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Projects designed to improve lives of First Nations people

A stunning strip of East Sooke waterfront is where a small First Nation and its private partners hope to build an economic future for its struggling members.
gordon charles
Sc'ianew (Chenuh) band councillor Gordon Charles, in front of some of the homes being built at the Spirit Bay development in East Sooke.

A stunning strip of East Sooke waterfront is where a small First Nation and its private partners hope to build an economic future for its struggling members. But to leverage their greatest asset, the land, they’ve had to get creative to overcome what some are calling an institutionalized barrier to aboriginal development.

Two years ago, Sc’ianew (Chenuh) Chief Russell Chips and Shoal Point developer David Butterfield unveiled a plan to build a housing and business development called Spirit Bay.

The Beecher Bay First Nation has 51 per cent interest in the $300-million project, which would see hundreds of homes sold for about $269,000 to $1 million on 1,000 acres of reserve land with 99-year leases. There are also plans for a gas station, general store and spa resort. Chipps said the vision for the project came from the band members, who met over weekly barbecues for months to discuss a future for their community.

“It’s the community, all of us working together,” said Chipps, noting there are 253 band members, but only 120 live on the reserve. The area is remote with no bus service to town, which makes it difficult for members to access services, social programs and activities like sports for youth.

“My hopes are that my children, their children and membership’s children will have some kind of base to carry forward and not struggle like we did.”

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The revenue from the project would help lift band members out of poverty, create jobs and a secure a self-sustaining economy for future generations away from the stifling federal government transfer payment system.

It’s a vision being shared among First Nations across the capital region, and Canada, energized by a growing number of success stories as well as increasing local government and private sector interest in mutually profitable partnerships.

“The potential for many of these First Nations is huge. They have some of the greatest, most-valuable land locked up that they can’t access,” said Butterfield. “It’s about unlocking the value.”

But the Spirit Bay project hasn’t been able to go the traditional route of funding and secure an initial bank mortgage.

“A lot of the banks we sat down with were keen to be involved once the development was going,” said Andrew Reeve, head of government relations and outreach with Butterfield’s Trust for Sustainable Development.

“But they don’t want to look bad or damage relationships if the project doesn’t succeed. It’s a Catch-22 unique to First Nations like Beecher Bay that are land rich and cash poor. You need development to get development happening.”

So the trust proposed something unconventional to address the need for mortgage financing in First Nations communities. They have created the First Nations Social Impact Fund, a mortgage investment corporation that loans against raw land and generates revenues as the land appreciates value with development.

“We were shocked that no one had ever thought of using mortgage investment for social impact investing,” said Reeve, calling the concept a new form of philanthropy. “It’s clear more people are saying, ‘If I’m investing, I want my money to do some good.’ ”

Reeve said the fund is gaining interest and investors quickly, including some financial institutions. A few homes and show homes are already built. Servicing is underway and the sales centre was re-opened in late March. The minimum fund investment is $10,000 with fixed returns of three to five per cent over five years. Investors can buy shares or use self-directed RRSP, TFSA, RRIF, and RESP accounts. The fund is also looking into accepting Registered Disability Savings Plan.

Over the past few years, a number of the capital region’s eight First Nations, along with Métis and urban aboriginals, have launched innovative businesses and economic ventures with more on the horizon.

• The T’Souke First Nation, already a model for solar-powered communities around the world, signed a $750-million wind energy partnership with TimberWest Forest Corp. and EDP Renewables Canada that could power thousands of Island homes. The 250-member First Nation also teamed up with Pacific Coast Wasabi on an income-generating wasabi farm, which will see its first harvest in June. “It’s growing very well. We’re quite excited,” said T’Souke Chief Gordon Planes.

• In the summer of 2014, the Tsartlip First Nation in Brentwood Bay opened a gas station and convenience store on Stelly‘s Cross Road. The $1.7-million project is an income generator for the 1,000-member band. At the time, Chief Don Tom said the business was the beginning of ending reliance on inadequate and dwindling government funding. “We want to move away from managing poverty to managing wealth and prosperity,” he said.

• While the Tsawout First Nation had to scrap its original plan for the 650,000-square-foot Jesken Town Centre on the Saanich Peninsula after a deal with a Vancouver development firm fell through, they are in talks with new partners to build something that will benefit the whole area and create hundreds of jobs.

Brent Mainprize, an entrepreneurial business expert and professor at the University of Victoria who specializes in working with aboriginal communities, said this is a pivotal time for First Nations economic development.

“At one level, industry is becoming much more accountable in how they are engaging with indigenous people. Government is also having to rethink this as there have been a few precedent-setting court cases [recognizing aboriginal rights],” said Mainprize. “On the social side, self-determination is thriving.”

Mainprize said it’s not just First-Nation-owned businesses that are growing, but also entrepreneurship among band members, especially young people and women.

He said there is a lot to be learned from how aboriginal communities do business, citing an elder who told him that “wealth in our community is measured by what we distribute, not what we accumulate for ourselves.”

Mainprize said the collective approach to wealth and the potential in the fast-growing aboriginal youth population desire attention.

“Another positive is aboriginal people have a natural way of stewarding resources that mainstream society can learn from,” he said, noting development is thought of in terms of generations not decades.

• The Songhees First Nation is an economic success story in the making. They have been able to prosper largely due to tax jurisdiction as a means for revenue. In 1995, the First Nation began collecting property tax from residential and commercial tenants. There are now about 730 taxable properties and 2,500 tenants. The First Nation has 640 band members, the majority living on reserve.

“This was the first step to being able to do economic development,” said Christina Clarke, director of operations. She said the second turning point came in 2005, with the passing of the First Nations Fiscal Management Act. As members of the First Nations Finance Authority, they gained borrowing powers. And with the First Nations Lands Management Act they are able to make laws in relation to their own land and resources, similar to a municipality.

“Instead of going to Indian Affairs to create an investment climate we can do it ourselves,” Clarke said. The Songhees First Nation has since been invested in several companies, including partnerships with Esquimalt First Nation in Salish Sea Industrial Services, and properties at Westbay and Plumper Bay.

The two Lekwungen nations also intended to pursue first right of purchase on a Rock Bay property once cleanup of toxins is complete. And in 2014, they announced a partnership with the Greater Victoria Harbour Authority to incubate economic development with the non-profit Kwin’ang’eth Se’las Development Company. This spring, they will hear pitches from small businesses to invest in with a Dragon’s Den-style idea fair.

Clarke said economic development for the band has boomed since they undertook their biggest project yet: The Songhees Wellness Centre, which opened in January 2014.

“This building has been the catalyst for so much. Since we opened the doors we haven’t been able to keep up with the opportunities,” Clarke said. The building took eight years of planning and community consultation. The majority of the funding for the $24-million project came from VanCity credit union and the First Nations Finance Authority under the Fiscal Management Act. Health Canada and Aboriginal Affairs and Northern Development Canada kicked in about $1 million.

The 54,000-square foot centre houses Songhees administration, governance, education and health programs. It has a fully equipped gym and commercial kitchen for cultural and sports events, as well as meeting and conference space for rent. The building, with a LEED-silver energy efficency rating, also features traditional Coast Salish art throughout, including an incredible loon totem at its entrance designed by elder Butch Dick and carved from a 300-year-old cedar log.

Songhees Chief Ron Sam said the centre is more than a meeting space and economic driver for the community. It has become an emblem of pride and hope for the future. “A while ago, I was walking home into my complex and a band member’s six-year-old granddaughter came up. She said, “Chief, I gotta tell you I love the Wellness Centre. Thank you,’ ” Sam said. “There is tremendous pride for what is happening here.”

Sam said fitness and education programs are at capacity and the centre is buzzing with new activity every day.

“We thought it would take years to fill, but it hasn’t at all. This place has really brought our youth together, which is very important.”

He said he hopes to expand on the success of the centre and to engage the community in economic development, namely building on band members’ skills and ideas. “This is just the start. We are getting very serious about pursuing ventures that give us the ability to expand in all areas,” Sam said, adding the ultimate goal is “to move entirely away from the model that relies on government transfers … to thrive and be self-sufficient.”

spetrescu@timescolonist.com