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FEBRUARY 2006 WWW.EDMONTONIANS.COM FREEVOL.XVII NO.2

Renovation:$3.8 billion

business•

RENO SHOWGUIDE INSIDE

•Terrorized?

Forbes•

60 MinutesWegmann-Sanchez

•Shareholder

wealthHiebert

Linda Bodo& Showman Rick Young

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EDMONTONIANS FEBRUARY 2006

ave you driven past WeberMotors on Calgary Trail South andwondered about all the construction?Well, wonder no more. I was curious

about the new front door so close to a majorroadway. Turns out, the former Mercedes Benzshowroom will become the exclusive showcase forthe new Smart Car. A sparkling new showroom forthe Benzes is being built on the north side, wherethe used car lot will also be located.

The shock to me was that the oddly shaped, littleSmart Car will actually have its own showroom.I’m told Weber sells every one it can get its handson. My trouble with the Smart Car is that I’m anextra large, and it’s a medium.

Over at the Mazda dealership down the road,nothing is changing—it just keeps humming along.

I’m so glad pant manufacturers are finallymaking trousers with an expandable waist. Itstretches a couple of inches—perfect for those ofus with that male deformity known as Noassatol.My image from the side is straight up and down atthe back. Normal pants in my correct size flap in astrong wind. Now, with the advent of the flexiblewaist, I can buy a pair one size smaller—and voila!There’s no flapping. Amazing, the things you learnreading me.

Teddy’s Restaurant has been sold. I’ve been aregular for many years. My first memories are of aplace with white wooden siding, more like a largehouse than a business. Teddy’s has always been inthe same location, 114 Street and Jasper Avenue. AsI recall, when you walked in, the cafe was on theleft, complete with stools at sort-of horseshoecounters with booths at the back wall. On the rightside was the convenience store/deli with a fewgroceries and lots of good smoked meat. Even then,it was famous for its smoked meat and it became awell known hangout for many of us up-and-comingtypes. (At least we thought we were pretty hot stuffin the ’50s with our zoot suit pants and long chains.These fashion classics were 32 inches around theknee with about 12 inches around the ankle—zippered so you could get into them.) The smokedmeats are as good today as they were back then.

The gentleman who bought the landmark has lotsto live up to. Nasrollah Ghalehdar has been in thefood business for 18 years. He says the only changehe’s making is that the upstairs will be fine dining

with a Mediterranean theme. “Healthy,” he said.Healthy, schmealthy—just don’t fool around withthe smoked meat. When my son Cam comes infrom Vancouver, Teddy’s is his first stop, he cravesit so badly.

Never travel with one of my co-workers atMBS Insurance Brokers Ltd. Late last year, JimMcLaughlin and his wife Judy headed off toHonolulu for a holiday. With about 45 minutes to flighttime, they were going through security in Vancouver.Inexplicably, Jim was hauled out of the line and takento a holding room by U.S. Customs. They wentthrough his papers: passport, not good enough…driver’s licence, acceptable. They asked him a lot ofquestions. He reminded them of his flight time.

At one point, a U.S. Customs officer rushed in,cell phone at his ear, and asked if he had been inNorthern Ireland recently. (Remember thisquestion.) Jim said, “Of course not!” and told themhe’d never been outside North America. When theyfinally said he could leave, he mentioned to the AirCanada rep in the room that there was only fiveminutes to take off. She said they would hold theplane.

When Jim and Judy reached the Air Canadacounter, their seats had been sold and the plane hadgone. Now what? Well… since Air Canada didn’tcause the McLaughlins’ delay, Jim and Judy wereon their own. Hotel, food and taxis, plus one daylost from a pre-paid holiday: about $500. Onemissed day with relatives: priceless.

Air Canada sort of goes underground when itcomes to a user-friendly complaint system. Thereare no phone numbers, just an e-mail address. Jimwrote but it didn’t do much good. No apology fortelling him the flight would be held, no explanationfor the seats being sold. The response did end with:“We hope you’ll fly with Air Canada again.” Uhh,uhh… not likely.

Now, back to the question. The Honoluluencounter faced by Jim also occured when U.S.Customs hauled him out of a line as he was leavingfor a business trip to Las Vegas. This time, hedidn’t miss the flight.

Jim actually has been escorted to a U.S. Customsholding room four times since 9-11. What’s sofrustrating is that no one will tell him the problemor put a note on his U.S. file. Based on what he’sasked in these sessions, Jim thinks he has the samename as an Irish terrorist. Remember the question?

Does Edmonton’s Jim McLaughlin look like anotorious Irish James McLaughlin?

My thanks to Ron Funnell, the new executivedirector of Ronald McDonald House, for touring methrough the facility at 7726-107 Street. I hadn’t visitedin many years. The brightness, comfort, and planningthat went into ensuring the clients, in their time ofstress, feel more at home is impressive. Now, becauseof the success of the Stollery Children’s Hospital,families are being turned away due to lack of space.Expansion plans are in the works. Land acquisition wasa primary factor, and so was deciding whether it shouldbe closer to the current location or to the Stollery.

The executives of Ronald McDonald House tookadvantage of an opportunity and approached theelderly lady who owned the property directlybehind the existing home. She agreed to sell. Theyasked if she knew who owned the property nextdoor... She did but suggested that the owner was amean old guy (actually stronger words were used)who would never, never sell. Upon searching thetitle, the mean old guy turned out to be anotherelderly lady who had recently sold the place tosomeone else. Well… the minister who bought itfound it in his heart (no surprise) to sell to theRonald McDonald House group. How great is that?

I met House Manager Joan Hayes. I think sheshould be called the House Mother. She has agentleness about her that makes her a natural forthe job she has held for the past eight years. TomBurke is the chair of the 13-director board, alldedicated to the House… and probably heavydrinkers of coffee under the Golden Arches.

Funding comes from the public, government andMcDonald’s. Make sure you add Ronald’s House toyour charity list.

I’m glad the CBC’s drive home guy, PeterBrown, is back on air regularly. The CBC is myfavourite radio station. During the strike, I triedother stations, but found either shouting, nothingbut music, or not particularly interestingcommentary. Peter seems to have more holidaysthan a Catholic calendar. ✔

Additional reporting by Edmontonians’ staff.

Call Muggsy Forbes at 780.482.4545 ore-mail [email protected]

FUNNYpompous & unfair

By Muggsy Forbes

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Travel alertEdmontonians terrorized by U.S. Customs

EDMONTONIANS FEBRUARY 2006 3

Proof____2_______________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

WHAT IS YOUR MAIN SOURCEOF DRINKING WATER AND WHY?

To begin, respondents were asked what theirmain source of drinking water was. Overall,58 percent indicated that unfiltered tap waterwas their main source for drinking, while 18percent drank filtered tap water. Elevenpercent mainly drank water from a cooler, anda further 11 percent preferred bottled water.

There were a number of reasons whyrespondents did not drink unfiltered waterfrom the tap. While the top reason (21percent) was merely a preference for bottledwater, 18 percent felt there was too muchpollution in unfiltered water, while ninepercent did not enjoy the amount of mineralsin regular tap water. Six percent indicatedunfiltered tap water tasted like chlorine, andanother six percent were concerned aboutparasites, bacteria, or disease in their water.

ARE YOU CONCERNED ABOUT THECITY’S WATER SUPPLY AND QUALITY?Respondents were asked whether they wereconcerned about the City’s water supply afterthe North Saskatchewan River flooded lastJune. Eighty-four percent stated they were notconcerned at all, while 15 percent indicatedthey did have some concerns regarding thequality of the City’s water supply. Respond-ents were also asked about their views on theCity’s ability to purify Edmonton’s watersupply. Overall, 88 percent felt the City did a

good job of keeping the water clean, whileeight percent did not feel that the City wasdoing a good job.

NATIONALLY, WHICH SECTORCONSUMES THE GREATEST AMOUNTOF FRESH WATER?Switching to a more national perspective,respondents were then asked what sector theyfelt utilized the largest amount of freshwaterin Canada. Of those asked, 16 percent thoughtthe agricultural sector used the most, whileseven percent thought the industrial sectorused the most freshwater. Interestingly,according to the CRIC, in 1999 thermal powergeneration constituted 64 percent of allfreshwater use in Canada, while manufact-uring used 14 percent, municipalities utilized12 percent, agriculture 12 percent, and miningused one percent of the freshwater supply inCanada.

Finally, respondents were asked whether theCanadian government should implementstricter water use policies in Canada. Three-quarters of respondents felt there is a need forfirmer water policy in Canada (particularlyregarding water conservation), while 24percent did not see any need.

The Poll Station surveyed 100 City of Edmontonresidents on the topic and, while the results of theresearch are not statistically reliable, they doprovide a qualitative indication of whatEdmontonians are thinking. ✔

Linda Banister is a certified managementconsultant and the owner of Banister Researchand Consulting Inc., a full service provider ofmarket research and program evaluation services.If you have a question you would like included inthe Edmontonians Poll, contact Linda at780.451.4444 or e-mail [email protected]. For furtherinformation on the firm visit www.banister.ab.ca.

STATIONater is an essential aspect ofdaily life throughout the world,yet only 2.5 percent of theworld’s water is freshwater. As

Canadians, we are fortunate to have access toroughly nine percent of the world’s accessiblefreshwater, according to the Centre for Researchand Information on Canada (CRIC) website.Edmontonians were asked about their use andviews on Canadian freshwater.

WWWith Linda Banister

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FOUNDERDICK MacLEAN

FEBRUARY 2006Vol. XVII

Published by 399620 Alberta Ltd. on the first day of eachmonth at 333, 10240 - 124 Street, Edmonton, Alberta,Canada T5N 3W6. ©All rights reserved. No part of thispublication may be reprinted or reproduced in any formwithout written permission from the publisher.

Manuscripts: must be accompanied by a stamped, self-addressed envelope. Edmontonians is not responsible forunsolicited manuscripts.

All stories Copyright ©Edmontonians

Publications Mail Agreement No. 40023292Return undeliverable Canadian addresses to:Circulation Department333, 10240 - 124 StreetEdmonton, AB T5N 3W6Email: [email protected]

SHARON MacLEANPublisher and Advertising Director

Telephone: 780.482.7000Fax: 780.488.9317

e-mail: [email protected]

INSIDEFUNNY, POMPOUS AND UNFAIRTravel alert/Forbes . . . . . . . . . . . . . . . . . . . . . . . .2

POLL STATIONFreshwater supply/Banister . . . . . . . . . . . . . . . . . .3

FEATURERenovation generation/Deters . . . . . . . . . . . . . . . .4

LIVELY LIFESTYLESMenu Magic/Berry . . . . . . . . . . . . . . . . . . . . . . . .6Absolute Bodo/Bodo . . . . . . . . . . . . . . . . . . . . . . .7

RENOVATION SHOW GUIDE . . . . . . . . . . . . . .8/9

COVER STORYThe Showman/Deters with Roccia . . . . . . . . . . . .10

INTERNATIONAL BUSINESSGoing Dutch/Wegman-Sanchez . . . . . . . . . . . . . .11

MAKING MONEYShareholder wealth/Hiebert . . . . . . . . . . . . . . . . .12

BUSINESS WITHOUT BORDERSPrudent angels/Mothersill . . . . . . . . . . . . . . . . . .12

BIZINTELScience and Tech/Croucher . . . . . . . . . . . . . . . . .13 Media Minute/Hogle . . . . . . . . . . . . . . . . . . . . . .13BizIT/Michetti . . . . . . . . . . . . . . . . . . . . . . . . . . .14Civic Buzz/Norwood . . . . . . . . . . . . . . . . . . . . . .14

DOWNTOWN ACTION . . . . . . . . . . . . . . . . . . .15

BARB DETERSEditor

[email protected]

COLUMNISTSLinda Banister

Linda BodoCheryl CroucherMuggsy Forbes

Ron HiebertBruce Hogle

Greg MichettiW. Daniel Mothersill

David NorwoodNizar J. Somji

Jessica Wegmann-Sanchez

FEATURE WRITERSMurray Donaldson

Peter Drake McHughMichael O’TooleMarg. PullishyPeter Roccia

PHOTOGRAPHERSTerry Bourque

Cheryl CroucherBarb Deters

Ed EllisTerry Ellis

GRAPHIC PRODUCTIONRage Studios Inc.

INFORMATION TECHNOLOGYMichetti Information Solutions Inc.

THIS MONTH’S COVER

Ready to Reno...Linda Bodo with Rick Young at Alterity Interiors

Cover photo by Ellis Brothers Photography

No. 2

1717YEARS

C E L E B R A T I N G

In his timeless classic, “Think and Grow Rich,”

Dr. Napoleon Hill describes theMastermind as “Coordination of

knowledge and effort, in a spirit ofharmony, between two or morepeople, for the attainment of a

definite purpose.”

He further states, “Analyze therecord of any man who has

accumulated any great fortune, andmany of those who have

accumulated modest fortunes, andyou will find that they have either

consciously or unconsciouslyemployed the Mastermind

Principle. Your understanding ofthis truth may definitely determine

your financial status.”

The Mastermind Club’s purpose isto educate and inspire people to

create greater success in their livesby applying the Principle of the

Mastermind.

The club meets every Wednesdayevening from 7:00 – 10:00 at the

Fantasyland Hotel, West EdmontonMall, Edmonton, AB. See more

details about their events atwww.MastermindClubs.com or

contact Sandra at 1.866.913.6287

Get a FREE Report “The Billion Dollar Sales Letter”

by sending an email [email protected]

THE MASTERMINDPRINCIPLE

ATTENTION BUSINESSOWNERS, EXECUTIVES,

ENTREPRENEURS,INVENTORS...

ExecutiveWelcome

Do you know of an executive whois new to Edmonton, recentlyjoined a company or newlypromoted? If so, let Cecile Lupulhelp them find their way aroundthe city’s business community.

Call Cecile Lupul today:Phone/fax: 780.922.6413

E-mail: [email protected]

4

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emember the Money Pit? If that isn’tenough to turn you off renovating yourhouse, surely the horror stories onHGTV’s Holmes on Homes should be

a discouraging factor.Apparently not.Fuelled by a buoyant economy, Albertans are

spending billions on renovating their homes. In2005, we expended $3.8 billion on upgrading, not farbehind $4.2 billion on new home construction. Andthere’s a good chance far more reno bucks—eitherspent by do-it-yourselfers or paid out in cash deals—didn’t register in the official calculation.

This is big business, a growing sector in theconstruction industry. The Alberta Home Builders’Association includes a Renovation Council that wasformed in the mid-1990s to differentiate thesespecialty builders.

According to Bob Schulz, chair of the Council, “Itbrings together renovators, trades, and suppliers.Builders have a million rules and regulation issues,but we found renovators have a different set ofissues. Our purpose is threefold: one, publiceducation, to inform the public better about whatrenovating a house or condo involves… two, toencourage people to use our members… and three, toget information and network through a provincialset-up.”

In addition to the members of the Council,Edmonton boasts a number of highly reputablerenovation contractors that have been around sincethe emergence of home remodeling about 20 yearsago.

Back then, a nice reno cost about $12,000.Nowadays, that gets you a nice bathroom.

“We have to remember that in the past we’ve seenmortgage rates between eight percent and 18 percent.Now they’re at 4.25 percent.” says Schulz who iswith The Renovation Corporation. “In the 1970s, we

sold homes for under $20,000. You can’t buy thosehomes for that price now. In St. Albert, thepopulation has grown to 55,000 from 5,500. A homethat went for $18,500 then would go for $200,000now. If you’ve owned that house for 35 years now,

that house owes you nothing. You can still renovateit, sell it, and have a nest egg.

“A new buyer can pick up a home for $300,000and then choose to renovate or rebuild… spendbetween $200,000 and $300,000 for a reno.

“Younger people want to enhance what they have.They’ll do a basement or a kitchen or a bathroom. Afamily will revise a kitchen and maybe make anaddition, knock off a half story and make it full.Professional couples tend to be more aggressive,maybe blow out the kitchen.

“In the ’70s and ’80s, the more rooms there were,the better, so you got homes with lots of smallrooms,” explains Schulz. “Now there’s more of agreat room concept, one big room with morefunctions. People operate differently. Not as manyneed a dining room anymore, because people stilltend to congregate in the kitchen. They want bars,islands—open spaces from which you can see thekids, the fireplaces or the TV.

Lorne Clark of J-Meg Renovations says changes inlifestyles have influenced design. “In the ’50s,everyone had a room. The fathers would have a cigarand brandy in the den or living room. The motherswould gather in the kitchen. The children would bedownstairs. Everyone wants to be together now. Thefamily dynamic has changed. Now, we’ve moved tomore of an open plan. People want that open affect.There’s not a definite front room and kitchenanymore. When the basements are redone, nowthey’re often better than the upstairs.”

The principles of Hastings Ilagan Design concur.“The three-bedroom bungalow can’t meet today’s

The renovation generationMortgage rates, new family dynamics and couples’ therapy

By Barb Deters with Peter Roccia

RR

Bob Schulz, The Renovation Corporation

Keith Burgess...on site.

Ellis Brothers Photography

EDMONTONIANS FEBRUARY 2006 5

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lifestyle,” says architect George Ilagan. ContractorPaul Hastings points out that, in the majority of postWWII homes, “children shared bedrooms… theentire family shared the bathroom. Now, everybedroom has a bathroom. The quality of your life isequated with the quality of your home.”

Ilagan believes there’s been “…a change inpriorities, a shift in what’s important since 9-11.There’s more of a focus on living space. All ofsociety is consumed by living space.”

Renovation contractor Keith Burgess says, “Wewant to be tied to a central core more—morecommunity, more culture, theatre, art.

“I really can’t see a direct connection to 9-11, notin our clients. My wife and I just got back from NewYork, and we saw it there, a desire to protect oldbuildings, but here we’re still too distant. InCalifornia, you see this race to spend more money.It’s a concern for the bottom-line value; they’re nottrying to find roots.

“Here in Alberta, it’s the first time we’re feelingour wealth. We’re doing more charity work andoutreach for the elderly and disabled. More peoplehave more money, and perhaps more wealth.”

CONSUMER PREFERENCESLocation, location, location. The vast majority ofrenovation projects naturally occur in older,established neighbourhoods with easy access todowntown amenities.

Burgess, whose niche market is in Glenora,Grovenor and Crestwood in the westend andStrahcona on the southside, knows his clientele.“Professionals are trading up now that the rates arelow. Most are not looking for equity, they’re lookingfor older trees, proximity to the downtown core, aview of the river valley, connections to the arts. Ican’t imagine living in a satellite community.”

Even new homes in older neighbourhoods aredesigned to fit into communities like Riverdale andCrestwood. Burgess figures that, “Three years ago,there was a doubling of infill homes per year, I’dsay. There used to be a handful, now there’s about30. When one of these infill homes goes up, itinfluences the other home owners around them torenovate and keep up.

“People are spending the money now, so many ofthese neighbourhoods are in a state of dramatic flux:existing homes, next to infill, next to renovatedhomes.”

Clark suggests that there’s a pent up demand forupgrading existing homes. “In the ’80s and ’90s,people were putting it off. Now it has to be done.Interest rates are helping. They can see the value init… Renovation increases the value, but it’sprimarily a lifestyle thing. If you put $100,000 into ahouse, people know they won’t get it out againtomorrow [if they sell right away]. We’re looking formore togetherness.

“We upgraded a home that was built in 1911. Theowners were in the Bahamas, but now they’vemoved back to Edmonton. They wanted to keep thecharacter of the house. We gutted the upstairs, madeit three decent-sized bedrooms, modernized thebathroom, widened the staircase and made it lesssteep.”

Clark says J-Meg usually renovates at least “onereally old house a year. If it’s something like clinkerbrick, we obviously can’t get that material these days,so we’ll do an addition with vinyl siding and make itappealing as possible. These are the projects that arethe most fun and interesting to do.”

“We’re working and living in different environments.People are putting down roots. They have hockey,

family, school. They don’t want to disrupt that througha move,” says Schulz.

“There are changes in the housing stock. Expect-ations have changed. The financing has changed.Overall, it’s a combination of economics, place, jobs,growth, and families maturing. It’s taken 12 years forthe economy to recover. In that time, there was next tono investment in houses. For a $300,000 home at athree percent down payment, that’s $15,000.”

These factors affect industry pricing and competition.Schulz’ Renovation Corporation doesn’t price morethan three weeks in advance. “Sometimes it’s hard toget four people to bid on a job. For a $200,000-job, Ibet that in all those interested in doing the job, youwon’t find a five-percent difference in price. It iscompetitive but, competition notwithstanding, we’re allusing materials the client chose. The labour costs arethe same.”

HIGH STRESS ZONE“Our work is one part therapy and two parts marriagecounseling. Renovation is a big challenge for thehomeowners,” says Hastings.

Burgess agrees, “I’ve seen what I call additionpsychosis. It’s not bad, but we are affecting theirsanctuary. Sometimes I think we should employ amarital counselor while we’re working to help pullthem through.

“In an extended family, there are issues that don’t waitfor a renovation to be complete. They no longer have asanctuary to come home to [during a renovation]. Peoplearen’t necessarily angry at you, but they are glad to seeyou gone. We’re usually there for long periods of time

and there’s isn’t a big hoorah at the end. He adds, “Good contractors interview the client as

much as they interview us. In a busy market, we canafford to. If we think they can’t survive, we’ll turnthem down.”

Schulz sums up the role of the renovator.“There are three stages to any renovation: one,

excitement and enthusiasm… two, `I’ll kill thoseSOBs’… and three, `Wow, look what we did.’ Our jobis to manage that middle part.” ✔

J-Meg’s Lorne Clark

Paul Hastings, George Ilagan, in New York with couturedesigner Michael Kaye, a former Edmontonian.

6 EDMONTONIANS FEBRUARY 2006

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hink for a moment what your dreamkitchen would look like. You have achance to put the best appliances,cabinets and island in the kitchen. Whatwould you do?

That was the question facing Dan Toews of KitchenCraft, after he accidentally turned on a burner that hada plastic container on it—the first floor of his homewas gutted by fire.

“It was a blessing in disguise.”The end result was an incredible, trendy kitchen that

incorporates not one but three different counter tops.“One is concrete that is ground down so you can see

the aggregates, another is traditional butcher block, andthe third is granite for my wife because she likes to bake.It all ties together very nicely.”

Dan says to forget the old style of kitchen layouts.Cabinets are being replaced by shelves that are open andguests can pick out their own glasses, plates and so on.

“It’s all veryinteractive. We’reseeing a lot ofdiversity inkitchens now,especially a lot ofstainless steel forback splashes andappliances.”

He also points outthat you get greatreturns when you sellyour home.

“People can feel whatyou’ve put into it, andyou can get a bigger bangfor your buck, especially ifthe kitchen is the focalpoint of your home.

Rick Hlady, the team leader of DIY Cabinet Warehouseechoes Dan’s thoughts.

“The kitchen is now the primary gathering place. I gointo some homes and the living room looks like it’s neverbeen used.”

Islands are huge right now—ones that put yourguests right in the middle of the action. So too aredecorative cabinets that are more ornamental andstaggered in height.

Rick says, “Kitchen designers today have to be wellversed on how it’s going to fit and be a part of thescheme.”

Energy efficiency is another key in kitchenrenovations for 2006. More and more people aresnapping up German-made ovens that take up lessspace, and are extremely energy efficient.

On the other hand, many people are renovating theirkitchens into professional work spaces utilizingprofessional gas ranges and ovens. It all boils down tojust how much you like to cook and entertain—andhow much you’re willing ot spend.

Chef Anna Olsen, host of Sugar and KitchenEquipped on FoodTV and noted cookbook author, sayspower is very important. People are seeking ranges thatcan put out high BTUs for faster cooking.

Some people are going full tilt. Chef Anna says someare starting to buy their equipment from restaurant

supply stores. Those who can afford it areafter quality equipment that will last alifetime.

“I have some friends who just installed apanini press, hooked it up to the electricalwiring and built it into the wall.”

Drawer dishwashers, she adds, where youhave separate racks for stemware, dishesand pots, with the ability to do a halfcycle, are extremely popular.

I heard about one couple whopurchased six warming ovens and placedthem in their bathrooms so they couldhave warm towels after a bath.

Can it get any better? ✔

Check out the Kitchen Craft and DIYCabinet Warehouse booths at the 2006Renovation Show atthe Agricom.

Contact John [email protected]

TT

MenuMagicwith Chef John Berry

Cooking with fireCooking with fire

Dan Toews in his homekitchen with Chef John.

7EDMONTONIANS FEBRUARY 2006

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LIVELYlifestylesIn defence of DIY

Mag Ruffman—licensed contractor, TV host and personality of A Repair to Rememberand Anything I Can Do, author of How Hard Can It Be?—will be appearing at theEdmonton Renovation Show on the first weekend in February. I posed the dreadedquestion to Mag: Is DIY really dead?.

“What??? I want names… Who are the people saying DIY is dead? Not only is it aliveand flourishing, it has also witnessed a climbing presence of women on the scene.” Magquickly rattles off impressive stats to prove it:• $4 billion are spent at hardware stores annually; • 38 percent of women prefer tools over lingerie as gifts;• amazon.com sold more power tools on Mother’s Day than Father’s Day last year;• Women make up 52 percent of purchases in hardware stores; and• The housing market is booming, with twice as many single women purchasing homes

than single men.“Female homeowners are educating themselves in DIY to avoid being ripped off

by contractors and opting to take on simple tasks themselves. They find it very self-gratifying to complete minor renovations while saving money. There are a couple of

areas that I would caution the layman/woman to stay away from—plumbing andelectrical. Plumbing isn’t difficult, it’s just plain gross: It stinks, it’s dirty, and itinvolves the use of open flames if you are soldering pipes. Electrical work can be ashocking experience if one does not know what he or she is doing. I still turnbreakers off when I am working with live wires.

“My husband and I are organically renovating our 150-year old home… situatedon 42 acres, amid flocks of wild yellow finches and 1,183 hand planted trees. I ampresently designing a line of ergonomically-friendly hand tools, and continue toappear weekly on Canada AM’s The Morning Fix.

“Does that sound like DIY is dead?”Since the interview, I am sleeping better. I threw caution to the wind and tiled the

steps leading to the guest room. With the left over tile, I faced the new fireplace inthe family room, and built the pony wall for a raised counter. Thanks Mag, I owe you one.

I had a sneak peak at some awesome products available at the Edmonton RenovationShow. Here are some you just Got to Get into Your Life.

wake up in the middle of the night in a cold sweat. The nightmare isalways the same. Earth Wind and Fire’s Got to Get You Into My Life isblaring from the radio as I whip over to the hardware store for some two-bys and drywall screws. I pass a billboard illustration of a graveyard with

a single tombstone inscribed with: DIY is DEAD.Could it be? Those joyful hours spent sating my creative juices are finished?

Saving money and cramming weekends with the joys of caulking, sawing anddrilling are over? What about TV… will home improvement networks be a thingof the past? I felt my passion slowly dwindling. In a panic, I decided to consult ado-it-yourselfer in the hopes of laying my fears to rest.

II

EARTHGranite Transformations has cleverly created acountertop that fits over your existing one, withthe look and feel of real granite. Granite, quartzand glass mosaics, imported from Italy, arecombined with polymers to produce a surface thatis heat, stain and scratch resistant. The quarter-inch thick slabs will flex on curved surfaces withup to a 30” radius. Resurfacing will save up to 30percent of the cost of conventional stone tops,while saving our landfills from demo debris.

A Win-win solution.

WINDIn an age of rising energy costs, efficient heatingalternatives are welcome. Convectair IntelligentHeaters offer gentle uniform heat with naturalconvection heating. The heaters draw cold air infrom the floor, warm it and re-distribute it througha grill. Built-in programmable thermostats translateinto lower energy bills and selected comfort. Whyheat the whole house, when you just want to warmthe bathroom in the morning? These models boastoptional heated towel bars. Mmmmm… toastytowels. Just like a posh hotel… only at home.Theheaters are available through Creative Electric.

…and FIREA fireplace is a fireplace. Right? Wrong. Thepeople at the Wood & Energy Store carry TheCrescent line of fireplaces that have beenspecifically designed with the kitchen in mind. Anarched front opening has an optional flip-downwarming shelf to keep plates or buns warm.Measuring only 19” deep, these attractive andpractical beauties can fit in small spaces—bookcases and pantries—at eye level. ✔

Contact [email protected], or visit herwebsite: absolutebodo.com

Catch Linda at the Edmonton Renovation Show in the absolute bodo booth #704 to see her latest projects and some of her favourites from Lively Lifestyles


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Company . . . . . . . . . . . . . . . . . . . . . .BoothA- 1 Marketing . . . . . . . . . . . . . . . . . . . .412AAAAlarms . . . . . . . . . . . . . . . . . . . . . . .6AAAA Boating (Wylie) . . . . . . . . . . . . . . .N10Absolute Bodo . . . . . . . . . . . . . . . . . . . . .704Absolute Hardwood Flooring . . . . . . . .9A-BAcclaimed Furnace Cleaning . . . . . . . . .342Ackard Contractors Active Concepts . . .323Advantage Orthotics . . . . . . . . . . . . . . . .B10Aerus Electrolux . . . . . . . . . . . . . . . . . . .334AFC Tub Liners . . . . . . . . . . . . . . . . . . . .8DAfter Eight Flooring . . . . . . . . . . . . . . . .533Alberta Beef Producers . . . . . . . .FoodExpo Alberta Cancer Foundation . . . . . . . . . . .B11Alberta Diabetes Foundation . . . . . . . . . .723Alberta Elk Commission . . . . . . .FoodExpo Alberta Golf Association . . . . . .1026 Hall CAlberta Hardwood . . . . . . . . . . . . . . . . . .221Alberta Wholesale Fireplaces . . . . . . . . .508All Weather Windows . . . . . . . . . . . . . . .523Amerispec Inspection Service . . . . . . . . .8AApollo Sun & Shade . . . . . . . . . . . . . . . .329Aquanotion . . . . . . . . . . . . . . . . . . . . . . . .1EAquarian Construction . . . . . . .Reno Gallery Arbor Memorial . . . . . . . . . . . . . . . . . . . .607Aromas Naturales . . . . . . . . . . . . . . . . . .551Atco Energy Sense . . . . . . . . . . . . . . . . .306Avenue Vacuum & Appliances . . . . . . . .633Award Contractors . . . . . . . . . .Reno GalleryAward Windows . . . . . . . . . . . . . . . . . . .610Basement Systems . . . . . . . . . . . . . . . . . .8BBath Fitter . . . . . . . . . . . . . . . . . . . . . . .C2-3Bathrooms Unlimited . . . . . . . . . . . . . . .309Batten Industries . . . . . . . . . . . . . .B13/14/15Beachcomber Hot Tubs . . . . . . . . . .429/532Bed & Bath International . . . . . . . . . . . . .347Berkshire International . . . . . . . . . . . . . . .7ABest Home . . . . . . . . . . . . . . . . . . . . . . . .646Bolt Security . . . . . . . . . . . . . . . . . . . . . .606Britcan Furnace & Cleaning . . . . . . . . . .326Build E-Z . . . . . . . . . . . . . . . . . . . . . . . . .209C.H.B.A – Edmonton Region .Reno GalleryCameleon Promotions . . . . . . . . . . . . . . .720Can-Hemp (Family Doctor) . . . . . . . . . .920Canadian Trade House . . . . . . . . .FoodExpo CanCell Industries . . . . . . . . . . . . . . . . .C7-8Carries Chocolates . . . . . . . . . . . .FoodExpoCindercrete Products . . . . . . . . . . . . . . . . .7CCitadel Improvements . . . . . . . . . . . . . . .603City of Edmonton (Waste Management) .B7Classic Window Fashions . . . . . . . . .336/338Clays Concrete Counter tops . . . . . . . . . .227College Canada Painting Co. . . . . . . . . . .550Comfortable Home Systems . . . . . . . . . . .5EComfree . . . . . . . . . . . . . . . . . . . . . . . . . . .B9Concordia University . . . . . . . . . . . . . . . .657Condon Barr Food Equipment . . .FoodExpo Convectair . . . . . . . . . . . . . . . . . . . . . . . .547Costco . . . . . . . . . . . . . . . . . . . . . .FoodExpo Culligan Water . . . . . . . . . . . . . . . . . . . . .516Cutco Cutlery . . . . . . . . . . . . . . . . . . . . . .602DDG Prospect . . . . . . . . . . . . . . . . . . . . . .9CD.I.Y. Cabinet Warehouse . . . . . . . . . . . . .4ADaksha’s Gourmet Spices . . . . . . .FoodExpoDenco’s New Frontier . . . . . . . . . . . . . . .512Der Coffee & Tea . . . . . . . . . . . . .FoodExpo Destination Conservation . . . . . . . . . . . .C13Dip Sea Chicks . . . . . . . . . . . . . . .FoodExpo Direct Buy . . . . . . . . . . . . . . . . . . . . .343/45Direct Energy Essential Services . . . . . . .627Earthworm Landscape Design . . . . . . . .623Easy Rock Products/ Cityscape . . . . . . .546Eco Water Edmonton . . . . . . . . . . . . . . . .302Ecowater North . . . . . . . . . . . . . . . . . . . .419Edgewood Matting . . . . . . . . . . . . . . . . .417Edmonton Bath Products . . . . . . . . . . . . .212Edmonton Spinal Awareness Society . . .702Edmonton Wireless . . . . . . . . . . . . . . . . . .7DEdward Michell Fine Art . . . . . . . . . . . . .647Elkhorn Ranch & Spa . . . . . . . . . . . . . . . .5BEuro Innovations . . . . . . . . . . . . . . .333/432Fifth Avenue Collection . . . . . . . . . . . . . .N7Fireplace Gallery . . . . . . . . . . . . . . . . . . .928Freedom 55 Financial . . . . . . . . . . . . . . .827Fruitelicious . . . . . . . . . . . . . . . . . .FoodExpo

Full House Renovations . . . . . .Reno Gallery G & M Meats . . . . . . . . . . . . . . . . . . . . .928G.A. Effective . . . . . . . . . . . . . . . . . . . . .213Gails Gallery & Supply . . . . . . . . . . . . . .446Gazata Ltd . . . . . . . . . . . . . . . . . . .FoodExpoGEM Inc. . . . . . . . . . . . . . . . . . . . . .608/509GR Distributors . . . . . . . . . . . . . . . . . . . . .C4Granite Direct Inc. . . . . . . . . . . . . . . . . . .408Granite Transformations . . . . . . . . . . . . . .4CGranite Worx . . . . . . . . . . . . . . . . . . . . . .447Great Canadian Giveaways . . . . . . . . . . .717Gutter Helmet West . . . . . . . . . . . . . . . . .927Handyman Connection . . . . . . . . . . . . . .526Hardwood Etc . . . . . . . . . . . . . . . . . . . . .746Home Equity Investments Rewards . . . .750Home Theatre Solutions . . . . . . . .Sales RingHomestyle Beverages . . . . . . . . . .FoodExpo Homeworks Service . . . . . . . . . . . . . . .6C/DHouse of Ladders . . . . . . . . . . . . . . . . . . .N8Hoyme Phantom Screens . . . . . . . . . . . .404Ideal Sundecks . . . . . . . . . . . . . . . . . . . . .635Improvisions Inc. . . . . . . . . . . . . . . . . . . .413Infinity Geothermal . . . . . . . . . . . . . . . . .420Innovations Plus . . . . . . . . . . . .Reno Gallery Instadeck . . . . . . . . . . . . . . . . . . . . . . . . .223Integrated Financial . . . . . . . . . . . . . . . . .844Interlock Industries . . . . . . . . . . . . . . . . . .4E

Investors Group . . . . . . . . . . . . . . . . . . . .312James Hardie Building Products . . . . . . .601Jaywest Country Homes . . . . . . . . . . . . .439J-Meg Homes & Renos . . . . . .Reno Gallery K & F Rollshutters . . . . . . . . . . . . . . . . . .426Kastelen Sausage . . . . . . . . . . . . .FoodExpoKennedy’s Flooring . . . . . . . . . . . . . . . . .450Kitchen Craft Cabinets . . . . . . . . . . . . . .620Kitchen Craft Int. . . . . . . . . . . . . . . . . . . .820Kozy Shack . . . . . . . . . . . . . . . . . .FoodExpo Ladders Unlimited Canada . . . . . . . . . . .621Leading Chiropractic & Wellness . . . . .1030Lifestyle Bath & Shower (Div. Hook) . .616Lindal Cedar Homes . . . . . . . . . . . . . . . .427Lizwoerks Sales . . . . . . . . . . . . . . . . . . . .416Mainstream Screens . . . . . . . . . . . . . . . . .4BMcKinley Heating . . . . . . . . . . . . . . . . . .830Miles Industries . . . . . . . . . . . . . . . . . . . .733Mr. Exterior . . . . . . . . . . . . . . . . . . . . . . . .C8Murango Gallery . . . . . . . . . . . . . . .349-351Nelson Lumber Co. . . . . . . . . . . . . . . . . .833Niagra Acrylic Industries . . . . . . . . .609/708Northern Alberta Orthotics . . . . . . . . . . .316Ocean Sales . . . . . . . . . . . .c16,b1,b6,728,20Ocean Sales ent . . . . . . . . . . . . . . . . . . . .105Oliver Chiropractic . . . . . . . . . . . . . . . . .538Ontra Sales . . . . . . . . . . . . . . . . . . . . . . .N11Oreck Vacuums . . . . . . . . . . . . . . . . . . . .929Orange TKO Industries . . . . . . . . . . . . . .706Orthotic Works (AOA) . . . . . . . . . . . . . .N6aOwens Corning . . . . . . . . . . . . . . . . . . . .335P.C. Renovations . . . . . . . . . . .Reno Gallery P.F. Manufacturing . . . . . . . . . . . . . . . . . .653

Paradigm Marketing . . . . . . . . . . . . . . . .823Par-T-Perfect . . . . . . . . . . . . . . . . . . . .Hall CPella Windows & Doors . . . . . . . . . .1A, 2BPerformance Living . . . . . . . . . . . . . . . . . .2EPizazz International Products . . . . . . . . . . . . . . .339,440/828/727Polar Spas . . . . . . . . . . . . . . . . . . . . .751/856Popcorn Plus . . . . . . . . . . . . . . . . . . .204/304Prairie Concession . . . . . . . . . . . . . . . . . . .C1Precise Pet Foods . . . . . . . . . . . . . . . . . . .C5Primerica Financial . . . . . . . . . . . . . . . . .611Provincial Heating & Air Conditioning . .442QualiGlass Windows & Doors . . . . . . . .305Rada Classic Cutlery . . . . . . . . . . . . . . . . .B8Rainbow Systems . . . . . . . . . . . . . . . . . . .8CRay O Max Windows . . . . . . . . . . . .247-350Redfern Ent. . . . . . . . . . . . .B3-5,317,n12-13Refrigerative Supply . . . . . . . . . . . . . . . .243Regal Ridge . . . . . . . . . . . . . . . . . . . . . . .245Renovations of Excellence . . . . . . . . . . .C12Rob’s Albertan . . . . . . . . . . . . . . . . . . . . .308Roll Out Kitchen Drawers . . . . . . . . . . . .115

Royal LePage East Kootenay . . . . . . . . .303Royal Treats . . . . . . . . . . . . . . . . . . . . . . .5ARPM Solutions . . . . . . . . . . . . . . . . . . . . .6BSaskatoon Berry Products . . . . . . .FoodExpoSave A Deck . . . . . . . . . . . . . . . . . . . . . . .C6Sears Home Central . . . . . . . . . . . . . . .HallCSergio Lub . . . . . . . . . . . . . . . . . . . . . . . .650SFA Saniflo Inc . . . . . . . . . . . . . . . . . . . .747Steve Oakie Concessions . . . . . . . . . . . . .507Sunray Hot Tubs & Spas . . . . . . . . . . . . .120Sunrise Windows & Door Depot . . .443/445Sutton Group . . . . . . . . . . . . . . . . . . . . . .313The Art of Hardware . . . . . . . . . . . . . . . .421The Energy Doctor . . . . . . . . . . . . . . . . .235The Nutty Diva . . . . . . . . . . . . . . .FoodExpo The Only Mortgage Company . . . . . . . .729The Renovation Corp . . . . . . . .Reno Gallery The Trophy Cup . . . . . . . . . . . . . . . . . . . .409The Tub Guy . . . . . . . . . . . . . . . . . . . . . . .7BThe Vacuum Source . . . . . . . . . . . . .542/544The Water Clinic . . . . . . . . . . . . . . . . . . .217Thirst for Paradise . . . . . . . . . . . . .FoodExpo

Booth #704


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Titanium Exclusive Cookware . . . . . . . .836Treasure Chests Distributors . . . . . . .C10/11Trioka Foods . . . . . . . . . . . . . . . . .FoodExpoTupperware . . . . . . . . . . . . . . . . . . . . . . .B12Two Car Garage Building . . . . . . . . . . . . .C9Ukranian Foods . . . . . . . . . . . . . . .FoodExpo Ultimate Exterior Renovation . . . . . .229/332Vacu Flo . . . . . . . . . . . . . . . . . . . . . . . . . .B2Vacuums R Us . . . . . . . . . . . . . . . . . . . . .536

Verdatech Inc. . . . . . . . . . . . . . . . . . . . . .517Vipco Industries . . . . . . . . . . . . . . . . . . . .444Vita Mix Corporation . . . . . . . . . . . .617/716Viva Renovations . . . . . . . . . . . . . . . . . . .752Water Canada . . . . . . . . . . . . . . . . . . . . . .9DWater Magic . . . . . . . . . . . . . . . . . . . . . .712Wood & Energy Store . . . . . . . . . . .107/208Wooden Reflection . . . . . . . . . . . . . . . . .451World Stone Inc. . . . . . . . . . . . . . . . . . . .423


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t’s not a magic show, but timing is essential,”says Rick Young of Young Marketing ServicesInc., producers of consumer and industry tradeshows.

He is talking about one of the most fundamental aspectsof his own trade: bringing buyers and sellers together whenit will be most beneficial for everybody.

It appears now is the time and here is the place. We’retalking about the 2006 renovation show.

Last year, Albertans spent a whopping $3.8 billion onhome renovations compared to $4.2 billion on new builds.Obviously, the industry is alive and well and worth givingthe show business treatment.

“It’s a really fun time to be doing this,” Young reflects.He’s been involved in developing, selling and preparing theEdmonton Home Show for the Edmonton Region HomeBuilders Association for 25 years. The renovation show hasbeen going for 13 years. During this time, he has seen somebooms and busts in the local economy.

The billions Albertans dropped last year includeeverything from changing a paint colour to fixing a door toa full-blown renovation. Everything a person would need toknow about any aspect of renovation will be on showFebruary 3 through 5 when approximately 250 exhibitorsand a handful of do-it-yourself celebrities will fill theNorthlands Agricom with renovation buzz.

“It’s a contractor style show that consumers get access to.That makes it a unique benefit,” says Young. “What we’reinterested in is the people who didn’t come last year, whonow have a need and can find what they need.”

Some 18,000 people are expected through the show overthe three days and Young knows from experience that theyare in for some renovation education.

“It’s a four-hour education program. You should beequipped and ready to enroll yourself in it, understand it,ask the questions and take away from it information thatmakes you more informed about your decision.”

That’s what it comes down to with the show:information. The show gives you enough snapshots of therenovation of your dreams, and a better idea of affordabilityand do-ability.

“It’s a measure twice, cut once philosophy. Get the right

information, make the right choice,” he says.People who attend the renovation show are looking for

new ideas and new products… maybe something theyhaven’t seen before that will help them fulfill theirrenovation vision. To Young, it is no surprise that 65 percent of his target market is female.

“That is because women are more proactive about thecondition of their environment. They spend more time init. Even if they are working, they spend more time in it.And they have a vision of what they want.”

So guys, be warned, even though they may be looking atpaint samples: “In the back of their minds, they’ve got

something much bigger in mind and guys should never befooled by that,” muses Young.

Ideas for renovations, large and small, are probablycoming from one of the many home renovation shows onTV that have surged in popularity in recent years.

Young likens the popularity of his home shows to thistrend in television programming.

“It’s absolutely huge. It’s probably the number onecatalyst for these kinds of things that allow people to think‘I want that, I like that’. Other than that, their resourceswere to go to a store or go to a magazine. The number ofhome improvement shows and interior design shows thatare on is staggering. The only limit is your imagination andyour revenue and your ability to pay for it. But real estatehas proven to be a good investment.”

Bringing in TV personalities gives the renovation showsome extra glitz and glamour and gets people in the door.They are a trigger point for interest, but they are also thereto give people something to take away with them.

“They are the entertainment factor; we’re in showbusiness. They also provide hard information… it can’t befrivolous or fluffy… it has to be serious. There has to be atransfer of information that people are looking for,” stressesYoung.

“There are people who are crafty and want to do thosethings. They have a tool belt and a garage or basement thatthey work in. They can do these things, they like to dothese things and they are good at them.” In addition to TVpersonalities John Sillaots and Mag Ruffman, who will begiving stage presentations throughout the weekend, variousexhibitors inspire creativity. As well, Edmontonians’ LindaBodo will be showcasing DIY projects from the best of herAbsolute Bodo columns in the Lively Lifestyles section ofthis magazine.

However, some people may feel a certain project is outof their scope or maybe they just don’t have the time toexecute the project. Installing tiles or hardwood floors oreven framing a basement are examples of the types ofprojects people may want to tackle themselves, but thenfind it is a little beyond their capabilities.

Young estimates that there is enough disposable incomein this market that people can afford to pay to get jobsdone. And they are.

“I mean, this is Las Vegas for this kind of thing, peoplehave the money.”

That mindset is what has made the renovation showsuccessful.

“Edmontonians are shoppers. They get competitivequotes, they’re pretty informed and they’re diligent. So,when they get involved in renovations of any consequence,I think they get quotes from various companies. The showis somewhat of a consumer watchdog because we wantpeople to understand it’s a buyer beware.”

With a show floor full of sales people trying to sell youstuff, it is up to the consumer to decide what product theyneed and want. Young stresses that diligence on the part ofthe home owner is required for the successful completionof any renovation.

“This is a great time because it’s a very buoyanteconomy, and renovation is such a huge business.”

Currently, with his staff of three, Young is comfortableproducing nine shows a year in Alberta and BC. “It’s abouthow much you can do and do well,” he says.

When he came to Edmonton from Toronto in 1979, hewas encouraged by the entrepreneurial spirit of the city.Edmonton had more entrepreneurs per capita than anyother city in Canada. He himself is a prime example of thatspirit.

Although he recalls being “penniless and buck naked” inAlberta, he has always been happy about moving here.

Young didn’t start the home show, but when he came toEdmonton he joined the ERHBA and became involved inthe committee that developed the show. Within two years,he was managing the show.

He started with a management contract for the EdmontonHome Show in 1983, the association’s fall show. He tookover the Calgary HomeExpo in ’88.

These shows have been his mainstay—his flagships.Most of the other seven shows per year—with theexception of the Big Valley Jamboree—are spin offsfrom those. Taking advantage of our buoyant economy,Young is launching the Log & Cottage Show at theMayfield Trade Centre in April. With more disposableincome, people are looking at country and lakesideretreats—a place to get away from the pressures of thecity. He expects to attract exhibitors and attendees fromthe three western provinces.

Although a career in the trade show business wasn’tsomething he was planning on, he has found successand happiness in producing them.

“I found it fascinating and I still do. That’s the magicof finding something you like to do and getting paidfor it.” ✔

For more information on shows produced by Rick Young goto www.showswork.com; and on the Edmonton RegionHome Builders Association go to www.erhba.com

The ShowmanEdmonton “...is Las vegas for this kind of thing”

By Murray Donaldson

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The team: Carol Harker; show manager; Rick Young, andLaurina Milne,production manager

The team: Carol Harker; show manager; Rick Young, andLaurina Milne,production manager


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UNDERSTANDING HEAVY OILAGD, CSS, PCSD, THAI,VAPEX… as a resident of oil-rich andtechnology-savvy Alberta, these areacronyms you may have heard. But what’s

the difference between these technologies used toextract deep-lying heavy oil? In what situation iseach used, and what sort of initial capitalinvestment is required for each?

These are the questions my company has heardfrom representatives of Mexico’s national oilcompany PEMEX about its own dormant wells, so Iunderstand first-hand how important AlbertaEconomic Development’s recently announcedHeavy Oil Alberta Project (HOAP) will be. Manycountries, other than Canada, have heavy depositsuntapped only because of a lack of technology.With the rising price of oil, visiting dignitaries areclamouring for more information on how to extractthis oil, and on the companies that make andoperate the equipment necessary to the process.

STEP ONEThe strategy of the HOAP initiative introduced atthe December breakfast meeting of the Leduc-Nisku Economic Development Authority is two-pronged: on the one hand, to collaborate onstrategic planning and policy development whileputting together information to present to the worldon heavy oil. On the other, to promote investmentand increase Alberta’s value-added products in thissector and the export of these value added goods.

According to Tim Hazlett, trade director, andShannon Stubbs, trade development officer, whoare spearheading AED’s initiative, they are still inthe phase of seeking information on thetechnologies, services and products from thecompanies involved. Then they’ll put togethermarketing materials and databases and usethem to begin regional outreachprograms.

WHY START NOW?Why haven’t the companies in Albertainvolved in heavy oil already begunthis sort of international outreachthemselves? When Hazlett himselfasked this question he receivedanswers ranging from “Tim, have younot seen we’re busy here?” to a lack offamiliarity with internationalmarkets. But the companiesalso indicated they wanted toget over these initial hurdlesand start more internationalexpansion in the next three tofive years—so “we should betaking a peek now” to get ready.

Since conventional oil will no longermeet global demand in the next fewyears, Hazlett argues that the time tobegin is now. He stresses that in 2004the price of heavy oil production at $40(US) per barrel came to match the price ofoil, and that now production costs havedropped as low as $12 per barrel on someprojects, slightly higher on others. In short, thetechnology is now cost effective.

In the short term, plans for regional outreachinclude bringing the HOAP information toHouston’s May 2006 Offshore TechnologyConference… to Calgary’s June Global PetroleumShow 2006… to Venezuela’s June Latin AmericanPetroleum Show XVII… and to Beijing’s 1stWorld Heavy Oil Conference & Exhibition, ofwhich AED is co-sponsor.

DIGGING UP DIRT ON 60 MINUTESDid you happen to catch the 60 Minutes story with BobSimon on Alberta’s oil sands? “The oilmen up therearen’t digging holes in the sand and hoping for aspout,” said the correspondent. “They’re digging updirt—dirt that is saturatedwith oil. They’re called oilsands, and if you’ve neverheard of them then you’re infor a big surprise because thereserves are so vast in theprovince of Alberta that theywill help solve America’senergy needs for the nextcentury.”

“You’d be amazed at howlittle people (in America)know about the oil sands,”said 60 Minutes producerDraggan Mihailovich on the telephone from New

York. Many viewers wondered when the oildevelopment was targeted to start production…yes,we’re talking about the same Fort McMurray minesthat have been operating 24 hours a days, 365 days ayear for almost four decades.

Mihailovich became intrigued with the subject afterreading Facing the End of Oil published in the June2004 issue of National Geographic Magazine. Theprice of oil post-Hurricane Katrina shot to $70 and hereceived the nod to send in a six-person crew to FortMcMurray for the television assignment. “Nothing canprepare you for seeing those 797s,” he said of theworld’s biggest dump trucks.

“The challenges we faced came from trying toconvince people that they could trust us,” saidMihailovich. “And it’s quite amazing how busy yourPremier’s schedule was for three months straight,”observed the newsman who never did interview RalphKlein for the show aired the day before Canada’snational election. “You can probably expect to receive alot of resumes for work in Alberta.”

And according to Helen Daymond of theRegional Municipality of Wood Buffalo TourismAssociation, he’s right. On the first business dayafter the 60 Minutes story aired, her office wasswamped with 50 phone calls and 135 e-mails fromall over the United States. Most of these wereAmericans looking for jobs, impressed with FortMcMurray salaries, or looking to invest. Daymondsuspects they called her office as a starting pointbecause of how well-seated it is on Internet searchengines. The Wood Buffalo Municipality website,which normally averages 4,000 hits per month,received 3,067 hits in just 24 hours after the show.

Amazing what effects a 15-minute broadcastthrougout the States could have to possibly helpalleviate some of the labour shortage stress. ButDaymond says she was a little disappointed withthe 60 Minutes segment: “They showcased many ofthe economic advantages of Fort McMurray, butthey didn’t highlight what a nice community this isto live in as well. We want people to come to workhere, but also to bring their families, to stay here.”

GOING DUTCHThis emphasis on Alberta as an emerging worldenergy powerhouse and the need for us to refocusour strategic planning is also a main concern ofAllan Bleiken, Honorary Consul for theNetherlands. As expressed in his feature article inEdmontonians’ January edition, Bleiken argues thatAlberta will need to strengthen its international tiesas its importance increases due to the provincehaving the world’s second-largest supply of oil andthe only significant future source located in a“secure” country.

In addition, he says that “Alberta has a shortfallof infrastructure systems and services that iscausing problems in the oil sands, and the problemwill only increase with future development.” Hesees the Netherlands as offering some of thesolutions.

With Alberta aboutto take a lead role inworld energyproduction, we needto focus on the bigpicture. We don’twant to just sell thebitumen. Instead,Bleiken’s vision istho produce it,upgrade it, andconvert it intodownstream value-added products righthere in Alberta—

products we would then distribute all over theworld. For every dollar’s worth of bitumen, wecould export instead $1,000 worth of value-addedend products. This way Alberta reaps all thebenefits of our natural resources right here withadded industry, jobs and taxes, instead of sendingthe raw products elsewhere for another region tobenefit.

But to make this transition requires a lightning-speed quantum leap in transportation anddistribution infrastructure.

“The Netherlands is the transportation anddistribution centre for Europe,” Bleiken explains.“It is Europe’s link to Asia and the Middle East.Over 50 percent of all international productsshipped to and from the EU is shipped through thissmall country.” Until a few years ago, Rotterdamwas also the biggest port in the world (nowovershadowed only by a couple of Asian ports).

Bleiken is currently completing an economic-based study on behalf of the Dutch government onthe opportunities for business between the tworegions, with the goal of fitting Dutch businessesinto Alberta’s growth strategy. Although not Dutch

himself, this former head of Edmonton EconomicDevelopment and VP at the University of

Alberta, accepted theposition of honoraryconsul because of hisconviction that

Holland offers one of thebest solutions for Alberta’s

future development.

GREEN WINE, PORT AND MUSCATEL

If you are a wine connoisseur, you are nodoubt familiar with the port wines exclusiveto Portugal. One national favourite is thecountry’s distinctive Vinho Verde or GreenWine. Produced only in certain regions ofPortugal, this light, fresh wine is known as“green” because the grapes are picked earlyand it is drunk young. Although it comes

also in red, the colour of the white wine canvary from light yellow to greenish.

Portuguese Honorary Consul AurelioMarcelino do Carmo Fernandes hosted a wine

tasting for winemaker, Esporao, last year atEdmonton’s Spago Restaurant, and representativesfrom Caves Dom Teodosio wine producers camehere for a fundraising dinner for NAIT’s culinaryteam. An increased number of visits from vintnersis expected this year, with the consulate hosting awine tasting for the premier Portuguese company,J.M. Fonseca, at the Shaw Conference Centre inMarch. J.M. Fonseca will present port wine andMuscatel (another variety for which Portugal isfamous), among other varieties. One of the othervisitors scheduled for 2006 is a company calledAvelade specializing in Green Wine… precise dateto be confirmed.

Cork is also a popular export, not only for bottlestoppers, but also for such products as flooring, tilesand insulation. Portugal is the leading world producerof cork, having recently developed a special lasertechnology to assure there are no impurities within thecork that could cause wine spoilage.

In the past five years, Alberta has received anannual average of $24 million (Cdn) in importsfrom Portugal and exported an average of $2.5million in agricultural products, building materialsand telecommunications equipment. ✔

Jessica Wegmann-Sanchez, Ph.D.,is Director of CorporateCommunications for BIDMEXICOInternational Inc., an Edmonton-based company specializing inforeign business development inMexico. E-mail:[email protected]

SS

GREA

TER EDMONTON

INTERNATIONAL BUSINE

SS

By Dr. Jessica Wegmann-San

chez

Bob Simon

Allan Bleiken


Proof_2_____PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

own-rounds” have become a criticalchallenge for angel investors. Theseare the declining valuations that oftenaccompany the entry of new

investors into subsequent financing rounds. In some cases,down-rounds are substantial enough to severely diminish oreliminate entirely the equity stake held by angels and otherearly investors.

Angels are often quick to criticize venture capitalinvestors (VCs) for down-rounds. However, angels who arecareful about keeping their eye on the ball are much lesslikely to suffer heavily in down-rounds. VCs and angelsmay exhibit differences in approach and may be driven bydifferent prerequisites. Nonetheless, the two have much incommon. With better attention to detail and a betterunderstanding of the VC process, angels can make early-stage investing a more congenial and rewarding experience.

How does the prudent angel avoid getting burned indown-rounds? The primary rule of an angel investment—aswith any investment—is to plan for eventual exit. Angelinvestors need to consider their exit strategy from theoutset, and continue to do so through the entire investmentprocess to payout. Only the naïve will expect later-stageinvestors to look after their interests.

The prudent angel knows and understands hiscompetitors and his allies.

The earliest investors frequently include the company’sfounders, the management team, friends and family, andangel investors. Some venture capitalists may enter at thisearly stage, though this is unusual. It is often a mixed crowdthat supports an early-stage venture, but what theseinvestors share is a powerful interest in growing thecompany. These people are investing in the future, based onwhat they know about the talents of the management teamand its ideas and products.

In contrast, later investors generally have a better sense ofthe business’ prospects, and are investing on the basis ofvisible results rather than personal knowledge, instinct or

experience. These later investors, who are almostexclusively venture capitalists, are interested in makingdeals that will bring a good return within a specific timeframe.

While some VCs look at the bigger picture and arecomfortable with long-term investments, many prefer toearn a healthy return with a quick turnaround. Liquidity is akey consideration, as venture capital funds must generate asteady return for their investors.

This need for relatively quick returns on investment oftenpush VCs to sell an equity position sooner rather than later.In doing so, they may leave early investors and managerswith nothing but bitter experience. Naturally, this is a keysource of tension between angels and VCs.

However, since this is a well-known element of early-stage investing, it is sensible to plan for the eventual entryof secondary investors. The prudent angel will learn asmuch as possible about the role and motivations of VCs,and will also attend closely to the start-up’s stage of growthand need for new capital injections.

Entrepreneurs are enthusiasts by nature and willoccasionally woo investors with grandiose predictions ofhow much revenue they can generate over a short period oftime. It has not been unheard of for start-ups to boastexpected revenues of $5 million or $10 million or more.And yet, a simple review of available statistics quicklyreveals how inflated such projections can be. A recentsurvey ranking the top 100 independent software companiesin Canada noted the following:• Only 63 of the 100 had revenues of over $10 million

a year;• The companies had, on average, been in business for

15 years; and• The 100th ranked company on the list had revenues

of only $2.8 million.These figures illustrate how risky it is to place one’s trust

in an entrepreneur’s earliest projections. As early-stageinvestors, angels often get swept up in management’s

enthusiasm. Instead, they need to put their financing on amore cautious footing and ask themselves: “If these sunnyprojections don’t materialize, how am I going to protectmyself when the company goes back to the market formore money?”

The prudent angel will ask for best and worst-caseprojections at the outset and assiduously track resultsagainst them. Angels need to know when the company’scourse deviates from expectations and, when it does, to beprepared to take the necessary steps. These may include afurther personal investment, joining the board, helping withmarketing, finding a purchaser for the investment, writing-off the investment, finding additional angel investors, orproviding stronger incentives for management to deliver.

In truth, new businesses rarely begin generating revenuemomentum—or VC interest—until the third or fourth yearof operation. This may be too long for many angel investorsto wait, as the risk is simply too high. Consequently, there isoften a gap between the time when angel investors shouldor must get out and venture capitalists are ready to come in.The result can be a stalemate within the requisite timeframe—companies because they don’t like the terms ofinvestment… angels because they don’t want to risk moremoney.

Ideally, the prudent angel identifies the need for moremoney early on, and works with the investee to pinpointand attract a venture player whose terms are mutuallyagreeable. Unfortunately, the reality in today’s environmentis often rather different and angel investors must beprepared for it. ✔

Dan Mothersill is chairman and CEO of theCiris Group of Companies. The Ciris Group isan integrated full-service communicationsagency—a one-stop shop whose clients rangefrom emerging enterprises to Fortune 500corporations. [email protected]

Pointers for the prudent angelBy Daniel Mothersill

BUSINESSwithout borders

“D“D

here is a story that has floated around WallStreet for years about an immigrant whoarrived in New York from the Old Countrywith a rather large amount of cash to invest. He

phoned a brokerage firm and asked to speak to aninvestment advisor. When the broker found out howwealthy the man was, he immediately dispatched thecorporate limo to pick him up. After meeting at a fancyrestaurant, the chauffeur took them on a tour of the city. Asthey went by the harbour, the finance guy thought he wouldwow his new client by showing him some of the yachtsowned by partners of the firm. After an hour of walkingaround looking at dozens of floating palaces, the newbiebecame very quiet. The broker interpreting this as awe,looked at him and said, “Pretty amazing, huh?” At this, theman shook his head and replied, “Not really. What wouldimpress me more is a harbour full of boats owned by yourclients. Then I’d know that you were making money forthem and not just yourselves.”

On this issue, investors have come full circle. Five yearsago, they turned a blind eye to senior executives pillagingcorporate treasuries with huge compensation packages that,in many cases, were neither earned nor deserved. As long asstock prices were going up, people paid no attention to thecore drivers of shareholder wealth; rising earnings,dividends and asset value.

Those days are gone. Most major global markets are stilltrading below their 1999 peaks. Many mutual funds haveunit prices below where they were in 1998. Investors haveseen everyone else get rich but them, and are starting todemand that public companies create wealth for the trueowners of the business and not just management.

When grading companies on their ability to create wealthfor shareholders, what should you be looking for? I believethat companies that form the core part of any investor’sholdings should have As on their corporate report cards inthe following areas:

INCREASING PAYOUTSThe most linear way for companies to reward shareholdersis to increase the dividend they pay out to them. Generally,companies will only increase dividends if they feel that theirlonger-term earnings outlook can sustain the higher payout.The last thing management wants to do is increase thedividend and then, at a future date, have to turn around andcut it again. Markets punish companies that do thisextremely harshly. It is not uncommon to see stockvaluations chopped in half when a dividend is reduced.

Over the past 100 years, greater than 60 percent of thetotal return of the stock market has come from dividends,not capital gains, as most people would guess. Companiesthat have a history of regularly cranking out higherdividends dominate the list of shares that achieve thehighest long-term capital gains. A company that canfrequently increase its dividend is normally increasing itsprofits at the same rate or higher. A rising dividend is one ofthe best tools a stock picker can use to find good qualitygrowth companies.

DISTRIBUTING PROFITS TO SHAREHOLDERSIncome trusts are best of breed in this category. As a result,they have become a $200-billion asset class in Canadaduring the past decade. Investors love the structure becausea huge portion of the profits ends up being distributed to theinvestor instead of remaining trapped in the company’scorporate treasury where they may or may not be put toefficient use.

Normally, a corporation pays tax on the dividends to bepaid out, and then the investor pays tax on them again afterreceiving them. This effectively taxes the same moneytwice. In a trust structure, the business pays no tax. Theinvestor, upon receiving the cash payout, is responsible forthe tax. This removes a complete layer of taxation andleaves a larger chunk of profits that can be paid out…further enriching the shareholders who are the true ownersof the business.

Recently, many trusts have come to market with cashdistributions that are unsustainably high. This is either dueto the cyclical nature of the company’s underlying business,or the fact that they are paying out more than they aremaking to attract unsuspecting investors to their high yields.These are red flag securities. Investors need to be verycareful that they aren’t suckered into buying these units.When their distributions inevitably get cut, the share pricewill get crushed.

SHARE BUY BACKSOne of the preferred ways of returning money to share-holders is through stock buy-backs. When a companypurchases its own shares on the open market and thencancels them, simple math works in favour of the remainingshareholders. Fewer shares mean more earnings, dividendsand assets per share. Since these three metrics are the maindeterminants of share price, the further north they go, thehigher the stock is likely to trade.

Stock buy-backs are also very tax efficient. Fewer shares

and higher prices for those shares inevitably lead to biggercapital gains when the shares are eventually sold. InAlberta, those with the highest marginal tax rates pay 19percent on capital gains vs. 24 percent on dividends, and 39percent on interest or earned income. Currently, capitalgains are the low-tax “king of the hill” and the best way toreceive investment income. This could change if theLiberal’s tax initiatives survive the new government. If theydo, and the province goes along with it, dividends couldbecome the type of income that attracts the lowest tax.

Tax savings also comes from deferral. This strategyinvolves postponing the taking of profits until a future date.Since no taxes are paid until shares are sold, an investor canoften hold a conservative, steady-growth company fordecades without incurring any tax. Plus, the longer theshares are held, the more time an investor has to compoundpre-tax profits and thus pre-tax dollars.

When evaluating companies that announce a share buy-back, it is important to make sure that management walksthe walk. Companies often proclaim their intention to buyback stock and then never follow through. They get all theaccolades of being shareholder friendly with none of thecost. Very seldom does the media every back-check tomake sure that these corporations followed through on theirbuy-back program. When analyzing the impact of a stockrepurchase program, investors also need to make sure thatthe desired effect isn’t being negated by the issuance ofshares, or options on these shares, to management.

INVESTING IN INTERNAL GROWTHIf a company doesn’t use its profits to buy back shares orpay cash distributions to shareholders, the only other way itcan increase shareholder wealth is to plow money back intogrowing its own business or using its excess cash to acquireother businesses. The key is that these internal investmentsneed to increase earnings per share. If they aren’t able touse their profits to grow the company, say goodbye to thestock. Reinvest the proceeds only in companies that have ademonstrable track record of successfully increasingshareholder wealth. ✔

Ron Hiebert, a director at ScotiaMcLeod,teaches investment classes at GrantMacEwan College. The author of WealthBuilding can be heard weekdays at 7:34am, on CFCW radio (790 AM). Contacthim at 780.497.3215 [email protected]

MAKINGmoney

TTBy Ron Hiebert

Creating shareholder wealth


Proof_3____PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

There’s nothing like looking upfrom the computer keyboard and seeing twofaces pressed against the glass panel in youroffice door. In this instance, those two facesbelonged to Jason Darrah and JeremyFritsche. Jason was touring Jeremy around

the RTF building and they stopped to sayhello. Jason is TEC Edmonton’scommunications manager and Jeremy doessimilar duties for Alberta Ingenuity.

As we chatted, I very quickly discernedJeremy was on a mission. AlbertaIngenuity is keen to greatly expand itsindustrial associateship program. And whatbetter place to start evangelizing this factthan the Research Transition Facility atthe University of Alberta.

The industrial associateship initiative is agreat little program. It teams up recentMaster’s and PhD graduates with small tomedium-sized companies to conductresearch.

Says Jeremy, “This program is helpful tocompanies that want to kickstart their R&Dprograms. Perhaps they’re aware of some-one at the university whose research canbenefit their company. The associateshipenables them to bring a qualified researcheron board, and it supports the salary of theresearcher for up to two years.”

At the present time, Alberta Ingenuity has51 active awards at 40 companies across theprovince, and it wants to boost that numberto 80 awards per year. “We know from thecompanies we’re already involved with thatthey feel we’ve been a real benefit to them,

and their R&D programs wouldn’t bewhere they are today without us. As well, ithelps recent graduates get experience inindustry,” says Jeremy.

Since 2002 when the program started,I’ve had a chance to interview on Inno-vation Alberta a number of researchersworking in industrial associateships—mostrecently Dr. Jeff Battigelli at Paragon Soiland Environmental in Edmonton’swestend. Jeff is a soil ecologist studyingarthropods or little mites that live in the soil.His interest is the differences betweenarthropod communities in natural forestsand land that is reclaimed after oil sandsmining. Because these mites influencechemical and physical changes in the soil,they may be useful as indicators of soilquality and health in reclamation projects.

Right next door to me, start-up companyScanimetrics is using industrialassociateships to advance its chip testingtechnology. Chenomx has Dr. KathrynRankin working on the development of anew diagnostic tool. Micralyne hasbenefited from the research of its AlbertaIngenuity partnership to further develop aspatial light valve, a microelectronictechnology that switches lasers from UV tofar infrared wavelengths. Obviously, fromagriculture to GIS, there’s no limit to thepotential areas of research where AlbertaIngenuity’s industrial associateshipscientists can be of help.

Another good thing about the program isits quick turnaround. Six competitions areheld each year, with the next deadline beingApril 1st. The results are announced in atimely fashion, within six weeks after theapplication deadline. And there’s anoptional pre-application process to guidepotential candidates and companies. Hereyou would submit a one page description ofthe candidate, company and researchproject. Alberta Ingenuity will then offeradvice on eligibility. According to Jeremy,“This is helpful especially for companiesapplying for the first time. It gives them anedge in the competition and let’s themknow what we’re looking for.”

For more information on AlbertaIngenuity’s industrial associateshipprogram, check out the website atwww.albertaingenuity.ca/ia

Now that the U of A and TECEdmonton move to the historic Hudson’sBay building downtown is finalized, theplanning process is going full tilt to ensure

everything is ready for spring of 2007. As RTF manager Stephen Kimoff is

quick to confirm to existing tenants at theResearch Transition Facility, “This will be alateral move in terms of everything we’vebeen doing here. But the new space will becompletely renovated.

The current RTF is housed in the oldnurses’ residence on the U of A campus.Believe me,there’s onlyso far ren-ovations cango in thisquirky oldbuilding,charming asit is. On theother hand,Stephen isexcitedabout whatcan be donewith theBaybuilding. “Itwill becompletely gutted, right down to theconcrete. We’ll keep the historic façade but,inside, we’ll build high quality brand newlabs and office space.”

RTF and TEC Edmonton will occupy thetop floor, which could be the third, orpossibly the fourth if one is added. Thespace will be split 50/50 between lab andoffice, each designed for flexibility toaccommodate start-up technologycompanies occupying the facility.

Stephen explains, “We’ve learned anenormous amount from the five years wehave been operating at the old nurses’residence to do a really good job of creatingan environment that’s been thoroughlythought out. The Stir Krazy coffee shop hasfacilitated interaction between tenants in ourcurrent site. Downtown, this interaction willhappen on a city scale. Commercial startupswill have access to lawyers, accountants,government, EEDC and so on. That haseveryone excited.”

With the move, TEC Edmonton willfocus on further enhancing its services totenants and participants, particularly on thebusiness side, helping people get access toresources that will advance thecommercialization of their product.

Prospective tenants don’t have to be U ofA spinoffs but they do have to have someinvolvement with technology, want to grow,

and want to have an association with theUniversity and the City of Edmonton. Ifthat describes your situation, Stephen wantsto hear from you: [email protected]

On another note, any day now we shouldbe hearing an announcement about thesuccessor to Dr. Peter Robertson as thenew CEO of TEC Edmonton.

Alberta Research Council has joinedforces with Edmonton’s very successfulbiopharmaceutical company CVTechnologies Inc. through its NuRxprogram. CVT is the company that makesCOLD-fX, the popular natural medicine forcolds and flu that hockey celebrity DonCherry hawks.

NuRx Services is an ARC research unitspecializing in nutraceutical, pharmaceuticaland biotechnology research anddevelopment.

Says CVT CEO Jacqueline Shan, “Thelab services they’ve provided have helpedus get through a recent rapid growth period.Having this type of service available tolocal biotech start-ups is great for theAlberta biotechnology industry.”

Other organizations partnered withARC’s NuRx Services in the EdmontonResearch Park include NAEJAPharmaceuticals, Keystone Labs, and Uof A researchers from the AlbertaIngenuity Centre for CarbohydrateScience.

The NuRx team has recently patented adesigner lipid and a process formanufacturing glucosamine hydrochloride.

BioAlberta introduced its newpresident Ryan Radke at its AGM andGala Awards in January. Ryan waspreviously the VP operations and programswith BioAlberta. He has a strongbackground in international trade,technology and bio-pharmaceuticals.

Alberta is a hotbed of biotech activity inCanada, with over a hundred companiesinvolved in the industry. More than 3,300people are directly employed bybiotechnology firms, with a further impacton almost 20,000 more jobs. According tothe BioAlberta 2005 State of the IndustryReport, Alberta’s biotechnology firmsproduced revenues of $386 million in 2004,with an investment of $112 million.

Innovation and Science MinisterVictor Doerksen is back from a verysuccessful trade mission to China andCalifornia in January. While in Edmonton’stwin city of Harbin, he launched the newAlberta-Heilongjiang, Harbin Institute ofTechnology Research Innovation Centre.Data mining is a major focus of this jointventure. The Minister also witnessed thesigning of a memorandum of agreementbetween TRLabs and China Railregarding collaboration on a wirelessservices project. ✔

Cheryl Croucher is an Edmonton broadcastjournalist and host of Innovation Alberta.You can hear the program on CKUA RadioTuesdays at 8pm or download it when youvisit www.innovationalberta.com. [email protected]

with Cheryl Croucher, Bruce Hogle, Greg Michetti and David Norwood

INTELINTELBizBizScience&Tech

CanWest Global Communications VPDavid Asper bluntly states that “publicfaith in Canada’s judicial system is beingthreatened by shoddy columns and newsreporting.”

Speaking at a University ofWestern Ontario symposium a fewmonths ago on the media and courts,he was joined by former OntarioSuperior Court Chief JusticePatrick LeSage, who added that hefound it “objectionable” whennewspaper columnists mix facts andopinion in columns that run duringtrials.

With all due respect to the former chiefjustice, in trials I’ve covered in fiveprovinces as a print/electronic journalist,“facts” and “opinions”, as well as“speculation” and “hearsay” are frequentlyheard from various witnesses during alltypes of trials. And even from somelawyers.

And Mr. Asper should know thatcolumnists, the likes of the EdmontonJournal’s Lorne Gunter, Paula Simonsand Scott McKeen, and The Sun’s PaulStanway and Kerry Diotte, almost dailymix facts with opinions on the subject oftheir columns—be it concerning EdmontonCity Hall, the Alberta Legislature or theEdmonton Court House.

That’s not the least bit surprisingwhen you find Canada’s supreme court

justices mixing facts with their opinions—especially in split-decision cases. Allof them follow the letter of the law, butsplit decisions occur because of variousinterpretations of same by those inCanada’s highest court.

Further, I give credit to mostreaders who can easily distinguishbetween an opinion column and anews report. Opinions carry verylittle weight or credibility withoutfacts being provided as a basis for theopinion/argument.

Ironically, Asper finds nothingobjectionable about members of hislegal profession using journalistsoutside the courtroom to get afavourable spin for their clients. AtWiebo Ludwig’s trial some years

ago, the presiding judge cautionedcounsel about overuse of the media at“sidewalk courts”. And, if mymemory serves me right, that judgealso found such action objectionable.

David Asper is shortchanging suchastute CanWest publishers as LindaHughes of The Journal and PeterMenzies of the Calgary Herald, if hethinks either one of them—or anyother publisher/editor for that matter—would allow public faith inCanada’s judicial system to bethreatened by the writers of “shoddycolumns and news reporting.” ✔

Bruce Hogle is the former news directorat CFRN TV and recently retired head ofthe Alberta Press Council.

Media Minutewith Bruce Hogle

Jeremy Fritsche

Stephen Kimoff


Proof__3_________PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

LAS VEGAS, NV – On “The Strip,” not farfrom the Las Vegas Convention Center, a huge billboarddisplays a pair of ruby red, female lips on a jet blackbackground and these four words: “What Happens inVegas…”

Well, Sin City reputation aside, the only things that the2,500 exhibitors at the 2006 Consumer Electronics Showwant to stay in Vegas are signed purchase orders from theattendees of this gigantic show.

CES is a big, big deal. Since the death of Comdex, it hasevolved into the granddaddy of all trade shows and hasmore attendees—about 130,000—than the population ofThunder Bay, ON or New Haven, CT.

You want celebrities? You’ve got ’em: Kevin Bacon wasdining a few tables away from me at the Nobhill Restaurantin the MGM Grand. Tom Cruise and Ellen Degenerespitched Yahoo! Inc., Robin Williams was hustling Google,Justin Timberlake was on stage with Bill Gates, JayLeno just happened to be playing the Mirage thisweekend… and hey, isn’t that New York Yankee shortstop

Derek Jeter showing Dana Carvey his new cell phone? Name dropping aside, while CES is the coming-out party

for new companies and new gadgets, the big boys often usethis four-day, e-circus to make a statement about their newdirections. For example, Gates gushed over Vista, the nextMicrosoft operating system… Intel CEO Paul Otellinipromoted ViiV, its new microprocessor… Silicon Valleyheavyweight Hewlett-Packard unveiled four newconsumer notebooks, a digital entertainment desktopcomputer and seven small, low-priced digital cameras.

However, it was HP’s rollout of nine new high definitionTVs in three model categories of LCD, microdisplay andplasma that grabbed a great deal of attention.

Simply put, the new units look great. They serve upbright, clear images, and most home type models have theperipheral input panel on the front—right where it shouldbe. The idea here is to connect your personal computer to itand watch high definition TV, movies, play DVDs, listen toall of juniors illegally ripped music and surf the ’Net, too.

If it were up to HP, the typical digital home of the futurewill sport one of its TVs—like the 37-inch HPAdvancedDigital Media LCD TV unit—and have it connected to anHP Media Center PC. This type of setup now becomes thedigital hub for the house, and allows for the wired orwireless streaming of music and video to other devices inthe home: the Xbox 360 in the den, and the Media Centerlaptop that Mom has open on the kitchen counter whilepreparing dinner.

Of course, there is a money angle behind this. Now, youcan conveniently access and buy over a million songs atReal Networks’ Rhapsody, or visit CinemaNow andMovieLink to watch more than 4,000 Hollywood movies orhigh-definition videos.

OTHER COOL CES GADGETS:We all know that the PC, your TV and your cell phone/PDA are quickly converging. Nowhere was this moreevident than the Slingbox, a $250(US) brick-like-lookingdevice that sits on top of and connects to your Shaw Cable“set top box” and your home router.

Now, you can view live television from any computer,anywhere, anytime through your Slingbox-equipped home

TV; just as long as you are connected to the Internet. Theunit, made by SlingMedia of San Mateo, CA can beordered online and converts your TV signals so they can betransmitted over the Internet for viewing from a browser.

Going to Maui this month but want to watch the 6o’clock newscast on Global Edmonton everyday? Nowyou can, by just powering up your laptop.

We all know what a hit the iPod is. However, theCreative Zen Vision:M ($300 US) is an iPod knockoffthat just may be better. Complete with 30GB of storage, it isslightly bigger than an iPod but has a far better display, anFM Tuner, video support and recorder ,and syncs with yourMicrosoft Outlook contacts, calendar and tasks. Not bad.

Pioneer made a big splash at CES and was involved inseveral “Best of Show” award categories. This year, theInno an “XM2go” gadget plays, naturally, live XMSatellite music but can now download and record up to—get this—50 hours of XM programming. The unit ($400US) also has MP3 playback, meaning you’ve got a satelliteradio and an MP3 player in the same package. There is noword if this is available in Canada, but usually whathappens with satellite radio will eventually find its waynorth of the 49th.

After all, what happens in Vegas, usually doesn’t stay inVegas. ✔

Gregory B. Michetti of the Alberta-based systemsintegration firm Michetti Information Solutions, Inc. can bereached via www.michetti.com or [email protected].

These days, you can’t avoid talk of re-brandingEdmonton. Mayor Mandel has managed to coax $480,000out of City Council to help market the city more effectively,and all I can say is, “It’s a good start.” While I’m not surethat re-branding and making others more aware ofEdmonton are one and the same thing, they both do speakto a problem that I’ve focused on more than once—andrecently—in this column.

I personally think that renaming something so that itincludes “Edmonton” as part of its title is neither necessarynor relevant. The University of Edmonton, for example, hasa nice ring to it, but University of Alberta has a muchbetter caché, suggesting something more than an institutionthat serves primarily a local clientele. That’s especially truewhen the name is linked to almost 100 years of history. Butin an acknowledgement that a recognition problem exists(and I know well that it does, from personal experience),the University of Alberta has agreed, I understand, toidentify itself more closely with Edmonton, in that itsbranding and marketing efforts will include something like“University of Alberta, Edmonton” wherever practical.

Similarly, renaming the Edmonton Art Gallery the ArtGallery of Alberta is a mark of recognition and prestige,not a diminution of Edmonton. The Art Gallery ofOntario, the Royal Ontario Museum and Roy ThomsonHall all are well associated with Toronto, as is theGlenbow Museum with Calgary. The Art Gallery ofAlberta and the Royal Alberta Museum reflect andreinforce the fact that Edmonton is the capital of Albertaand is the proper location of institutions that serve aclientele spanning not just Alberta but Canada and beyond.It’s wise to recall Shakespeare’s words from Romeo andJuliet: “What’s in a name? That which we call a rose, Byany other name would smell as sweet.”

It’s more a matter of getting the word out, and this leadsme to what I have long argued is the biggest problem withEdmonton’s image: lack of national media recognition. Theresponses I’ve had to my past comments on this suggestthat I am far from alone in my thinking. One person notedin passing that in Alberta we should be referring to CBCRadio One and Two as the “Calgary BroadcastingCorporation,” and that almost rings true. Some of this maybe budget-related, I’m sure, but the fact that the vastmajority of provincial broadcasting on CBC emanates fromCalgary is both unbalanced and unfair. I also had e-mails

regarding my recent expression of disgust with CTV for itslack of a national bureau representative in Edmonton—readers agreeing that it’s simply ridiculous that Calgary isgiven such disproportionate coverage. The same goes withthe National Post, which early on showed such promise inproviding balanced Alberta coverage, but which has sinceshrunk its Alberta focus to… well, not to Edmonton. I thinkthe Globe and Mail is somewhat more balanced, but stillhas a long way to go.

If you think this isn’t important you might want toconsider that many of the country’s most influentialdecision-makers, both political and corporate, include CBC,CTV and both national papers as part of their listening andreading habits. And if they consistently hear programs andread new stories from Calgary and not Edmonton—especially news stories about Edmonton being reportedfrom Calgary—you can bet it has an impact on theiropinions of this city as a centre of influence. Edmontonianshave to keep up the pressure on the Toronto-based media tostop overlooking this region. It wasn’t always this way—adecade or so ago media parity between Alberta’s two majorcities was much more evident. Now, I worry thatEdmontonians are so accustomed to Calgary being used asthe Alberta reference point that we no longer want to fightfor equal representation on the national front. This is whereMayor Mandel should be using some of that $480,000recognition money: an ongoing awareness campaigndemonstrating that we, too, have something to say.

Speaking of branding, much has been made ofconstructing something that would give Edmonton a clearlyidentifiable symbol, much like the CN Tower in Toronto orthe Seattle Space Needle. In an important sense, wealready do have a symbol that is very much associated withEdmonton and is a major attraction: West Edmonton Mall.It may not be the kind of symbol we’re looking for, but thefact is that it pulls in more tourists and visitors than anyother Alberta destination, and we should remember that. Ido think that the Mall could use some significant updates.While the Waterpark is undergoing a major facelift, parts ofthe Mall are looking tired, and new attractions would be ashot-in-the arm. But for entertainment and shopping,virtually nothing in Canada rivals it. And a recent visit on aJanuary Saturday suggested to me that the crowds show nosign of diminishing. WEM was a very busy place. Let’s nottake it for granted… it’s been, and continues to be, good toand for Edmonton.

A faithful reader of Edmontonians and strongcivic booster, Kenny Davies, has passed on informationabout a potential new link between Edmonton and theUSA: “After saying last month that the airline wasresearching the possibility of expanding service to Canada,Frontier Airlines CEO Jeff Potter now tells the DenverRocky Mountain News that the low-cost carrier will indeedstart flying north of the border—hopefully by late May.Potter also told the paper that his airline plans to add “atleast” three new U.S. destinations and increase daily flightson 20 existing routes.

“As for Canada, Frontier last week submitted anapplication with the U.S. Department of Transportationseeking permission to fly to the country. With the proposedCanadian service, the Rocky Mountain News writes that‘Frontier hopes to emulate the recent success it has seen inMexico, where the carrier now flies to seven resortdestinations and even has the beginnings of a ‘mini-hub’ or‘focus city’ in Cancún.’ Colorado airline analyst MikeShonstrom says Canada appears to be a good fit forFrontier. ‘Certainly the Canadian market for Mexicanvacations is extremely strong and has always been,’ he says.‘Frontier is an ideal airline to offer connecting service (fromCanada) for that market. And, of course, there is a verylarge population of skiers in Denver who want to go northand ski the Canadian Rockies.’ Experts suggest Calgary,Edmonton, Toronto, Vancouver and Winnipeg as possibleCanadian destinations.” ✔

David Norwood is a freelance writer/editor. Contact [email protected]

Civic Buzz

BizIT 101

www.edmontonians.com

Yahoo! Tom

DOWNTOWN EVENT LISTINGS

Your one stop forinformation on theEdmonton Arts District www.theartsdistrict.com

Family Festival DowntownChurchill Square, ArtsDistrict, Alberta Legislatureand many more venues…February 20, Noon to 5 pm780.424.4085www.edmontondowntown.com

ART GALLERY OF ALBERTA

Architecture & DesignFilm SeriesFebruary 7, 14, 21 & 28, 7 pmwww.madeinedmonton.orgEdward Burtynsky: A Gift to EdmontonUntil February 6Inuit Art: A MovingExperience; Travel andTransport in the ArcticUntil Februrary 26IttuKiagâtta: Inuit Sculpturefrom the TD Bank Financial GroupUntil February 26Building a Collection: 80 years at the EAGUntil April 2780.422.6223www.edmontonartgallery.com

CITADEL THEATRE

Kurt Elling ConcertFebruary 3, 8 pmFully CommittedUntil February 12I Am My Own WifeUntil February 19Guys and DollsFebruary 11 to March 19Box Office 780.425.1820www.citadeltheatre.com

ZIEDLER HALLMetro Cinema780.425.9212www.metrocinema.org

SHAW CONFERENCE CENTRE

Groove Street ProductionsDance ConventionFebruary 4 and 51-877-476-6839www.groovestreet.netAl Shamal Shriner’sValentine Dinner & AuctionFebruary 11780.482.6065www.alshamalshriners.orgG.E.T. FestFebruary 13 to 17780.415.5211www.movementsdance.comBounce 91.7 Birthday BashFebruary 17www.thebounce.caTrader’s ForumFebruary 19 to 21905.760.7694www.tradersforum.caMissionsfestFebruary 24 to 26780.451.0080www.mfest.ab.ca

780.917.7670www.shawconferencecentre.com

WINSPEAR CENTRE FOR MUSIC

Edmonton SymphonyOrchestra Davis SundayShowcase -Romantic Masterpieces:Parisotto/Zou/HacklemanFebruary 12Robbins Pops – Peter Nero’s Greatest HitsFebruary 17, 18The Masters:Akiyama/CampbellFebruary 24 , 25

Also Playing at WinspearWorld at Winspear: Emeline MichelFebruary 4Richard Eaton Singers withAlberta Baroque EnsembleFebruary 5Great Big Sea - SOLD OUT!February 7Paco Pena – FlamencoFebruary 8Men Making MusicFebruary 11Duo MajoyaFebruary 12Sundays at 3: Maurice Clerc from Dijon CathedralFebruary 19, 3 pm780.420.1757Colin JamesFebruary 23Pro Coro – Lighter Side of Pro CoroFebruary 26World at Winspear:CubanismoMarch 3

STANLEY MILNER LIBRARY

Philosopher’s CaféFebruary 4, 2 pm780.496.7063Concrete Theatre: Nami NamerssonFebruary 3, 7 pm February 4, 2 pm & 7 pm 780.420.1757www.concretetheatre.caCinema at the Centre: Roads to KoktebelFebruary 8, 7 pmCanada Council Author Reading: Joan BarfootFebruary 26, 2pm

NFB Film Club: Me and the MosqueFebruary 26, 2 pm780.496.7070www.epl.ca

MORE DOWNTOWN VENUES

ALBERTA CRAFT COUNCILInspired, Influenced..InSERIESUntil April 1780.488.6611www.albertacraft.ab.ca

McDOUGALL UNITEDCHURCHMusic Wednesdays at Noon.Free!February 1, 8, 15 and 22780.468.4964I Coristi Chamber Choir:Marian MementosFebruary 4, 8 pm780.420.1757Philip Glass: The Etudesand other work for Solo PianoFebruary 24, 8 pm780.451.8000www.ticketmaster.ca

RED STRAP MARKETKids’ Day at the MarketFebruary 11, 1 to 4 pm780.497.2211

SNAP GALLERY David Scott Armstrong: And Now, Then OtherwiseUntil February 18Artist ReceptionFebruary 16, 7 pmLinda Carreiro: BindFebruary 23 to April 28Opening ReceptionFebruary 23780.423.1492www.snapartists.com

STARLITE ROOMSonata ArcticaFebruary 4, 8 pmPhilosopher KingsFebruary 18, 8 pmReverent KFebruary 22, 7 pmThe Birthday Massacrew/GuestsFebruary 24, 8 pmController.controllerMarch 01, 8 pm780.451.8000www.ticketmaster.ca


Proof___1____PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________

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“You start by recording yourbefore measurements,” says LindaPerras of Suddenly Slimmer. “Wecheck jaw, neck, forearm, wrist,

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Proof_2_____PROOFED BY:_______________________________________________CHANGES MADE:__________________________DATE:_________________


SELLING TO THE COMPETITIONWhen selling a business one of the obvious buyers is your competition. However, most vendors areleery of selling to their competitors. Vendors are anxious about the possibility of the competitionusing the sale process simply as an opportunity to obtain information that could hurt their business.This is a very real concern and from time to time it does happen

Customers and employees tend to be the most vulnerable areas. Few companies have proprietarytechnology or a secret formula for success that no one else knows about. All companies haveemployees without whom they would not be able to stay in business. In Alberta’s current businessclimate good employees are in short supply. Skilled workers with a particular expertise are evenharder to replace. In a number of the service industries if one company hires three people fromanother company that company takes three from yet another company and so on. The deck iscontinually reshuffled; everyone gets a raise but none of the companies are really further ahead.Because skilled employees are becoming such a scarce commodity, purchasers need to be assuredthat the company’s key employees are content, motivated and most importantly, going to stay.

Most businesses in the same market place know their competitor’s customers base as theycompete for the same business on a continual basis. If the value of the company being sold is drivenby its sustainable income stream rather than its underlying asset base, the relationships the vendorhas with its customers is critical. As a result, most purchasers want to talk to the vendor’s customersto confirm if customer patronage and therefore, company revenues are likely to continue.

The challenge is how to satisfy the purchaser’s due diligence requirements in regard to theseissues and protect the vendor at the same time. Part of the solution is timing. All of the othersignificant due diligence items should be signed-off before these issues are addressed.

Typically there are only a few key employees; the natural leaders and innovators in theorganization. If these key individuals are on side with the transaction, the rank and file will likelyfollow.

Customer information, volumes, product mix, margins etc. should be given in a generic and non-identifying form for as long as possible. Direct contact with customers should be controlled by thevendor or his/her agent and both the vendor and the purchaser should be present at any meetings.

A final suggestion; if you are considering a purchase, do not hire any of the vendor’s employeesduring the due diligence process. If one of them wants to join you, wait a month before you hirethem or sign them up with an impending commencement date. Hiring a vendor’s employee at thecritical time of negotiations can destroy trust between the parties. If there is no trust there will be nodeal.

If you would like to learn more about selling or purchasing a business, please email me [email protected] or call me at780.448.9386. For more information aboutFoundation Group visit our website atwww.foundationgroup.ca.

Stephen W. Kent, CA(780) 448-9099

ACQUISITIONS, DIVESTITURES & CORPORATE FINANCE

Habitat for Humanity EdmontonApril, May, June 2006

A duplex for two Edmonton families currently living in sub-standard housing will be designed, built, finished, and landscaped by women. Hundreds of volunteers—

professional carpenters, plumbers and absolute beginners—will work together to build hope

for families.

Sign up for shifts, 8am to 5pm, Monday through SaturdayTraining Sessions in February and March

Contact Brenley Bennett [email protected]

edmontonians feb06

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