Archive for December, 2007

November home sales spike as mortgage rate hike anticipated in ’08

Wednesday, December 5th, 2007

Derrick Penner
Sun

More buyers rushed into the Lower Mainland’s real estate markets in November, perhaps to beat higher mortgage rates forecast to take hold in 2008.

“That’s what we saw in the summer when we did see a couple of upticks [in mortgage rates],” Robyn Adamache, a market analyst for Canada Mortgage and Housing Corp. said in an interview. “A lot more people jumped into the market to get things going before rates went up any further.”

Multiple-Listing-Service re-corded sales rose in Metro Vancouver and the Fraser Valley.

The Real Estate Board of Greater Vancouver, which covers Metro Vancouver and the Sea-to-Sky region, saw 2,883 Multiple-Listing-Service-registered sales, a 22-per-cent increase from November 2006, and just slightly below 2005.

Most of those sales — 1,816 –were condominiums or townhouses.

“Affordability is a key question,” Brian Naphtali, the Vancouver real-estate board’s president said in a press release.

The so-called benchmark price for a typical Metro Vancouver detached home hit $729,011, an increase of 12.6 per cent from the same month last year. The benchmark Metro Vancouver apartment price was $374,393, which was up 13.6 per cent year-over-year.

November sales in the Fraser Valley were up 11 per cent to 1,327 units, which Fraser Valley Real Estate Board president Jim McCaughan said could have something to do with better selection.

The Fraser Valley saw 2,154 new listings registered in November, raising overall inventory to 8,593 units, a 16-per-cent increase.

“We’ve had strong demand for essentially the last five years,” McCaughan said. “However we haven’t always had as broad a selection of product.”

Adamache added that it is hard to quantify whether people are not buying in a hot market because the homes they want to buy are not on the market, but “it seems to make sense [that] if there are more listings, there’s more choice.”

The average Fraser Valley house price hit $511,176 in November, a year-over-year increase of five per cent.

Adamache said that while sales took an upswing in November, overall market statistics are tracking closely with her forecast that calls for sales to slow down in 2008 as more listings hit the market, and rising mortgage rates put the squeeze on more potential buyers.

© The Vancouver Sun 2007

 

New owner of Fairmont Hot Springs has billion-dollar development plan

Tuesday, December 4th, 2007

Geoffrey Scotton
Sun

INVERMERE — The new owner of the Fairmont Hot Springs Resort plans a $1-billion makeover of the historic and iconic Columbia Valley complex that includes new hotels, a high-end spa, commercial development, residential development and eventually, scheduled air service to the facility’s 6,200-foot airstrip south of Invermere.

“It’s close to a billion dollars when we’re finished. It’s a big project,” Ken Fowler says. “Picture this as a mini-Okanagan. It’s a 25-year project.”

The plans will begin with up to 50 new large residential mountain view lots north of the current development and eventually encompass a relocation of the existing public hot pools, an expansion of the main hotel, a doubling of the resort’s ski area’s vertical to just under 2,000 feet, construction of a high-end hotel and spa, condominiums and residences, changes to the golf course, creation of an upper village centre and development of a commercial and community hub with an indoor-outdoor water park at the resort’s main entrance from Hwy 93.

“This mountain village is going to be unique and very much atuned, like a Whistler. It’s going to become a healthy-sized community,” Fowler said. “Picture 4,000 to 5,000 doors, I would say.”

© The Vancouver Sun 2007

 

Wireless devices open new territory for ID theft

Tuesday, December 4th, 2007

Darcy Keith
Sun

Bluetooth headsets are appealing because of their ease of use – but they pose security risks.

When gadgets want to speak to each other these days, they can do it in secret.

Bluetooth, a wireless technology that connects all manner of electronic devices, has become ubiquitous in our daily lives and has made life more convenient and less cluttered.

But this no-wires-attached world has cybercriminals plotting to listen in. They are ready to turn it into a pathway to your bank account or other sensitive information.

Bluetooth has taken a big bite out of the global wireless market in recent years, with an increasing number of consumer products using the short-range radio frequency technology.

Providing a life free of annoying wires and cords, Bluetooth is available on everything now from desktops, printers and automobiles to cellphones, personal digital assistants (PDAs) and mobile computers.

Just look around, and you will probably find someone talking on one of those headsets with the blinking bright blue LED light — the telltale sign of a mobile phone that doesn’t require any hand-holding thanks to Bluetooth.

But as the popularity of Bluetooth increases, so does its interest to identity thieves hungry to get personal information either being transmitted online or stored on your mobile device.

Many security issues involving Bluetooth centre around mobile devices, such as cellphones and PDAs, in part because they can now hold a great deal of this sensitive information.

“Mobile device security in general, in my opinion, isn’t really getting an appropriate amount of attention,” Ollie Whitehouse, security response researcher for Symantec Corp., the world’s biggest security software maker, said in an interview from London. “There are people downloading more sensitive information to mobile devices that may have things like their credit card numbers. However, people rarely treat them with the same respect, or as seriously, as say their house keys. Yet potentially the data on the device is just as important, and the impact of losing it and misuse is potentially just as high.”

Security threats to Bluetooth emerged a few years ago, and it didn’t take long for the attack jargon to arrive. There is Bluesnarfing, which involves secretly obtaining sensitive information such as address books and e-mail from user devices; Bluejacking (also known as Bluespamming), where an unauthorized individual sends a text message or file anonymously from one Bluetooth device to another, and Bluebugging, or the theft of mobile-phone commands using Bluetooth technology without notifying the device owner.

Bluebugging is a key concern because it allows the hacker to do such things as initiate phone calls, send and receive text messages, eavesdrop on phone conversations and connect to the Internet. Imagine if a hacker sends a text message warning of a bomb threat, and it looks as though the sender was you. There is even the potential for an intruder to place a virus on your handheld device, wreaking the same kind of havoc it would have on your computer.

But Mike Haro, senior security analyst with IT security company Sophos, notes that the security threat arising from Bluetooth use in cellphones and PDAs is still at the “proof of concept stage.” Actual cases of identity theft have been hard to find.

“Everything we’ve seen to date has been examples of ways in which Bluetooth can be exploited or how any infection could be spread via handset. . . . We haven’t seen anything that’s actually been largely propagated in the real world.”

To reduce your risk of identity theft, experts recommend turning off the “discoverable” mode of your Bluetooth cellphone or PDA, which sends a signal indicating it’s looking to pair with another Bluetooth gadget to transmit data. When left on, an attacker could detect the signal and attempt to pair with your device for the purpose of stealing your personal identification number. That’s when the real troubles begin, because with that PIN in hand, that attacker could retrieve all sorts of stored information.

To further minimize your risk, it’s recommended that you use a good PIN code, at least five digits long, that’s harder to crack. And perhaps more simple yet, avoid storing sensitive data such as your social security and credit card numbers.

© The Vancouver Sun 2007

How to avoid being a victim of Internet fraud schemes

Tuesday, December 4th, 2007

Danny Bradbury
Sun

The e-mails began to arrive just hours after the collapse of the World Trade Center, says Audri Lanford, the Internet entrepreneur and operator of online scam awareness site scambusters.org. The events of Sept. 11, 2001, changed the world in ways large and small, and one was evident in the kind of the mail that started flooding Lanford’s inbox in the wake of the terrorist attacks.

“We started to see e-mails asking people to help the victims, and of course they asked people to go to a page and contribute,” she says. “What they really wanted was your bank or credit card information so that they could steal your identity.”

With over a billion people online and the numbers growing daily, there is no end of fraudsters eager to part good-hearted people from their money. E-mails like those that followed the 9/11 attacks now appear after every major disaster. The Katrina hurricane and the 2005 Asian tsunami each spurred fraud artists into action aiming to capitalize on the misfortunes of others.

But online scams try to exploit more than human misery, says Susan Grant, director of the U.S. National Consumers League’s fraud centre. “All scams can be put into certain categories,” she says. “Many offer ways to win money, earn money, or save money. The ‘win money’ ones — the bogus lotteries and sweepstakes — are very popular year-round.”

You might never fall for an e-mail from someone you don’t know asking you to enter a competition. But other common e-mails might well fool you if you’re not prepared. The Internet may be evolving at breakneck speed, but scams rely on aspects of the human psyche that will never change.

THE ADVANCE FEE SCAM

This scam shows up in various guises, but the most common is the 419 scam, often originating in Nigeria and named after the section of that country’s criminal code that deals with obtaining money under false pretenses. The scammer claims to have information about a sizeable fortune, but for some reason needs a third party — the victim — to access it in return for a portion of the cash. If the victim agrees, the scammer begins asking for money to overcome small obstacles such as bribing officials and paying transfer fees. “They will keep going until you stop paying,” Lanford says.

Protective measure: Common sense. If a deal is too good to be true, then it isn’t.

AUCTION FRAUD

Mainly perpetrated via eBay because of the site’s popularity, auction fraud comes in many forms. Escrow fraud is one of the most common. The scammer either wins a bid on an item or auctions a high-value item of their own that doesn’t exist. They then ask the victim to send goods or payment to an escrow company that will hold it until the scammer fulfils their part of the bargain, ensuring that both parties are satisfied. In reality, the escrow company address is operated by the scammer, and as soon as the victim’s assets reach their destination, they disappear along with the fraudster.

Protective measure: Education. Read eBay’s anti-fraud pages at http://pages.ebay.ca/securitycentre/avoiding_fraud.html. Don’t ever settle a deal by transacting outside the auction service.

STOCK SCAMS

Ever received an e-mail offering a hot stock tip? Don’t be fooled. Scammers choose a company with stock traded on low value ‘microscap‘ exchanges, and send out hundreds of thousands of spam e-mails predicting a rise in value. If even a small percentage of those victims fall for the scam and purchase shares, it forces the price up. The scammer, who purchased stock before the ruse began, now sells it off at a huge profit. The price falls and the victims lose out.

Protective measure: Invest wisely. If you’re following stock tips from unknown individuals about unknown companies, you’re in the wrong business.

PHISHING

Scammers send e-mails to the victim pretending to be from a well-known company with online access, such as a bank or online retailer.

The mail uses a ruse such as a security check to persuade victims to visit a linked website and enter their account details. The site is owned by the scammer and tailored to look like the company’s real site. The customer’s information (which may include credit card details) is then used to access real accounts and steal assets.

As consumers get wise to this scam, criminals are refining it, sending out fewer e-mails containing well-researched individual information about the target victim, such as first name and company name.

This technique, called ‘spearphishing‘, can dupe victims who already may be aware of phishing fraud.

Protective measure: Invest in a tool such as McAfee’s SiteAdvisor, which warns you if a site you’re surfing to is a known phishing site.

Reputable online sites never send such e-mails.

WORK AT HOME

Often appealing to stay-at-home mothers, such scams are particularly distasteful because they can incriminate the victim. A common version is the reshipping scam, where the scammer asks the target to transfer goods or funds overseas on a fictional company’s behalf.

The assets are normally obtained via another scam.

For example, “the scammer buys goods with stolen credit cards and has the goods shipped to the victim because many vendors won’t ship internationally,” says Grant.

Some victims are asked to take funds transferred from another bank account to theirs, shipping it to the scammer via Western Union.

The victim acts as a money mule for funds that have been stolen by phishing or other fraudulent activity, and will be the first (and possibly only) port of call for law enforcement.

Protective measure: Use your head. Treat any get-rich-quick schemes with healthy skepticism.

 

© The Vancouver Sun 2007

 

Construction costs continue to rise

Tuesday, December 4th, 2007

Fewer homes being built or fixed up, but labour is more expensive

Derrick Penner
Sun

British Columbians spent more building or fixing up homes in the third quarter of 2007, but mostly because it is more expensive to build and not because they are building more, according to Statistics Canada.

Statistics Canada reported Monday that B.C. saw $3.8 billion spent on residential construction investment in the third quarter, an increase of 11.2 per cent from the same quarter a year ago.

Spending is heading up in all three components of that $3.8 billion figure, Statistics Canada analyst Etienne Saint-Pierre said.

Renovations spending in B.C. rose the quickest, with $1.3 billion spent in the quarter representing an 18.4-per-cent increase. Acquisition costs, which accounts for taxes, insurance and other purchase fees rose 12.5 per cent to $398.6 million.

Spending to build new homes also rose seven per cent to $2.1 billion, but Saint-Pierre added that when inflation in construction prices is factored out, the amount of actual building that took place shrunk by 1.8 per cent compared with the same quarter of 2006.

“That means a significant amount of the increase in investment [the report] shows is mostly related to the price for building new,” Saint-Pierre said.

And the inflation factor driving up the investment amount isn’t just a B.C. phenomenon.

Statistics Canada said residential-construction investment nationally hit a record $24.3 billion in the third quarter, up nine per cent over the third quarter of 2006, its report added that “rising levels of investments for new housing were largely brought about by significant cost increases.”

In the Lower Mainland, builder Gary Friend has watched land prices ratchet up, prices for building materials have risen and don’t seem to be coming down although house construction in the United States has fallen dramatically.

However, for Friend and other builders, labour remains the biggest culprit in rising construction costs.

Depending on which component of the building he is trying to price, Friend said he builds in an inflation factor of between 10 and 20 per cent per year to secure the overworked tradespeople he needs.

“The good, skilled people I have are all overworked,” Friend said. “So unless I make it monetarily very fruitful for them, they say, ‘What’s the point? I’m tired, I don’t get any holidays, my wife’s mad at me, so why do I care if you pay me more?’ “

He added that his bankers include an appraisal of what costs per square foot of construction should be in the construction loans that they approve, but meeting those budgets “is a constant challenge.”

The stress of rising costs has created some obvious casualties in the regional market, such as 32 pre-sale buyers in Coquitlam’s Riverbend project who had their contracts cancelled because their developer said inflation pushed costs way over initial pre-sale prices.

Friend added that buyers are facing increasing degrees of sticker shock as he raises prices between one phase of a development and the next, although they may be the same types of units.

“My building hasn’t changed in quality or size, how do I justify that [higher price]?” he added. “If you look at the marketplace, you are not seeing dramatic increases in wages in other sectors as you are in construction.

© The Vancouver Sun 2007

 

Divorcing your cellphone doesn’t have to cost a mint

Tuesday, December 4th, 2007

A new website matches restless users with people who want to buy their existing contracts

Gillian Shaw
Sun

When Bijan Shahrokhi heard Apple’s new iPhone was coming out he decided as soon as it reached Canada he would get one.

But between him and the iPhone was the small but pricey matter of two-years-plus left in a cellphone contract that would cost him hundreds of dollars to get out of before he could sign up with Rogers, the network the iPhone would use if it came to Canada.

The dilemma led the University of Toronto electrical engineering grad to launch CellClients.com, a brokerage site that brings together buyers and sellers of cellphone contracts.

It gives customers like Shahrokhi — who want to escape their long-term contracts — a way out. And it offers buyers a chance to pick up contracts that may have better terms than current ones. Sometimes phones and even cash incentives are thrown in.

Shahrokhi sees it as a win-win-win situation. Disgruntled customers get to leave without incurring the full financial penalty of breaking a cellphone contract. Buyers get to pick and choose the best offerings. And mobile phone carriers get a new customer instead of simply losing an upset one.

“It is actually permitted by the wireless providers and it is beneficial to them because we help them replace an unhappy customer with a happy customer,” said Shahrokhi. “The benefits of getting out of a cellphone contract are clear. On average it costs people $400 to get out of their contracts — that’s based on the average number of remaining months when contracts are cancelled which is 20 based on our statistics and client surveys.

“And if you are buying it, you receive free activation, a free SIM [subscriber identity module] card, and a free cellphone handset.”

The website also offers an interesting demonstration of the widely varying rates people are paying for cellphone service. For example, on CellClients.com you can choose from a plan with 200 weekday minutes and unlimited early nights and weekends for $25 a month — or you pay $60 a month to get only 150 weekday minutes and unlimited evenings and weekends. It would take a spread sheet analysis to compare the pluses and minuses.

If you want to spend $50 a month, you can choose plans ranging from 150 weekday minutes to 1,000 minutes. Like the carrier offerings, the contacts being sold represent a range of features and limitations so buyers have to figure out for themselves if it’s a good deal.

But at a time when the Canadian government has announced it is opening up the wireless market to increased competition starting in 2008, price and service discrepancies are going to become increasingly important to consumers here who are already paying rates among the highest in the world.

On CellClients.com sellers who have less popular contracts, phone models that no one wants or a very long time left on a contract, must spice up their offerings with cash incentives.

“Sellers will say, ‘I’ll give you $100 to get out of my contract,’ ” Shahrokhi said.

Potential buyers e-mail the seller if they are interested in a particular contract offering and the sellers then pay CellClients.com a one-time fee of $14.90 to unlock their mailbox and read the messages.

Once they unlock their messages, it is up to the seller to get in touch with the buyer and agree on terms.

“All they need to do is call the provider and let them know they want to transfer the ownership,” said Shahrokhi. “The provider does a credit check with the new customer and then the buyer takes over the contract.”

Terms and conditions may vary with the carrier and the contract, but generally speaking and depending on the type of contract, carriers don’t prohibit such transfers.

Shawn Hall, spokesman for Telus, said that company’s cellphone contract can be transferred subject to a successful credit check on the new subscriber. The new subscriber must also agree to terms and conditions of the contract, along with paying a small fee.

Rebecca Catley, representing Rogers, said transferring a Rogers account from one individual to another is a legal ownership change requiring consent from both parties and a credit check of the new account holder. Outstanding balances at the time of transfer remain the liability of the account holder under whom the charges were incurred. She said some contracts allow for transfer of ownership and some not. For example, plans designed for a particular business couldn’t be transferred to an individual.

Shahrokhi’s site has been running for 31/2 months and it just passed the 1,000 active member mark. Some 250 contracts have been transferred through the site.

As for Shahrokhi, he’s still waiting for the iPhone to reach Canada and then his cellphone contract will be up for grabs.

THE GREAT CONTRACT ESCAPE

You can get out of that cellphone contract by selling it, and you can get into a shorter-term contract by buying one with only part of the time remaining on it. Here are some examples of what’s for sale on CellClients.com.

(For space reasons, not all the details of these example offers are included. Some plans, such as the Telus example, included features such as text messaging and voice mail not shown here.)

 

© The Vancouver Sun 2007

 

Assessment under way of land swap between Whitecaps, port authority

Tuesday, December 4th, 2007

Lora Grindlay
Province

An independent financial assessment is under way of a land swap between the Vancouver Whitecaps and the Vancouver Port Authority to make way for a $75-million waterfront stadium.

Port authority spokeswoman Anne McMullin said it could take months to determine whether the land exchange proposed by the soccer team is of “comparable market value” and to determine whether land obtained by the authority can be used for shipping and navigation purposes. Both factors are required by federal legislation, she said.

The exchange involves Whitecaps-owned land over rail yards along Waterfront Road and vacant port land close to the Helijet terminal.

McMullin said any deal would have to be approved by Transport Canada.

The proposed stadium was on the table yesterday in a meeting between Vancouver Mayor Sam Sullivan and Transport and Infrastructure Minister Lawrence Cannon in Ottawa.

‘Caps president Bob Lenarduzzi was encouraged that the stadium was a topic of discussion in Ottawa.

“It is frustrating that it has taken this long but we have another meeting with [the authority] this week and we hope to make some headway at that time.”

Discussions between the city and the Whitecaps regarding a new stadium began in January 2003.

Once a location and an agreement with the port authority is finalized, the team faces a rezoning and development process with the city that could take up to 18 months.

“Our desire, our hope is that it would take far less than that,” Lenarduzzi said.

Timing is important, Lenarduzzi said, if the ‘Caps have a hope of clinching a Major League Soccer expansion franchise.

“There are a number of cities that are in the mix right now, us being one of them, but without having a confirmation of our venue we wouldn’t be in the mix,” he said.

© The Vancouver Province 2007

 

Proposed GST/HST Rate Reduction in 2008

Tuesday, December 4th, 2007

Other

Proposed GST/HST Rate Reduction in 2008

Tuesday, December 4th, 2007

Other

On October 30, 2007, the Government of Canada announced a reduction in the GST rate from 6% to 5%, effective January 1, 2008. This follows a reduction a year ago from 7% to 6%.

There are a number of transition rules for GST as it relates to real estate. We have attempted to simplify those rules below. For a full explanation, please visit the information bulletin published by the Federal Government, which can be found at http://www.cra-arc.gc.ca/E/pub/gi/notice226/README.html

Remember that GST only applies to the purchase of a new or substantially renovated property. If the property is a used residential property, there is no GST payable.

There are 3 different situations, depending when the Contract of Purchase and Sale (the “Contract”) was signed.

1. If the Contract is dated between Oct. 31, 2007 and December 31, 2007, and ownership and possession are transferred on or after January 1, 2008, GST is paid at 5%.

2. If the Contract is dated between May 3, 2006 and Oct. 31, 2007, and ownership and possession are transferred on or after January 1, 2008, GST is paid at 6%. The clients are eligible for a 2008 GST Transitional Rebate for the 1% GST, and this rebate is applied for after closing.

3. If the Contract is dated prior to May 3, 2006, and ownership and possession are transferred on or after January 1, 2008, GST is paid at 7%. The clients are eligible for GST Transitional Rebates to account for both the 2006 reduction and the 2008 reduction, and these rebates are applied for after closing.

GST Transitional Rebate

To claim the GST Transitional rebate for the 2008 GST rate reduction, the 2006 GST rate reduction, or both, the person purchasing a new or substantially renovated residential complex must send a completed application form together with a copy of the contract, the Statement of Adjustments and, if applicable, a copy of the GST new housing rebate or new residential rental property rebate to the CRA.

Form GST193, GST/HST Transitional Rebate Application for Purchasers of New Housing, can be used to claim the transitional rebate in respect of the 2006 GST/HST rate reduction. This application form will be revised to also include the transitional rebate for the 2008 GST rate reduction. The revised application form will be available on the CRA Web site or by calling 1-800-959-2221.

The GST/HST 2008 transitional rebate can only be claimed in 2008 after all of the conditions for claiming are met. For example, a person may only claim a transitional rebate after both ownership and possession of a new residential complex are transferred to the person. Generally, a transitional rebate application and the required documents must be sent to the CRA within two years after the day ownership of the residential complex is transferred to the person. Remember, the GST transitional rebate is not conditional on receiving a new housing rebate, nor is it subject to any maximum purchase or fair market value limitation.

The Federal Government has published the following tables to help illustrate the transitional rules for purchases of new or substantially renovated residential complexes from a builder.

Purchase and sale agreement entered into before May 3, 2006

Ownership transferred

Possession transferred

Rate of tax

2006
transitional rebate

2008
transitional rebate

Before July 1, 2006

Before July 1, 2006

7%

No

No

Before July 1, 2006

After June 30, 2006

7%

No

No

After June 30, 2006

Before July 1, 2006

7%

No

No

After June 30, 2006 and before January 1, 2008

After June 30, 2006 and before January 1, 2008

7%

Yes

No

After June 30, 2006 and before January 1, 2008

After December 31, 2007

7%

Yes

No

After December 31, 2007

After June 30, 2006 and before January 1, 2008

7%

Yes

No

After December 31, 2007

After December 31, 2007

7%

Yes

Yes

Purchase and sale agreement entered into after May 2, 2006 and before October 31, 2007

Ownership transferred

Possession transferred

Rate of tax

2006
transitional rebate

2008
transitional rebate

Before July 1, 2006

Before July 1, 2006

7%

No

No

Before July 1, 2006

After June 30, 2006

7%

No

No

After June 30, 2006

Before July 1, 2006

7%

No

No

After June 30, 2006 and before January 1, 2008

After June 30, 2006 and before January 1, 2008

6%

No

No

After June 30, 2006 and before January 1, 2008

After December 31, 2007

6%

No

No

After December 31, 2007

After June 30, 2006 and before January 1, 2008

6%

No

No

After December 31, 2007

After December 31, 2007

6%

No

Yes

Purchase and sale agreement entered into after October 30, 2007

Ownership transferred

Possession transferred

Rate of tax

2006
transitional rebate

2008
transitional rebate

Before January 1, 2008

Before January 1, 2008

6%

No

No

Before January 1, 2008

After December 31, 2007

6%

No

No

After December 31, 2007

Before January 1, 2008

6%

No

No

After December 31, 2007

After December 31, 2007

5%

No

No

 

Conventional Wisdom

Monday, December 3rd, 2007

Peter Mitham
Other

image/photo:Paul Joseph

Comments in a study of off-site venues produced by Tourism Vancouver this past February were clear. The city’s lack of off-site venues was described variously as falling short of world-class status, “lacking in quantity, quality and diversity for groups over 250,” and, in the words of one veteran event planner with 14 years’ experience, “one of our greatest challenges in selling Vancouver.”

It seems Vancouver does not have what its competitors Montreal, Toronto, San Diego and Seattle have to offer, and meeting planners and tourism officials alike agree that the need for more venues is vital to Vancouver’s development as a destination for conventions.

“When conventions come to town, people don’t want to spend their entire week in one building, no matter how glorious it is. They want to get out of the building,” explains David Clark, president of BC Event Management Inc. in North Vancouver.

Clark has organized events for everyone from Canadian Auto Workers union members to Queen Elizabeth II cruisers, and he notes that there’s a general shortage of facilities. The shortage is even more acute at the upper end of the spectrum – say, for groups of 2,000 people or more.

Clark has organized banquets at BC Place Stadium in the past, but a stadium is not always appropriate.

The situation to date: Most local meeting planners say they welcome the convention centre’s expansion because it increases the options in a market that’s especially short of meeting space in spring and fall, when venues such as BC Place enjoy steady bookings. By midsummer the expanded convention centre had landed 29 bookings above and beyond what the original convention centre could have accommodated, for a total of 54 conventions through 2011. Not bad, but observers say 80 to 90 future bookings are needed through 2015 for the centre to meet growing demands for its success. Rising construction costs – the latest figure is $883 million, well above initial estimates of $495 million – have only raised political and economic demands for the centre’s success. The upshot? We need more off-site venues.

“When conventions come to town, people don’t want to spend their entire week in one building, no matter how glorious it is. They want to get out” — David Clark

The loss of Storyeum in Gastown has only accentuated the shortage. Newer venues such as the Rocky Mountaineer rail station on the False Creek Flats and planned developments at Grouse Mountain, the Vancouver Aquarium, the UBC Museum of Anthropology and other attractions are relatively small compared to what’s needed.
Richard Yore, director of meeting and convention sales for Tourism Vancouver, admits that the city has lost business for lack of appropriate venues. There just aren’t enough of them, he says, “or we don’t have venues that are large enough, or [they] are too expensive.”

There is one glimmer of hope. The major sporting venues being built for the 2010 Olympics Winter Games promise to introduce much-needed event space to the market. “Vancouver is quite shy of venues for larger-scale programs, and the size of a number of these facilities will really assist us as we look to attract future business to Vancouver,” says Jonathan Buchwald, president of Vancouver planning firm Prime Strategies Inc. “The development of Olympic venues is really going to be beneficial for the event and conference industry.”

The most obvious example is the Richmond Oval, a 356,000-square-foot ice rink being built at a cost of $178 million. It will host speed-skating events during the Olympics and will be used for community-sports and fitness programming afterward. It is touted in city documents as a potential venue for major sporting events, exhibitions and conventions.

“It’s a nice, big clear-span building. That’s the one I really have on my radar screen,” Clark says, noting that it will be ideal for banquets feeding upwards of 2,500. “That’s exactly what we need. I don’t have a booking there yet, but I’m starting to put it in proposals to potential conventions.”

There’s also the Thunderbird Winter Sports Centre at UBC, which is undergoing a $47-million expansion to serve as a venue for ice hockey and ice sledge hockey in 2010. UBC hopes the 5,200-seat centre will attract trade shows, concerts and other events when it’s not being used for sporting events.

“It provides a venue for shows where they don’t have to black out half of GM Place because it’s too big,” says Joe Redmond, former VP for UBC Properties Trust, who continues to provide consulting services for the arena project.

Undercutting anticipation of the business opportunities to be had is a lack of certainty about the actual availability of the venues after the Olympics. While operators tout the value of the projects as community legacies, the marketing of those legacies is stymied because no one, it seems, is sure what portion of the facilities will be available post-2010.

“The decision of what they’re going to be using these venues for later on, in some cases, is up in the air, or it’s just in [the] development stage right now,” Yore says.
The Richmond Oval is a case in point.

“They’re talking about using it as a community centre,” Yore says. “[But] there’s a certain unknown quantity about what you can do in the Richmond Oval. What will the food and beverage catering facilities be?”

Many event organizers want to see facilities before they book activities… especially if the venues were designed to host activities other than conventions and cocktail parties

Definitive answers aren’t yet available, says Gerry De Cicco, the Richmond Oval’s sports business manager. He is drafting a strategy for the facility post-2010 and identifying potential users. A full-blown marketing campaign has yet to be rolled out.
De Cicco calls for patience. A number of special events will showcase the building when it opens next year. De Cicco says they will demonstrate the building’s potential, generating interest in using the facility as a venue. While interest among event planners is already strong, De Cicco has received no formal inquiries yet for its use for non-sporting events after 2010. The marketing plans for UBC’s Winter Sports Centre are in an equally embryonic stage. UBC Athletics will be responsible for taking bookings, but staff did not return a call for comment on marketing plans.

“I suspect at some point people will be made aware that this venue is available,” Redmond says, adding that he isn’t aware of any efforts to work with Tourism Vancouver to book events.

“I don’t think they’ve even thought of it at this point. It’s just too far away [from 2010],” he says.

A higher profile will be essential for venues to attract interest. Many event organizers want to see facilities before they book activities, Yore says, especially if the venues were designed to host activities other than conventions and cocktail parties. Meeting planners, he says, are hesitant to book in sporting venues.

“It’s also further down in the booking cycle,” he adds. “[Organizers] first decide on the city, book the convention centre, and then you later book the hotels and start looking at social venues as well.”

And so the discussion returns to the convention centre, and the promise the expansion holds of greater convention business for Vancouver. After all, the off-site venues aren’t needed if there’s no convention business, but then, there’s no convention business without exciting off-site venues; one can’t survive without the other.

It’s a point Yore says lost business has made painfully clear. While he doesn’t want to see more opportunities slip by, he knows Vancouver has to get its game face on.
“[Planners] have said we’ll wait till after 2010 when these venues are built, and then we’ll consider you again. Does that mean we’ll win it? Who knows.”