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Maskwacis Cree Economic Leakage Study

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Maskwacis Cree Economic Leakage Study Maskwacis Cree Economic Leakage Study Reversing Economic Leakage Maskwacis Cree • Part of the Plains Cree Nation (Nēhiyaw) one of the largest land mass Indigenous groups in the World • Ermineskin Cree Nation is part of the Maskwacis Cree located in Central Alberta 75 Kilometres southeast of the City of Edmonton Chief Bobtail • Chief Bobtail signed an adhesion to Treaty No. 6 in 1877 with Her Majesty the Queen of Great Britain and Ireland at Blackfoot Crossing on behalf of the Maskwacis Cree • The Treaty defines our relationship with Canada Ermineskin Cree Nation • The Ermineskin Reserve was formally established in 1885 with other Reserves for the Maskwacis Cree (formerly referred to as Hobbema) • Today the Maskwacis Cree are made up of the Ermineskin, Samson, Louis Bull and Montana Nations Pigeon Lake Reserve – Maskwacis In 1896 the Pigeon Lake Indian Reserve was formally established for the Maskwacis Cree. This Indian Reserve is now held collectively by Ermineskin, Samson, Louis Bull and Montana Nations. MILLIONS - 0.01 * 1,000,000,000 0.005 0.015 0.025 0.035 0.045 0.01 0.02 0.03 0.04 0.05 1960 0 1960 Revenue Royalty Ermineskin 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 YEARS 1986 1987 1988 4 Million $50 in 198 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 $ Zero 6 201 2012 2013 2014 2015 2016 Ermineskin Economic Development In those years, Tribal Maskwacis Cree had Leadership had limited tremendous economic experience and leakage during the time capacity Maskwacis Cree Leakage Study In 2013, Samson, Ermineskin and Montana Cree Nations retained a consultant to conduct research to grasp the current level of economic leakage as well as opportunities for business attraction and economic development in our shared territories Purpose of the Project • Identify opportunities to reverse economic leakage • Identify what is spent in neighbouring economies • Strategies on how to increase spending locally • Identify opportunities to increase economi c-inflows Definition of Economic Leakage Economic Leakage is the money that flows out of the Maskwacis Cree Four Nations through Citizen expenditures on household goods and services in communities other than Maskwacis Reversing Economic Leakage Reversing Economic Leakage requires the establishment of desired businesses in Maskwacis that will result in an inflow of money to Maskwacis from Citizens and our regional neighbours $60,000,000 Is invested into neighboring economies each year Economic Leakage Forecast 2047 100 80 60 40 20 0 2017 2027 2037 2047 Potential for $90,000,000 invested into neighboring economies by the year 2047 Respondent Expenditures Tobacco 3% Groceries Pharmacy 21% 4% Shoes 5% Gifts Household 8% 11% Technology 8% Clothing Eating Out Fuel 11% 9% 8% Where Respondents Spend their Money Neighbouring Other Location Nation Online Ponoka Urban Centre Wetaskiwin On Reserve Highlights of the Study • 306 surveys were completed • 101 by Montana Cree Nation Citizens • 99 by Ermineskin Cree Nation Citizens • 106 by Samson Cree Nation Citizens Highlights of the Study • 51% of respondents were male, 49% female • Mean number of people in household was 5.2 people • 78% earned less than $24,999 • 44% of respondents did not own a vehicle Highlights generated for Community Improvement • Hotel/Casino/Conference Centre • Farmers Market • Recreational Opportunities • Arts and Crafts and Cultural Centre • Trade School • Outlet Mall and Golf Course Investment Preferences 50% Infrastructure, i.e. roads and 31% New Buildings to attract new improved recreational facilities businesses Highlights generated for Business Development • Fast Food Place • Hardware Store • Car Related Services • Coffee Shop • Discount store such as Value Village • Cell phone / Electronics store Highlights generated for Business Development • Movie Theatre • Nails / Hair Salon • Bakery • Pharmacy Economic Potential of our Nations • Job Creation • Recreational Attractions • Infrastructure Revitalization • Community Development Conclusions • There is $60,000,000 dollars identified as reversible economic leakage • Respondents provided opportunities for Nation Owned Enterprises and Entrepreneurs • Residents want improved community infrastructure and employment opportunities Recommendations We can improve access to the Business Services available to entrepreneurs • Business Link • Alberta Indian Investment Corporation • Status Entrepreneurs Assistance Program • Futraprenuer Recommendations • Improve numbers of entrepreneurs and business mined people • Encourage our youth to take business programs – NGCI Business Award Program • More MBA’s, BBA’s, CA’s, etc… 25 year Community Vision • Share Comprehensive Community Planning with a 25 year economy driven vision • Improved public recreation facilities and attract local, regional and national events • Improved family friendly parks and walking trails Balancing Business, Politics and Building Sustainability Ermineskin in 2013 • 8- 10 Existing Businesses • Organizational deficiencies • Leadership decided which businesses to invest in • Subsidized entities • Buildings needing modernization Consolidated 5 year Financial Review 2008 – 2012 Consolidated Net Loss over 5 year period = (XX Dollars) Ermineskin 2013-2014 • Leadership make key decision to separate business and politics at a Strategic Planning session • Seek and receive business consultants proposals to assist Leadership separate business and politics Proposed Undertaking 1. Undertake an Organizational, Operational and Financial review of the existing businesses and economic development activities of the community to determine financial viability and make recommendations for change 1. Create an Overall Corporate Structure that is tax efficient, operationally effective and “separates business from politics” 1. Develop a set of Business Policies, Procedures and Corporate Governance Standards to guide the shareholders, directors and senior officers Proposed Undertaking 4. Undertake a Regional Assessment of the Surrounding Area to determine who is working in your back yard and assess their human resource needs now and in the future and align to your Human Resource Development Strategy 5. Formulate a Comprehensive Business & Economic Development Strategy 6. Develop an Industry and Institutional Partnership Strategy 7. Develop a Transition Plan and Implement Strategies Balancing Business Balancing Business ECN and NGCI signed a Relationship Agreement were ECN would contribute $XX number of dollars per year for 5 years ECN sign Property Management Agreement so NGCI can manage on ECN behalf ECN sign Finance to share financial information Developing an MOU with Lands Developing an MOU with Housing Balancing Politics Tribal Leadership support recommendations the NGCI Board put forth, thus NGCI is able to play the role of change agent Tribal Leadership support our operations and do not interfere with the day to day management, thus are able to focus on long term strategy Quarterly Advisory Meetings are held to review financial performance, Operations, New Projects updates Building ETEL Sustainability Gift Shop Cafe' Mall Management Fee Defined • Developing Revenue • Business and Marketing Growth Strategies plan Development • Human Resource • Operational, Legal and Management Financial Management • Strategic Plan • Research and Development Implementation • Project Management • Joint Venture’s, Start ups and Acquisitions Building Sustainability 2013/14 2014/15 2015/16 2016/17 2017/18 Seed Money NGCI Revenue NGCI Wage Contribution - Company removed from NGCI profile during the fiscal year 2013/14 Capturing Leakage 10,500,000 9,000,000 8,100,000 7,200,000 6,300,000 2013/14 2014/15 2015/16 2016/17 2017/18 Capital Infrastructure Revitalizing our Business Restored the canopy and is Core now lit up bright during the nights Restored an aging asset and that is now the numb Renovating two business er1 fuel station in our regi locations in the Maskwacis on Mall Restoring pavement at our Restoring an aging pylon sign high traffic location Neyaskweyahk Group of Companies Inc. What does the future look like? Rebuilding Economy ISO Certification 9001 Farming Operations Partnership Large scale utility solar park and energy storage system Capturing leakage through support and development of small business Diversifying investment portfolio to include off reserve business opportunities Fostering Industry and Institutional Partnerships Youth Development and Succession Planning Nation Building Resources Harvard Project on American Indian Economic Development Banff Centre’s Best Practices on Indigenous Business and Economic Development Native Nations Institute online short courses Indigenous Governance Database Simon Fraser University Executive MBA in Aboriginal Business and Leadership Neyaskweyahk Group of Companies Inc. Balancing Business, Politics and Building Sustainability .
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