value&fundamentals “The city receives monetary benefits in so many other forms – fees, dues, levies, construction jobs, the ongoing impact on the valuation of surrounding assets and ongoing taxation dollars," Hutcheson adds. "So there is a commercial component with multiple impacts that should be measured when looking at the greater economic good.” POLITICAL RISKS The Build Toronto model reflects best practices in corporate governance, particularly around independence and expertise. The latest governance studies highlight the importance of independent directors who have leadership experience and industry expertise, which is crucial for setting strategic direction for the organization. Hutcheson credits Toronto's former mayor for being “enlightened” and capable of embracing “the commercial purpose” of Build Toronto. David Miller demonstrated that he had the courage to defend the independence of Build Toronto as a commercial, profitgenerating venture, in what, at the time, was a highly politicized environment. Support for an organization such as Build Toronto may change from election to election. It is also political reality that support for an organization such as Build Toronto may change from election to election. This adds to the political risk, since property development follows a timeline that’s far longer than the typical four-year political cycle. The only way to undertake long-term projects in an environment of potentially changing, shorter-term political risk is if the organization can remain depoliticized. For Build Toronto, like other publicprivate partnerships, that is the current and ongoing challenge. It remains to be seen whether Build Toronto will avoid becoming politicized and, thus, remain an independent entity that acts like a private-sector organization. Going forward, its current and future leaders certainly have a sterling example in the founding members of the Build Toronto leadership team. "It took some fortitude but we think it’s been established correctly,” Hutcheson reflects.

“The leadership provided by both the executive team and the board was a bull’s eye. That’s the way it needed to be done.” zz William J. Ferguson is the chairman and CEO of Ferguson Partners, Ltd.

and the author of several books on real estate leadership and entrepreneurship, including Market Discipline – The Competitive Advantage: Lessons from Canada’s Real Estate Leaders, published by the Real Property Association of Canada in 2012. Mark Ross is Managing Director, Canada, for Ferguson Partners. For more information, see the website at www.fpladvisorygroup.com UNGUARDED BUILDINGS INVITE UNWANTED ACTIVITY Nothing deters unwanted activities like Commissionaires trained professionals. In addition to patrolling your business or residential complex, our Commissionaires are your security concierges – a welcoming presence that will keep your property and tenants safe. With our experienced and engaged guards, we are your trusted on-site security. www.commissionaires.ca/cpm 26 July/August 2014 | Canadian Property Management .