SECOND AND THIRD BOTTOM LINE IMPACTS:

Measuring Results

Deborah J. La FranchiCEO – Strategic Development Solutions

www.sdsgroup.com

June 10, 2008

Double and Triple Bottom Line Funds

1st Bottom Line: Risk-adjusted market-rate returns

2nd Bottom Line: Positive social and community benefits (low-income community)

3rd Bottom Line: Positive environmental impacts

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Funds Created by SDS and Economic Innovation

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Impact Reporting

No Standard

Challenges – data collection

Upfront Design – collect upfront

Reporting that Works for Investors

Reporting that is Feasible for Developers / Fund Managers

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Second and Third Bottom LineImpact Report

Goal: Standardized reporting tool; ease of use (investors); capture relevant data

Process: Compared 6 different reports; reviewed Gary Pivo’s Delphi Method paper; talking with investors

Input: Pension funds, banks, insurance companies, foundation endowments,

RPI (David Wood/Gary Pivo), ICIC

Current Status: Template under development; sample constructed

Completion: End of Summer

Next Steps: Finalize and share with industry

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One-Page Scorecard

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Sections

Project Description

Investment Overview

Project and Area Profile

Second Bottom Line: Social and Economic Impacts

Third Bottom Line: Environmental Impacts

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Project Description

TBL World Headquarters The TBL World Headquarters Project will rehabilitate the historic four-story Hudson Building, as well as construct a new building extension and parking lot on an adjacent site. This $38 million project includes $7.5 million in National New Markets Fund tax credits to develop over 80,000 sq. ft. of space to house the administrative office of the global headquarters for TBL World, to support itshumanitarian work addressing global poverty, hunger, and conflict resolution in over 35 developing countries world-wide. The project will also house TBL World’s new interactive public Action Center, community conference facilities, and TBL World Northwest’s Small Business Development Center. The facility will also serve as the new headquarters of the Lemming Foundation. The Action Center will serve as a regional educational center and resource for area schools and serve as a tourist attraction for outside visitors, and the business development center will assist low-income entrepreneurs who want to create or expand small businesses. The project also creates significant environmental impacts through its LEED Gold Certified design, though it is striving to achieve a platinum designation upon completion.

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Investment Overview

INVESTMENT OVERVIEW

Project Timeframe: Start Date: 3/2008; End Date: Fall 2009

Investment Date: March 19, 2008

Asset Class: Mixed-Use: Office, Cultural Learning Center

Type of Development: Historic Rehab; New Construction

Developed Square Feet: 80,000 (4-story facility)

Total Development Cost: $39,000,000

NNMF Investment: $ 7,500,000

Financing Sources: Other Federal NMTCs

$12.0MM

Federal Historic Tax Credits $ 3.3MM

Private Grants $ 2.9MM

Debt $13.3MM

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Project and Area Profile

PROJECT AND AREA PROFILE

Location: Portland, Oregon

Area: Downtown (Old Town/Chinatown)

Site Status: Underutilized; 75% vacant

Previous Use/Operations: Retail/Shopping Center; Parking Lot

Degree of Blight: Moderate to Significant Blight

Unemployment Rate: 18%

Area Median Income: 68%

Poverty Rate: 45%

Special Economic Zones: Downtown Waterfront Urban Renewal Area; SBA HUB Zone

Barriers to Development: High crime area; historic building

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Second Bottom Line:Social and Economic Impacts

2nd Bottom Line: Social and Economic Impacts

Economic Output for Construction: $23.24MM

Economic Output for Operations: $10.96MM annually

Employee Compensation for Construction: $ 6.10MM

Employee Compensation for Operations: $ 6.61MM annually

Construction Tax Revenue: $ 3.46MM

Operation Tax Revenue: $ 2.28MM annually

Taxpayer Break Even: $11MM/yr 5 (cumulative)

20 Year Cumulative Taxes: $45MM

Taxpayer 20 Year ROI: 310%

Taxpayer Internal Rate of Return: 18%

Operating savings and program funds: ($X)

Consolidates business infrastructure

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Second Bottom Line:Social and Economic Impacts,

Continued

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Second Bottom Line:Social and Economic Impacts,

Continued

2nd Bottom Line: Social and Economic Impacts

Jobs: 420 Total (220 Construction; 200 Permanent- 150 Existing/50New)

Creates new tourist attraction

Bolster foot traffic to support area businesses

Rehabilitates a historic property / Blight eradication

Outreaching to Women- and Minority-Owned Subcontractors

Increases region’s nonprofit infrastructure

Transit-oriented development: located on light-rail path

Working with Local WIB to hire low income workers

Finances real estate with flexible leases/rent

Retirement Benefits: X

Health Insurance: X

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Third Bottom Line:Environmental Impacts

3rd Bottom Line: Environmental Impacts

LEED Gold Certified (targeting Platinum)

CO2 Emissions reduction: X

Energy: 37% reduction in overall energy usage

Rooftop solar panels

Green roof installation

Mechanical system 50% more efficient than code

Energy efficient glass

Energy saving light fixtures

Potable water usage reduction: 40% reduction in overall usage

Low-flow fixtures

Storm water filtration and management

Water resistant landscaping

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Third Bottom Line:Environmental Impacts, Continued

3rd Bottom Line: Environmental Impacts

Recycling of materials:

Rehabs a historic building

95% of construction waste diverted from landfills

Building products of high recycled content

Promotes alternative transportation:

Strategically situated on a Metro line

Parking for fuel efficient cars

Bike friendly amenities (storage, showers, changing areas)

Environmental and sustainable living education provided in Action Center

Reduced heat island effect through green roof and light colored roofing

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DBL Handbook

Funded by the Ford Foundation

Provides a comprehensive overview of the field of Double Bottom Line investment private-equity funds.

The Handbook is available at:

www.sdsgroup.com

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