Angie Lottes, The Watershed Center RCDI Workshop - April 5 th , 2016 - - PowerPoint PPT Presentation

Angie Lottes, The Watershed Center RCDI Workshop - April 5th, 2016 – Sacramento, CA

Hayfork Community Enterprises

Our vision

• Integral with community
• An incubator for entrepreneurs
• Enhancing economic opportunities
• Job creation
• Synergistic businesses
• Access to quality

infrastructure

• Administrative support as

needed

• Servicing local and regional

markets

• Enhancing natural assets
• Wetland enhancement
• Floodplain habitat restoration
• Wood utilization – and so much

more

Millsite finance

• Purchase cost was $370,000.
• Community bank loan ($250,000) – standard 30 yr.
• $170,000 loan from (Trinity Timberlands/New Island Capital) – 5 yr.
• included $50,000 in additional capital improvement funds to help

get the site up to standard for basic operations (roads, electrical, building improvements, etc.)

• WRTC is currently sole owner
• Currently developing for profit structure (likely LLC) and seeking 10-15

local investors to buy down second loan and foster community investment and wealth creation

• WRTC will maintain majority position
• 2016 loan (in-process) will include additional capital improvement for

roads, buildings and fire control

Tule Creek Forest Products

 Bundled firewood

production and sales

 Heat-treated,

certified pest-free

 Grocery,

convenience, and feed stores. Campgrounds

TCFP project development

 Approximately $400,000 in

development and start-up costs through year 1

 Combination of foundation

program-related investment ($250,000) and WRTC unrestricted funds

 Used and new equipment, utility

upgrades, installation, fabrication, building repairs, log inventory, payroll, sales

Year-1 progress

 2 full-time year-round jobs  8 full-time seasonal (5

months)

 50 log loads processed  10 loads finished product

sold with 10 more bundled

 Markets proven and

additional IDed

 Production streamlined  2016 production

improvements IDed

TCFP going forward

 Securing $400,000 in additional

financing for year 2 inventory and

• perations (community bank

loan)

 Plan to purchase 150 log loads  Sales target of 100+ finished loads

– 80% hardwood/20% softwood

 Projected to achieve profitability

at this scale in 2017

Beyond firewood

 Merchandize out higher value logs from firewood supply

stream

 Currently have a small sawmill operating in peeler shed

 Lumber for local fencing and bee boxes  Blanks for tanoak baseball bats

 Exploring composting and vermicomposting with non-

local business partner for regional markets

 Courting non-wood product businesses as well  We want to fully develop the potential of the site,

maximizing lease income and economic activity for the community.

Challenges

 Substantial debt and risk  Continuing log supply questions  Potential for markets being flooded from drought-killed

timber

 Seasonal inventory costs and seasonal markets  Lack of incentives for wood energy in FERC-regulated area  Transportation logistics and costs from isolated

community

 Future utility upgrade needs  Training and maintaining workforce

Many thanks

 Contact us:

Angie Lottes angie@thewatershedcenter.com and Nick Goulette nickg@hayfork.net