Fin inancing Heritage A Cooperative Alt lternative Jay Yanota - - PowerPoint PPT Presentation

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Fin inancing Heritage A Cooperative Alt lternative Jay Yanota - - PowerPoint PPT Presentation

Oct 05, 2022 256 likes •510 views

Fin inancing Heritage A Cooperative Alt lternative Jay Yanota CODC Seth Leon - ACCA In Introduction The Municipality of Crowsnest Pass is a collection of 5 towns located on HWY #3 in the Southwest corner of Alberta Located on

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Fin inancing Heritage – A Cooperative Alt lternative

Jay Yanota – CODC Seth Leon - ACCA

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In Introduction

  • The Municipality of Crowsnest Pass is a collection of 5 towns

located on HWY #3 in the Southwest corner of Alberta

  • Located on one of the major rail & road routes through the

Rocky Mountains it became home to some of the largest coal mining operations in Canada in the early 1900s

  • It quickly became a melting pot of engineers, architects,

craftsman and workers from all over the world who created a marvelous collection of buildings and facilities that form an enduring cultural heritage.

  • Several historic buildings were empty and quickly

deteriorating.

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The Backdrop

  • Following the 2008 global financial crisis there was a tightening
  • f bank lending and hesitation toward investment
  • A proposed multi-million dollar resort/conference center &

nearby housing development was heading into receivership.

  • Local municipal optimism was at an all-time low.
  • No “White Knight” or “ the Cavalry” on the horizon.
  • Two local businessmen came to the ACCA with an idea.
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What is is Unle leashing?

Local Leadership + Community-Based Financing = Opportunity Development Co-op (ODC)

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A Cooperative Way to Unleash Local Capital

A Project +

  • The Opportunity Development Co-op (ODC) Model

+ A Promoter & Salesman + A few surprises

=

Why this works!

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How does it it work?

The program helps you:

  • Gather a group of friends
  • Incorporate your Opportunity Development Co-op

(ODC)

  • Find a business opportunity
  • Find an entrepreneur(s) to run it
  • Collect local money (incl. RRSPs)
  • Invest in the business opportunity
  • ROI to member-investors
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Co-operative Definition

A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.

  • Democratically member owned and controlled enterprise
  • Created to meet an economic, social, or cultural need of the

members

  • Pools resources and shares risks

www.acca.coop

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Why the Co-op Model?

Number of cases of investment fraud using a corporate shareholder model in Canada/US –

  • THOUSANDS

Number of cases of investment fraud using the cooperative model (across Canada and the US)

  • ZERO
  • Spreading out the risk – up to 100 investors per investment
  • Ability to raise capital – up to $1,000,000 – per investment
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Id Identify fy the Needs

  • What are some of the business development opportunities in

your community that people talk about but don’t don anything about?

  • What are people bi….ng about?
  • What are the common themes that come up in your

communities economic development plans?

  • What business owners may be getting close to retirement?
  • Envision the future of your community and what kinds of new

businesses could help your community reach that vision?

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The In Investment Process

  • How will you get the word out?
  • Securities Commission – there to protect investors - How will

you do the same?

  • How will you determine the number and cost of Membership

Shares?

  • How will you determine the number and cost of Investment

Shares?

  • How will you actually sell the shares?
  • How will you deal with the delay in getting RRSPs in?
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Current Unle leashing Communities

  • Crowsnest Pass - Historic building
  • Smoky River - 55+ Housing
  • Vegreville - Withdrew
  • Athabasca - blind pool
  • Black Diamond – withdrew
  • Didsbury - Café/Bakery
  • Drumheller - Renewable Energy
  • Three Hills - Medical Clinic
  • Vulcan - Renewable Energy
  • Thorhild – Mechanics Shop
  • Elnora – Housing Development
  • Killam – Adult Housing
  • Calgary – Seniors

Housing/Renewable Energy

  • Edmonton – Green

Housing/Renewable Energy

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Fin inancing Crowsnest Pass Heritage The Cooperative Approach

  • Using existing legislation streamlined the formation of co-ops
  • Built on 20+ previous organizations that have proven the model
  • Canada-wide, formal support in Alberta through the ACCA
  • CODC was incorporated and formed a partnership with ACCA
  • Two optimistic businessmen purchased the Peuchen block
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Why th the Peuchen Block?

  • In 1911, owner W.J. Budd built this structure for a reported

$7000.

  • The building was named after Colonel A.G. Peuchen, a

Titanic survivor and purchaser or McLaren lumber interests.

  • Early tenants included the Blairmore Trading Co. (Kalil's dry

goods) and the Blairmore Hardware (Dutil Hardware).

  • Later occupants included a poolroom, a dentist's office, a

customs office, a restaurant, and an RCMP office.

  • In 1938, the building was purchased by John Kubik. He

remodeled part of the ground floor for his general store. Kubik also operated a meat and grocery business next door next door.

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Why th the Peuchen Block?

  • It had been vacant for years
  • It had a large footprint
  • 5000 sq. ft. main floor commercial
  • 3500 sq. ft. upper floor residential
  • Suitable to multiple tenancies, spread out rental risk
  • Structurally sound
  • Centrally located in downtown
  • Everyone in the Pass had shopped there at one time
  • Risk was in balance with the reward potential!
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Downtown Blairmore 1920s

CM BL 20 21

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Peuchen Blo lock emerged as as an an ic iconic str tructure th that pla layed a a vit vital l rol

  • le in

in th the communit ity an and was a a ce central l feature in in downtown Blai lairmore.

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2006

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Main Street Today Shane Stewart Promoting The investment Show and Tell

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2015

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Ryp Ath thle letic ics

Cr Crowsnest Medic ical 4 Apartments

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Don’t Forget the “Weather-proofing”

  • The investment needs to survive economic fluctuations.
  • Build and maintain a 5-year economic model.
  • Think about everything that can go wrong ...... some will

happen.

  • It did take longer
  • It did cost more
  • It does cashflow well
  • It will be sustainable
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Will communities flock to co-op financing?

CM BL 20 21

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Thank you!

  • The Visionaries – Larry Saloff – CF Analyst, Shane Stewart

– Businessman & Entrepreneur

  • The Support Team at ACCA – Paul Cabaj, Dan Ohler, Seth

Leon and their Unleashing Local Capital program

  • Crowsnest Pass - Believers & Investors
  • CODC Board – ensured this investment was successful

and that this heritage asset is financially sustainable

HISTORIC PHOTOS courtesy of Crowsnest Pass Museum

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More CODC in information

Jay Yanota Chair - CODC www.codcoop.org 403-606-0094 yanotaj@shaw.ca Seth Leon Co-op Research Officer ACCA 403-336-0468 sleon@acca.coop

More ACCA in information

More Crowsnest Pass Heritage Information

HISTORIC PHOTOS courtesy of Crowsnest Pass Museum

http://www.crowsnestpass.com/public/download/documents/13944 http://www.crowsnestpass.com/public/download/documents/13945