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NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 1
Helping to keep the community strong. At BMO Bank of Montreal®, we are continually working to provide Aboriginal communities with a wide range of financial products and services designed to meet your unique needs. Talk to us today or visit bmo.com/aboriginalbanking
2 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE ®
Registered trade-mark of Bank of Montreal.
Set in the dramatic and inspiring landscape of the South Okanagan, NK’MIP Resort is an ideal location for productive meetings, special events, magical weddings and relaxing get-a-ways. Where else in Canada can you enjoy enviable weather, Canada’s warmest lake, an outstanding resort and spa, gourmet dining, an award-wining winery and vineyards, a unique cultural centre, a fabulous desert golf course and a waterfront campground and RV experience? Located in Osoyoos, British Columbia, is the magnificent 80 hectare NK’MIP Resort (ink-a-meep). Created within the greater vision of the Osoyoos Indian Band, this $100 million resort is owned and operated under the esteemed and progressive leadership of Chief Clarence Louie.
Chief Clarence Louie welcomes you to experience our
NEW 300 SEAT CONFERENCE CENTRE
with state-of-the-art facilities for your large or small group needs. NK’MIP Conference Centre
NK’MIP Cellars
Large or small we can cater to all your meeting space needs with flexible, state-of-the-art, fully-serviced professional conference facilities and meeting rooms fully equipped with everything for your group of up to 300.
North America’s first Aboriginal owned and operated winery. The 18,000 sq ft space incorporates native art and the unique nature of the desert sagebrush. NK’MIP Cellars boasts wines claiming over 40 national and international awards.
Spirit Ridge Vineyard Resort & Spa A 4.5-star destination resort with luxurious condostyle Villas and Suites, gourmet dining at Passa Tempo Restaurant, market café, outdoor heated pools and hot tubs, fitness centre, meetings spaces and the indigenousinspired treatments at Sonora Desert Spa.
Sonora Dunes Golf Course
NK’MIP Desert Cultural Centre
NK’MIP RV Park
A state-of-the-art interpretive centre celebrating “the Lands, the Legends and the People” of the Osoyoos Indian Band. Experience hands-on cultural and nature displays, walking trails, daily cultural and rattlesnake programs, and a unique First Nations gift shop.
Set on the banks of Osoyoos Lake, this year-round experience offers over 320 sites, an indoor pool and hot tub, a BBQ patio for large groups, and a clubhouse for group activities. Convenience store and wireless internet access.
This year-round 9-hole, par 35 is a one-of-a-kind desert-links style golf course. Clubhouse features covered patios with open deck areas, a snack bar and pro shop.
Whether you are re-living a childhood summer memory of fun and sun in Osoyoos, seeking a romantic getaway, or if you are here for a corporate retreat, a reunion, or a wine tasting experience, there is no doubt this visit will lure you back, again and again.
Call 1.888.96NKMIP (65647) or visit www.nkmip.com to plan your experience.
NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 3
contents PHOTO: SHAWN TALBOT
features
VOLUME 1 NUMBER 1 • JULY 2010
COVER STORY
Editor-in-Chief
Noll C. Derriksan,
Grand Chief WFN, UBCIC
Publisher
Craig Brown EDITORIAL Managing Editor
12 THE
NONONSENSE PHILOSOPHER CHIEF
Devon Brooks Staff Writer
Bobbi-Sue Manard Business Development Manager
Roy Kunicky
Business Dev. Manager, West Coast
Jesse Kunicky
Osoyoos Indian Band's Chief, Clarence Louie, wants things done now – his mix of hard facts, truth and cultural awareness.
Advertising
Angus Cathro Murray Hicks Kathie Nickel Creative Director
Donna Szelest
20 the qwam qwmt winery The world's only aborginal-owned winery strives for the perfect blend
24 THE tsawwassen VOTE How Vancouver's Tsawwassen Band voted both 'yes' and 'no' to economic development
Contributing Photographer
Shawn Talbot
Native Business Development Magazine is a member of:
29 the COUNTRY'S BEST We look again at the greatest achievers in art, business and community through the National Aborginal Achievement Awards 101B - 1979 Old Okanagan Highway, Westbank, BC V4T 3A4 T. 778-755-5727 F. 778-755-5728 www.prospermediagroup.ca
columns
departments
49 speak out!
43 the review
First Nations people have great stories. Marketing is about telling good stories. See a connection?
51 you're dead – now what? Our legal columnist has some ideas on what to do about being dead.
Excerpt from Beyond the Indian Act on why everyone in Canada needs to kill the Indian Act and move on.
45 TOP 10 FOR BUSINESS Coach Karen Luniw lists 10 essentials for new business success.
President & CEO
Craig Brown
Vice President
Noll C. Derriksan VP Sales & Marketing
Chytra Brown
Assistant to the Publisher
Joanne Clarke
The Native Business Development Magazine is published in Westbank, BC by Prosper Media Group Inc. ©2010 All rights reserved.The views expressed in Native Business Development are those of the respective contributors and not necessarily those of the publisher or staff. PUBLICATIONS MAIL AGREEMENT NO. 41835528. RETURN UNDELIVERABLE CANADIAN ADDRESSES TO: 101B - 1979 OLD OKANAGAN HWY., WESTBANK, BC V4T 3A4.
Printed in Canada. 4 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
editor•in•chief’sdesk THE
Invisible Native Native business people simply aren’t known, either to their own or anyone else
T
he aim and mission of the Native Business Development Magazine is to provide information, provoke thought, clarify the state of native business and development and perhaps give inspiration to those who are new to business in western native communities, including the northern territories. There is an expectation among government and the population of our country that, with assistance, all natives can and will be successful in business and development. This expectation is naïve in the extreme. Successful native businessmen and women are the exception as it is with all other people. The native population in Canada is no different than the general population; it has its success stories, and its failures. The successful natives in business and development are, for the most part, invisible to the rest of our country, and are known, if they are known at all, only regionally. Our publication is going to change that by featuring their stories. Natives, being a minority, are extremely visible, but too often in a negative way. The general public sees the drunks on the streets of their cities and towns. This is an unfortunate perception. Industrious natives are not noticed or known, simply because they are working quietly and unseen in pursuing their goals and ambitions. Our publication will inform and educate the public and more importantly put both groups together for their mutual benefit. Professionals like engineers, financiers, architects, lawyers, mortgage providers, a host of other business service providers and entrepreneurs now have a new way to hear, and contact each other. I hope you are as excited to read about our people’s successes, as much as we enjoy telling you their stories. These is an exciting time for native business and development. It is a growing emergent force in our country, and will continue to grow to be an important part of our nation’s fabric.
Noll Derriksan is Grand Chief of Westbank First Nation Lands, Grand Chief of the Union of British Columbia Indian Chiefs and owner of NC Derriksan and Son Enterprises, which, among other business pursuits, is a development company.
NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 5
E DI T O RI A L
from the
6 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
Our Way Forward What we do and say in this magazine matters. It matters because the people we write about matter – and that’s you. We want to write about you, about what you do, how you do it, the challenges you face and the people who help you succeed. The aboriginal face of business is new and, at the same time, it is thousands of years old. Centuries ago all aboriginal people worked, created, traded and made a living for themselves across the whole continent. Today’s tools have changed somewhat and there are a few new wrinkles, but Craig Brown the idea of working hard, of creating, of charting a PUBLISHER proud future is no different. We will dig out the best stories, but if you know of something that other aboriginals should hear about, or better yet, something they can benefit from, tell us so we can tell everyone. Clarence Louie, the subject of this issue’s cover feature, told us that natives come to the Osoyoos Band’s resort from across the country, proud to help out the business of their brother and sister. They are providing jobs and opportunities for his people, but Louie says he would love to take some of that money back to the communities of other aboriginals who offer services Osoyoos Devon Brooks doesn’t have. EDITOR It makes sense that if natives can support natives not only does it provide all with opportunities, it also gives hope to the bands that are not doing as well. It provides incentive for entrepreneurs wondering who will buy their goods when they know there is a way to get that word out. As this first issue makes clear, this is about much more than Louie. We also profile endeavours by the Penticton Band, Tsawwassen Band, Westbank First Nation and at least a half dozen individuals across Western Canada who are out there working, creating, and doing what they do best. So, tell us about you, your band, what you’re working at. It’s part of our way forward and we’re hoping it is going to be part of your way forward too.
Bobbi-Sue Menard started freelance
writing as a small town movie, arts and entertainment critic and reporter. Despite remaining a sucker for an entertaining story complete with musical score (and heartfelt high school musicals), writing the story of people passionate about their work has proven to be a much more enduring fascination.
Garry F. Benson Q.C. is the founding partner and Rose Shawlee was an associate of
Benson Salloum Watts LLP. As part of a well rounded firm based in Kelowna, British Columbia, they offer legal services in the areas of Indian law, real estate, business law, and estates and estate planning.
Darcy Nybo
is a freelance journalist, business writer, author, promoter, and founder of Always Write. She began writing at age seven and believes her skills have improved somewhat since then. She’s an award winning fiction author and mentors the COWS, (Central Okanagan Writers Society). For more information visit her website at alwayswrite.ca
Karen Luniw
is a personal and business attraction expert, author and speaker who works with highly motivated individuals to up-level their life. Karen’s Law of Attraction Tips podcasts have been downloaded over 10 million times by people all over the world and has been on the top of the U.S. and Canadian iTunes charts. Find out more at KarenLuniw. com
Francis Baptiste is a writer, designer, and web developer currently living and working in Kelowna, BC. He was publisher of the Aboriginal tourism magazine, Native Destinations. His previous publications include columns and features in BC Business, SAY Magazine, and Pacific Rim Magazine.
Joel Young is an entrepreneurship
educator, coach and consultant and the founding chair of the Okanagan Valley Entrepreneurs Society at eagleyoung@ shaw.ca.
Marie Powell Mendenhall (http://
www.mepowell.com/) is a professional writer with work in print, broadcast, and online markets across Canada and internationally. Scholastic Canada published her book, Dragonflies Are Amazing! Her award-winning short fiction and poetry appear in literary magazines and anthologies, including Room Magazine, Transition, Pandora’s Collective, and WindFire.
David Allison is a member of the Metis
Nation, a Director of the Canadian Council for Aboriginal Business, and a partner at Braun/Allison Inc., the only aboriginal-owned real estate and resort marketing campaign company in the world. He is published online in BC Business Magazine at www. bcbusinessonline.ca/onebrand and has written a free book, Sell The Truth, about real estate development marketing, which is available at www.braunallison.com. E-mail him at david@ braunallison.com. NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 7
CO LU M N
contributors
This view overlooks part of the Arrowleaf area of the Penticton Indian Band, which the PIBDC believes will have great appeal for developers and later, businesses and would-be residents.
8 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
PIBDC
Penticton's
First Steps
to
Independence By Devon Brooks
None of us remember taking our first steps, but we’ve seen babies make them. They are cautious, because the territory is uncertain, the new heights are a little scary and falling on the face can hurt.
T
he youthful Penticton Indian Band Development Corp. (PIBDC) finds itself taking those first steps now as it works to put in place the many pieces and tools necessary to build some major developments on the reserve. In truth the process has been a long time coming. PIBDC General Manager Robert Greno has been with the corporation since 2008, but he says it was 10 years ago that the Band first contemplated development. At that time it was going to be a casino, because the provincial government was granting a limited number of licenses for new casinos. Two applications were made for the Penticton region and the Band’s proposal was turned down. It was an expensive rejection. Studies for the casino cost around a million dollars. This time the Band is planning comprehensively for development, which includes a fish hatchery, a 100-lot residential development, a golf course, spa and hotel complex on a 550 acre section of the reserve known as the Arrowleaf area. In addition
there would be an industrial park, which Greno describes as a “high priority.” The homes are aimed at the entry homeowners, or those that want to downsize. For the Penticton region in southern British Columbia that means a price tag under $300,000. Development potential in the area is high and the Band’s land is undeniably beautiful with its grass and Ponderosa pine dotted shelf lands overlooking Skaha Lake. Greno says some developers have jumped the gun and come to them with proposals already. Those eager developers he says, are politely, but firmly told that they will have to wait for the official development process. “We have to show due process. We have to be open and transparent.” That’s business sense 101 to make sure the Band gets the best possible returns for the project. Whether the different types of buildings are done by one or more developers is uncertain, but Greno says, “From what I NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 9
D E V E LO P M E N T
featurearticle
PENTICTON'S FIRST STEPS TO INDEPENDENCE continued
Robert Greno and Lesley Gabriel stand in front of a rendering of the innovative and unique new school going up on Penticton lands.
understand there’ll be a minimum investment of $10 million.” The Process If the development is only at the beginning, Greno says they are taking careful steps on every front to make sure this time things will come together. It’s started with the City of Penticton, with which they have worked out terms of reference for water, sewer and fire protection services. The Band Council and City have considered the terms and, says Greno “have agreed to send them to respective lawyers for review.”
The new school is the first construction, but not the last if the Penticton Indian Band Development Corporation’s plans come to fruition, expected over the next couple of years.
10 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
With that (hopefully) in place the next step is publishing the expression of interest to solicit proposals, which went out at the end of June (see sidebar). Greno projects two months for developers to look over the expression of interest details and get back to the PIBDC. That means by September he and the Band should be looking over the proposals, and he hopes the Council and members of the PIBDC will make recommendations by October of this year. Then the ball will be back in the court of the chosen developer who will be asked to make a presentation and
sell the Band Council on the idea. How long until shovels dig in to the dirt? Greno admits, “I don’t know.” During that process Band members will have a referendum to declare for or against the idea of the whole development process. Lesley Gabriel is the business officer for PIBDC. She says there will be solid benefits in revenue, jobs and opportunities for the Penticton Band, but the process is not without some controversy. “The downside,” she says, “is the loss of land.” The Penticton Band has one of the largest reserves in British Columbia, covering just over 46,000 acres so if every acre of the Arrowleaf project is built up, it’s still less than 1% of the entire reserve. Moreover Greno says they aren’t just going to put up buildings wherever they can. “We want a focus on keeping natural vegetation and ecology in the development and golf course. I think this will keep the development unique, and [have] a ‘greening factor.’” The Benefits During the entire process the question that the PIB must wrestle with is whether this development is a step
PIB’s Request for Qualifications
forward for the band. It was only in 2009 that the Band took back taxation rights from Indian and Northern Affairs Canada (INAC). This means the homes and businesses built in any development will put money straight into the Band’s coffers. More importantly the process is going to be providing employment opportunities for Band members. Greno says part of any developer’s pitch to the Council must specify the opportunities that will go to Band members and not just construction or low wage
jobs. “We want to see jobs turned into professions.” Gabriel has her sights set further down the road after the project is completed. Part of these developments are about attracting residents and visitors to Band lands. She says, “I’m tied into the big picture for the natives who are going to want to start businesses as the development occurs.” She adds, “My goal is to help people realize they can help themselves – they can create jobs.” Photos by Devon Brooks
This sign was made by Penticton Band member, Clint George. It is these kinds of artistic skills that Lesley Gabriel, the Band’s business officer, believes the development can give great exposure to, enabling a better living for him as people come to the reserve to see what they can create.
The Penticton Indian Band Development Corporation is looking for Requests for Qualifications (RFQs) from qualified developers, contractors and design companies by August 31, 2010. They must be interested into entering into a joint venture with the Penticton Indian Band to develop the Arrow Leaf Development site. Private sector proponents’ profiles should include background, previous projects, qualifications, corporate principals and related expertise. Applicants will be shortlisted to no more than three who will be invited to send in a more detailed request for proposal.
Companies must be capable of: • Developing 550 acres of prime water and view lands on the PIB reserve, adjacent to the airport and Highway 97; • Constructing a mixed density residential development; • Providing a new professional golf course; • Possibly adding in hotel/accommodation facilities; • Building a community commercial development; • Developing parkland, trails and open space areas; • Engineering and planning expertise provide a comprehensive range of infrastructure, design, construction, and utility services; • Providing necessary funding and capital to undertake the development the project; • The expertise to market and sell the different phases of the project; • Working with a First Nation development corporation (and LLP) as a partner on the design, phasing, construction and revenue. Questions should be directed to General Manager Robert Greno at business@ pib.ca, or sent to PIB Development Corporation RR#2 S65 C35 Penticton, BC V2A 6J7 or by telephone to 250-492-3154.
NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 11
12 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
C OVE R ST ORY
featurearticle
Philosopher and the Chief Working Man By Devon Brooks
Chief Clarence Louie is much in demand these days. He jets across the country on a regular basis talking, admonishing, advising and listening. He talks about working mostly and why it’s good. He is not known for talking softly.
W
hen he talks you quickly realize there are things he likes, and others that he doesn’t. He doesn’t particularly like being called ‘Chief ’, confiding that he prefers to be called by his first name. He also doesn’t like politics, people who won’t work, time wasters and talking about philosophy. He does like his truck, and right now we’re riding in his big, black 4x4 Dodge half-ton. I ask him about his truck, but he is more interested in telling me about earlier vehicles. His first was a 1968 Ford truck. After that, he says, “I bought a GTO. It was the best car in my school.” He is in favour of young people getting a vehicle. “For a 16-year-old your first taste of freedom is your vehicle.” The proviso is that they must earn it. He believes a young man or woman who goes out and works to earn that freedom is a great
thing. It’s a goal, and goals provide purpose, something lacking in too many people on or off reserves today. Those lacking goals he calls “the hang out crowd,” people looking for a perpetual handout. Louie knows what it’s like to work. His first job was working at a vineyard started with Indian Affairs money on Osoyoos Indian Band land. “I worked every summer. I always worked.” What he worked at was nothing fancy; he did “grunt labour like everybody else.” However hard he worked to buy that truck and GTO he obviously had goals for a lot more, but he is not keen to talk about why he did a lot of the things he is so well known for. He declares, “I’m not a visionary.” Perhaps not, but he did push his band on to a path toward economic independence, something he insists is part of the NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 13
THE PHILOSOPHER CHIEF AND THE WORKING MAN continued
band’s heritage. As is hard work. “Many decades ago when ranching was one of the Okanagan’s first primary economic development industries it didn’t take Okanagan Indians very long to become some of the Okanagan’s very best cattle and horse ranchers – that proves that given the chance Native people can compete in the real business world.” Before that the Okanagan Nation traded for goods with Indians from the Prairies to the east, on the coast to the west and north and south. Ancient history perhaps, but the question is why Louie was so motivated to reinvent his people’s working heritage. The thing is, Louie isn’t really sure of the point of the question about why he pushed his band toward economic self-sufficiency. He feels it’s self-evident. “You can get into philosophy and all that B.S. cultural stuff and whatnot, but most [band members] tell me they want a job.” “I think most people like making money whether they admit it or not. I like making money.” The interesting thing is that Louie is very much into “philosophy and all that B.S. cultural stuff.” What he is not 14 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
into is using those things as excuses to me that’s what a leader is supposed to stop himself or block practical goals do.” that allow him, and every other native The emphasis is on the jobs because to achieve the things they say are really he believes many bands have become important. too comfortable with what he calls In another interview he once said, “rocking chair money.” Money from “Preserving our culture is why we are land leases, or royalties paid on natural in business.” resources like oil. Asked to explain what he meant, “I’ve seen other bands with great… Louie says, “Every cultural program I rocking chair money, but they still just see takes money. We’re one of the few sit there with great depression and bands that have sweat houses and they great rates of unemployment. I just cost us thousands and thousands of don’t get that.” dollars to upkeep each year.” Rocking chair money provides no He says too many natives are in de- jobs, no incentive and no chance to nial about what money does, where it grow. comes from and why it is important. He has some similar opinions for If you want to annoy Louie, a good those who are hitching their future on approach would be to ask him for settlements with the government of “support” or “resources,” for your pet Canada. “You guys can fight to honproject or idea. He spits both terms our the spirit and intent of the treaout with distaste. ties. Fight that fight. It’s a hundred year “I think natives need to be talking old fight, no end in sight. Just like the about money more and they need to [B.C.] treaty process.” use that term money. I’ll He continues, “We’re not say, ‘Why don’t you just “...if they are saying that native people say you need money? Say going to settle should have to give up on it. Say the word ‘money’. those – sure, send some of a treaty, they That’s what you want." your leaders to fight the And it’s why he is keen want economic fight, but damn it, the maon developing businesses jority of your leadership development for his band. “Money altime, your leadership should ways comes from the lands…that be spent on dealing with business sector. Always they can make stuff in their own backyard does.” creating jobs and trying so money on...” Here is where Louie’s see what kind of money you philosophy comes back can create.” into play. “To me, money equals opWhat jobs can be provided depend portunity. I don’t have a love of money; on where a person lives and the opI have a love of opportunity.” portunities available to them. In the It all ties together. The way natives Okanagan’s hot climate with its warm have been treated in the past, the lack lakes the obvious opportunities are in of jobs and opportunity they had, growing things and tourism. the way money was controlled by the He says, “We’re fortunate here in the government. Okanagan, we’re fortunate big time.” Louie notes, less as a criticism than In contrast he knows many other just a sad fact, “You know most native natives are going to have a hard time people have never worked in a job?” developing because of where the govThis is where his philosophy starts ernment located their reserves. “Half to bear fruit. He feels a good leader the First Nations in Canada are going looks at what his people need and pro- to have a tough time because they were vides it, or does his best to provide it. purposely isolated.” “Creating jobs and making money – to “The lands they have right now are
too small for economic development, too isolated and so through the treaty process, if they are going to settle a treaty, they want economic development lands…that they can make money on, which only makes sense.” Those development lands need to be close to larger population centres, where young people will be able to develop skills and businesses that realize their potential. He predicts, “Once the youth get these jobs they’re not going to go back and sit on welfare in these remote communities.” According to Louie it is already happening. He asserts, “On most reserves 50% of the population have left.” That’s today. Back in the 70s, after cutting his teeth on labour he started to wonder if there weren’t better opportunities than sweating on a vineyard that lost money every year because it was badly run. He went to school and studied Native American studies in Saskatchewan and Alberta. He felt it necessary to know the history of natives, the Indian Act and the reserve system, something Louie says few band councilors understand, even today. Education itself is much like money for him. Education isn’t the point, but what it allows people to do, how it makes you feel is important. “The big reason for [getting an education] is to make yourself employable. No one goes off and gets a degree or a trade so that they can sit on welfare.” Education though, and pieces of paper are not enough. He states emphatically, “Most jobs in any organization you don’t really need grade 12. What you need is a work ethic. You can learn anything if you have a good work ethic.” After university Louie returned home, got involved in tribal politics and was elected chief in December 1984. It didn’t take him long to start turning things on their head, beginning with the vineyard. “Like most native
businesses the vineyard was failing. It hadn’t made any money in decades. Within a couple of years it produced its first ever profit.” There was a trailer park on Osoyoos Indian Band land that was generating some revenue, but there were no jobs in it for the Osoyoos people and that wasn’t good enough. By 1987 Nk’Mip Construction was started; although it wasn’t incorporated until 1999. It started something that Louie is quite proud of. “At that time (late 80s) we never had one
journey man carpenter and now we have seven-plus.” The companies, like the money and the education are just more tools for the Osoyoos people. More importantly they are an inspiration. “Once we had a band-owned construction company these guys felt like they had a chance because most nonnative companies never hired our people. I can only speak for the natives on this reserve, but it is the businesses that gave them the motivation to go back to school.”
NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 15
THE PHILOSOPHER CHIEF AND THE WORKING MAN continued
As Chief Clarence Louie’s cluttered office shows it is less about how things appear than what you accomplish.
During the next two decades Louie, with the Osoyoos Band councillors, kept building and employing. They created the Osoyoos Indian Band Development Corporation to put a governing structure in place for the businesses and the band members who would work in them.
Sam Baptiste, a former chief, became the vineyard manager in 1991, a job he holds to this day, which makes Louie very happy. “Before we had vineyards on our reserve probably none of our people dreamed they could be a manager of a vineyard.” Nine senior management positions,
out of 24, are handled by OIB members today. If that number seems low it is only because Louie won’t give anything to anyone who hasn’t earned it, band members or not. “We’d rather have native people managing our companies,” Louie explains, “especially band members, but of course you can’t hand the reigns over to inexperienced people.” They bought out a golf course built by non-natives and expanded it. A gas station and convenience store followed as did a joint venture with Vincor to open up their winery, then OIB took a small position in the neighbouring Mt. Baldy ski hill, opened the luxurious Spirit Ridge resort, opened a second golf course, a cultural centre and are laying the groundwork for a green industrial park. Last year all the band companies brought in approximately $16.4 million. The Vincor joint venture has already been working for decades. “Some of our people have retired at that winery. They got 30 years service in there," declares Louie proudly.
1980 - Nk’Mip Preschool opens 1877 - Osoyoos Indian Band recognized by the Canadian government
1963 - First lease for a golf course (band takes it over in 1995)
1960s - Land lease for a 100-odd unit trailer park
16 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
1970 - Campsite in Osoyoos starts up (leased to nonnatives)
1968 - First bandowned business was Inkameep Vineyards (now Nk’Mip Vineyards)
1980 - Bright’s Winery operating on band land
1970s - Band Council leases out 500 acres of land for hay fields and feedlot (company eventually folds; land now used for vineyards)
1984 - Band takes over campground
1984 - Clarence Louie elected Chief of the Osoyoos Indian Band for the first time in December
It, like the other companies provide good opportunities for learning and growing. Justin Hall is the new assistant winemaker at Nk’Mip Cellars and the first native to ever hold that position. He worked his way up. Louie’s vision of employment was realized. The Osoyoos Band employs 740 people in its businesses or band governance operations of which 185 are Osoyoos Band members, and another 272 are natives from other bands. This too is something that Louie is very happy about. “One of the things I am really proud of is we’re probably the only band that can put up their hand and say that we employ 38 different First Nations here. We have Crees working here, we have Blackfoots working here, we have Sto-Los working here, we have Métis working here; some of these bands I can’t even pronounce their name.” “We employ more Okanagan Band members here than any band does.” The only people not working at the Osoyoos Band are those that are too young, too old or who don’t want to work.
“As much as we are looked at as a business or development band, when you get to know who we really are, we’re not.”
2000 - Advancement of Native Development Officers names Clarence the ‘Economic Developer of the Year’
1988 - Osoyoos Indian Band Development Corporation forms
1987 - Nk’Mip Construction starts
1995 - Band takes over operation of leased golf course (Desert Canyon)
1991 - Sam Baptiste becomes the first Band vineyard manager
2001 - Desert Canyon Golf Course expands from 9-hole course to an 18-hole championship course
2006 - Grand opening of the Spirit Lodge at Spirit Ridge Resort
2002 - Oliver Readi-Mix opens on OIB land
1999 Nk’Mip Construction Ltd. incorporates July 23, 1999
2003 - Clarence listed as one of the ‘Top 50 Canadians to Watch’ by Macleans Magazine
2001 - Clarence appointed to the Aboriginal Business Canada Board
1998 - Nk’Mip Gas & Convenience Store established
2004 - OIB’s second golf course, the 9-hole Sonora Dunes opens
2006 Clarence receives Order of Bitish Columbia
2006 - OIB enters into a profit sharing agreement for Mt. Baldy Ski Hill
2006 - Nk’Mip Desert Cultural Centre opens
2009 - Conference Centre opens at Spirit Ridge Resort
2010 - Justin Hall first native assistant wine maker
2002 - Nk’Mip Cellars opens in a joint venture with Vincor International 2010 - Chief Louie reappointed to the National Aboriginal Economic Development Board by Chuck Strahl, Minister of Indian Affairs and Northern Development.
NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 17
THE PHILOSOPHER CHIEF AND THE WORKING MAN continued
The last don’t impress Louie very much. “This 90s generation? Our biggest problem is the hang out crowd. Probably the 10% or 15% hangout crowd. Those that drop out of school, but they don’t have the old attitude of getting themselves a job.” So, jobs, employment, businesses, a generation gap – it all sounds a little bit like the white guys yet the next thing that Louie says might seem like the most astonishing thing of all: “As much as we are looked at as a business or development band, when you get to know who we really are, we’re not.” He explains, “I’m willing to go part way with this corporate Canada mentality, but we’re not strictly bottom line focused and I don’t want to see our operations run like corporate Canada.”
Then what is the Osoyoos Band about with its blueprint for success based on a hard talk of jobs, money and good business planning? “I don’t really gauge our success on the bottom line financial numbers. I like the job aspect better than the – if we have a company that’s breaking even, but it’s all natives working there? That to me is a successful company.” “You gotta run a business with business principles, but we want to hire people sooner, keep them employed longer – have native preference.” If it seems like Louie has moved beyond cold, hard money and jobs, you’d be right. “We could be leasing out hundreds and hundreds of more acres, but we’re not going to. We grew up in a rural setting here; we like our rural setting. Many of our people still hunt and fish and we like that.” He concludes, “We’re not looking to become millionaires. We’re not looking for a luxury lifestyle here. We’re looking for a decent lifestyle here and that means we still go along with some of our cultural and heritage ways.” Photos by Shawn Talbot
We want to hear from you. Do you have a story that you think should be told? We'd like to hear about it. Contact:
Devon Brooks, Managing Editor Email: editor@nbdm.com Phone: 250-878-1872 Nk’Mip Canyon Desert Golf Course nestled between natural canyon deserts and wine producing vineyards is one of Canada’s premiere true desert links golf courses. After your game treat yourselves in our award winning Canyon Restaurant.
Come Play in our Desert Oasis! www.nkmipcanyon.com 37041-71st Street Oliver, BC 1.800.656.5755 250.498.2880
18 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
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Context is
everything By Francis Baptiste
The Osoyoos Band shares what it has learned about business through workshops
C
ontext is everything' are three words that seem to apply to almost any situation. Though, in the case of the Osoyoos Indian Band Center for Aboriginal Community Enterprise (OIBCACE), it is particularly meaningful. Set within the beautiful Nk’mip Resort, the Center is surrounded by some of the most successful and renowned examples of Aboriginal economic development in the country, including North America’s first Aboriginal-owned and operated winery; as well as a first-class cultural center, resort and spa, and golf course. While attending the OIBCACE sessions, surely there couldn’t be any doubt in one’s mind that these guys know what they’re talking about. “It truly is a beautiful setting,” says Brenda Baptiste, program manager for the OIBCACE. “When people attend the sessions they literally become immersed in our real world experiences with creating sustainable businesses and healthy joint ventures.” What OIBCACE offers is a twoand-a-half day workshop, where participants can learn from the experiences of the Osoyoos Indian Band,
and the successes and trials they’ve gone through in creating their businesses and bettering the community. Speakers include experts from Harvard University, the University of Arizona, the Bainbridge Graduate Institute, and Simon Fraser University; as well as world-renowned speaker Chief Clarence Louie, who’s been at the forefront of the Osoyoos Indian Band Development Corporation’s economic success. “The focus really,” Baptiste says, “is to help Indian Bands in finding a way to stand on their own through business developments, and through those businesses create pride within the community.” A little pride could certainly go a long way. Many aboriginal communities throughout the country are home to high unemployment rates, poor living conditions, and rampant alcoholism and drug abuse. The current “hand out” systems
Osoyoos Indian Band Centre for Aboriginal Community Enterprise The
implemented by the federal government clearly aren’t helping matters much. Indian bands that rely too heavily on government funding to produce “make work” jobs are only temporarily trying to fix their problems. The idea behind the OIBCACE is that aboriginal communities can learn to help themselves, and create sustainable, independent enterprises. Such an achievement would be a huge step in bettering the lives of native peoples in Canada. “The importance of economic development on reserves is immeasurable,” says Baptiste. “Creating jobs doesn’t just help with your financial statements; it instills pride within the community. It creates togetherness, so we can look as a whole and say we created this.” The website (www.nkmip.org/ OIBCACE) had not been updated as we went to press, so information on this year's offerings are best found by calling Sammy Jo Louie at 250-498-3444. NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 19
E D U CAT I O N
article
The giant main hall of the winery appears empty during the winter, but will be teeming with customers as the summer comes on. 20 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
Photo by Devon Brooks
W I N E RY
featurearticle
Qwam Qwmt Winery
The
By Devon Brooks
Nk’Mip Cellars is part of Osoyoos Indian Band’s economic empire and is thriving by any standard.
Photo by Shawn Talbot
I
t is also, coincidentally the only winery in the world owned by Aboriginal People. The name Qwam Qwmt is given each year to a select amount of the wine that is much better than the rest because the grapes get precisely the amount of rain and sun, such that they ripen to perfection. Qwam Qwmt means ‘achieving excellence’ in the Syilx or Okanagan language. The head wine maker, Randy Picton, is so particular about the Qwam Qwmt wines that there is no certainty that any particular variety of wine will be made in any year. Like these very special wines, the winery itself is a very special creation for the Osoyoos Indian Band. It is owned 51% by the band and 49% by Vincor, the Canadian branch of the Constellation liquor corporation; Guest Services Manager Jennifer Busmann belongs to the 49%. Busmann is part of the team that welcomes 55,000 visitors to the winery every year. The winery is at maximum capacity, producing 18,000 cases of wine per year. It is also one of the main draws at the
surrounding Spirit Ridge Resort. Many of the resort guests list the winery as one of the main draws for staying there. Busmann says, “The winery wasn’t really designed for the resort.” What she means is that most wineries sit on their own, surrounded by lush green acres of vines, maybe with a restaurant attached. Anyone coming in the front door is there because they like wine. At Nk’Mip it’s different, because thousands of people stay next door staying, holidaying, meeting at the conference centre or swinging the clubs at the band’s Sonora Dunes golf course. The winery becomes a destination for many tourists who probably would not have come in except, it’s well, just right there. So there is much foot traffic from people who are curious. This undoubtedly makes for a few purchases that wouldn’t have occurred otherwise, but in busy times it adds to the strain. Like all the other facilities in this sunny desert town, it is at over capacity from late June until early September. Staff numbers NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 21
THE QWAM QWMT WINERY continued
Photo by Devon Brooks
Guest Services Manager Jennifer Busmann stands in the room built to overlook the barrel cellar. This is on the tour route that guests can view three times a day during the winery’s peak summer season.
22 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
A display of Nk’Mip Cellars products topped by a native mask.
Photo by Shawn Talbot
go up and down with the seasons. During the quiet winter months four part timers and four full time people work the facility. The beautiful interior of the winery seems vast and empty when only a handful of customers are at the bar sipping the latest vintages. Come the summer 61 people will be on the payroll to deal with the crowds. That doesn’t stop the winery from trying to draw in more people. From May until November they offer three tours daily for visitors (in the winter it drops to once a day). They also recently added a patio for getting food with the wine and there is a new wine club. Busmann says there is another draw at Nk’Mip, which no other winery has and that is the draw of Chief Clarence Louie, arguably the country’s most famous chief. Says Busmann, “We get a lot of guests who come here specifically to find out about Clarence. Some people think he is physically here at the resort.”
Louie himself is very happy with the winery and what it has done for the Osoyoos Indian Band, but it is the good employment that is closest to his heart. He says, “Some of our people have retired at that winery. They got 30 years service in there.” Employment relates to something that Busmann and Picton both have something in common: they are both training First Nation replacements who will eventually take over their jobs. Neither will be retiring at Nk’Mip Cellars. Busmann, who has 10 years experience in the wine industry says, “My goal over time is for Lindsay [Anders] to take over the management of the winery.” Currently Anders is the communications director. For Picton there are two OIB members coming up the ranks – Justin Hall and Aaron Crey – one of whom will likely, eventually, sit in Picton’s chair. This is where the partnership with Vincor and Constellation has opened some huge doors. Constellation owns wineries in Canada, the United States, New Zealand and Australia among others. Hall, who started at the bottom of the ladder at Nk’Mip Cellars worked
his way up, got the education and was able to land a training position at some of Constellation’s wineries in Australia in 2005. Crey has the position of cellar supervisor but started a little later in the business and is off in New Zealand expanding his wine making education. Says Busmann, “Clarence is very, very clear that the most qualified person will get the job.” Only two months ago Hall’s work paid off when he was named Assistant Winemaker. While the winery is still a partnership, the goal is that it will be 100% owned and operated by the OIB Development Corporation one day. In the meantime Hall’s experience is one example of how the band is using its partnership to its advantage. Busmann explains another example. As the Osoyoos Band has added new companies and many new employees, it has reached the point where it needs a full time human resource department. Vincor has a well established one that has been in place for years and it is sharing its knowledge with its Osoyoos Band partner. They now have an intern program
Photo by Devon Brooks
Photo by SHAWN TALBOT
in place where band members (and anyone else who is selected) can try out working in the winery. Busmann says, “We evaluate the process every six months to see where the interns are.”
She adds, “We outline what you need to do to become a wine maker or a guest manager – this was never done before.” Never done before: words that apply not only to this employee training
program, but Osoyoos’ winery experiment, the business model and the opportunities it is creating for its people at Nk’Mip Cellars and its other businesses.
Photo by Devon Brooks
Entrance to the winery on a warm spring day.
NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 23
TFN members vote 'no' to a proposal to develop condominiums on an adjoining six-acre parcel, that would be similar to those pictured here. The TFN lands are highly valuable to developers because of their proximity to Delta Port and the ferry that takes hundreds of thousands of people to Vancouver Island every year.
24 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
R E A L E S TAT E
featurearticle
Tsawwassen Votes for
Development and Jobs
By Bobbi-Sue Menard
A recent referendum by the Tsawwassen Band saw the go ahead for development of an industrial land package next to DeltaPort in the greater Vancouver region.
I
t is difficult to overstate the unique characteristics of the 120 acres of industrial land the Tsawwassen First Nation (TFN) voted on in an April 15 referendum to approve for long term lease. The referendum results moved large scale development one step closer on TFN land. The industrial land in question is defined by its contiguous size and ready access to Deltaport, road and rail facilities. Located at the northwestern corner of TFN land, it is the only large piece of land on the West Coast of Canada with such a diverse range of sterling logistic qualities, and the TFN is laying down the legislative parameters and socio-economic goals to create investment stability and longevity. On April 3, 2009, the Tsawwassen First Nation Treaty came into effect. Since then, it has been an extraordinarily busy year for Chief Kim Baird and her council. When the Treaty took effect, Baird acknowledged, “The Indian Act no longer exists in our community.” Work has focused on delivering the civic institutions and
socio-economic structures necessary to build future success. One of the key pieces created by Baird and the council was the TFN Economic Development Corporation. The TFN corporation was incorporated November 1, 2009, under the BC Corporation Act; it has its own board appointed by the executive council of the Band. The TFN-EDC goals are outlined in a letter of expectations, which will be renewed or adjusted in 2012. “Everything we do is in the interests of the TFN,” says the corporation’s CEO, Chris Hartman. “The TFN is the entire shareholder.” Hartman describes the mandate of the TFN-EDC as generating revenue from TFN land assets and creating job opportunities. Hartman’s personal experience is in developing large pieces of land to generate revenue in the private sector. Hartman says ongoing successes and solid working relationships are a vital part of delivering future results to the Tsawwassen Band. One key relationship, NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 25
TSAWWASSEN VOTES FOR DEVELOPMENT AND JOBS continued
have been quietly knocking on the door since day one. A Request for Expressions of Interest will soon be released, signaling the start of the selection process. “We are talking to international investors with the experience to lead a project like this. It is a colour-blind process. The future agreement will look at revenue and the social side. It must deliver revenue; it must create jobs for members.” Hartman speculates final agreements could be in place as quickly as fall 2010, as interested parties have been making inquiries for over three years. “This is a motivated process and it would be wonderful to have construction of the first phase begin next year.” Baird understands a ‘motivated process.’ She discussed the past year and her hopes for the potential development two days prior to the band wide vote on the proposed developments. Baird is arguably one of the most productive legislators and community leaders in Canada today. Since the TFN Treaty signing in December 2006, its implementation in 2009 and the first community wide land use referendum, Baird and TFN Council have had to draft law, formulate business plans
INAC Minister Chuck Strahl and Tssawwassen First Nation Chief Kim Baird.
laid out in a February 12, 2010, MOU, was signed between the TFN and TSI Terminal Systems. TSI is the marine terminal operator in Vancouver and Delta, and has been a business partner with the TFN for many years. Included in the MOU are commitments to explore joint economic development opportunities, work towards developing programs to ensure employment opportunities and training and management capacity initiatives for TFN members. Recent visible activity on TFN land has been the result of $9 million in stimulus funds (shared equally between the federal, provincial and TFN governments) used to develop infrastructure in and around the 120 acres to be developed. The project has already delivered jobs: the initial land development activity saw, along with outside contracting, 3,000 hours of band member employment created in six months, with an average wage of approximately $20 per hour. That is small potatoes compared to what is coming up next, says Hartman. “We are looking at supply chain management, manufacturing facilities, and adding value to what comes to Canada,” says Hartman. The facilities will be aimed directly at maximizing the opportunities created by proximity to Deltaport. Funding industrial development is the next step as international investors 26 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
Construction on the TFN Lands means good employment.
and create effective community processes for dealing with the avalanche of information and questions. Land development and job creation have been high on the list of priorities. “So far in terms of engagement we have had a lot of our people extremely interested,” says Baird. One reason for that is the ‘pent-up demand’ for progress, she says. “The question is how to build an economy from the ground up. We have a lot of individuals who are anxious to see returns on the land.” There are a range of views on the land development issue. Prior to the vote Baird was optimistic about the outcome. Yet dissent is an ongoing theme Baird works with
TFN Development Referendum TFN Members voted on three ballot questions regarding three separate areas of Tsawwassen Public Lands 1 Majority of TFN Members voted ‘yes’ on TFN entering into lease agreements on approximately 120 acre of industrial land. 2 Majority of TFN Members voted ‘no’ on TFN entering into lease agreements for a commercial facility. The land under consideration consisted of approximately 100 acres adjacent to Hwy 17, all of a portion of which was considered for a a major retail, commercial facility.
daily. The referendum had three proposals, but in the end only one passed (see sidebar); although arguably it was the most important one to the Band’s economy. With a strong business case in hand the TFN Council didn’t take anything for granted and worked hard to address member’s concerns. Public process was adapted from full out forums to smaller meetings, almost one on one, with questions and answers recorded and distributed after sessions. “This has been an expression of our self governance and open accountability,” says the Chief. “It is tough from a traditional governance of consensus, but our conclusion is the minority shouldn’t rule and we don’t have the luxury of waiting for perfect to come along.” Baird keenly feels what she terms the “high expectations to manage judiciously.” With the development of the industrial lands, she is hoping TFN members see there will be more jobs than members. “What becomes important is the human resources strategy for training. We want quality employment. Right now [it] is chicken and egg; we [as individuals] have a general lack of confidence that specific training will lead to results, so we hold off on training.” The plan is for targeted training to
match skills to opportunities. Baird sees the inbuilt advantages of the industrial land development and creating training pipelines for members in the future. Industrial massing opportunities and light manufacturing in concert with the exceptional distribution opportunities have Baird confident about the future. “As soon as we finalized the treaty we began working on the land-use plan. The industrial land was low lying fruit. It is important to have early successes.” Baird and TFN Council have pursued an ‘aggressive’ legislative agenda by conscientious choice. The same can be said of the approach taken to economic development, “We’ve designed everything to be investment friendly; we are very open to that.” Photos contributed
TFN Economic Development Corporation Board Members (l to r): Diane McElhinney, Chair Norman Stark, Pat Hibbits, Carolyn Rogers and Chief Kim Baird.
3 Majority of TFN Members voted ‘no’ on six acres for the development of a retirement community complex located on waterfront lands.
NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 27
50 Years Ago... Shawn Atleo, Prime Minister Stephen Harper, Betty Ann Lavallée, Mary Simon, Chuck Strahl, and Clément Chartier (far right) meet to commemorate the signing of the fiftieth anniversary of the First Nations’ right to vote back in 1960.
O
n July 1, 1960 First Nations’ were finally given the right to vote, a date celebrated in Ottawa by the Prime Minister, Indian and Northern Affairs Minister Chuck Strahl along with some of the country’s most important aboriginal leaders including National Chief of the Assembly of First Nations
Photo by Jason Ransom
B RI E F
newsflash
Shawn Atleo, Betty Ann Lavallée, National Chief of the Congress of Aboriginal Peoples, Mary Simon, President of the Inuit Tapiriit Kanatami, Jeannette Corbiere-Lavell, President of the Native Women’s Association of Canada and Clément Chartier, President of the Métis National Council. Today electoral turnout by First
Nations’ varies widely by place across the country. The most accurate results, says Elections Canada, come from polling stations found on reserves. On a provincial basis Quebec natives were the least likely to vote in a federal election (35% in 2000) while 67% of P.E.I. First Nations’ voters turned out that same year. Generally speaking First Nations’ people are less likely to vote than other Canadians, but Elections Canada says demographics play into that. People under 25 are much less likely to vote regardless of ethnic background and First Nations’ have a much higher percentage of people in that age bracket. There is also a link between economic standing and a belief that the voter is connected to the political system and its outcome, both of which Elections Canada says has been noticeably weaker in the past for aboriginals.
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National Chief Shawn A-in-chut Atleo Assembly of First Nations For Information please contact Philip Ducharme: pducharme@ccab.com or call 416-961-8663 x 231
www.ccab.com 28 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
Wayne Brown e-mail: wayne@bigfoot-mfg.com
Ph: 250-835-8885
www.bigfootloghomes.com
ACH I E V E M E N T
featurearticle
“RealMaking People
Change”
Real
National Aboriginal Achievement Awards By Marie Powell Mendenhall
The annual National Aboriginal Achievement Awards (NAAA) offer an opportunity each year to recognize First Nations, Inuit, and Métis people for outstanding contributions in a variety of fields.
T
hese awards have been a Canadian institution since 1993, when the National Aboriginal Achievement Foundation (NAAF) established the event in conjunction with the United Nation’s International Decade of the World’s Indigenous Peoples. On March 26, 2010, about 2,000 people attended as Saskatchewan hosted the gala ceremony for the third time, this time at the Conexus Art Centre in Regina. The awards recognize outstanding career achievements of 12 people in diverse occupations, from business and politics to arts and education. A lifetime achievement award and youth award bring the total number to 14. The gala is a major showcase and a multimedia spectacle, with live performance, simultaneous broadcasts on two large screens, and various lighting and special effects. The 2009 event was nominated for two Gemini Awards by the Academy of Canadian
Cinema and Television, including Best Achievement in Main Title Design, and Best Performance or Host in a Variety Program for Adam Beach and Tina Keeper. This year’s hosts were Andrea
Menard, Métis actor-singer-songwriterscreenwriter, and Raoul Trujillo, actordirector-choreographer-dancer. The ceremony features aboriginal performers and celebrities, but the real focus is on the achievements of the 14 award
Recipients of the 17th National Aboriginal Achievement Awards presented at the Conexus Art Centre in Regina on March 26, 2010.
NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 29
REAL PEOPLE MAKING REAL CHANGE continued
The theme is reflected in the award recipients’ comments broadcast throughout the evening in pre-taped interviews, as well as the set design, decorations, performances, and various other elements of the evening. The NAAF is divided into two departments. The NAAA Secretariat handles the nomination and selection processes. The production department oversees producing the Gala Awards show and television broadcast.
Ellen Melcosky receives the NAAF ‘Business and Commerce’ award in Regina in April 2010.
Planning
winners. The event “recognizes excellence,” says Jamie Monastyrski, NAAF communications and media director. Only the youth award includes a cash prize of $10,000. “It goes toward their schooling and continued education,” he says. “That $10,000 really boosts a lot of youth.” Each award provides a way to mark “outstanding individuals,” Monastyrski adds. “It’s a feather in your cap. If you
win an aboriginal achievement award, you put it on your resume, you put it on everything.” Each year has a theme as well, such as the 2010 theme of “potential” introduced by Roberta Jamieson, NAAF president and CEO. That fits well with the NAAF’s stated purpose of raising funds to deliver programs that provide tools for Aboriginal peoples to achieve their potential.
Planning for each year’s event begins the day after the previous year’s show, says Monastyrski, and total costs reach over $1-million. The NAAF hosts a special event to mark the opening of nominations where the venue for the gala was also announced. The nominee list grows every year, Monastyrski says, as the awards grow in significance. Choosing is more difficult each year because of the number and quality of people nominated for each category. The lifetime achievement category has had the most nominations over the past few years, he adds.
The Business and Commerce Award Winner
Ellen Melcosky Shuswap, Cariboo/Chilcotin area of British Columbia. Her successful gourmet smoked salmon brand, Little Miss Chief, draws on her Esketemc First Nation heritage. Melcosky started her home-based business 15 years ago, with a family recipe handed down from her grandmother to her mother, to her. Melcosky still counts them, and sister Rosemarie, among her mentors. After raising three children, she took business and computer night courses. She also consulted with the University of British Columbia Food Services department, to find the packaging pouch that helps sustain the shelf-life of her product. “They all were so wonderful, guiding me through the process.” Today she provides indirect employment for subcontracted fishermen, packaging people, processors, artists, and others. “It was a real
30 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
challenge, but I put it all into place, as I was starting my business,” she says. Melcosky has won several prestigious awards, but she calls the National Aboriginal Achievement Award “the highest honour” a First Nations person can receive in Canada. “It’s just such an honour to be with such role models that have worked so hard to make us really proud of who we are and where we come from.” “I always say, believe in yourself,” Melcosky adds. “Follow your dreams, because they really can become reality. There are many aboriginal women that are the greatest of role models, to me. “Be proud of who you are, believe in yourself, and turn your ideas and dreams into reality, and leave behind a great role model example for the youth of today to follow.”
The 2010 award winners, honoured guests and elders gather on stage during the closing ceremonies of the National Aboriginal Achievement Awards.
NAAF hosts other events like the annual “Blueprint for the Future” career fair, which introduces students to a wide array of careers and employment sectors. On November 21 in Saskatoon, some 800 aboriginal students attended this event, with 300 having accommodations paid. The event has taken place in Saskatchewan four times in the past, with over 3,600 students attending. After the NAAA nomination deadline in September, a jury of previous award winners determined who will win the awards in any given year through a confidential selection process. The awards and other initiatives are sponsored by donations from provincial governments, corporations, and businesses. As the year progressed, the NAAF announced donations from many government and corporate sources, which reads like a who’s who of Canada’s biggest corporate companies. As well, in January, the NAAF’s second annual Dance Zone held an open call for dancers in Regina. Dance performances are broadcast at the gala, and shown on the television broadcast. As well, eight-year-old jingle dress dancer Kendra Bellegarde, from the Little Black Bear's Band in
Saskatchewan, was selected to receive two tickets to the gala. Two weeks before the show, Monastyrski and his production team descend on the host city, ready to iron out the final details such as planning the receptions before and after the show, hosting the award winners, decorating the venue, and building the set. His biggest challenge is getting the winners there from all across the nation, and bringing them to the show. “It takes a lot of organizing.” The NAAF is also careful of the cultural traditions of the hosting area. This year, organizers worked with five cultural-linguistic groups of Treaty Four area: Cree, Saulteaux/Ojibway, Dakota, Nakoda, and Lakota, according to Jennifer Podemski, co-executive producer, in program notes. Tyrone Tootoosis, a member of Poundmaker Cree Nation and Wanuskewin Heritage Park’s curator and cultural advisor, also acted as cultural advisor for the event. His support and vision helped Podemski explore the theme. Their work resulted in a set design depicting the prairie with “the bloom and potential of things to come.” Rather than flat wheat fields as it’s stereotypically depicted, the set blooms
with wildflowers such as orchids, lilies, and cacti. The centre is a powerful willow tree, reflecting northern and southern regions of the province. Technical challenges are always an issue, Monastyrski says, including “shrinking” the show from the oneand-a-half hour live performance to its one-hour broadcast time for Global and APTN, which was broadcast in May. Having an experienced crew and “solid team” helps, he says. Monastyrski has been with the production staff three years, and many others have been part of the team for three or four years, and that makes the process “a lot easier.” During the week before the show, the NAAF hosts its annual Education Day by inviting First Nations, Inuit, and Métis students for a behind-thescene look at the NAAA show. This year students from Regina and the Piapot reserve had the chance to watch rehearsals and spend time on the set learning how the show is put together. NAAF representatives also speak about the foundation, and how it can help with their post-secondary education. Youth is a special focus for the NAAF. For instance, since 1985 the NAAF’s Education Program has awarded more than $32-million in scholarships and bursaries to more than 8,400 First Nations, Inuit and Métis students across Canada. This year, NAAF has given $5 million in scholarships to students across the country, according to media releases. Over its history, the Foundation has awarded $4-million in scholarships and bursaries to over 1,000 aboriginal recipients from Saskatchewan alone. For example, performer Leemai (Leemai Lafontaine), Regina-born R&B artist, is pursuing a doctorate in dentistry on full scholarship, including NAAF scholarships. He has performed since he was five years old with his siblings in the family performance NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 31
REAL PEOPLE MAKING REAL CHANGE continued
National Aboriginal Achievement Awards
2010 Award recipients
AWARD
RECIPIENT
LOCATION
Youth Skawenni:io Barnes Mohawk, Kahnawake, QC Arts Kananginak Pootoogook Cape Dorset Inuk, NU Business and Commerce Ellen Melcosky Esketemc First Nation, Secwepemc, BC Culture, Heritage, & Spirituality Tom Crane Bear Blackfoot Confederacy, Siksika First Nation, AB Education Dr. Raoul J. McKay Red River Métis, MB Environment and Natural Danny Beaton Turtle Clan Mohawk, Resources Six Nations of the Grand River Territory, ON Health Madeleine Kētēskwew Dion Stout, BN, MA, PhD Cree, Kehewin First Nation, AB Law and Justice Donald Worme, QC, IPC Kawacatoose First Nation, Cree, Treaty Four, SK Lifetime Achievement William Commanda, OC Algonquin, Kitigan Zibi First Nation, QC Media and Communications Kenneth Atsenhaienton Deer Mohawk, Kahnawake, QC Politics Hon. Eric William Robinson Cross Lake Cree Nation, MB Public Service Edith Cloutier Temiscaming, Métis/Algonquin, Anishnabe First Nation, Val-d’Or, QC Sports Monica Pinette Métis Nation, BC Technology and trades Doug Henry Aamjiwnaang First Nation, ON group 5th Generation. The 22-year-old also performed “Roll with a Gangsta” at the 2010 gala, with dancers Michael Greyeyes and Ceinwen Gobert. The roster of top gala performers also included Elisapie Isaac, Crystal Shawanda, and the Dancing Young Buffalo drum group. Buffy St. Marie performed the closing ceremonies, along with Red Bull and the Wanuskewin International Dance Troupe. Actor Lorne Cardinal (Tecumseh: The Last Warrior; North of 60: Distant Drumming) also made a special appearance to co-host a 32 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
segment of the gala. “NAAF is committed to enriching Canada by advancing Aboriginal Achievement in the Province of Saskatchewan,” said NAAF President Jamieson in media releases. “We will continue to work in the province long after we honour the 14 outstanding recipients at this year’s Awards Gala.” In her speech introducing the event, Jamieson thanked Tootoosis and other advisors for “their spiritual support along the way.” She thanked the “hundreds” of people on the production team, who helped bring together an
event of music, dance, and storytelling to honour the award recipients. “My biggest reward is seeing the recipients get their awards,” Monastyrski agrees, “and cry, and have them say all the work they’ve done all their lives. It’s a very emotional show.” Co-host Trujillo, known for his roles in movies such as Apocalypto and television shows like True Blood, says he appreciated the awards because they are not focused on celebrity or fame. “They’re about real people making a real change in the world.”
Shirley Gambler’s Really
BigDreams
e e r F
m o d
By Bobbi-Sue Menard
Shirley Gambler, 58, is heading back to school and investing her payout from the residential schools apology to take the next step in her entrepreneurial dream. A Woodlands Cree from the Bigstone Cree Nation in Alberta and resident of Chase, British Columbia, Gambler completed a Community Futures self employment program in the fall of 2009. It is designed for First Nations seniors and helped persuade her to head down the path of self-employment. Gambler’s goal is to own and operate a custom sewing company, with a specialization in properly blessed ceremonial Sun Dance clothing. She first ventured into self-employment in 2001 when she went looking for training before striking out on her own. She moved from Chase to the small interior British Columbia of Merritt to essentially apprentice at a small aboriginal clothing manufacturer. Within four months she registered the name Thunderwolf Creeations in preparation for opening her own shop. At that time her goal was to leave a legacy for her grandchildren, who inspired the name, Thunderwolf. The hours and demands of business were daunting, and Gambler pulled back to get right with her spiritual heritage and deal with the remnants of residential school survival. “I worked on healing,” says Gambler. “That had to be the priority.” While focusing on achieving spiritual wholeness, Gambler continued to
Photo contributed
It is never too late to make the right investment.
Shirley Gambler (second from left) on the completion of the Freedom 55 program from Community Futures.
sew ribbon shirts for family and took on occasional custom work. With great respect for the spiritual side of what she does, Gambler is able to create ‘clean’ garments, including taking it to the sweat lodge to be blessed. “When traditional and spiritual people ask if it is clean, they mean if the shirt has been made by hands that are drug and alcohol free,” explains Gambler. “You cannot put any negative thoughts into that garment. It all has to do with the protocol.” A five week long Community Futures entrepreneur program in the fall of 2009, Freedom 55, inspired Gambler to return to her business dream. “I took that program to help me see where I wanted to go. It motivated me to get going, it brought back the spark.” Gambler credited the program for helping her lay out the precise steps she needs to take next. She has made the decision to attend Portage College
in Lac La Biche and take the one-year Native Cultural Arts Instructor certificate program. Unable to access any other source of immediate funding, she will use her residential school payout to support herself during the first few months, until she qualifies for Alberta funding programs. The certificate will allow her to diversify her business opportunities going forward. With her current skill set, plus certification, she is hoping to offer artifact reconstruction. “That is something I want to look at; I know the language and history.” Credibility also comes with completion of the certificate, says Gambler. “It’s one more piece towards a startup grant for machinery when the business gets going.” Gambler has plans to start small, eventually offering job opportunities to young people. I want to make our clothing more accessible to Native people. I’ve got really big dreams.” NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 33
DE M O G R A P H I CS
article
34 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
Photo contributed by the Ktunaxa Nation
The end of a sad era before the rehabilitation of the old residential school.
TOURISM
featurearticle
THE
Rebirth of
St.Eugene By Darcy Nybo
When you arrive at St. Eugene Resort and Casino it is almost impossible to imagine that this was once a residential school before being renovated into a psychiatric hospital and, finally, abandoned.
Photo contributed by St. Eugene Resort
L
ocated on St. Mary’s Reserve between Cranbrook and Kimberley in the Kootenay Rockies of B.C., the Mission school once instructed and punished 5,000 children from the Okanagan, Shuswap and Blackfoot Nations in addition to the area’s Ktunaxa (pronounced “too-nah-ha”) Nation. After the government spent $750,000 in renovations, they abandoned the building, causing the pipes to burst and major flooding to occur. For 20 years it sat there, a symbol of a sad period in history where children were forbidden to speak their native language. The government eventually gave the building to the Ktunaxa Nation. That’s when Chief Sophie Pierre of the St. Mary’s Indian Band and her development team became inspired about turning the crumbling facility into a golf course, resort hotel and casino. They faced many hurdles: some with their own nation, others with governments and banks, some with the business
structure. The resort was a struggle at first. “Their biggest problem was there were three separate companies, one running the casino, one running the hotel and one running the golf course,” explains Dan Shilling, chairman of St. Eugene Resort. “The Resort didn’t have synergy. In 2004 we merged all three under one company and it became much easier to manage.” The St. Eugene golf course opened the May long weekend of 2000. The casino was the next to open in September 2002 followed by the resort complex in January of 2003. The Ktunaxa sought out other First Nations investors who came onboard in November 2004. Today the resort is a limited partnership with three equal owners: the Ktunaxa Nation (B.C.), the Samson Cree Nation (Alberta) and the Chippewas of Rama First Nation (Ontario). Each one of the three Nations has one representative and one alternate. Shilling is confident about the future of St. Eugene. “I think this is a great model NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 35
The property has an interpretive centre operated by the Ktunaxa Nation Council, which displays artifacts and details about the history of their people. It is also a place for people to learn about the impact of the residential school that operated there. The centre is also home to Ktunaxa language revitalization programs. The Ktunaxa language is classified “critically endangered.” In 2010 there were fewer than 24 fluent speaking elders on the Canadian side of the border, all over the age of 60. The Ktunaxa language is also known as a language isolate, which means it cannot be linked to any other language in the world, and can only be found in this traditional
Photo contributed by the Ktunaxa Nation
and has worked very well with no government involvement. It’s a unique partnership that is working. The biggest thing is that we have strengthened our human resources department. We are bringing in Max Dressler, currently the VP of Gaming in Manitoba, as our new CEO in May. From here we will be creating meaningful employment opportunities for First Nations people.” Wendy Van Puymbroeck is the Director of Sales and Marketing for St. Eugene Resort. She says the property, from a marketing standpoint, is an ‘easy sell.’ “We are steeped in history, in a spectacular location and we showcase the 10,000 year history of the property and the Nation.”
Both hereditary and Government Chiefs representing the Ktunaxa Nation in the 1880s, in the Cranbrook, B.C. area. Both hereditary and and government appointed chiefs are represented in this photo.
36 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
Photo contributed by St. Eugene Resort
THE REBIRTH OF ST. EUGENE continued
Chief Sophie Pierre of the Ktunaxa Band, which is now partnered with two other bands from across Canada to make the Resort into a financial success and an opportunity for band members.
territory. During the years of the residential school the familiar story was played out: children spoke only English in school and parents were afraid to teach the language at home. St. Eugene has come full circle. As Mary Paul stated, “Since it was within the St. Eugene Mission School that the culture of the Kootenay Indian was taken away, it should be within the building, that it is returned.” Currently the majority of their visitors are from the northwest U.S.A., Alberta and other parts of B.C. “We also enjoy a lot of government and business travel along with weddings and retreats,” explains Van Puymbroeck. “This past summer we hosted a Jewish wedding. I went out to talk to the family and found the guests were from New York, New Jersey and Israel. Now that they’ve had a chance to see the property we are hoping to see them again. Word of mouth is very important to us.” “We attend a lot of consumer and trade shows to tell people about our place and our area,” she explains. “We have less focus on print and other
Photo contributed by St. Eugene Resort
mediums because we want to focus on the customers directly. Our customer focus and customer service is top of mind when it comes to marketing at St. Eugene. We encourage our customers to tell their friends.”
The golf course at St. Eugene is highlighted by the spectacular mountain scenery of the Kootenay Mountains.
At the moment the team is pulling together the technology needed to develop a customer reward program for the entire resort to include referral programs, frequent stay programs, and frequent dining program.
Photo contributed by St. Eugene Resort
A typical room in the 4.5 star St. Eugene Resort hotel.
They are also striving to increase aboriginal presence here. “We want to support the First Nations business we enjoy,” says Van Puymbroeck. “We recently sent out a package inviting them to visit our traditional territory. First Nation groups like to visit us to see first hand what can be done with a sad icon of history and how it can be changed and renovated into a successful business.” Successful it definitely is! St. Eugene’s now ranks as a full service 4.5 star hotel. They have the Casino of the Rockies and a Les Furber designed golf course, which in 2001 was rated by Golf Digest as one of the top three new courses in Canada. There is also a teepee area set up outside the hotel and all within a five minute drive from the newly expanded Canadian Rockies International Airport in Cranbrook. Guests can choose from clubhouse BBQ’s to the casual elegance of the Purcell Grill. Pub and delicatessen style menus are available in the Fisher Peak Lounge and Fred’s Saloon. Then there is the health club which contains a fully equipped gym, steam room, sauna, outdoor heated pool and hot tubs. Originally opened as an adult oriented resort with casino and fine dining, St. Eugene’s is shifting its focus to become more family oriented. “We are a destination resort,” say Van Puymbroeck. “We promote all of the things to see and do in the area. We are famous for golfing, skiing, hot springs and history. There is a lot of cross over here.” NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 37
Requests for Qualifications
The PenTicTon indian Band develoPmenT corPoraTion (PiBdc) is soliciting requests for
Qualifications (rFQ) from experienced developers, contractors and design companies who are interested in entering into a significant new land development joint venture.
a full range of infrastructure, design, engineering, land use and environmental planning and related capital and financing of the projects will be required for:
• Approximately 550 acres (215 Ha) of terraced lands • Prime lake and city views • Adjacent to the airport and highway #97 • Mix use development with a 90 year lease • Variable density with a planned unit development plan • A range residential neighbourhood styles and development • A professional 18 hole golf course • Potential Hotel/accommodation facilities • Village/neighbourhood commercial • Parkland, trails and open space areas If you are a company that can put together a master plan and a team who can oversee the full range of infrastructure, design, construction, funding and capital to undertake the development of the project to final sales and marketing; work with a first nations development corporation (and LLP) as a joint partner on the design, phasing, construction and revenue sharing, then; Send your Company profile including background, previous projects, qualifications, corporate principals and related expertise to the PIBDC offices: business@pib.ca, or mail to PIB Development Corporation, RR#2 S65 C35 Penticton, BC V2A 6J7, or drop off in person at 200 Westhills Drive, Penticton, BC.
A developer package is available and any questions may also be addressed to the
General manager, robert Greno, email: business@pib.ca or telephone: 250-492-3154. Deadline for submissions is August 31/2010 at 12 noon. 38 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
PIBDC
F I N A N CE
article
Bank Eager toworkwith
ABORIGINAL BUSINESS Doug Bourque is the Director for Aboriginal Banking British Columbia and Yukon for the Bank of Montreal and he has a great story about deciding the risk involved when dealing with First Nations businesses.
E
very financial institution runs models estimating the average likelihood that a person or organization will default on a loan. They base it on how many failures have occurred among people or groups like the applicant. Generally speaking, the fewer that have defaulted, the better it is for the loan applicant because it suggests this type of business or people with this background are doing well. With First Nations people these number crunchers have a problem. Says Bourque, “We’ve had no write offs.” No-write offs pretends to perfection. In reality Canadian banks simply haven’t worked with that many aboriginal businesses. Bourque says, “They were really being under-serviced. The track record of big banking with aboriginals has not been all that good.” This is changing. “In the banking industry I think there is a movement to reduce barriers to doing business with First Nations,” says Bourque. “Every
First Nation has an opportunity for us.” Not just for BMO. Every major bank has created an aboriginal unit to address issues specific to First Nations. Bourque, who is a non-status Indian, first got involved in aboriginal banking in the early 1990s. He says, “My eyes got really opened to the positive aspects of aboriginal business.” Bourque feels bands waiting for funds from Indian and Northern Affairs will be waiting a long time. This problem with insufficient funding is at the heart of many native issues and the only way to address that is to give First Nations the ability to fund their own projects. That means business development. Bourque has a word of caution though, saying that some Bands are approaching business as if it were social service.“Some bands run business like a community resource to create jobs, but those aren’t sustainable.” Fortunately changes in the economy are benefiting aboriginal business opportunities. Some business sectors are more promising than others. Depending on the location of a reserve development of residential properties or commercial buildings is promising. In other cases it is resource extraction of some kind. Says Bourque, “Certainly there is a lot of opportunity for micro-power generation, forestry and tourism. The
By Devon Brooks
Doug Bourque
opportunities are endless.” He is as skeptical about treaty disputes being settled soon as he is about government suddenly becoming generous. Bourque feels settlements are going to take too long. “In my lifetime, will we see the treaties settled? It’s doubtful.” At the same time, more band members are eager to move ahead. Observes Bourque, “I’ve been in so many First Nations and not one has said they didn’t want to be self-sufficient.” Many bands have some ideas, but are held back by a lack of cash, which is where a bank can help. In cases where they have no capital, private partners may be part of the answer. “We’re NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 39
seeing more and more joint ventures for business opportunities.” In the past one of the concerns was the overlapping tax and legal jurisdictions between the province and federal governments, especially for a business only partially located on reserve lands. That too is changing, says Bourque. “[Joint venture] partnerships create some tax considerations, but that’s not a major hurdle.” A bank should be much more than a place to get funds. A good relationship allows a business person to access a bank’s wealth of knowledge and experience. Not only about what to do, but what not to do. Bourque’s experience is “Often the advice we counsel is to make sure that it’s a fair partnership.” At the Bank of Montreal, he says they have rethought the traditional approach to lending money, abandoning the old “cookie cutter approach.” For bands that have achieved selfgovernment, it can be easier to arrange
funding for economic development, but even for those still under INAC’s thumb there are options. What is important is that the individual or band corporation can demonstrate it has some means of paying back the loans. “Cash flow is still critical for the Bands still under INAC.” Bourque gives the Tsawout Band on Vancouver Island as a good example. It has cash flow because part of its selfgovernment deal was implementing the GST on goods and services sold on the reserve; however the GST collected comes back to the Band. Even though Band members now have to pay the tax, it comes back to them. Using that cash flow as a basis, the Bank of Montreal helped Tsawout finance some commercial buildings. Those buildings brought in more businesses and increased that tax flow, helping the band to pay off its loans and providing more job opportunities for its own members.
EVEN THE MOST SUCCESSFUL COMMUNITIES AND BUSINESSES NEED A HELPING HAND. For complicated financial matters, Canadian First Nation and aboriginal entrepreneurs, organizations and government bodies rely on the trusted professionals at BDO. Our practical experience and established community relationships enable us to understand and meet today's challenges. We can work with you to continually develop your community and achieve lasting results that will echo into future generations. Our aboriginal services include: • Accounting and auditing • Business and community management • Economic growth management Assurance | Accounting | Taxation | Advisory Services www.bdo.ca BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.
BRIEF
BANK EAGER TO WORK WITH ABORIGINAL BUSINESS continued
newsflash
University’s voyage of sk’∂†pax∂xnumt Penticton Indian Band member and Okanagan language instructor Richard Armstrong stands under one of the new bilingual street signs on UBC’s Okanagan campus.
One way that the University of British Columbia Okanagan has chosen to honour the fact that its campus sits on the traditional territory of the Okanagan Nation is by posting bilingual signs in English and the Nsyilxcen language. Director of Aboriginal Programs and Services Lyle Mueller notes, “It is customary among Aboriginal people to acknowledge and respect traditional territories. Knowing this, UBC Okanagan felt it was appropriate to acknowledge the traditional territory of the Okanagan Nation by using its language on campus.” For example sk’∂†pax∂xnumt is the Nsyilxcen word for ‘discovery’, which is also the name of one of the avenues on the university campus. This new discovery is part of the effort to connect to the local Indian Bands, while raising awareness among the students of the culture that has been in the area for thousands of years. Christine Schreyer, an anthropology professor at the university, says, “I think UBC Okanagan is doing an excellent job of raising awareness of the Nsyilxcen language, as well as acknowledging their traditional lands with these signs.” Photo contributed
40 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
DOROTHY GRANT flies the
colours of her
culture By Bobbi-Sue Menard
When Vancouver fashion designer and retail entrepreneur Dorothy Grant first started in business over 20 years ago, she adhered to strict business principles and hard work.
T
oday Grant operates a successful clothing business featuring sophisticated designs incorporating ideas from Haida culture, fusing myth into each flawlessly designed and manufactured garment. The art behind Grant’s business began early; she was sketching Haida designs onto clothing in 1983. By 1988, she had upgraded her design skills at the Helen Lefeaux School of Fashion Design in Vancouver. With big dreams in hand and encouragement from people she respected Grant devoted herself to developing an extensive business plan. “I did the research, the comparative study in the market. I had a thorough knowledge of the numbers and in black and white I knew what I was faced with,” says Grant. That didn’t stop the hard knocks from coming. Financing was, “Very, very difficult,” says Grant, adding that being a woman made it even tougher. The fashion industry is known for its high business failure rate within the marketplace, but Grant held tough and managed to keep opening the front door to her retail space each day. “Having my own store put me on the Canadian map. Having my own space was a cost of doing business.” Her store opened in 1994, the same
year she incorporated. Inventory, costs, and understanding retailing piled into the learning curve, as Grant worked to design clothing, produce it and sell it. Staff and payroll were a part of the business from day one. Grant knew she needed the technical skills of pattern drafting on her team. Day to day administrative help was also a role that had to be filled. “I come in and make decisions, good solid decisions. If I had to make all of the minute decisions I wouldn’t be able to do it all.” It has been a constant roller coaster even as media attention has grown over the years. Grant says the secret has been to keep working hard, a lesson she learned on the first day of school, “The first statement I heard in class was, ‘You either have talent or you don’t. What matters is how hard you work.’ I thought, ‘OK, I’ve got to wake up and work hard.’” The 2010 Olympics were another learning opportunity for Grant. Like many retailers she found Olympics visitors were looking for smaller pieces. She says the value from the Olympics was the publicity the company received. Moving forward Grant is hoping to see an expansion in online sales. Grant oversees the production of
three separate lines within her company: the Red Raven label, which is sportswear priced from $30 to $325; the Dorothy Grant Label, a mix of sophisticated daywear options priced from $150 to $900, and; the Feast Wear line, which is a modern take on traditional forms, with a more couture approach to production including hand NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 41
R E TA I L FASH I O N
article
DOROTHY GRANT FLIES THE COLOURS OF HER CULTURE continued
appliqué, and prices range upwards to $4,000. Her products can be seen online at www.dorothygrant.com. The company has developed a broad acceptance across demographic lines. The unifying theme for customers tends to be an appreciation for Canadiana and well-made, contemporary cuts. Grant is looking to expand her markets, but seems uncertain as to exactly how. “Distribution is a ‘science’ that needs to be worked at,” she says. Currently the company has some distribution in the U.S., the E.U. and Western Canada, and has trademarked the logo. She has relied in the past on word of mouth and basic marketing, which have proved to be effective. Now she seems to be considering distribution changes, but keeps details close to her vest. Grant’s bottom line is simple, “Pay attention to the business. You aren’t going to make it if you don’t pay attention.” Photos contributed
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Beyond the Indian Act:
Restoring Aboriginal Property Rights
An excerpt from the book by Tom Flanagan, Christopher Alcantara, and André Le Dressay on how aboriginal people can move ahead and take more control over their own future
A
boriginal people are the least prosperous demographic group in Canada. In life expectancy, income, unemployment, welfare dependency, educational attainment, and quality of housing, the pattern is the same: aboriginal people trail other Canadians. And within the category of aboriginal people, another pattern also stands out: First Nations (status Indians) do worse than Métis and non-status Indians; while among First Nations those living on-reserve do worse than those living off-reserve. These patterns have been more or less stable for decades. Aboriginal people and First Nations are progressing on most indicators compared to other Canadians, but the progress is painfully slow, and it will take centuries to achieve parity at these rates of change. Ironically, although First Nations are at the bottom of socioeconomic rankings, they are potentially wealthy landlords, with land reserves totalling 6.5 million acres (2.7 million hectares). To be sure, some reserves are of modest economic value, because they have no natural resources and are located far from population centres. But others have arable land as well as commercial timber and valuable deposits
of oil, natural gas, and minerals. Also, as Canadian cities continue their inexorable expansion, more and more reserves are finding that their location makes them valuable. Dozens of reserves are now situated within or on the edge of major cities such as Vancouver, Edmonton, Calgary, and Montreal, as well as rapidly growing smaller towns such as Kamloops, Kelowna, and Courtenay-Comox. All this land represents an enormous economic asset that could and should make a major contribution to raising First Nations’ standard of living. Indeed, some of that is now taking place. We are seeing almost an explosion of aboriginal entrepreneurship in the age of “red capitalism.” Across Canada, First Nations are opening casinos, shopping centres, industrial parks, golf courses, and residential developments; they own trust companies, airlines, trucking firms, sawmills, and oil wells. But these developments, impressive as they are, are handicapped by an inadequate framework of property rights. Investors are deterred by uncertainty; legal work and litigation multiply; projects take longer than they should, and many potentially profitable developments never happen because all these factors raise the cost
structure. Lack of collateral is indeed a wellknown and serious obstacle to aboriginal business ventures, but it is only the tip of the iceberg of property-rights issues. Defects in the property rights of First Nations exist at two levels. The first level of difficulty is that, with a few exceptions created by recent treaties, First Nations do not own their lands; the federal Crown has legislative jurisdiction over and manages these reserves for the use and benefit of their residents. In practice, this means that many economic transactions involving reserve land have to be reviewed by the Department of Indian Affairs, adding layers of legal work and delay to an already cumbersome approval process. We believe that Indians should own their own lands and are capable of managing them, and that those First Nations who wish to take over that responsibility should be able to acquire the title to their reserves from the Crown. We are proposing that the federal government pass a First Nations Property Ownership Act so that First Nations across Canada can have clear underlying and individual property ownership, should they so choose. The benefits of a First Nations NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 43
CO LU M N
bookreport
BOOK REPORT: BEYOND THE INDIAN ACT continued
property ownership would be substantial. In combination with existing federal legislation, it would fill in most of the gaps in the First Nations investment climate and dramatically reduce transaction costs. With a stroke of a pen, First Nations land values could rise to those prevailing in the rest of Canada. It would recognize underlying First Nations title, and thus formally bring First Nations governments into the federation. It could increase home equity for homeowners on First Nations lands so they can be more entrepreneurial, plan for their retirement, and bequeath their wealth just like other Canadians. It would help resolve issues relating to matrimonial real property and estates. It would provide market incentives for improved financial management and for completing self-government and landclaim negotiations. The legislation would be completely optional for First Nations. The First
Nation could choose to participate through an acceptable demonstration of community support similar to passing a land or a self-government or treaty agreement. Moreover, the First Nation would determine application of the new title system to its lands. Some First Nations will limit their land-title system to a specific area and may even limit tenure to leasehold title. Others may choose to apply their land-title system to all their lands and enable comprehensive fee-simple ownership. The legislation would facilitate either of these choices as well as an infinite number of choices in between. Market economies are built on the exchange of property rights. The market cannot function without property rights that are secure, easily defined, enforced, and traded. This is especially true with respect to land. Land is the most fundamental type of property, and therefore property rights in land are the bedrock of the market
economy. The success of an economy can be traced to its ability to provide secure and tradable property rights over land. A Torrens land-title system typically provides the private sector with both the requisite property rights and a mechanism for their exchange. In this regard, the ultimate objective of the First Nations Property Ownership Act is to support the aspirations of First Nations people: to assist them to unlock the tremendous economic potential of First Nations land, to become productive contributors to the Canadian economy, and to provide a mechanism that will allow them to create the level of prosperity that other Canadians take for granted. From Beyond the Indian Act: Restoring Aboriginal Property Rights By Tom Flanagan, Christopher Alcantara, and André Le Dressay Foreword by C.T. (Manny) Jules Published by McGill-Queen’s University Press
Penticton Open for Business
Proud of our long history in partnership Working together to build a stronger region
with Okanagan-Similkameen First Nations communities
Penticton Economic Development contact: 250-493-3323 www.imaginepenticton.ca 44 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
402 Warren Avenue East, Penticton BC V2A 3M2 P: 250-493-7972 F: 250-493-7255 info@greyback.com www.greyback.com
Top 10 must-haves for a new business 1. Passion, Enthusiasm or Excitement This is essential. Don’t start a business for the money you’ll make. Making money was a primary motivator for me when I started, but it’s been the love of what I do that keeps me positive in tough times. No business goes straight up; natural laws dictate that there is an ebb and flow to everything.
2. Website This doesn’t have to be costly. Get something where you can control the content. A Wordpress site is what I would recommend as being the best for the ability to be creative and have control. If you aren’t familiar with it, it is the world’s largest self-hosted blogging tool, but it has much to offer for those who want to build a website and it is free to use. Don’t let the term ‘blog’ scare you; these days blogsites and websites can be used almost interchangeably.
3. Social Media Marketing Marketing, in general, is a must which almost goes without saying. You’ll need to decide based on your market whether print, TV or radio is a best option for you. I’m emphasizing Social Media because this is a trend that cannot be ignored just because you don’t understand it. All too many people do ignore it. Don’t make that mistake! Find out if it can work for you. This is dependent upon who your market is, but the trend is towards more social media marketing.
4. Uniqueness What makes you different from the others in the same business? Sometimes this might feel difficult to identify, which likely means what’s unique in this business is you. Flaunt it!
5. Formatted Plan Don’t reinvent the wheel. Plenty of people out there have been successful at a business similar to yours. Find them online– for less than $1,000 many sell a blueprint that shows you how they created a successful business.
6. Customers with Money Don’t fool yourself! If you think your target market can’t pay, but it’s something they really need, give your head a shake and find a new target market. Harsh words? Maybe, but words that will save you oodles of time, money and heartache.
7. Believe in your Success If you don’t believe, no one else will and you won’t attract the business you want. If the Creator gave you an idea for business, do it. You would not have got the idea if you couldn’t make it happen.
8. Moving toward Attitude You attract business based on what you focus on. If your focus on starting a business is to get away from working for someone else, or to get away from something you don’t want – that is a ‘moving away’ attitude. While a powerful motivator, a far more powerful force is moving
toward something you do want. Focusing on an attitude of helping others, providing a service or product will make life easier.
9. Support Even for the most introverted loner on the face of the earth, there will be times when you need moral support. If you don’t have this within your friend or family base – find it in the business community or hire a coach.
10. Money Building a business is like building a house – it’s always going to cost you more than you think. Don’t let this stop you, but understand that there will be times when you need to find more money.
Take it from someone who is a classic do-it-yourselfer who tried to buck these trends, these are only ten musthaves for starting a business – there are many more that are also important. Karen Luniw is a Personal and Business Attraction expert, Author and Speaker who works with highly motivated individuals to uplevel their life. Karen’s Law of Attraction Tips podcasts have been downloaded over 10 million times by people all over the world and has been on the top of the US and Canadian iTunes charts. Find out more at KarenLuniw.com
NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 45
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A RT & CU LT U R E
article
AIRPORT
Introduces Fliers
Native Culture
to
By Devon Brooks
The Kelowna Airport unveiled a display of art and culture from Westbank First Nations (WFN) in the international departure lounge.
T
he unveiling was attended by elder Delphine Derickson who worked, along with curator Gayle Liman, on what would go into the first display. According to Derickson, “We are witnessing history today like we have never have before.” Along with Derickson and Liman, WFN Chief Robert Louie was present along with the airport’s manager Sam Samaddar, Mayor Sharon Shepherd from Kelowna and Mayor James Baker from the municipality to the north, Lake Country, B.C. Chief Louie says, “The airport has given the Westbank First Nation, and the whole Okanagan Nation, the chance to share our art and history with every one in the valley and the world.” He adds, “We believe this will help bridge our cultures.” What goes into the display will be changed every six months so that frequent visitors will be drawn back to view differing work. Liman points out how the display is divided into past, present and future so that viewers have an idea of the rich culture that has gone before and the energy and enthusiasm that WFN people have today and are projecting into their future.
WFN Chief Robert Louie, Kelowna Mayor Sharon Shepherd unveil the art display while Kelowna International Airport Manager Sam Samaddar watches.
Photos by Shawn Talbot After the unveiling, people gather round to view the new art and cultural display. 46 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
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Entrepreneurial The
Dream Catcher
By Joel Young
First Nations Entrepreneurship Builds Communities
I
am privileged to announce my inclusion as the entrepreneurship columnist for this new exciting publication that will present many stories of aboriginal economic development across this great nation. Each issue, I will share with you the ingredients toward “becoming an entrepreneur”, blending educational and informational content with examples of options readily available to assist First Nations people in becoming selfemployed either alone or with others. During the Mulroney Conservative government years, I was chosen to be part of the process when Minister Tom Hockin, the federal Small Business Minister at that time, oversaw the creation of Canada’s first National Entrepreneurship Policy & Strategy. Part of the excitement was that this policy was one of the first ever created in the “developed” world. I was a member of the national evaluation framework team for that policy and as such, enjoyed vast experiences that I will never forget, and I suppose, forged part of my love for the entrepreneurial spirit and the joy that it can bring to people’s lives. The target groups for this policy included First Nations people. With this inaugural column, I would like to begin by exploring what makes a First Nations enterprise successful. One of the heaviest burdens the aboriginal peoples of Canada have to
bear is dependency. While there have been various differences in the interactions between native people and European newcomers over the generations, the expropriation of indigenous lands, social welfare policies and other aspects of historical interaction have produced some common outcomes. Dependency is a major one. Being stripped of the resources on which they had drawn for so many years, but also their freedom, many First Nations communities found themselves forced into welfare dependency. The harsh reality is that such dependency has high costs. It undermines political autonomy, and left aboriginals hostage to policy decisions made by others serving interests that often departed from First Nations’ concerns. On reserves it produces economies heavily dependent on employment in First Nations government – that is employment funded by nonindigenous governments. Escaping the dependency trap offers alternative ways of meeting two critical economic goals: providing economic opportunity for First Nations’ citizens (jobs, business venture prospects, resources and subsistence), and; funding for First Nations government (law making, decision-making, judicial and enforcement to name a few important items). My research on successful First Nations socioeconomic development
advancement is based on “productive entrepreneurship.” Productive enterprise means jobs, which provides either direct income to the nation in the form of business revenues or indirect income as taxes. Entrepreneurs often create new venture opportunities for the First Nations people beside the one they made for themselves, hence a successful business multiplies its own effects and constitutes a way of meeting a community’s needs that is subject, one way or another, to community control. Productive and sustainable businesses serve three markets: internal markets, export markets or both. The ownership of those businesses can be aboriginal or non-aboriginal if it employs First Nations citizens and serves aboriginal markets through partnerships. The urgent need for growth and diversification in First Nations’ economies suggests the wisest choice is to explore all the forms of enterprise development. There is no concrete way that First Nations, or anyone else for that matter, can guarantee entrepreneurial success. Communities or entrepreneurs who demand such guarantees may be quickly demoralized and taken out of the game. The factors that shape entrepreneurial success are too diverse and a degree of risk is always inherent in a NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 47
THE ENTREPRENEURIAL DREAM CATCHER continued
free society. But…I have discovered First Nations’ entrepreneurs and their respective communities can control certain factors that can increase their chances for success and considerable economic benefit. External economic conditions are often tough, if not impossible, to control – from the cost of capital, market behaviour, competition, regulatory environments and government policies
toward First Nations’ enterprise. Skillful preparation for a new venture may affect some of these things, but I have a firm belief that First Nations’ communities that create a “spirit of entrepreneurship” through entrepreneurship education and training best practices, by embracing partnerships that blend aspiring First Nations entrepreneurs with experienced nonFirst Nations entrepreneurs, and by
collaborating with dedicated and committed business organizations will produce enviable results. Several years prior to moving to the Okanagan, I was immersed in First Nations’ economic development throughout Saskatchewan, visiting many of communities and talking to tribal councils from top to bottom in the province. I enjoyed working on the creation of one of the first Aboriginal Entrepreneurship Centres in the province, setting up entrepreneurship conferences, and orchestrating a licensing agreement with a leading U.S. entrepreneurial foundation for training. Through these experiences, I was privileged to meet and learn from a multitude of talented First Nations’ people and witness many First Nations’ people, particularly the young, realize the benefits of entrepreneurship creation and how it can have a positive impact in their lives. Since moving to British Columbia from Saskatchewan one of the great new partnerships I have seen is the FirstBusiness.ca web site coupled with SmallBusiness B.C. that contain wonderful platforms for young First Nations entrepreneurs to access and learn. I would like to applaud all First Nations leaders in the Okanagan and throughout Canada that embrace education and new venture creation as solid courses to follow for the advancement in the First Nations socioeconomic foundation. Joel Young is an entrepreneurship educator, coach and consultant and the Founding Chair, Okanagan Valley Entrepreneurs Society at eagleyoung@shaw.ca
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10-06-09 2:28 PM
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businessmarketing NewMarketing is all ABOUT
STORYTELLing
The Good News for Aboriginal Companies
W
hen you meet someone for the first time, it’s polite to get to know each other. As this is my first article for this brand new magazine, I’ll introduce myself. I hope you’ll write to me, and introduce yourself too. I am a member of the Metis Nation, and I’ve been in the marketing business for more than 25 years. I’ve worked on branding and advertising campaigns for resorts, hotels, tourism, packaged goods, food products, technology, arts & culture… you name a business sector and I’ve probably helped tell people about it. I’ve worked for big companies like General Motors, Telus and Toyota, and small companies too, all over Canada, and around the world. In the last few years I’ve traveled all across Canada speaking about marketing and branding, at aboriginal conferences and seminars. I’ve met a lot of aboriginal business people, working for large and small companies. I’ve talked to First Nations Economic Development Officers involved in massive land development projects, and to artists and food producers looking for ways to sell what they make with their own hands. I’ve learned about the spirit of aboriginal entrepreneurship, for which I am very grateful. These opportunities have been inspiring, and have
helped me understand my own business, and what we need to do to thrive. So how will this column be helpful to you? The business of marketing and advertising is in the midst of a huge transition. New online media and social media are hugely powerful. Traditional media are struggling, but still very important. Behind all of this change is the consumer, a new kind of consumer, one that expects far more from the brands they choose to do business with than ever before. This new consumer wants to spend their money with companies that stand for something important. They expect dialogue, not one-way communication. All of these expectations can be met by telling powerful and engaging stories. And then listening. Stories are the currency of relationships; it’s vital to exchange this currency if you want people to trust you and your brand. That’s why I started this article by telling you some stories about myself, and inviting you to do the same. Consumers today will only choose to do business with your company if they trust you; stories are essential to marketing success. Here’s an example from the real estate marketing world, but the idea behind this can apply to any business. We
By David Allison
recently helped Intracorp, a large real estate development company, write a book about how to buy a new home. The book was packed with insider tips from leading industry experts: architects, construction managers, interior designers, mortgage specialists, lawyers and more. The book is given away for free (get one at www.intracorp.ca) and is backed up by video interviews with the experts, and social media conversations on Twitter. Intracorp has built and sold thousands of homes using primarily traditional media like newspaper advertising, websites and brochures. So why the shift to this storytelling strategy? Using an old-world medium like a book, combined with online videos and Twitter, gives Intracorp the ability to tell stories and share what they know with a very broad range of people. Many of the people they are helping with this free book will never buy a home from them, but many will. By helping people make smart buying decisions, by sharing their stories, they will become better-known as a company that builds great homes. Later, when they start talking about specific homes they have to sell, a lot of people will already be listening; people who trust what they have to say. This marketing focus on storytelling is NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 49
NEW MARKETING IS ALL ABOUT STORYTELLING continued
good news for aboriginal businesses, because aboriginal people are the original storytellers. The values we hold dear: family, cultural preservation, collaboration, community, respect for the environment; these things we have are what the rest of the world is searching for. We just need to find the best ways to use a blend of the new media and the traditional media, and our storytelling skills to tell our stories. If we stay true to who we are, and what we value,
customers will reward us. This column will be about how to do this; how to create compelling marketing campaigns in the new economy. We’ll talk about specific media, great campaigns from aboriginal and non-aboriginal companies, and emerging trends. My goal is to help your company find authentic and meaningful ways to tell your stories to the people you want to reach, and ways to listen to the stories your customers want to tell you. I look forward to sharing what I’ve learned,
and listening to your stories too. David Allison is a member of the Metis Nation, a Director of the Canadian Council for Aboriginal Business, and a partner at Braun/ Allison Inc., the only aboriginal owned real estate and resort marketing campaign company in the world. You can read more of his articles about marketing in BC Business Magazine online at www.bcbusinessonline.ca/onebrand. You can read about his company, and get his free book Sell The Truth, about real estate development marketing at www.braunallison. com. Follow him on Twitter @BAdavid, or email him directly at david@braunallison.com.
BRIEF
newsflash
Aboriginal Banking Institutions want equal Loan Loss Guarantees
A
A decision on whether or not loan provisions made to big commercial banks in Canada will be extended to AFIs rests in the hands of Minister Chuck Strahl.
boriginal Financial Institutions (AFIs) are wondering if the federal government is going to level the playing field by extending the same loan loss provisions offered last year to Canada’s largest financial operations to AFIs. At issue was a $15.5 million loan loss guarantee the federal government made to the big commercial banks and some credit unions to encourage them to lend to the aboriginal community. A report in March by the Aboriginal Peoples Television Network (APTN) highlighted how the same guarantees were not made to AFIs, thereby putting them at an even greater disadvantage to the large commercial banks. Talking to the Winnipeg Free Press, Alan Park, CEO of the Tribal WiChi-Way-Win Capital Corp. called the government’s approach a double standard. Park says his company, originally seeded with federal money, has grown its capital base by a factor of four without any government back up. He is wondering why the much larger banks need it, or why his company shouldn’t receive the same benefit, especially because the large banks have still been ultraconservative in lending to aboriginal businesses. Park says last year they made only five major loans worth $3.2 million. He also claims that his group has a smaller fail rate for loans made and loan guarantees would help his organization give more aboriginal entrepreneurs a chance. Winnipeg Conservative MP Rod Bruinooge, who is also the Conservative caucus chairman, submitted a proposal to Indian and Northern Affairs Minister Chuck Strahl that the loan loss provisions be extended to AFIs. So far there is no word when, or how Minister Strahl will respond except that he “welcomes” all input from other MPs on First Nation’s issues. Photo contributed.
50 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
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businesslaw
Deathand Development - It’s Just
Beginning
the
By Garry F. Benson and Rose Shawlee
T
his being the inaugural issue of Native Business Development Magazine, we thought we should touch on that most final of all matters: death. Death poses more obstacles for an Indian than for most people and even more obstacles for an Indian who is a developer. For this article, Indian refers to individuals recognized as status Indians pursuant to the Indian Act and who live on Reserve. The Law: The Minister of Indian Affairs is given jurisdiction over all matters regarding an Indian’s will and intestacy (when an individual dies without a will), but it is common practice that to the extent that provincial laws do not conflict with the Act they are applicable. Individuals who are not entitled to reside on a reserve are not entitled to acquire, occupy or have a right to possess land in that reserve as a beneficiary of an Indian’s estate. If a person who can’t acquire the land has it given to them, there is essentially a fire sale of that gift to the highest bidder who is entitled to reside on the reserve with the proceeds of that sale given to the beneficiary. Where a sale is unsuccessful, the gift reverts to the Band with payment to the beneficiary at the discretion of the Minister.
The Problems: To recap, assuming an Indian has prepared a will acceptable to the Minister, and the will has been approved by the probate process of the province or territory of the deceased Indian, there may be beneficiaries who are not eligible to inherit the gifts intended for them. While this is at best an inconvenience and at worst a shot between the eyes to estate planning, the consequences are more complex for an Indian developer. A common practice in developing reserve lands is to lease the land, and it is commonly believed that the rental income from that lease will pass to the beneficiary as designated by the will. This doesn’t generally hold true. If the beneficiary of the estate does not qualify to inherit, they are also not qualified to receive rental proceeds of the lease and such lease proceeds revert to the band until the land at issue is disposed of. In short, they don’t get the land and they don’t get the rent. There is a further problem. Most Indian developers carry out their developments in their personal capacity as opposed to a corporation to maintain certain tax benefits. This has many potential consequences. One is that a person who may not have any experience in development
may receive an interest in the development reserve lands because of a “fire sale” discussed above or by the band becoming the owner. Purchasers and bands are like any other categories of people: they vary widely in experience and sophistication. If, at the time of death, the Indian was in the midst of a development, having an unfamiliar and/or inexperienced person holding a key interest in the development property can wreak havoc on the development, if not lead to its collapse. The Solution: Sadly, there is no simple solution that preserves the development, the Indian’s personal tax benefits, and complies with the Act. If you are commencing significant development either as an Indian or with an Indian, consult with your accountant and lawyer to create a development plan that contemplates the possibility of the death of the Indian. Options for an Indian to consider: creating trusts in or outside the Will, holding the lease of lands in a corporation, designating only beneficiaries with suitable experience and eligible to inherit, monetary gifts to beneficiaries not entitled to inherit, and leases by the Indian to the non-Indian to protect the non-Indian developer and the project. If there’s a corporation created to NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 51
DEATH AND DEVELOPMENT continued
hold the Reserve land, a shareholders’ agreement becomes critical. Creative planning to accommodate each developer’s situation can benefit not only the intended beneficiaries, but often determines the success of a development if the Indian dies in the midst of the project.
Pithy Parting Comment: Some of the most beautiful, lucrative, and developable lands are situated on Reserve lands. Don’t shirk from this opportunity, but develop both your project and your estate plan wisely. Important Note: The information contained in this column should not be treated by readers as
legal advice and should not be relied on without detailed legal counsel being sought. Garry F. Benson Q.C. is the founding partner and Rose Shawlee is an associate of Benson Salloum Watts LLP. As part of a well rounded firm based in Westbank, British Columbia, they offer legal services in the areas of Indian law, real estate, business law, and estates and estate planning.
B RI E F
newsflash
The Best Governed Prairie Reserves
T
he Frontier Centre for Public Policy think tank released results of a survey taken among 5,000 Aboriginal Canadians from 78 First Nations’ groups on the prairies for its fourth annual rating of band governance. Band members were asked to evaluate their band’s government; the ratings were constructing using their answers. The report rated each band in five categories: how fair are the votes for leaders; how well do the Band councils look after basic rights; how well does a band conduct its business; how well are the citizens kept informed and how fair and open is the band in economic development and opportunity. Results are based on a score out of 100. The top bands in the report are:
• Ochapowace First Nation (SK) 77.2% • Muscowpetung First Nation (SK) 77% • O’Chiese First Nation (AB) 76% • Saulteaux First Nation (SK) 72.6% • Wahpeton Dakota Nation (SK) 72.2% • Little Pine First Nation (SK) 71.4% • Yellow Quill First Nation (SK) 71.2% • Carry the Kettle First Nation (SK) 71.2% • Paul First Nation (AB) 71.2% • Mosquito, Grizzly Bear’s Head, Lean Man First Nations (SK) 70.8%
According to Joseph Quesnel, author of the annual report not all bands are covered in the study. Some have too few members to be statistically significant, others declined or didn’t 52 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
get their results back by the deadline, but he believes more bands are seeing the survey as a useful tool. “The leaders use it as a gauge of how band feels about their policies.” Initially some bands were hesitant, afraid that the Frontier Centre was either part of government or would turn over results to INAC, but Quesnel offers assurances that is not the case. Quesnel says they work through band councils so that they are never surprised that it is happening. Quesnel stresses the point is to make this a positive thing, to help bands get better in how they function. Participating bands can access all the results and see how they did, but the public releases only list the top 10 bands to emphasize the positive. The bands that don’t do well can be separated by only a tiny margin, so in some cases a bad score can be based on only a few bad answers. In any case, Quesnel says, rankings have spurred some reserves to compete and do better to increase rankings for the next year. On that vein, he says the report released in 2011 will hopefully include some indicators not only of which bands are doing well in governance, but how well they are doing economically and providing for band members.
The best findings: “Elections are clearly an area of strength…87% of respondents said that they believed votes were either “definitely” or “probably” counted fairly in the last election. Independent businesses are dominated, if only barely (51%), by residents who are not on the band council or related to them. The worst findings: Being related to the chief or council was how too many people believed a job was to be had. 22% believed it would guarantee them a job and another 29% felt it would be a help. Band Council Resolutions are definitely used to force people who have displeased the chief or council off reserve according to 13% of respondents. Nearly half of residents (46%) say that personal security, that is their safety, is not good on reserve. On economic plans the 20% who say they can always access band decisions are outweighed by the 23% who say they are never available. More detailed results from the survey can be found online at www.fcpp.org/publication. php/3333.
PEACE HILLS
builds trustACROSS
THE
country
Peace Hills Trust, owned by the Samson Cree Nation of Alberta, was the first aboriginal wholly-owned financial institution in Canada.
F
ounded 30 years ago in Alberta, Peace Hills Trust is established throughout western Canada with branches located in or urban centres, often on reserve land. “We operate like any other bank,” explains Tony Shirt, Assistant Vice President of Corporate Marketing and Business Development. “We are not just a bank for First Nations customers many of our customers are non-First Nations.”“We’ve grown with the success of our customers. As their capacity has grown, we have mirrored that and grown our customer and asset base,” adds Shirt. The company’s head office is in Hobbema, about 100 kilometers south of Edmonton. In the 30 years since the Samson Cree provided the capital to launch the company, it has grown to more than 120 employees, who serve 20,000 customers. According to one of the Samson Cree who did not wish to be named, “There is an intrinsic appreciation and pride in our ownership of Peace Hills Trust. That we are open to everyone is important. I hope this is something our young people can appreciate.” In the beginning days, there was a strong focus on helping to develop First Nations communities. That relationship building has brought a wealth of experience to Peace Hills Trust says Scott Baldwin, Assistant VP of the B.C. Region. “Most of our lenders are quite
FULL FINANCIAL SERVICES
experienced and quite comfortable in dealing with First Nations lending on and off reserve.” In British Columbia, the branch has done off and on reserve lending for commercial projects including hotels, casinos, and shopping centres. “We did a nice shopping centre in Duncan for the Cowichan band, in partnership with another financial institution,” says Baldwin. Baldwin also says, “We have forged alliances with other financial institutions. We can come into a deal, do our own analysis, and while we may not be the lead banker, we do take a share of the risk and the profit.” The rapid economic growth in western Canada has helped the company grow. The next steps are out east. Says Shirt, “We have recently moved into the Maritimes. We do try to build on reserve land; we are interested in supporting local economies on reserve.” A clear advantage Peace Hill Trust brings to building on reserve and serving First Nations is their expertise in the legislative and cultural challenges faced by each reserve. “While many issues are becoming more standardized there is still a lot of variance and challenges in accessing capital. We are able to meet many of those challenges.” In the past year Peace Hills Trust
By Bobbi-Sue Menard
Tony Shirt, Assistant Vice President of Corporate Marketing and Business Development.
expanded their capacity to act as a corporate trust for First Nations. With its very conservative lending policies Peace Hills Trust was able to come through the recent recession relatively unscathed. Shirt credits a strong, independent adjudication process with the smooth sailing. “We are interested in the overall growth of the company on a long term basis, and the attributes and foundational policies which create that growth.” As a corporate citizen, Peace Hills Trust has sponsored a national annual Native Art Contest for the past 27 years. The competition has stringent judging, and attracts hundreds of entries from across Canada. The winning pieces are bought by Peace Hills Trust for its permanent collection. This year’s competition will be held in Kelowna, BC in November. Go to www.peacehills.com/ default.aspx?Page!D=1016 for information on how to enter and to see past winners.
NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 53
P EAC E H I L L S T R UST
article
B RI E F
newsflash
Toolkit for Fair Resource Development on Aboriginal Lands
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few months ago Professor Ginger Gibson and Professor Ciaran O’Faircheallaigh released the IBA Toolkit, which they had co-authored. The Toolkit is an extensive document of more than 200 pages that tries to set out some guidelines for how aboriginals should structure negotiations for resource development. IBA stands for impact and benefit agreements, which is one way of sorting out on paper the pros and cons of any resource development project. There has been no policy or even handed approach to development in the past – it has been done on an ad hoc basis with uneven results. “There is no policy framework that guides resource development on aboriginal land,” says Gibson. “There are thus marked regional differences, depending on a number of things, such as the negotiating strength and unity of the community, the nature of the legal and political context, and the agreements that have been negotiated in the past.” The toolkit was written with mining in mind, but much of the document is applicable to other kinds of resource development from forestry to oil and gas. The document is available free of charge online at www.ibacommunitytoolkit.ca, and contains an introduction, sections on looking at aboriginal legal rights in Canada and abroad, considering the environment, how to prepare for negotiations, budgeting, goal setting, funding, monitoring, penalties, and an all-important section on communication. Without making sure what the goals and responsibilities are, there is little chance for a happy ending.Band leaders are realizing that they cannot rely on luck to get
54 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
good results. The whole negotiating process is so new to both Aboriginals and the resource companies who bring widely different opinions and ideas to each negotiating table. Gibson comments, “There are leaders and laggards in the industry. The leaders are out front making strong relationships based on respect with communities. The laggards simply do not communicate, or if they do, they are trying to split communities and forge unfair deals.”Other chapters cover off dealing with the government, project viability, and getting support from key groups.Funding for the toolkit research and consultation with was provided by the Walter and Gordon Foundation, a charitable foundation in Toronto that is dedicated to developing sound public policies. The toolkit started after a forum in Good Hope, Northwest Territories in 2007 involving 40 stakeholders from the territorial government, industry and aboriginal leaders. James Stauch, VP at the Foundation says,” The key recommendation from the Fort Good Hope forum was to develop a resource for communities negotiating with resource companies.” The toolkit has received an enthusiastic response from people both on and off reserves. Dave Porter, CEO of the BC First Nations Energy and Mining Council says, “We are here today to tell the industry and government that there is a constructive way forward that will bring lasting benefits to First Nations and the
mining industry.” The mining industry is starting to understand that First Nations’ buy in is essential. Says Larry Innes of the Canadian Boreal Initiative, “Simply put, projects which have not reached agreements with First Nations are a greater investor risk.”For Bands in resource development deals or contemplating them, Gibson has one final bit of advice: “This Toolkit is not meant to be read in one sitting. Instead, flip through the table of contents and figure out what stage you are at. Pick and choose, and then dog-ear the most important sections for your community.” She concludes, “The IBA Community Toolkit has to be a living document. For that reason, we are now planning to run regional workshops in mining centres to support communities in their quest to negotiate, build and implement strong, fair and respectful deals.”Photo of IBA Toolkit Cover.
www.antco.bc.ca
~Our Vision ~
“Self reliant Aboriginal people thriving in diverse economies”
BUSINESS LOANS MORTGAGES TRUST AND AGENT AGREEMENTS
ABORIGINAL BUSINESS CANADA PROGRAMS BUSINESS SUPPORT AND ADVISORY SERVICES BUSINESS DEVELOPMENT AND TRAINING Suite 208 West, 345 Yellowhead Hwy. Kamloops, BC V2H 1H1 Ph: 250.828.9770
NATIVE BUSINESS DEVELOPMENT MAGAZINE • JULY 2010 55
FULL FINANCIAL SERVICES COMMERCIAL LENDING LINES OF CREDIT EQUIPMENT FINANCING LONG TERM MORTGAGES
CMHC Residential Mortgages Conventional Residential Mortgages
515 Hwy. 97 South, West Kelowna, BC Fx: 250•769•9082
250•769•9081 56 JULY 2010 • NATIVE BUSINESS DEVELOPMENT MAGAZINE
www.peacehills.com