Diane Francis Business Profiles

Wednesday, July 26, 2006

Jack Matthews to Build EnCana headquarters in Calgary

Dallas-based developer Jack Matthews has landed the deal to build the head office project for Calgary’s EnCana Corp. which will be the tallest building in Western Canada. It’s a homecoming for Jack who left Canada 12 years ago following a dust-up involving Toronto’s airport.

He grew up in Ontario, the son of a successful developer Don Matthews of the Matthews Group. His brother-in-law is former Ontario Premier David Peterson.

Jack’s woes in Canada started in 1993 after a consortium, called Paxport International, landed the $4-billion contract to privatize and redevelop Toronto’s airport. Jack became its chief executive because of his expertise in building and operating major projects. However, the contract was cancelled by the Liberal government the same year.

Paxport’s partners sued for contract breach and Jack returned to commercial development. In January 1994, he left for Dallas.

“All the money I had was tied up in the airport deal so I had to mortgage my house to get going in business. I figured Dallas was as good a place as any,’’ he said. “We had also done development business around the U.S. so I was familiar with their way of doing things.”

In 1996, the airport matter was finally resolved. Paxport’s partners, which included Charles Bronfman, and the feds settled before the trial judge ruled.

By then Jack was busy building his business south of the border. He began small. But today his company, Matthews Southwest, is doing one of the largest urban redevelopment deals in the U.S. on 83 acres in South Dallas.

“It was a derelict area and we’ve built loft apartments and entertainment, music venues there,” he said. “It’s now the trendiest part of Dallas. We’re also doing another 1,200-acre residential development north of the city around a great golf course.”

The 1,200-acre development consists of homes and retail sprawled around the lake within commuting distance of fast-growing Dallas. “I like doing business in Dallas but it’s different,” he said. “People there are so friendly that you don’t really know who your friends are.”

Now he’s set to do the most prestigious office project west of Ontario, also in another eminent capital within the oilpatch. In this case, Calgary. He’s impressed with the efficiency of the place, but not surprised.

“I wouldn’t have expected anything less after all,” he said.

The EnCana deal came about when the corporation created a research team to investigate building designs and financial business models. It surveyed North America and found two gems in Canada — a pair of uniquely designed and financed office buildings in Mississauga, Ont., built by Matthews for corporate clients Bell Canada and Bell Mobility.

“They liked the terms and the design,” said Jack. “I believe in partnering with corporations and I guess they liked that approach too.”

The deal was inked recently and the EnCana project is scheduled to be finished by 2010. It will straddle two city blocks near Petro-Canada’s headquarters in downtown Calgary and comprise one million square feet. The architect will be world-renowned Norman Foster of Britain, known for his environmentally friendly design work.

Key to Matthews’ competitive advantages is his firm’s ability to complete complex projects and in partnering financially, or sharing the cost-savings plus value of the tenure, with them.

Jack grew up in the development business and in 1985 became president of his father's firm, Matthews Group Ltd. Under his leadership, its went from $69-million to $500-million a year. He also made acquisitions that gave the company a national presence through Carlson Construction, Mustang Engineering and Matthews Projects in Western Canada and Matthews Contracting in Eastern Canada.

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