The Usand Grup Misipawistic Cree Natin Case Study Financing T Build Cmmunity ABSTRACT This case study tells the stry f hw Misipawistik Cree Natin and The Usand Grup wrked tgether t strengthen the Misipawistik cmmunity thrugh financing and husing develpment. It s a stry f Abriginal ecnmic activity, and f peple wrking tgether t fster ecnmic and cmmunity develpment. Erinn Mah Chief Operating Officer, The Usand Grup - - - Misipawistic Cree Natin Case Study Financing T Build Cmmunity INTRODUCTION Misipawistik Cree Natin (Grand Rapids) has increased husing and infrastructure services n the reserve ver a span f tw years. This was made pssible by their wrking relatinship with The Usand Grup, a financial slutins cmpany based in Winnipeg, Manitba. The Usand Grup ffers innvative and custmized financing designed t strengthen the ecnmic and scial wealth f First Natins, Inuit and Métis cmmunities in Canada while reflecting their needs, visin and capabilities. Mst traditinal bank and credit-unin lans ffer ff-the-shelf prducts that aren t cnnected t any lng-term plan r visin. Instead f relying n thse, The Usand Grup put tgether a custmized financial package fr Misipawistik Cree Natin (MCN), negtiating better terms fr the cmmunity with a Canadian chartered bank. The end result was 56 new hmes, as well as a new Child and Family Services building and a new church all built within tw years and withut waiting fr gvernment funding. HISTORY OF MISIPAWISTIC CREE NATION Misipawistik Cree Natin is a Cree cmmunity lcated in Treaty 5 territry, abut fur hurs nrth f Winnipeg, Manitba. Histrically industrius and self sufficient, Misipawistic was financially viable within the fur trade because the cmmunity is lcated at a critical junctin amng water-bund rutes int the Nrthwest. Tday, fishing is a key surce f incme and the
largest frm f lcal emplyment and subsistence. Cree Natin laws and cdes f cnduct remain strng in the cmmunity. METHODOLOGY The Usand Grup ffers financing slutins that are designed t strengthen First Natins, Inuit and Métis cmmunities. Financing and cmmunity develpment are separated int phases in rder t prepare and build a strng financial fundatin fr the cmmunity. The apprach includes discvering the cmmunity s visin fr addressing shrt-term needs and lng-term gals and creating a radmap t achieve that visin. In the first phase, The Usand Grup usually lks at refinancing existing lans t generate financial capacity, ften incrprating a specific ecnmic r scial develpment prject that the cmmunity needs. The Usand Grup als helps the cmmunity plan fr future imprvements such as infrastructure r lng-term ecnmic develpment. The Usand Grup s financing packages are tailred t cmmunities t help them make the mst f pprtunities fr ecnmic develpment ver time. Innvative financial planning can help create sustainable businesses and cnnect cmmunities with existing business and prfessinal netwrks t help supprt r launch future prjects. The Usand Grup can als recmmend the pririty f prjects t align with the cmmunity s strategic plans frm a financing perspective and t ensure the capital required is attainable. 100% Cmmunity Ownership The Usand Grup s mandate is t ensure that cmmunities and rganizatins, whenever pssible, have the pprtunity t wn and manage 100% f their prjects thrugh equity financing alternatives. This ensures the benefits f ecnmic and scial develpments remain n reserve, with all prfits ging t cmmunity members and business wners. This is a key feature f The Usand Grup s apprach t First Natins financing. MISIPAWISTIC CREE NATION DEVELOPMENT PHASE 1 Like many First Natins, Misipawistik Cree Natin (MCN) wanted t cmplement the incme they receive frm the fishing industry with ther frms f ecnmic develpment. When they first apprached The Usand Grup, MCN already wned and perated several businesses, including MCN Fds (grceries and gds), MCN Telecmmunicatins (high-speed internet) and Pelican Landing (business cmplex). MCN wanted their cmmunity t grw, s their greatest immediate need was new husing. Building husing and a church t supprt cmmunity members was The Usand Grup s starting pint. First, they evaluated MCN s financial psitin and fund their debt structure didn t fster a ptential fr scial and ecnmic grwth. The Usand Grup engineered a cmpletely new structure and surced a Canadian chartered bank t finance their fresh apprach. MCN s dept was refinanced as a single, chesive package, negtiated with lwer interest rates and varying amrtizatin perids. This aligned the brrwed funds mre clsely with the security that supprted it. MCN saved hundreds f thusands f dllars as a result, which gave them capacity t take n $11 millin in capital supprt fr the cnstructin f 26 new hmes, a church and an additinal Child and Family Services dwelling.
T build the hmes as quickly as pssible during Manitba s shrt cnstructin seasn, The Usand Grup arranged fr a bridge lan thrugh a specialized capital crpratin partner as part f the cmmunity s financing package. Families were able t mve int their new hmes 12 mnths earlier than they wuld have withut the bridge lan. Once the buildings were cmplete and any cnstructin risks settled, the chartered bank paid ut the bridge lan and replaced the bridge dept with a lnger-term structure and a lwer interest rate. After Phase 1 financing, MCN had a new and stable $11 millin dept structure that The Usand Grup had negtiated n MCN s behalf. When a bank agrees t terms, there is usually a lengthy delay befre receiving financing and starting a prject. The Usand Grup develped the bridge lan slutin t address the gap between securing financing and starting t build. They knew that building new husing fr the cmmunity was critical, that the scial csts wuld be high if building was delayed, and that the shrt cnstructin seasn wuld be a challenge. Thugh bridge financing wasn t a new cncept in the financial wrld, it hadn t been previusly available as an ptin fr mst First Natins cmmunities. Outcmes f Phase 1 Cnclusin $11 millin in fresh capital This was ne f the first bridge lans executed fr a First Natins cmmunity Families were able t mve int hmes 12 mnths sner (than withut a bridge lan) After MSN first apprached The Usand Grup, 26 new hmes, a new church and a new Child and Family Services hme were all built within a little ver a year The Usand Grup s mdel avided the ne-size-fits-all financing apprach that s typically ffered by banks t First Natins, Inuit and Métis cmmunities. Instead, The Usand Grup cnsulted with the MCN cmmunity, cnnecting them t innvative financial prducts with terms that were negtiated t best serve their shrt-term needs and lng-term visin. The MCN cmmunity received great benefit frm bth the shrt-term slutin t a husing crisis and the lng-term debt structure, which put them in a better psitin t meet ecnmic and scial targets while prviding a strng financial base fr future grwth. Bridge financing was a critical cmpnent f this prject. It prvided an pprtunity t finance and respnd t the cmmunity s shrt-term need fr husing. Fr high-impact develpments such as building cmmunity husing r creating businesses t bring in new revenue, bridge financing is an ideal way t imprve the timing f ecnmic grwth fr First Natins. MISIPAWISTIC CREE NATION DEVELOPMENT PHASE 2 After successfully cmpleting Phase 1 financing fr Misipawistik Cree Natin (MCN), The Usand Grup stayed cnnected with the cmmunity and Band Cuncil t make sure prjects ran smthly and t begin a secnd phase f develpment. Husing was still a majr fcus, s in April 2016, MCN agreed t purchase 30 hmes prduced by the Duglas Cardinal Husing Crpratin (DCHC), a jint venture between The Usand Grup and internatinally renwned Anishinaabe architect Duglas Cardinal. DCHC designed these hmes t address the husing crisis currently faced by many First Natins. Instead f using synthetic plastics, metals and steel, DCHC builds hmes using natural, slid, crss-laminated timber panels t minimize thermal gaps and eliminate muld and energy lss. Because they re mdular, the hmes are easy t transprt and assemble wherever they re needed. Once n site, a crew including wrkers hired frm within the First Natins
cmmunity erects each hme within fur t five days. DCHC hmebuilding respects First Natins cultural practices by using sustainable, envirnmentally friendly building methds that help reduce the eclgical ftprint and that will last decades lnger than stick-built mdels. Fr Phase 2, The Usand Grup arranged anther bridge lan fr MCN s cnstructin can begin right away with DCHC while The Usand Grup secures a lnger-term husing lan. The new hmes are nw in prductin at DCHC and are due t start arriving n site in July. Each mve-in-ready hme will have a finished exterir and interir and will include all appliances, kitchen cabinets and fixtures. These fully finished, ec-friendly dwellings mirrr the hlistic apprach that The Usand Grup applies t all prjects addressing bth immediate and future needs f a cmmunity and prviding a strng and sustainable financial fundatin upn which First Natins cmmunities can grw. MCN COMMUNITY DEVELOPMENT PLAN This wheel represents The Usand Grup s multi-phased apprach t financing fr First Natins, Inuit and Métis cmmunities. The illustratin visually maps ut the immediate and lng-term gals f the cmmunity, the tls and prjects t make them a reality, and the categry benefits fr the cmmunity in terms f finance, infrastructure and capacity. Outcmes f Phase 2 DCHC will prvide 30 new hmes, including site preparatin. Each hme has 3 bedrms and can sleep up t 10 peple cmfrtably.
Cnclusin Financing fr the hmes will respnd t a shrt-term need fr husing, rather than making the cmmunity wait fr gvernment funding. A new street will cntribute t the grwth f MCN and make it easier fr members t stay in the cmmunity r t return hme. The grwing cmmunity and ecnmy will benefit frm stable, secure husing where a skilled labur frce will want t live and build their lives. Misipawistic Cree Natin and The Usand Grup have wrked tgether t achieve imprtant cmmunity-driven gals within a shrt time frame. This was pssible because f a hlistic, innvative and cmmunity-fcused perspective n financing that was carefully planned and thughtfully executed. This is a new apprach t First Natins financing that can help vercme traditinal barriers and limitatins t cmmunity and ecnmic develpment.