So without further ado, I'd like to introduce Roger Lam, who's going to talk to you a bit more about the Affordable Housing Webinar Series and our presenters today. Well, thank you very much for that introduction, Josh, and thank you to our participants on the line today who are joining our first webinar in the fall series on Affordable Market Housing in D.C. So as Josh mentioned, my name is Roger Lam. I'm the Manager of Housing Policy with the Provincial Government, and we'll be hosting the webinar today with the support of Josh and his team here with JPST. And I also want to take just a minute to thank all of our partners who have made the webinars possible over the last year that we've been running these. So we've been working with D.C. Housing, the D.C. Real Estate Association, the Canadian Home Builders Association of D.C., the Union of D.C. Municipalities, the Urban Development Institute, the Ministry of Community, Sports and Cultural Development. But I'd like to thank them all for the collaboration as well, again, to thank the Economic Development Division of the Ministry of Jobs, Tourism, and Skill Training for the technical support. And obviously, without them, we wouldn't be doing this webinar series with you folks. I'd be to work with you. The goal of the series, we know that market, Affordable Market Housing is the key concern for many communities across the province. And it's also a concern for industry, housing stakeholders, families, and individuals as well. And so we started this webinar series with the goal of sharing information with provincial audience to support and encourage the creation of affordable market housing options in the province. So the webinar format is a way of doing this that hopefully will make it easy and cost effective for everyone to participate who wants to. We know that a lot of folks that are joining, particularly on this call today, are probably out in the region and it's hard to travel and to make it to conferences. So we want to make this information as available as possible for you. As well, the webinar is built on the momentum of so many different housing initiatives that go on across the province every year, such as the Housing Affordability Symposium offered by the Canadian Home Builders Association of D.C. Annually. So the series topics. We've organized three webinars for our fall 2014 series. In today's webinar, we're looking at housing issues in communities, experiencing rapid industrial growth with a focus on the North. As usual, we'll have two speakers and we'll follow our presentation with questions and discussions towards the end. And actually, as Josh mentioned, we'll probably take a few questions during the course of the presentation as well, just as they come up and there's some logical breaks in the presentation. Our next webinar is on October 30th and we're going to look at how to support rental housing in your community. And if you've seen our previous advertisements, you'll notice we've changed the date. We originally had it posted for October 23rd, but we've now moved that to October 30th. So just update your memos if you have them. Our final webinar on November 27th is going to look at strategies to overcome neighborhood resistance to infill and to densification as well. Let's introduce the topic that we have today. It's industrial growth. It's a hot topic in many regions of the province, but in particular in the Northwest and Northeast of the province. We all know that we need a history to provide jobs for citizens or our local economies, our social programs and government services. We know that it's slow growth. It's something that's easier to plan for, something that we can predict. And we can manage it and work with our communities to anticipate and also respond to that type of growth. But when we face rapid growth, the scenario becomes quite different. It's more the growth is accelerated. We have to make decisions in a more convenient manner. And there's different solutions that we need to look at. Fortunately, there's a number of communities across the province and across the country and around the world. We've also experienced rapid growth. So we're able to learn from the experiences. So the topics for this, who to invite to this particular webinar because we wanted to give a more rounded perspective of how communities can look at the challenge of rapid industrial growth. So we have invited a local government planner who has had the experience of the last few years of really working with community and industry and a whole range of partners to plan for that type of growth as well as industry itself and how they have responded, planned, worked, anticipated. And I guess at the end of the day are working with the community to respond to the rapid growth that they're a part of. So it's my pleasure really to introduce our two speakers, Gwendolyn Sewell and Elliot Smith, planning and development with the district of Kitamat. She's trained as a geographer. Gwendolyn is introduced to social, recreation and park planning through a series of contracts with the BC agencies and also self-employed consultants and with a Vancouver-based engineering firm that worked in the north of this territory and west Africa. After several years of practical experience, Gwendolyn has enrolled as a graduate student at UBC School of Community and Regional Planning. Upon completion, Gwendolyn started work as a mutual planner in Kitamat and what has proven to be a delightful, rather unstyled, green belt community. And none of you have the opportunity to go up to Kitamat. I strongly encourage it as a planner. It's really a fantastic community to see and to see that type of a plan actually take place and actually in the real world. Residents appreciate and support community planning. Typical for a small northern DC office, planning working in Kitamat is varied. When the local economy was suffering, planning was about mitigating the impact of decline, the current focus is managing a community on the edge of a new economy and the impact of what appears to be a significant economic boom and a radically different housing market. Then met Felius Smith in July 2013. They found a mutual acquaintance in Roger Wilcox who was an executive assistant to Clarence Stein as a Kitamat Townsite Planning Project from 1948 to 1952 and a key figure in the U.S. Cooperative Housing Movement. I'll also introduce Elliot Smith who has worked in international real estate and project management through his 30-year career. He brings broad experience across the NGO, government and for-profit sectors in more than 45 countries. A graduate of Ohio Wesleyan University, Elliot started out with the U.S. Peace Corps and State Department in Yemen. He went on to support the foundation and local initiatives to support cooperation in the U.S. and high-tech companies including AOL and Cisco Systems when he launched their international operations in major European and Asian markets. Elliot has been with Shell since 2000 working on a variety of projects. He is now the real estate development delivery manager for the LNG Canada Project in British Columbia based in Vancouver. Gwen and Elliot have prepared this presentation jointly and so they're going to be sharing, Gwen will be sharing her local government perspective, Elliot's industry perspective and so thank you and I'll pass it over to our presenters. Thanks for that Roger and Elliot and I are in the same room today so we're not quite sure how the camera is going to track going back and forth with us but we hope you'll find it engaging in conversation and I think at some point we might confuse the camera as we both try and talk at the same time. I think we've confused the camera already at this moment. That's okay. So we're just going to show you an overview slide that kind of reviews what our presentation will cover today and as George mentioned we're going to take some questions as we can see. So I think basically we'll talk about the context of KEDEMAT and Shell LNG Canada's project in particular. We'll talk a little bit about the housing situation in our community over the last two and a half decades. We'll talk about the focus of the current planning work in KEDEMAT which is really much about policy development and response to the level of investor interest and the level of community concerns with respect to densification issues. Okay. I'd like to just start briefly by saying where we are coming to this project from LNG Canada. We have a very strong parent in Shell and our other three partners on this project, South Korea's COGAS, China's Partridge China, and the Savishi Project. And the tradition on our projects both together has been to really engage with the community from very early in a project.  But on behalf of those partners, as Gwen mentioned, I first came to KEDEMAT in the first half of 2013. And the first stop was to look at what does the community want as illustrated in their community planning and zoning.  How can we do that according to the community's wishes? If you'll switch to the next slide, please, or I might have to do that, Josh. Those two blue buttons there, those will advance your slide down in the bottom left-hand corner. I don't think we see a blue button, Josh. Two blue arrows, one points up, one points down. You should see 12 out of 42 beside it in the bottom left-hand corner of your screen. No, it's got it. Thank you very much. You're welcome. This was the slide I was talking to a moment ago. These are the four partners working together in LNG Canada. Shell Headquartered in the Netherlands, South Korea, Kogaks, Patrick China, and Mitsubishi. I'm not going to torture you with a propaganda video at the moment, but you may want to, when you take a copy of the slide, go and look at these YouTube slides, presentations. You basically just kind of explain the technical aspects of the project. And, of course, today we're talking about the impact on the community. So this is less important to you, but if you are interested, this might be useful for you. Just kind of walks you through what happens in an LNG product, where our product is coming from, how it's manufactured, and how it's shipped to the end customers overseas. Why did we end up in Kitimat to build an LNG project? You all read in the press of 13, 14, 15 different projects that aspire to do LNG projects. We do our siting quite carefully. And the probably the top four things that attracted us is the industrial zone's land. We would not have to go in and clear away a virgin forest, for example, the ice-free year-round port, positive relationships with the local government's plural, that amount to Paris as well, and a great existing infrastructure. Now here I have to apologize for this slide. It says, Terrace Airport. Now we all know Northwest Regional Airport, but I neglect to correct this slide when I picked it up. So, Terrace, my apologies. This is a regional airport, and I'm aware of that. The other part of the infrastructure is the road and city infrastructure, and I heard a comment many times when I first came to Kitimat, hey, you know, we're at the end of the highway, and I keep correcting people for the last year. Well, wait a minute, aren't you at the beginning of the highway? So that's a little bit of a perspective, I'll explain this a little bit. The next slide is simply an artist's rendition of our site model, where we expect this LNG facility to go.  So we've selected a site that sits alongside of RTA, our industrial partner in Kitimat, in such a way that we don't go out and use up a lot of greenfield land. We're using land that is already industrially zoned, and that's, of course, very attractive for environmental reasons as well as for development reasons. I think that there's one other point that I want to make with respect to the site, and that is that this is the former site of a methodological plant, and those two plants employed about 120 to 125 people, and we expect that the LNG Canada project will employ between kind of 80 and 200 million more people than that plant did. So it's something in the order of 200 to 400, and those numbers are yet to be determined. So I think from the community's perspective, the key issues really are housing availability and need. We've gone through a fairly significant council and community education process over the last two years in particular. We began in March 2012 with our first housing needs assessment study. It was done by a consultant space in Vancouver, and we shared the results of that study quite extensively, both with the council and people that were individually involved locally with a variety of social service networks and agencies. And those key people began thinking initially about potential partnerships to build appropriate and affordable housing for some people that are considered the special population. These people are perhaps more challenging to house or they have unique needs. Since then, however, so since March of 2012, there's been a huge change in the housing market, and you'll see some slides as we move forward with this presentation that show you the nature of that change. And for the first time, there are significant new developments on the horizon, both in terms of housing and industrial activity. And many individuals who are especially vulnerable have lost their housing during this time of economic development. Or at the very least here they're going to lose their housing. Yeah, correctly. And so there's a big push now to address the fears and the realities and take advantage of some opportunities to perhaps create some special purpose housing. So in March of 2012, we determined that about 217 housing units were needed. And earlier this year, Daniel Martin, who's a planner in KMAP, completed an in-house update of the 2012 report. So inserting 2011 census data into the old document, we now calculate that probably 275 units are needed. And that's still a number that's in flux because in response to housing pressure and the reality of rising rents and decreasing availability of units, we perhaps lost people from the special population and it's challenging somewhat to document the level of change. So although it's not a huge number, if you're from a larger center, it's a very new issue for our community. And rents, both types of housing have been very accessible in KMAP economically. We've had historically fairly low rents or very low rents in relation to other centers in the province. And home ownership has also been extremely affordable. And I think the last time we kind of had a period of clockable industrial construction was the last time we had really low vacancy rates and high housing prices. So in 2012, there was a number of kind of specific municipal actions that were identified in time. And you can read all about those on this slide. So I'm not going to run to them individually. I think what's significant is the red checks indicate projects that have been essentially completed or work that has been completed. Yellowish work that is currently ongoing is very important. And I think that Roger Lamb may choose later to speak more specifically about the business plan, which is now being a housing action plan that's being conducted even as we speak. And we're looking for results about within the next few weeks. And the square is showing you what's next. And we certainly have some work to do in terms of measuring homelessness and also with respect to adopting policies in our official community plan. Yeah. Are there any questions at this point? We can do questions at the end, but if somebody has a question now, this would be a good break point. Okay. Hearing nothing, I'll move on. So LNG Canada is obviously extremely interested in how these issues with housing and available stock play out in the community. And it's not at our benefit at all to have these issues spin out of control. But we want to make sure that everything that we do to develop our project takes into account the type of concerns that Glenn just outlined. At the very least, we have a responsibility to not make anything worse than it is at the moment. But I think by properly planning our strategy, we can actually quite help to improve it. So we look at housing affordability and availability as it is today. And we think what are the investments that we're making in the community can help to mitigate or lead to some positive change in some of those areas. But we're doing that in sort of three pillars, if you will. One is that we're making sure that we have a workforce accommodation village where our construction workforce, some of which will be local and some of which will fly in from elsewhere in Canada and perhaps beyond. We want to make sure that they are housed in a community that's a comfortable great place for them to live. Second, we want to work with developers to create new housing for any LNG staff that are located in the community. And those would be people that come to the community with their families for four or five years. They might have young children or the empty nesters that would be typical for our large projects. But we very much want those people to be integrated into the community. And then the third is supporting the kit amount of housing action plan. I've been sitting in on the community housing meeting for the last half a year or so. And I have to say having done a lot of urban development and redevelopment and community development, this is probably one of the brightest groups of people I've seen gathered around a table to try to solve some common problems. So there's a lot of talent in kit amount now and NBC that can be brought to bear to make sure things work well. So here's kind of where we started and here's where we are today. So we started looking specifically at kind of our historic population pattern and what we might be facing as kind of one of these four scenarios and where we should turn to industrial growth. So each of these lines on the right hand margin represent an alternative future for camera. So the white line is what will happen if we don't have any new development. The blue and green lines indicate what will happen with either one or two fairly significant natural gas, solidified natural gas plants. And the top line represents what will happen if the Kinect Clean project went forward. So that's a refinery project, not specifically tied to any particular oil pipeline. But the refinery proposal is potentially about 3,000 direct jobs and a number of spin-off jobs as well. And for purposes of our projection, Kinect's projection, we assume that those jobs we split equally between tariffs and ourselves as the plants is located midpoint between the two communities. And so this graph represents sort of kind of two-to-the-path calculation based on an economic base model, which is an appropriate model to use for account power by an expert economy. And the second graph here indicates sort of how the writing kind of emerged on the wall with respect to rental accommodations in particular. So you can see that ten years ago our rental rate, rental vacancy rate went in the 40%, there was a bit of a spike and a slow decline and then a bit of a spike associated the time of a fairly significant client closure when 535 industrial jobs were eliminated in the public paper industry. And now at the bottom end of the graph, we're pretty much at zero. So the reduced inventory or rather the reduced available inventory is really a significant problem and the turnaround happens very quickly. So in the course of just over 40 years we went from kind of 30% to basically zero and it's hard for a community to adjust that quickly. So average rents that came out are now costable to what you pay in Vancouver. They're just over $1,000 a month. You might get more square footage in Canada than you do in Vancouver but still you're paying out of pocket for about $3,000 a month and you can pay up to $3,200 a month for a furnished unit with a cleaning service and that's really a market that has been driven by living out allowances. They're paid by some projects or they're paid periodically when the existing temporary workforce facilities are full. I think what we learned going forward is you want to make sure you have sufficient capacity to house the temporary workers so that the community can respond with carbon housing. So this graph is highly interesting to LNG Canada. So if we're being a responsible corporate citizen and want to make sure we don't displace anybody how do you do that if your vacancy rate is at zero? That tells us we need some action. But this graph from the previous versions I've seen of it, I kind of took my breath away. You're not in crisis yet but you can see it coming if you don't get it probably. But the other thing this graph tells you is that when we had a 44% vacancy rate when companies started coming to us as a very early and preliminary stage of the project in August it was clear that there needed to be some component of a living out allowance being paid because we wanted to kind of share the benefit and not necessarily have all the temporary workers arriving and staying in construction camps when there was, you know, 600 units of available rental market housing that was kind of on the market and available. And kind of this is also the specific situation. The high initial vacancy rate and the low current rental vacancy rate creates market opportunities for renovation within that type of housing as well. So that's the next slide now. So this is sort of the KMAT version of renovations of multi-family housing. And Elliot and I have an interesting take on this because, of course, the extended work varies significantly building to building. Yeah, so there are units being renovated. And no offense to the owners of this building if they happen to be online, these are occupied buildings with happy people in them. However, I question when I look at these particular units in person or in a picture, how deep is this renovation really? So it's new siding, it may be some new insulation in windows, certainly new interiors on the units. But is this refreshed a unit built in the 1960s to a place where it's going to be a solid piece of infrastructure for the community for another 30 or 40 years? And just on face value from this type of light renovation and knowing that there are issues like asbestos and that sort of thing as well. I question whether this is a deep enough renovation to truly renew the stock in a community. And so what we're finding from the building inspector's standpoint and kind of a community standpoint is some of the units in some of the buildings have been renovated extensively so their insulation is being removed and asbestos is being addressed. In other units in another building, the renovation has been a lighter treatment overall and so that's currently important because we don't know for certain that there's the same level of renovation unit to unit and building to building within each of these larger multi-family properties. So there could be multiple buildings on one site or in some cases there's been subdivision removal and there's one building on one lot but they look like a complex so it still looks like one, one facility. But it's critically important to understand the level of renovation of individual units when you're dealing with strata property applications for buildings or for units within a building because we definitely want to ensure that a new owner of a property is taking on a project that they'll be capable of living in and capable of getting a mortgage for which requires a 35-year life. And so the other thing to point out through this slide is both of these buildings are 100% occupied right now. In order to renovate one to whatever level, you have to empty them. There is also no place for those people to go while things are being renovated so the renovations themselves create some more pressure. At the same time what we have happening is we're finally starting to get some serious interest in new multi-family development. That's quite new for KineMatch. It's a very new topic for our council to be wrestling with. The projects are primarily strata-titled units, ground-oriented, although there's also some apartment buildings have been built. And council is starting to face tremendous pressure from existing residents to turn down applications seeking any increase in density. And I think if many citizens had their way there would be no or minimal new construction. Housing values in KineMatch have soared, and we'll see a couple of slides that demonstrate that. Not quite yet, but close. And there's definitely homeowner interest in capturing that increase in value. So here's where we're at in terms of a current population versus building unit demand. And again this speaks to the four scenarios that were outlined earlier with individual projects and all identified on the market for this slide. So looking to two to five years out, I believe KineMatch will definitely need new drilling units. We'll need kind of a chunk more than we have today. And this graph overall represents kind of our internal, our department's depth guess as to demand associated with each of the projects and also the cumulative impact. What remains completely unknown is the timing. We don't control the final investment decision process. We have to be ready to respond to that and give them lead time to develop housing. We need to be ready in advance. So you have to have your sites identified. Developers may even want to have preliminary plans approved. They may want development permits in place before they actually go to market and reselling this so that their risk of investing in our kind of economy is somewhat minimized. And that's I think the other reason behind the stratification applications. They want to, again, spread the risk of owning a building that's four years, 50 or 60 years old and might be 100% occupied tomorrow, but if there is no final investment decision, we'll not have that same level of occupancy going forward. So given that background of what the marketplace looks like in KineMatch and doing extended and tasks as well as debt applies, we say, okay, how can we come into this market with a bolt of demand and not negatively affect either end of the housing spectrum? So you don't want to affect the value of existing homeowners. You don't want to make it skyrocket or plummet or have a boom, bust kind of cycle. So we've developed a strategy that we think will mitigate many of the problems. There won't be no impact, but we're hoping to keep it very positive. I think I've gotten my slides slightly out of order here. So our objective is to limit displacement of existing residents as a first principle. That maybe doesn't mean zero because there's no place to go to renovate, but I think we can keep it extremely low. Our approach will be to cause the creation of some new stock in the community that's suitable for the families will be bidding in. But at the same time, not overbuilding so that we don't create an oversupply situation as real estate values sort of go off the cliff at the end of the current industrial cycle. And the other thing is to make absolutely certain we're integrated into the community. So if you were to look at one of the slides we have coming up at the different neighborhoods inside of the District of Kitimat, we expect to be in almost all of them. There will be no dated community. It's just LNG employees and their families. This has got to be part of the community. I'm going to go back just one slide there. So we know we're going to need a limited number of residential units. And there's been a lot of expectation and speculation in the marketplace that there will be hundreds and hundreds of units. And in fact, in our first batch, we're only going to go out for under 125 units to be lease. Those units are houses, condominiums, and apartments, depending upon their family size and seniority and school needs of each of our residents. So that's not a huge number of new units, but it is a huge number of units when you look at the size of the community overall. The people living in these will be our senior staff and the senior staff of our lead consultants, I think, to build the project, largely family-based. Everyone else will be in the workforce accommodation village, which is over in the industrial area, and it should be based on the community planning for Kiddomet. We're going to lease those units in five-year blocks, and we won't take them all at once. So that means between 2015, 2016, 2017, we'll start to ramp up towards the number of 125 for the potential upward adjustment, but it won't be significantly more than that. Because we're taking some and say the end of 2015 and some in the beginning of 2016, that means that when we've completed our build-up of the LNG plan, we'll also be releasing them back into the marketplace in a staggered manner, not dumping several hundred units all at the same time. And we hope that that serves to protect both the low-income and special needs part of the community, as well as people that own their homes. We are tendering for these requests for proposals now, so I can't talk about that too much, but I can tell you that we found out 12 or 13 different private developers, some of whom have applied for permissions in Kiddomet already, and we plan to do some housing with the High School of First Nations, which is very much meant to be a balanced situation without having any party take an incredibly large chunk of the development benefits, if you will. I think what we're hoping too is that some of those units that are built specifically for LNG Canada construction will transition to LNG Canada operations or to other people that are coming in to operate other new facilities during the current zone. So they may be construction initially, but they should be operational jobs later. So we're taking some kind of staff in terms of policy to encourage operational positions to be based in our community as opposed to the flying-flyout approach. We'll be providing the keys to the front door for our staff that are there during the construction period. Turns up around 2020, 2021, 2022, depending on the phrasing. But when it comes to operational, people will make their own economic decisions of whether they're going to live in Paris or they're going to live in Kiddomet, whether they'll be in an apartment or an acreage outside of town somewhere. It goes back to a more normal basis. So we're hoping that as we return these rental units to the market, the owners then either sell or rent them back out to people that are making their own individual family choices. I originally had a map of Kiddomet in this slide with 12 or 13 places where we were interested in, but our contracting and procurement team tells me that wouldn't have been appropriate at this moment. So I've given you a representational map here that you can trust that we're spread out around the community. Okay. So here's just two slides kind of giving you a sort of a flavor of what's been happening in our housing market over the last few years. And so I think that there's been just phenomenal increases in value and those are reflected in phenomenal sale value. And I think the fact that this has sold for almost $200,000 over the current assessment communications is sort of what's been really going on. And it's not just homes that are selling at prices like this, building lots. The next slide are facing similar pressure. It's kind of an untenable situation. We don't quite know where it's going to lead every next little while, but I think most people are kind of fairly assured that we cannot continue to move in this direction. And it's like some more lots coming onto the market quicker from existing subdivisions that have had historically a 20-year projected build life, just one that they're kind of gearing themselves up to basically complete those projects within the next two to three years. And think about this. This is caused just by the anticipation of new projects. For the part of LNG Canada, we haven't even put a shovel in the ground yet. And already we see movement. We see... Kitimat has seen some eviction notices as people prepare to try to take advantage of the property that they own, but that has unanticipated the tax on the current population. So this is two years before we're really fully in the full construction mode, and we're already seeing this kind of value changes. So this is back to the fact that we have had one fairly significant industrial project going forward, and that's the Rio Tinto Smilham Modernization Project. It's also over a $4 billion construction project. It's got a fairly significant workforce, and we'll show you sort of the general location of that work, and what that meant for our community. So we talk about the size of impact on the community. So RTA's Modernization Project has somewhere between 2,500 and 3,500 workers at any given point. We expect around an average of 5,500. Again, really, you need to plan. I mean, we have been a responsible perpetrator, so we need to plan to be able to handle some fluctuations in that as the construction speeds up or slows down. So we're actually planning a range for our workforce accommodation leadership between 4,500 and 7,500. We'll build to the lower end of the start rate with the sewage, the water, the electric, which we have to supply ourselves. The town district of Kitimat does not have capacity for sewage treatment, and that's at this level at the moment. But we really have to plan to be flexible, because if we're not, and we reach a speaking capacity and we turn workforce loose on the community to find their own accommodations, you get this very sharp shock of negative numbers in vacancies and places where people can live at an unexpectedly rapid rent and price increase. And again, at the operational phase, it's hard to predict exactly, but somewhere between 2,500 and 7,500 operational jobs and contractors around them. We don't say an exact number. We say a range. I think we have a pretty good idea that we're about in the middle to upper end of this range, but these are things that flush out as technology develops and we learn how to run this particular facility. So forgive the range and the approximate values, but we'd be irresponsible to mention an exact number at this point. So here's kind of the big picture in terms of what we're looking at. We expect to build industrial construction, temporary workers, and permanent industrial labor courts. And it also gets you an indication of what our typical housing construction rate has been, and that's not 45 million a year. That's 4.5 million a year over the last 20-plus years. This building season, and because it's the Northern Community, our building season is quite compressed. You really can't build a housing kidnap in December, January, or February, and even November and March can be extremely challenging. So we'll have 17 new homes built this year. We don't yet know what 2015 will bring. I suspect it will be significantly more than that, both in response to general level of interest and investor confidence that several projects will go forward in kidnap. So I think there's now, gosh, two very significant LNG projects proposed. And I believe four additional LNG projects that are on the public record. And of course, there's all these projects that are not yet public, but I cannot tell the folks who are doing this. So in capturing everything with respect to the construction scenario, we may well end up in a situation where we have more people living in temporary construction camps than we have permanent residents of our community. And that will certainly have some impact. And we've taken some steps to try and mitigate that. And by counseling industrial components, ways that they can help us address that situation as well. So really the municipal focus is on the permanent labor force and the number of housing units that we'll have to have in place for long-term residents of our community. And overall, we feel fairly confident that scenario two or three is going to be the likely outcome of the current level of investor interest. And so that puts us close to what our historic high is in terms of an industrial job, and that translates again to population. What is different now is because the average household size has shrunk significantly from about 3.5 to 2.3 or 2.4, we still know that we need significantly more dwelling units to accommodate the same population. So there's a big gap up if the Cadiment Clean project goes ahead. Certainly in terms of being close to kind of 3,100, 3,000 permanent industrial jobs. In 1981, we also had almost no retirees in Cadiment. And now we have a large number of retiree families. So our community is aging a slice. And I think that that reflects, in part, the nature of housing that will be needed by our community as we go forward. So ground-oriented housing is appropriate, and apartment buildings with elevators are also equally significant. I would just make one last comment about this slide, and that is you could in scenarios two and three end up with a similar set of numbers. But since we talk about 4.5 new houses a year, there's a need in this part of the cycle to renew housing stock. And I think the market is going to do that, and I hope that we're able to foster that a little bit. So currently from the temporary housing perspective, this is kind of where we're at currently. So the present temporary worker facilities are shown there in yellow. The potential are shown in pink, and LNG Canada's LAH has specifically spoken to about that already. And the approved temporary workforce counts are shown in white. So there's a fairly significant camp housing 2,154 people. That has building approval, and has a development permit. It's under construction now. It will be a space project. Again, it's going to just meet demand and to help manage the key flavor forces for the individual proponent construction camps. And those are basically the pink ones that will be over on the west side of the K-Map Valley. So that is somewhat removed from the town site proper. The camp that's currently in place for the re-attention modernization project is a 1,780% camp, plus a vessel housing approximately 600 people that's been anchored in Kinnert Harbour while they're tied up to existing work in Kinnert Harbour. And so there's the Kinnert River, there's the Emily Manufacturing Zone, and there's a large green belt that divides those large temporary camps on the balance of the town site. And the exceptions are the two camps, the two smaller camps, the 2,154, which is managing the pink, and also 1,000 bed camps that's opposed, but not yet at the same level of approval as the camp that's close to Orange Island town in this area. So we've, as Ellen Geek Canada has taken how we develop our workforce accommodations very, very seriously. You'll see two illustrations below. One illustration is a 4,500 men person facility. And the second is what it would look like if it was built out to 7,500. Getting these types of facilities right, making sure that your workforce is well fed, happy, has good recreation after work, well rested, makes all the difference in the world with the kind of impact that these people have on the community. And from a purely selfish corporate point of view, it also makes them want to stay. We need a very highly skilled workforce. If they get sick of the place that we've provided for them to live and go away, that's a tremendous problem for us. So we want to make sure people feel happy and comfortable while they're there. We're intending to build a accommodation village that is not only the best in Canada, but is probably going to be the largest in Canada at this moment, even at its smaller size. I put this slide up basically to give you a little bit of an idea of how we plan a workforce accommodation facility. You can kind of ignore the impossible to read. I'll find print and look at the icon here a little bit. So we've talked to the crafts in Canada and specifically in B.C. We've talked to people that are living in the Alberta tar sands facilities to see how they feel about their things, the places where they're living. And we know the things that are most important to people, having their own bed and bath in a decent but not terribly extensive room. So we're talking about 150 square feet or 15 square meters with its own bathroom. So you have some privacy and comfort when you're not working. We need to worry about things like laundry, and laundry for industrial wear as well as people's personal stuff that people can move between our work site and the accommodations by foot or if they choose to by shuttle bus and keeping the impact off of the community's roads. A good diamond experience, really good food both in what they take to the site for lunch or their mid-shift meal any day. What they're getting in the evening and for breakfast. A good couple coffee is all those things that are kind of tangible ways that we can keep a workforce happy and well taken care of. You have to supply storage. I think this is one instance where there was an interesting conversation around potential locations of the word camp. So this particular camp is of the scope and scale that its footprint is almost comparable to what a whole new neighborhood would be in Kitama. So we have a very carefully crafted community plan for each of our significant residential neighborhoods to hold between 2,900 and 4,000 people. We have three towns like neighborhoods now. This is potentially the same size as the new neighborhood. So the plan in the 1950s identifies potential new neighborhoods should Kitama reach a level of growth where it made sense to develop in the neighborhood. But because this is going to be a temporary facility and we don't know long term that we will need some housing for 3,000 residents it didn't make sense to go ahead on that model. So for that reason it makes much more sense for LNG Canada and for some of the other players to put the work camp very proximate, very close to their construction site. And I think Elliott, you actually expect people will want to walk to work. They won't even write buses. Yeah well we've surveyed a lot of the people in the RTA modernization site and about 50% of the folks that I've talked to absolutely insist on walking to site. So we have to provide the walking routes. About 50% are not going to go anywhere unless we put them on a channel bus. Better yet I personally show for vehicles but people are really quite fed in their ways. Me I would be in the walk outside the far defense but I think we need to provide that choice. I can go on for a lot of hours about these icons so I won't do that to you but I want to mention just one or two quick other items. The ability for people to be able to store things and the ability for them to be able to get back and forth to town when they want to go to the drug store, when they want to go to the grocery store. When they decide, you know what, even in our dining room six nights in the room I want to go out to dinner. So we want these people to have access to their community. We want it to be separated enough so that when everybody's on their way to work the residents can still go out and buy bread and milk and eggs and are blocked off by hundreds of buses at the moment. So really quite key to have our camp located as closely as we turn it to our plant site. So I just want to summarize a few things and make one more point about medical services. So in order to minimize the impact on the community we want to make sure that this is full service, self-contained accommodation. We need to be able to supply our own sewage, water, solid waste. Everything will be recycled. What needs to go to landfill has to be carefully coordinated with where it's sort of shipped to. We're hoping to minimize that. Incidentally, to work together with the local cooperative recycling agency to try to get some volumes available so we can get materials shipped for recycling. We're not going to allow personal vehicles to be parked and used at site. The last thing I think anybody needs right now is 5,000 pickup trucks parked on the side of the road. So this will be mandatory even for our more senior employees. They'll come into parking lots perhaps one near the regional airport, perhaps one just outside of the district of Kitimat and maybe another one in the center for people that are locally housed in Kitimat. And from there they'll take shuttle buses into the site. I said I wanted to mention one more thing about medical. We've been linking in a lot with BC Northern Health. We're quite aware that at the impact this number of people would have on the local healthcare system. So we would be building a full medical clinic inside of our facility to keep as much pressure off of the doctors and hospitals in the region as possible. That doesn't mean we'll never use them, but the day-to-day healthcare of our workforce will be taken care of on the site. And then last thing would be amenities. So we will have recreation on the site. Things like jogging pads, bike pads, sports fields outside, gyms and recreation facilities. And on food and beverage we are planning a wet camp facility. This is often a topic of some debate. It will allow controlled access to beer and wine, hopefully in the same facility where we're offering a normal meal. Trying to ban responsible consumption of beer and wine on a site of this size is quite impractical and just drives people sort of underground with their habits. We'd much rather have this be a healthy part of wrapping up the end of your day or your work week in a controlled way. We've made a fairly conscious decision to keep it that way. Again, people can still choose to go out to a restaurant in the community in the evening, but we want to keep that in a fairly balanced pastime rather than an overwhelming stress on the community. Okay. So the focus of our Ministry of Labor over the past as well has been understanding the scope of potential impact from this collection of proposed projects. And what we've been looking at in the last few slides is focusing on one project. I think the proposal is probably one of the more mature ones, but still many, many months away from making a final investment decision. And so one key activity for our municipal staff has been a fairly intensive education program. And that's both focused on council and focused on the community. So we spent a little bit of time documenting the existing supply. And so you'll see the four central neighborhoods, the cable car area and the rural areas, both six-kilometers from downtown, the cabal and the chackle, and voice-out neighborhoods, the other three primary neighborhoods in our community. So we're looking at adding density within the footprint of the existing dwelling wherever possible. It's a lower cost option, and it certainly makes more sense in terms of supporting transit services and the existing extensive collection of walkways and interior walking paths and interior parts of our community. And we're also trying to take advantage of the potential that's operated by existing undeveloped sites, again, within the channel site proper. So put this in perspective against the 125 units that we're out to the market for now. And it's very much in perspective with the scale of these developments. So the absolute maximum capacity is kind of around 1,000 long units. We don't think we'll get that, but it gives you an indication that we really don't need to do a new neighborhood until we get close to that level of investment. And I don't know that we will get that with the current suite of projects that are on the immediate horizon. So since mid-2013, in the middle of last year, we've had a series of housing workshops for KMT Council in particular. The first of those focused on the housing data where the players were. The second one talked about the role of the local government specifically, defined the problem and held a kind of a workshop dialogue with Council, looking at the potential policy options. Three in four of those kind of two primary workshop sessions focused specifically on policy. And so we looked at a whole range of policy options and evaluated those on the basis of both potential timing and municipal cost. And so staff's take on this was that you really wanted to select policies that work for your community in terms of delivering housing units in a timely fashion and really minimizing municipal expense, both capital cost initially, and in the case of some potential housing projects or housing approaches, you're minimizing kind of ongoing operational expense. So to have a housing department for your local government can be extremely expensive and we didn't know that we wanted to move in that direction, at least not initially. So from the 12 key options, or 12 policy options, we've narrowed it down to these six priorities. And so Council has opted to move forward on all six. Again, the check cards indicate work that has been completed and the error heads indicate work that's ongoing. So just the bonus, I think that's well in hand. We've got basically a draft policy now and we'll have a long conversation with Council in the middle of October. The Coach House feasibility project, that's also well in hand. We have an intern doing, I think, what will end up being a very good piece of work on that, coming up with both policy framework for selecting where that use can be accommodated in our community and some design guidelines around specific individual buildings, what makes sense in certain locations, minimizing the visual impact for the balance of the neighborhood. And upcoming, of course, we have our business plan or the housing action plan and specifically also a discussion of community amenity contributions with regard to density bonus aid, clearly one of the hot button political topics for the next municipal election in the middle of November. Okay, so here's just kind of two examples, there's two slides with two examples of policies that have to be adopted. The stratum conversion policy was particularly controversial and it took Council a long time to kind of accept that there needed to be some movement in this area and perhaps some limited tethering of developer opportunities to stratify individual units and individual buildings. So the tipping point for that policy decision was really the number and the passionate story of people who were moving their homes using their long-term rental accommodation facilities as buildings were renovated to appeal specifically to the contract market where people had fairly rich living-out allowances and could afford to pay $100 or $150 a day for accommodations that vary in these needs. And so units that were unfurnished were furnished, cleaning services were established, leases, uneducated tenants were persuaded to sign leases and in the case of British Columbia legislation that basically removes the protection that you have from a month-to-month typical rental program. Okay, so I think we skipped over the secondary suite program, that's okay. Now I think we're just going to wrap up with some closing comments. So I think that your call message that we've learned is really, I think as Elliot has spoke to you as well, there is significant and really, really significant impact in advance in development. So people just talking about these issues can drive prices and can drive availability. We have to be really aware of that when we speak in public or when we talk about our projects' development plans. So municipalities, it's critically understood to understand and respond to the kind of pre-FIG market activity. So you want to be relatively cautious but you have to engage. You have to engage the potential investors in residential real estate and in commercial real estate and you certainly have to try and develop, I think, the best partnership you can with the departments themselves. And the construction workforce isn't what municipalities plan or go for, but they have to understand and respond to that unique workforce as well. And so we chose to do that by citing a fairly large construction camp recently close to a downtown core so those individuals can access downtown core on foot. We have an appropriate level of walkway connection and sidewalk connection to serve that market and the legacy of that project will be a new multi-family site where we can focus longer-term development as we move forward. So you need to be ready but not too ready and it's really important to focus, I think, on capacity planning rather than infrastructure construction. And certainly, you know, a key industry partner or two can really make a world of difference in being a partner or to help the community cope with this level of an intense industrial community.  I was very delighted of you all. Josh, can we pass this back over to you and also answer any questions that anyone might have? Well, first of all, I'd like to say thank you very much to both our presenters. It was an excellent presentation and it's very interesting to hear both of you side by side talking about the same issue. I've heard both sides of the story many times but not heard together just like that and I think for myself I could say I've learned quite a bit and I'm sure many of the folks on the line can say the same thing as well. So thank you very much for that. We have just about 20 minutes left here to do questions and there's two ways that we can ask questions today. The first is just ask your question on your line. Yeah, I think given that we do have about 50 people on the line, I'm thinking that getting perfectly quiet backgrounds and asking the questions that way probably isn't going to work so well. So I think it might be best if you just use that Q&A tab right at the top of your screen. You can type them in and then we'll be able to read them out and make sure that they're clearly understood that way. So if you do have a question, just feel free to use that Q&A box at the top. So we'll just wait for a few of those to come in. I think one thing that just stood out for me in the presentation was how closely and intimately LNG Canada and Kitimati is working together. I mean, they're sitting side by side in a Vancouver office right now which really demonstrates that. And I think for this large of an impact to a community, this kind of collaboration is so important and that really does shine through. So we did just get a question in here. Okay, so we've got a question for the housing that LNG will be organizing to attend a tender. Will they be requesting construction of accessible housing for when the housing is released back into the market after use? I believe this is a question for Elliot. Can you repeat that one more time? I think what they're asking is with the tender that LNG Canada is going to be putting out, are they going to also request for the construction of accessible housing to be released back to the market after use? So without having my tender document in front of me, I'm going to give what I think is approximately the correct answer. And that is that we've asked for some units in multi-family developments to be accessible, but not all of them in terms of full door width and accessible bathrooms and counter heights and things like that. But I think we have asked for a percentage of them to be and given credit in the tendering process where they put those forward. In our temporary accommodations, in the workforce village, we will have a percentage there, around five or eight percent of the rooms that are accessible. But we'll put them in a particular area near the transportation house. That means we have a few buildings that are especially equipped, but we don't spread it out everywhere. So given that that's a temporary facility that will come down later, I think that's acceptable. But having a number of accessible units available in the community is also important later. So the answer is yes, but not for every unit. I think that the district that came out recognizes that as something that we'll need to address in terms of quality changes in the OCP as well moving forward. So we're preparing to set some standards around that guideline, specifically in relation to the development community and many contribution policy and just a lot of different policies too. Another interesting bit is we're going to have a very large population of workforce, many of whom don't want to sit and watch sports all evening or go out and have a bunch of beers and eat. I think we're going to have a fairly good throw of volunteers into the community. We already saw that in the last year or two with the emergency shelter. A lot of engineering staff that have worked on housing issues before. This workforce involved in supportive housing and accessible housing and perhaps developing some more nonprofit type of solutions is I think a great opportunity to keep people engaged and interested in the community and frankly to keep them from being bored, which is the worst enemy of any workforce accommodation. So another facet of how we can sort of benefit each other in this cycle. Thank you, Elliot. And we have another question here from Andrea. So I think this one's also for you, Elliot. What is LNG Canada doing for workers who are already living in Kitimat? Like what would you be doing to support existing health and existing social services in the community? I'm not sure I'm actually equipped to answer all of those questions, but I will answer that by saying, if you drop a pebble in the water and think of a concentric circle spreading out from it, that's how we'll be looking for employment. We want as many people as possible to come from the local community and frankly that makes financial sense too. But we also know that there are population limits. We could hire every able-bodied person in the community and still not be at the right place. I think the short answer is that you'd be about 3,500 people short if you need 4,500 people. So how do we help? We make sure we don't collapse the housing market for them, either by exploiting prices or driving them through the floor. We try to make sure that we don't create a shortage in stock and we make sure that we don't wreck the local quality of life by overwhelming the health care system or the grocery store or the child care, or elder care when that's appropriate. There are a lot of ways we can sort of contribute on those levels with both volunteers and direct participation. I can't think of our CX, our public relations people would hate me for this, but the very first thing is we can't wreck it. It's a great place to do that. And if it causes the social structure or the economic structure to crumble, that's the worst possible thing we could do. We have to live and work in this community for at least the next 25 years. Some of these plants last longer than that. We're about to move into the house next door and we have to make sure the community works. It starts by hiring locals, starts by making sure we don't ruin what's good about the current situation. And there's a lot of good. Thank you. And so we have another question for Michael. And this one relates to, I guess, the coordination between groups like LNG Canada, District of Kitimat, DC Housing, other stakeholders who have an interest in housing and talking about the long-term workforce housing that's going to be built and other, it can be recycled in the future for low-income, below-market housing after their completed and planned use. Okay, so I think that that's theoretically possible. I don't know how useful it will be in terms of delivering on the ground realistically. Kitimat's need for affordable housing is now at the same time that construction camps are actually going in. So, you know, it's not the ones where you don't want to put the chickens before the egg. You want to have both. So it might be possible to recycle labor force housing as low-income housing in another community. But by then, I think we'll actually have to have something already in place in our community. Yeah. Temporary never turns out to be temporary in low-income and assisted housing. If you put people in or make it accessible to them, temporary units, there's a high likelihood that they stay there for 10, 15, 20 years. That means you're starting at a, I really am not terribly acceptable long-term housing level to begin with. So, I think it's... I mean, this is in terms of function. It's almost like it's an SRO in existing footprint without real full kitchen facilities. So there are some challenges in terms of repurposing the type of units that are going up in workforce accommodation facilities today. So we are paying a great deal of attention in the community to efforts to either revitalize existing buildings or see what can happen in new structures in a creative way to kind of build up that stock. But we now have a little bit of time to do that, I think. I hope that answers the question. I'm aware we've made a commitment to remove this facility when we're done with it. So it's really about what gets left behind in the permanently built infrastructure inside of the residential areas. The question is on the board right now. Is there anybody else that would like to ask the question before the end of this session? Maybe with that, I'll also just remind you that if you're a member of the Planning Institute of BC, we are offering 1.5 organized and structured PIBC learning units for today's session. I'm sure you claim that. I would also like to just thank our presenters again for the excellent presentation. Also, our audience for staying in touch with us during the course of the presentation.  So you're obviously very interested in the topic, so thank you for that. And also to our partners who once again have put quite a bit of work into helping us think out these webinar sessions and contributing to them and also helping them just make them work on a monthly basis. So we hope to put on a number of future sessions and it's really the work of our partners that helps make that possible. Great. And again, just like to echo many thanks both to Elliot and Gwen for that great presentation on behalf of the Economic Development Division. Thank you very much for everyone for joining in and your engagement and participation this afternoon. We just have one last comment from Rona actually. Just thank you. Great presentation. You're most welcome, Rona, and thanks again to Elliot and Gwen. I'll just put the camera back over to them for their goodbye and we will sign off for this afternoon. One other note, we will be sending out a quick survey questionnaire immediately following the webinar. It really helps us develop better webinars that help serve you and your communities better. So if you could take just a couple minutes to fill that out and give us some feedback, we sincerely appreciate it. Once again, just put me over to Elliot and Gwen. Thanks so much to both of you and have a great afternoon. Thank you. Thanks, Josh. Bye, buddy. Take care.


Frank, five years since the IPO, where does time go? I don't know, but I'm glad I'm here five years later. It's been a great five-year ride. We've added six ships to our fleet in that time. We acquired a competitor in prestige cruise holdings. We've doubled revenue and earnings per shares have increased five-fold, so it's been a pretty good five years. Delta was out this morning, had a very strong quarter. Take us through your 2018. I know when we last heard from you on the third quarter, bookings look strong. What does it look like now? Yeah, nothing has really changed. If anything, the economy continues to turn along. We have record markets, record low interest rates, record low unemployment. Even the world economies are strong. No one even talks about Greece anymore. So we've got a pretty good situation worldwide in the macroeconomics area. We're a discretionary spending company, and I think that people have more money in their pockets today. And are excited about having even more money in their pockets later this year and into the future because of the tax cuts. So it's all good. How have you thought about tax reform in terms of earnings? What type of boost can you expect? I'm guessing people get their bonuses at work. Walmart giving out bonus. A lot of these companies give out bonus. Maybe they spend it on a cruise vacation. Yeah, maybe they will.  And I think that the cruise industry will get its fair share. A phenomenal story for you. You started a cruise line from scratch. All these VCs are starting apps. You can't do that again today. No, it's one of those perfect storms in a very good way. We started the business back in 2003 with $7 million. Today you couldn't fill the tank with fuel in one of our ships for that kind of money. So we feel very, very fortunate. The management team, the investor group that backed me at the beginning are still with me today. So they're not just investor, they're friends, they're family. And I'm so happy and proud to be able to continually lead this wonderful company. Are there other brands out there thinking about M&A?  Are there M&A opportunities in this space? Well, you know, the cruise industry has grown over the years through consolidation. Norwegian Cruise Line Holdings just did by acquiring my old company that owned Oceana Cruises and Regent Seven Seas Cruises. There's still pockets, but there's less pretty girls available than ever before. So, or pretty guys for that matter, too. But there are still opportunities, but there are slim pickings. What about the regulatory? As someone who started their own company, how has the regulatory outlook now under this current administration, have things eased as much, has it become easier for you to do business? We haven't seen much yet in that arena. The change in policy to Cuba didn't affect us a whole lot. In fact, if anything, it strengthened the cruise industry as the best way to visit Cuba. So far, I think it's been positive. Tax reform, like we said earlier, has a broad reach. And I think it's good for all business. But the kinds of regulations that the administration is talking about hasn't touched us very much yet. And lastly, I have to ask you about what happened with the storm in the bomb cyclone. How do you manage something like that so maybe that doesn't happen again next time? You know, weather's unpredictable, and that's what happened this weekend. The good news is our ship is back in the Caribbean carrying 4,000 happy cruisers. So, all good. How big could these ships get? How big can they get? I don't want to say infinity, but they can get bigger. We now have six ships or so that are 170,000 tons, carry 4,200 guests. And we're able to put on board just about everything you can think of. Our newest ship, Norwegian Bliss, that will be in New York this coming May, has a 1,000, think of this, 1,000-foot-long racetrack. That's not normal. No, double-decker, eight turns, two turns cantilevered. And banked over the side of the vessel, 10 cars can race at 35 miles per hour. I've done it on one of our other ships, Norwegian Joy, that's in Shanghai today. And I haven't had that much fun since I learned how to ride a bike. I mean, it's fantastic. I've got to get out of the office. Frank Doreal, congratulations on this. Thanks for taking time. We'll invite you to be on board, fair enough. Thank you.


Can mushrooms be medicinal? Mushroom-based products make up a sizable chunk of the $50 billion supplement market. This profitable trade provides a powerful incentive for companies to test the credulity of their customers, and sadly, unsupported assertions have come to define the medical mushroom business. For example, companies that market herbal medicines exploit references to studies on mice to promote their mushroom capsules for treating all kinds of ailments. But if you haven't noticed, we're not mice. I mean, it wouldn't be surprising if mushrooms have some potent properties, after all, fungi, or where we got a bunch of drugs, not the least of which penicillin, and also cholesterol-lowering drug lovestatin, and the powerful immunosuppressant drug cyclosporin. I still don't think a little mushroom could have pharmacological effects. Don't forget, they can produce some of our most powerful poisons. Some kind of look the part like the toxic Carolina false morel, all toadstool-y and such, but others have more of an angelic look. Indeed, literally called the destroying angel, that's its name, and as little as a teaspoon can cause a painful, lingering death. So anyway, we should have respect for the pharmacological potential of mushrooms. But what can they do that's good for us? Well, consuming shiitake mushrooms daily improves human immunity, giving people just one or two dried shiitake mushrooms a day, about the weight equivalent of 5 to 10 fresh ones for four weeks, resulted in an increase in proliferation of gamma-delta T lymphocytes and doubled the proliferation of natural killer cells. Gamma-delta cells act as a first line of immunological defense, and even better, natural killer cells kill cancer, and the shiitake did all of this while lowering markers of systemic inflammation. Oyster mushroom extracts don't seem to work as well, but what we care about is if mushrooms can actually affect cancer outcomes. Shiitakes haven't been tried yet, but reishi mushrooms have after being used as a cancer treatment throughout Asia for centuries. Reishi mushroom for cancer treatment. What does the science say? A meta-analysis of five randomized controlled trials showed that patients who had been given reishi mushroom supplements, along with chemo and radiation, were more likely to respond positively compared to just chemo and radiation alone. Now, although adding a reishi mushroom extract improved tumor response rates, the data failed to demonstrate a significant effect on tumor shrinkage when the mushrooms were used alone. So they aren't recommended as a single treatment, but rather an adjunct treatment for patients with advanced cancer. Now, response rate just means the tumor shrinks. What we care about is whether or not it actually improves survival or quality of life. We don't have convincing data suggesting reishi mushroom products improve survival, but those randomized to reishi were found to have relatively better quality of life, so that's a win as far as I'm concerned. What about other mushrooms? Although whole shiitake mushrooms haven't been tested yet, there's a compound that's extracted from shiitakes called lentinin, which is said to have completely inhibited the growth of a certain kind of sarcoma in mice. But in actuality, it only worked in one single strain of mice and failed in nine others. So are we more like the 90% of mouse strains in which it didn't work? We need human trials, and we finally got them. There are data on nearly 10,000 cancer patients who have been treated with the shiitake mushroom extract injected right into their veins. What did the researchers find? Well, find out next.


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Hello and welcome to the session. This is Professor Farhad in which we will explain depreciation as a tax shield. A shield is something that's going to protect you, but how does depreciation protect from taxes? Well, first we have to understand what is depreciation in order to understand how does it function as a tax shield? Well, depreciation is a cost allocation of long-term asset. What does that mean?  And what you do, and you paid 100,000 for that delivery truck for your business, it's an asset. And what's going to happen? You're going to allocate this expense. Let's assume this truck, you would estimate that this truck would last you for 10 years with no salvage value to keep everything simple. Simply put, what you do for year one, you will deduct 10,000 in depreciation expense. In year two, you will deduct 10,000 in depreciation expense. Year three, year four, all the way till year 10. And those are the depreciation expense, basically taking the 100,000 and allocating, splitting the 100,000 into 10,000 of depreciation expense. When you expense depreciation, it would look something like this. You will debit depreciation expense 10,000. You will credit accumulated depreciation 10,000. So this is the journal entry. So this what goes in the accounting record? Well, let's look at this. Let's examine this entry. We increased an expense. That's bad. When we have expenses, we don't like expenses because it's going to reduce our profit. That's bad. However, we credited something other than cash. Accumulated depreciation is a non-cash. You can see, we did not debit expense and we credit cash. We debited expense, credit accumulated depreciation. So simply put what we did, we increased our expense without reducing our cash. Now, the cash took place when we purchased the asset itself. But we're going to take advantage of this payment over the years and do what? And expense it against our income. Well, how is it exactly as a tax shield? The best to illustrate through an example. So let's assume we have a taxable income with no depreciation expense of 100,000.  So what do you have to do? You have to pay 21% of the IRS. 100,000 times 21%, you're going to have a tax bill of 21,000. Well, let's change the scenario a little bit. Let's assume your taxable income after depreciation. Now we included the depreciation expense 100,000 minus 15 equal to 85,000. Now this is your taxable income. Your tax rate is 21%. Your tax bill is now 17,850. So you were able to reduce your tax bill by 3,150. How? How did we come up with this figure? It's easy. All you have to do is take your depreciation, the amount of depreciation that you generated that you accounted for, multiplied by the tax rate. We said the depreciation is 15,000 multiplied by 0.21 will give you a reduction in your tax savings as we saw of 3,150. Simply put, to figure out how much of tax benefit or tax shield you will get from depreciation, you will take the depreciation expense and that doesn't only work for depreciation expense. Any non-cash expense works the same way. But since we are talking about depreciation, we need to emphasize depreciation. Take your expense, the non-cash expense, multiplied by the tax rate and this is going to give you your tax shield, all your tax savings. So the depreciation was 15.21. Your benefit is 3,150. And this is how depreciation will shield us, will protect us, will reduce our income tax bill. What should you do now? You should go to forhatlectures.com, work MCQs through false exercises with capital budgeting as well as other issues to solidify your knowledge about these topics. Good luck, study hard, stay safe.


Patriots are chatting the division at odds with the Miami Dolphins. Yeah, which is After the the off-season and free agency period that the Dolphins, how are you kidding me? Offseason for the Dolphins unbelievable. They got I mean armstead universally was the number one free agent tackle Yeah tackle and Overall he was the top and then I mean a guy like Tyree kill one of one they get him to The Dolphins had an unbelievable free agency Alc in gold fullback super star was with the Raiders before they got him most hurt I mean, it's impressive. They gave the stats. I think Sunday football gave the stats since 2000 I thought it was since 2010. It was actually 22 years with the amount of wins per team and literally this It's this room this room right here is the top four So we are obviously, you know the most obnoxious, but we also whenever we're talking about football It's fun. Yeah, like we enjoy it because there's hope all the time everything


So we did this Wi-Fi project a few months ago, and I wanted to do a follow-up video. I didn't want to do the video right after we did the project. I want to do the video after it's had some load put on it, after it's had a lot of users put on it. So a few months and plenty of usage has gone by. Client is really happy. We're happy with the results of this project. Everything's working great. Let's talk a little about the planning and why putting Wi-Fi in a bowling alley requires a little more than your average planning. Well, this is a bowling alley with about 90 lanes in it, and I've this is an aerial view of just how big this building is. It's quite large. Matter of fact, one of the challenges first we had to do was play on a second IDF room to get all the connectivity. Because the problem with the running a cable in a building like this is the building length is about 600 feet long. And once you start adding the turns into the wire, well, wire only has a range of about 330 feet before you have a problem or 100 meters. So we had to have and they already had an IDF room right here kind of in the front of the building. That's where the fiber line comes in that runs this and this is where the other end of the building is. There's party rooms and things like that all over the place. So we put in a second IDF room. It's roughly right in here. How did we do some of the planning and a little bit about this bowling alley? So this bowling alley is been around since the 60s. So that creates a challenge because it wasn't built all at one time. It was built over time and it's quite large, but it's also a series of buildings essentially all tied together. That presents some really interesting challenges. And this is one of the reasons that when it comes to like software that magically will tell me where to put the saturation. You can't rely on it. You kind of have to go onsite and do that. So that's what we did. We came onsite and we walk around the bowling alley. We actually were there also when there weren't users. This is actually some post photos. I didn't take many photos when we were first starting it. But what this is giving you an idea is we brought these unifies to the client. We pre-programmed them. This was the sales pitch. We pre-programmed some of them. They were having trouble with the Wi-Fi they had. We put them put them out on the counters, plugged them in, hooked up to their existing network and seen the range, seeing where some of the dead sparks are. That gave us a better idea. You can get a general idea even using the UniFi software to create some heat maps to try to determine where you think they're going to be. You can also look at different areas because the fire marshal does some of the work for you. They'll put a notice of just how many people and the capacity of each of these areas. You can assume, depending on the type of job it is, but for this because they wanted a guest network was an important aspect to this bowling alley, that there won't be more people in those areas than the fire marshal will allow. If you plan based at least on that, at least each person has a phone and maybe they have a tablet depending on the usage. But I did notice, could we stop by when they were busy? There's a lot of kids there that have tablets. That seems to be quite a thing and they want to watch Netflix. The guest network was something that the customers really wanted and this is something the bowling alley contracted us to provide. So once we kind of had an idea that they have a lot of people there, we went to work on the on the building out the network. And what we went with was, and this is actually a little post here, there's about 700 people that get on there to when they're busy. So it's about 700 people on network. They told us and we planned in capacity wise for even more than that. But it seems to be about 700 people on there on some of the bigger times when they have a lot of people coming in. The devices we chose to use, mostly in all the big areas, we went to Unify APHDs. Those HDs, and I'll actually pull this up in this area here. We use, for example, this is like the middle of the building and we have right where it's a snack bar. You can see where we installed one of the Unify APHDs. This has no problem covering this entire area. So because it's a very open area, there's not anything blocking it. So the Wi-Fi saturates really well. And the snack bar one, we'll show you here. Where's that snack bar? 244 guests on there, no problems at all. And this was just the other day. So they had an event, so I figured it's a good time to talk about this job because you can get an idea of just how many people at once are on there. So we have 215 there, 244, 206, 121. And over at this place here, we have, what, 76 at the arena bar. So that kind of builds out the density. That kind of builds out the density. Now for the smaller rooms or like the party rooms, they call it the continental room, the Cosmic Party Room, those don't even have a capacity over 100 people that you could get into those rooms. Some of them only can fit about 40 people. So we just went with the standard Unify APCLRs for there. So guest networks built out on there, we know that they're solid. Now, some of these were recently started in case you're wondering because we just pushed them firmware updates. So there's not a total data on the ones that we just pushed new firmware updates to. The data total is a little bit off also because reset our controller for anyone wondering. We just upgraded to the 19 version and I didn't bother keeping all the stats, not too worried about them. So I have a few stats from a few days ago, but we don't keep a lot of high density stats. That's a whole topic for a different discussion. But the point is that these systems are working wonderful.  And let me kind of give you an idea. I'm talking about right here is that bar area. You're looking out through a wall and there's a wall here. And then it goes around this bar kind of wraps around where some of the pool tables are. Well, there is a series of walls in between. And maybe there is some range to reach the upper ceiling because there's a big transition from this ceiling to that ceiling. So there's a big density. There's actually another series of offices that are above this in that gap. So you have a lot of things blocking the Wi-Fi. This is why we opted to go with a series of ACLRs in the bar area. So there's not any connection issues. And this is something that a heat map may not have told you. So you wouldn't be able to see because you're dealing with elevation changes as well as walls and things like that in there. So that's one of the reasons with Unify. Our plan is always to go with more Wi-Fi and put more less expensive devices in these areas that you know you're not going to have a ton of users. But you still want to make sure they have good connectivity in each of these. At least it's hard to get the perspective for the transition change. But you can tell there's how tall the ceiling is versus how tall the ceiling is in a bar. Then over here, this is another, the ceilings are interesting because the way they put some of the lights in and same with some of these facades and things like that. So that's where all that we kind of peppered around. I guess you could say all these different APC LRs are smaller, they're real cost. But once they have all that in, they have excellent coverage in all these party rooms. Now, this gives you an idea of some of the bandwidth and some of the things they're being used for. And I also talked about the firewall. And we're going to break it down to system states. And then we're going to go system processor update. And this is over the last three months. What I wanted to highlight here is yes, this is a 500 meg circuit and this happens to be an SG-3100 running it. They're not running intrusion detection, not part of scope of work, not something they're interested in at all. They do not want to filter or monitor any of those users. The only thing we really have set up in this starts at the Unify side, we did set up guest rules. So there's full guest isolation. The guest network is very large in terms of scope, but we did set it up. So each guest up and down only gets two meg. This kind of limits just how much bandwidth they can pull and leaves bandwidth for everything else. So you do have some traffic shaping going on and the SG-3100 can handle it. But because it doesn't do any type of deep packet inspection, the SG-3100 still works for this particular use case. Now firewalls, one of the things that people don't always get is that you really want to look at their ability to handle states. So when a system has a connection for each IP address, each device that connects, there's going to be assigned an IP address, but that system's going to reach out and make a lot of different connections. You know, people have 20 tabs open in their browsers, people have a lot of applications on their phones. Those applications, each connection they have outbound is another state and one website may have a few states or quite a few states because of all the different servers it connects to. So the firewall has to keep track of all those state tables and that's one of the reasons I brought up. So here is when they had, you know, high users a few days ago, they had an event and you have all these users, you know, about 6, 700 users on there and here's what was going on with the firewall. So in terms of how many states was that? About 4,000 states, not 4,000 IP addresses, but 4,000 states. So IP addresses and every connection that those IP addresses made. But what did that do to the SG3100 and can it handle that capacity? Yeah, you look at the filter states, let's actually pull up here system and we're looking at the processor for the same time here and people just change this one to make it a little cleaner. Change this to none, change just the processor. So you can see this 4,000 states right here. Update, never breaks idle. So here's the average 0.5, 0.5, 133 processes peaks. It just barely moves a little bit right here when they had that peak time. But that's one of my points that the SG3100 can it handle it? Absolutely. It's not a problem for it to be able to handle that much traffic, that much packets and we'll actually switch it to packets here. So here's some of those peaks and like I said those over 4,000 state tables when it peaked right there. But when you look at the processor, which is this green line here, you can see it can handle that perfectly fine. This question comes up a lot of what or not I need to build some incredibly high-end PF sense box to be able to handle 400, 500, 600 connections, 600 people on a wireless network. It is long as you're not having a need to run all the IDS intrusion detection and everything else, you're good. It will handle that many connections. That's part of the other reason I wanted to make this video was to talk about what we're doing to planning. Can you use that firewall for it? Absolutely. It works great. It's not even breaking a sweat. But if you have a need to do IDS intrusion detection in the full gamut of DPI and it logging, well then you're going to need something a little bit heavier. Those are the tools that take up more. Just managing this many connections and passing traffic and doing the filtering, that actually is handled really well here. So hopefully it's offered you a little insight into some of the jobs and some of the planning that went into it. It's really more hands-on. It's not magic where you can just say, oh, I just plug this software and I draw the building and it just knows. You can't tell what's in the walls, especially of a building that was built several times and remodeled several times. That can be challenging. So bringing the Wi-Fi out helps that a lot. And when it comes to the capacity, as long as, depending on the use case, as long as they don't really have a need for things like full deep packet inspection and filtering, mostly they go, hey, we want to guest network to support a lot of users. You don't need the fastest, biggest firewall to be able to do this when it comes to PF, since you can do this, for example, with an SG-3100. And like I said, this is a symmetrical 500x500 fiber connection that they have here. And the project's going really well. The customer's really happy. And that's what this follow-up is. Three months after we installed it, this is what it looks like. All right, thanks. Thanks for watching this video. And I'll see you in the next video. Thanks for watching this video. And I'll see you in the next video. Bye. See you next time.