Archive for October, 2004

Google launches computer indexer

Friday, October 15th, 2004

Sun

MOUNTAIN VIEW, CALIF. — Google Inc. became the first tech heavyweight to tackle the daunting task of uncluttering computers, introducing a program on Thursday that quickly scours hard drives for documents, e-mails, instant messages and past Web searches.

With the free desktop program, Google hopes to build upon the popularity of its Internet-leading search engine and become even more indispensable to the millions of people who entrust the Mountain View-based company to find virtually anything online. Google’s desktop search program is so powerful that analysts cautioned computer users to carefully consider what kind of material they want indexed, particularly if they’re sharing a computer.

© The Vancouver Sun 2004

 

Colliers Macaulay Nicolls Real Estate Broker sells for $110M

Friday, October 15th, 2004

Bruce Constantineau
Sun

 

CREDIT: Steve Bosch, Vancouver Sun

Colliers chairman John McLernon (foreground) said the sale to FirstService will allow the company to complete its vision of becoming an even bigger global player. Managers (from left) Kirk Kuester, Douglas Morison and Ron Bagan joined McLernon to celebrate the deal.

Vancouver-based commercial real estate broker Colliers Macaulay Nicolls Inc., which started out as a residential real estate firm in 1898, will be sold to FirstService Corporation of Toronto in a $110-million deal announced Thursday.

The two sides have agreed on a plan that will see FirstService buy 70 per cent of CMN shares for $10.06 US each. The rest of the shares will be held by about 240 senior CMN managers, brokers and employees under the deal that’s expected to close on Nov. 30.

Colliers Macaulay Nicolls is by far the largest member of the international Colliers real estate network, with 80 offices in 20 countries and annual revenues of $280 million US.

It’s a private company owned by its managers and employees. Company chairman John McLernon, who spearheaded much of its growth over the past 20 years, said the organization needed capital to grow and had become too big to remain an employee-owned company.

He said the arrangement with First- Service will allow CMN to complete its vision of becoming an even bigger global player, doubling in size over the next five years with expanded services and a greater presence in more markets.

“You have to evolve,” he said in an interview.

“If we were just a Vancouver company today, we might not even be alive.”

FirstService is a public company involved in several real estate services, including property management and commercial security systems.

It currently operates the security system for Rockefeller Center in New York and has about $1.3 billion FirstService president Jay Hennick said the Colliers Macaulay Nicolls acquisition is a great fit for his company, which has been keen to enter the commercial real estate market.

“They are global players in the international market and in the top three in every market they serve,” he told analysts in a conference call. “… [CMN] will continue to grow internally and through acquisitions.” Hennick said he’s pleased company employees will remain major shareholders in the business, with a vested interest in its future success.

McLernon, who will leave as chairman but remain as a special consultant after the deal goes through, said the time was right for a growth company like Colliers Macaulay Nicolls to seek new capital.

“It has been a good market around the world and people are interested in acquisitions now,” he said.

CMN will maintain its name and its Vancouver base but Hennick will become the new chairman, operating out of Toronto.

Investors with more than 62 per cent of CMN shares have already agreed to support the transaction.

The biggest shareholder is Montreal-based merchant bank Benvest Capital Inc., with 21.4 per cent of the company’s outstanding common shares.

Benvest is divesting itself of assets as it focuses on the eyecare industry in Canada.

McLernon said he has no regrets about losing the Vancouver ownership base for the 106-year-old organization.

“If you spend too much time regretting things in life, you waste a lot of positive energy,” he said. “The wisdom of the [management] group really believes that this is a very positive move going forward.”

FirstService shares gained $2 Thursday to close at $33 on the Toronto stock exchange.

ROOTS GO BACK TO 1898

Colliers Macaulay Nicolls Inc. is based in Vancouver and traces its roots back to 1898, when Macaulay Nicolls Maitland was founded.

It has:

– Brokered some of the biggest real estate deals in B.C. in recent years, including the sale of the Pan Pacific Hotel/World Trade Centre and Metrotown shopping centre.

– 4,100 employees.

– 80 offices in 20 countries throughout North America, Asia Pacific, Latin America and central Europe

– Revenues that have grown from $7 million in 1984 to $280 million US in the past year.

© The Vancouver Sun 2004

 

Valley real estate sales dip again

Thursday, October 14th, 2004

September was its third monthly decline but market ‘just balancing,’ board says

Derrick Penner
Sun

 

Fraser Valley real estate sales dipped 2.5 per cent in September, the third consecutive monthly decline, the area’s real estate board reported Wednesday.

The 1,346 sales processed through the Multiple Listing Service were 35 fewer than August’s figures and 333 fewer than sales in September 2003, which represents a 19.8-per-cent decline.

Prices, however, remain consistently high, which the board has said indicates the market is “balancing.”

“[The decline] is relatively insignificant as far as I’m concerned,” said David Rishel, vice-president of the Fraser Valley Real Estate Board.

“And we still have a steady stream of listings coming in and we’re still well on target to set a [sales] record this year, even with those small declines.”

Rishel said the board doesn’t anticipate any changes other than a retreat to a “nice steady market.”

The average single-family-home price in September was $360,598, a 1.9-per-cent dip from August, but still up 18.2 per cent from September 2003.

Townhouses, however, at an average price of $232,117, are selling at prices 3.2 per cent higher than August and up 18.2 per cent from a year ago.

Tsur Somerville, director of the Centre for Urban Economics and Real Estate at the University of B.C.‘s Sauder School of Business, said declining sales are a sign that a hot market is returning to normal, but also the first sign of a market decline, in which declining sales would be followed by falling prices.

He noted B.C. is experiencing employment and population growth, both which tend to support the real estate market.

– – –

DOWN IN THE VALLEY

Fraser Valley MLS sales

September 2004: 1,346, down 2.5% from August, and a decrease of 19.8% from September 2003.

Average price of a single-family home in the Fraser Valley

September 2004: $360,598, down 1.9% from last month but up 18.2% from the same month last year.

© The Vancouver Sun 2004

Housing prices hottest in Victoria

Wednesday, October 13th, 2004

B.C. capital saw real-estate market’s biggest increase

Eric Beauchesne, with a file by Bruce Constantineau
Sun

 

The price of a new home in Victoria posted the largest 12-month increase of any city in Canada as the national housing market continues to experience robust demand from home buyers, Statistics Canada reported Tuesday.

StatsCan said the price of a new Victoria home in August rose by 9.1 per cent over August 2003, according to its new housing price index which measures the change in contractors’ selling prices.

Ottawa-Gatineau had the second-largest annual new house price increase, at 8.6 per cent, while Winnipeg came in third at 8.5 per cent. Vancouver was 11th among 21 Canadian cities surveyed, with new house prices in the city rising by 5.5 per cent in the past year.

New-home prices in August were running six per cent above their year-earlier levels and roughly three times the rate of inflation, a reflection of a housing market that remains hot but a market which analysts say will cool.

“An active housing market, along with higher prices for building materials and labour, continued to push prices up across the country,” Statistics Canada said Tuesday. “The annual increases for July and August were down only slightly from the 6.2 per cent annual increase in June, which was the biggest 12-month gain since February 1990.”

“New-house prices are rising more strongly than was the case in early 2003, when the Bank of Canada expressed concern about house-price pressures leading to persistent upward pressure on core inflation,” said Ted Carmichael, economist at J.P. Morgan.

“However, housing demand and prices are expected to moderate later this year as mortgage rates rise.”

A cooler housing market would be good news for inflation but not for the economy, said Allan Seychuk, economist at RBC Financial Group.

Housing prices, he noted, have garnered a bit more attention lately from the Bank of Canada, given the robust health of Canada‘s housing market alongside the bubble-like conditions in some other countries such as Australia, the United Kingdom and parts of the United States, he noted. While the bank has expressed concern about the impact of housing prices on inflation, housing has also been a major source of economic growth, he added.

“House-price trends have become somewhat more important because of how important residential construction has been as a source of growth. If prices begin to decline rapidly, homebuilders will back off on activity and growth will be somewhat lower than expected,” said Seychuk.

BUILDERS INVEST IN THE WEST:

Investments in non-residential buildings were down in 15 of 28 metropolitan areas surveyed by Statistics Canada, but advances in all three components of the sector — commercial, institutional and industrial — in Greater Vancouver helped the region post the largest increase (+9.1% ) in the third quarter.

Investment in non-residential building construction, % change, Q2 to Q3 2004, by city

St. John‘s -23.0

Halifax +11.3

Montreal -4.8

Toronto -3.5

Winnipeg -10.1

Regina -18.6

Calgary +0.6

Edmonton +4.6

Abbotsford -5.6

Vancouver +9.1

Victoria -9.9

Outside Atlantic Canada, B.C. posted the largest increase in investments in non-residential buildings (+4.2% ) in the third quarter.

Investment in non-residential building construction, % change, Q2 to Q3 2004, by province

Canada -0.9

Newfoundland and Labrador -13.9

Prince Edward Island +12.0

Nova Scotia +33.8

New Brunswick +0.5

Quebec -2.2

Ontario -2.7

Manitoba -13.5

Saskatchewan -11.9

Alberta -0.2

British Columbia +4.2

Source: Statistics Canada, Vancouver Sun

© The Vancouver Sun 2004

Increasing Mortgage rates is a reminder to consider options

Tuesday, October 12th, 2004

Marty Hope
Province

 

CanWest News Service -The consensus is that mortgage rates are going to go up, says CMHC’s Richard Corriveau

CALGARY — More than three-quarters of Canadian homeowners, and those seriously considering buying a home, have indicated that now is the time to lock in their mortgages, says a national survey.

Seventy-eight per cent of respondents say mortgage rates won’t be dropping, so locking in will avoid any further increases, says a CIBC report.

“If you have been waiting for mortgage rates to bottom out before locking in, then yes, absolutely, this is the time to do it,” says Richard Corriveau, senior market analyst for Canada Mortgage and Housing Corp. in Calgary.

“The general consensus is that rates will be up by at least three-quarters of a per cent by the end of 2005.”

The increase would place the five-year borrowing rate at 7.37 per cent, less any discount that can be negotiated with lenders.

“However, research still shows that short-term mortgages — variable and one-year — will still pay off because short-term money is still cheaper than longer term,” says Corriveau.

Fifty-nine per cent of those surveyed expect rates will go up through next year, says the CIBC survey.

It marks a change from six months ago, when only 34 per cent expected increases. The survey says another 24 per cent don’t see rates changing, while six per cent see them falling.

“With interest rates expected to head north, that natural instinct is to lock in,” says Paul Mims, CIBC vice-president of mortgages and lending.

“But if they’re comfortable, homeowners may be better off over the longer term with a variable rate mortgage.”

However, a majority of the survey respondents disagree with the variable rate suggestion.

About 61 per cent believe the best mortgage strategy to follow is to take a fixed-rate mortgage at a slightly higher rate.

Nearly seven out of 10 homeowners with a mortgage currently have a fixed rate, while 26 per cent hold a variable-rate mortgage.

“Of those who are planning to obtain a new mortgage or renegotiate an existing mortgage in the next year, 44 per cent intend to switch the rate type or the term they have right now,” says Mims.

The slight increase in rates serves as a reminder for people to consider their mortgage options, says Andrew Moor, president and CEO of Invis, one of Canada’s largest independent mortgage brokerages.

But Moor also suggests variable rates may be the way to go.

“With mortgage rates on the rise, Canadians may be tempted to lock in a fixed-rate mortgage,” he says. “However, it’s important to realize that the prime rate would have to rise considerably over the next five years to make the current variable rate options unattractive.”

© The Vancouver Province 2004

BC Natives first to manage own social housing

Tuesday, October 12th, 2004

Aboriginal association takes on 189 homes in step to total self-management

Judith Lavoie
Sun

 

B.C. has become the first province in Canada to hand over management of social housing to the aboriginal community.

The administration of 189 homes — 92 of which are on Vancouver Island — has been transferred from the province to the Aboriginal Housing Management Association.

The transfer is being heralded by first nations and Community, Aboriginal and Women’s Services Minister Murray Coell as a historic move toward total aboriginal self-management of social housing.

“Safe, affordable housing for aboriginal people should be managed by aboriginal people,” Coell said. “It’s something the aboriginal community has been asking for for a number of years.”

The next step is to conclude a federal-provincial agreement that will allow the association to take over administration of another 2,800 housing units being managed by Canada Mortgage and Housing Corp., Coell said.

Funding and operating agreements with both levels of government will remain the same, but aboriginal housing societies will manage the buildings in ways that reinforce cultural identity, he said.

The M’Akola Group of Societies will manage the housing on Vancouver Island — under the association’s umbrella.

“This is a huge step, a huge precedent. There’s really no downside to this,” said Kevin Albers, M’Akola executive director.

Housing can help address some problems faced by urban aboriginals such as discrimination, poverty, over-representation in the justice system and difficulty in obtaining education, Albers said.

There is always a waiting list for M’Akola housing, and throughout the province the need for more affordable family housing is growing, he said.

Linda Ross, housing association executive director, said the transfer gives aboriginal people more control over their destiny.

“And control over your life is associated with health and well-being.”

One difference from other social housing is that the association complexes usually have communal rooms where ceremonies and traditional events can take place, Ross said.

“As the first aboriginal group to actually deliver housing subsidies and oversee the operations of the provincial aboriginal housing providers in B.C., we intend to be a stellar model for the rest of Canada,” she said.

© The Vancouver Sun 2004

 

Cordova Street now open at Thurlow

Tuesday, October 12th, 2004

Maurice Bridge
Sun

 

Leonard Frank photo, Vancouver Public Library

VANCOUVER – Don’t bet on the recent opening of the West Cordova Street extension between Burrard and Thurlow to do much for your commute, warns a city engineer.

West Cordova now extends at full width as far west as Bute Street, with a small link to the north end of Jervis, but Ian Adam, assistant city engineer in charge of transportation, doesn’t expect that to provide much relief for early morning drivers battling their way into the city.

“Depending on where you’re going, you may use a block or two, but it’s not really going to make a difference on your trip,” he said in an interview last week.

“Say you’re coming along Powell Street and you want to get to some address on Thurlow or Bute, you can go straight through and not have to make a couple of turns.

“But the primary reason [for the extension] is that whole area is developing with the convention centre and some other tall buildings like Shaw Tower, and it’s primarily for access to them.”

He holds out a bit of hope for drivers who use the western end of Hastings Street: “If there’s one area where I think this Cordova extension would make a difference, it’s probably that piece of Hastings Street out there which is really narrow and has often got buses stopped out on the street.

“It’ll at least give you another way to get into the area.”

But in the end, he said, it all comes down to one thing for North Shore commuters: “The big issue on First Narrows is just getting in line for the bridge.”

 

Cordova Street once marked the edge of downtown and the start of the harbour. Archival photo, bottom right, of the Marine Building, at the corner of Burrard and Cordova, shows nothing north of it on its opening day in 1930. Still standing, the art deco icon is now crowded in by towers. In recent days, historic Cordova reached another milestone when an elevated section leading to the new Shaw Tower (tall building to right) was opened, connecting the downtown portion of the street with the burgeoning — and perhaps confusing — road network. Maps explain new lights, parking regulations and turning lanes in the new section, which runs between Burrard and Thurlow.

© The Vancouver Sun 2004

Investors beware when buying condos to rent

Sunday, October 10th, 2004

Tony Gioventu
Province

 

There are many myths to strata investment. Here is one: “When an investor buys a strata lot with the intent of renting it out, he or she is “grandfathered” from future bylaws that could affect their right to rent the units, making it a risk-free investment.

Maybe not. In 2002, a Vancouver investor purchased three strata lots in a 97-unit building with renting it out in mind. At the time of his purchase, there were no bylaws that limited rentals, age restrictions or pets. Two weeks ago, the strata ratified a new set of bylaws to conform with the Strata Act. These included bylaws that limit the total number of rentals in the building to five (not including family exemptions or hardships); a bylaw that prohibits dogs; and a move-in fee for the cost of building security of $200 per move. At the time he purchased the lots this investor was told that rental units would be “grandfathered” for the future. This “guarantee” was even written into his purchase agreement. Now, to his dismay, he finds the new bylaws apply to him as well as everyone else.

Strata law: The Act sets out a variety of specific exemptions for rentals. Individual strata bylaws also consider some exemptions. But bylaws, once ratified, apply to every owner. Investors may discover that they have a rental unit they cannot rent out because a limit has been met. New rental bylaws, if there are no exemptions, come into effect one year after the tenant who was renting at the time the bylaw was passed, terminates his or her tenancy. For rentals, bylaw fines can also be set as high as $500 per week.

Tips: Before you purchase, review the bylaws closely. Find out how many rentals are in the building. This can give you an idea if the building has several investors, and therefore whether it is likely that bylaws restricting rentals will pass in the future. Remember that bylaws can always change. Several guides on rentals and rental bylaws are available through the CHOA office that might be valuable to review before you purchase.

Tony Gioventu is the executive director of the Condominium Home Owners Association (CHOA). Contact CHOA at 604-584-2462 or toll-free 1-877-353-2462, fax 604-515-9643 or email [email protected]

© The Vancouver Province 2004

 

Yaletown office to get eco-friendly facelift

Saturday, October 9th, 2004

Kim Pemberton
Sun

CREDIT: Bill Keay, Vancouver Sun Pam Groberman gets into her green theme.

CREDIT: Bill Keay, Vancouver Sun Tony Millares was given the assignment of custom-designing the ecologically friendly furniture for Groberman’s project.

Going green or striving to be environmentally friendly is an approach more and more developers are taking with housing projects.

For those who aren’t fully on the “go green” bandwagon Pam Groberman, who runs a public relations company that markets many condo and housing projects in the Lower Mainland, is the person to see for inspiration.

Groberman is in the midst of creating an “eco-friendly” office in Yaletown — one that not only does little harm to the environment but is also a healthier workplace for herself and two staff.

“I’ve been told I’m probably taking it to the extreme,” said Groberman. “It’s been really hard to be green but maybe in a couple of years it will be easier.”

The main problem, she said, has been finding local products that are truly sustainable.

Sustainable or “green” materials are ones that have not been harvested so that a resource is depleted or damaged. A “green environment” is also one where energy or water consumption has been reduced, incorporates recycled materials and promotes a healthier indoor environment.

Groberman is so dedicated to the go-green cause she is trying to find material that is 100 per cent sustainable and not simply recycle older products. Take her couch, for instance. She wasn’t able to find a 100 per cent recyclable couch locally because most are made from “chemical-filled” foam or use unhealthy dyes, she said.

“I had no other choice but to get one in San Francisco, which uses hemp and rubber,” said Groberman, adding unfortunately the “trade-off” was having it delivered because of the jet fuel usage.

Asked why not recycle a second-hand couch Groberman explained the materials used in one “wouldn’t go back to the earth.” “Where would it end up once I was done with it?” she noted.

Being so strict means Groberman has had to be patient with having her 2,500 square foot office completed. She began the project in June but doesn’t expect it will be ready until November.

Interior designer Rachel Brown, of Simple, said a lot of the time has been spent trying to source sustainable materials.

And like Groberman, Brown is optimistic eco-friendly products will be more readily available locally in the future as “going green” continues to gain popularity.

“A lot of this stuff could be found in home designs,” said Brown.

But, Brown warns, anyone trying to go green at home should take care to ensure what the supplier claims is true.

As an example, she said, “carpet companies say the carpets are recyclable but there are no plants to recycle carpets.”

That means Groberman’s office will be carpet-free. The white floors, have all been painted by hand, because it’s less toxic than spray paint, said Groberman, and the product used was an eco-friendly product called EcoLogic Waterborne Eggshell.

Groberman has also chosen a mat flooring made from recycled tire rubber to be used under the office desks.

The desks and some other furniture, such as end tables and a credenza, are being made from reclaimed fir from a saw mill and an old logging bridge from the Sunshine Coast.

They are being custom-made by furniture designers Tony Millares III and his wife Amber Host, of Urthwurks Furniture Inc.

There’s very few people doing well-designed, ecological products,” said Millares III.

“We’ve been doing quite a bit of market research and I would expect this will take off. We want to promote ecological furniture for a number of reasons – the environmental aspect and our own health.”

He said it makes more sense to use wheatboard, which is made of wheat-straw fibers bound with resin, instead of a product that uses formaldehyde, such as particleboard.

But, Millares III, noted going green isn’t cheap.

One of his desk costs anywhere from $2,000 to $5,000 while a sidetable is in the $1,000 to $2,500 range, depending on the finish.

Groberman said one of her biggest splurges was deciding to buy the extremely comfortable and 96 per cent recyclable Mirra office chair from LivingSpace. Each one cost $1,000 and she needed three.

While the project has been expensive, Groberman said she’s also had some breaks. She points out after finding her new office space, on the second floor of a low-rise brick building on Homer Street, she negotiated with the landlord to change to the lights to the energy efficient compact fluorescent lighting. The lighting saves up to 75 per cent in energy costs compared to incandescent lamps, according to B.C. Hydro’s Product Incentive Program brochure.

The landlord also agreed to change the toilets to ones that used less water when flushed.

The final touches in Groberman’s green space will include a natural water feature, and a 22-foot long planter box along one wall, all with plants that have very high air cleansing properties, said Brown. These include peace lily, bamboo palm, dracaena marginata and gerbera daisies.

“Everyone loves Gerbera daisies,” said Groberman. “And they’re healthy for you.”

“Going green doesn’t have to be just about granola and Birkenstocks. It’s healthy and cool too.”

HOMEWORKS

When is something green?

– Sustainable or “green” buildings refer to building materials used so that the harvesting does not deplete or damage a resource.

– A green building is also one that incorporates salvaged or recycled materials.

– Promotes a healthier environment

To help standardize what qualifies as green architecture, the Washington, D.C.-based industry group Green Building Council created the LEED rating system. Leed stands for Leadership in Energy and Environmental Design, that provides a point-driven certification program to assess a building performance and provides a standard for what constitutes a sustainable building.

© The Vancouver Sun 2004

Cyber attacks on critical support systems increase

Saturday, October 9th, 2004

Companies reluctant to report malicious attacks on industry

Sun

Computer hackers are increasingly targeting industrial control systems — including those at nuclear power stations, utilities and transport infrastructure — says a report that promises to “shock many in the engineering and IT community.”

The study by security experts at the British Columbia Institute of Technology and PA Consulting Group says there has been a 10-fold increase since 2000 in successful cyber attacks on process and supervisory control and data acquisition systems.

“Many of the attacked systems were responsible for the operation of critical services,” BCIT and PA say.

Recent assaults include a Slammer Worm infiltration of an Ohio nuclear plant and a wireless insurgency at a sewage system in Australia.

Process control and automation systems have been widely regarded as immune to external attack because they were based on proprietary technologies and were isolated from other information technology systems.

“But the 10 reported cyber attacks in 2003 are likely to be just the tip of the iceberg, as few companies are willing to report such incidents for fear of attracting further attack or negative publicity,” the study found.

“Industry estimates indicate that between 100 and 500 unreported industrial cyber attacks occur every year.”

The increase in cyber assaults on industrial systems is attributed to an increasing alignment of process control and corporate IT systems, the fact that corporate IT security measures often cannot be applied to process control systems, and “increasingly powerful and malicious” worms, viruses and hackers.

“The results were a surprise to us because they indicate that industry has been focusing their security efforts in the wrong direction,” says BCIT researcher Eric Byres.

“The real threat is coming from outside the organization rather than from within, as most of us originally believed. The variety and complexity of the different attack vectors is also a big concern. We can’t just throw in a firewall and hope all our security problems will be solved.”

Process control and automation systems have been widely regarded as immune to external attack because they were based on proprietary technologies and were isolated from other information technology systems.

“But the 10 reported cyber attacks in 2003 are likely to be just the tip of the iceberg, as few companies are willing to report such incidents for fear of attracting further attack or negative publicity,” the study found.

“Industry estimates indicate that between 100 and 500 unreported industrial cyber attacks occur every year.”

The increase in cyber assaults on industrial systems is attributed to an increasing alignment of process control and corporate IT systems, the fact that corporate IT security measures often cannot be applied to process control systems, and “increasingly powerful and malicious” worms, viruses and hackers.

“The results were a surprise to us because they indicate that industry has been focusing their security efforts in the wrong direction,” says BCIT researcher Eric Byres.

“The real threat is coming from outside the organization rather than from within, as most of us originally believed.”

© The Vancouver Sun 2004