Financing YOUR ProjectFinancing YOUR Project

Speaker Background Speaker Background Rick MacLeod Farley, MacLeod Farley & AssociatesRick MacLeod Farley, MacLeod Farley & Associates

Specialists in Aboriginal Ecotourism, Heritage Tourism Specialists in Aboriginal Ecotourism, Heritage Tourism and Community Economic Developmentand Community Economic DevelopmentExtensive work with and for the Ontario James Bay CreeExtensive work with and for the Ontario James Bay CreeAssignments across Canada from the Yukon to Labrador, Assignments across Canada from the Yukon to Labrador, including New Brunswick, Quebec and Ontarioincluding New Brunswick, Quebec and OntarioTrack Record:Track Record:

$35 million in projects with clients since 1994$35 million in projects with clients since 1994Average financing: 14% equity, 80% grant and 6% loansAverage financing: 14% equity, 80% grant and 6% loansOver 95% approval rates on funding applicationsOver 95% approval rates on funding applications

Financing YOUR Project Financing YOUR Project

Session OutlineSession OutlineProject development Project development -- processprocessProject ExamplesProject ExamplesHow to secure your financingHow to secure your financingThe The ‘‘Group of SevenGroup of Seven’’

Aboriginal Community ProjectsAboriginal Community Projects

Cree Village Ecolodge (opened 2000)Cree Village Ecolodge (opened 2000)

Washow Lodge (opening 2009)Washow Lodge (opening 2009)

Algonquin Cultural Lodge (proposed)Algonquin Cultural Lodge (proposed)

Development Process forDevelopment Process forCree Village EcolodgeCree Village Ecolodge

VisionVision1995 motel concept1995 motel concept1996 opportunity to think bigger (1996 opportunity to think bigger (financing sourcefinancing source))

PlanPlan19961996--1998 ecolodge community planning, business 1998 ecolodge community planning, business planning, architecture, engineering, funding applicationsplanning, architecture, engineering, funding applications

RealityReality1999 1999 -- $5 million $5 million financing approvedfinancing approved, construction begins, construction begins2000 2000 –– open for businessopen for businessoperations operations –– training, marketing, improvements, training, marketing, improvements, ……

Moose Cree First NationMoose Cree First Nation

Washow LodgeWashow Lodge

Process for Washow LodgeProcess for Washow LodgeVisionVision

1990 community idea 1990 community idea –– take over ONTC goose hunt camptake over ONTC goose hunt camp1995 guide training project, feasibility study1995 guide training project, feasibility study

PlanPlan1998 training project 1998 training project –– vertical log construction vertical log construction –– shell onlyshell only1999 business plan and archaeological study1999 business plan and archaeological studyWalkerton Tragedy in Ontario Walkerton Tragedy in Ontario lodge and business plan relodge and business plan re--designdesign2003 2003 –– applied for final funding required (2 federal, 2 provincial)applied for final funding required (2 federal, 2 provincial)

RealityRealitySpring 2005 Spring 2005 –– INAC recommendation, program closesINAC recommendation, program closes2006 2006 –– INAC approval, FedNor approvalINAC approval, FedNor approval2007 2007 –– NOHFC approval, ABC approvalNOHFC approval, ABC approval2008 2008 –– construction construction 2009 2009 –– OPERATIONAL!OPERATIONAL!

Algonquin Cultural LodgeAlgonquin Cultural Lodge(proposed (proposed –– Timiskaming First Nation)Timiskaming First Nation)

Process for Algonquin Cultural Process for Algonquin Cultural Lodge (Timiskaming First Nation)Lodge (Timiskaming First Nation)

VisionVision2002 Initial Efforts with Community Committee2002 Initial Efforts with Community Committee

leading to Native Village conceptleading to Native Village concept

PlanPlan2007 Concept Development & Feasibility Study2007 Concept Development & Feasibility Study2007 Business Plan with Community2007 Business Plan with Community2008 Pursuing capital financing 2008 Pursuing capital financing -- leads welcome!leads welcome!

RealityRealityto be determined!to be determined!

Two Private Sector ExamplesTwo Private Sector Examples

EE’’Terra, Tobermory, OntarioTerra, Tobermory, Ontario

Nipika Mountain Resort, B.C.Nipika Mountain Resort, B.C.

How to secure your financingHow to secure your financing

Step by Step project development:Step by Step project development:Vision, Plan, Reality Vision, Plan, Reality –– with step by step with step by step

financingfinancing

Types of financing Types of financing -- Equity, Grants, LoansEquity, Grants, LoansClarify your own financial resources Clarify your own financial resources –– cash, incash, in--kind, now kind, now and in the futureand in the futureOther financial resources Other financial resources –– what is available? what is available? (philanthropic, private, government, other) (philanthropic, private, government, other) Identify planning dollarsIdentify planning dollars

How to secure your financing, cont.How to secure your financing, cont.

PLANSPLANSBusiness PlanBusiness Plan

Story tellingStory tellingAudienceAudienceEngagingEngagingPictures (ACL example)Pictures (ACL example)Demonstrate viability, value, impactDemonstrate viability, value, impact

Establish CredibilityEstablish CredibilityOwn Track RecordOwn Track RecordTeam Track Record (architect, engineer, project development Team Track Record (architect, engineer, project development consultant, consultant, ……))Industry NormsIndustry NormsStrategic PlanStrategic Plan

How to secure your financing, cont.How to secure your financing, cont.

Pursue your financingPursue your financingShort list your fundersShort list your fundersSeek first to understandSeek first to understandSeek second to understand!Seek second to understand!

Build relationships with target partnersBuild relationships with target partnersCommunicate carefully & strategicallyCommunicate carefully & strategicallyReinforce Credibility AlwaysReinforce Credibility Always

How to secure your financing, cont.How to secure your financing, cont.

Introducing: The Group of SevenIntroducing: The Group of Seven

financing tactics from the fieldfinancing tactics from the fieldresults driversresults drivers

The Group of Seven, The Group of Seven, ……

1. Concept Development 1. Concept Development handhand--inin--hand with assessing Feasibility hand with assessing Feasibility of capital project and operations of capital project and operations

2. Share your story partner by partner, 2. Share your story partner by partner, step by stepstep by step

3. Phase Your Project3. Phase Your Project

example: Algonquin Cultural Lodge (proposed)example: Algonquin Cultural Lodge (proposed)Phase One: Initial Community Planning Phase One: Initial Community Planning Phase Two: Feasibility Study & Business Plan Phase Two: Feasibility Study & Business Plan Phase Three: Developmental Project Phase Three: Developmental Project Phase Four: Construction and Final Operational Planning Phase Four: Construction and Final Operational Planning Phase Five: Launch Phase Five: Launch Phase Six: Operations Programming ExpansionPhase Six: Operations Programming Expansion

The Group of Seven, The Group of Seven, ……

The Group of Seven, The Group of Seven, ……

4. Industry Norms 4. Industry Norms

5. Drawings and Visuals 5. Drawings and Visuals

The Group of Seven, The Group of Seven, ……

6. Curve Balls & Dead6. Curve Balls & Dead--EndsEnds–– AnticipateAnticipate–– Prepare your BackPrepare your Back--up Planup Plan–– Clear the Road Blocks Clear the Road Blocks

-- Independent Review TacticIndependent Review Tactic

7. Steady Follow7. Steady Follow--up Communicationsup CommunicationsPolite PersistencePolite PersistenceDonDon’’t Panic t Panic -- Questions are a Great Sign!Questions are a Great Sign!Thorough, rapid response Thorough, rapid response –– put the work in!put the work in!Patience & UnderstandingPatience & Understanding

The Group of Seven, The Group of Seven, ……