Winnipeg Free Press

Winnipeg Free Press (Newspaper) - February 03, 2015, Winnipeg, Manitoba C M Y K PAGE B4 BUSINESS CITY EDITOR: SHANE MINKIN 204- 697- 7292 I CITY. DESK@ FREEPRESS. MB. CA I MARKET DETAILS B5 I WINNIPEGFREEPRESS. COM TUESDAY, FEBRUARY 3, 2015 B 4 M INNEAPOLIS - Target Corp.' s road map out of Canada became clearer this week as it selected liquidators, increased the fund to pay soon- to- be- unemployed Canadian workers and continued sorting out what to do with American executives who were sent up north. Liquidation sales at Target Canada's 133 stores could begin as early as Thursday if a Toronto court gives the go- ahead on a plan to wind down its operations. Target Canada has already selected three liquidators to oversee the process. A motion to approve the liquidation plan, as well as to get the ball rolling on selling store leases, is scheduled to be heard on Wednesday in Ontario Superior Court. In a court affidavit filed this week, Mark Wong, Target Canada's general counsel and secretary, said some stores are likely to be shuttered by the end of March, with the rest closing by May 15. He also said Target will increase its contribution toward an employee trust it has set up for its 17,000- plus workers in Canada who will soon be out of jobs to ensure they receive 16 weeks of pay following the recent notification their jobs are being terminated. While the company had initially said it would put $ 70 million into that trust, it now plans to boost that to $ 90 million. Many employees will have to work part or most of those 16 weeks to receive that money. Molly Snyder, a Target spokeswoman, said the Minneapolis- based retailer will also pay to move about 70 American employees who had been assigned to work in Canada back to the Twin Cities. It is not yet clear how many will retain jobs with Target. She added the company will evaluate their roles and the needs of the business on an case- bycase basis. The jobs of another 600 workers in the Twin Cities headquarters, people who worked with the Canadian business, are hanging in the balance. Target is also evaluating the fate of another 200 employees in India who supported the Canadian division. Target announced two weeks ago it would close in Canada after racking up more than $ 2 billion in losses in the less than two years since moving into the country, in its first international foray. The Canadian stores, which were plagued with stocking and pricing issues, would not turn a profit for another six years and were draining resources from the U. S. parent, the company said. As part of its exit, Target Canada has sought the equivalent of bankruptcy protection in the Canadian courts. During the hearing next Wednesday, Target Canada will also ask a judge to extend its stay of protection from its creditors three months to May 15 when the sale of its leases and liquidation sales should be completed. The agreement with liquidators includes a clause that says none of the liquidation signs will say " bankruptcy" or " going out of business." The company's Canadian headquarters in Mississauga, outside of Toronto, where 800 employees once worked, is " now operating with a reduced team," Wong said in the affidavit. That office is expected to close by March 31 and Target Canada's three distribution centres by April 30. - Star Tribune ( Minneapolis) NEW legislation came into effect this week that provides better protection for condo buyers, but also creates some potential headaches for some sellers. One of the key provisions in Manitoba's new Condominium Act, which came into effect Sunday, extends the so- called cooling- down period for condo buyers to seven days from two days. That means they now have seven days in which to review all of the related documents - things such as financial statements and the bylaws of the condo complex they're buying into - and decide whether to proceed with their purchase. While industry officials agreed Monday a longer cool- down period was needed, it also means five extra days of waiting before condo owners know if their unit has been sold. But even more worrisome for sellers is a new " material change" provision in the act. It states if a " material change" occurs between the purchase date and the possession date, condo buyers have another seven- day cooling- down period in which they can back out of the deal. And that could cause major headaches for the seller if he or she has already purchased another home and needs the money from the sale of the old condo to qualify for financing for the new home. " So it can get dicey," Manitoba Real Estate Association president Roberta Weiss said in an interview Monday. " The whole process makes the seller's position far more insecure..." She said while these situations don't arise all that often, " the seller needs to be advised that it could happen." The new legislation doesn't define what constitutes a material change. But Rob Giesbrecht, past- president of the Manitoba Chapter of the Canadian Condominium Institute, said the most common example would be if a major repair or maintenance problem comes to light, and there isn't enough money in the condo corporation's reserve fund to cover the costs. So a special assessment has to be levied against the condo owners to raise the necessary funds. He said the government obviously felt the buyer shouldn't be the one left holding the bag in these situations. And he predicted in most cases, the buyer and seller will likely renegotiate the purchase price and the deal will go ahead. He noted that in the past, if buyers were concerned about the possibility of a special assessment being levied before they take possession, they'd have their agent include a clause in the purchase agreement spelling out how it would be dealt with. " So it probably won't cause as many problems as people think it will," he added. Giesbrecht and Weiss both said while it's going to take time to educate real estate agents, condo corporations and condo buyers and sellers about the changes, industry officials agree changes were required. Weiss noted the old condominium act hadn't been revised since the 1960s, and not only are a lot more people buying condos these days, but condo transactions are becoming increasingly complex. She noted the government did consult with realtors and lawyers before making the changes. " By and large, we're pleased with the new legislation and pleased the government has responded to our request for an update of the legislation," Giesbrecht added. " It may cause some short- term distress for some people, but any time there's a change in a regime, you have to make some adjustments in the way you do things." Additional information about the new act is available at: www. manitoba. ca/ condo. murray. mcneill@ freepress. mb. ca THE Winnipeg big- data farm- management company, Farmers Edge, has signed a multi- million dollar agreement with an Alberta power company that will allow Alberta farmers to sell carbon offsets, at the same time getting more productivity out of their farming operations. It's the latest development in Farmers Edge's efforts to become the ultimate tool for the productive farmer. The carbon- offset deal is with Edmonton- based Capital Power which operates coal and gas power generating stations. Farmers Edge will integrate Nitrous Oxide Emissions Reduction Protocols ( NERP) developed by the Canadian Fertilizer Institute into its on- farm data collection tools. The NERP is certified to be eligible for use by the Alberta Greenhouse Gas Reduction Program. Alberta has the only active carbonoffset program in North America. The general parameters of the carbon offset program in Alberta requires every entity that produces more than 50,000 tonnes of greenhouse gas ( GHG) emissions to register with the province and every company that produces more than 100,000 tonnes per year must reduce that by 12 per cent per year. If those entities do not meet the target they must pay $ 15 per tonne to the province or buy an equivalent amount in a verified and registered offset. The deal between Farmers Edge and Capital Power is about the reduction in nitrous oxide ( N2O) emissions emanating from the use of nitrogen fertilizer. N2O emissions are 300 times more damaging than carbon emissions. " This is a very big deal," said Wade Barnes CEO of Farmers Edge. " There are all sort of dynamics at play here." For one thing, it will mean Alberta customers of Farmers Edge precision farming tools will have their costs cut in half from $ 8 to $ 4 per acre. Capital Power will pay Famers Edge directly and the Winnipeg company then subsequently gets the information verified after the growing season. Barnes said it is part of a much larger movement by food processors and retails - companies like Walmart and General Mills - to source products that are sustainably produced and whose sustainability can be verified. " Big companies are pushing hard," Barnes said. Farmers Edge precision farming tools allow many features of the farming process to be recorded against a benchmark, including fuel consumption and exact deployment of fertilizer. " It is a bear for farmers to do it ( on their own)," said Barnes. The Farmers Edge service can do it for the farmers and the farmer does not have to change his or her practices. And with the emphasis on sustainability, Barnes said that means companies such as Walmart will be more inclined to have its suppliers use primary producers who can verify their sustainable practices. " We're trying to streamline ( the collection of the information) so that the information that qualified for the NERP is the exact same information that will qualify to make a farmer sustainable and would qualify for fieldprint calculator," Barnes said. The fieldprint calculator is a widely accepted tool that allows growers to better understand and communicate how management choices affect overall sustainability performance and operational efficiency. " Our whole strategy is to build this big- data platform that helps with productivity but also fits the sustainability mandate that has been laid out," Barnes said. Chelsea Erhardt, environmental markets specialist for Capital Power, said Farmers Edge is the ideal partner for a process like this. " You have to be able to track it ( nitrous oxide emissions) according to a historical base line level down to a very granular level because you want to make sure the offset you are claiming... is 100 per cent guaranteed," Erhardt said. " You don't want anyone gaming the system or incorrectly verifying the reductions or overestimating the emission reductions. Farmers Edge's technology really brings it all together, enabling the farmers to get a benefit from Capital Power investment in the carbon system also ensuring we are buying high quality offsets." Clyde Graham of the Fertilizer Institute of Canada said its protocols are not so much about using less nitrogenbased fertilizer as it just doing more productive farming. " What we are trying to do is grow more food for every tonne of fertilizer applied," Graham said. " The more fertilizer that goes into the crop and into the food that comes from the crop, the less that is likely to be lost to the environment." martin. cash@ freepress. mb. ca Important points HERE are some of the highlights in the new Manitoba Condominium Act, which came into effect on Sunday: Cooling- off period: The period that condo buyers have to review related documents and decide if they want to proceed with their purchase is extended to seven days from two. Material change: If a material change occurs between the date of purchase and the date of possession, buyers are entitled to another seven- day cooling- off period to decide whether they still want to proceed with the deal. Reserve fund study: All condominium corporations must complete a reserve- fund study within three years and update the study every five years. The study will provide condo boards and unit owners and buyers with information about how much money the reserve fund should contain to pay for major repairs to the building's common elements - things such as the roof, heating system and windows. Right to rent: A condo corporation can't stop condo owners from renting out their units and can't charge them a levy of more than $ 1,500 per year if they do opt to rent them out. Under the old act there were no limits on the size of the levy condo corporations could charge, and some used it to discourage owners from renting out their units. - source: Government of Manitoba Target's escape route clearer Liquidating could begin this week By Kavita Kumar JOE BRYKSA / WINNIPEG FREE PRESS Manitoba Real Estate Association president Roberta Weiss says sellers' positions are now less secure. New legislation favours condominium buyers One example: extends cooling- down period to seven days By Murray McNeill Farmers Edge signs deal for carbon offsets with Alberta company By Martin Cash SCAN PAGE TO LEARN MORE ABOUT FARMER'S EDGE WAYNE GLOWACKI / WINNIPEG FREE PRESS FILES Wade Barnes is the CEO of Farmers Edge, an agricultural technology company. ' This is a very big deal. There are all sort of dynamics at play here' B_ 04_ Feb- 03- 15_ FP_ 01. indd B4 2/ 2/ 15 10: 37: 27 PM ;