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Sens in lead on LeBreton? Local business leaders call both plans to redevelop NCC-owned lands ‘very impressive,’ but chamber gives Eugene Melnyk’s group slight edge — for now > PAGES 10-11
February 1, 2016 Vol. 19, NO. 7
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Tasteful transition Elgin Street dining scene about to experience a major shakeup in face of changing trends.
Corsa Technology co-founder and CEO Bruce Gregory sees a bright future for his SDN firm in what is projected to be a $100-billion market. PHOTO BY MARK HOLLERON
Ottawa SDN sector wired for growth
> PAGES 18-19
City’s software-defined networking firms making waves while flying under the radar
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ArtHaus to offer sophisticated urban living in the heart of Ottawa’s ByWard Market
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here are only a few definitively eclectic urban neighbourhoods in the centre of major cities in Canada. One of them is Ottawa’s ByWard Market area, the location of DevMcGill’s “ArtHaus.” This iconic new residential condominium is part of an innovative new cultural community at Arts Court. The ByWard Market is so well known that upon his first visit as U.S. President, Barack Obama had his official motorcade take an unscheduled side-trip. “If I come to Ottawa and don’t bring back bearclaws from the ByWard Market to my daughters, they’ll never forgive me!” he told reporters. Ottawa’s ByWard Market is home to outstanding chefs, trendy restaurants, hip bartenders, cool clubs, unique artists and the most fashionable shops in the National Capital Region. This will be the home of ArtHaus, which will bring sophisticated and stylish boutique condominium residences to Ottawa’s most diverse mixed-use development project. Combining retail, the arts, entertainment and Ottawa’s first-ever Le Germain boutique hotel, the Arts Court development is a natural opportunity for DevMcGill to grow its brand by introducing its unique style of residential expression in the centre of the city. Arts Court is a joint venture of the City of Ottawa, the Ottawa Art Gallery (which will be doubling its current exhibition space), The University of Ottawa (which will oversee the programming of the new just under 1,600-square-foottheatre), and Group Germain, with its first hotel in the nation’s capital). Adding ArtHaus’ unique residential condominiums to
PHOTO COURTESY OF DEVMCGILL
this cultural collection results in the most innovative and creative urban community Ottawa has ever experienced. ArtHaus features a walk score of 98 and a transit score of 93, which is sure to improve when the new LRT station opens in 2018. ArtHaus is also ideally situated near first-class shopping, like Nordstrom’s and the famed Rideau Centre. It also offers easy access to the University of Ottawa campus, and is only a 10-minute walk from the downtown core and business district. The Queensway is just minutes away via Nicholas Street. ArtHaus condominiums will occupy floors 15-23 of the new Arts Court tower, while the boutique Le Germain Hotel will take up the lower floors. Buyers can chose from 89 private residences, which have been uniquely designed to take
“The ByWard Market is so well known that upon his first visit as U.S. President, Barack Obama had his official motorcade take an unscheduled side-trip. “If I come to Ottawa and don’t bring back bearclaws from the ByWard Market to my daughters, they’ll never forgive me!” he told reporters.”
advantage of the unparalleled views offered by this building. Each suite has fluid and flexible floorplans and features modern architecture with sleek and clean lines,
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For more information on this rare opportunity to live in one of the country’s most desired neighbourhoods, register now at www.arthauscondos.com.
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Calabogie Peaks the perfect venue for recreation professionals Renfrew County resort offers ideal setting for active networking
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THE CALABOGIE PEAKS HOTEL have a massive fireworks show. I found the staff were very professional to deal with. They run the resort as a real team effort; it’s impressive to see how everyone works so well together and is willing to help during your event.” Feeding a large group is something else Calabogie does particularly well, adds Jo-anne. “The food was outstanding and the feedback from participants strongly reinforced that point. There was not a single complaint about the meals and the kitchen was fantastic at dealing with special dietary requirements – they really went above and beyond in that regard.” Enhanced culinary offerings are just one aspect of the changes implemented at Calabogie Peaks which are drawing accolades. “I am so impressed by the improvements that have been made,” says Jo-anne. “It has been transformed from a local ski hill to a spot that now has real resort feel. I love the changes.” “I would definitely encourage anyone who is thinking of hosting
“A teambuilding exercise facilitated by Rick Klatt, an Outdoor Education Coordinator with the Renfrew County Catholic District School Board, encouraged participants to work together and highlighted the importance of communication and teamwork.” a conference to look at Calabogie Peaks and speak with their staff,” she adds. “It’s just a fantastic spot. Everyone working there is very warm and welcoming yet also very professional; it’s really the best of both worlds. Calabogie is a true gem in
Renfrew County and we are so fortunate to have this in our backyard.” To book your next corporate event at Calabogie Peaks Resort, please visit www.calabogie.com or call 1.800.669.4861.
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because they wanted to liaise with people doing the same things we are and facing the same challenges. Having a group this large is ideal; there is so much synergy and we are able to fill the resort. I think Calabogie likes our timing because it’s the off season for them as well.” The recreation professionals’ conferences have a clear objective, which is to forge a stronger network so they can share ideas and best practices. “We are now seeing that the relationships we’re building through these events are helping us come up with better products for our communities, without reinventing the wheel,” notes Jo-anne. “We’re also sharing things like grant applications, which we’d never done before. Now that we have had an opportunity to connect face-to-face, we are finding that can really help each other more effectively. These conferences have truly made a difference in how we work.” A full slate of activities gave the conference attendees plenty of opportunity to take advantage of Calabogie Peaks’ many recreational offerings. “We used the tennis courts, the golf course, the ski hill, the beach, the lake and the pool,” says Jo-anne. “Because they have so much to offer, Calabogie delivers very good value. We programmed activities that took advantage of the resort’s amenities, such as yoga on the paddleboards at the beach and Pickleball on the tennis courts. We were able to keep the price for participants as low as possible so they loved that it was affordable.” Jo-anne offers high praise for the entire Calabogie Peaks team. “They were so flexible and accommodating. They let us set up a portable climbing wall and some inflatable games and allowed us to
MONDAY, FEBRUARY 1, 2016
or many recreation professionals in rural Ontario, one of the year’s biggest highlights is their annual conference at Calabogie Peaks Resort, according to Jo-anne Caldwell, program developer for the Town of Renfrew Parks and Recreation Department. When she co-organized the inaugural Rural Ontario Active Recreation conference in September 2014, little did she know just how popular it would prove to be, so much so that the group is having its third annual gathering at Calabogie Peaks this year. “There are conferences held elsewhere in Ontario but they can be very expensive to attend,” explains Jo-anne. “We wanted to run something close to home and at a time of year that worked well for those of us in the recreation business. We looked at every place in Renfrew County and what drew us to Calabogie was that it’s the perfect spot to stay and play.” She adds that a big plus was the absence of external distractions at Calabogie Peaks. “Having everyone staying on site really helped with the ambience of the event. Calabogie offers everything we needed and wanted, including nice hotel rooms, excellent dining and superb conference facilities. For us, the outdoor aspects really sealed the deal – we wanted lots of recreational space and Calabogie Peaks certainly provides that.” The conference’s approximately 100 attendees come from a range of organizations that are all involved in recreation, including municipal staff, volunteers, school boards and health units. “Not only did we have representatives from every municipality within Renfrew County but also others from across the province. Everyone came
TECHNOLOGY Defining moment has arrived for Ottawa’s SDN sector BTI Systems, CENX, Corsa Technology among local firms making waves in field experts say is poised for explosive growth BY DAVID SALI david@obj.ca
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mong the three local firms on Deloitte’s annual Canadian Companies to Watch list released in November is one that garners few headlines but is ready to make a big splash. Kanata-based Corsa Technology specializes in making hardware for the rapidly growing but obscure field of programmable Internet networks known as software-defined networking. “For us, it’s recognition that we’re really innovating, but being successful at the same time,” says Corsa’s CEO and co-founder Bruce Gregory. “There’s a lot of innovative stuff going on that often doesn’t get commercialized.” Two other Ottawa-area companies also made the Deloitte list, which recognizes early-stage tech firms that show high potential for growth. But Klipfolio and You.i TV have already worked their way into the public consciousness, thanks in part to bigname wins such as You.i’s deal with Rogers and Shaw to produce the user interface for the Shomi on-demand video platform. Meanwhile, Corsa has raised more than $20 million in equity financing since it was founded three years ago, all with virtually no fanfare. Launched by tech veterans Mr. Gregory, Yatish Kumar, Carolyn Raab and Steve Yee, the company has assembled an impressive management group to lead its rapidly growing staff of 40 employees. Its top executives rarely seek the media spotlight, which is partly why Corsa tends to fly under the radar. But a bigger reason is probably the market it serves. SDN is a sector on the verge of explosive growth – industry news site SDxCentral issued a report last year projecting it will be a $100-billion global market by 2020 – but most Canadians have likely never heard of it. Corsa’s customers are not household names like Rogers but rather little-known entities such as ESnet, the U.S. Department of Energy’s dedicated network to support scientific research.
Make no mistake, however: the young Kanata startup is a firm on the rise in a field many experts say is revolutionizing Internet data flow. Thanks to SDN, network traffic is increasingly being regulated by technology instead of people, allowing glitches to be repaired much more quickly and cheaply and speeding up installation times for new services. Still, Mr. Gregory says it’s “very early in the cycle” for SDN, and Corsa’s suite of four products, known in the industry as data planes, is rapidly making it a market leader. “It’s a global business and we operate on a global level,” he says, noting he travels to Europe or Asia on business almost every month. “The entire ecosystem has to come together because what we’re doing across the network is so different. We’re putting together an entirely new network architecture, but there isn’t any one company that owns all the pieces. Nobody’s going to rip out the Internet and replace it. Everything we do has to fit into an existing network.” He describes Corsa’s revenues as “really healthy,” adding the firm is just scratching the surface of its potential. “For us right now, it’s all about securing the really important networks and the really important customers and growing with them over the next two, three, five years,” he says. “For a small company, we’ve made a lot of noise since we’ve started and we’ve had a lot of success.” Corsa is just one of the trail-blazing new firms that has already helped Ottawa forge a reputation as Canada’s leading SDN hub. Buoyed by the National Capital Region’s strong network-building legacy, access to an elite talent base and government-sponsored agencies including Kanata’s Centre of Excellence in Next Generation Networks, companies such as CENX and BTI Systems are among others making a name for themselves in the space. “Ottawa is a pretty strong region as far as operating networks,” says Andrew McDonald, senior vice-president of core products at CENX. “There have been some great technology companies that
Corsa Technology CEO Bruce Gregory’s firm now has 40 employees. PHOTO BY MARK HOLLERON
“It’s a global business and we operate on a global level. We’re putting together an entirely new network architecture, but there isn’t any one company that owns all the pieces. Nobody’s going to rip out the Internet and replace it. Everything we do has to fit into an existing network.” – BRUCE GREGORY, CEO AND CO-FOUNDER OF CORSA TECHNOLOGY
have been very telecom network-focused here.” Though the company has offices in five countries, about three-quarters of CENX’s 200 employees work at its research and development department in Centretown. They design software that gives clients a big-picture look at information from routers and switchers, making it easier to isolate faults and allowing networks to run more efficiently. The firm’s revenues skyrocketed by more than 4,300 per cent between 2011 and 2014. That blistering pace of growth ranked it 18th among North American companies on Deloitte’s 2015 Technology Fast 500 list. Mr. McDonald credits much of that success to CENX’s Ottawa workforce, noting the wealth of experienced engineers and programmers nurtured at the likes of Nortel and its many spinoffs has given the region an edge over other
would-be SDN hotbeds. “If I look at some of the staff that have come out of some of those (legacy companies), it’s pretty clear that there’s a lot of telecom networking talent in the city,” Mr. McDonald says. “There are a lot of companies here today because of those initial engineering talent pools. It’s one of the reasons why we’re here for sure.” Mr. Gregory is equally effusive in his praise of local talent, calling Corsa’s current crew of engineers the best with whom he’s ever worked. And while a 70-cent loonie might have many snowbirds and importers north of the border groaning, he says it makes the city a more cost-effective R&D option for companies that earn most of their money in U.S. currency. “The dollar works for us right now when we’re competing for talent,” he says. Ottawa tech workers also tend to
“We’ve think we’ve got the right formula. Are we going to replace Nortel? Probably not, but it all starts somewhere. I would say that there’s no leader (in SDN) that’s evident right now, except for Silicon Valley. We have a chance. We’re not behind, but we’re not quite leading just yet. I’m hoping I can do my little part to feed this ecosystem so that that does happen.” – RITCH DUSOME, PRESIDENT AND CEO OF KANATA’S CENTRE OF EXCELLENCE IN NEXT GENERATION NETWORKS
be more loyal than their California counterparts, Mr. Gregory adds. “In Silicon Valley, retaining talent is really difficult because there’s so much competition for engineers,” he says. “If you bring a person in and you’re able to keep them for a year, you almost feel lucky that you had them for a year. That’s not an issue in Ottawa right now. If you create an environment that’s challenging and exciting to work in, people will come and work with you and they want to see it through right to the end. They want to build a big company.” The city’s universities and colleges are laying the groundwork for the next generation of networking innovators by graduating top-tier engineers with skills particularly well-suited to SDN, says Peter Landon, director of product architecture at BTI Systems. “Ottawa’s unique because it has a lot of the educational institutions that are really pushing the new networking control with SDN,” he says. “The fact that Ottawa’s got all of the good schools does give us a lot of opportunity to tap into not only good engineering talent, but also some of the new methodologies
that are being used in networking.” With 150 employees at its Kanata headquarters, BTI is one of the larger SDN-focused firms with a major local footprint. California-based Juniper Networks, which also makes SDN software, announced in late January it was acquiring the company, adding it plans to continue operating BTI’s Ottawa office as a separate subsidiary. BTI and Juniper are among the membership of CENGN, a consortium of more than a dozen tech companies, telecom providers and economic agencies that finances research and development in emerging fields such as SDN and the Internet of Things. Other members include Alcatel-Lucent, Invest Ottawa, Rogers and Telus. CENGN’s members collaborate with corporate partners to solve problems and refine technology. For example, BTI and Corsa recently worked together on a proof-of-concept demonstration that showed networks under SDN control can effectively expand their bandwidth to accommodate “elephant flows,” or unexpected surges in Internet traffic. Gatineau’s Inocybe Technologies,
Introducing our successful CFE writers: (l to r) Timothy Rowland, Amanda Wilson, Ann Singherayor, Darren Csercsics, and Linda Wang. This group of talented professionals from our Ottawa office successfully passed a major milestone to becoming a Chartered Professional Accountant. kpmg.ca/careers
another key local player in the SDN sector, also took part in the project. “It’s really useful, especially for a smaller company that’s building their business in this space, to get access to a whole bunch of different products and work together to build solutions,” says Mr. McDonald. “I think of (CENGN) as a catalyst. What they’ve been able to do is bring folks in this space together to look at different opportunities to collaborate. That gives us the ability to do some prototyping, looking at some future ways of doing work together that maybe we wouldn’t have done otherwise.” Mr. Gregory agrees. “To a company like Corsa to get access to that network and that level of integration would’ve been prohibitively expensive for us to do on our own,” he explains. “We get more understanding of the world that we’re building into. It provides a real service that way.” CENGN’s goal, says president and CEO Ritch Dusome, is to help more
quickly bring to market new technology in rapidly evolving sectors such as SDN by proving it works. He believes SDN could be the next big thing driving techsector growth in Ottawa. “We’ve think we’ve got the right formula,” says Mr. Dusome, a 20-year industry veteran who spent time at Bell and another CENGN member, Cisco Systems. “Are we going to replace Nortel? Probably not, but it all starts somewhere. “I would say that there’s no leader (in SDN) that’s evident right now, except for Silicon Valley. We have a chance. We’re not behind, but we’re not quite leading just yet. I’m hoping I can do my little part to feed this ecosystem so that that does happen.” However, others in the industry caution that CENGN alone isn’t enough to keep Ottawa ahead of the curve when it comes to emerging technologies. “It’s a really interesting example of what we can do when we put our minds to it,” Mr. Gregory says. “I think we need to do an awful lot more.”
MONDAY, FEBRUARY 1, 2016
Advancing their journey
Andrew McDonald is a senior vice-president at CENX. PHOTO BY MARK HOLLERON
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TECHNOLOGY Tech giant the Apple of Ottawa’s eye News of iPhone maker’s imminent arrival to Kanata office park has business leaders hoping world’s largest technology company has ‘long and prosperous’ run in capital
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ews that the world’s biggest tech company is setting up an office in Kanata has the local business community buzzing, and Invest Ottawa’s boss is no exception. “We’ve read that, and if it’s true, we’re going to be very happy,” Bruce Lazenby said last week after OBJ reported that the iPhone maker has leased space at the Kanata Research Park in preparation for setting up a facility in the National Capital Region. “Apple and other companies are starting to discover Ottawa and the talent that we’ve got here. If they were to open an office, they’d be very welcome and we would do everything we could to try and make sure their stay here was long and prosperous.” Although the California-based tech giant has yet to publicly announce it is establishing a presence in Ottawa, sources told OBJ they believe the office at 411 Legget Dr. will be devoted to research and development. The space is located in the G. Best Building, which is owned by KRP Properties. The building’s main tenant is currently DragonWave. Until late January, KRP’s website listed its 22,100-square-foot suite 300 as vacant. KRP described the property as a “full-floor office suite with executive boardroom, meeting rooms, several offices, server room, lunchroom, showers, private balconies and lab space.” However, the company removed the office from its list of vacancies following OBJ’s report that Apple was moving in. The building’s director of leasing did not respond to a request for comment. The world’s largest technology company by total assets and the secondlargest mobile phone manufacturer, Apple generated revenues of more than US$234 billion in 2015. The company has been boosting its R&D spending in recent years, investing more than $8 billion in research and development in fiscal 2015 alone – a 34 per cent increase over the previous year. In the past 12 months, Apple has announced plans to open or expand research facilities in China, England, Israel and Japan. Business analysts have been speculating for some time that the tech colossus known for its personal computers, smartphones, tablets and devices such as the Apple Watch is branching out into the automotive sector.
Invest Ottawa CEO Bruce Lazenby. FILE PHOTO
Ottawa chamber’s Ian Faris. FILE PHOTO
“Apple and other companies are starting to discover Ottawa and the talent that we’ve got here. If they were to open an office, they’d be very welcome and we would do everything we could to try and make sure their stay here was long and prosperous.” – INVEST OTTAWA CEO BRUCE LAZENBY
Last fall, appleinsider.com reported rumours that the company was developing an electric self-driving vehicle, noting it had begun poaching high-profile automotive engineers. Sources told the website Apple was also considering construction of a new development centre in San Jose that could be used to assemble vehicles. Ottawa already has a major presence
in the automotive software sector. Kanata is home to BlackBerry’s QNX Software Systems division, which recently unveiled a slate of new software for the rapidly evolving driverless car market, and app developer Lixar also counts automakers among its highprofile clients. QNX’s global director of business development Andrew Poliak said in an
interview earlier this month he’s taking a wait-and-see approach to Apple’s pending arrival. “I don’t think we would really talk about any kind of rumour or speculation,” he told OBJ. “I read your article too. I went, ‘Interesting. Cool.’” Mr. Poliak said QNX first partnered with Apple more than a decade ago on a project with Mercedes-Benz that allowed the first iPod to connect to a car. Should the company set up an R&D centre to focus on automotive technology, it could create opportunities for more partnerships, he added. Both the executive team at QNX and BlackBerry have indicated a readiness to work with anyone on automotive applications, he said. “We’re really the only operating system I know that crosses the line between the great consumer experience and all those hard real-time critical operating systems that are safety certified,” Mr. Poliak said. “We’ve continued to deploy technology with all the major device manufacturers, whether it be Google or Apple or others that throughout the years, you will find us in a lot of cars enabling the technology. We’re kind of the Switzerland of all the different devices that want to connect to a car.” Mr. Lazenby said if Apple were to join the likes of QNX and Lixar in developing automotive software, it could propel Ottawa into a position of leadership in the driverless car sector. “The automotive industry is going to be fundamentally changed by autonomous vehicles,” he said. “We’ve got two choices: we can lead that change or we can have that change dropped upon us.” The Ontario government is a strong supporter of emerging technologies, he said, adding the province would be the perfect four-season testing ground for driverless cars. “I think we’ve got all the bits and pieces kind of hovering around, but if we can pull them together into a single effort, we could really put Ontario on the map globally in autonomous vehicles.” Ottawa Chamber of Commerce CEO Ian Faris said the arrival of Apple would send a clear signal that the city is a world leader in tech. “I think that’s a validation that Ottawa’s got a vibrant tech community in the continuum from startups all the way to mature companies,” he said. – OBJ staff
FINANCE BDC Capital boosts commitment to Mistral Venture fund BY TOM PECHLOFF tom@obj.ca
L TO R, David Harmer, CPA, CGA (Tax Manager); Michelle Martin, CPA, CA, CPA (California) (Associate); Louise Leduc (Senior Accounting Technician); Percy Chohan (Intermediate Staff Accountant)
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DC Capital’s recent announcement that it has committed another $3 million to the Mistral Venture Partners early stage venture capital fund will have “significant impact,” Mistral’s managing director Code Cubitt says. “A number of our companies are doing quite well, and so (BDC’s) additional investment allows us to double down, if you will, on some of the companies that are trending towards significant growth,” he told OBJ. BDC Capital first invested in Mistral in June 2014 and the latest announcement brings its total commitment to $6 million. It is Mistral’s only institutional investor, Mr. Cubitt said, and one of the fund’s anchors. “They play a critical role for early stage VCs in allowing funds like ours to get off the ground, prove a particular model and start to scale,” he said. Mistral’s investment focus is on enterprise companies in the mobility, cloud and Internet of Things sectors. Its 12-company portfolio includes five Ottawa-based firms: CENX, Giatec Scientific, Klipfolio, Rare Logic and The
BDO IS GROWING We are pleased to announce that Michelle Martin, CPA, CA, CPA (California), and her team of three professionals have joined the BDO Ottawa St-Laurent office. Michelle and her team will join the private-sector group, bringing expertise in both private enterprises and US tax . We are pleased to welcome them to the BDO family, and look forward to their contributions to our clients, colleagues and community. Mistral Venture’s Code Cubitt. FILE PHOTO
Better Software Company. Mistral’s $25-million fund is about three years into its 10-year lifespan, and Mr. Cubitt said there will probably be four or five more companies added to its portfolio. BDC Capital’s managing director of fund investments Dominique Bélanger said Mistral has done an “outstanding job” identifying high-potential startups. “Their connections in Canada and the U.S. and the mentorship the team provides have made a big difference to their portfolio companies,” he said in a release.
People who know, know BDO.SM Assurance | Accounting | Tax | Advisory 1730 St. Laurent Blvd., Suite 100 Ottawa ON 613 739 8221 www.bdo.ca
FARROW DREESSEN ARCHITECTS INC becomes
DREESSEN CARDINAL ARCHITECTS INC
Building on decades of experience and a spirit of innovation and collaboration, Toon Dreessen is pleased to announce the following evolutionary changes to the firm: Evelyne Cardinal, Steve Lajeunesse, and Derek Ruddy will join Toon as partners, and the firm will now be known as...
MONDAY, FEBRUARY 1, 2016
While our commitment to quality, service, timeless and creative architectural solutions remains the same, our firm’s leadership will change beginning February 1st, 2016. We look forward to sharing the evolution of our firm and our vision for excellence with all of our clients - past, current and future.
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Visit architectsDCA.com to learn more about our firm, its partners, staff, and expertise.
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In order to get any income tax relief from the Trudeau government, a retired couple requires a combined taxable income of at least $90,000 a year. That’s a huge amount for most retirees, even if both are former federal government employees who worked full-time for most of their lives
TELEPHONE Phone: 613-238-1818 Sales Fax: 613-248-4564 News Fax: No faxes, email editor@obj.ca PUBLISHER Michael Curran, 238-1818 ext. 228 publisher@obj.ca CHIEF MARKETING OFFICER Terry Tyo, 238-1818 ext. 268 terry@greatriver.ca EDITOR, PRINT CONTENT David Sali, 238-1818 ext. 269 david@greatriver.ca EDITOR, ONLINE CONTENT Tom Pechloff, 238-1818 ext. 291 editor@obj.ca COPY EDITOR Krystle Kung ADVERTISING SALES General Inquiries, 238-1818 ext. 286 sales@obj.ca Wendy Baily, 238-1818 ext. 244 wbaily@obj.ca Carlo Lombard, 238-1818 ext. 230 carlo@obj.ca Alison Stewart, 238-1818 ext. 226 alison@obj.ca SPECIAL PROJECTS Nikki DesLauriers, 238-1818 ext. 240 nikki@obj.ca MARKETING & SALES CO-ORDINATOR Cristha Sinden, 238-1818 ext. 222 cristha@greatriver.ca CREATIVE DIRECTOR Tanya Connolly-Holmes, 238-1818 ext. 253 creative@obj.ca ART DEPARTMENT Regan VanDusen, 238-1818 ext. 254 regan@greatriver.ca
Paying the price for pension procrastination MONDAY, FEBRUARY 1, 2016
If you’re hoping to rely on CPP for retirement income, Michael Prentice says you’re in for a rude awakening and need to rethink your strategy
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he best piece of financial advice I ever received is this: don’t count on the government to enable you to live comfortably in retirement. And the biggest financial mistake I ever made was my failure to join the Ottawa Citizen’s pension plan for the first 10 years of the 24 years that I worked there. I calculate my tardiness in joining the voluntary plan has already cost me more than $100,000 in pension income in the 13 years since I retired from fulltime work. Government’s role in the retirement planning of Canadians is topical with the Trudeau government in preliminary discussions with the provinces on how to boost the payout to retirees from the
Canada Pension Plan. Don’t hold your breath. Even if there is an agreement to enrich the plan through higher compulsory monthly premiums for workers and their employers, it will not be nearly enough to guarantee a comfortable retirement for those fortunate enough to qualify for the maximum CPP benefit. Currently, the average CPP benefit for retirees who contributed to the plan is a little more than $550 a month, a paltry sum for a lifetime’s worth of pension contributions. The maximum CPP benefit is currently less than $1,100 a month. But only a small minority of retirees qualify for that amount – those who held well-
paying, full-time jobs for most of their working lives. The new federal government has already signalled to retirees that it will provide them with little or no additional financial help in the foreseeable future. Very few retired people seem likely to benefit from the federal government’s so-called middle-class tax cut. In order to get any income tax relief from the Trudeau government, a retired couple requires a combined taxable income of at least $90,000 a year. That’s a huge amount for most retirees, even if both are former federal government employees who worked full-time for most of their lives. Many people working in well-paying,
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The new Albert at Bay Suites Hotel Logo - November 15, 20
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Michael Prentice is OBJ’s columnist on retail and consumer issues. He can be contacted at news@obj.ca.
STAY BIG OR STAY HOME!
MONDAY, FEBRUARY 1, 2016
full-time jobs seem unlikely to get much of a tax break from the Trudeau Liberals. In order to benefit from even the smallest tax cut, individuals must have a taxable income of about $45,000 a year. That’s after deductions for CPP, employment insurance, union dues, registered retirement savings and any other income that is tax-free. Thus, a person making as much as $60,000 a year may see no income-tax cut at all. To call this a middle-class tax reduction seems a stretch, to put it mildly. To qualify for a significant tax cut, a worker will probably require a gross income of close to $100,000 a year. Even then, the maximum income-tax relief for an individual will be less than $700 a year, according to the Liberals’ own estimate in their manifesto promising “real change.” The Trudeau Liberals are also doing seniors no favour by cutting the amount that Canadians are allowed to stash away annually in a tax-free savings account. This was a measure introduced by the Conservative government in 2009, to scorn from some media outlets such as the Citizen, which said such an account would have little benefit. In fact, the tax-free savings account is of particular benefit to seniors, who must gradually withdraw money from their tax-deferred registered retirement savings account once they reach old age. Under the Conservatives, Canadians were recently able to stash up to $10,000 a year in their tax-free savings account following an increase in the limit last summer. The Liberals plan to reduce the annual limit back to $5,500. So, back to where I began: don’t count on the government and its Canada Pension Plan, enriched or otherwise, to provide sufficient funds to live comfortably in retirement. The maximum CPP benefit, combined with the maximum Old Age Security benefit, currently provides an individual with a monthly income of about $1,635. When I was hired by the Citizen, I was in my early 40s and I didn’t think much about retirement. So I opted not to join the company pension plan, figuring I could save for retirement later in life. I also planned to invest more in my registered retirement savings plan, but often found reasons to splurge on vacations instead. Ten years later, I recognized my mistake. And in my final 14 years of full-time employment, I earned a work pension that exceeds what I receive under the Canada Pension Plan, to which I had contributed for 27 years. To be fair, I don’t remember how my contributions to the two plans compared. My point is this: when it comes to pension income, the more the merrier.
REAL ESTATE
Members of the public check out the RendezVous LeBreton Group’s proposal to redevelop LeBreton Flats during a recent open house at the Canadian War Museum. PHOTO BY MARK HOLLERON
Ottawa Chamber of Commerce gives edge to RendezVous LeBreton bid MONDAY, FEBRUARY 1, 2016
Senators’ leading role in proposal makes it ‘a little more viable’ than competing plan to redevelop Flats, business group’s boss says — at least for the moment
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BY DAVID SALI david@obj.ca
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alling both plans to redevelop LeBreton Flats “very impressive,” the head of one of Ottawa’s most influential business organizations nonetheless didn’t hesitate to endorse the RendezVous LeBreton group’s bid in an interview with OBJ after the proposals were unveiled. “We’re happy with both bids, but we just see one as being a little more viable than the other,” said Ian Faris, CEO of the
Ottawa Chamber of Commerce, which represents about 700 local businesses. Mr. Faris said he thought both proposals – the RendezVous LeBreton bid, which is led by Senators Sports & Entertainment, and the Devcore Canderel DLS Group, which is backed by Quebec billionaires André Desmarais and Cirque du Soleil founder Guy Laliberté among others – had significant merits. Both groups are proposing an NHLcalibre arena as a centrepiece of their redevelopment plans, but only one of them, RendezVous LeBreton, already
has a franchise to play in the building. That gives it the edge on the chamber’s scorecard as things stand at the moment, Mr. Faris said. “We’ve been following this for 18 months,” he said. “There’s a lot of similarities (between the bids), but the glaring question is the ownership of the Senators. This is a big deal, and the viability is very important to us. Each of them have put an arena as a focal point. I don’t think it can go ahead with an arena that doesn’t have a tenant. “We want to make sure this happens. We can’t afford to miss another decade or
two on developing LeBreton.” The Devcore Canderel DLS team has stressed it is willing to have “a variety of discussions” with Senators owner Eugene Melnyk about moving the team to LeBreton should its bid be successful. Canderel senior vice-president Daniel Peritz even went as far as to suggest the Senators could own the arena “under the right conditions.” DCDLS has not approached Mr. Melnyk about any potential partnership because that would violate the terms of the National Capital Commission’s bidding process.
“There’s a lot of similarities (between the bids), but the glaring question is the ownership of the Senators. This is a big deal, and the viability is very important to us. Each of them have put an arena as a focal point. I don’t think it can go ahead with an arena that doesn’t have a tenant.” – OTTAWA CHAMBER OF COMMERCE CEO IAN FARIS
The Devcore Canderel DLS Group put its vision for a revitalized LeBreton Flats on display recently at the war museum. PHOTO BY MARK HOLLERON
tourist attractions all centred in one easy-to-navigate district, much like Toronto has with the CN Tower being located right near the Ripley’s Aquarium of Canada and Rogers Centre. “I think a clustering of facilities and program space that appeals to visitors is a good thing,” he said. “They feed on one another. The war museum will benefit from these local facilities and those facilities will benefit from the traffic to the war museum. They may help each other be self-sustaining.” Invest Ottawa CEO Bruce Lazenby said he was encouraged that both groups have chosen to make facilities devoted to technology and innovation prominent in their proposals. “It seems like both teams have really done their homework,” he said. “Pick either one, it would be a winner. The fact that they’re picking innovation (as a theme) for the LeBreton Flats area just makes me a happy camper. The more innovative we are, the more we’re going to attract and retain some of the
world’s most talented and innovative people. That’s what we need to drive our growth sector. The fact that they’re both promoting innovation is a wonderful thing for the city.” Mr. Ball said it was too early to start celebrating yet, but added he was “hopeful” the proposals will lead to concrete action. “A lot needs to happen in the next weeks and months. This is just the initial (step),” he said. “I would hope (the proposals) would continue to evolve. Both presentations suggested that this was an evolution over a long period of time.” Jonathan Westeinde of Windmill Development Group, one of the partners in the RendezVous LeBreton bid, echoed those thoughts. “To say we’re going to scrap this and start all over again and not really know if you’re going to get the same kind of energy … I would just hope that there’s a commitment (from the NCC) to get one of these across the finish line,” he said.
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built there needs to draw to increase overnight visitation to our community,” said Steve Ball, president of the Ottawa Gatineau Hotel Association. “That really in my mind is the opportunity that needs to be fulfilled. The hockey component is key. Whatever else comes along, I hope it balances opportunities for (tourist) attractions. I don’t care what it is necessarily, but the opportunity in that location to have attractions that help advance our tourism and hospitality industry is critical.” Ottawa Tourism CEO Dick Brown refused to endorse a specific plan, saying either one appears capable of achieving one of the NCC’s major goals: to revitalize an area that has sat undeveloped for more than five decades. “Both of them make Ottawa a much more interesting and dynamic place for people visiting Ottawa and as a motivator to bring people to Ottawa,” he said. Mr. Brown said he liked the idea of having an arena, museums and other
MONDAY, FEBRUARY 1, 2016
Mr. Melnyk has repeatedly said he has no interest in selling the team and will not move the Senators downtown unless he owns the building they play in. Mr. Faris acknowledged the situation is “fluid” and said the chamber could reassess its stance down the road. But he said he doesn’t believe the DCDLS vision of LeBreton can work without an NHL tenant for the arena. “Mr. Melnyk stated very clearly through the media that he has no interest in renting space in a stadium. He wants to be the owner and he feels that’s the best business model.” Besides an NHL arena, both visions for redeveloping the 21.6 hectares of prime NCC-owned real estate west of downtown share other similarities as well. The multibillion-dollar RendezVous LeBreton plan, known as IllumiNATION LeBreton, and the Devore Canderel DLS proposal, dubbed LeBreton ReImagined, both include new municipal public libraries, mixed-use buildings featuring a mix of residential and retail property, plenty of parks and public spaces and contributions from big-name local architects – Ritchard Brisbin for LeBreton Re-Imagined and Barry Hobin for IllumiNATION LeBreton. One of the defining features of the ambitious LeBreton Re-Imagined plan is an element called the Canadensis Walk (Latin for “of Canada”) that would feature public art and a botanical promenade and would stretch from east to west across the development. The proposal also includes a planetarium, aquarium, skatepark pavilion, YMCA, 4,000-seat bandshell and various museums devoted to automobiles, journalism and telecommunications and science. Among its major buildings would be a 20-storey “innovation office tower.” The group says the highrise will be “a vibrant hub for the innovative research work being done in the building” that will complement the activities of the nearby Innovation Centre slated to open later this year at Bayview Yards. The IlluminNATION LeBreton proposal includes plans for 800 hotel rooms, five distinct neighbourhoods with different blends of housing and retail in each, a heritage aqueduct and a sports and recreation facility open to both able-bodied and disabled users. The bidders also promise an “Innovation Pavilion” that helps promote Canadian technological prowess through multimedia components, holograms and light shows. The Canada Science and Technology Museum is a partner in the attraction. Local tourism industry officials said they see a world of potential in both proposals, adding it’s still too early in the process to predict what the final outcome will be. “I’m advocating that whatever gets
MEDIA
Twelve local journalists lost their jobs in January when the Ottawa Citizen and Ottawa Sun merged newsrooms at their facility on Baxter Road. PHOTO BY MARK HOLLERON
Newspapers keep feeling the chill Bleak January of major job cuts adds to industry’s woes as more advertisers turn to niche publications and other forms of media to reach customers BY ADAM FEIBEL
MONDAY, FEBRUARY 1, 2016
adam@obj.ca
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anuary was a nasty month for print newspapers in Canada. Hundreds of Canadians lost their jobs in a month of closures and cutbacks at the Toronto Star, the Guelph Mercury, the Nanaimo Daily News and, on a miniature Black Tuesday for Canadian journalists, the national Postmedia Network newspaper chain. The cost-cutting measures are primarily brought on by declining readership and revenue, especially from advertising. But newsroom cutbacks are also a self-fulfilling prophecy, a chickenand-egg situation that doesn’t bode well for the newspaper industry’s future, according to Al Albania, president of
Ottawa-based advertising agency Acart Communications. “If you don’t have good revenue from advertising, you tend to reduce your editorial,” he said. “So you’ve reduced your editorial, and then the newspaper doesn’t seem like it’s got enough meat for the reader, so people stop advertising. It’s a never-ending cycle that eventually comes down to those purists that will only read newspapers.” Just days after the Toronto Star cut 13 newsroom jobs, Postmedia, the country’s largest newspaper chain, laid off 90 journalists and merged tabloid and broadsheet newsrooms in four cities. Here in town, 12 Ottawa Sun journalists lost their jobs when the paper merged with the Ottawa Citizen. Both are now produced by a single news team. The following week, Black Press
closed the Nanaimo Daily News, affecting 10 staffers, and the Guelph Mercury halted its print edition and cut all 26 editorial staff. Mr. Albania said advertisers haven’t turned away from newspapers, but explains they’re just one option among many in an integrated advertising approach. “We’ve always done exactly the same thing, and that’s that we will buy the best media to get the job done,” he said. “There are some people you can only reach through the newspaper, and of course the newspaper is very much still a worthwhile endeavour.” But as these news organizations scale back operations, they face not only the challenge of generating revenue from their digital assets, but also maintaining the quality of work that made them
a desirable channel for readers and advertisers in the first place. “The advantage that traditional media has is all the expert content creators, journalists who have integrity and are careful about what they publish,” said Kelly Rusk, digital director at another Ottawa-based advertising firm, Banfield Agency. “I’ve always thought it’s a backward approach to keep cutting the editorial side, because that was the advantage they had over some of these new publications.” Even as they make gains on the digital side, traditional media organizations continue to post flat or falling revenues, according to PricewaterhouseCoopers. Its media outlook report published in 2015 predicted that digital ad revenue will surpass that of print by 2019, but noted that it won’t be enough to offset
the losses from print. For every $1 earned online, newspapers lose $10 on their print production, according to the Pew Research Center. “There’s still the desire to have channels that are more in line with what print advertising was giving them in terms of building brand awareness and visibility,” said Véronique Gravel, account director and partner at Banfield. “When clients are looking at digital, I think they’re making progress, but they’re still caught a little in the measures of success – looking at clicks, for example. We’re trying to shift that mindset (to other elements such as brand awareness) so they are considering digital spaces.” Evolving trends on the advertising industry side have also made it harder for general news publishers to appeal to companies running targeted ad campaigns, some ad firms say. The news media casts a fairly large net in terms of readership demographics, and that breadth may be an even more problematic long-term barrier to revenues. “No one wants to use ‘shrapnel shots’ to – maybe, if we are lucky enough – hit the target. Advertisers tend to choose the ‘sniper’ approach using more and
“Bundling print with website banner exposure, social media, native advertising, events and so on is the way to go. If you can help (clients) set up their media campaign on various channels through a single media purchase, you’ll be the champion.” – KIRILL KORNILOV, DIRECTOR OF ADVERTISING SALES AT OTTAWA’S GORDONGROUP
more targeted vehicles,” Kirill Kornilov, director of advertising sales at Ottawa’s gordongroup, wrote in an e-mail. Gordongroup’s publishing division is an example in itself, focusing on niche magazines rather than broadsheet dailies. “While quite a few newspapers had to discontinue their print version, a number of new print magazines appear every year,” said Mr. Kornilov. “The ones that sustain are usually hyper-targeted publications about food, sports, design, outdoor (living), etc. … And these are actually growing.” That’s of little help to general-interest news organizations, print or digital, that cover a broad range of current affairs. While some have tried to build profitable
new platforms such as magazine-style tablet editions – including Postmedia’s recently shuttered tablet experiment – a new strategy announced by the news chain in January has turned some heads in both the news and advertising industries. Postmedia’s new deal with Mogo Finance Technology will give the online short-term loan provider at least $50 million worth of advertising in Postmedia’s print and digital assets over three years, in exchange for a cut of Mogo’s revenues. Postmedia’s chief commercial officer told The Globe and Mail that the model is a way to convince startups that are hesitant to advertise with legacy media that the company is a worthwhile
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EMPLOYERS
Growing YOUR human capital
A learning & networking event for Ottawa businesses building a successful workforce. Buffet Breakfast & Keynote Speaker – Are you ready for Ottawa 2017? Mayor Jim Watson & Chantal Borst, City of Ottawa
Fit Trumps Skills – Teach your organization how to focus on fit Doug Tetzner, Director of Talent Acquisition, Shopify
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Manage Your Business in the Evolving “World of Work” Dr. Linda Duxbury, workplace expert
What’s New in Employment Law
Labour Market Ottawa would like to thank our partners and event sponsors.
Alanna Twohey, Senior Associate Lawyer, Bird Richard
Top Trends Shaping How Businesses Manage their Workforces Tom Zizys, labour market expert & Metcalf Fellow
Connect with no-cost programs and This Employment Ontario project is funded by the Ontario government.
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services to help Ottawa businesses build their human capital
MONDAY, FEBRUARY 1, 2016
Whether you are a sole proprietor or your organizaton has thousands of employees, you are part of the story.
advertising platform. If it’s not an industry first, it’s certainly a very new approach. “That’s thinking outside the box,” said Ms. Rusk. “It’s not that there’s no risk, but everything’s in it to make sure it works.” Advertisers are looking for a holistic package, and a carrier that can deliver it in full would be ideal, Mr. Kornilov said. Whether news outlets can – or should – take on that role is hard to say. “Bundling print with website banner exposure, social media, native advertising, events and so on is the way to go,” he said. “If you can help them set up their media campaign on various channels through a single media purchase, you’ll be the champion.”
SMART MONEY MOVES FAST Own for Less, Rent for More. Taking a wait-and-see approach to investing in Capital Hall condominium near Carleton University will cost you. Ottawa’s 2015 fastest selling condominium is riding the wave of demand for quality student housing. If you act quickly you can still take advantage of this emerging real estate opportunity.
F
rom leading Ottawa developer Ashcroft Homes, Capital Hall is a text book study in higher return: furnished condominiums with amenities designed for studying, lounge, 24-hour concierge, housekeeping services, bike storage, ground floor retail zone with grocery, coffee shop and more. Capital Hall is located in Little Italy a short 4 minute O-Train ride to Carleton University, closest of any available condominium. Studies show students will pay more for better amenities and the best location demands the highest rents. Capital Hall gets top marks on both key criteria,
MONDAY, FEBRUARY 1, 2016
Class Notes:
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• Turnkey Investment • Property Management • 3-Year Set Rental Rate Assurance • Fully Furnished • Cleaning Services • 24-Hour Concierge • Close to University Campus • Experienced Developer
probably why this opportunity is going fast. Investors are attracted by the security of owning real estate with a steady base of demand. With the growth of university enrolments, as well as the increase in international students studying in Ontario, student targeted condos have become hot properties, particularly for real estate investors. Many student housing projects offer complete rental and property management on site, making the investment totally hands-off, perfect for busy or out-of-town investors.
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Market watchers note that this is one segment that allows the individual investor to realize institutional level stability and returns, two major upsides. That is not to say that institutional funds aren’t investing in the student-aimed real estate market along with individual investors, ensuring growth. Last year, the Canada Pension Plan Investment Board invested over $2.4 billion in UK student focused residences and has established a proprietary rental gateway organization, reportedly planning to focus on growing this market in the UK over the foreseeable future. This January 2016, it was announced that the CPPIB has formed a joint venture to purchase $1.4 billion in US student housing to the tune of 13,000 beds across 18 communities with 4 more in development. Canada is a highly desirable destination for the huge numbers of international students from China and South Asia seeking to obtain foreign degrees. Their parents with resources insist on quality accommodation as well as on-site safety for their child. The student housing trend is not projected to abate anytime soon. All the key factors are in place for success; built-in, renewing,
medium-term, necessary, and recession-proof rental demand backed by high quality educated tenants often backed by family or government financial support.
Why Carleton University Students need Capital Hall With just 3,600 residence beds on campus for about 28,000 Carleton students, competition is fierce. Carleton University’s campus is essentially on an island, making this the only major North American University with this unique geographical constraint. This leads to an average commute of 25 minutes for Carleton students struggling between substandard rentals and classes through Ottawa winters. Capital Hall is located at 101 Champagne Avenue South, an easy 4-minute commute to Carleton University. A direct outdoor path leads from the building to the new O-Train for a fast one-stop ride to the campus - with free train passes included with Carleton tuition.
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TOURISM Ex-convention centre CEO travels new path Industry veteran Pat Kelly teams up with established consultants to launch new marketing and planning partnership BY DAVID SALI david@obj.ca
F
or nearly a decade, Pat Kelly tried to entice business to Ottawa’s downtown convention centre as its
CEO. Now, he’s on the other side of the table. Mr. Kelly left the Shaw Centre in March 2015 after eight years in charge of that facility and its predecessor, the Congress Centre. He launched his own firm, Pat Kelly Consulting, in September, and recently he forged a partnership with two other well-known Canadian tourism consultants, the Yukon’s Patti Balsillie and Montreal’s John Dunn.
Their new venture, called Floor13, offers a range of services to tourism enterprises, including sales and marketing advice, strategic planning and public relations. Mr. Kelly said he’s known his new partners for years. The three “seasoned veterans” of the tourism industry each bring different backgrounds and perspectives that make their alliance greater than the sum of its parts, he added. “We started talking about the advantages of perhaps collaborating under some kind of a brand,” he said. “The more we talked about it, the more it sounded like a good idea.” All three will remain independent consultants, working together on
bids when they feel their combined experience will give them an edge against larger competitors. “What we have found is that there are some opportunities where our chances of being successful in the bidding process are enhanced by teaming up,” said Mr. Kelly, 62, who spent decades as a hotel manager before becoming CEO of the convention centre. “We thought that if we’re going to team up fairly frequently … we found that in some cases it’s better to go under the common brand that offers the background and experiences of all three of us as opposed to one of us.” They named the business after the floor number that was long skipped over in a multitude of hotels for fear it was
Floor13’s Pat Kelly. FILE PHOTO
bad luck. Mr. Kelly said it’s their way of telling clients they aren’t afraid to be a little different. “For us, it suggests a certain degree of risk-taking, innovation, edginess and being somewhat unconventional,” he said. “This is not the typical cookiecutter consultant approach. We really take a customized approach to every client’s challenge. We’ve been in their shoes.” Continued on page 20
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Trusted advisors, for the life of your business & beyond Mann Lawyers, Doris Law Office create stronger full-service firm
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more nimble, flexible and affordable for growing businesses. “We’ve expanded our reach considerably by joining Mann Lawyers, to offer our clients a variety of services under one roof instead of having to engage with external counsel or refer clients elsewhere,” said Doris. Doris and Martin agree that ensuring clients are wellserved through all their professional and personal needs is a team effort for the long term. This team approach extends to building trusted relationships with other professional services, such as accounting. “Our client retention is exceptionally high because
we empower them and focus on their needs,” said Martin. “We have also invested heavily in succession planning, so any client can rest assured that we’ll be here for years to come.” Mann Lawyers will be maintaining the Somerset Street office and continuing in its existing space on Scott Street. The whole team looks
forward to continuing to serve clients as it always has. To learn more, please visit www.mannlawyers.com
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here share our down-toearth culture, client focus and commitment to having fun while delivering quality service.” Mann Lawyers already has a strong corporate commercial practice that works with startup entrepreneurs, seasoned executives eyeing international growth and all else in between. James Doris and the DLO team add greater depth in Eastern Ontario’s tech sector, securities law expertise, and business lawyers like Paul Franco, who can practice in both Ontario and Quebec. The result is a regional firm capable of providing service on par with a national firm, but in a manner that’s
MONDAY, FEBRUARY 1, 2016
t a law firm where even rock stars are expected to check their egos at the door and put clients first, it can be hard to find the right talent with which to grow. But Mann Lawyers has found the perfect fit in culture and values with the veteran team at Doris Law Office (DLO). Mann Lawyers now has 21 lawyers covering 11 practice areas, from commercial litigation and employment, to personal injury and wills and estates. “Since 1994, we’ve been diligently growing in a very pragmatic way,” said Mann Lawyers Partner André Martin. “We want to make sure that people who come
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Carleton Co-op: a solution for your hiring needs Hiring a co-op student is easier than you think
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MONDAY, FEBRUARY 1, 2016
ince its inception 28 years ago, Carleton University’s cooperative education has been providing labour solutions for many local, national and international employers. The program has grown to include the co-op option for over 100 degree programs, majors, concentrations and streams. Despite the clear advantages of participating in co-op, many employers still hold some common misconceptions about hiring a co-op student. Kathleen Hickey, team lead of the co-op program’s Business Development Coordinators, helps us dispel some of the most common misconceptions.
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A student cannot possibly make a meaningful contribution in four months Even though the typical co-op work term is four months, our employers are surprised at the speed at which co-op students pick things up. Organizations absolutely benefit from the knowledge and skills our co-op students are developing in the classroom. Co-op students are eager and motivated to infuse new ideas into the workplace.
We couldn’t handle the continual staff turnover At Carleton, we do have longer work terms in many programs, so employers may be able to retain a student for 8, 12, or 16 months. Coop is also an economical test drive to see if someone will fit into your organization post-graduation. It’s too confusing to figure out what programs are available Carleton’s co-op staff helps connect employers with the students and programs that will best suit their needs. Employers often post positions based on specific skills and experience, unaware their jobs could be made available to students in a host of additional programs, increasing their chances of finding a suitable candidate. I don’t have the human resources to hire a student Carleton’s Co-op Office guides employers through the hiring process. Staff members provide support from the time a job is posted to the final days of a work term. These services include advising on job descriptions, assisting with the
posting process, providing salary and funding sources, sending students’ application documents, and scheduling interviews. The hiring process is too long and complicated Carleton’s co-op program operates as a continuous process, as opposed to the contrasting rank and match system. This means employers can post jobs, conduct interviews and hire students at any time, without having to wait for ranking results to be posted. Our co-op students are available on a first-come, firstserved basis. Our process allows the employer to extend a job offer and fill the position quickly following interviews. We pride ourselves on being responsive, and can wrap things up as quickly as an employer is able to move forward! We don’t have the money to hire a co-op student Ontario companies can take advantage of the Co-operative Education Tax Credit, a refundable tax credit of up to $3,000. This tax credit can be claimed for each four-month co-op work term.
There are also various funding programs available to help defray the costs of hiring a co-op student, and Carleton’s Business Development team can provide suggestions. Hiring a co-op student will be a drain on staff productivity We take the time to ensure our students are prepared to be in the workplace, ready to contribute and be an asset to the organization that’s hired them. All undergraduate co-op students must successfully complete a co-op preparatory course that covers resume and cover-letter writing, interview preparation, and professional workplace etiquette. Students are also required to have, at minimum, an 8.0 CGPA in order to participate in the co-op program. Learn more Carleton is inviting all employers to post co-op jobs now for the summer work term, which begins May 1, 2016. For more information about Carleton’s co-op program, please visit cuhire.carleton.ca or contact Kathleen Hickey at kathleen.hickey@carleton.ca
THE INAUGURAL
ARNIE VERED DINNER
Honouring Families in Business
80% of businesses are family-owned employing almost 50% of our workforce. The Canadian Association of Family Enterprise (CAFE Ottawa) and GGFL Chartered Professional Accountants are hosting an event to honour families in business. This inaugural gala will celebrate family enterprise in Ottawa, named in memory of Arnie Vered, a long-standing member of CAFE. He was a strong advocate of assisting families in business to sustain economic prosperity, while simultaneously safeguarding family harmony.
LEAD SPONSORS
Roger Greenberg Executive Chairman, The Minto Group
Mark Sutcliffe Journalist and Broadcaster
DETAILS
Saturday, March 5th, 6-11 p.m. Fairmont Chateau Laurier
TICKETS
CAFE member Non-member Family/Corporate Table of 8
$200 $250 $2,500
Tickets: Contact Erin Binks, Managing Director CAFE Ottawa at ottawa@cafecanada.ca or 613-232-2233
GOLD SPONSORS
SILVER SPONSOR
MEDIA SPONSOR
MONDAY, FEBRUARY 1, 2016
The recipient of CAFE Ottawa’s Family Enterprise of the Year Award will also be honoured.
FEATURING
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FOOD & ENTERTAINMENT Elgin Street makeover on the menu Popular entertainment strip sees changing of the guard thanks to shifting tastes, demographics BY DAVID SALI david@obj.ca
W
hile many people would say he’s joining an Elgin Street restaurant scene that is in the midst of upheaval, Joshua Bishop prefers to think he’s arriving right on time for a revival. The co-owner of The Whalesbone on Bank Street says his new location, slated to open this spring in the former @Home housewares store at 231 Elgin St., is just one more addition to a restaurant district that is evolving for the better. “Perfect timing,” he says. “There are lots of great things happening on (Elgin) Street. The more the merrier.” One of Ottawa’s most popular dining and entertainment strips made headlines recently when venerable nightspot Maxwell’s at 340 Elgin announced it was closing its doors for good on Jan. 17 after 30 years in business.
Although it once thrived as a combination nightclub and restaurant, Maxwell’s had simply run its course as a go-to destination for food and drinks, says retail analyst Barry Nabatian of Shore Tanner & Associates. “It definitely needs renovation,” he says of the second-floor bar. “It needs different colours, a different concept and it has got to attract different demographics. They have to change their image.” Despite dining out more than anyone else in the country – the average Ottawan spends about $1,300 a year on food at restaurants, pubs and coffee shops – residents of the capital are tightening their belts, says Mr. Nabatian, and Maxwell’s is simply the latest casualty. The ground-floor restaurant changed its menu about a year ago, but even that wasn’t enough to stave off the inevitable, he adds, noting the establishment’s failure is part of a disturbing trend for Ottawa eateries.
“Things just did not work out and it’s really not surprising. Most restaurants in the city of Ottawa are not doing well. It is quite a challenge for them and quite a number of them are near bankruptcy.” – RETAIL ANALYST BARRY NABATIAN, ON THE CLOSURE OF MAXWELL’S
“Things just did not work out and it’s really not surprising,” Mr. Nabatian says. “The reason is not that anything was necessarily wrong with them. The reason is that people are just not going out as much. Most restaurants in the city of Ottawa are not doing well. It is quite a challenge for them and quite a number of them are near bankruptcy.” But there are exceptions, he notes. Restaurants that focus on vegetarian and organic offerings – “anything that is kind
of new and has got cachet” – seem to be doing fine. He thinks the establishment that will soon replace the restaurant portion of Maxwell’s, vegetarian and vegan eatery Pure Kitchen, will find a niche on the street. It will be Pure Kitchen’s second location in the city. “In Ottawa, we do not have that many good vegetarian restaurants,” Mr. Nabatian says. “The location is right for them. It will be quite a novelty and I think that at least for a couple of years it
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n Ecuador’s balmy Pacific coast, properties cost two to four times less compared to other desired destinations in Latin America. Land values have shot up by 80 per cent since 2012. That’s just the beginning, according to Gordon Poole, VP Design and Construction at Ottawa’s HolaEcuador Property Development Inc. When HolaEcuador went looking for the ideal location in Latin America for retirement living and real
estate investment, Ecuador was the obvious choice. “We decided on Ecuador after visiting Mexico, Costa Rica and Panama,” said Poole. “With the property boom that’s taking shape in that country, it was time to seize the opportunity.” That was six years ago. HolaEcuador has since been busy, with a 130-acre masterplanned gated community in Ecuador, 60 kilometres south of the city of Manta and its international airport. Only a few hundred of the
BEACHFRONT OF HOLA EQUADOR CONDO PROPERTY. 1,700 lots are still available for purchase. Early buyers are already enjoying a spectacular beach, lush parks and an extensive sports complex, with 24/7 security. Boutiques, restaurants and other services are forthcoming. A PROFITABLE INVESTMENT But it isn’t just about living an enviable retirement lifestyle in one of the safest countries in South America.
HolaEcuador is offering a profitable investment opportunity. “With the Galápagos Islands, the Andes, the Amazon rainforests, spectacular sandy beaches and warm and welcoming people, Ecuador is a great destination to own a vacation home from which you can generate considerable revenues,” Poole said. “We’ve seen owners generate as much as
IT’S EASY TO BUY – LEARN MORE HolaEcuador has the team to get you there with no regrets. Buyers sign a Canadian contract with a Canadian company, and are guaranteed full title to their land. HolaEcuador is hosting free information seminars. To reserve your spot, please contact Michel Sylvestre at 613-518-2077 or book online at Holaecuador.ca ORLEANS SEMINAR: Saturday, February 6, 2016, 1:30 p.m., Quality Inn Orleans, 3363 St Joseph Blvd. GATINEAU SEMINAR (IN FRENCH): Tuesday, February 9, 2016, 7 p.m., Quality Inn & suites, 111 Bellehumeur St.
Whalesbone owner Joshua Bishop is opening a second location on Elgin. PHOTO BY MARK HOLLERON
will do well, if and only if they keep their prices in check.” Although it serves mainly seafood, he also expects Whalesbone to do well at its new location because it already has a devoted following on Bank Street for its quality oysters and other seafood as well as its rustic atmosphere. “They have developed a very good reputation and I think that people are
quite receptive to what they have,” he says. The second Whalesbone location will be 3,600 square feet, about four times the size of the Bank Street establishment, with seating for 90. The menu will likely feature more red meat, Mr. Bishop adds, and the site will also be the new home of Whalesbone’s wholesale operations.
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Continued from page 15 While Mr. Kelly’s resumé is weighted toward the operations and strategic planning side of the industry, he said Mr. Dunn brings extensive expertise in sales and marketing to the table while Ms. Balsillie has a history of working with non-profit organizations and aboriginal groups. That diversity has already paid off, he said, noting the partners won two contracts before they even made their venture public. “From my perspective, this is quite encouraging,” he said. “There are some bid opportunities where being able to put all of that background experience under one brand really works to our
advantage and helps us to compete a little bit more effectively against some of the bigger hospitality consulting houses.” Mr. Kelly said he has no regrets about striking out on his own. “It’s something I’ve always wanted to do,” he said. “There’s something quite rewarding about running your own business. It’s certainly a learning experience, and so far I’ve thoroughly enjoyed it.” After years of living in Stittsville and making the daily trek downtown, he’s loving the convenience of running his business from home. “I certainly don’t miss the commute into work and back every day,” he said with a chuckle.
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Proposed tax changes may hurt small business owners
T
he current federal government made election promises which could increase the amount of tax small business owners and their families’ pay, and these changes may become a reality with the upcoming 2016 budget. “Small business corporations should be very concerned with any changes affecting their tax status,” says Alaina Spec, a partner at Low Murchison Radnoff LLP, who practices in the areas of estate and corporate law, with a focus on tax issues. In its election platform, the government stated it “will ensure that Canadian Controlled Private Corporation, or CCPC, status is not used to reduce personal income tax obligations for high-income earners rather than supporting small businesses.” Most small business corporations in Canada are Canadian Controlled Private Corporations (CCPC). CCPC status means that the corporation is entitled to claim the small business deduction, resulting in a reduction of the tax that would otherwise be due. In addition, small businesses often structure their corporations to include family member shareholders, allowing them to share income and reduce the amount of tax paid. The government has not provided clarification on its statement. But in advance of the pending 2016 budget, possible changes to CCPC status are weighing heavily on the minds of small business owners, Spec says. “Many of our clients have set up corporations specifically to comply with the existing tax rules, and any changes to those rules will significantly affect how these businesses operate.”
WHAT IMPACT IT WILL HAVE “Eliminating the tax benefits for these individuals means existing corporate structures and this type of tax planning would be essentially useless,” Spec says. “Without these tax benefits, many will simply not incorporate, choosing instead to run their business through an inappropriate business structure, if at all.” Effectively, the implementation of either or both of these changes would result in a marked decrease in the use of corporations, particularly for high-income individuals. Many groups have been strongly advocating against these types of tax changes, suggesting that targeting these tax driven uses of corporations does not produce an even or fair tax treatment or result. “Being a small business owner
is a challenge – but there have always been some tax benefits for those willing to take on the risks of owning their own business,” Spec says. “These proposed changes will eliminate those benefits and need to be very carefully considered.” For more information contact Alaina Spec at aspec@lmrlawyers.com or 613-696-1312.
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While the election promise was vague, industry specialists are speculating on what changes may be made. The government may consider limiting the small business deduction to private corporations that employ a minimum number of employees, said Jamie Golombek, managing director of tax and estate planning at CIBC Wealth Advisory
Services, while speaking recently to the Ottawa Estate Planning Council. This rule has already been implemented provincially in Quebec, where, starting in 2017, certain types of corporations must employ three or more employees to qualify for the Quebec small business deduction. This change will have significant implications for small business corporations, particularly those working in the technology sector, as well as for professional corporations, as the founder, along with their spouse/partner or children, would often be the only employees of the corporation, Spec says. Another possibility suggested by Golombek was that the government may impose tax at the highest marginal rate on dividends paid to family member shareholders such as a founder’s spouse/partner or adult children. This would effectively remove the incentive to income split. Founders often add their spouse and children as shareholders, with the goal of paying them dividends over time. For example, helping an adult child pay for college or university.
MONDAY, FEBRUARY 1, 2016
WHAT COULD CHANGE
“Without these tax benefits, many will simply not incorporate, choosing instead to run their business through an inappropriate business structure, if at all.”
THE LIST 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 MONDAY, FEBRUARY 1, 2016
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Company/Address/ Phone/Fax/Web Nokia 600 March Rd. Ottawa, ON K2K 2E6 613-591-3600 nokia.com Ciena Corp. 3500 Carling Ave. Ottawa, ON K2H 8E9 613-670-2000 ciena.com Cisco 1700-340 Albert St. Ottawa, ON K1R 7Y6 613-788-7200 cisco.com/ca Sanmina 1100-500 Palladium Dr. Kanata, ON K2V 1C2 613-886-6000 / 613-886-6001 sanmina.com Lumentum Operations LLC 61 Bill Leathem Dr. Ottawa, ON K2J 0P7 613-843-3000 / 613-843-2800 lumentum.com OZ Optics 219 Westbrook Rd. Ottawa, ON K0A 1L0 613-831-0981 / 613-836-5089 ozoptics.com BTI Systems Inc. 200-1000 Innovation Dr. Ottawa, ON K2K 3E7 613-287-1700 / 613-287-1886 btisystems.com Iridian Spectral Technologies Ltd. 2700 Swansea Cres. Ottawa, ON K1G 6R8 613-741-4513 / 613-741-9986 iridian.ca Plaintree Systems 10 Didak Dr. Arnprior, ON K7S 0C3 613-623-3434 / 613-623-4647 plaintree.com OneChip Photonics Inc. 200-495 March Rd. Ottawa, ON K2K 3G1 613-226-6117 / 613-226-7871 onechipphotonics.com Lumenera Corp. 7 Capella Crt. Ottawa, ON K2E 8A7 613-736-4077 / 613-736-4071 lumenera.com Pleora Technologies 300-340 Terry Fox Dr. Kanata, ON K2K 3A2 613-270-0625 / 613-270-1425 pleora.com Optelian 1 Brewer Hunt Way Ottawa, ON K2K 2B5 613-287-2000 / 613-287-2001 optelian.com COM DEV International 100-303 Terry Fox Dr. Ottawa, ON K2K 3J1 613-591-7777 / 613-591-7789 comdev.ca Light Machinery 1-80 Colonnade Rd. N. Nepean, ON K2E 7L2 613-749-4895 / 613-749-8179 lightmachinery.com B-Con Engineering Inc. 14 Capella Crt. Nepean, ON K2E 7V6 613-727-0021 / 613-727-0493 bconeng.com Optiwave Systems Inc. 7 Capella Crt. Ottawa, ON K2E 7X1 613-224-4700 / 613-224-4706 optiwave.com Applied Micro Circuits Corp. 1 Hines Rd. Ottawa, ON K2K 3C7 613-254-6700 / 613-254-6701 apm.com BMV Optical Technologies 26 Concourse Gate Ottawa, ON K2E 7T7 613-228-2442 / 613-228-4003 bmvoptical.com Altera Corp. 104-411 Legget Dr. Kanata, ON K2K 3C9 613-591-6850 / 613-591-6832 altera.com
No. of Ottawa Key Ottawa-based employees executive(s)
LARGEST PHOTONICS COMPANIES (RANKED BY NO. OF LOCAL EMPLOYEES)
Year established Publicly Traded?/ in Ottawa Listing
Major clients
Product description
2006
Y NASDAQ Helsinki: NOKIA NYSE: NOK
Bell Canada; Telus; SaskTel; Shaw Communications
Develops software, hardware and services for any type of network.
James Frodsham senior vice-president and chief strategy officer
1992
Y NASDAQ: CIEN
Telecommunications
Network equipment specialist providing systems, software and services to service providers, governments and enterprises.
550
Kim Devooght Subir Chadha
1984
Y NASDAQ: CSCO
Government; small, medium and large enterprises; service providers
Borderless networks; collaboration; data centre and virtualization; routers and switches; security and surveillance; home and small business services
450
Geoff Beale vice-president of operations and plant manager
1980
Y NASDAQ: SANM
WND
Manufactures optical and radio frequency/microwave products. Develops custom end-to-end supply chain, manufacturing processes, tests and tools.
359
Doug Alteen vice-president of product line management, telecom
2015
Y NASDAQ: LITE
WND
Technologies that enhance communications; secure financial transactions; consumer electronics.
240
Omur Sezerman president and CEO
1985
N
Telecommunications; military/aerospace; oil and gas; industrial; medical and pharmaceutical
Fibre-optic components; test equipment; sensor systems
150
Robert Keys chief technology officer
2000
N
CyrusOne; PacNet; Interxion; Equinix; Rackspace; VK; Fujitsu
Delivers solutions that transform the economics, performance and innovation of global networks through intelligent networking software and systems. (Note: BTI has been acquired by Juniper Networks, effective second quarter 2016.)
110
George Laframboise president
1998
N
WND
Provides optical thin film solutions and coating services to a wide variety of industrial and research sectors. Global supplier for applications in telecommunications, spectroscopy and the entertainment industry.
80
David Watson CEO
1988
Y CNSX: NPT
WND
Free space optics – line-of-sight technology using LED to provide data, voice and video through the air.
78
Jim Hjartarson CEO Valery Tolstikhin founder and chief technology officer
2005
N
WND
Develops and manufactures low-cost, high-performance optical transceivers based on monolithic photonic integrated circuits in indium phosphide for access networks and other mass-market broadband applications.
60
Huw Leahy president Dany Longaval vice-president of sales
2002
N
Industrial, scientific, security and astro imaging worldwide.
Develops and manufactures digital cameras for industrial, scientific and surveillance applications; offers custom design services to OEM partners requiring specialized hardware and software features.
55
George Chamberlain CEO Harry Page president
2000
N
WND
Supplier of GigE and USB 3.0 video interface products for high-performance factory automation, medical, transportation, and security imaging systems.
50
David Weymouth CEO
2002
N
WND
Develops, manufactures, sells and services multi-technology packet optical networking solutions for access, metro, long-haul, mobile backhaul and enterprise campus and data center applications.
40
Marina Mississian vice-president of advanced systems group
1974
Y TSX: CDV
CSA; DND; NASA
Designs and builds optical space instruments and microsatellite missions for application in areas such as earth remote sensing, astronomy, atmospheric sciences and space situational awareness.
35
John Hunter president
2002
N
Medical device manufacturers; government labs
Pulsed gas lasers (Excimer and TEA CO2); precision optics
25
Brian Creber chief technology officer and president
1988
N
WND
Optics manufacturing company producing aspheric, diamondturned, free form, plastic optics, and using advanced metrology techniques to provide advanced optical components and optical systems.
25
Jan Jakubczyk CEO Bryan Tipper director of sales and marketing
1994
N
General Dynamics; Huawei; NTT; Fortune 500 companies; universities and government research labs; US, Japanese, European markets
Provider of software design tools for optoelectronic and optical system engineers, hosting a suite of simulation software products.
22
John Carr senior director
1979
Y NASDAQ: AMCC
WND
Provides network and embedded power architecture processing, optical transport and storage solutions.
20
Tom Millen president Terry Vineham vice-president
2001
N
WND
Manufacturer of precision optical components primarily used in laser-based applications. Also manufactures optical lens systems and thin film coatings. Sectors served include military, medical, telecom, R&D and commercial industries.
20
John Daane president, CEO and chairman of the board
1983
Y NASDAQ: ALTR
Other high tech
Combines expertise in optical networking with programmable logic to create solutions that provide optimum levels of integration and flexibility while addressing increased development cost and time-to-market challenges.
2200
James Watt chief operating officer of IP/optical networks group
1500
WND = Would not disclose. *Did not respond to survey – using data from previous years. Should your company be on this list? If so, please send details to research@obj.ca This list is current as of February 1, 2016. © 2016 by Ottawa Business Journal. All rights reserved. This material may not be reproduced by any method in whole or in part without written permission by Ottawa Business Journal. While every attempt is made to ensure the thoroughness and accuracy of the list, omissions and errors sometimes occur. Please send any corrections or additions by e-mail to research@obj.ca. OBJ lists are primarily compiled using information provided voluntarily by the organizations named. Some firms that may qualify for the list are not included because the company either failed to respond to requests for information by press time, because the company declined to take part in the survey or because of space constraints. Categories are drawn up in attempt to gather information of relevance to the Ottawa market. Research by Patti Moran. Please send questions and comments to research@obj.ca.
FOR THE RECORD People on the move
Jeffrey Coghlan has joined Borden Ladner Gervais LLP’s intellectual property, patents and information technology practices group as an associate. He was called to the bar in 2009.
BDO Canada LLP has welcomed four new additions to its Ottawa accounting office. Prior to joining BDO, Michelle Martin, David Harmer, Percy Chohan and Louise Leduc worked for the Michelle Martin CA Professional Corp., which has since joined BDO. Ms. Martin and her team will join the private-sector group, bringing expertise in both private enterprises and U.S. taxes.
Sidense announced that Ken Wagner has joined the company as senior vicepresident of engineering. Mr. Wagner has more than 25 years of experience in electronic systems as a hardware and embedded software engineer, researcher and senior manager, most recently with PMC-Sierra, and for other companies such as IBM, Stream Machine and Siemens.
Jack Noppé has been named to the position of chief technology officer for Kinaxis. He brings more than 20 years of experience to his new role, including positions at Synergy Computing, Cognos and IBM. Most recently, he was chief product officer at Toronto-based Terapeak.
James Doris, Brian McIntomny, Paul Bell Browne Molnar & Delicate Franco and Jill Snelgrove, formerly of the Doris Law Office, have joined Mann ONLINE LANGUAGE COURSES Lawyers LLP. Colleen Hoey and Daniella EFFICIENT FRENCH Sicoli-Zupo have also been named as WITH ALLIANCE FRANÇAISE partners to the firm.
and channel sales experience to his new position.
Shopify has announced the appointment of Harley Finkelstein as its new chief operating officer. Mr. Finkelstein was formerly the company’s chief platform officer and helped build the Shopify Partner program and Shopify Plus. Marco La Vecchia has joined TUC Managed IT Solutions as vice-president of sales. Mr. La Vecchia will lead TUC’s North American sales strategy. He brings more than 15 years of enterprise
Contracts The following contains information about recent contracts, standing offers and supply arrangements awarded to local firms. Teknion Ltd. 55 Metcalfe St. Description: Office furniture – Carling Campus (phase 1) Buyer: PWGSC $12,733,000 Black & McDonald Ltd. 2460 Don Reid Dr. Description: Compressor replacement and ventilation upgrade Buyer: PWGSC $2,905,880
Consulting Inc. 55 Murray St. Description: Research, evaluation, performance measurement services Buyer: Department of Indian Affairs and Northern Development $1,500,000 Enterprise Rent-A-Car Ltd. 2300 Stevenage Dr. Description: 2016 car rental directory Buyer: PWGSC $1,500,000 Aviscar Inc. 345 Slater St. Description: 2016 car rental directory Buyer: PWGSC
$1,500,000 Power-Tek Electrical Services 155 Iber Rd. Description: Fire alarm and detection systems Buyer: PWGSC $1,424,000 ESRI Canada Ltd. 1600 Carling Ave. Description: ADP software Buyer: DND $1,025,600 Dynamex Canada Ltd. 60 Colonnade Rd. Description: Mail and messenger services Buyer: Treasury Board of Canada $897,431
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