Financing YOUR Project
Speaker Background
Rick MacLeod Farley, MacLeod Farley & Associates
Specialists in Aboriginal Ecotourism, Heritage Tourism and Community Economic Development Extensive work with and for the Ontario James Bay Cree Assignments across Canada from the Yukon to Labrador, including New Brunswick, Quebec and Ontario Track Record:
$35 million in projects with clients since 1994 Average financing: 14% equity, 80% grant and 6% loans Over 95% approval rates on funding applications
Financing YOUR Project
Session Outline Project development - process Project Examples How to secure your financing The ‘Group of Seven’
Aboriginal Community Projects
Cree Village Ecolodge
(opened 2000)
Washow Lodge
(opening 2009)
Algonquin Cultural Lodge
(proposed)
Development Process for Cree Village Ecolodge
Vision
Plan
1995 motel concept 1996 opportunity to think bigger (financing source) 1996-1998 ecolodge community planning, business planning, architecture, engineering, funding applications
Reality
1999 - $5 million financing approved, construction begins 2000 – open for business operations – training, marketing, improvements, …
Washow Lodge
Moose Cree First Nation
Process for Washow Lodge
Vision
Plan
1990 community idea – take over ONTC goose hunt camp 1995 guide training project, feasibility study 1998 training project – vertical log construction – shell only 1999 business plan and archaeological study Walkerton Tragedy in Ontario Æ lodge and business plan re-design 2003 – applied for final funding required (2 federal, 2 provincial)
Reality
Spring 2005 – INAC recommendation, program closes 2006 – INAC approval, FedNor approval 2007 – NOHFC approval, ABC approval 2008 – construction 2009 – OPERATIONAL!
Algonquin Cultural Lodge (proposed – Timiskaming First Nation)
Process for Algonquin Cultural Lodge (Timiskaming First Nation)
Vision
Plan
2002 Initial Efforts with Community Committee leading to Native Village concept
2007 2007 2008
Concept Development & Feasibility Study Business Plan with Community Pursuing capital financing - leads welcome!
Reality
to be determined!
Two Private Sector Examples
E’Terra, Tobermory, Ontario
Nipika Mountain Resort, B.C.
How to secure your financing
Step by Step project development: Vision, Plan, Reality – with step by step financing Types of financing - Equity, Grants, Loans
Clarify your own financial resources – cash, in-kind, now and in the future Other financial resources – what is available? (philanthropic, private, government, other) Identify planning dollars
How to secure your financing, cont.
PLANS
Business Plan
Story telling
Audience Engaging Pictures (ACL example) Demonstrate viability, value, impact
Establish Credibility
Own Track Record Team Track Record (architect, engineer, project development consultant, …) Industry Norms Strategic Plan
How to secure your financing, cont.
Pursue your financing Short list your funders Seek first to understand Seek second to understand!
Build relationships with target partners Communicate carefully & strategically Reinforce Credibility Always
How to secure your financing, cont. Introducing: The Group of Seven
Æfinancing tactics from the field Æ results drivers
The Group of Seven, ‌ 1. Concept Development hand-in-hand with assessing Feasibility of capital project and operations 2. Share your story partner by partner, step by step
The Group of Seven, … 3. Phase Your Project example: Algonquin Cultural Lodge (proposed)
Phase One: Initial Community Planning Phase Two: Feasibility Study & Business Plan Phase Three: Developmental Project Phase Four: Construction and Final Operational Planning Phase Five: Launch Phase Six: Operations Programming Expansion
The Group of Seven, …
4. Industry Norms
5. Drawings and Visuals
The Group of Seven, …
6. Curve Balls & Dead-Ends – Anticipate – Prepare your Back-up Plan – Clear the Road Blocks - Independent Review Tactic
The Group of Seven, … 7. Steady Follow-up Communications
Polite Persistence Don’t Panic - Questions are a Great Sign! Thorough, rapid response – put the work in!
Patience & Understanding