2014 annual report
Calgary Economic Development · 2014 Annual Report · 01 2014 Accomplishments at a Glance
WORKFORCE DEVELOPMENT MAJOR INITIATIVES building capacity by attracting long-term solutions and retaining the best and brightest PROMOTING CALGARY for economic growth changing national and
BUSINESS TRADE & DEVELOPMENT international perceptions of Calgary Calgary Film Centre helping organizations to relocate, secured funding and broke Developed the Calgary Connector ground to build a 50,000 stay, expand, or invest in Calgary Program with Bow Valley College The Calgary. Be Part of the Energy. campaign had 42 million square foot purpose- and the Calgary Regional Immigrant impressions, and generated 45 national and regional media stories. built studio. Employment Council to help immigrant professionals and Took the Mayor on two speaking 300,000 copies of Life in recent graduates build their WORKshift has now been We helped 23 organizations with their decision to tours that included 13 events in five Calgary magazine were networks. rolled out in cities across cities where he shared Calgary’s distributed across Canada relocate, stay, expand, or invest in Calgary. story with over 4,000 people. and Ireland. Canada, including Halifax, Ottawa, the Greater Toronto These companies created 2,379 jobs and will LifeinCalgary.ca website launched and Hamilton Area, occupy 2.7 million square feet. 7 best practice and and Calgary. round table events hosted with local and internationally WEBSITE HITS MEDIA HITS MARKETING 5 major film projects and over 2nd Annual Stampede over 420,000 visits 1,392 stories, nearly AWARDS Building on our Energy: $160 million in film, television, Investment Forum welcomed acclaimed double 2013, valued 17 industry and and commercial projects. 40 highly targeted investment at $1.7 million international the Economic Strategy for Calgary Travelled with 10 speakers. marketing awards was unanimously approved by professionals representing 26 companies from 13 countries. companies on a labour City Council and has wide attraction mission to Ireland FACEBOOK TWITTER INSTAGRAM community support. over 19,000 followers, over 6500 followers, launched 2 outbound missions to Asia and England, where 50 nearly double last year more than double @LifeinCalgary and Europe, with stops in Japan, highly skilled workers last year 16 national and international The Careers in Taiwan, Belgium, Luxembourg, were hired. Germany, and the United Kingdom. delegations from Canada, the Manufacturing 10 companies used the short- United States, Mexico, and the program facilitated term office space in the Global Netherlands. 14 student tours. Business Centre (GBC). Of the 30 organizations that have used the GBC in the past five years, 20 have gone on to set up more permanent offices in Calgary.
02 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 03 Economic Strategy Leadership Implementation Team
Business Development Advisory Committee
Calgary Housing ADVISORY COMMITTEES Options and Markets Commercial Real Estate RESEARCH collaborating to build Advisory Committee a healthier community Logistics Advisory understanding how Committee
Canadian attitudes about Many of our Action Calgary and Calgary Works industry partners participate on our Calgary are shifting EVENTS Manufacturing eight advisory committees. These Advisory Committee community leaders discuss issues, We conducted perceptions research to create solutions, and promote Careers in MEDIA & INDUSTRY FAMILIARIZATION engagement through understand if our marketing is working Calgary’s purposeful diversification Manufacturing and Canadian attitudes were shifting. business, economic, and sustainable growth. tours hosting media and Almost 40 per cent had improved perceptions and community events key decision makers • • Improved perceptions were driven by what friends and family living in Calgary say, the FUNDING SOURCES job opportunities, and Mayor Nenshi The Global Business Centre hosted 101 business networking and educational events. Hosted trade media from • Our cultural assets and amenities continue to government and private sector support Transportation and Logistics have low awareness publications, generating over of economic development efforts $800,000 in coverage. 8 signature events reached over 7,300 people, including Report to the Community, Economic Outlook, Soul of the City speaker 2014 Facilitated 661 series, and First Flip. research inquiries, $4,785,137 up 8.5% from City of Calgary base grant 2013. $259,495 Deferred contributions Hosted 7 location scouts and Soul of the City speaker series looks at $18,179 producers. HBO Mini Series placemaking to continue the discussion about Investment Lewis & Clark is set to start what makes Calgary a great place to live. filming in 2015. Updated profiles for the $322,959 Leveraged revenue from energy and finance This year, the inaugural Neighbour Grant with $1,948,613 other orders of government sectors. Leveraged revenue from the private sector The Calgary Foundation granted 5 community (Action Calgary, sponsorship, other) total revenue $7,334,383 projects $5,000 each.
2013
$4,780,279 City of Calgary base grant $377,231 Deferred contributions
$17,715 Investment $1,113,272 Leveraged revenue from $1,512,736 other orders of government Leveraged revenue from the private sector (Action Calgary, sponsorship, other) total revenue $7,801,233
04 · 2014 Annual Report · Calgary Economic Development Message from the President and Chair 24
Looking back at the last year, it feels like there are two economies. The first Three years after launching the Calgary. Be Part of the Energy. campaign, three quarters was a strong, growing and robust economy as the price of oil we conducted perception research to understand if Canadians’ views 08 29 sat around $100/bbl, the labour market continued to be tight and Calgary on Calgary as a destination to live, work, and make a life have changed. was the envy of the country. The last quarter saw the price of oil start to fall Perceptions saw a marked improvement over the last few years. While the and our confidence began to waiver. business opportunity and sense of community are clearly understood, an opportunity to spread the word about our cultural experiences remains. As we look at the last year, and further out to 2015 and beyond, it’s Our national marketing campaign continues to be a strong platform and important to look not only at the absolute numbers, but to keep our results call to action for inviting people and businesses to thrive in Calgary. within the context of the economic environment across Canada and around the world. We must consider the historical cyclical nature of the Calgary Our Business Trade & Development team continued to connect businesses economy and our proven entrepreneurial ingenuity and can-do spirit. with opportunities for trade and investment. We helped 23 organizations with their decision to relocate, stay, expand, or invest in Calgary. These 14 Last year will be remembered within Calgary Economic Development companies created 2,379 jobs and will occupy 2.7 million square feet of as a year of major milestones for many initiatives. After two years of space in our region. engagement with hundreds of community members to refresh Building on our Energy: the Economic Strategy for Calgary, the strategy received As we face some economic challenges, Calgary Economic Development unanimous support from City Council. This community-wide strategy is will continue to engage the Calgary business community and all orders meant to guide our organization, civic partners, The City, post-secondaries, of government to maximize opportunities for Calgary. With the Economic and other community partners in both the good times and bad. It brings Strategy completed and a commitment to better collaboration in place, together a leadership and implementation team to achieve purposeful Calgary Economic Development will continue to steward the Leadership 50 diversification, embrace shared prosperity, and build a strong community. Implementation Team to be nimble and adaptive to best serve the community. After much anticipation, ground was broken on the Calgary Film Centre, an initiative our team has worked on for the past ten years. Scheduled to open On behalf of the Board and staff, our thanks to Mayor Nenshi and the in early 2016, the Film Centre will provide thousands of Calgarians a place members of Calgary City Council for their continued support of our to hone their industry skills, allow the city to better compete for screen- initiatives. We look forward to collaborating with our Action Calgary 22 based production globally, and continue to diversify the Alberta economy. partners, promotional partners, advisory committees, and all Calgarians. We will continue to serve our community as a conduit, connector, catalyst, and The Calgary-born WORKshift program that supports flexible work storyteller, working to advance sustainable growth and opportunities for all arrangements – that focus on results and enable people to work where, Calgarians. when, and how they are most effective - expanded to other jurisdictions across Canada. WORKshift added 14 municipalities in the Greater Toronto 07 Letter from the President & CEO and Chariman of the Board and Hamilton Area to the cities of Calgary, Halifax and Ottawa that have 09 A Message from Mayor Naheed Nenshi already adopted WORKshift. F. Bruce Graham Steve Allan 10 About Calgary Economic Development President & CEO Chairman of the Board 16 Action Calgary Corporate Partnership Program President & CEO President & CEO
18 Advisory Committees
22 Major Initiatives
28 Calgary. Be Part of the Energy. Campaign
36 Business Trade & Development Sector Overview table of 50 Events 52 Economic Overview
54 Financial Statements contents Calgary Economic Development · 2014 Annual Report · 07 A Message from Mayor Nenshi
On behalf of my City Council colleagues and the citizens of Calgary, I am to promote Calgary across the country and around the world, connect pleased to bring greetings to all of you reading the Calgary Economic businesses and government, influence decision making, and provide Development Annual Report. an unparalleled resource for research, industry experts, and business networking. After a long run of leading economic and population growth in Canada, Calgary has moved into a more challenging time. As we’ve proven many Now more than ever is the time we all need to continue to collaborate, times before, in the face adversity, there is a common optimistic spirit and pull up our collective bootstraps and work better together. As the lead energy that pulls us together to focus on overcoming obstacles. economic development organization for Calgary, I have confidence in the team and in the Board’s commitment and ability. I encourage you to engage The community-built Building on our Energy: the Economic Strategy in their activities and call on them for support as we navigate through the for Calgary, provides vision, sound strategies, and encourages better new economy together. collaboration and alignment with government, the private sector, and the community. As we look at the road ahead, our economic success will be Sincerely, grounded in our sense of community, commitment to share prosperity, and focus on sustainable development.
As stewards of Building on our Energy: the Economic Strategy for Calgary, Calgary Economic Development will continue to play a critical role in our city’s long-term economic and individual prosperity. They will continue Naheed K. Nenshi Mayor, City of Calgary
08 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 09 Calgary Economic Development’s Mandate
Calgary Economic Development works with business, government, and community partners to achieve sustainable economic growth, embrace shared prosperity, and build strong communities. Managed by an independent Board of Directors, Calgary Economic Development is a not- for-profit corporation funded by the City of Calgary, community partners, other orders of government, and the private sector through the Action Calgary program. As stewards of the 10-year Building on our Energy: the Economic Strategy for Calgary, Calgary Economic Development operates in accordance with the key objectives set out in the strategy and supports the leadership team responsible for the strategy’s implementation. Calgary Economic Calgary Economic Development is a conduit, connector, catalyst, and storyteller. We are opportunity makers, helping to spark and fuel the growth that makes Calgary an Development’s Mission economic engine. We nurture prospects and potential. We harness possibilities. And we support individual and business prosperity. We are connectors, linking business people with change makers: investors, advisors, We collaborate to advance opportunities for smart growth to achieve industry leaders, partners, and employees. We introduce companies to new locations, individual, business, and community potential for the Calgary Region. markets, and customers. And help new Calgarians meet mentors and employers – people who can help them find their place in our workforce and in our community. We are storytellers, getting to know Calgary and Calgarians, and sending our good news well beyond the city limits. We are a wealth of information. It’s our business to figure out what makes Calgary work. And it’s our job to share facts and resources freely with everyone who wonders why or who or how much. Like the city we serve, we’re collaborative, entrepreneurial, innovative, social, creative, and global. We are Calgary’s opportunity makers. As conduits, connectors, catalysts and storytellers, we help shape and share Calgary’s story. And we’re proud to be part of the energy.
010 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 011 Calgary Economic Development Calgary Economic Development is a conduit, connector, catalyst, We have sector specialists and storyteller. in the areas of:
CLEAN TECHNOLOGY As economic developers, we work on a variety of initiatives throughout & RENEWABLE ENERGY the year. While many of these initiatives have immediate activities and outcomes, the actual impact on a business or the community is often seen years after the initial engagement or interest in Calgary.
Calgary Economic Development’s job is to connect people with resources that can help them grow their careers or businesses, thrive in new locations or markets, and feel at home in our community. ENERGY TRANSPORTATION FINANCIAL & LOGISTICS SERVICES
Whether it’s a regional, national, • Business retention, expansion, and attraction or international business, we • Investment attraction facilitate access to Calgary and help existing Calgary-based • Real estate support businesses too. Our economic • Events and missions development services include: • Workforce development • Research and market data
REAL ESTATE FILM, TELEVISION & MANUFACTURING CREATIVE INDUSTRIES & PRODUCTIVITY
Our programs and initiatives • Building on our Energy: the Economic Strategy for Calgary support business and workforce • Calgary. Be Part of the Energy. campaign development, and position Calgary as the location of choice: • Global Business Centre • Calgary Film Centre • WORKshift • Action Calgary Partnership Program
012 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 013 Our People in 2014
With any organization, it is the people who truly make a difference in where the organization has been and where it is headed. That sentiment is very true at Calgary Economic Development. It is the commitment, passion, and energy of our Board, staff, Action Calgary partners, and advisory committee that enable Calgary Economic Development to play a key role in shaping and sharing Calgary’s story.
OUR BOARD MEMBERS OUR STAFF
Steve Allan, Hannes Kovac, Office of the Finance Marketing, Communications Chair OPUS Corporation President & CEO & Administration & Research
Leontine Atkins, Patricia McLeod, E. Bruce Graham Rick Tovell Mary Moran KPMG Lawyer & Corporate Director Karen Garrick Brian McClure Carol Thiessen Duncan Au, Brad Pierce, Deana Haley Chelsea Hallick CWC Well Services Corp Borden Ladner Gervais Business & Trade Dusko Galic Claire Griffin Development Eric Axford, Murray Sigler, Fern Lockwood Court Ellingson Suncor Axia Canada Gillian McCormack June Reid Jessica Whiting Alecia Peters Peter Demong Quincy Smith, Kareen Guilas Kate Bowering Councillor, Ward 14 Dentons Canada Bonnie Nunnari (from Jan – Sept) Ramzieh Khalil Katie Findlay Rollin Stanley, Jeanette Sutherland Shane Keating, Robyn Bews Lisa Corcoran City of Calgary Jeannette Castillo Councillor, Ward 12 Susan Turner Michele Helmeczi (joined in Sept) Kevin Zimmel, Megan Zimmerman RBC Royal Bank Susan Thompson Tom Hodson, Nelda Schulte Film, Television Kayla Pearcey (co-op student The Skyline Group Pamela Sellar & Creative Industries from Mount Royal University) Don Campbell, Rachel Yin Retired Transportation Luke Azevedo Tom Dixon & Finance Executive Lissa Craig Lulu Mazula
*Bold names represent our leadership team
014 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 015 PLATINUM
Thank You to Our Action Calgary Partners
GOLD The Action Calgary corporate partnership program engages Calgary business leaders to influence the movement of our economy. The thought leadership, and generous financial and in-kind support from this group of visionary Calgarians supports Calgary Economic Development in delivering award-winning initiatives and programs, driving economic and individual prosperity, and positioning Calgary on the global stage.
SILVER Action Calgary partners not only help us shape and share Calgary’s to tell their stories in local, national, and international media; connect story; they are a big part of Calgary’s story. Calgary Economic to incoming trade and investment delegation; and participate in Aecon Group Calgary Regional Partnership Glacier Media Group RedPoint Media Group Development approaches the Action Calgary program as a true labour, investment, and trade missions. Aspen Properties Calgary TELUS Convention Centre Gowlings Resorts of the Canadian Rockies partnership with a long-term relationship in mind. On behalf of the Board and staff at Calgary Economic Development, ATCO Group Cenovus Energy Joe Media Group RGO Office Products Over the past year, Action Calgary partners had first-in-line access for we would like to thank our Action Calgary partners for their visionary speaking and sponsorship opportunities at our signature events, and leadership, support, and participation in making Calgary’s energy felt Birchcliff Energy dmg events (Canada) KPMG SAIT Polytechnic the Soul of the City speaker series. Our partners had the opportunity across the country and around the world. Bow Valley College Enbridge Matco Developments Tarpon Energy Services
Brookfield Residential ENMAX Mount Royal University University of Calgary
Calgary Flames Hockey Club Evans Hunt Nexen Energy WestJet Airlines Action Calgary 2014 Action Calgary Revenue
partners provided 16% BRONZE Major events $1.5 million of 10% AXIA Supernet Cresa Calgary Kasian Stone-Olafson 12% Action Calgary funding in 2014 Bennett Jones LLP Dentons Lawson Projects Theatre Calgary Media program familiarization management BKDI Architects DIRTT Environmental PwC Trico Homes tours Burnet, Duckworth & Palmer LLP First Calgary Financial Quintaro Imaging YMCA Calgary
Calgary Folk Music Festival Glenbow Museum Shape Properties YYC Airport Authority
5% 53% Calgary Opera GlobalFest Sizeland Evans Interior Design V Strategies Workforce Calgary. Be Part of the development Energy. campaign Calgary Municipal Land Corporation HBI St. Mary’s University 4% Other activities
016 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 017 Thank You to all Our Committee Members BUSINESS DEVELOPMENT ADVISORY COMMITTEE
Shane Keating, Didier Luneau, Lino Luison, Stephan Poirier, City Council, Calgary Hotel Association Enbridge YYC Airport Authority Committee Co-Chair Bill Chomik, Jeff Bradshaw, Satvinder Flore, Many of our Action Calgary and industry partners participate on our eight advisory Ian Wild, Kasian Architects V Strategies AMEC Foster Wheeler ATB Financial Valerie Kinnear, Bill Whitelaw, Jeff Gaulin, committees. These community leaders congregate to discuss issues, create Donna Banks, Bissett School of Business, June Warren, Nickle’s Energy Canadian Association of CRESA Partners Mount Royal University Group / Glacier Media Petroleum Producers solutions, and advance opportunities that support purposeful diversification and Robin Penfold, Rajen R. Shah, Luciano Dalla, Head HSBC Bank Canada PwC Government of Alberta sustainable growth for Calgary. Their unwavering commitment helps direct Colleen Shepherd, Stephan Poirier, Denis Painchaud, Calgary Regional Partnership Calgary Airport Authority Nexen the organization in achieving the actions in Building on our Energy: the Economic Munir Patel, Regina Corrigan, Jim Dewald, Suncor Energy Inc. Gowlings Haskayne School of Business, University of Calgary Strategy for Calgary. Erhard Kiefer, Chris Carlsen, ATCO Ltd. & Canadian Birchcliff Energy Utilities Limited
ECONOMIC STRATEGY & LEADERSHIP IMPLEMENTATION TEAM MANUFACTURING ACTION COMMITTEE
Steve Allan, Erin Chrusch, Justin Riemer, Chester Nagy, Louis Keleman Jr., CAREERS IN MANUFACTURING COMMITTEE COMMERCIAL REAL ESTATE ADVISORY COMMITTEE Calgary Economic The City of Calgary Government of Alberta, Ministry Plains Fabrication Simo Corp Development Board of Directors of Innovation and Advanced Rollin Stanley, Ian Parker, Lori Kerr, Education Mel Svendsen, Garry Mihaichuk, Dr. Traj Nibber, Ralph Quinlan, Chris Ollenberger, Cindy Ady, The City of Calgary Standen’s GWM Resources Ltd. Advanced Orthomolecular Ab Mauri/Fleischmanns City of Calgary, Brookfield Properties QuantumPlace Developments Tourism Calgary Chris Heseltine, Research Development, Planning Scott Taylor, Rollin Stanley, Government of Alberta, Ministry Duane Hertzer, David Roberge, Chris Daklala, & Assessment Co-Chair Sarah Quayle, GWL Realty Advisors Rod McKay, The City of Calgary of Culture and Tourism Optima Manufacturing SAIT Polytechnic Alberto Sia Lu, Byblos Bakery City of Calgary, Office of Land Tourism Calgary Optima Manufacturing Scott Hutcheson, Serving & Housing (OLSH) David Routledge, Stuart Dalgleish, Lori Zaparniuk, Duane Macauley, Ray Mills Debra Cameron-Mackinnon, Aspen Properties Oxford Properties Peter Garrett, The City of Calgary Government of Alberta, Ministry Dynamic Source Manufacturing Bernadette Geronazzo, Westech Industrial Ltd. Scott Makin, Tim Hogan, Innovate Calgary of Jobs, Skills, Training and Blackline GPS Mac Logan, Mike Flynn, Exploration Plastics Bernard Callebaut, WAM Development Group Peter Stack, Michael Whitt, The City of Calgary Labour Apel Extrusions Brett Darikchuk, Papa Chocolat Cadillac Fairview Steve Mackisoc, Patricia Evans, Innovate Calgary Sandra Locke, Alta Injection Molding Brad Stevens, Dave Birkby, HC Piper Manufacturing Samantha Lamborn, Sizeland Evans Michael Nygren, Marcia Lyons, The City of Calgary Government of Alberta, Westbridge Chester Nagy, Enerflex Shape Properties Calgary TELUS Ministry of International and Tom McCaffery, Plains Fabrication Norm Landry, Convention Centre Diane Kenyon, Intergovernmental Relations Matko Papic, Government of Alberta Rys Kane, Lawson Projects Cody Clayton, University of Calgary Evans Consoles Julie Pithers, Ladacor Remington Development Tom Bornhorst, Jim Saunderson, Mike Holden, DIRTT Randy Kraft, Calgary TELUS Carole Simpson, Western Economic Philip Doublet, Canadian Manufacturers Elaine Cadrin, KPMG Steve Allan, Convention Centre Mount Royal University Diversification Nortruck Manufacturing and and Exporters John Simpson, CadCan Marketing & Sales Inc. Calgary Economic Development, Distribution Limited JSAI Cheryl Gottselig, Board of Directors Colleen Shepherd, Glenn Shepherd, Franco Savoia, Geoff Smolkin, Burnet, Duckworth & Palmer Calgary Regional Partnership SAIT Polytechnic Vibrant Communities Calgary Wendy Benson, West Coast Reduction Ltd Hannes Kovac, Standen’s Limited Damon Harmon, OPUS Group Bill Robertson, Val Hoey, Jeff Loomis, Lennie Lardeur, Cresa Partners Calgary Regional Partnership Bow Valley College Momentum Michael Bussoli, Calgary Italian Bakery Ltd Apparel Innovation Patti Pon, Wendy Lowe, Michael Brown, Pam Frey, Calgary Arts Development Ambrose University Calgary Municipal Adrian Bussoli, Government of Alberta, Land Corporation Alberta Garment Alberta Human Services Authority Thérèse Takacs, Dean Prodan, St. Mary’s University Adam Legge, Calgary Chamber Calgary Arts Development Lori Van Rooijen, Authority Alberta College of Art Stephan Poirier, LOGISTICS ADVISORY COMMITTEE CALGARY WORKS Chima Nkemdirim, and Design Calgary Airport Authority The City of Calgary Anita Fleming, Jonathan Moser, Ashu Gandhi, Bill Campbell, Intermodal Development Lafarge City of Calgary Sobey’s West Inc. Ben Smith, Keith Stanley, Carol Howes, Chris Thomas, Calgary Logistics Council YYC Cargo Operations Enform Canada Bizcon Group HOUSING OUTLOOK & MARKETING EXPLORATION (HOME) COMMITTEE Bill Bird, Peter Wallis, Lance Livingston, Heather DeBoer, WAM Developments The Van Horne Institute AECON Petroleum HR division of Enform
Trent Edwards, Roberto Geremia, Michael Brown, Guy Huntingford, Gail Sokolan, Bob Miller, Reg Johnston, Pat Firminger, Brian Thompson, Brookfield Residential Boardwalk Properties Calgary Municipal Land Urban Development City of Calgary, Office of Land Calgary Regional Partnership Calgary Regional Partnership Government of Alberta, SAIT Polytechnic Corporation (CMLC) Institute (UDI) Servicing & Housing (T&L Task Force Working Group) (T&L Task Force Working Group) Alberta Human Services Evelyn Cutts, Felicia Mutheardy, John Simpson, ATCO Group Canada Mortgage & Housing Jeff Dyer, Pat Firminger, Adam Legge, Chris Marko, Reg Reimche, Karen Chown, JSAI Company (CMHC) Accessible Housing Association Alberta Human Services Calgary Chamber of Commerce Hopewell Logistics Canadian Pacific Rail University of Calgary Georg Paffrath, Stu Boland Trico Homes Rollin Stanley, Amie Blanchette, Bob Miller, David Miles, Sean Day, Corrie Banks, City of Calgary, Development, Calgary Region Home Builders Calgary Regional Partnership CRESA Calgary Office Oxford Properties Triskele Logistics Ltd Iain McCorkindale, Planning & Assessment Association (CRHBA) (CRP) M2I / Matco Jim Brown, Corrie Banks, Herman Van Reekum, Matthias Tita, Alan Tennant, Jyoti Gondek, Co-Chair, JRSB Logistics Triskele Logistics VRV Global Per Hvidsten, City of Calgary, Local Calgary Real Estate Board Westman Centre for Real Estate Grosvenor Canada Area Planning (CREB) Studies at Haskayne
018 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 019 Focusing on sustainable growth, shared prosperity, and building a strong community
020 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 021 MAJOR INITIATIVES
In 2008, Calgary released the 10-year Economic As a result the Strategy has been renamed Building To ensure implementation is successful a Leadership Strategy for Calgary entitled: Think Big. Act on our Energy. The Strategy puts forward six en- and Implementation team has been formed with Bold. Create Great. Initiated in 2007, the Strategy ergies as our areas of focus: Global, Entrepreneurial, 25 leaders from the City, Provincial, and Federal was written when the wind was at our backs. Innovative, Community, People, and Collaborative. governments; other civic and community partners; Calgary was at the crest of one of the longest, most These areas of focus build on the strength of the and post-secondary institutes, all of whom have a significant economic expansions in our history. The energy sector and support entrepreneurs. They also lead role in the Strategy. Building on Our Energy: result was a strategy that emphasized Calgary’s give greater attention to growing technology and desired position as a global city – competitive, innovation, as well as raising The Economic Strategy for Calgary successful, and recognized as a global centre the profile and importance The Economic Strategy for Calgary is of energy. of building, attracting, and the result of stakeholders emphasizing retaining a skilled workforce Calgary and the world have changed significantly through a renewed focus the need to leverage our strengths since the original strategy was released, and it was on people and community. necessary to take the time to evaluate our progress – to build on our energy Finally, and most important- and reformulate our priorities as the Strategy ly, there is attention given There are six areas of focus approached the fifth year of implementation. The Strategy’s success will be measured with 13 in the strategy: to the need to work better together and collaborate core metrics that gauge progress on sustain- The process of refreshing the Strategy engaged to ensure the implementation of the Strategy 1. Global Energy able growth, shared prosperity, and a strong more than 400 community and business leaders to is successful. 2. Entrepreneurial Energy community. Progress and success will be shared determine the progress made towards the priorities Under the six energies there are a total of 31 with the community as we progress through the 3. Innovative Energy set out in 2008 and to assess whether our priorities actions with immediate-, mid- and long-term implementation stages. 4. Community Energy had shifted. Guiding the process was a 40 member timelines. Of these 31 actions, Calgary Economic 5. People Energy Project Advisory Committee drawn from the public, Development will lead and co-lead 15 of them. 6. Collaborative Energy private, and not-for-profit sectors.
The Strategy engaged more than 400 community and business leaders.
building on our energy an economic strategy for calgary Unanimous approval from City Council.
022 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 023 MAJOR INITIATIVES
The film and television industry in Calgary has includes office, workshop, and production space. It will provide opportunities for our indigenous, been growing steadily for the past decade. Construction will continue through 2015 and the homegrown talent to showcase their projects and facility is expected to open in early 2016. ideas, while working full time in this province in After ten years of working to create a purpose- their chosen industry. Alberta’s film, television, and built film facility to support the film, television, The thrust of the Calgary Film Centre is to become a creative industry employs over 3,000 people and is and creative industries in Alberta, the Calgary Film centre of innovation and excellence in the creative responsible for hundreds of millions in economic Centre is almost a reality. After funding was secured and digital media industries, consolidate leading Calgary activity every year. from The City and the Provincial government, an edge activity, and drive product and process 8.35 acre parcel was acquired and ground broke development as well as economic diversification Film Centre on the project in October. throughout southern Alberta. The Calgary Film Centre will include 50,000 square The Calgary Film Centre will allow us to grow our Supporting a growth industry feet of purpose-built sound stages as well as 20,000 local crew, talent base, and peripheral industries. square feet of warehouse space, with an additional It has the potential to substantially increase our 15,000 square feet of multi-purpose space that production volume over the next five to seven years.
The Calgary Film Centre will allow us to grow our local crew, talent base, and peripheral industries The facility is expected to open in early 2016
William F. White will be the anchor tenant. 85,000 square foot facility that includes sound stages, warehouse, office and production space.
024 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 025 MAJOR INITIATIVES
WORKshiftTM Showing Canadians how to work when and where they are most effective
The nature of work has changed. More and more movement with a bold vision to transform the way people don’t need to go to work to do their work. work is done in Canada. Thanks to our Founding partners’ thought By enabling employees to work when, where, and leadership and financial WORKshift and our team of Founders and partners how they are most effective and efficient, organi- support, WORKshift are dedicated to promoting, educating, and ac- continues to support zations are realizing the benefits of productivity Canadian organizations celerating the adoption of flexible work programs gains and a more engaged workforce. WORKshift to embrace and succeed that will allow companies across Canada to finally with meaningful workplace organizations may also require less space than accept and embrace our changed world. transformation. The traditional offices. Founding partners are: In partnership with the Founders and other industry Created and incubated at Calgary Economic Shaw Business partners, WORKshift has been working to build a Development since 2009, WORKshift has evolved KPMG certification program, much like LEED, that will from a regional telework initiative to a national Citrix (GotoMeeting) define the framework, criteria, benchmarks, Rogers WORKshift has been working and tools to help organizations identify as flexible work friendly organizations. This to build a certification certification program is currently being program, that will define the beta tested with organizations from across standards, criteria, benchmarks, Canada and will be available for a broader pilot program late in 2015. Edmonton Ottawa and tools to help organizations municipal partner municipal partner easily adopt and implement flexible work programs GTHA Metrolinx representing 13 municipalities from the Greater Calgary Toronto and Hamilton Area. municipal partner
Halifax municipal partner
026 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 027 Calgary. Be Part of the Energy. Campaign
Calgary. Be Part of the Energy.
The Calgary. Be Part of the Energy. campaign continued to be the platform to tell the Calgary story and act as a call to action to engage people, businesses, and investors to come to Calgary.
The 2014 campaign included a national advertising and media campaign that focused on defining the energy in Calgary. It combined both the active, outdoor lifestyle, and business opportunity messages. Action Calgary partners had the opportunity to participate in some of the advertising, social media, and traditional media executions.
In the spring, the Calgary. Be Part of the Energy. campaign was in Ontario where Mayor Nenshi was the campaign spokesperson. He promoted the opportunities in Calgary to post-secondary audiences.
These types of events are a part of our long-term labour attraction efforts to engage Canadians to find out more about the opportunities in Calgary. Later in the year, the campaign returned to Ontario and Quebec where Mayor Nenshi spoke to both business and post-secondary audiences at a series of 11 events in Montreal, Toronto and Hamilton.
Perceptions Research
To follow up on three years of the Calgary. Be Part of the Energy. campaign, in 2014 Calgary Economic Development conducted perceptions research in five centres across Canada to understand perceptions about Calgary, the propensity of students and professionals to choose Calgary as a destination relative to other major centres in Canada, and the likelihood that someone would actually move to Calgary for school or work.
The research also identified areas that influenced perceptions and decisions to move to Calgary. The reputation of Mayor Nenshi, active lifestyles, and proximity to the mountains were considered positive. Concerns about the energy sector, housing prices, and distance from friends and family were seen as negative.
028 · 2014 Annual Report · Calgary Economic Development e r t a • l b c a a n • a
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r a lifeincalgary t 2014 To support the campaign, Calgary Economic Development, in partnership with RedPoint Media, released a 100-page lifestyle magazine across Canada that tells the story about what makes Calgary a great place to make a living and make a life. The magazine showcases the lifestyle, arts, and recreational opportunities that will keep families here. Within the pages of the award- winning Life in Calgary magazine, we share our pride in this great city by telling the world what an incredible place Calgary is to work, live, and play.
In addition, we launched a new website called LifeinCalgary.ca to support the magazine. It gives us an opportunity to provide more in-depth information about the practical side of moving to Calgary – finding a job, finding a place to live, finding schools, and recreational opportunities. Your guide to living, working & playing in one of the world’s most dynamic cities
Calgary Economic Development · 2014 Annual Report · 031 Calgary. Be Part of the Energy. Campaign
@lifeincalgary: CED’s Instagram Initiative As part of the local activation of the campaign, Calgarians were encouraged to share their stories and definitions of Calgary’s energy on Twitter and Instagram with #yycenergy. Since the campaign wrapped up, a different influential Calgarian or organization takes over the @lifeincalgary Instagram account to show their unique perspective of the city each week. Its become a hub for diversity, creativity, and community.
032 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 033 MAJOR INITIATIVES
Global Business Centre Supporting Calgary’s growth
The Global Business Centre is located at the Kinetica, that helps energy related tech startups There were 10 companies in 2014 that used the heart of downtown Calgary on Stephen Avenue. commercialize their products. short-term office rentals: It offers temporary office space, meeting rooms, and This past year marks the Global Business Centre’s forth Skills 4 Energy an events centre. Operated by Calgary Economic full year of operations. It has provided temporary office ING Engineering Development, it also offers a variety of programs, and space for up to 34 companies since it opened. During Northcott Global Solutions business and networking events, including market that time, 20 of these companies have gone on to set Canada China Business Council and sector focused export development seminars; up more permanent offices in Calgary. TWI Training & Consulting speaker series featuring renowned business leaders; CES Engineering workshops, and roundtables; numerous international It has been a year of transition for the Global Business The Economic Club of Canada networking receptions; and economic briefings for Centre as a new strategy for the programs operating BDM Consulting (Government of Ontario) incoming delegations. In 2014, the Global Business out of the facility was developed. APS Technologies Centre hosted 101 events in the Terrace View Room. Looking ahead, the Global Business Centre Innovate Calgary – Kinetica Ventures It continues to be a launching and landing pad will celebrate its fifth anniversary this coming for Calgary-based businesses looking to access year and Calgary Economic Development will international markets and for international businesses continue to develop new and innovative looking to set up in Calgary. It is also home to programming with partners, government, a collaborative initiative with Innovate Calgary, and industry.
034 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 035 BUSINESS TRADE & DEVELOPMENT SECTOR OVERVIEW The rich resources available in Alberta account for the third lower levels of drilling and production declines in previous years. Differential largest reserves of crude oil in the world and the largest Almost $47 billion in between West Texas In 2014, Calgary Economic Development was a key partner oil and gas industry Intermediate and global deposits of oil sands. Alberta produces nearly 70 per capital projects under in several events that created opportunities for Calgary- Western Canadian cent of Canada’s crude oil and almost 80 per cent of its natural construction, plus a Select decreased based organizations. further $87 billion to $19.37/bbl from gas. Canada is the fifth largest producer of oil in the world (BP in announced or $25.23/bbl in 2013. Statistical Review 2014). proposed projects. Government of Alberta We assisted A.HAK, Calgary is the nucleus of the Canadian energy industry Calgary is the nucleus of the Canadian a multi-faceted – it is where decisions are made. It is home to the industrial company energy industry – it is where decisions Recent oil market from Holland, with Canadian head office of every major energy company volatility reflects opening a new 21,000 and also home to the National Energy Board, Canada’s are made changes in crude Energy square foot facility to oil supply and national energy regulator, as well as the Alberta better service their In 2014, Calgary Economic Development participated in two inventories. energy clients in Utilities Commission, the Canadian Association of Petroleum Announced A global energy centre North America. international trade missions with the Consider Canada Cities reductions in Producers, the Petroleum Services Association, and the Alberta Alliance, trade and investment mission to Europe and Asia. We planned 2015 capital Energy Regulator. expenditures by were able to position Calgary as a sound destination for investment We helped Bench major international Tree, a drilling Current oil production in Western Canada is 1.98 million barrels and expansion. We hosted over 45 meetings with companies and oil companies signal a supply-side response measurement of oil equivalent per day. The Canadian Association of Petroleum investors interested in Canada. company, prepare to lower oil prices. for opening an office Producers (CAPP) estimates that oil production for Western Canada In July, we hosted the second annual Stampede Investment in Calgary to serve will reach 5.2 million barrels per day by 2030. the Alberta oil and Forum. We brought together delegates from 13 countries in Only 19 per cent gas industry. However, Canadian producers face challenges on several fronts the international investment community and private sector in of the world’s oil is accessible to – movement of major energy pipeline projects to the west, collaboration with the Province of Alberta. It was an opportunity investment. The rest in After help from us east, and south has been slower than desired. Canadians need to showcase the investment opportunities. controlled by national to learn about the governments. Of the to have a holistic, fact-based conversation about the economic, Calgary market and In September, the Economic Developers Association of Canada accessible oil, 53 per to facilitate business environmental, and social impacts of Canada’s energy future. cent is found in the introductions, held their national conference in Calgary. This created an oppor- Because of a lack of energy literacy, the industry faces reputational Alberta Oil Sands. McLand Resources tunity to foster discussion about energy literacy with economic Investment Guide to Alberta’s opened offices in challenges both in Canada and around the world. Energy Industry, 2015 Calgary in 2014. developers and elected officials from across Canada. Many of the Natural gas prices are not experiencing the declines seen in oil delegates at the conference also participated in a visit to Fort 68,500 to this point, however the historic low price of gas has led to McMurray to learn about the oil sands first hand. people are employed in the energy industry in Calgary. Calgary CMA, Statistics Canada, 2014 Calgary was selected by the Oil Council as the first Annual average oil prices Alberta natural gas prices location for the Canada US $/BBL average annual - CAD $/GJ Assembly. 120.00 5.00 95.10 94.21 97.97 92.97 4.50 100.00 3.80 4.59 4.00 1,746 79.50 3.43 3.50 energy business 80.00 2.50 establishments in Calgary. 77.97 73.14 73.60 2.27 3.01 60.00 72.77 2.00 Calgary CMA, Statistics Alberta oil sands hold 65.30 Canada, 2014 1.50 40.00 1.00
53% 20.00 0.50 of the world’s oil that 0.50 is accessible to private investment. 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
West Texas Intermediate Western Canadian Select
036 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 037 Cathay Pacific BUSINESS TRADE & DEVELOPMENT SECTOR OVERVIEW launched twice-weekly air cargo service from Calgary to Hong Kong.
Home Depot broke ground on what will become their Western Canadian distribution centre. Transportation & Logistics Purposeful diversification
Providing a variety of integrated logistics Major retailers like Walmart, Home Depot, and a Foreign Trade Zone designation. Combined with solutions, Calgary is the North American hub for Costco have selected the Calgary region as an a softer Canadian dollar and lower fuel costs, this the Pacific Northwest by road, rail, and air, and integral part of their Western distribution strategy. sector is poised to continue to grow in significance is able to move products and people in a manner This is partly due to Calgary’s growing economy, for the Calgary economy. unparalleled elsewhere in the region. its geographic location, and well-developed and evolving infrastructure. This powerful combination Our partnership with Development Counsellors Calgary’s robust transportation and logistics net- makes Calgary a major Canadian transportation and International continued in 2014, with key projects 5,170 work is a cornerstone of the city’s vitality. Outside to build more awareness in the U.S. market about transportation & logistics logistics hub of the future. companies are in Calgary. of its commercial benefits, this network gives city the advantages of Calgary’s location as a distribution Calgary CMA, Statistics The transportation and logistics sector continues Canada, 2014 residents and visitors alike the means to reach and hub. We interacted with key media both in Calgary to be a key area of focus for strategic growth in enjoy all aspects of life in and around Calgary and and in other jurisdictions to orient them to our Calgary. Calgary Economic Development continued southern Alberta. opportunities here. collaborating with the Calgary Calgary is the North American hub Regional Partnership on work to position Calgary and the 78,700 for the Pacific Northwest by road, surrounding communities as people are employed in the transportation and logistics rail, and air an inland port and to receive The expansion at YYC sector in Calgary. is well underway. It will Calgary CMA, Statistics include a new international Canada, 2014 terminal and one of the most sophisticated animal transfer facilities in North America.
038 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 039 BUSINESS TRADE & DEVELOPMENT MAJOR INITIATIVES
Finance Attracting global investment
While oil and gas is considered to be the driv- share of capital expenditures in Canada. The cap- ing force behind Calgary’s buoyant economy, ital needed to finance the energy sector and the Calgary ranks 33 out of 77 global financial the growing financial services sector has, in revenue it generates cannot be overstated – no centres on the Global its own right, become internationally recog- other sector in Canada requires the capital infu- Financial Centre Index. nized and is a major contributor to the city’s sion that the energy sector does. The Conference economy. In fact, more than 20 major global Board of Canada estimates $364 billion will be 17 of the top 20 global financial institutions have offices in Calgary. spent in the next 25 years on oil sands production, investment banks have a presence in Calgary. 19,000 maintenance, pipelines, and upgraders. people employed in the financial International energy companies increasingly services sector in Calgary. look to Calgary, not just for capital investments Calgary CMA, Statistics Canada, 2014 or mergers and acquisitions, but also for advice The growing financial services sector has, in its own on structuring complex deals. This has resulted right, become internationally recognized and is a in the financial services sector in Calgary han- major contributor to the city’s economy dling, on average, 12 per cent of global energy 1, 416 deal volume over the last five years. At the same business establishments in Calgary. time, Alberta’s energy sector accounted for only The Industrial and Commercial Bank of China Calgary CMA, Statistics Canada, 2014 4.7 per cent of global production. officially set up their offices in Calgary, bringing the total number of international banks with The deals handled by Calgary’s financial services offices in Calgary to 23. sector serves to secure funding for the largest 23 major international banks Over with offices in Calgary. $514 billion will be invested in new and existing oil sands projects between 2014 and 2038. Canadian Energy Research Institute, 2014
040 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 041 The Calgary Economic Region saw building from 11.0 per cent in 2013 as more inventory was feet absorbed in 2012. Absorption is expected BUSINESS TRADE & DEVELOPMENT SECTOR OVERVIEW intentions increase during 2013, with building added to the market and absorption remained to contract slightly in 2014. permits valued at $7.73 billion, an increase of below the 10-year average. Increasingly our role in this sector is about collab- 33.5 per cent over 2012. This was driven primarily Calgary’s downtown market returned to positive oration both within the real estate community and by continued growth in the residential market. Job annual absorption in 2014, with 519,028 million across other sectors. In 2014, the Real Estate team gains and more demand for residential housing square feet, very close to the 10-year average ab- launched two new committees to find innovative due to migration into Calgary has fueled this growth. sorption. Suburban office absorption numbers slid and creative solutions to affordable housing and to Non-residential permits in the Calgary Economic in 2014, with 596,222 square feet being absorbed increase collaboration between the commercial real Region accounted for approximately $2.9 billion for the year. estate industry and the City. The new committees Real Estate worth of building permits in 2013, an increase of are the Calgary Housing 39.0 per cent from 2012. Non-residential permits The Calgary real estate market Options and Market Explo- Investment opportunities represented 40.3 per cent of the total building continues to be one of the strongest in ration (HOME) Committee permit value in 2013. and the Commercial Real Canada and was recently recognized by Estate Advisory Commit- Residential permits in the Calgary Economic Region tee (CREAC). represented close to $4.6 billion worth of building MoneySense magazine as the best place permits in 2013, an increase of 29.5 per cent from to invest in real estate in Canada Availability and afford- 2012. In 2013, residential permits represented ability of housing directly approximately 61.0 per cent of total building influences workforce at- permit value. Industrial traction, retention, productivity, and quality of life. The purpose of the HOME Committee is to provide Over 1.6 million square feet of new industrial supply Downtown collective and creative solutions to support a healthy was added to the inventory in 2014. Over the past Downtown Calgary saw its office space inventory housing market. decade, the amount of industrial space in Calgary increase to 39.3 million square feet over 2014, with has grown by 23 per cent. By the end of 2014, there CREAC is a forum for senior commercial real estate the addition of Eighth Avenue Place West. Over was 125.4 million square feet of industrial space in professionals and senior City of Calgary representa- 3.8 million square feet divided between five projects Calgary. Calgary has the second highest amount tives to discuss key issues and opportunities facing remain under construction. The suburban market of industrial space per capita in Canada, of major the industry, share intelligence on the current also continued to grow, increasing its inventory by markets, behind Toronto. business climate for commercial real estate, and 977,446 square feet to 23.1 million square feet. The to work together on initiatives to achieve aligned largest suburban office inventory increase since 2009. Industrial vacancy increased to 3.4 per cent in goals. Committee members are contributing to the 2014 building permits worth 2014, up from 3.3 per cent in 2013. Industrial space advancement of goals within the Economic Strategy An increase in both direct and sublease space from availability remained stable even with the addition for Calgary and helping to guide the establishment $7.73 new inventory and departures for the suburban billion, up 3.3 per cent. of new inventory. The Calgary industrial market of a business environment within The City of Calgary Calgary CMA, Statistics market has caused the downtown office space continued to experience positive growth in 2014. that recognizes the needs and economic contribu- Canada, 2014 vacancy rate to increase to 9.8 per cent in 2014 For all of 2014, absorption was 3.7 million square tions of the commercial real estate sector. from 9.1 per cent in 2013. The suburban office feet, exceeding the almost-record 3.6 million square market vacancy rate grew to 13.1 per cent in 2014 12,400 people employed in the real estate industry. Calgary CMA, Statistics 39.3 Canada, 2014 million square feet of office 2,260 space in downtown Calgary. business establishments in the real estate sector. Calgary CMA, Statistics Canada, 2014 9.8% downtown office vacancy. CRBE Limited, Q4, 2014
042 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 043 BUSINESS TRADE & DEVELOPMENT SECTOR OVERVIEW
Manufacturing Innovation in Calgary
The manufacturing sector in Calgary continues True to the entrepreneurial spirit of the city, Calgary issues faced by the industry, including changing to be a dynamic area of growth. It’s made up manufacturers have made substantial investments the perceptions around career opportunities in of a variety of consumer and industrial product in the most current technology, and are more mod- this sector. manufacturers in the energy, construction, ern and efficient than many of their competitors. We continued to support the Careers in Manufac- aerospace, medical and hi-tech sectors. Some of Looking ahead to 2015, the lower Canadian dollar turing high school outreach program that connects the largest employers in this sector include DIRTT will help manufacturers export products to inter- students and careers counsellors with manufactur- Environmental, Agrium, Standen’s, Evans Consoles national markets. ing companies. This program allows students to Corporation, Enerflex, Big Rock Brewery, Optima Calgary Economic Development works closely with explore the wide variety of career opportunities Manufacturing, Plains Fabrication and Dynamic the industry. The Manufacturing Action Committee in the manufacturing sector. Source Manufacturing. 49,200 meets on a monthly basis to people employed in the manufacturing sector in Calgary. True to the entrepreneurial spirit of share best practices and address Calgary CMA, Statistics Canada, 2014 the city, Calgary manufacturers 1,720 have made substantial investments manufacturing businesses in Calgary. in the most current technology Calgary CMA, Statistics Canada, 2014 $6.87 14 billion in manufacturing Careers in Manufacturing GDP for Calgary. tours for Calgary students to Calgary CMA, Conference learn about career paths in Board of Canada, 2014 the manufacturing industry.
044 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 045 BUSINESS TRADE & DEVELOPMENT SECTOR OVERVIEW Under a broad definition of creative industries, The Calgary Film Centre Major productions shot in 2014 which includes people who create new ideas, Over the past four years, Calgary Economic Devel- new technology, and new creative content, opment was advocating and securing financing for • Fargo, Season 1 Calgary is a leader in Canada. a purpose-built film studio in Calgary that would • Hell on Wheels, Season 4 allow more and diverse productions to be filmed • Heartland, Season 8 Calgary’s focus continues to be developing as a cre- and edited in the city. • Big Sky ative centre, including growth in digital media, film, • Young Drunk Punk and television production. Each of these industries The Calgary Film Commission • The Dorm use imagination, inspiration, and innovation. They The Film Commission is responsible for promoting, • Painkillers are a key part of developing Calgary’s creative and Creative securing, and facilitating film and television produc- • Fallout Asylum aka Mutant World cultural communities. tion shoots for Southern Alberta. In July, Calgary • Diablo Economic Development hosted a familiarization Calgary’s award-winning crews and scenery have • Haunting Melissa 2 trip for location scouts and producers, resulting Industries secured its position as Canada’s fourth largest filming in the HBO Lewis & Clark mini-series confirmed to destination. With over $163 million in film, television, “As producers of Fargo Year 2 it is our pleasure to start filming in 2015. Award winning crews and scenery and creative productions in the Calgary region, it return to the heart of Alberta here in Calgary. The represents 85 per cent of all Alberta projects. The Film Commission also updated a 30-second level of excellence in our local crew continues the video spot showcasing the film and television tradition that we established last year, producing Calgary-based productions received high praise industry in southern Alberta that was pre-screened award winning television. “ at this year’s Emmy, Golden Globe, and Academy Awards ceremonies: at CUFF, $100FF, and CIFF. Warren Littlefield, Executive Producer Fargo Year 2 Behind the Scenes Season 1 of ‘Fargo’ garnered 18 Emmy nominations local Calgarian, Gail Kennedy, for Behind the Scenes connects the film and television “The FAM Tour, hosted by the Calgary Film Makeup, and 3 wins for outstanding mini-series, industry with our communities to bring stories to directing, and casting. It also had 5 Golden Commission, was a great opportunity to learn life. This initiative is a collaboration between Calgary Globe nominations with 2 wins for best mini- firsthand about the wealth of diverse locations series and best actor for Billy Bob Thornton. Economic Development, Shaw TV Calgary, Alberta that southern Alberta offers. Traveling by Film, and industry community stakeholders. Seven helicopter enabled us to cover a lot of territory ‘Klondike’ was nominated for the Emmy for episodes were shot in 2014 and introduced Lissa very efficiently and effectively.” outstanding sound editing for a mini-series, Craig as the new host. movie, or special. Ginny Nugent, Local company – Propeller Studios HBO Senior Vice President, West Coast Production
Calgary’s own Frank Laratta was nominated for his sound editing work on both ‘Fargo’ and ‘Klondike’.
Feature Film ‘Interstellar’ has 5 Academy Award 205 nominations for production design, music, Film and Television business establishments. 85,100 sound mixing/editing, and visual effects. Calgary CMA, Statistics people are employed in Calgary’s creative industries. Canada, 2014 Calgary CMA, Statistics 10,500 Canada, 2014 people are employed in the Film and Television sector. 8,123 Calgary CMA, Statistics creative industry business Canada, 2014 Calgary is the establishments. Calgary CMA, Statistics 4th Canada, 2014 largest shooting jurisdiction in Canada.
046 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 047 BUSINESS TRADE & DEVELOPMENT SECTOR OVERVIEW Calgary continued to drive the Canadian econ- While labour attraction has been the primary underemployed immigrant professionals, recent omy in 2014. The unemployment rate finished focus of our workforce initiatives in previous years, graduates, and aboriginals grow their professional the year at 4.4 per cent and the average for the labour retention, upskilling, and supporting mar- network by connecting them with professionals from year was 4.9 percent, up 0.1 per cent over 2013. ginalized workers were part of the strategy in 2014. the Calgary business community. The program was modelled after a very successful Halifax initiative Workforce Even with falling oil prices in the last quarter, Local initiatives and will be launched in 2015. many employers still had challenges finding skilled This year in particular, we worked very closely labour. At the start of 2015 as the unemployment with industry and post-secondary institutions on National initiatives & Productivity rate started to rise, jobs were still being created a number of initiatives. These initiatives included As part of the Calgary. Be Part of the Energy. cam- in Calgary, just not at the same rate as people roundtables and best practice events with provincial paign, Calgary Economic Development led a labour Attracting and retaining the best were coming to the city. Minister Fawcett and Service Canada, Alberta Ap- attraction mission to post-secondary institutions in prenticeship and Industry Training, Citizenship and Montreal, Toronto, and Hamilton where Mayor Nen- and brightest for Calgary Calgary added 19,700 new jobs in 2014. Total em- Immigration Canada, and Government of Alberta shi spoke to students and recent graduates about ployment in the Calgary Region increased by representatives to identify local challenges and the career and lifestyle opportunities in Calgary. 2.3 per cent to 857,200 from 837,900 in 2013. solutions to the labour market issues in Calgary. We The highest percentage employment growth Calgary Economic Development also supported also looked at how best to manage changing foreign occurred in transportation and warehousing, the AIESEC regional and national conferences, worker policies, and hosted a series of best practices manufacturing, and construction. The industries where we supported their challenge competition events with internationally acclaimed productivity with the highest percentage of job losses were with hundreds of leadership students in Vancouver experts and best-selling authors, including Chris utilities, information, culture and recreation, and and Guelph. Ortiz and Jeffrey Liker. public administration. International initiatives Workforce continues to be a key area of focus for In addition, we continued to support the Careers in In the spring, Calgary led a delegation of 17 peo- Calgary Economic Development in all sectors of Manufacturing high school outreach program that ple representing ten companies seeking to fill key the economy. Working with the private sector, connects students and careers counsellors with man- positions to Ireland and England. The delegation government, and post-secondary institutions, our ufacturing companies to explore the wide variety of attended the Working Abroad Job Expos where 50 strategy is focused on finding innovative solutions career opportunities in the manufacturing sector. job offers were made. to develop talent in Alberta, attract and retain A new program called the Calgary Connector workers from across Canada, and when necessary, Program was developed in partnership with Bow support recruiting opportunities in strategic and Valley College and the Calgary Region Immigrant high-potential international markets. Employment Council. The referral program helps
Total employment in the Calgary Region increased by 2.6% to 799,500 from 779,600 in 2013. 4.9% Calgary CMA, Statistics annual unemployment rate. Canada, 2014 Calgary Economic Region, Statistics Canada, 2014 19,900 new jobs created in Calgary, representing 17.9% of all the new jobs created in Canada. Calgary CMA, Statistics Canada, 2014
048 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 049 Signature Events Bringing the community together for business and economic networking
Each year, Calgary Economic Development hosts three major signature events that bring the community together.
Last year’s Report to the Community was a sold-out event. Sponsored by ATB Business, the event included presentations that reflected on the organization’s accomplishments from the previous year, celebrated the fifth anniversary of the Action Calgary program, and included a panel discussion from three of Calgary’s business and community leaders: N. Murray Edwards, President Edco Financial Holdings Scott Hutcheson, Chairman & CEO Aspen Properties Nancy Southern, President & CEO ATCO Group The Soul of the City First Flip is the annual pancake breakfast that kicks off the Calgary Stampede Speaker Series celebrations in downtown Calgary. The event, which sees over 4,000 people in attendance along Stephen Avenue, is a collaborative production with Tourism The ever popular Soul of the City speaker series completed its third year. It Calgary and the Downtown Calgary Association. focused on diversity, recreation and wellness, transportation, and charity and community engagement. The series focuses on the aspects of a community that In the fall, Economic Outlook included local, regional, national, and international make it great and topics that represent our city’s soul. economic forecasts from two economists, Todd Hirsch, Chief Economist at ATB Financial, and Glen Hodgson, Senior Vice President and Chief Economist at the Each event draws between 150 to 200 participants and is made possible through Conference Board of Canada. The event saw a record 1,100 attendees. the generous support of a diverse group of sponsors, including the Calgary TELUS Convention Centre, M2I Developments, RedPoint Media, Village Brewery, and several event specific sponsors.
This year also saw the launch of the Neighbour Grant program in partnership with The Calgary Foundation. Five community projects were awarded $5,000 each to improve, revitalize, or enhance their neighbourhoods. The story of these five projects was then told in an award-winning documentary released in the fall.
050 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 051 Calgary By the Numbers
Economic Overview
Indicator Unit 2014 2013 2012 % Change 2013-2014
Gross Domestic Product* 2007 $Millions 117,002 113,506 108,135 4.4% In 2014, Calgary continued to hold a strong position Housing starts hit unprecedented levels, particu- feet, remain under construction. These towers Population (July 1, 2014) Persons 1,511,755 1,460,812 1,408,780 3.5% compared to Canada’s major urban centres as a larly with respect to 10,637 multi-family starts – a are expected to be completed between the end Working Age Population (annual average) Persons 1,231,300 1,188,300 1,144,500 3.6% generator of economic and employment growth. 72.1 per cent increase over 2013. Single-family of 2015 and 2018. Labour Force (annual average) Persons 901,500 879,900 854,900 2.5% With real GDP growth of 4.4 per cent, Calgary, to- starts in the Calgary region remained relatively Employment (annual average) Persons 857,200 837,900 813,900 2.3% Calgary’s economic driver, oil and gas, finished the gether with Edmonton, had the best performance flat, increasing only 1.4 per cent to 6,494 starts Employment Rate (annual average) % 69.6 70.5 71.1 -1.3% year on a low note. The annual average price per of Canada’s largest metropolitan areas and Calgary for the year. Developers remained optimistic in Unemployment Rate (annual average) % 4.9 4.8 4.8 2.1% barrel of West Texas Intermediate finished the year Labour Force Participation Rate (annual average) % 73.2 74.0 74.7 -1.1% ranked as one of the strongest regional economies 2014, with residential building permit applications down 5.1 per cent, while Western Canadian Select’s Average weekly earnings (Alberta) % $1,157.93 $1,143.38 $1,091.74 4.9% in North America. One would think that much of our rising 5.9 per cent to $4.8 billion in the Calgary average annual price per barrel rose slightly over Net Migration (July 1, 2014) Persons 38,047 39,694 33,277 -4.1% success is the result of just one industry, namely oil Economic Region. At the same time, the housing Housing Starts* (Single-Family) House Units 6,494 6,402 5,961 1.4% the course of the year by 1.1 per cent. This resulted and gas. While there is no doubt Calgary is an energy market was one of the most robust in Canada, Housing Starts* (Multi-Family) House Units 10,637 6,182 6,880 72.1% in the differential narrowing to $19 per barrel in city with major head office presence, a lesser known with the MLS Benchmark price rising 10.1 per cent MLS Benchmark Detached Home Price** $ 507,200 460,850 428,667 10.1% 2014 from $25 per barrel in 2013. Reductions MLS Benchmark Apartment Home Price** $ 294,617 266,233 244,650 10.7% fact is that our economy has strong representation for detached homes, 10.7 per cent for apartment to capital expenditures, production, and layoffs MLS Benchmark Attached Home Price** $ 348,092 317,575 297,733 9.6% from finance, business services, construction, and units, and 9.6 per cent for attached homes. have already been announced in efforts to reduce Value of Building Permits (Calgary Economic Region) $Billions 7.73 7.48 5.61 3.3% transportation and logistics sectors. Value of Building Permits** (City of Calgary) $Billions 6.52 6.02 4.45 8.3% The office real estate market saw a similar scenario production in response to lower oil prices. In contrast Consumer Price Index* 2002=100 132.7 128.8 126.7 3.0% A strong resource-based economy attracts busi- to population and job growth – growth in inventory to oil, natural gas prices closed the year 52.5 per Inflation Rate % 3.0 1.7 1.0 76.5% nesses seeking to service increased activity. When exceeded growth in occupied space. Over the cent higher at $4.59 per gigajoule. This is due to Retail Sales* (Estimates generated in Q4) $Millions 28,071 26,049 24,879 7.8% economic conditions weaken, a strong base of course of 2014, the downtown office vacancy rate a particularly cold finish to winter at the start of Industrial Space Vacancy** % 3.4 3.3 3.0 3.0% experienced business owners often becomes the rose from 9.1 per cent to 9.8 per cent. This was due 2014, increasing consumption of natural gas for Downtown Office Space Vacancy** % 9.8 9.1 5.0 7.7% primary pillar of growth. Small businesses and to the completion of Eighth Avenue Place West, heating across the country. Suburban Office Space Vacancy** % 13.1 11.0 10.8 19.1% New Businesses** Number 4,001 3,890 3,770 2.9% entrepreneurs will continue to be an important adding 841,000 square feet to the total inventory, Business Closures** Number 2,306 2,581 2,445 -10.7% component of the economic growth and diversity versus only 519,028 square feet of absorption. This of Calgary. We are fortunate to have the highest trend will likely continue over the next few years number of small businesses per capita in Canada. as five office towers, totaling 3.8 million square
Over 38,000 new people called the All numbers are the Calgary Economic Region unless otherwise indicated. Calgary region home in 2014 *denotes Census Metropolotan Area geography **denotes City of Calgary geography; Source: Statistics Canada, Conference Board of Canada, CMHC, The City of Calgary, CB Richard Ellis, Calgary Real Estate Board, Industry Canada
Business closures dropped by 10.7% 2,306 businesses Retail sector grew by closed down in 2014. 7.8% 55,569 small businesses retailers coming to in Calgary. Canada use Calgary as a launching pad. Unemployment averages
Marshalls & Nordstroms opened in 2014. 4.9% Calgary Economic Region, Statistics Canada, 2014
052 · 2014 Annual Report · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · 053 56 Management’s Responsibility
57 Independent Auditors’ Report Financial 58 Statement of Financial Position 59 Statement of Operations
60 Statement of Changes in Net Assets Statements 61 Statement of Cash Flows 62 Notes to the Financial Statements December054 · 2014 Annual 31, 2014Report · Calgary Economic Development Management’s Responsibility Independent Auditors’ Report
To the Board of Directors of Calgary Economic Development Ltd.: To the Board of Directors of Calgary Economic Development Ltd.:
Management is responsible for the preparation and presentation of the accompanying financial statements, including We have audited the accompanying financial statements of Calgary Economic Development Ltd., which comprise the statement responsibility for significant accounting judgments and estimates in accordance with Canadian Public Sector Accounting of financial position as at December 31, 2014, and the statements of operations, changes in net assets and cash flows for the year Standards for Not-for-Profit Organizations. This responsibility includes selecting appropriate accounting principles and methods, then ended, and a summary of significant accounting policies and other explanatory information. and making decisions affecting the measurement of transactions in which objective judgment is required. Management’s Responsibility for the Financial Statements In discharging its responsibilities for the integrity and fairness of the financial statements, management designs and maintains Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian the necessary accounting systems and related internal controls to provide reasonable assurance that transactions are authorized, Public Sector Accounting Standards for Not-for-Profit Organizations, and for such internal control as management determines is assets are safeguarded and financial records are properly maintained to provide reliable information for the preparation of necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud financial statements. or error.
The Board of Directors and Audit Committee are composed primarily of Directors who are neither management nor Auditors’ Responsibility employees of the Company. The Board is responsible for overseeing management in the performance of its financial reporting Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in responsibilities, and for approving the financial information included in the annual report. The Board fulfills these responsibilities accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical by reviewing the financial information prepared by management and discussing relevant matters with management and requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free external auditors. The Board is also responsible for recommending the appointment of the Company's external auditors. from material misstatement. MNP LLP is appointed by the Board to audit the financial statements and report directly to them; their report follows. The An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial external auditors have full and free access to, and meet periodically and separately with, both the Board and management to statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material discuss their audit findings. misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor April 23, 2015 considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion F. Bruce Graham Brian McClure President & CEO Acting Chief Financial Officer In our opinion, the financial statements present fairly, in all material respects, the financial position of Calgary Economic Development Ltd. as at December 31, 2014 and the results of its operations and its cash flows for the year then ended in accordance with Canadian Public Sector Accounting Standards for Not-for-Profit Organizations.
Calgary, Alberta April 23, 2015
Chartered Accountants
056 · 2014 Annual Report Financial Statements · Calgary Economic Development Calgary Economic Development · 2014 Annual Report Financial Statements · 057 Statement of Financial Position Statement of Operations As at December 31, 2014 For the year ended December 31, 2014
2014 2013 2014 2013 Assets Revenue Current City of Calgary Cash and cash equivalents 73,878 139,241 Operating grant (Note 1) 4,785,137 4,780,279 Short-term investments (Note 3) (Note 13) 5,017,117 1,562,326 Other grants 139,608 606,757 Accounts receivable and accrued revenue (Note 4) 552,854 515,169 Alberta government 162,592 439,748 Prepaid expenses 17,553 12,843 Federal government 20,759 66,767 Advance to a related party (Note 15) 2,000,000 - Business community 1,837,896 1,431,349 Amortization of deferred contributions related to property, equipment, and intangible assets 259,495 377,231 7,661,402 2,229,579 Other revenue 110,717 81,387 Property and equipment (Note 5) 26,631 401,419 Investment income 18,179 17,715 Intangible assets (Note 6) 158,436 173,702 7,334,383 7,801,233 7,846,469 2,804,700 Expenses Liabilities Employee costs 4,192,104 3,858,699 Current Marketing and promotion 1,982,450 1,556,007 Accounts payable and accrued liabilities (Note 7) 665,718 320,683 Corporate services 636,665 584,470 Salary and vacation payable 488,628 347,399 Amortization of property and equipment 383,929 501,053 Deferred contributions (Note 8) 5,697,690 422,530 Program costs 349,635 526,132 Business travel 155,365 198,929 6,852,036 1,090,612 Amortization of intangible assets 95,062 79,438 Deferred contributions related to property, equipment, and intangible assets (Note 9) - 259,495 7,795,210 7,304,728 6,852,036 1,090,612 - 259,495 (Deficiency) excess of revenue over expenses before other items (460,827) 496,505 Other items 6,852,036 1,350,107 Gain on disposal of property and equipment 667 -
Commitments and contingencies (Note 12) (Deficiency) excess of revenue over expenses (460,160) 496,505
Net Assets Invested in property, equipment, and intangible assets (Note 10) 185,067 315,626 Unrestricted 809,366 1,138,967
994,433 1,454,593
7,846,469 2,804,700
Approved on behalf of the Board
Director Director
The accompanying notes are an integral part of these financial statements The accompanying notes are an integral part of these financial statements
058 · 2014 Annual Report Financial Statements · Calgary Economic Development Calgary Economic Development · 2014 Annual Report Financial Statements · 059 Statement of Changes in Net Assets Statement of Cash Flows For the year ended December 31, 2014 For the year ended December 31, 2014
Invested in 2014 2013 property, equipment, and Cash provided by (used for) the following activities intangible Operating assets Unrestricted 2014 2013 (Deficiency) excess of revenue over expenses (460,160) 496,505 Amortization of deferred contributions for property, equipment, and intangible assets (259,495) (377,231) Net assets, beginning of year 315,626 1,138,967 1,454,593 958,088 Amortization of property and equipment 383,929 501,053 (Deficiency) excess of revenue over expenses (Note (218,829) (241,331) (460,160) 496,505 Amortization of intangible assets 95,062 79,438 10) Gain on disposal of capital assets (667) - Investment in property and equipment, net 8,474 (8,474) - - Investment in intangible assets, net 79,796 (79,796) - - (241,331) 699,765 Changes in working capital accounts 185,067 809,366 994,433 1,454,593 Accounts receivable and accrued revenue (37,685) 195,034 Prepaid expenses (4,710) (843) Accounts payable and accrued liabilities 405,056 (450,959) Deferred contributions 5,275,160 (427,629) Salary and vacation payable 141,229 (22,978)
5,537,719 (7,610)
Investing Proceeds on disposal of short-term investments - 62,284 Purchase of short-term investments (3,454,791) - Advances to a related party (2,000,000) -
(5,454,791) 62,284
Capital Purchase of property and equipment (9,141) (63,458) Proceeds on disposal of property and equipment 667 - Purchase of intangible assets (139,817) (108,663) Accounts payable and accrued liabilities related to intangible assets - 60,021
(148,291) (112,100)
Decrease in cash resources (65,363) (57,426) Cash resources, beginning of year 139,241 196,667
Cash resources, end of year 73,878 139,241
The accompanying notes are an integral part of these financial statements The accompanying notes are an integral part of these financial statements
060 · 2014 Annual Report Financial Statements · Calgary Economic Development Calgary Economic Development · 2014 Annual Report Financial Statements · 061 Notes to the Financial Statements Notes to the Financial Statements For the year ended December 31, 2014 For the year ended December 31, 2014
1. Nature of operations 2. Significant accounting policies (Continued from previous page)
Calgary Economic Development Ltd. (the “Company”) was incorporated as Promoting Calgary Inc. under the Business Cash and cash equivalents Corporations Act in the Province of Alberta in July 1999. The Company changed its name to Calgary Economic Development Ltd. Cash and cash equivalents include balances with banks and short-term investments with maturities of three months or less. on January 1, 2003. The Company is registered as a non-profit organization under the Income Tax Act of Canada, and is exempt Cash subject to restrictions that prevent its use for current purposes is included in restricted cash. from income taxes. Short-term investments The mandate of Calgary Economic Development Ltd. is to lead the City of Calgary’s economic development efforts in promoting Short-term investments consist of investments in RBC Premium Money Market Fund. the City’s competitive advantages and pro-business climate. Successful economic development results in business growth Financial instruments and industry development, increased investment, and trade activities. In turn, this fosters increased competitiveness, access to The Company recognizes its financial instruments when they become party to the contractual provisions of the financial foreign markets, sustainable prosperity, diversification, productivity, high employment, and a desirable quality of life. instrument. All financial instruments are initially recorded at their fair value, including financial assets and liabilities originated The Company has been receiving contributions from the City of Calgary since inception to sustain its operations. In the current and issued in a related party transaction with management. Financial assets and liabilities originated and issued in all other year, the Company received an operating grant of $4,785,137 (2013 - $4,780,279) and the City has indicated that they will provide related party transactions are initially measured at their carrying or exchange amount in accordance with CPA Canada 3840 similar funding each year until the 2018 fiscal year. Related Party Transactions (refer to Note 11). At initial recognition, the Company may irrevocably elect to subsequently measure any financial instrument at fair value. The 2. Significant accounting policies Company has not made such an election during the year. Basis of accounting Transaction costs related to financial instruments remeasured at fair value at each reporting date are expensed in the period, The financial statements of the Company are the responsibility of management. They have been prepared in accordance with whereas they are added to the carrying value of the financial instrument for those measured at cost or amortized cost. Canadian Public Sector Accounting Standards for Not-for-Profit Organizations (“PSAB for NPOs”), with the optional 4200 series, as Financial asset impairment established by the Public Sector Accounting Board in Canada. The significant polices are described below. The Company assesses impairment of all of its financial assets measured at cost or amortized cost. When there is an indication of Use of estimates impairment, the Company determines whether it has resulted in a significant adverse change in the expected timing or amount The preparation of financial statements in conformity with Canadian Public Sector Accounting Standards for Not-for-Profit of future cash flows during the year. If so, the Company reduces its carry amount of any impaired financial assets to the highest Organizations requires management to make estimates and assumptions that affect the reported amounts of assets and of: the present value of the cash flows expected to be generated by holding the assets; the amount that could be realized by liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of selling the assets; and the amount expected to be realized by exercising any rights to collateral held against those assets. Any revenue and expenses during the reporting period. impairment, which is not considered temporary, is included in current year (deficiency) excess of revenue over expenses. Accounts receivable are stated after evaluation as to their collectability and an appropriate allowance for doubtful accounts is The Company reverses impairment losses on financial assets when there is a decrease in impairment and the decrease can be provided where considered necessary. Amortization is based on the estimated useful lives of property, equipment, and objectively related to an event occurring after the impairment loss was recognized. The amount of the reversal is recognized in intangible assets. excess of revenue over expenses in the year the reversal occurs.
These estimates and assumptions are reviewed periodically and, as adjustments become necessary, they are reported in Property, equipment, and intangible assets (deficiency) excess of revenue and expenses in the periods in which they become known. Purchased property, equipment, and intangible assets are recorded at cost. Contributed property, equipment, and intangible Controlled not-for-profit assets are recorded at fair value at the date of contribution if fair value can be reasonably determined. The Company’s financial statements do not include the accounts of Calgary Film Centre, which is controlled by the Company. The Amortization is provided using the straight-line method at rates intended to amortize the cost of assets over their estimated required disclosures have been provided in Note 16. useful lives. Tenant improvements are amortized over the lease term. All transactions with the subsidiary are disclosed as related party transactions. Rate Revenue recognition Computer equipment 2 years The Company follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in Furniture and fixtures 5 years Software 1 year the year in which the related expenses are incurred. Contributions for the purchase of property and equipment are deferred and Trademarks 5 years recognized on the same basis as amortization expense of the related asset. Unrestricted contributions are recognized as revenue Website development costs 30% when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Sponsorship (pledges) are recognized as revenue when the amount to be received can be reasonably estimated and ultimate Long-lived assets collection is reasonably assured. Long-lived assets consist of property, equipment, and intangible assets. Long-lived assets held for use are measured and Contributions for program related activities include amounts recovered from events and projects undertaken by the Company amortized as described in the above accounting policy. alone or with a number of economic partners. When the Company determines that a long-lived asset no longer has any long-term service potential to the Company, the excess Interest revenue is recognized on a pro rata basis over the term of the related deposit or investment of its net carrying amount over any residual value is recognized as an expense in the statement of operations. Write-downs are not reversed.
062 · 2014 Annual Report Financial Statements · Calgary Economic Development Calgary Economic Development · 2014 Annual Report · Financial Statement · 063 Notes to the Financial Statements Notes to the Financial Statements For the year ended December 31, 2014 For the year ended December 31, 2014
2. Significant accounting policies (Continued from previous page) 6. Intangible assets
Contributed materials and services 2014 2013 Accumulated Net book Net book The Company receives various contributions in the form of material or services that it uses to carry out its objectives. Cost amortization value value Because of the difficulty in determining the fair value of these materials and services, the Company does not recognize the amounts in the financial statement. Software 260,213 260,213 - 14,135 Trademarks 7,290 3,395 3,895 5,353 3. Short-term investments Website development costs 439,756 285,215 154,541 154,214 Short-term investments consist of money market funds. As at year-end, $3,000,000 (2013 - $nil) is externally restricted for the development of the Calgary film studio. 707,259 548,823 158,436 173,702
4. Accounts receivable and accrued revenue At December 31, 2014 the Company has $nil (2013 - $22,318) in software that was not subject to amortization because it was not Accounts receivable and accrued revenue relate to the following: available for use during the year.
2014 2013 7. Accounts payable and accrued liabilities Trade accounts receivable 534,169 409,418 Accounts payable and accrued liabilities relate to the following: Goods and Services Tax receivable 18,226 44,749 2014 2013 Accrued revenue 459 61,002
Trade accounts payable 575,129 308,608 552,854 515,169 Accrued liabilities 90,589 12,075
665,718 320,683 As at December 31, 2014, accounts receivable includes $24,903 (2013 - $6,250) in amounts outstanding greater than 90 days, of which $19,023 was subsequently received (2013 - $6,250). Accounts receivable have been recorded at their net realizable value, based on management’s best estimate of the recoverable amounts. 8. Deferred contributions Deferred contributions consist of unspent contributions externally restricted for programs. Recognition of these amounts 5. Property and equipment as revenue is deferred to periods when the specified expenses are made. Changes in the deferred contribution balance are as follows: 2014 Accumulated Net book 2014 2013 Cost amortization value
Balance, beginning of year 422,530 850,159 Computer equipment 632,815 618,275 14,540 Contributions received 6,281,015 782,575 Furniture and fixtures 332,837 320,746 12,091 Less: Amount recognized as revenue during the year (927,342) (1,210,204) Tenant improvements 2,581,631 2,581,631 - Less: Return of contributions (78,513) -
3,547,283 3,520,652 26,631 Balance, end of year 5,697,690 422,530
2013 Accumulated Net book Cost amortization value
Computer equipment 625,854 583,632 42,222 Furniture and fixtures 331,957 280,694 51,263 Tenant improvements 2,581,631 2,273,697 307,934
3,539,442 3,138,023 401,419
064 · 2014 Annual Report Financial Statements · Calgary Economic Development Calgary Economic Development · 2014 Annual Report Financial Statements · 065 Notes to the Financial Statements Notes to the Financial Statements For the year ended December 31, 2014 For the year ended December 31, 2014
9. Deferred contributions related to property, equipment, and intangible assets 11. Related party balances and transactions Deferred capital contributions consist of the unamortized amount of contributions received for the purchase of property, Related party balances and transactions not otherwise disclosed in these financial statements consist of: equipment, and intangible assets. Recognition of these amounts as revenue is deferred to periods when the related assets are The Company paid the City of Calgary rent, operating, and other costs totaling $144,139 (2013 - $140,093), which is included in amortized. Changes in deferred contributions related to property, equipment, and intangible assets are as follows: corporate services expense. At year end, $80 (2013 - $60) of this amount is included in accounts payable. The Company recognized management fee revenue of $nil (2013 - $7,749) from its wholly owned subsidiary, Calgary Film Centre, 2014 2013 which is included in business community revenue. Included in accounts receivable is $8,328 (2013 - $nil) due from the subsidiary for expenses paid on its behalf. Balance, beginning of year 259,495 636,726 The Company paid other companies related through common ownership for sponsorship, rental of space, and other services Less: Amounts recognized as revenue during the year (259,495) (377,231) totaling $156,484 (2013 - $218,529). $64,184 (2013 - $130,108) of this is included in marketing and promotions, $84,930 (2013 - $82,080) is included in employee costs, and $7,370 (2013 - $6,341) is included in corporate services expense. At year end, $2,212 Balance, end of year - 259,495 (2013 - $nil) was included in accounts payable. The Company also received revenue from these companies totaling $30,000 (2013 - $98,646), which is included in business community revenue. At year end, $25,000 (2013 - $75,000) of this amount is included in accounts receivable.
The balance related to property, equipment, and intangible assets is composed of $nil (2013 - $259,495) in tenant improvements. The Company paid other companies related to directors of the Company for other services totaling $1,894 (2013 - $2,580), which is included in corporate services expense. At year end, these amounts were fully paid. The Company also received revenue from During the year, the Company recognized $259,495 (2013 - $367,419) of deferred revenue contribution for tenant improvements, these companies totaling $110,671 (2013 - $171,640), which is included in business community revenue towards its Action and $nil for equipment (2013 - $9,812), due to amortization of the related assets. Calgary and other programming. At year end, $nil (2013 - $75,000) of this amount is included in accounts receivable. All transactions are in the normal course of operations and have been recorded at the agreed to exchange amounts that have 10. Net assets invested in property, equipment, and intangible assets been negotiated between the parties.
2014 2013 12. Commitments and contingencies
Equipment lease Property and equipment 26,631 401,419 On January 1, 2010, the Company entered into an operating lease agreement for a term of 60 months for equipment. During the Intangible assets 158,436 173,702 year, the lease agreement was renegotiated and extended to December 31, 2015. The annual commitment is $17,100 per annum (2013 - $19,228 per annum). Invested in property, equipment, and intangible assets 185,067 315,626 Facility lease During the year, the Company’s lease agreement expired and a month to month lease agreement was signed for the period Amortization of deferred contributions related to property, equipment, and intangible assets 259,495 377,231 October 1, 2014 to December 31, 2014. Annual payments were approximately $20 per year plus operating costs. The lease is for Amortization of property and equipment (383,929) (501,053) space in the Calgary TELUS Convention Centre and the landlord is the City of Calgary Corporate Properties, a related party. The Amortization of intangible assets (95,062) (79,438) Company is currently in negotiations with the City of Calgary Corporate Properties to renew the lease. Gain on disposal of property and equipment 667 - The Company has a ten year rental agreement, effective June 15, 2009, with a third party corporation, for office space in the Neilson Block which is part of the TELUS Convention Centre facility. The term of the agreement is for ten years with an option to Deficiency of revenue over expenses (218,829) (203,260) not continue after the first five years. During the year, the Company agreed to continue the lease for another five years. There are no rental costs but the Company does pay operating costs. The Company has a lease for office space in the Neilson Block. The agreement is with the City of Calgary Corporate Properties, a related party. During the year, the Company’s lease agreement expired and a month to month lease agreement was signed for the period October 1, 2014 to December 31, 2014. The annual payments were $10 per year plus operating costs. The Company is currently in negotiations with the City of Calgary Corporate Properties to renew the lease.
066 · 2014 Annual Report Financial Statements · Calgary Economic Development Calgary Economic Development · 2014 Annual Report Financial Statements · 067 Notes to the Financial Statements Notes to the Financial Statements For the year ended December 31, 2014 For the year ended December 31, 2014
13. Financial instruments 13. Financial instruments (Continued from previous page)
General objectives, policies, and processes Liquidity risk The Board of Directors, through the audit committee, has overall responsibility for the determination of the Company’s risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company has management objectives and policies and, while retaining ultimate responsibility for them, it has delegated the authority for a planning and budgeting process in place to help determine the funds required to support the Company’s normal operating designing and operating processes that ensure effective implementation of the objectives and policies to the Company’s senior requirements on an ongoing basis. The Company ensures that there are sufficient funds to meet its short-term requirements, management. The Board of Directors receives quarterly reports from the Company’s senior management through which it taking into account its anticipated cash flows from operations and its holdings of cash and cash equivalents. In addition, the reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets. monies invested in short-term investments can be withdrawn on demand. The following table sets out the contractual maturities The Company, as part of its operations, carries a number of financial instruments. The nature of these instruments and the of financial liabilities: Company’s operations expose the Company to credit, interest rate, and liquidity risk. The Company manages its exposure to these risks by operating in a manner that minimizes its exposure to the extent practical. There have been no significant changes 0-90 days 91-365 days Total from the previous year in the exposure to risk, policies, or procedures used to manage financial instrument risks. 2014 Credit risk Accounts payable 586,944 (11,815) 575,129 Credit risk is the risk that the Company will incur a financial loss because a contributor or counterparty has failed to discharge Accrued liabilities 90,589 3,895 90,589 an obligation. The Company is exposed to credit risk on its accounts receivable and accrued revenue. This risk is somewhat mitigated due to the fact that the accounts receivable comprises amounts due from the City of Calgary and the provincial and federal governments. To further mitigate this risk, the Company regularly reviews its accounts receivable list and follows up on Total 677,533 (11,815) 665,718 collections in a timely manner. The amount outstanding at the prior year end, which is the Company’s maximum exposure to credit risk related to the accounts receivable, are disclosed in Note 4 and summarized below. 2013
91 days Accounts payable 320,608 (12,000) 308,608 Current 0-30 days 31-60 days 61-90 days and over Total Accrued liabilities 12,075 - 12,075 2014 Trade accounts receivable 63,358 379,480 41,428 25,000 24,903 534,169 Total 332,683 (12,000) 320,683 Government receivables 18,226 - - - - 18,226 Other receivables 459 - - - - 459
Interest rate risk Total 82,043 379,480 41,428 25,000 24,903 552,854 The Company is exposed to interest rate risk arising from the possibility that changes in interest rates will affect the fair value of short-term investments. As at December 31, 2014 a 1% change in interest rate, with all other variables held constant would 2013 impact the (deficiency) excess of revenue over expenses by $50,171 (2013 - $15,623). Trade accounts receivable 110,000 155,210 137,958 - 6,250 409,418 Government receivables 44,749 - - - - 44,749 14. Defined contribution pension plan Other receivables 61,002 - - - - 61,002 The Company established a defined contribution pension plan for its salaried employees on January 1, 2000. The total expense incurred for the year ended December 31, 2014 was $127,729 (2013 - $120,743). Total 215,751 155,210 137,958 - 6,250 515,169
The Company is exposed to credit risk as a significant portion of the Company’s cash and cash equivalents are held at one 15. Advance to a related party chartered bank. As such, the Company is exposed to all the risks of that financial institution. During the year, the Company advanced Calgary Film Centre Ltd. (“CFCL”) $2,000,000 in the form of a promissory note for the The Company is also exposed to credit risk on its short-term investments which consist of an investment in the RBC Premium construction of the Calgary film studio. Subsequent to year end, the promissory note was cancelled and a grant agreement Money Market Fund. The RBC Premium Money Market Fund invests primarily in high quality, short-term (one year or less) debt between the Company and CFCL was completed. Under the terms of the grant agreement, the Company is to provide funds securities, including treasury bills and promissory notes issued or guaranteed by Canadian governments or their agencies, to CFCL for the purpose of the construction of the Calgary film studio. If CFCL fails to proceed with the Calgary film studio, the bankers acceptances, asset-backed commercial paper and commercial paper issued by Canadian chartered banks, loan agreement will be terminated and CFCL will be required to repay all unspent funds. companies, trust companies, and corporations. As such, the short-term investments are exposed to all the risks of the underlying securities. The maximum credit risk related to this is the carrying value of the short-term investments as disclosed in the Statement of Financial Position.
Credit concentration As at December 31, 2014, two members accounted for 51% of accounts receivable (2013 – three members, 40%). The Company believes that there is no unusual exposure associated with the collection of these amounts. The balance of accounts receivable is widely distributed among the remainder of the Company’s large membership base. The Company performs regular credit checks and provides allowances for potentially uncollectible accounts receivable.
068 · 2014 Annual Report Financial Statements · Calgary Economic Development Calgary Economic Development · 2014 Annual Report Financial Statements · 069 Notes to the Financial Statements For the year ended December 31, 2014
16. Controlled organization The Company controls its wholly owned subsidiary, the Calgary Film Centre Ltd (“CFCL”). On June 23, 2014, the Company changed its name from The Alberta Creative Hub to Calgary Film Centre Ltd. The companies are under common management. CFCL has not been consolidated in the Company’s financial statements, but its financial statements are available on request. CFCL was incorporated under the authority of the Alberta Companies Act on December 17, 2009 and commenced operations on January 1, 2010. The Company is registered as a not-for-profit organization and thus is exempt from income taxes under the Income Tax Act of Canada. It was formed with the primary purpose of supporting the growth and development of the film, television, media, and other creative industries. The following is condensed financial information of CFCL as at and for the years ended December 31, 2014 and December 31, 2013. This information was prepared using the same accounting policies as Calgary Economic Development Ltd.
2014 2013
Financial position Total assets 10,372,840 784,355 Total liabilities (5,551,870) (781,440)
Total net assets 4,820,970 2,915
Statement of operations Revenue 60,045 22,680 Expenses (57,646) (22,680)
Excess of revenue over expenses 2,399 -
Cash flows Cash flows from operating activities (98,675) (43,488) Cash flows from investing activities 7,000,000 - Cash flows from financing activities (5,750,986) -
Increase (decrease) in cash and cash equivalents 1,150,339 (43,488)
CFCL received an advance of $2,000,000 in the form of a promissory note from the parent Company for the construction of the Calgary film studio. Subsequent to year end, a grant agreement between the parent Company and CFCL was completed and the promissory note was cancelled (Note 15). During the year, City of Calgary (“City”) approved funding to CFCL of $10,000,000 for the development of the Calgary film studio. CFCL received an initial grant of $5,000,000 for the purchase of the land for the film studio, and the City will pay out the balance of up to $5,000,000 of the grant based on reimbursement of actual eligible costs. CFCL has entered into a management agreement with the Company that sets out the terms and conditions by which the Company is to provide services of its employees in relation to general day to day administration and management services in connection with the business of CFCL (Note 11).
070 · 2014 Annual Report Financial Statements · Calgary Economic Development calgaryeconomic @lifeincalgary
@calgaryeconomic calgary-economic -development
Calgary Economic Development ph 403 221 7831 731 1st Street SE fax 403 221 7828 calgaryeconomicdevelopment.com Calgary Alberta Canada T2G2G9 toll free 1888 222 5855 072 · 2014 Annual Report · Calgary Economic Development