Section B

The SGI2020

Strategic Plan DRAFT

Prepared for the Community Economic Sustainability Commission Contributors: Lawrence Alexander, Peter Elkins, Colin How, Lisa Stevens

March 2017

31

Table of Contents

PART 3 – DELIVERY MECHANISM .........................................................................................32

3.1 The SGI2020 “Collaborative” ................................................................................................................ 32

3.2 The Board .............................................................................................................................................. 33

3.3 Project and Funding Decisions .............................................................................................................. 33

3.4 Continued Role for the CESC ................................................................................................................. 34

PART 4 – TIMELINE .................................................................................................................35

PART 5 – BUDGET ..................................................................................................................36

5.1 SGI2020 Strategic Plan Budget .............................................................................................................. 36

PART 6 – CONCLUSION ..........................................................................................................37

APPENDIX ................................................................................................................................38

APPENDIX A: SAMPLE LISTENING TOUR POSTER ........................................................................................ 38

APPENDIX B: SAMPLE WEBSITE HOME PAGE ............................................................................................. 39

APPENDIX C: SAMPLE ISLAND “FIT QUIZ” ................................................................................................... 39

APPENDIX D: SEA CHANGE MORTGAGE FUND PROMO POSTER ................................................................ 41

APPENDIX E: MORTGAGE INVESTMENT CORP. – ROI CALCULATION ......................................................... 42

APPENDIX F: SUSTAINABILITY ASSESSMENT TOOL .................................................................................... 43

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PART 3 – DELIVERY MECHANISM

3.1 The SGI2020 “Collaborative”

The SGIs need a simple and practical delivery mechanism to implement the SGI2020 Strategic

Plan and to deploy money from the Sea Change Fund to support local economic development

initiatives that contribute to economic prosperity, social equity, and environmental quality. For

plan purposes, we refer to this oversight group and delivery mechanism as the SGI2020

Collaborative: this name reflects future vision and emphasizes the prioritization of shared input

and management across stakeholder groups.

There is a lot of interest on the SGIs in new forms of organizational structures that are well-

suited to groups that place a priority on social purpose. Examples are hybrid corporations,

Community Contribution Companies (CCCs), B Corps (B Corp is a certification for non-profit

companies who have met rigorous standards of social and environmental performance,

accountability, and transparency), community development corporations, community land

trusts, and cooperatives.

Design criteria

Our advice is to first decide what you want the delivery mechanism to be able to do (design

criteria), and then seek local, professional advice as to the structure makes the most sense.

To implement the SGI2020 Strategic Plan, these are likely to be the design criteria that are most

important:

Build social purpose into legal documents.

Control mechanism. Make sure that your entity is doing the things you set out to do.

Ability to accept both private and public funds.

Be the type of entity the CRD is authorized to grant to.

Ability to accept charitable donations and offer investors a charitable tax receipt.

Ability to distribute funds to both non-profits and for-profits.

Ability to hire and compensate employees and engage others.

Ability to accept land.

Governed by local residents.

B Corp-like impact metrics.

Regional equity.

There may be an existing organization that could be converted for this purpose.

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3.2 The Board

The SGI “Collaborative” should be governed by a Board of representatives from each Island.

Board members should be a mix of long-time residents and newcomers who represent different

locations, skillsets, and demographic groups.

We recommend a Board size of 15: this allows the Board enough scope to be representative but it

is still small enough to be nimble. Three-year term limits are an effective way ensure that voices

and perspectives stay fresh.

A committee of the Board will nominate Board members and have a continuing role in

identifying leaders in the communities who would be productive members.

A Board investment committee will consist of islanders with financial expertise that will help

guide proceeds from the Sea Change Fund and other fund raising using mechanisms described

in this report.

3.3 Project and Funding Decisions

Funding Application and Review

A mechanism must exist that makes it easy for community members to contribute to the review

process and have input in how the funds are deployed. This opportunity should be available to

all residents and property owners, and particularly those who have invested in the fund or hold a

mortgage in Sea Change.

Application

In addition to a business plan and pertinent personal and reference information, applicants for

funding from the responsible finance fund must document how their business or project

supports SGI priorities. The SGI2020 Strategic Plan identifies 7 pillars in which to frame the

benefits of a proposed project or business, and proposes that all applicants be required to

describe how their proposal aligns each priority area.

1. Environmental Preservation and Protection

2. Housing Availability and Affordability

3. On Island Employment

4. Goods – availability, affordability of identified needs

5. Services – availability, affordability of identified needs

6. Community Building & Volunteerism

7. Impact on extending the “Shoulder Season”

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Review

Applications to the Responsible Finance Fund would be subject to a staged review:

STAGE 1: Community Review

An online “Scorecard” accessible only to registered SGI residents and property owners via the

gulfislandshome.ca website will enable each participant to rate the proposed project along the 7

community priorities listed in the application process. Each project’s community-generated

score would be an important factor in final investment decisions. (See APPENDIX)

STAGE 2: Governing Body Review

A governing body would review the application and community feedback.

STAGE 3: Governors and Investors Vote

A vote by the fund’s Board of Directors would determine the final investment decision.

3.4 Continued Role for the CESC

In the short-term, The Community Economic Sustainability Commission should continue to

provide high-level recommendations, serve as an advocate for the SGI2020 Collaborative within

the CRD, and to continue to develop government to government relations with area First

Nations.

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PART 4 – TIMELINE

Summary timeline

Year 1 – 2017 Launch Year.

Adopt strategic plan Host “Listening Tour” Build SGI Lifestyle Brand Launch SGI single website – Gulf Islands Home Implement online Assessment tool Partner with mobile apps for transportation solutions Explore partners for mobile, pop-up, and club solutions to expand Goods and Services Develop event and sustainable off-season visitor pipelines Launch “White Label” MIC Begin to structure and form the non-profit SGI2020 Collaborative

Year 2 – 2018 Transition Year.

Transition out of Commission to non-profit Collaborative Continue to implement Awareness campaigns with community and externally Expand White Label MIC or establish second MIC to transition into mortgages.

Year 3 – 2019 Growth Year.

Launch expanded mortgage MIC Package financial services experience as a business to other communities Fully transition out of Commission to non-profit Collaborative

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PART 5 – BUDGET

5.1 SGI2020 Strategic Plan Budget

There is approximately $10,000 remaining in the total project fund of $50,000.

The submission of this SGI2020 Strategic Plan is a key milestone, requiring decision-making

from the SGI leadership regarding the allocation of the remaining funds. Depending on how the

plan is received and where the CESC would like to move forward, there are options for how to

spend the rest of the budget. Below is a list of potential next expenditures with cost estimates.

Action Est. Budget

Set up up non-profit SGI2020 Collaborative $5,000

Team to raise funds for white label MIC $10,000

Graphic designer to create website and brand assets $2,500

Videographer to shoot and edit real-life stories about island families $2,500

Print Materials for distribution, mailing $1,000

Copywriter to create website copy, news release, and promotional materials $1,000

Photographer to shoot images for website, promotional materials $1,000

Event budget for town hall events $1,000

Web Developer to set up online marketplace, residents direct, quiz, etc. $2,500

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PART 6 – CONCLUSION

2017 marks a “make or break” time, a turning point, for the sustainable development of the

Southern Gulf Islands. Past work, current relationships, world events, and quickly moving

economic and political priorities all point to action. Whatever course is ultimately set, it’s

essential that the SGI move quickly to engage the community in planning and implementation.

All signs point to success:

The islands are keen to work together;

The expansion of the “preserve and protect” mandate to include community and

economy as well as natural environment sets a strong foundation to work from;

The investment by the CRD in pulling projects together has created a natural launch-

point;

The global climate: politically, financially, environmentally, culturally, and socially make

Canada and the islands more appealing than ever. These include:

o Donald Trump, Brexit, the “slow movement” and minimalism, sharing and

collaborative economy movements, easy-to-use web and mobile solutions for

connecting buyers and sellers.

The extreme price and property tax increases in residential real estate markets in

Vancouver and Victoria over the past two years mean that the SGIs are positioned as the

hidden jewel in BCs crown – the last affordable, accessible, attainable communities in

the southern part of BC;

The rise in the size of the professional workforce wishing to work remotely, and the

increasing numbers of employers willing to hire them;

The development of technology sectors in BC;

The increasing dialog and partnership between the Salish Peoples and other island

communities;

Renewed commitment by the BC government to help non-urban BC communities

development technological solutions to building sustainable communities;

Increasing recognition by communities all over the world that reliance on government

funding is not a sustainable solution.

In preparing this plan we have seen firsthand the commitment, attitude, and resourcefulness of

the Southern Gulf Islands, and from an outsider’s viewpoint there is enormous potential to

achieve your vision.

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APPENDIX

APPENDIX A: SAMPLE LISTENING TOUR POSTER

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APPENDIX B: SAMPLE WEBSITE HOME PAGE

APPENDIX C: SAMPLE ISLAND “FIT QUIZ”

As part of the lifestyle branding of the SGI, we propose the creation of a simple, fun, short “quiz”

that creatively measures a participant’s fit for life on the SGI. With questions that speak to the

realities of island life, such as dependence on ferry schedules, clean air, lack of trendy clothing

stores, the proliferation of volunteer activities, short showers, and neighbours from many walks

of life, your score will tell you if the SGIs are the place for you.

Question: When you miss the ferry and must wait hours until the next one, you are most

likely to:

a) Stress out and hunt for my prescription meds

b) Find someone to grab a coffee with, or go for a walk

c) Bliss out over the unexpected free time, and use it productively

d) Start looking for boats to buy – to hell with BC Ferries!

e) Download an app so I never miss it again

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Question: Which best describes your approach to showering:

a) I shower twice a day whether I need it or not: it’s how I relax

b) A quick 5 minute shower on working days to clear my head

c) I generally just stand there and sing until the hot water runs out

d) Once a week whether I need it or not: I’m too busy for glam grooming

By making this quiz humorous but real, and deploying it to residents first, there is a likelihood

that the quiz will be shared with others through social media. To drive action metrics the quiz

can generate a shareable “score”, and link to real estate content for those who scored high, or to

tourism information for those who scored low. All quiz-takers learn about the SGI and possibly

receive a promotional incentive of some kind.

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APPENDIX D: SEA CHANGE MORTGAGE FUND PROMO POSTER

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APPENDIX E: MORTGAGE INVESTMENT CORP. – ROI CALCULATION

The Mortgage Investment Corporation Calculator below shows the varying returns using an

example of $5,000,000 invested at 5% interest for 60 months. The investor chooses how much

of their 5% return in donated to the Sea Change Fund. The very bottom row indicates the

revenues that flow to the Sea Change Fund based on how much of their financial return

investors choose to direct to the community (0% up to 5%).

*annual interest rate compounded monthly

The benefit for the MIC investor is knowing their investment is working by providing island residents

that may not be eligible for traditional borrowing due to traditional constraints the ability to own a home

in the Southern Gulf Islands. The MIC investor also knows they’re empowered to choose to allocate some

or all of their fund investment returns into venture philanthropy to assist fund with local economic

development initiatives that contribute to economic prosperity, social equity, and environmental quality,

through the creation of several share structures to choose from when deciding what percentage, you the

investor wants to go into a pool that then funds economic development activities

Separately to this report we have provided an excel spreadsheet that will enable the SGI

representatives to try different scenarios (eg. Smaller or larger principal fund, term, interest).

SGI2020 PLAN - Mortgage Investment Corporation CalculatorINVESTOR SCENARIOS Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6

Mortgage

Principal $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000

Mortgage Annual Interest Rate* 5% 5% 5% 5% 5% 5%

Monthly Interest Rate 0.42% 0.42% 0.42% 0.42% 0.42% 0.42%

Term in Months 60 60 60 60 60 60

Future Value of Investment $6,416,793 $6,416,793 $6,416,793 $6,416,793 $6,416,793 $6,416,793

Interest Accumulated $1,416,793 $1,416,793 $1,416,793 $1,416,793 $1,416,793 $1,416,793

Investor Preferred Share Class Base Rate @ 5% Base Rate @ 4% Base Rate @ 3% Base Rate @ 2% Base Rate @ 1% Base Rate @ 0%

Investor Base Interest Rate % 5% 4% 3% 2% 1% 0%

Sea Change Fund Return % 0% 1% 2% 3% 4% 5%

Investor Interest Earned $1,416,793 $1,104,983 $808,084 $525,395 $256,246 $0

Interest Earned for Sea Change Fund $0 $311,810 $608,709 $891,399 $1,160,547 $1,416,793

Division of Returns

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APPENDIX F: SUSTAINABILITY ASSESSMENT TOOL

The scorecard below reflects individual and aggregated scores for a project that is being proposed to the SGI community. Each individual (island resident or property owner) has the opportunity to read information about the project and attend an in-person or virtual meeting to hear more and ask questions. Then they may score the project according to community priorities, or “pillars” (in blue):

All scores are out of a possible 0 – 3, with 3 being a “perfect fit”. Individual scores are

aggregated and a final community score is generated. This approach creates a level playing field

SCORE

Preserve 1 18 1.2

Protect 3 30 2.0

Improve 2 20 1.3

Access to Rent or Lease 0 18 1.2

Opportunity to Build 0 15 1.0

Access to Own 0 15 1.0

Add Net New Jobs 3 45 3.0

Increase from PT to FT 3 10 0.7

Increase salary/wages 3 35 2.3

Increase Availability 0 36 2.4

Improve Affordability 0 14 0.9

Keep on Island 0 16 1.1

Increase availability 2 45 3.0

Improve Affordability 0 28 1.9

Offer new on island 0 14 0.9

Promote Volunteerism 3 35 2.3

Attract Young Families 1 23 1.5

Engage off-island owners 1 45 3.0

Fall 1 45 3.0

Winter 1 39 2.6

Spring 2 16 1.1

26 27 1.8

1.9

2.3

2.2

AGGREGATED SCORES

PILLAR AVG

1.5

1.1

2.0

1.5

Employment

Goods

Services

TOTAL POINTS AVG

SUSTAINABILITY SCORE

SINGLE PARTICIPANT

1

2

3

4

5

6

7

Community

Year Round Impact

PILLAR

Environment

Homes

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and offers a consistent, transparent method of assessing projects and prioritizing their

implementation.

In this example, the un-named project scores very high on the engagement of off-island owners,

adding new jobs, increasing availability of services especially in winter and fall.

--

Report Authors:

Lawrence Alexander

Cell: 778-587-5178 Email: Lawrence.alexander@shaw.ca

Peter Elkins

Cell: 778-966-1250 Email: 7789661250peter@gmail.com

Colin How

Cell: 250-580-7988 Email: colinhow@gmail.com

Lisa Stevens

Cell: 250-580-2927 Email: lisastevensconsulting@gmail.com