw Steyn, who has studied air quality in the region: "Chilliwack and Hope are now barely in compliance with the Canada-wide standard for ozone."

An existing incinerator in Burnaby already burns 240,000 tonnes of waste each year and accounts for 0.04% of all emissions in the lower Fraser Valley. The proposed new incinerator would burn 370,000 tonnes of waste annually.

Issue 1216, February 12-18

MINING

FOI documents show political spin behind 2008 uranium moratorium

Documents obtained by Business in Vancouver under a Freedom of Information request show bureaucrats and politicians trying to put a positive spin on a uranium and thorium mining ban that the government knew would be unpopular with the mining industry and which resulted in the province being successfully sued for $30 million.

After Victoria banned uranium and thorium mining in 2008, Boss Power Corp. sued the B.C. government for taking away its rights to develop its Blizzard uranium deposit near Kelowna. In an out-of-court settlement, the province agreed to pay Boss Power $30 million.

Issue 1217, February 19-25

POLITICS

What have the Liberals done for B.C. lately?

B.C.'s mining, technology and construction sectors give the BC Liberals a thumbs-up for policies affecting their industries in the second part of a provincial election series that wins Business in Vancouver a Jack Webster Award in October.

Asked what the BC Liberal government had done for their sectors, Gavin Dirom, president and CEO of the Association for Mineral Exploration BC, says rising commodities prices and largely mining-friendly public policy have driven major mining industry gains in B.C. since the B.C. Liberals came to power in 2001.

Bill Tam, CEO of the BC Technology Industry Association, says B.C.'s tech sector was a $12 billion industry, employing 69,000 people, in 2001, and that it has grown more than 50% under a Liberal government. Meanwhile, improving private-sector investment climate and a housing boom helped the construction sector post some of the strongest job gains of any other sector in B.C.

Issue 1217, February 19-25

FILM

Beleaguered domestic film sector scores small wins

While B.C.'s film service industry continues to lament lost Hollywood work, the province's indigenous film and TV sector shows signs of making a small comeback, according to the province's domestic film association.

Liz Shorten, spokeswoman for the B.C. branch of the Canadian Media Production Association, attributed the rise in the B.C.-based television sector to millions of dollars of "benefits money" earmarked for Canadian content flowing out of BCE Inc.'s $2.45 billion acquisition of CTV Inc. and Shaw Communications Inc.'s $2 billion takeover of CanWest Global Communications Corp.'s broadcast interests. Both deals were done in 2010.

Issue 1217, February 19-25

MINI-LIST

Biggest real estate deals of 2012

Issue 1221; ranked by total value of the deal

1. Bentall V

2. Hopewell Distribution Centre Phases 1 and 2

3. Plaza at New Westminster Station

4. Nanaimo North Town Centre

5. C.W.S. Portfolio

MARCH PROFILES

Mike Waites, CEO, Finning International (issue 1222, March 26-April 1)

POLITICS

B.C. government assailed over its plans to sell real estate to balance budget

The B.C. government's plan to balance its 2013-14 budget by selling $775 million in real estate and undefined "financial instruments" intrigues industry insiders, confuses accountants and energizes critics.

Finance Minister Mike de Jong's refusal to name each of the 76 properties that the government intends to sell, for "strategic" reasons, exacerbates the situation and adds fuel to critics' fire.

"You're either listing them for sale or you're not," NDP finance critic Bruce Ralston tells Business in Vancouver. "Maybe there's a timing issue but [de Jong] has been very vague about what is for sale."

The government listed 10 properties for sale and named another five that it intended to market. That left 61 unnamed.

Issue 1219, March 5-11

CULTURE

Art gallery flush with pledges in lead-up to relocation

Even though Vancouver Art Gallery(VAG) officials had not started raising funds for a new $300 million, 310,000-square-foot facility, they say they already have approximately $93.7 million in contributions and pledges.

VAG director Kathleen Bartels plans to present her case to Vancouver city council to persuade the city to either donate or agree to a cheap lease agreement so the VAG could use two of the three acres in the city block known as Larwill Park, which is bounded by West Georgia, Cambie, Dunsmuir and Beatty streets.

If the city donates the site, it would essentially be giving VAG the equivalent of a $200 million donation, says realtor and former VAG director Bob Rennie.

Bartels adds she's confident that, if the city donated the land, VAG could raise the remaining $206 million needed to build the facility.

Issue 1219, March 5-11

POLICY

Railway monopoly legislation sparks debate

A bill to right a power imbalance between shippers and rail companies receives mixed reviews.

The Delta-based Western Canadian Shippers' Coalition (WCSC) presses for some amendments – but concedes that, even in its current form, the bill is a win for shippers.

"The fact that [federal Transport Minister Denis Lebel] acknowledged ... that there is this imbalance between the shippers and the railways – and that this is Parliament's attempt to do something about it – has value for us, because it's been a long time coming," said WCSC chairman Ian May.

The draft bill, released in December, is the government's answer to the federal Rail Freight Service Review, which was launched in 2008 in response to shippers' concerns about rail service.

The bill's release triggers backlash from Canadian National Railway Co. and Canadian Pacific Railway Ltd., which oppose the regulations.

Issue 1220, March 12-18

ENVIRONMENT

Kitimat could face sky-high pollution from B.C. energy boom

An air pollution expert at the University of British Columbia's (UBC's) department of earth, ocean and atmospheric sciences confirms that the Gitga'a First Nation has good reason to be concerned about a lack of an integrated impact study on Kitimat's airshed.

The concerns arose over all the industrial activity planned for Kitimat, which UBC professor Douw Steyn says was "among the most constrained airsheds on the planet."

The potential industrial projects that could add pollution to Kitimat's airshed include an expanded aluminum smelter, hundreds of oil and LNG tankers and a proposed oil refinery.

As detailed by Business in Vancouver, the B.C. government requires airshed modelling for specific proposals but does not require modelling on the cumulative impacts of any other potential industries.

In March, the B.C. government confirms it has no plans to do cumulative modelling. But in October, the government announced it would conduct a cumulative impact study.

Issue 1220, March 12-18

SPORTS

Inside Performance hoping to be a big hit in the baseball business

An indoor high-performance baseball training centre that was in danger of being shelved due to a lack of financing is rescued by a group of local investors that includes Blair Peters, co-founder of Vancouver animation studio Studio B Productions.

Peters tells Business in Vancouver that, ever since Studio B was bought by DHX Media in 2007, he's been thinking about building an indoor batting cage for kids. When he heard about Inside Performance, a baseball training facility in North Vancouver that was in financial trouble, he came to its rescue.

Peters and four others pooled their funds – $5,000 to $10,000 each – to keep the space open and develop a long-term business plan.

"We didn't need another machine shop or whatever was going to come in here," Peters says. "We were adamant that this place had a value to the community in North Van."

Issue 1221, March 19-25

RETAIL

More online retailers see value of bricks and mortar

Vancouver e-commerce ventures such as Indochino are busy fusing sales strategies and creating a hybrid model that includes online and in-store purchases.

As street-front retailers reduce store size, opt for kiosk-style outlets within stores and increase marketing budgets for online sales, e-commerce ventures begin setting up pop-up stores that are open for weeks or months, not just days.

Vancouver-based online suit-seller Indochino launched its first pop-up store in Vancouver in November 2011 and has since opened seven other pop-up stores in cities such as San Francisco, New York and Chicago.

Vancouver's other major e-commerce venture, Coastal Contacts, was also scouting around for potential pop-up stores. It opened a new 1,000-square-foot store under its Clearly Contacts brand on Robson Street between Burrard and Thurlow streets on March 21.

Issue 1222, March 26-April 1

FORESTRY

Interior mills outside beetle-kill zone draw investment

Areas of the interior that were largely spared from the pine beetle blight begin attracting investment from large forestry companies again.

Canfor announces plans to invest $80 million in its Mackenzie and Elko sawmills this year and reopened its shuttered Radium mill last fall.

Meanwhile, Interfor invests $26 million to rebuild its Grand Forks sawmill and sinks another $5 million into its Castlegar mill.

Issue 1222, March 26-April 1

MINI-LIST

Biggest stock and debt deals of 2012

Issue 1223; ranked by size of deal

1. Ivanhoe Mines Ltd.

2. Teck Resources Ltd.

3. First Quantum Minerals Ltd.

4. Teck Resources Ltd.

5. Eldorado Gold Corp.

APRIL PROFILES

LAWSUIT

Evergreen Line heads to court

Winemaker Andrew Peller Ltd. (APL) becomes the latest company to sue the B.C. government over alleged "unreasonable delay" and unnecessary land devaluation during the land expropriation process for the Evergreen Line.

Two lawyers tell Business in Vancouver that they also have clients who are suing Victoria for damages they claim to have suffered during the expropriation but decline to reveal names because of client confidentiality.

APL, however, is one of the area's largest landowners and is likely seeking more compensation than others given that the province's alleged actions have likely derailed the company's overall plan for redeveloping its 5.24-acre site.

Issue 1223, April 2-8

ENVIRONMENT

Auditor general and province in almighty carbon clash

The B.C. government rejects a damning auditor general's report that concludes the B.C. government's carbon-neutral policies have failed and that industry has been getting a free ride on the carbon-credit gravy train at the expense of cash-strapped school boards and hospitals.

John Doyle's report confirms what a series of Business in Vancouver stories concluded: carbon reduction projects being funded by the public through the Pacific Carbon Trust would have occurred anyway.

That means they failed the government's own additionality test, which was set up to ensure that money be used to fund only those projects that financial or technical hurdles would otherwise have derailed.

Issue 1223, April 2-8

RESOURCES

Industry recovery revives key B.C. forestry event

Another sign that forestry is back on its feet: after a two-year hiatus, the Council of Forest Industries (COFI) conference returns to Prince George.

While the conference once attracted approximately 1,000 delegates to a two-day annual event, organizers were forced to cancel the event in 2009 when they could not find enough sponsors or delegates.

"We decided to put the convention into a hold mode until the recession eased a bit," says Doug Routledge, vice-president of forestry for COFI.

"That of course has been a longer period of time than we had hoped."

With lumber prices rising, the U.S. housing market recovering and sustained demand from Asian markets, Routledge says there's more enthusiasm within the industry.

Issue 1223, April 2-8

ENERGY

B.C. LNG developers stalled in pricing stalemate

China has a massive growing demand for natural gas; Russia has vast gas reserves.

The fact China has inked no long-term gas supply contracts with its neighbour is worth noting by oil and gas executives who want to build liquefied natural gas (LNG) plants, says a British energy expert.

Russia has cut itself off from its most logical gas customer for the same reasons that LNG projects proposed for B.C. are at something of a standstill: they're insisting Asian customers pay gas prices that are indexed to oil prices.

"The Russians have been sticking doggedly to the aspiration of having an oil-indexed price," Peter Hughes, a London-based energy consultant, says during a panel discussion at the Pacific Energy Summit in Vancouver.

Issue 1224, April 9-15

RETAIL

High-end retail centre set to transform Alberni Street

Concord Pacific Ltd. announces plans to build a high-end retail centre at the corner of Alberni and Thurlow streets that some believe will be the linchpin in transforming the street into a hub for affluent shoppers.

According to a source close to the deal, global diamond mining and retail giant De Beers will open its first Canadian store at the corner later in 2013.

The store would be part of the Carlyle complex, which, when completed, will include other high-end retail chains.

New York-based Tory Burch plans to open a store this fall at the Carlyle, the chain's Calgary store manager, Stephanie Koo, confirms to Business in Vancouver.

Issue 1224, April 9-15

RESOURCES

Owners of destroyed Prince George mill forge ahead with rebuild

The owner of a Prince George sawmill that was destroyed by an explosion and fire says the decision to rebuild it was based on several certainties – and despite one big unknown.

The company's insurance claim is approved. Greg Stewart, president of Lakeland Mills sawmill's owner, the Sinclair Group, says the company is also confident it has enough timber supply to run the mill, because it holds 750,000 cubic metres of timber in volume-based tenures. Many of its employees are ready to return to work.

But WorksafeBC's investigation of the accident presents a huge unknown for the company. After investigating both the Burns Lake and Lakeland accidents, the safety organization decides to forward evidence to Crown prosecutors.

The decision creates uncertainty for Lakeland and its employees, says Frank Everitt, president of the United Steelworkers Union local in Prince George.

Issue 1224, April 9-15

REAL ESTATE

Sky-high property costs stalling much-needed densification of Metro Vancouver's industrial lands

Metro Vancouver's limited industrial land supply appears to be a little less dire as existing properties host more intensive forms of development, according to one broker.

Pointing to the raft of large-format, high-ceiling warehouses under construction around the Lower Mainland, often on older, low-density industrial sites, CBRE Ltd. senior vice-president Gurch Ollek says the market will respond to the demand for new development opportunities.

"I'm not a believer in an industrial land shortage. My view is that we're going to have opportunities come up like Interfor [in New Westminster] – that was a sawmill, already an industrial use, frees up 50 more acres for industrial use."

Issue 1225, April 16-22

MAY

MINI-LIST

Top 100 tech companies in B.C.

Issue 1228; ranked by the number of employees in B.C. in 2013

1. Telus Corp.

2. Shaw Communications Inc.

3. Rogers Communications

4. Lifelabs BC

5. Electronic Arts

May profiles

Hospitality and tourism

Groups vie for Art Gallery Space

Potential future tenants vying for space at the current Vancouver Art Gallery site at Robson Square launch bids for public support.

But a lengthy City of Vancouver public consultation process will doubtless precede any approval of the Museum of Vancouver, University of British Columbia or any other potential tenants for the 125,000-square-foot, 107-year-old former courthouse.

Similarly, a proposal to build a 1,950-seat concert hall concert hall under the art gallery site's front lawn will get plenty of council scrutiny and public consultation before its advocates get approval to try to raise the estimated $200 million necessary to make that dream a reality.

Issue 1228, May 7-13

Election 2013

NDP fails to win over B.C. business vote

If it were up to British Columbia's business owners and executives, the BC Liberal Party would win the upcoming provincial election – by a landslide.

According to an Ipsos Reid poll commissioned by Business in Vancouver, 57.1% of respondents would vote for the Liberals. That percentage contrasts starkly with the 17.3% who would support the NDP. A further 6% favoured the BC Conservatives and 4.8% supported the Greens.

The result is also in huge contrast to polling numbers for the general population. Numbers from ThreeHundredEight.com on May 2 showed the Liberals trailing at 33%, having recently bumped up three points from 30%, as of April 26. NDP support stood at 46.8%.

Issue 1228, May 7-13

Franchising

Brian Scudamore launches third franchise brand

Franchise entrepreneur Brian Scudamore creates a third brand as part of a strategy to provide as many services as possible to an overlapping customer base and reap cost savings along the way.

Best known for founding 1-800-GOT-JUNK, Scudamore disrupted the junk removal sector, which is dominated by small companies staffed with casual employees who don't wear uniforms.

He then bought a majority stake in the WOW 1 DAY painting franchise in 2011.

On May 1, Scudamore launched You Move Me, which provides moving services within a metropolitan area.

Issue 1229, May 14-20

Gaming

Local game-makers winning in new space

Vancouver loses some bigger game studios to Eastern Canada in the wake of Electronic Arts Inc. closing two of its Vancouver studios – PopCap Games and Quicklime Studios.

But several smaller studios crop up in their wake – most of which are focused on the mobile and social media game space.

Issue 1229, May 14-20

Hospitality and tourism

Established restaurateurs launch streetside service

Vikram Vij, Harry Kambolis and other high-profile restaurant owners join Vancouver's burgeoning food truck scene to boost brand awareness and offer loyal customers another dining option while taking advantage of presumed lower costs.

However, restaurateurs who have launched food trucks find it tougher than expected to rack up profits – despite the popular misconception that operating a food truck is a financial gravy train.

Issue 1230, May 21-27

Energy

Environmentalists push for B.C. carbon budget

Premier Christy Clark promises to balance the provincial budget using $100 billion in revenue from B.C.'s liquefied natural gas industry.

But can her newly re-elected government balance the fiscal books without incurring a greenhouse gas deficit?

To answer that question, Andrew Gage, a lawyer with West Coast Environmental Law, says B.C. needs a carbon budget, similar to the one adopted by the U.K.: "we have targets, but we have no mechanism to plan for how we're going to achieve them."

Issue 1230, May 21-27

Real Estate

Sky-high property costs stalling much-needed densification of Metro Vancouver's industrial lands

The strata corporation representing homebuyers at the Shangri-La Hotel Vancouver sues developers, marketers and lawyers for alleged "misrepresentations" that devalue home values and involve unexpected costs at Vancouver's tallest building.

The strata corporation's biggest concerns relate to its sharing the high-end development with a hotel.

The strata corporation claims the developers led home-buyers to believe they would have a separate entrance with a concierge; three passenger elevators for strata members' exclusive use; and a fitness room, function room and other amenities.

The strata's lawsuit also alleges that its members never "contemplated that rules and regulations would be unilaterally imposed by the hotel component."

Issue 1230, May 21-27

Finance

Proposed law to pre-empt shareholder ambushes

Canadian companies finally take legal matters into their own hands to prevent companies from being ambushed by activist shareholders. Over the preceding few months, more than 100 public companies institute advance notice policies that require shareholder groups to give a company's board of directors a specified time to review proposals and dissident board nominees.

At a McMillan LLP seminar in Vancouver, Paul Davis notes that such policies have been around for decades and have been used by U.S. companies for more than 20 years.

Issue 1231, May 28-June 3

Finance

Delusions of household wealth on the rise in Canada

British Columbians say they're among the most optimistic in the country about the state of their financial wealth.

According to CGA-Canada's annual survey of household finances, 61% of B.C. residents feel they are "living comfortably or doing all right" compared with 56% of average Canadians and 51% of Ontario residents.

British Columbians are also more satisfied with their pace of household wealth accumulation than average. Nearly half say they had money left over in the past year after paying for essential expenses, compared with 42% of Canadians and 38% of Ontarians.

But while B.C. residents are optimistic about their finances, that optimism isn't necessarily based on fact. About 43% of B.C. respondents to the survey say they seldom or have never calculated the value of their wealth, compared with 51% of Canadians and 49% of Ontario residents.

Issue 1231, May 28-June 3

RESEARCH

Canadian business innovation lagging behind competitors: science council

Canada is becoming a laggard in technology, innovation and research and development investment, according to a biennial Science, Technology and Innovation Council (STIC) report.

It continues to do well academically, but Canadian businesses are investing far less in R&D and new technology than business in other economies, placing it 25th among 41 nations, STIC's "State of the Nation 2012" concludes.

While a recent reorganization of the National Research Council that focuses resources more on applied science could help bridge the gap, it should not be at the expense of pure science, says Simon Pimstone, CEO of Vancouver's Xenon Pharmaceuticals and co-chairman of the STIC report.

"Government investment in basic research is critical. Basic research is the beginning of the pipeline. It's a requirement to enable the higher education system and industries to be successful in Canada. It's absolutely critical that Canada continues to invest in basic research."

Issue 1231, May 28-June 3

MINI-LIST

Top 100 private companies in B.C.

Issue 1233; ranked by 2012 revenue

1. Jim Pattison Group

2. Best Buy Canada Ltd.

3. H.Y. Louie Co. Ltd.

4. Westcoast Energy Inc.

5. Ledcor Group of Companies

Top 100 public companies in B.C.

Issue 1233; ranked by 2012 revenue

1. Telus Corp.

2. Teck

3. Finning International Inc.

4. Goldcorp Inc.

5. West Fraser Timber Co. Ltd.

JUNE PROFILES

PORTS AND SHIPPING

Coal conundrum: Employment vs. environment

It's under fire from environmentalists, residents and a municipal council, but Fraser Surrey Docks' proposed coal expansion has a significant upside for the local economy.

So says the marine terminal's CEO Jeff Scott, who points out that the project will be safe and provide much-needed jobs for a workforce that has shrunk by more than half in the past five years.

In a Business in Vancouver interview, Scott stresses again that the controversial coal expansion proposal – which includes installing and unloading pit, reworking existing rail lines and adding a barge loader – will add 50 cumulative jobs at the dock and related companies.

Issue 1232, June 4-10

DEVELOPMENT

Downtown Eastside social enterprises go to bat for business

A Vancouver developer with years of experience working on projects in the Downtown Eastside says the anti-gentrification pendulum is starting to swing the other way as more moderate community voices are being heard above the prevailing confrontational rhetoric.

"[I'd like to encourage] having some of the money from those developments help facilitate low-income housing and training and employment, instead of trying to circle the wagons around the neighbourhood," says Reliance Properties president Jon Stovell.

A loose coalition of social enterprise businesses, known as the Inner City Economic Strategy, has been working quietly behind the scenes with developers and City of Vancouver staff. The group is made up of Embers, Potluck Society and Mission Possible, along with the Hastings Crossing Business Improvement Association and the Vancouver Board of Trade.

"Our partners are the developers," says Marcia Nozik, CEO of Embers, a construction temp agency and renovation business.

Issue 1232, June 4-10

INFRASTRUCTURE

Cities' crumbling infrastructure threatens local economies

The collapse of the I-5 bridge in Washington and a Montreal boil-water advisory that affected 1.3 million residents become the latest examples of how failing infrastructure affects local economies, says the author of several books on municipal government.

Municipal leaders cautiously applaud the federal government for committing $53 billion over 10 years for infrastructure projects, an amount that was included in the March budget and later announced again during the Federation of Canadian Municipalities (FCM) conference in Vancouver.

Gord Hume, an Ontario-based municipal government adviser, tells Business in Vancouver that, considering the huge need for infrastructure upgrades and repairs across the county, the amount is almost laughable.

According to the FCM, municipalities receive 8% of each tax dollar but are responsible for funding 60% of infrastructure.

While the FCM pegs the "infrastructure deficit" at $200 billion, Hume says it's much more: "My guess is $1 trillion."

Issue 1233, June 11-17

PORTS AND SHIPPING

Rebound in shipping volumes raises port optimism

The environment takes centre stage at Port Metro Vancouver's annual general meeting, but beyond concerns over controversial coal expansions, a perceived lack of community engagement and suspected increases in port traffic, the meeting highlights a significant development in the port authority's 2012 cargo tonnage stats: it has almost recovered from pre-recession levels.

In 2012, the port moved 124 million tonnes of cargo, up from its 102 million low of 2009. Prior to the 2008 recession, the port moved 128 million tonnes.

Total containers reached 2.7 million in 2012, topping 2007's 2.49 million.

Nearly $84 million in bulk products – coal, grain and potash, for instance – were moved by the port in 2012, 6% more than the almost $78.7 million it handled in 2007.

However, break bulk products continued to struggle. Since 2007, the movement of goods such as lumber, wood and pulp has dropped 37%.

Issue 1233, June 11-17

SMALL BUSINESS

City commercial real estate rent controls pushed

Small-business owners lobby B.C.'s new Christy Clark government to intervene in the marketplace and limit rent increases on commercial properties.

The proposed changes to the province's Commercial Tenancy Act would kick in when leases for small-business owners expire and would be aimed at providing property rent stability for independent businesses.

But commercial rent control proposals draw fire from free enterprise advocates.

Issue 1234, June 18-24

RETAIL

Plans to delist from TSX and departure of CEO fuel local Lululemon uncertainty

Lululemon Athletica Inc.'s surprise announcement that CEO Christine Day is leaving and that the company plans to delist its shares from the Toronto Stock Exchange on June 24 overshadowed strong earnings and sent its stock plunging 22% during the next two trading sessions.

Many analysts downgraded the company's stock (TSX:LLL; Nasdaq:LULU), citing a "void" at the top because the company also has three vacant vice-president positions.

The company reacted swiftly to quell local fears that the new leaders at the yoga-wear giant would move the company's headquarters closer to its largest institutional investors.

But Therese Hays, Lululemon's vice-president of communications, stresses that "there is no intention of leaving Vancouver."

Issue 1234, June 18-24

POLICY

Business owners fear losses from bike lane initiative

Small-business owners along an up-and-coming Chinatown street brace themselves for the loss of on-street parking when the area's much-publicized bike lanes are built.

The City of Vancouver plan to install a separated bike lane on part of Union Street between Main and Gore eliminates on-street parking on the street's north side. The city says the changes, part of an Adanac Bikeway upgrade, are needed to make the popular bike route safer.

But the bike lane plan raises a host of area business concerns.

"They're reducing access to a neighbourhood that's already pretty hard to access, given the viaduct's on one side of the street and you can't really loop around," Kleah Michnik, owner of clothing shop Charlie and Lee, tells Business in Vancouver.

Issue 1235, June 25-July 1

ENERGY

First Nations demand answers from Clark

A council representing eight First Nations communities with more than 75,000 square kilometres of land in northern B.C. says natural gas projects proposed for their territories will face "challenges ahead" if Premier Christy Clark doesn't meet with them to discuss the potential impact of the developments.

Chief Terry Teegee, head of the Prince George-based Carrier Sekani Tribal Council, tells Business in Vancouver that his group has been kept in the dark about the scope of natural gas pipelines planned for members' areas, environmental impacts and revenue-sharing possibilities.

Issue 1235, June 25-July 1

MINI-LIST

Top 100 highest-paid executives in B.C.

Issue 1239; ranked by total compensation in 2012

1. Paul Wright, CEO

2. Darren Entwistle, president and CEO

3. Rick Van Nieuwenhuyse, president and CEO

4. Don Lindsay, president and CEO

5. Charles Jeannes, president and CEO

TRANSPORTATION

Potential traffic chaos raises business concerns

The City of Vancouver's plan to replace the Georgia and Dunsmuir Street viaducts has business groups intrigued but still urging caution and more study to ensure the new design won't result in traffic chaos.

On June 26, council voted to spend $2.4 million to continue working on consultation and logistics for the project. A final vote on whether to remove the viaducts is not expected until June 2015.

According to the proposal, both viaducts would be removed, and Georgia Street would connect with a remodelled Pacific Boulevard via a ramp. Pacific Boulevard would be pushed north and combined with Expo Boulevard to run under and alongside the SkyTrain track.

Issue 1236, July 2-8

ASIA PACIFIC

Investors grapple with ethics of Chinese companies

Investors are told they can reduce the risks of entering the Asian market by looking at the environmental, social and governance (ESG) record of potential investments and partners.

Jaideep Singh Panwar, manager of research products (Singapore) for Sustainalytics, notes at 2013's Social Investment Conference in Vancouver that nearly two-thirds of companies in Asia and more than 75% of companies in China ranked the lowest in the world with respect to achieving ESG benchmarks. Companies in Hong Kong were nearly as bad, with more than two-thirds ranking poorly using ESG metrics.

Not surprisingly, more than half of European companies rank high in having progressive ESG policies and practices.

The relative lack of progress around ESG issues in Asian companies is partially because Asian business leaders – and institutional investors in the region – don't see it as helping the company's bottom line.

Issue 1236, July 2-8

TECHNOLOGY

Local firm launches smart sunglasses for athletes

If you're a gadget lover, you'll want the new Google Inc. Glass computerized eyewear – when it becomes available – on your next trip to France.

You can use its map to find the Eiffel Tower and its translation function to communicate in French, and also take vacation photos and video.

But if you're racing in the Tour de France – or are a base jumper who plans to leap from the Eiffel Tower – you'll want a pair of Recon Jet sunglasses, which will start shipping around Christmas.

Made by Vancouver's Recon Instruments Inc., the Jet glasses are the latest in wearable smart devices.

Issue 1237, July 9-15

HOSPITALITY AND TOURISM

Mountain bike events attract tourist dollars to B.C.

The tourism sector hosts more events using B.C.'s natural beauty to attract mountain bikers and what is believed to be their higher average disposable income.

The eight-day BC Bike Race, which ended July 6, draws 550 riders from 33 countries.

The race covers 328 kilometres of mostly rainforest trails on Vancouver Island, the Sunshine Coast and in areas near Squamish and Whistler.

It pumps nearly $4 million in direct spending into the B.C. economy.

Elsewhere, mountain bike races were staged at Sun Peaks July 6 and 7, and on July 21, cross-country mountain bikers met for the Sun Peaks North Face Dirty Feet XC Mountain Bike Marathon.

Issue 1237, July 9-15

ENERGY

Report finds Canada ready for increased tanker traffic

Canada has the experience and expertise to handle a doubling of oil tanker traffic on the West Coast if major projects such as Kinder Morgan's twinned Trans Mountain pipeline and Enbridge's Northern Gateway are approved, a sweeping new report finds.

Published in late June, Assessing Marine Transport for Oil Sands on Canada's West Coast is part of the Oil Sands Dialogue series produced by Alberta-based consulting firm HIS.

Contributing to the report were several government departments, including the BC Ministry of Environment, Washington State Department of Ecology and Alberta's Department of Energy and numerous oil and gas companies such as BP Canada, Imperial Oil and Suncor Energy.

Issue 1237, July 9-15

HOSPITALITY AND TOURISM

'Floating' patio option aimed at boosting sales and making better use of space

City council's push for bigger restaurant patios with longer operating hours spawns a pilot project in Gastown that allows a restaurant's patio to be separated from its kitchen by a public sidewalk.

Vancouver council plans on July 23 to debate mayor Gregor Robertson's motion to have city staff work with industry to devise "revenue-neutral" proposals for increasing "patio hours and space for establishments that have a track record of good behaviour."

Robertson tells Business in Vancouver that he'd like to see the Gastown patio pilot expanded to other restaurants in the city.

Issue 1238, July 16-22

ENERGY

Hydro faces $126m costs from dam

Faced with growing criticism over a stable of increasingly pricey capital projects and a ballooning debt, BC Hydro is also paying a $126 million bill to renovate a decades-old dam that generates no electricity for the Crown corporation.

According to its updated service plan, BC Hydro plans to replace the spillway gates at the Hugh Keenleyside Dam near Castlegar "to increase public and employee safety and ensure the gates meet flood discharge reliability requirements."

Completion of the job is expected in the fall of 2016.

The goal of the project – to ensure Keenleyside's flood discharge requirements are maintained – is in line with the dam's origins. But why BC Hydro is charged with paying for that project is less clear.

Issue 1238, July 16-22

ENERGY

Enbridge tech studies irk northern communities

Northern Gateway's proponent raises hackles in northern communities over a pre-emptive initiative that involves tree-clearing and drilling along the route of the controversial multibillion-dollar pipeline, which has yet to be approved.

Enbridge Inc. has submitted 32 applications to the B.C. government to conduct various technical studies along the proposed route.

Enbridge spokesman Ivan Giesbrecht tells Business in Vancouver that the applications – all of which were filed to complete work such as geotechnical and geophysical surveys, not construction – are an expected part of the pipeline assessment process.

The data gleaned from the studies will also help Enbridge determine a final cost for the pipeline.

Issue 1239, July 23-29

HOSPITALITY AND TOURISM

Victoria to take another shot at modernizing province's liquor laws

B.C.'s hospitality industry wants another round of changes to what Premier Christy Clark has called the province's "antiquated liquor laws."

To that end, Victoria plans to start consultations with industry on how to modernize its liquor legislation.

Legalizing happy hours so restaurant and bar owners can change the prices of drinks during the day is one of the proposals the B.C. government is considering.

Issue 1239, July 23-29

EMPLOYMENT

Partnerships building band business benefits

In 1989, the unemployment rate on the Tsleil-Waututh reserve in North Vancouver hovered between 60% and 80%. Today, it's 3%. The First Nation touts the benefits of an innovative strategy it says has allowed its members to share in the benefits of projects like the Evergreen Line and Seaspan's federal shipbuilding contract.

"It's been going so well that it's become the new way to do business with First Nations," says Leonard George, director of economic development for the Tsleil-Waututh Nation.

Issue 1240, July 30-August 5

MINI-LIST

Biggest B.C. organizations managed by women

Issue 1241; ranked by total number of staff in B.C.

1. Northern Health

2. Providence Health Care

3. TD Bank Group

4. BMO Financial Group

5. Vancity

AUGUST PROFILES

FISHERIES

Local fishery caught by Cohen report inaction

Fraser River fishermen remember 2009 for all the wrong reasons.

"The bottom fell out of the fishery for everyone," says Ernie Crey, a fisherman and former head of the Sto:lo fisheries program.

Only 1.3 million sockeye returned to the Fraser that year, a disastrous run that followed years of low salmon returns.

In response, the federal government appointed a judicial inquiry, the Cohen Commission, to investigate the causes of the declining fish stocks. The inquiry took two years and cost $26 million.

But nine months after Justice Bruce Cohen tabled his final report, including 75 recommendations, Crey and other fishermen are still waiting for action.

Issue 1241, August 6-12

HOSPITALITY AND TOURISM

Consumers increasingly choose non-BCVQA wine

Despite much ado about the rise of world-class B.C. table wine, sales in the province of wines marked with the British Columbia Vintners Quality Alliance (BCVQA) symbol are rising slower than sales for non-BCVQA, usually cheaper B.C. wines. And sales of BCVQA red wines have dropped, according to the British Columbia Liquor Distribution Branch.

In the 12 months ending June 30, sales of non-BCVQA wines grew 5.6% from a year earlier while BCVQA sales were up only 1.6%.British Columbians spent almost $390 million on the province's red, white and rosé wines in the 12 months ending June 30. Of that, only $173 million, or 44%, was spent on B.C. wines carrying the BCVQA mark.

Issue 1241, August 6-12

REAL ESTATE

Surrey rated B.C.'s best city for investors

Surrey is starting to pull away from Vancouver as the preferred city for real estate investors, according to the Real Estate Investment Network's (REIN) 2013 report on B.C.'s best 10 investment towns.

Surrey topped the list for the fourth year running while Vancouver fell off the list for the first time in five years.

Population growth, job growth and affordable real estate are the main reasons Surrey is a great place for real estate investors who intend to rent their properties, REIN CEO Don Campbell tells Business in Vancouver.

Vancouver, on the other hand, dropped off the list primarily because its real estate is so expensive.

Issue 1242, August 13-19

ENTERTAINMENT

PNE retools to boost flagging attendance at annual fair

The Pacific National Exhibition (PNE) embarks on a strategy to increase attendance after years of roller-coaster interest in B.C.'s biggest summer fair.

The Fair at the PNE drew 763,689 people in 2012 – its lowest attendance since 2008 and down from 2011's 803,598 attendees. That's significantly less than the average annual attendance of 840,000 during the past 10 years.

PNE CEO Mike McDaniel says high costs and increased competition are two of the main reasons for the fair's declining attendance.The PNE planned to boost 2013 numbers by chopping adult admission and parking fees from $20 in 2012 to $16.

Issue 1242, August 13-19

ENERGY

Industry raises B.C. grid gripes

Large new industrial customers in B.C. needing electricity are forced to spend too much money and wait too long to be connected to the grid, says an association representing major power consumers.

So when Energy Minister Bill Bennett announced his decision to expand the mandate of a provincial task force investigating B.C.'s industrial electricity policies to include an analysis of how customers requiring huge amounts power are interconnected, the Association of Major Power Consumers of BC (AMPC), which has been lobbying for changes to industrial interconnection policies for years, lauds the move.

Issue 1243, August 20-26

TRANSPORTATION

Airport investments landing business opportunities

Because B.C.'s regional airports are increasingly able to service larger planes and land them reliably in poor weather, more flights are being scheduled between smaller B.C. communities and major centres and opening up business access across the province.

WestJet Airlines Ltd. launched daily flights between Nanaimo Airport and Calgary International Airport in June through its regional WestJet Encore subsidiary.

WestJet Encore simultaneously launched direct daily flights between Fort St. John's North Peace Regional Airport and Calgary and between Fort St. John and Vancouver International Airport.

Issue 1243, August 20-16

HOSPITALITY AND TOURISM

Hoteliers target cyclists with bike-friendly services

Vancouver hotels increasingly target revenue from cyclists as separated bike lanes and other infrastructure improvements help establish Vancouver's reputation as a bike-friendly city.

For example, the St. Regis Hotel's sponsorship of the September 7 RBC GranFondo Whistler, the annual bike race between Vancouver and Whistler, includes accommodation with race registration, secure bike parking and a large race-day breakfast.

Other hotels jump on the bandwagon to lure cyclist dollars.

The Fairmont Pacific Rim, for example, hires a "bike butler" who provides tune-ups, helmets, locks, water, cycling maps, directions and tips.

Issue 1244, August 27-September 2

FINANCE

Securities regulators keep lid on social media

Beware of tweets bearing tips.

While hundreds of publicly traded companies in B.C. and across the country continue to hop on the social media bandwagon by setting up corporate Twitter accounts, posting YouTube videos and managing their own LinkedIn profiles and Facebook pages to engage with customers and investors, they're still required to provide company news the old-fashioned way: via a press release.

That's not the case in the United States, where U.S.-listed companies can use social media to disclose key business information as long as they've told investors that they'd be disclosing that information through social media.

Issue 1244, August 27-September 2

MINI-LIST

Fastest-growing companies in B.C.

Issue 1248; ranked by percentage growth in revenue between 2008 and 2012

1. Timmins Gold Corp.

2. Nevsun Resources Ltd.

3. B2Gold Corp.

4. OncoGenex Pharmaceuticals

5. Avigilon

SEPTEMBER PROFILES

LEISURE

Locals build world's largest playground

Metro Vancouver companies are revealed as world leaders in the booming playground construction sector.

Langley-based Iplayco Corp. Ltd. built the soft play area for Billy Beez, a 25,000-square-foot indoor entertainment centre for children that's managed by the Arabian Centres Ltd. Co. and located in Saudi Arabia's Mall of Dhahran. The playground opened on May 25.

As a result, Iplayco is on track to generate more than $15 million in 2013 sales – its biggest year ever.

Port Coquitlam's Orca Coast is similarly poised for its best year with $3.5 million in sales. And Richmond water-park builder WhiteWater West Industries Ltd. generates approximately $100 million annually, including sales from its playground manufacturing division PrimePlay.

September 3-9, issue 1245

INVESTMENT

Securities fraud still largely undetected in Canada and the U.K. – CFA Institute study

A study commissioned by the CFA Institute and conducted at York University's Schulich School of Business finds that there were more litigated securities fraud cases involving TSX-listed companies than there were for companies listed on the TSX Venture Exchange between 2005 and 2011.

Issue 1245, September 3-9

ENVIRONMENT

Food set to feed new Metro Vancouver energy opportunities

A Richmond composting business is set to fire up the energy component of its 9.3-hectare facility and turn rotting food into electricity.

Harvest Power invested tens of millions of dollars to import anaerobic digesters from Germany and set up the energy recovery system, which captures the biogas byproduct of decomposing food and generates electricity and thermal heat.

Issue 1246, September 10-16

EDUCATION

B.C. private school tax fight looms

Independent schools prepare to battle B.C. municipalities that want to impose property taxes on their holdings for the first time in five decades.

Peter Froese, executive director of the Federation of Independent School Associations of BC (FISA-BC), says it's a struggle his 300 members can't afford to lose.

Although only West Vancouver, Victoria and Nelson say they're considering taxing independent schools, the federation is afraid that other municipalities will quickly follow suit if the three are successful.

Issue 1246, September 10-16

POLITICS

Business blasts recycling scheme

An industry-led recycling organization bows to numerous complaints from small-business owners who say they were pressured to sign up for services without knowing the cost.

However, Multi Material BC (MMBC) still faces major pushback from B.C. mayors who complain they're also being pushed to sign up for one-sided contracts without enough information.

MMBC, an industry-run, non-profit agency created in 2011, is responsible for implementing an amendment to the province's recycling legislation that targets printed paper and packaging.

Issue 1247, September 17-23

MARKETING

Sports marketing helps locals hit business goals

Companies increasingly leverage links with sports teams and athletes to raise their profile in crowded marketplaces. Scotiabank announces it has become the official bank of the Vancouver Canucks. And in August, law firm MacMillan LLP announced its partnership with the BC Lions.

But successful partnering with a sports team requires more than simply spending money on signage and sponsorship, according to Jamie Pitblado, who is general manager of the 2014 Grey Cup: "a general rule of thumb is you need to spend four times the price of sponsorship to activate that investment."

Issue 1247, September 17-23

MINI-LIST

Biggest new-home developers in B.C.

Issue 1250; ranked by number of units built between 2008 and 2012

1. Polygon Group of Companies

2. Ledingham McAllister

3. Concord Pacific Group Inc.

4. Onni Group of Companies

5. Rafii Architects Inc.

OCTOBER PROFILES

Craig Richmond, CEO, Vancouver International Airport Authority (issue 1252, Oct. 22-28)

REAL ESTATE

Twist and sprout: downtown development booms

A 52-storey twisty tower at Granville Bridge's north end and a mini-village under the bridge inch closer to reality on September 24 when Vancouver city council sent the proposal to public hearings.

If Westbank's proposal for a 497-foot-tall tower, designed by Danish architect Bjarke Ingels and DIALOG Design, is approved, it promises to inject a cool factor into the Downtown South neighbourhood.

That area, bounded roughly by the West End, Yaletown and Robson Street, is being transformed with more than 2,000 new condominiums and at least 325 purpose-built rental units in more than a dozen real estate projects in various stages of development.

Issue 1249, October 1-7

TRANSPORTATION

Massey tunnel replacement controversy

Replacing the George Massey Tunnel with a new multi-lane bridge is about more than easing the pain of commuters, say both proponents and opponents of the plan announced by Premier Christy Clark on September 20.

At stake is a vital marine shipping route up the Fraser River, development pressures on the agricultural land reserve and the future of public transit for the region.

Clark's announcement that construction on the new bridge would begin in 2017 surprised many. The province had wrapped up consultation sessions on the future of the tunnel in March. Several possibilities were on the table at that time, including twinning the tunnel.

Issue 1249, October 1-7

ECONOMY

PST – The Sequel: six-month report card

The BC Liberals' HST initiative sparked widespread public ire when it was announced months after Gordon Campbell's Liberal party said prior to the May 2009 provincial election that it was not considering instituting a harmonized sales tax. The tax was introduced less than a year later, on July 1, 2010.

To the chagrin of industries that were banking on the tax's efficiency and relative simplicity and to the applause of those that saw the HST as another government tax grab cooked up in political backrooms, the HST fell victim to the Liberals' inability to sell its benefits in the court of public opinion. Six months into the new-old PST, economists and other analysts say it's likely too early to deliver a definitive verdict on the business impact of the PST's return, but not much has changed for the consumer in such industries as the restaurant trade, which was one of B.C.'s most vocal HST opponents.

Issue 1249, October 1-7

FARMING

Supply management keeps turkey farming profitable

B.C.'s turkey growers have much to be thankful for as their peak season approaches and their marketing board provides their recipe for success: limited production, guaranteed prices and the ability to restrain farmers in the United States from diluting the gravy boat.

Cattle ranchers and hog farmers only wish they had it so good.

B.C.'s 64 turkey growers enjoy reliable profits from sales of about $39.1 million while their regulator and marketing authority, the BC Turkey Farmers (BCTF), limits entry to the sector by allowing only two new entrants each year.

Each licensed grower gets a slice of the approximately 24 million kilograms of turkey the BCTF is allowing to be produced in B.C. this year.

Issue 1250, October 8-14

ECONOMY

Growth in wood exports to China set to slow

Successfully cracking the Chinese timber export market was what helped British Columbian forestry companies limp through the housing market crash in the United States and the subsequent global recession.

Now experts say the meteoric growth in exports to China during those years is over – but the market will continue to be a mainstay for Canadian timber.

In 2005, China imported 283,000 cubic metres of wood from Canada; by 2011, that number had jumped to 6.8 million. However, in 2012 it dropped to 6.4 million cubic metres, and 2013 is shaping up to look the same.

Issue 1250, October 8-14

HUMAN RESOURCES

Contracts fire up B.C.'s shipbuilding industry

Two years after winning a portion of $38.3 billion worth of federal shipbuilding work, North Vancouver's Seaspan says it's well on its way to ramping up infrastructure and hiring more than 1,000 new employees.

On October 19, 2011, the federal department of public works announced that Seaspan's Victoria and North Vancouver shipyards and the Irving shipyard in Halifax would each get a portion of the shipbuilding work. Irving will make combat ships; Seaspan will manufacture civilian vessels.

Since then, the two shipyards have invested hundreds of millions of dollars into expanding and updating their yards. Seaspan has already been awarded 17 vessels, with 10 of those (worth $3.3 billion) announced on October 7.

Issue: 1251, October 15-21

FILM AND ENTERTAINMENT

Pixar closes Vancouver studio, cuts 100 jobs

Pixar Canada's Vancouver studio shuts its doors and eliminates about 100 jobs.

"The team at Pixar Canada is incredibly talented and we are so proud of the excellent work we have produced there," Pixar says in a statement released to Variety newspaper.

The statement continues, "However, as we look at the creative and business needs of our studio, we've made the decision to refocus our efforts and resources under one roof in Emeryville and will be closing the studio in Vancouver," referring to its headquarters in Emeryville, California.

Pixar opened its Vancouver location in 2010. It was the animation company's first studio outside of California.

Issue: 1251, October 15-21

ECONOMY AND FINANCE

Mayor lays out plans for 'innovation economy'

Vancouver Mayor Gregor Robertson says he will continue to focus on technology, tourism and creative industries like film and gaming as the key sectors of the city's economy.

Robertson made the comments at an October 16 speech to the Vancouver Board of Trade.

He says the three areas currently holding back economic growth in the city are transit, skills training and capital for technology companies. To tackle the third item, Robertson announces a new innovation capital fund that will be managed by the Vancouver Economic Commission.

Issue 1252, October 22-28

TECHNOLOGY

Ex-MLA Bell swaps politics for fruit wine

Fruit winery owners expect their industry to get a bump in street cred thanks to former B.C. cabinet minister Pat Bell spending more than $1 million to open a fruit winery in northern B.C.

"It's fantastic," says Terry Bremner, who owns Wellbrook Winery in Delta. "He might know ways to help the industry make inroads in getting fruit wines accepted by the general population."

Bell tells Business in Vancouver that his Northern Lights Estate Winery, on 4.2 acres near Prince George, would be the northernmost in B.C.

To avoid any public perception of favouritism, Bell did not apply for any government grants or funding.

Issue 1252, October 22-28

MINING

Capstone completes mine acquisition

Capstone Mining Corp., one of B.C.'s fastest-growing companies in 2013, completes its acquisition of the Pinto Valley copper mine from BHP Copper Inc. on October 11.

The $650 million deal was announced in April 2013 and was the second-largest mining deal in 2013's first half, according to a mid-year global mining report released September 5 by PricewaterhouseCoopers LLP.

"The closing of the Pinto Valley acquisition advances us as one of the leading intermediate copper producers, with a focus in the Americas," says Capstone president and CEO Darren Pylot.

Issue 1252, October 22-28

MINI-LIST

Top 100 most profitable companies in B.C.

Issue 1255; ranked by 2012 net income

1. First Quantum Minerals Ltd.

2. Goldcorp Inc.

3. Telus Corp.

4. BC Lottery Corp.

5. Teck

NOVEMBER PROFILES

Elizabeth Model, CEO, Downtown Surrey Business Improvement Association (issue 1257, November 26-December 2)

TRANSPORTATION

Regional taxi turf war heats up in city

Vancouver's four taxi companies try to lock the doors on late-night weekend business in Vancouver's entertainment district by appealing a recent BC Supreme Court judgment that allows 38 suburban taxis to compete for their clientele.

The dispute centres on industry regulator Passenger Transportation Board's (PTB) decision earlier this year to approve 38 temporary licences for suburban taxi companies to operate downtown on Friday and Saturday nights between 10 p.m. and 5 a.m.

"If there was any need for additional taxis, we would have met that need," says Yellow Cab general manager Carolyn Bauer.

But competing cab companies applaud the PTB's decision.

"If Vancouver taxi companies were able to serve their customers, we would not have had the PTB grant us our application for the 38 licences," says BC Taxi Association president Mohan Kang, who represents Delta Sunshine Taxi, Kimber Cabs, Guildford Cab, Tsawwassen Taxi, Newton Whalley Hi-Way Taxi, North Shore Taxi and Sunshine Cabs.

He says plenty of suburbanites who head to the Granville entertainment district on weekends have trouble getting a taxi home.

Issue 1254, November 5-11

HUMAN RESOURCES

Tech talent crunch hitting Vancouver startups

The founders of startups like Clio, Unbounce and Mobify are among the CEOs and staff managers of local startups who will be trying to convince prospective employees to come and work for them at a November 28 job fair hosted by Techvibes. Some will also participate in a collective job fair at Brooklyn Gastown on November 12 under the "Startups Unite" banner.

Meanwhile, Clio has been busy setting up new offices in Toronto and Dublin, in an effort to tap those cities' tech talent pool, and the talent crunch hits Vancouver's tech sector.

The fight for talent is particularly pronounced for small, low-profile tech startups that are competing with the likes of Amazon.com and HootSuite, both of which are on a hiring spree.

Issue 1254, November 5-11

TRANSPORTATION

Visa initiative could draw new direct flights to YVR

Federal government red tape is strangling Vancouver International Airport's (YVR) ability to be a gateway to the Americas while costing the city hundreds of jobs, according to Vancouver International Airport Authority CEO Craig Richmond.

One stifling regulation requires Chinese nationals to get a Canadian visa when they change planes at YVR en route to South America.

That inconvenience steers Chinese traffic to South America through other cities, such as Dubai, Richmond told Business in Vancouver.

"There are 1.2 million people flying annually between China and South America and [the amount of traffic] is going to explode because of mining work," Richmond says. "We're not taking advantage of that."

Issue 1254, November 5-11

REAL ESTATE

First Nations roll out major real estate projects

Two major First Nation developments are set to transform different Vancouver neighbourhoods.

The Musqueam Indian Band is set to make a rezoning application for a 22-acre site on the University Endowment Lands (UEL) while the Squamish Nation continues negotiations with the City of Vancouver for an agreement to get water and sewer services for a project at the south end of the Burrard Bridge.

The Musqueam band must seek UEL approval for its site, known as Block F, because the freehold parcel is not part of its reserve land. The Squamish land, in contrast, is part of the band's reserve land so it doesn't need city approval for plans that include a 35-storey and a 28-storey tower.

The Musqueam project includes four towers between 18 and 22 storeys each, a four-storey hotel, several mid-rise buildings ranging up to six storeys as well as townhouses and about 30,000 square feet of commercial space.

Issue 1255, November 12-18

ENERGY

B.C. reaches pipeline agreement with Alberta

The B.C. and Alberta governments reach an agreement November 5 on B.C.'s contentious five conditions for new pipelines.

The agreement opens the door to large-scale developments such as Enbridge's Northern Gateway project and Kinder Morgan Canada's twinned Trans Mountain pipeline from Alberta to B.C. The premiers make the announcement at a press conference at Clark's Vancouver office.

News of the deal comes as a surprise as negotiations between the Christy Clark and Alison Redford camps had reportedly broken off November 4, with the two sides unable to agree on B.C.'s fifth condition: that the province receive its fair share of the economic benefits of new oil projects.

Under the new agreement, B.C. will negotiate with private industry, an option always available to the province, instead of Alberta, for greater economic benefits of pipeline projects. Any additional windfall will now come from energy companies.

Issue 1255, November 12-18

ENERGY

Black readies review for B.C. oil refinery

Newspaper mogul David Black tells Business in Vancouver he intends to begin the lengthy environmental review process for his proposed $26 billion Kitimat Clean heavy-oil refinery project in northwest British Columbia before the end of the year.

Black, who announced his intentions to build the large-scale refinery last year, says he has the "basic configuration nailed down" and is preparing to submit the necessary paperwork for environmental review, a process Black anticipates will take two years.

During the environmental review process, Black says he plans to commission a feasibility study of Kitimat Clean.

The report will include detailed designs and a complete cost breakdown of the project.

Thus far, Black has only discussed preliminary costs of Kitimat Clean: $18 billion to build the refinery, $6 billion to build a pipeline carrying bitumen west from the Alberta oilsands, $1 billion toward the cost of a natural gas pipeline for gas to run the plant and $1 billion for a tanker fleet.

Issue 1256, November 19-25

POLICY

Loosening liquor retail trade fraught with complications

Owners of private beer and wine stores raise concerns over a recommendation from a B.C. Liquor Policy Review report to allow beer and wine sales in grocery stores, and industry insiders say the government could face numerous complications if it changes B.C.'s liquor laws and follows through on the recommendation.

For starters, Victoria would likely face a string of lawsuits from disgruntled private liquor store owners seeking compensation for the damage it would do to their businesses, says Bert Hick, president of Rising Tide Consultants and a former British Columbia Liquor Control and Licensing Branch general manager.

Many of those entrepreneurs poured life savings into their liquor stores thanks to encouragement from politicians and bureaucrats. Hick says there could also be a rise in union activism as government liquor stores close to eliminate redundancy.

Closing government liquor stores has intermittently been part of the BC Liberals' agenda.

Issue 1256, November 19-25

MUNICIPAL AFFAIRS

Debt-laden Bixi chosen over local bike-share system maker

A local bike-share bid is rejected in favour of a deal with Portland-based Alta Bicycle Share and Montreal's financially troubled Bixi, Business in Vancouver reports.

In July, the City of Vancouver approved a public bike-share program. The city plans to contract Alta as the system operator, with Bixi as the equipment provider.

It plans to spend $6 million to set the system up and $500,000 annually to support its operation.

But Vancouver is now delaying the rollout by several months, after reports surface that Bixi's Toronto operation faces "imminent insolvency," according to a City of Toronto memo obtained by several newspapers.

The reports follow a $108 million bailout the City of Montreal gave to the company in 2011, $37 million of which was earmarked to cover a deficit. In September, Montreal's auditor general also raised concerns about the company's finances.

Issue 1257, November 26-December 2

FINANCE

Vancouver becoming a Bitcoin hotbed

The Bitcoin Co-op, a Vancouver-based organization, helps merchants set up Bitcoin accounts and point-of-sales applications. Roughly 20 Vancouver merchants have set up accounts through the co-op.

At the end of August, the world's first Bitcoin ATM opened at Waves Coffee House on Powell Street. In its first week, it did $100,000 worth of transactions, with more than 500 unique users registered – 90% of whom were buying – according to Bitcoiniacs, the Vancouver company that owns it. The one advantage of Bitcoin as a currency is that it avoids a lot of the transaction fees that credit card companies charge.

"If I were able to do everything in Bitcoin, I wouldn't be paying credit card fees," says Corey Judd, owner of Cabin 12 Restaurant in Victoria, which has been accepting Bitcoin for about six months. "That comes to $700 or $800 a month in debit fees and credit card fees."

Issue 1257, November 26-December 2

PROVINCIAL POLITICS

Pacific Carbon Trust to be shut down

The B.C. government's controversial carbon offsetter, the Pacific Carbon Trust (PCT), is being shut down as part of the government's core review, and any of its commitments will be handled by the Ministry of Environment.

"The Pacific Carbon Trust was established in 2008 to help develop a carbon-offset business sector," the government stated in November. "With that goal accomplished, the trust will be transitioned into government to achieve approximately $5.6 million in savings annually by 2015-16."

As detailed in a series of Business in Vancouver stories, the PCT sparked controversy for taking millions of dollars from cash-strapped school boards, hospital districts and municipalities to give to large corporations for carbon reduction projects – some of them questionable as to their eligibility for the funding.

The PCT also refused to reveal how it was spending public money, until it was forced to do so by BIV via an appeal through the Information and Privacy Commissioner.

Issue 1257, November 26-December 2

MINI-LIST

Top-performing B.C.-based mining stocks

Issue 1206; ranked by percentage change in price between November 22, 2012, and December 4, 2013

1. South American Silver Corp.

2. Polaris Minerals Corp.

3. Peregrine Diamonds Ltd.

4. Capstone Mining Corp.

5. Imperial Metals Corp.

DECEMBER PROFILES

TRANSPORTATION

Key link to B.C.'s Pacific Gateway set to open

B.C.'s multibillion-dollar Pacific Gateway arrives at a major milestone in December.

That's when final touches will be applied to the $1.3 billion, 40-kilometre South Fraser Perimeter Road, one of the critical pieces of infrastructure supporting national efforts to ease goods movement through Canada's largest port and expand trade relationships with nations in Asia.

The four-lane expressway follows the South Arm of the Fraser River northeast from Deltaport through Surrey to connect traffic to 176th Street – the primary conduit for the Pacific Highway border crossing for trucks.

Issue 1258, December 3-9

ENERGY

BC Hydro rates to skyrocket 25.5% over the next five years

BC Hydro rates will jump 25.5% over the next five years as part of a long-term rate plan unveiled by the British Columbia government on November 26.

The rates for the final five years of the 10-year plan weren't immediately revealed, but Bill Bennett, Minister of Energy and Mines, says he expects around 2.5% a year.

That means taxpayers could face a 10-year rate increase of around 38%.

Hydro will spend an average of $1.7 billion a year in capital projects, adds CEO Charles Reid. Reid says the average B.C. home pays $3 a day for electricity.

Issue 1258, December 3-9

FORESTRY

Canfor plans new wood plant in China

A new Chinese sawmill Canfor plans to invest in will make some of the same products cut in the company's Quesnel mill – set to close in March – and for the same market.

Canfor announces November 26 that it will form a 50-50 joint venture with a Chinese company, Tangshan Caofeidian Wood Industry Co. Ltd., to build a wood manufacturing plant at a deepwater port near Beijing.

The move makes sense for Canfor because of the company's interest in the Chinese wood market, says Russ Taylor, president of Vancouver-based Wood Markets Group.

Issue 1258, December 3-9

TRANSPORTATION

TransLink seeks innovative ways to generate non-fare revenue

TransLink officials tout their willingness to be innovative in generating non-fare revenue.

The enterprising attitude comes with the transit operator virtually maxed out on how much it can collect from parking taxes, fares and property taxes and with a referendum expected sometime next year on whether to expand public funding.

That's a tiny fragment of the nearly $498 million that it expects to bring in from transit fares in 2013, and COO Doug Kelsey expects retail revenue to fluctuate between $500,000 and $1 million in the short term. But he says that five years from now, retail revenue could be several million dollars.

Some of that extra retail revenue would come from the $37 million redevelopment of Metrotown station, where there currently is no retail on TransLink property.

Issue 1259, December 10-16

LUMBER

Concrete sector blasts Wood First policy

Members of the steel and concrete industry ring alarm bells over B.C.'s Wood First policy and its spread into Ontario and Quebec.

Provincial legislation adopted in 2009 requires "wood to be considered as the primary building material in all new, publicly funded buildings," such as schools, hospitals and social housing.

In 2012, Ontario also passed a Wood First Act. Earlier this year, Quebec took a page from B.C. and introduced a wood charter to encourage the use of wood in publicly financed buildings.

Charles Kelly, president of the BC Ready-Mixed Concrete Association, raises concerns over what he sees as government's preferential treatment of one industry over another.

Issue 1259, December 10-16

CLEAN FUEL

Whistler hydrogen bus pilot to be parked in March

Twenty hydrogen-fuel-cell buses in Whistler that produced zero emissions will be decommissioned next spring and may be converted to hybrid diesel-
electric engines.

BC Transit says the buses are too costly to continue running, due in part to the high cost of hydrogen fuel, which is currently trucked to Whistler from Quebec.

Critics say the decision not to extend a five-year demonstration project proves the experiment was a failure.

But Paul Cass, vice-president of operations for Ballard Power Systems, which developed the fuel cell modules that power the 20 buses, says the company never assumed the five-year demonstration project would be extended beyond March 2014.

Issue 1259, December 10-16

MINING

Bull-market buys mire miners in bear realities

The mining sector remains mired in a sluggish bear market because of the acquisitions producers made when commodity prices, particularly gold, were at an all-time high two years ago, analysts say. According to Mickey Fulp, noted writer and analyst known as the Mercenary Geologist, mining companies, buoyed by skyrocketing commodities prices, bought or developed mines they otherwise wouldn't have because they wanted to capitalize on the inflated market.

But Fulp tells Business in Vancouver that because of the drop in commodity prices, both mid-tier and major firms are now shedding bad or non-essential assets to free up much-needed cash.

But streamlining portfolios takes time, and Fulp expects such cost-cutting measures to continue into 2014's fourth quarter.

Issue 1259, December 10-16