Showing posts with label B.C. Pavilion Corporation. Show all posts
Showing posts with label B.C. Pavilion Corporation. Show all posts

Saturday, March 10, 2012

Exclusive: inside the B.C. government name game

Some observers of the government's snub of Telus over the B.C. Place Stadium naming sponsorship wonder why the government didn't just let Budweiser buy the name and be done with it.

Telus installed $10 million to $15 million worth of wi-fi and mobile phone systems and video screens as part of the deal it reached with B.C. Pavilion Corporation in March 2011. That $35 million to $40 million you've heard about is not all cash on the table. It relied heavily on the provision of goods and services. Now PavCo has to buy its way out with your money and mine. The only way it can soften the blow now is to designate Telus as an exclusive or official supplier.

But the bigger reason is that no provincial government building in B.C. can be named after Budweiser. Or Molson Canadian. Or Guinness. Or even the Sorrento, B.C.-made Crannog Back Hand of God Stout or Gael's Blood Potato Ale.

The province's Naming Rights Policy says government will not approve an opportunity for naming recognition:

"that involves an individual, business or organization whose main business is derived from the sale of alcohol, other than a provincial or national industry association that focuses on harm reduction regarding the responsible use of alcohol."


Yes, the province has a naming rights policy and applications are overseen by a little-known committee of bureaucrats (chaired by Executive Lead of Strategic Vendor Management Richard Poutney) under the Intellectual Property Program within the Ministry of Labour, Citizens’ Services and Open Government. You can read it here. However, the policy contains a loophole that opens the decision to political interference.

Section 4.5 of the policy says cabinet will decide on naming opportunities if:

(a) the size or visibility of the asset is of particular significance;
(b) the value of the contribution is greater than five million dollars;
(c) the asset is or will likely be the object of media attention, or is otherwise in the public eye;


All three apply in the context of the B.C. Place naming rights opportunity. The minutes for the committee's only meeting in 2011 (below) show that the Telus proposal to rename B.C. Place Stadium as "Telus Park" was not submitted to the committee. This was handled (or, perhaps, mishandled) solely by cabinet and, therefore, we may not know the details until 2026 or 2027 when the particular cabinet documents would become public.

What do you think? Should the naming of any and all provincial buildings in B.C. be vetted first by a committee that reports publicly (and doesn't wait for reporters to file a Freedom of Information request)? Should cabinet have a role, particularly when the bidder is a major donor to the ruling party or a major government contractor? (Telus donated more than $350,000 since 2005 to the B.C. Liberals and was given a $1 billion, 10-year government service contract in 2011.) And what happens if the chairman of the public body with the name up for sale has close ties with the corporation that wants to buy the name of the public building? (David Podmore's Concert Properties board includes two senior Telus executives and two senior officials from the Telecommunications Workers Union.)

It is, after all, taxpayers' money and taxpayers' own the buildings...

Province of British Columbia Naming Committee

Friday, March 9, 2012

Does "Brown out" mean lights out for Premier?

The shocking resignation of Peter Brown from the board of the B.C. Pavilion Corporation could be the beginning of the end for Premier Christy Clark's nearly year-old reign as Premier of British Columbia.

Brown was in New York March 9, while Clark was in Ottawa. Brown's name and profile disappeared from the B.C. Pavilion Corporation website at the end of the same week when Clark and Minister responsible Pat Bell publicly confirmed that the B.C. Place Stadium naming rights deal with Telus was cancelled. Telus had installed $10 million to $15 million of wi-fi stations, mobile phone antennas and video screens in the stadium as part of the deal that PavCo recommended to cabinet.

Through his Vancouver investment house, Canaccord, Brown has donated $312,230 to the B.C. Liberals since 2005 and backed George Abbott for the leadership of the party in the 2011 race. Brown was one of the biggest boosters of Gordon Campbell, who left the premiership after almost a decade and is now Canada's High Commissioner to the United Kingdom and Northern Ireland. Clark was sworn-in on March 14, 2011.

Brown has resigned before from a similar organization because of political interference.

Brown was vice-chairman of the Expo 86 Corporation and chairman of the B.C. Place Corporation, a PavCo predecessor which merged with the B.C. Development Corporation to form the B.C. Enterprise Corporation.

Brown resigned in April 1988 after he was accused by Premier Bill Vander Zalm's secretary David Poole of wining and dining Li Ka-Shing, the eventual winning bidder for the Expo lands. Brown admitted hosting Li's son Victor for dinner at his Point Grey home, but denied any wrongdoing. He offered a stinging rebuke of Poole, the most powerful unelected official in the Vander Zalm government.

"The dinner in my house was part of a purely proper program to encourage any bidder that we could to participate in the B.C. Enterprise bid process," Brown was quoted in the Vancouver Sun. "Any attempt to cast aspersions on that function by anyone is a bitter and petty act by someone who's proved before he's not sure what the rules are."


Brown was on the board of directors for the original North American Soccer League Vancouver Whitecaps. He is also a collector of Group of Seven masterpieces.

It could be theorized that Brown's resignation in 1988 was part of the slow process that led to the eventual fall of Vander Zalm, who was finally forced out in 1991 by the Fantasy Gardens conflict of interest scandal.

Could the fumbling of the renaming of B.C. Place be the undoing for Clark?

UPDATE: On March 12 I received the following email from Peter Brown, who declined my March 10 request for an interview ("At 70 years of age I am trying to get my privacy back which is more difficult than it should be," Brown wrote, via his iPad.)

"It would be nice to be in a profession like yours where rampant poetic license was practiced. Here are some facts that you neglected in your blog:

"I did not back George Abbott for leadership of the Liberal Party as I believed he never had a chance.

"I entertained every bidder for BC Enterprise in my home and Grace McCarthy, the Minister responsible, was always present.

"That newspaper reference was caused by David Poole's attempt to improperly influence the privatization of the assets of BC Enterprise. This was a failed attempt by him. I had always agreed to serve as Chairman of BC Enterprise until the principle assets were privatized which was concluded with the sale of the Expo Lands. The government of the day had nothing to do with my decision.

"My current resignation is as I publicly stated. I agreed to go on the board of PAVCO to oversee the complex construction of two major Vancouver icons. That job is complete and I believe that board representation should now come from people in Tourism and Marketing - neither of which are my expertise. The decision was compounded by the fact that I have taken on too many boards and committees and need to cut back on boards like this where my contribution going forward is less relevant.

"As to my politics, I think it should be obvious to everyone that I am a supporter of governments who believe in free trade and free markets and believe the best results for all citizens will be generated by free enterprise alternatives. In this case, even you should be able to ascertain my political choice as the only one possible which makes the inferences in your article ridiculous. All the more so when one considers choices in the upcoming election and the critical impact the wrong decision could have on our economic well being."

Peter Brown


(Bob's notes: Brown's Canaccord Capital donated $11,500 to Abbott's campaign on March 28, 2011. No donations to any other contestant are listed on the Elections B.C. database. Canaccord donated $25,000 to Vision Vancouver in 2009. The Non-Partisan Association is the civic free enterprise party in Vancouver. I asked for, and Brown declined to supply me, the date on which he tendered his PavCo resignation and the contents of the resignation letter.)

Saturday, March 3, 2012

The name remains the same



After announcing a three-year, $3 billion investment in B.C. (enabled by its 10-year, $1 billion provincial government supply deal), Telus CEO Darren Entwistle told me that the company invested between $10 million and $15 million of goods and services to make B.C. Place Stadium the world's first "all-digital" stadium.

Yet, it remains B.C. Place. The naming rights deal that was supposed to happen last fall didn't. Maybe it will never happen, judging from what Entwistle (who is pictured on the right with NDP leader Adrian Dix) told reporters on March 2.

"That question as it relates to sponsorship is best posed to (B.C. Pavilion Corporation). That's their responsibility and ultimately their decision. In terms of Telus's perspective, we're tremendously excited about the part we played to bring that stadium to fruition from a technology perspective. The technology that's been infused into that stadium will create an unparalleled fan and technology experience.

"For us right now we're just focussed on the technology component of that solution. Again, any sponsorship conversation is best had with the PavCo organization. At the end of the day, as a public organization, we're deploying technology. Certainly there will be a commercial return associated with that and we'll work that out in a technology supplier agreement with PavCo which we're in the progress of doing right now."


Backbench MLA Colin Hansen was the only Liberal politician at the news conference. No executives from B.C. Pavilion Corporation, which operates B.C. Place, were seen. On March 2, Telus also placed full-page ads in Vancouver newspapers promoting its work in B.C. Place. There was even a strategically placed dogwood blossom in the upper right corner. (Dogwood is the provincial flower.)

The Vancouver Whitecaps, who are sponsored by Telus competitor Bell, are the stadium's main sports tenant and start their first full-season in B.C. Place on March 10, playing on what the Major League Soccer franchise calls "Bell Pitch."

B.C. Place workers were recently issued uniforms that include the new B.C. Place logo. They had received blank shirts and jackets before the Sept. 30, 2011 reopening, in anticipation of the name change sometime before the 99th Grey Cup. PavCo even paid more than $50,000 to remove the old B.C. Place external sign and commission a new one bearing the Telus name.

My Feb. 23 interview request to PavCo chairman David Podmore and CEO Warren Buckley was referred to Pat Bell, the Minister Responsible, who told me:

"It may or may not take on a corporate name. It is B.C. Place. The fact it has B.C. Place on the uniforms is something we were contemplating regardless. The name of the facility is B.C. Place. It may have a corporate sponsor, it may not, but it is B.C. Place… It is B.C. Place for us, that's what we've called it for a long, long time. British Columbians know it as B.C. Place."


So there you have it. Telus, which was supposed to be the naming rights sponsor, is still negotiating a contract so it can be called an official supplier. The six-month-old B.C. Place logo has finally shown up on the uniforms of staff.

The sale of naming rights was supposed to help lessen the burden on the taxpayer for the $563 million renovation.

Yet another broken promise? Or a casualty of the telecom marketing wars?

Thursday, December 1, 2011

Suite dreamers at Grey Cup



Nearly every seat was filled for the 99th Grey Cup at B.C. Place Stadium. Every suite on level 3 was. If you were lucky enough to be on level 3, you would've seen legendary B.C. Lions' quarterback (and Angelo Mosca combatant) Joe Kapp and KISS's Gene Simmons and his Canadian wife Shannon Tweed. Who were the occupiers? Here's the exclusive list.

BC Place Suite: Premier Christy Clark and visiting Premiers and dignitaries
1 Davis Management
2 Pacific Newspaper Group
3 Dueck GM
4 BMO
5 Rio Grande
6 Wayne Davies
7 Jardine Lloyd Thompson
8 Pepsi
9 Scotiabank
10 BCLC
11 BCLC
12 Rosedale on Robson
13 Macklem Mortgage Service
14 Walker Group
15 Petcurean Pet Nutrition
16 PCL
17 TSN
Goalpost Scotiabank
Balcony Telus
20 Sandman Hotel Group
21 Telus
22 Safeway
23 Scotiabank
24 Mackenzie Investments
25 BC Place
26 Chameleon Enterprises 26
27 Molson
28 Weststone Capital
29 Atlas Truss
30 Blakes
31 Nissan
32 Stresscrete
33 ZLC Financial
34 Trades Labour Corp
35 Orange Capital
36 Knight Inlet Grizzly Tours
37 CT Control Temp
38 Imining.com
39 Encana
40 Sussex Insurance
41 Super Save Disposal
42 Norcon
43 Scotiabank
44 Telus
45 Quorum Construction
46 Terus Construction
47 Mail-o-Matic Services
48 Canadian Tire Corp
49 Drake Towing
50 Shadow Lines Transport
51 B.C. Pavilion Corporation
52 Whitecaps

Monday, November 7, 2011

Steel company names PavCo in lawsuit




More trouble for B.C. Place Stadium, where the Sept. 30 reopening was anything but smooth.

The French headquartered cable erection company hired by a Quebec steel subcontractor is suing for almost $6.5 million. B.C. Pavilion Corporation, the taxpayer-owned stadium’s operator, is named as a defendant.

Freyssinet filed a lawsuit in British Columbia Supreme Court on Oct. 31, charging Canam with breach of contract, breach of statutory trust and equitable fraud. Problems have been festering for many months. Here's my update from Aug. 4.

PCL Constructors and Canam Group were awarded a $122,864,581 contract on Nov. 18, 2009, according to the Freyssinet court filings. Canam hired Freyssinet as a subcontractor for $30,124,377, “but were unable to agree on all terms.”

"Nevertheless, Freyssinet commenced work on the improvement in July 2010 and on Aug. 23, 2010, Canam and Freyssinet signed a subcontract, backdated to Nov. 20, 2009," said the lawsuit. "However the subcontract was signed without Canam and Freyssinet agreeing on the cost of the erection work budget."

Freyssinet claims Canam failed to keep work on schedule, directed labour and equipment without Freyssinet’s knowledge or consent, interfered with Freyssinet foremen and “permitted rates from Montacier International, a company related to Canam, for labour for erection of the cable which were higher than agreed upon.”

Canam announced in November 2010 that it would “follow an alternate method of erection of the cable, without consulting with Freyssinet and without Freyssinet’s consent.”

"Through 2010, payments were made by Canam on account of the invoices, but Canam then wrongfully ceased making payment to Freyssinet."

Freyssinet says it is owed $6,466,892 by Canam, which claims Freyssinet owes it $24,137.756.44.

A Sept. 29, 2011 letter by Canam alleged: "Due to Freyssinet's negligence in preparation of the cost budget and the construction methodology, there was a significant cost overrun which Canam was required to bear in the fixed price contract with PCL."

"Canam intentionally and wrongfully made the demand to recover alleged damages for financial losses arising from the completed work. This was a wrongful, tortious act constituting equitable fraud."

As of Oct. 19, certificates of completion had not been issued for the head contract. The stadium reopened Sept. 30.

The Freyssinet claims have not been tested in court. I am waiting for responses from Canam and PavCo.

Saturday, October 29, 2011

Time running out for B.C. Place name?



A news conference is in the planning stages for Tuesday, Nov. 1 at B.C. Place Stadium for an announcement regarding the B.C. Lions and Vancouver Whitecaps, who are expected to be involved in the event because they're the primary tenants of the stadium.

The silence has been deafening. Neither Telus, Cisco nor B.C. Pavilion Corporation's public relations firm Pace Group have responded to my queries to confirm or deny the event or their involvement.

Telus is the telecommunications and technology provider at B.C. Place and Cisco's StadiumVision is the "video and digital content distribution solution" (read: the software that runs the multitude of video screens, large and small). Before the Sept. 30 reopening, the major Telus hardware and wiring installation at B.C. Place was cloaked in secrecy. So much so that it was even code-named "Project Frog."

Telus also has a 10-year, $1 billion contract to supply telecommunications services to the British Columbia government, Crown corporations BC Hydro, BC Lottery Corporation and ICBC and regional health authorities.

When I asked Oct. 14 if his company bought the naming rights, Telus chief financial officer Robert McFarlane would neither confirm nor deny. He would only say there would be a "coming out party" for Telus at B.C. Place in the near future.

There may be a reason for the secrecy. PavCo awaits the results of the B.C. Government and Service Employees' Union local 1703 vote on a new contract. The two sides reached a tentative deal on Oct. 24. Voting is supposed to end Nov. 1. There is no pay raise, but the workers apparently got the job security and anti-bullying provisions they wanted. The catch? The contract, if ratified, would expire May 31, 2012.

Nov. 1, coincidentally, was also the original date set by PavCo for the reopening of B.C. Place. PavCo chairman David Podmore moved the date forward by a month in February, despite problems installing roof-support cables. The domino effect meant crews didn't begin installing roof fabric until June. The roof opened and closed as advertised Sept. 30, but the sealing job was not complete and leaks continued well into October.

Read more about the controversial $563 million renovation of the 1983-opened stadium here.

Saturday, October 22, 2011

Caps, Leos get no respect from landlord



No respect.

The immortal words of legendary standup comedian Rodney Dangerfield.

It seems neither the Vancouver Whitecaps nor the B.C. Lions can get the full respect of their landlord, B.C. Place Stadium.

I shot these photographs Oct. 22 from the concourse of Rogers Arena. It is a solitary flag affixed to one of the cables on the east side of B.C. Place's roof. It's ostensibly there to offer a visual signal of the wind direction. Wind is key for B.C. Place, as it can sometimes be the deciding factor for opening or closing the retractable roof.

Look closely. The flag is neither a Whitecaps nor a Lions flag. (As you can see, there is plenty of room for two... or two dozen, for that matter.)

It is the flag of the Vancouver Canucks, emblazoned with Johnny Canuck.

The Canucks don't play at B.C. Place. They have their own venue, across Griffiths Way at Rogers Arena.

No respect.

Saturday, October 15, 2011

When will they tell us about B.C. Place's new name?



Executive vice-president and chief financial officer Robert McFarlane is the second in command at Telus, the right-hand-man to CEO Darren Entwistle.

On Oct. 13, he was on Premier Christy Clark's right side at the podium for the Grey Cup festival news conference at the Vancouver Convention Centre, a building serviced by Telus competitor Bell.

I caught up with McFarlane afterward to find out why Telus has kept quiet its involvement in B.C. Place Stadium's $563 million renovation.

Telus is the prime advertiser at the stadium and provider of technology and telecommunications. Sources have told the Sport Market since last spring that the telecom giant is the naming rights sponsor in a deal heavy on value-in-kind -- goods and services. Expect that to be finally announced in the week or two after the Whitecaps pack-up their Bell Pitch signs when they end their first Major League Soccer campaign on Oct. 22.

McFarlane did a good job of keeping mum on the topic, but hinted strongly toward the big announcement to come when I asked him.

"There will be a time for the coming out party on the technology, etcetera…" McFarlane said. "There is still last minute things or next to last minute things, are still being done and when it's all complete and we're ready, I'm sure, we'll have a coming out."

Asked about the naming rights and whether it will be Telus Park or Optik Place, McFarlane said: "Those would be great names, but unfortunately I can't comment on them."

McFarlane did reveal that Telus technicians didn't get into the stadium until four days before the Sept. 30 reopening to do their final work on the mobile phone network.

Is B.C. Place inching closer to a strike?

Is B.C. Place Stadium one step closer to a strike?

Local 1703 of the B.C. Government and Service Employees' Union, which represents ushers, security guards and maintenance workers, was scheduled to restart talks with B.C. Pavilion Corporation on Oct. 14. But the two sides did not begin meetings until 1 p.m.!

"That seems odd," said a source who did not want to be identified. "I hear it's going nowhere fast."

The union voted 89 percent in favour of a strike last month. If talks break down, then the union can declare 72-hour strike notice. The next event in the stadium is the Vancouver Whitecaps' last home game of their first Major League Soccer regular season on Oct. 22.

Workers are not getting any pay raise, as per the government's wage freeze, but they want job security and anti-bullying language in their contract.

The last contract expired May 31.

Premier Christy Clark seemed oddly optimistic in a media scrum after the Oct. 13 Grey Cup festival news conference at the Vancouver Convention Centre. But she has been known for her naivete and lack of tight grasp on policy.

Stay tuned for developments.

Monday, October 10, 2011

Dress accordingly when going to B.C. Place



If you're going to see the Vancouver Whitecaps host D.C. United on Oct. 12, wear a rain jacket and bring an umbrella. In fact, this umbrella hat could be the most appropriate attire for any event at B.C. Place Stadium for the time being.

Oh, the new retractable roof of B.C. Place Stadium is bound to be closed for most of this fall for the obvious seasonal weather. But after several fans at the B.C. Lions' Oct. 8 win over the Calgary Stampeders got wet, B.C. Pavilion Corporation cannot guarantee a dry experience. Workers are still sealing the roof from the elements.

Should we be surprised? British Columbia has a long history of leaky buildings.

Expo 86 modular pavilions were leaky and needed patching. Same for the Expo Centre, now known as Science World, after it opened in 1985. There was a billion-dollar epidemic of leaky condominiums because of shoddy 1980s and 1990s workmanship. An estimated 65,000 dwellings had leaks that rotted walls. Former Premier Dave Barrett conducted an inquiry into the scandal.

As the 2010 Winter Olympics approached, B.C. Place Stadium’s 1982-installed, air-supported roof needed constant care from maintenance workers. Many gray garbage cans were redeployed from trash catching to drip catching. (That original roof was inflated in November 1982, more than six months before it opened, affording workers a shield from the elements while they finished the building.)

B.C. Pavilion Corporation is blaming the weather for the leaks after reopening from a $563 million renovation. But that is not the root cause.

Minutes of the B.C. Pavilion Corporation construction committee in August 2010 show the stadium was on-track for a Nov. 1, 2011 “substantial completion.” Owner’s representative Roy Patzer called the schedule “tight.” Then, suddenly, on Feb. 7, 2011, PavCo chairman David Podmore announced a Sept. 30 reopening -- a full month sooner.

When Podmore announced the accelerated opening, the governing B.C. Liberal Party was in the middle of a leadership campaign to replace the unpopular Premier Gordon Campbell. The successor, who turned out to be Christy Clark, was expected to call an election for October. There even is an internal government document called "Implications of a Fall Election" that contemplated a Sept. 14 election call and Oct. 12 voting day. That issue note was written Feb. 9 and dated Feb. 10. So it's not a great leap of logic for the stadium's reopening to have been a photo opportunity on the election trail.

Within a matter of weeks of Podmore's proclamation, construction was in turmoil. The installation of roof fabric was supposed to begin in February, but was delayed to April and then until June. Quebec-based steel supplier Canam Group reported to shareholders that its Structal division suffered a $25 million cost overrun and blamed it on French cable installer Freyssinet. Architects, engineers and builders had to shuffle work schedules. The B.C. Lions and Vancouver Whitecaps were chomping at the bit to return downtown. It would have been a major embarrassment for the two main tenants to have delayed their moves to B.C. Place after announcing their schedules.

Under the original schedule, crews would have enjoyed the long, mostly dry days of August to methodically put the finishing touches on B.C. Place’s roof. Instead, they had to battle the September and October rains. More than a week after the stadium's reopening, crews are still welding and sealing the fixed fabric panels.

What’s more, leaks were a problem for many months after Commerzbank Arena opened in 2005. The Frankfurt stadium’s retractable roof technology is at work in Vancouver.

After the reopening night gong show that subjected paying customers to long lineups at ticket booths and concession stands and a lack of food and beverage supplies, delaying the opening seems like one of those "hindsight is 20/20" thoughts.

As it is, Telus has delayed the announcement that it is the naming rights sponsor for seemingly pragmatic reasons. The multi-year, multimillion-dollar deal will include some cash, but it will largely be what's called "value in-kind" or goods and services in lieu of cash. Technicians are still installing telecommunications gear and teaching B.C. Place staff how to use the new equipment. Cisco is a key contractor working with Telus on the StadiumVision media management system that includes the shoebox-style, centre-hung scoreboard (what I call the Titanic Tube Under the Tarp.) Telus is using the screens at B.C. Place, both big and small, but is understandably reluctant to attach its name to the building amid what can be termed a rocky reopening. Why show off the expensive bells and whistles before you're confident they'll ding and toot properly? Why would Telus, a combatant in the telecom marketing war, want to risk embarrassment?

PavCo is hoping that all the glitches will be forgotten by Nov. 27 when the stadium hosts the 99th Grey Cup, for which the government paid $1.88 million to the Canadian Football League for hosting rights.

Expect a glitzy press conference near the end of October or start of November for the corporate renaming of B.C. Place. Will we have to dress accordingly?

Thursday, September 29, 2011

Exclusive: B.C. Place's new look

Behold, the new logo for B.C. Place Stadium, which reopens Sept. 30 from a $563 million, taxpayer-funded renovation.

The two-tone blue design incorporates stylized versions of the new roof-support masts and cables that now figure prominently on the Vancouver skyline and will nicely complement Major League Soccer's Vancouver Whitecaps similar color scheme.

By virtue of playing at least 17 times a year in B.C. Place, the Whitecaps will be the 1983-built stadium's prime tenant. This logo replaces the 2006 design of the fabric domed roof that was deflated in May 2010 and removed.

Documents obtained under Freedom of Information show that Karacters Design was paid $23,030 on Feb. 25 for work on a logo.

The word "place" is a key word in the logo. Some or all of this insignia is a place-holder until the stadium's new corporate-sponsored name is revealed. Frontrunner Telus is the official telecommunications goods and services provider and plans to heavily market its Optik TV service on the giant, shoebox-style, centre-hung scoreboard. B.C. Pavilion Corporation chairman David Podmore did not deny Telus would be the naming rights purchaser when he was asked on July 31 and Sept. 7.



Saturday, September 24, 2011

B.C. Place workers set strike vote

B.C. Place Stadium's unionized workers were told Sept. 23 in a members' only meeting at the YWCA Hotel that talks with B.C. Pavilion Corporation have reached an impasse.

Local 1703 of the B.C. Government and Service Employees Union has set Sept. 29 for a strike vote. If the membership agrees, then a strike would not happen for at least 72 hours.

The stadium's Sept. 30 reopening for the B.C. Lions vs. Edmonton Eskimos would not be affected. It is unclear at this point whether the Vancouver Whitecaps' first match on Bell Pitch in the Telus-sponsored stadium against the Portland Timbers could be behind picket lines on Oct. 2 if PavCo refuses to negotiate. Empire Field would be a logical emergency backup. BCGEU spokeswoman Karen Tankard said a strike is not desired. The union wants leverage to bring PavCo back to the bargaining table to achieve a new contract.

"There is no risk (of a strike on reopening night)," Tankard said. "We want B.C. to enjoy opening night, our members want to work and enjoy opening night.

"We don't want to go on strike, we want a fair collective bargaining agreement."

Sources tell me Local 1703 and PavCo have not held a scheduled bargaining session since breaking-off before dawn Sept. 8. Even then, mediator Mark Brown was shuttling back and forth between the bargaining teams in separate rooms. They weren't meeting face-to-face!

Brown has since met separately with the sides. No pay raise is being offered, as per the central government directive of pay freezes. Tankard said Local 1703 is willing to keep the same pay rates, but the dispute is about job security. She said Genesis Security now has 20 people doing jobs once done only by union members.

The union wants the new contract to contain anti-bullying language, but management is not budging. Premier Christy Clark, while a talkshow host at CKNW radio, led an annual province-wide anti-bullying campaign by selling pink T-shirts.

"(The Premier is) the Queen of Pink and her own Crown corporation is turning down anti-bullying language!" said one member who did not want to be identified.

The collective bargaining agreement expired May 31. The union includes 20 to 25 full-time staff, 30 part-timers and 300 event-specific staff.

In February 2005, BCGEU workers went on strike, delaying set-up for the annual boat show. Labour ministry intervention enabled settlement and prevented cancellation. Security guards, housekeepers, ushers and technicians approved a four-year deal in May 2007 with a 9.5 percent raise and signing bonus.

See the union members' update below.

More to come...

BC Pavilion Corporation Bargainig Bulletin 23 Sept 11

Thursday, September 8, 2011

Inside B.C. Place Stadium: the devil's in the details

B.C. Place Stadium is supposed to be reopened for the B.C. Lions to host the Edmonton Eskimos on Sept. 30 and the Vancouver Whitecaps to host the Portland Timbers on Oct. 2.

As I saw on a Sept. 7 tour, there is much to be done. There is still a chance the Lions and Whitecaps could be playing games at Empire Field in October, if negotiations with the B.C. Government and Service Employees Union local 1703 collapse. The scoreboard, to be hung from the centre of the retractable roof, is so massive that it is unlikely we will see another baseball game in B.C. Place.Read my story from the Vancouver Courier here.

Here is a photo gallery from the tour of the site of the $563 million, taxpayer-funded renovation. Notice the fella catching some rays atop the retractable fabric roof.

It's the most expensive renovation and re-roofing job in British Columbia history. A news conference could be held in the middle of this month to announce that Telus has bought naming rights and will use the stadium to market its Optik Internet TV product.







Tuesday, June 28, 2011

A three-month race to completion











While most workers at B.C. Place Stadium took a break for a safety appreciation barbecue on June 28, B.C. Pavilion Corporation chairman David Podmore and Jobs, Tourism and Innovation Minister Pat Bell hosted another media tour of the stadium, which is undergoing a $563 million, taxpayer-funded renovation. (Click photos to enlarge.)

The installation of the roof fabric, originally set for February, is now taking place. The schedule was turned upside down after French cable-installation subcontractor Freyssinet encountered severe problems that led to Quebec steel contractor Structal telling shareholders it was liable for a $25 million cost overrun.

Podmore says the project remains within the $563 million budget and is on target for its scheduled Sept. 30 opening for the Edmonton Eskimos matchup with the B.C. Lions.

A public open house on Sept. 25 remains a "very slight possibility," according to PavCo owner's representative Roy Patzer.
"When the public comes in here I'd like to see a finished product and wow factor," Patzer said. "We can't sacrifice schedule for having the public in here. If we're far enough advanced we'll probably do that."

Patzer explained that substantial completion was originally pegged at Nov. 1, based on the contract with PCL that allowed for partial occupancy under an unfinished roof. He said the date was brought forward to Sept. 30 when PavCo decided to forego holding events earlier.

A portion of the retractable roof fabric hangs from the centre node and more is coming July 7. The tower that supported the centre node is all gone. Workers dangle from harnesses among the maze of cables that partially obscures the sky. A glass ring, which will separate the fixed fabric from the retractable fabric, is nearing completion. Large parcels containing fabric are resting on the ribbing. German company Hightex has the retractable job, while USA Shade from Dallas is working on the fixed fabric. Patzer said the roof would be commissioned through the month of September to have it ready for opening and closing on Sept. 30.

The installation of 54,500 new red and grey seats has begun. Excavation crews are digging up the floor for a new drainage system to be installed before the synthetic turf surface is applied.

Meanwhile, talks continue with Paragon Gaming about the move of its Edgewater Casino to a parcel of land west of the stadium. Vancouver city council voted against the casino's expansion in April, but not its relocation.

Podmore neither confirmed nor denied that PavCo is negotiating to sell the naming rights for the stadium to Telus. Sources told The Sport Market in March that Telus was the successful bidder and the stadium could bear the name of the company's Optik TV brand. Concert Properties chairman Podmore has a direct pipeline to senior executives of the telecommunications giant and its union. Concert's board includes Telus's investment management director Garnet Andrews and treasurer Robert Gardner and Telecommunications Workers Union president George Doubt and business agent Lee Riggs. Podmore is also on the board of Fortis BC. The former Terasen Gas sponsored the Olympic cauldron built on Jack Poole Plaza at PavCo's Vancouver Convention Centre.

The Vancouver Whitecaps debut in B.C. Place on Oct. 2. The Vanier Cup national college football championship is Nov. 25 and the 99th Grey Cup on Nov. 27.

Tuesday, April 26, 2011

PavCo says cost overruns not its problem


What's up with B.C. Place Stadium's roof, you say?

Well, for one thing, the price.

TSX-listed Canam Group (CAM) revealed on April 21 that it would take an "after-tax reserve of $25 million" for 2011's first fiscal quarter for "additional costs for the completion of the cables" on B.C. Place Stadium's retractable roof.

"The corporation believes this reserve represents the likely loss until completion of the project, while adding that discussions to reduce the impact of the reserve are ongoing with various project participants," said a news release.

Further information is to come April 27 when Canam Group president Marc Dutil will conduct a teleconference with financial analysts and media. Spokesman Jasmin Gosselin said Dutil was not available for earlier comment on the B.C. Place overrun.

Canam's Structal Heavy Steel Construction unit announced Oct. 28, 2009 that it scored a contract worth more than $100 million from PCL Constructors Westcoast. Steel was to be sourced from St. Gedeon de Beauce, Quebec and Sunnyside, Wash. by the company that supplied steel to 53 North American stadiums and arenas, such as Air Canada Centre, the new Giants Stadium and Red Bull Arena.

"Both the deliveries and the erection work will begin in the early part of 2010 and continue until the end of the year," said the 2009 news release.

Based on that news release, the schedule has already gone overtime. The last of the 36 steel masts was not in place until Jan. 13 of this year. The original deadline was the end of December 2010. Installation of the roof fabric was supposed to begin in February, but that won't happen until May. B.C. Pavilion Corporation CEO Warren Buckley told me earlier in April that testing of the finished retractable roof would happen at the end of August or start of September with a public open house on Sept. 25. Reopening night is Sept. 30 when the B.C. Lions host the Edmonton Eskimos.

B.C. Pavilion Corporation chairman David Podmore and Buckley did not respond to email queries about Canam's $25 million overrun. Buckley was not available when I called his office Tuesday morning, but spokesman Norman Stowe said via email: "Canam’s issue has no impact on PavCo which has a fixed price contract. No one is looking to PavCo for any shortfall."

PCL inked a $318 million fixed-price contract for the roof work in November 2009. The announced cost of the taxpayer-funded renovation is $563 million (it was supposed to be $365 million).

An announcement is expected soon that the stadium will be renamed for a brand of telecommunications giant Telus. Sources say the company won the bidding for naming rights.

APRIL 27 UPDATE

Canam reported a $39.7 million first quarter loss on April 27 and blamed it on "fierce competition in some business segments as well as the provisions for B.C. Place."

Dutil said Canam's Structal division got the B.C. Place contract in spring 2009 but the final contract wasn't executed until the fall of 2009. He said Structal's scope of work included the columns, compression beams, catwalks, arches and facade elements.

On a teleconference after his company's April 27 annual general meeting, Dutil said Structal "encountered severe delays in the cable portion of the work" in the first quarter after relying on the expertise of France-based Freyssinet.

"We are not cable experts and therefore relied on a third-party to estimate, price, plan and execute the installation of the cable work required to support the fabric roof, the centre node and all the elements required for the retractable roof system," Dutil said.

"During this first quarter we encountered severe delays in the cable portion of the work and hence we estimated that a $25 million after-tax reserve was warranted at this time. We hope to be able to recover a portion of this amount. Our first priority remains to deliver a safe, quality and timely project to our customer PCL and the end-user, B.C. Pavilion Corporation... The circumstances of the B.C. Place job are very difficult, but they confirm that even in the face of such challenges we do not run away."

"We had indications that the erection portion of these cables would be a lot faster and cost a lot less than it's turned out to be. It is my understanding that the taxpayers of B.C. are not on the hook for this, this was a contract where we have to perform at a fixed-price and we'll negotiate between ourselves and third parties. No one intends to refill the bill to someone else.

Dutil said Structal is in talks with Freyssinet to resolve the matter, but his company's work will be done in late July or early August.

"It's going to be a marvel. It's going to be well-done, safe and you're going to enjoy it for many years in Vancouver. It will just cost a little more than expected -- to us."

Asked for comment on the Canam overrun, PavCo CEO Warren Buckley told me: "This is a Canam matter and has nothing to do with the delivery of the completed stadium within the scope of the fixed price contract. There is not impact on budget and we are very confident that we are on track for a Sept. 30 completion."

Saturday, March 26, 2011

Name game



A new name is on the way for B.C. Place Stadium.

Taxpayers are on the hook for much of the $563 million budget to renovate the 1983-opened stadium. Some of the costs are supposed to be defrayed by the sale of naming rights.

B.C. Pavilion Corporation chairman David Podmore told me in mid-January that the corporate naming deal could be decided in late March or early April. Timing for the announcement would hinge upon both government approval and the marketing strategy of the sponsor itself. Though he refused to offer any hints, he said the companies involved in negotiations were not government enterprises. Podmore also said Paragon Gaming and its Edgewater Casino were not in the running for the name. B.C. Place general manager Howard Crosley said Budweiser was not a candidate, despite becoming the official stadium beer.

So the speculation continues.

Four highly active sectors appear to be the most logical from which to draw a naming rights sponsor: financial services, telecommunications, energy and retail.

Scotiabank already sponsors arenas in Ottawa and Calgary, is the naming sponsor of Nat Bailey Stadium in Vancouver and is the official bank of the Richmond Olympic Oval. If its name went up on the B.C. Place marquee, would shareholders question whether it's in the banking or stadium business? BMO already has its name on Toronto FC's stadium. Which might make RBC the most logical suitor. RBC has had a low profile since it sponsored the 2010 Winter Olympics and its torch relay.

Telus hung up on Canucks Sports and Entertainment after General Motors decided to drive out of its deal for "the Garage" early. Rogers slipped in last July, weeks after Bell slapped its name on the jerseys for the Vancouver Whitecaps. Bell is also the name on the Empire Field pitch. Expect the Whitecaps to play on Bell Pitch beginning in October. Vice-president Loring Phinney told me the company is not bidding for the building's name.

Telus CEO Darren Entwhistle said at the March 9 unveiling of the $750 million Telus Gardens office complex proposal that the stadium naming rights are of interest to his company.

On March 1 Terasen Gas became FortisBC. Natural gas is plentiful in B.C. where Fortis is the biggest distributor. The Newfoundland-based company has utility operations in five provinces, plus hotel and commercial properties. The Fortis board of directors includes Podmore. Podmore was instrumental in convincing Fortis to underwrite the Olympic cauldrons at B.C. Place Stadium and Jack Poole Plaza. Could Podmore also convince his fellow directors to turn the stadium into FortisBC Place?

In January, U.S. discount retailer Target bought leases for Zellers' 220 stores for $1.8 billion from Hudson's Bay Company. The Minnesota company plans to convert as many as 150 to Target by 2014. Naming rights to the stadium would be beneficial, if it were to begin the makeover early,

Friday, November 12, 2010

Inside Commerzbank Arena and B.C. Place Stadium

What's it like inside B.C. Place Stadium while it undergoes a $563 million renovation to become more like Commerzbank Arena in Frankfurt, Germany?

Join me for a quick tour of the 2005-renovated home of the Bundesliga's Eintracht Frankfurt here and the past and future home of the B.C. Lions and Vancouver Whitecaps here.

Friday, April 2, 2010

Stadium casino deal: more questions than answers

British Columbia Premier Gordon Campbell and B.C. Pavilion Corporation chairman David Podmore gave themselves a pat on the back March 26 for finding some revenue to pay for the $563 million B.C. Place Stadium renovation.

Less than a week later, the deal began to look rather underwhelming.

Paragon Gaming announced March 26 that it planned to build a $450 million casino and hotel complex in a parking lot west of the stadium. The land was put up for lease by PavCo, the taxpayer-owned Crown corporation that operates B.C. Place.

The stadium closes April 4 and the air-supported fabric roof will be deflated May 3. A $458 million retractable roof will be applied in time for the stadium to reopen in summer 2011. The B.C. Lions will play in a temporary stadium at Empire Field in 2010.

Tourism minister Kevin Krueger, whose ministry is responsible for PavCo, told a budget hearing on Wednesday that Paragon was among just two bidders that responded to the request for proposals in spring 2009. He refused to name the runner-up. The B.C. Liberal government has a problem with credibility and transparency, so skeptics will wonder if there was really a runner-up. But I'll give Krueger benefit of the doubt for now.

Could the tiny response to such a lucrative opportunity be because banks are reluctant to lend to developers who do not own the land they are building on? That is the basic reason behind the City of Vancouver bailout of Vancouver Olympic Village developer Millennium. Wall Street hedge fund subsidiary Fortress Credit Corporation took the risk that no mainstream bank wanted to and then walked away when the recession hit.

Paragon has a 70-year lease at $6 million annually. It'll be adjusted for inflation after 10 years. PavCo wants to sell the name of the stadium, more advertising inside, book more events and lease more land. The business plan and financing formula, however, are shrouded in secrecy. Both Campbell and Podmore told me that it won't be published. Cabinet secrecy is the reason. The government doesn't trust taxpayers (shouldn't it be the other way around), so you and I are unable to learn about the most-expensive stadium renovation in Canadian history.

Krueger also confirmed that T. Richard Turner phoned him to discuss the Paragon proposal. Turner is a director of VANOC, chairman of ICBC, former chairman of the B.C. Lottery Corporation and frequent donor to the B.C. Liberals. He is a minority shareholder in Paragon's Canadian subsidiary which operates Edgewater Casino at the Plaza of Nations in downtown Vancouver.

Krueger said Turner “called me to make sure that I knew that the retractable roof was if not a deal-killer, at least Paragon wouldn't be able to make the same proposal that it had made to (PavCo), and that was our only conversation.”

PavCo CEO Warren Buckley claimed Turner did not participate in negotiations or influence the content of the lease. But the optics are certainly odd.

Why is PavCo relying on a casino company part-owned by a friend of the Premier when the Vancouver Whitecaps' ownership group and B.C. Lions' owner David Braley have deep pockets and stand to gain because of the renovations? This is, after all, a government that privatized B.C. Rail and has entertained all manner of partnerships with the private sector.

The governing Liberals were dead-set against gambling expansion when they were the opposition and the NDP was considering "Monaco-style" casinos in the 1990s. A B.C. Medical Association study called Stepping Forward: Improving Addiction Care in British Columbia was published. It says alcoholism and gambling addiction are more prevalent in B.C. than drug addiction. An estimated 159,000 people in B.C. are addicted to gambling -- that's more people than attended the opening and closing ceremonies of the 2010 Winter Olympics and the men's gold medal hockey game!

Until Campbell and Podmore realize they're playing a high stakes game with taxpayers' money and taxpayers deserve transparency, I will wonder if this is another Fast Ferries or Convention Centre scandal waiting to happen.