The Vancouver Business Thread

[craneSpotter]

Vancouver potash company to buy Regina wastewater

By Nelson Bennett - BIV - Wed Jun 27, 2012

Western Potash Corp. (WPX:TSX) will pay the City of Regina $200 million over 45 years for treated wastewater to be used at a new potash mine south of the Prairie capital.

Under an agreement signed between Regina and Western Potash, the Vancouver-headquartered company will receive 60,000 cubic metres of treated effluent daily from the city’s wastewater treatment.

It will be piped 30 kilometres southeast of Regina to the company’s Milestone Potash project and used in the process of bringing potash to the surface. The Milestone Project mine is not expected to be in operation until 2016.

Western Potash will fund the capital costs – about $120 million – for building a pump house and pipeline and will use between 40% and 70% of the city’s treated wastewater, which currently goes into Wascana Creek.

“Western Potash is delighted to have reached this agreement with the City of Regina and is pleased to be working together to sustainably innovate the potash solution mining process,” said Western Potash Corp. CEO Patricio Varas. “There are certainly no other potash solution mines in the world utilizing treated waste water.”

Article

Seems like an innovative solution...

[mezzanine]

B.C. to raise carbon tax, price of gasoline July 1

Shawn McCarthy - Global Energy Reporter
The Globe and Mail

Environment groups have applauded the province’s carbon levy, which was offset by cuts to personal and corporate income taxes when it was introduced four years ago. The carbon tax has contributed to a 15 per cent drop in British Columbians’ use of petroleum-based fuels since it was introduced in 2008, said an Ottawa-based think tank, Sustainable Prosperity, in a report issued Wednesday.

....

But in its report on the levy, Sustainable Prosperity says it has led to substantial reductions in greenhouse gas emissions that are linked to climate change, but has had no negative impact on economic growth, as some critics feared.“B.C.’s GDP growth has outpaced the rest of Canada’s (by a small amount) since the carbon tax came into effect – suggesting that it has not adversely affected the province’s economy,” the report said.

While some motorists may disagree, the Sustainable Prosperity report concluded the GHG improvements was achieved with little economic disruption. The province kept its promise to make the levy revenue-neutral by implementing other tax cuts that more than made up for the additional burden at the pump.

[Prometheus]

Regarding the article on the current warehouse building boom, the following quote stood out:

"Avison Young principal Rob Gritten believes the recent boom in warehouse construction marks the end to a lull that started during the 1990s when the New Democratic Party was in power and many companies chose to locate in Alberta."

My god, two decades later and we are still just recovering from that lost decade. It is frightening to see that British Columbians seem hell bent on returning to those dark times, if recent polls are accurate. How long will it take to recover next time? How long until British Columbia is finally allowed to reach its potential and flourish?

[WarrenC12]

Interesting news about MDA. I know somebody who recently took another job after a number of years there. Said that they had regular layoffs, staff was shrinking, no chance to move up, etc.

I think the NDP thing was a little fearmongering for the next election. The 90s was a lost decade for sure, but I think we recovered shortly after the Liberals came in and reduced taxes for everybody.

[red-paladin]

Originally Posted by craneSpotter

Richmond-based MDA to buy California satellite company for $875 million

Article

Excellent news!

[GeeCee]

Radical Entertainment is closng their doors.

http://kotaku.com/5922129/report-prototype-creators-shutting-down

[SpongeG]

not too good

89 laid off at Vancouver video game company Radical Entertainment

The employees at Vancouver’s oldest gaming industry, Radical Entertainment, had no idea they were walking in to their mass exodus Thursday.

“It was business as usual,” one woman, who didn’t want her name used, said.

This is yet another hit to Vancouver’s ever-declining gaming industry as 89 people were laid off from the 20-year-old company.

Many Radical employees left their Terminal Avenue location Thursday carrying their belongings in white boxes and made their way to gather at a pub down the street.


...


Read more: http://www.theprovince.com/life/laid+Van...ainment/6858008/story.html#ixzz1z9y2rCPg

[Hed Kandi]

Originally Posted by GeeCee

Radical Entertainment is closng their doors.

http://kotaku.com/5922129/report-prototype-creators-shutting-down

Radical's games received mediocre reviews at best,ultimately contributing to the company's poor game sales and their inevitable demise.

These days gamers are demanding a higher quality product. Unless a studio consistently pumps out AAA blockbuster's, their chances of long term industry survival are nil.

[gillty]

Originally Posted by Hed Kandi

Radical's games received mediocre reviews at best,ultimately contributing to the company's poor game sales and their inevitable demise.

These days gamers are demanding a higher quality product. Unless a studio consistently pumps out AAA blockbuster's, their chances of long term industry survival are nil.

A very premature look at the industry overall, ultimately such 'AAA' blockbusters are unsustainable; some of the biggest success stories in the industry right now are in the B-Tier budget space found on the PC and mobile, where alternative monetization methods are being pioneered.

As for Radical, this is but one studio in recent years that has fallen to their parent company, Activision, misaligned expectations.

Furthermore as for the industry in Vancouver I'd expect to see further downsizing in the future, specifically at Relic Entertainment (THQ) and perhaps Blue Castle (Capcom). Both studios are owned by parent companies going through particularly dire periods, THQ despite owning some of the highest quality IP's in the industry is on the verge of failure from a failed massive investment in their U-Play tablet for the PS3 and 360.

[gillty]

35 more jobs gone to Ontario as Rockstar Vancouver (Bully, Max Panye 3) closes.

NEW YORK--(BUSINESS WIRE)--Jul. 9, 2012-- Rockstar Games, a publishing label of Take-Two Interactive Software, Inc. (NASDAQ: TTWO), today announced that it is expanding its development capabilities in Toronto, and has opened a larger, new, custom-built facility in Oakville, Ontario for the Rockstar Toronto team. The studio expansion is being supported by the Ontario government. Financial details were not disclosed. In conjunction with the expansion, Rockstar Games is moving its 35-person Vancouver-based development team to the new facility over the next six months, and is offering all members of that team the opportunity to join Rockstar Toronto or take positions in other Rockstar studios.

Rockstar Toronto has worked on several critically acclaimed Rockstar Games titles, including the recently released Max Payne 3, as well as The Warriors and the Grand Theft Auto series. Rockstar Vancouver has worked on Bully and Max Payne 3.

"Expanding Rockstar Toronto and bringing our Canadian development talent together under one roof underscores our commitment to building world-class teams that can make the kind of groundbreaking entertainment experiences Rockstar Games is known for," said Jennifer Kolbe, Vice President of Publishing and Operations for Rockstar Games. “We believe a single Canadian team will make for a powerful creative force on future projects. We plan to add more than 50 new positions to our combined Canadian team, and are pleased to be entering into this strategic partnership with the Ontario government."

"Rockstar Games' decision to expand its Toronto studio demonstrates the confidence in Ontario's leading-edge digital gaming industry. By providing financial support and tax incentives to help companies grow, we maximize Ontario's competitiveness in the global economy and support job creation," said Brad Duguid, Minister of Economic Development and Innovation.

http://www.businesswire.com/news/home/20...Games-Expands-Toronto-Development-Studio

[Hed Kandi]

Originally Posted by tGill

35 more jobs gone to Ontario as Rockstar Vancouver (Bully, Max Panye 3) closes.

http://www.businesswire.com/news/home/20...Games-Expands-Toronto-Development-Studio

A lot more than 35 people worked on Max Payne 3. Where did the rest of the team go?

Anyhow, this news is somewhat disheartening. The BC government needs to step up their tax break incentives for game developers or else Vancouver will continue to lose jobs.

[jlousa]

Tax incentives suck period, they need to be outlawed at the national level to avoid this, even better it needs to be done on the international level.

[invisibleairwaves]

Originally Posted by jlousa

Tax incentives suck period, they need to be outlawed at the national level to avoid this, even better it needs to be done on the international level.

This. I really want to see the local video game development industry thrive- I was looking for work in the industry at one point, and might do so again in the future- but isn't it weird how people complain about governments being in bed with corporations, and then turn around and support something like this?

Having successful video game developers in the area would be great. Having successful video game developers who aren't dependent on special treatment from the government would be even better.

[golog]

Originally Posted by jlousa

Tax incentives suck period, they need to be outlawed at the national level to avoid this, even better it needs to be done on the international level.

That being said, Christy Clark axing the HST -- to subsidize hairdressers, restaurants, and residential developers instead of keeping it to remove the drag on investment that supports higher level jobs -- didn't help. It'll be the movie industry too; I for one can't remember the last commercial shot locally, and that basic stuff is crucial to supporting the giant projects.

If it doesn't have to be done in Canada (anything the CRTC has power over), then companies need the freedom to export as easily as their competitors are able to import into Canada.

The one pitch left for Vancouver is time zone, immigration standards, and acceptable climate/infrastructure/etc... although one brownout or two out of BC Hydro which is totally predictable the way it's being looted, and we might as well be Mexico

[craneSpotter]

Vancouver non-residential construction investment rises

Glen Korstrom
BIV Wed Jul 18, 2012

Increasing investment in office towers is likely to fuel non-residential construction investment in the next couple years, Vancouver Regional Construction Association president Keith Sashaw told Business in Vancouver July 17.

He pointed to Statistics Canada data, also released July 17, noting commercial building investment spending has increased for the second quarter in a row....

Compared with 2011’s second quarter, however, non-residential construction investment was 8.7% lower in the second quarter of 2012.

Watch for a larger feature in next week’s BIV on 20 upcoming office tower developments proposed or under construction across Vancouver.

[craneSpotter]

FedEx Freight to build $20 million-plus warehouse in Surrey

Glen Korstrom
BIV Wed Jul 18

FedEx Freight announced July 17 that it would spend more than $20 million to build a 40,000-square-foot warehouse in Surrey.

That’s the largest investment that the FedEx Corp. (NYSE:FDX) subsidiary has ever made in North America...

The new warehouse is expected to create about 50 jobs.

[NewfBC]

Originally Posted by craneSpotter

FedEx Freight to build $20 million-plus warehouse in Surrey

Glen Korstrom
BIV Wed Jul 18

"FedEx Freight announced July 17 that it would spend more than $20 million to build a 40,000-square-foot warehouse in Surrey.

That’s the largest investment that the FedEx Corp. (NYSE:FDX) subsidiary has ever made in North America...

The new warehouse is expected to create about 50 jobs."

$20 million, FedEx's biggest investment in North America? That seems hard to believe.

Ron.

[hollywoodnorth]

Originally Posted by NewfBC

"FedEx Freight announced July 17 that it would spend more than $20 million to build a 40,000-square-foot warehouse in Surrey.

That’s the largest investment that the FedEx Corp. (NYSE:FDX) subsidiary has ever made in North America...

The new warehouse is expected to create about 50 jobs."

$20 million, FedEx's biggest investment in North America? That seems hard to believe.

Ron.

That’s the largest investment that the FedEx Corp. (NYSE:FDX) subsidiary has ever made in North America...

[en2]

Another (small) blow to the Vancouver gaming industry...

http://www.joystiq.com/2012/07/18/capcom-vancouver-loses-7-percent-of-its-staff/

Capcom Vancouver lays off 20 staffers [update]
by David Hinkle on Jul 18th 2012 7:30PM

Dead Rising 2 developer Capcom Vancouver – previously known as Blue Castle Games – has issued layoffs today. Seven percent of the total work force in the studio has been let go, according to a tweet from the studio, which noted the decision was "a result of unsuitable fit with the studio goals."

We're not quite sure what that means, but we've reached out to Capcom Vancouver and Capcom at large for more information, and to find out if these layoffs will have any affect on the studio's new unannounced IP in development.

Update: Capcom sent over the following statement regarding Capcom Vancouver: "Capcom Vancouver has laid off 20 staff as part of its regular periodic assessment of overall studio goals. The studio is actively hiring talented staff to support its goal of delivering high quality games."

Source: @CapcomVancouver

[whatnext]

Originally Posted by en2

Another (small) blow to the Vancouver gaming industry...

http://www.joystiq.com/2012/07/18/capcom-vancouver-loses-7-percent-of-its-staff/

Never fear, Mayor Moonbeam is riding to the rescue:
http://www.vancitybuzz.com/2012/07/grego...-behind-vancouvers-digital-media-sector/

Nevermind that trying to buy these kind of jobs with tax incentives is a race to the bottom, and as easy as nailing jello to a wall. Too bad he has no interest in promoting resource extraction jobs which are something can't be taken away to a jurisdictions with more lavish tax credits.