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New Conservation Model in Maine

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New Conservation Model in Maine by Walter Graff NEW CONSERVATIONand Rob Burbank, MODEL IN MAINE Appalachian Mountain Club Structured Financing that Benefits Communities A new model for conservation in the woods of opportunities to attract new, nature-based servation. In Maine, large tracts of timber- north-central Maine is contributing to the lo- tourism. Success is evident in many recent land were coming on the market, and with cal economy, the environment, and social eq- improvements: local logging crews are being the economics of the pulp and paper indus- uity while supporting forest-products jobs and employed, paper mills are receiving needed try changing rapidly, the state presented a creating new outdoor recreational opportuni- timber, and residents are being employed to golden opportunity. ties for the public. And as it’s being carried out run AMC’s three traditional sporting camps Since the Maine Woods Initiative on nearly 70,000 acres of forestland—truly and maintain roughly 70,000 acres of re- kicked off in 2003, AMC has faced new landscape-level conservation. cently purchased forestland to be kept open challenges, including the need to maintain for recreational use. Eleven new, full-time, more than 150 miles of forest roads on its Threefold Opportunity benefited positions have been created so far, property, manage camps dating to the 19th In Maine’s storied 100-Mile Wilderness in addition to several seasonal jobs. century, and build miles of new hiking and region, the Appalachian Mountain Club The nation’s oldest conservation and skiing trails. At the same time, it has ad- (AMC) is building its Maine Woods Initia- recreation organization, AMC saw in the opted a major focus on sustainable forestry tive, a new approach to land conservation growing demand for backcountry recreation and ecological protection. Roughly half of that combines outdoor recreation, natural- a chance to build on its experience provid- AMC’s Maine Woods property is open to resource protection, sustainable forestry, ing mountain hospitality and hiking-trail timber harvesting, while more than 20,000 and community partnerships to address the stewardship in New Hampshire’s White acres of forest preserves have been designat- region’s economic and ecological needs. Mountains. It began looking for an area big ed to help protect the headwaters of a fish- The initiative’s goals include support- enough to create a new system of lodges and ery for wild brook trout and other sensitive ing forest jobs and creating recreational trails while achieving landscape-level con- ecological areas. 10 Spring 2012 Photograph: Bryan Wetzell Partnering Is Key for the AMC project. “We’re the second- ences to every elementary school, middle Partnerships with town and county leaders, largest practitioner in the country of New school, and high school student in Pisca- local schools, and businesses have been vi- Markets Tax Credits,” he says. “We have a taquis County at least three times over the tal from the start and will continue to be reputation for working in rural communi- course of the student’s school career. because the essence of the project is the ties to help diversify the economy and sup- Local merchants see AMC’s positive marriage of landscape-scale protection with port the natural resource base.” Spies adds impact in their cash registers, as visitors community economic development. In fact, that as part of a mission devoted to “eco- spend a night in a local inn or motel before the scale, scope, and pace of the progress to nomically and environmentally healthy picking up provisions or gassing up their ve- date are attributable in large part to one communities,” CEI supports forestry and hicles and heading out to the lodges. such partnership and the structured financ- ecotourism—two key components of the Mike Boutin, owner of Northwoods ing it provided. Maine Woods Initiative. Outfitters in Greenville, is a local business The nonprofit, Portland-based Coast- The biggest infrastructure endeavor the partner. A popular gathering spot for hik- al Enterprises Inc. (CEI) and its for-profit partners faced was construction of the new ers and skiers on their way to the backcoun- subsidiary, CEI Capital Management LLC, LEED-registered (Leadership in Energy and try lodges, Boutin’s shop runs a shuttle for structured two deals for AMC using New Environmental Design) Gorman Chairback lodge-to-lodge skiers. Markets Tax Credits (NMTC, financing Lodge. More than a dozen local contractors “Since the beginning, AMC has always tools to help spur economic activity in dis- and craftsmen helped build it. Even more made an effort to have a relationship with tressed communities). The tool is attractive workers were added to the payroll to refur- us and work with local businesses to help to a wide array of investors, who benefit bish log cabins at the site, formerly a private them,” said Boutin in a recent issue of AMC from a 39 percent federal income tax credit. Maine sporting camp dating back to the Outdoors. “They bring more people to our The CEI arrangements (one providing 1800s. January 2011 saw the camp open to business and have given us the opportunity a $17 million loan, another providing a $15 the public. to do more guiding for their guests.” million loan) enabled AMC to make quick- The $2.3 million Gorman project is In a landscape nearly one and a half er progress toward project goals, including the third in a series of Maine wilderness times the size of Acadia National Park, with the injection of capital into the local econ- lodges operated for public use by AMC. a strong tradition of jobs tied to forest prod- omy. For example, AMC could move faster AMC also operates Little Lyford Lodge and ucts and year-round outdoor recreation, the to purchase construction materials and to Cabins and Medawisla Wilderness Lodge Maine Woods Initiative is raising the pro- hire local contractors for a lodge based on and Cabins. In winter, it partners with a file of the region as a premier, nature-based “green” principles. fourth-generation family-owned camp and tourism destination. The lodge, near Greenville in the offers lodge-to-lodge cross-country skiing Most critical has been the structured fi- Moosehead Lake region, is a benefit to one opportunities on a 37-mile-long ski trail nancing through New Markets Tax Credits. of the poorest counties in Maine, Pisca- network connecting the four lodges. Half a In the past, notes AMC’s Glabe, “New Mar- taquis County. Piscataquis had the state’s million dollars will be spent on trail-system kets Tax Credits have been very focused on NEW CONSERVATION highest unemployment rate in 2009, at expansion and improvement. And support- urban projects, because it is hard to struc- 12.4 percent, and the second-lowest median ed by a $52 million capital campaign, the ture an economic win in the backcountry.” household income, at $35,144, according Maine Woods Initiative will see a $1 million Fortunately, AMC’s partner knew how to MODEL IN MAINE to 2008 statistics. 1 More than 57 percent to $2 million renovation of Medawisla and make them work, and they have made all Structured Financing that Benefits Communities of the county’s children were eligible for free establishment of a series of wilderness canoe the difference. or reduced-cost school lunches in 2009, the campsites over the next two years. second-highest rate among Maine counties. The “project is probably one of the Bruce Glabe, AMC’s chief financial of- biggest investments in that county in a de- Walter Graff, senior vice president of the Ap- ficer and vice president for operations, is cade,” says Keith Bisson, CEI director of the palachian Mountain Club, leads the Maine grateful for CEI’s ability to provide “more Northern Heritage Development Fund. Woods Initiative. Rob Burbank is AMC’s favorable financing than we could have ob- director of media and public affairs. They are tained through conventional means” and Many Winners based in Gorham, New Hampshire, and can notes that the financing “freed up dollars Despite its long history in Maine, some res- be reached at [email protected] or rbur- that [could] go into the project itself.” In idents questioned AMC’s intentions when [email protected]. 2010 alone AMC spent $4 million in the it kicked off the Maine Woods Initiative. region. According to Glabe, CEI is “attuned Knowing that it must provide value to the Endnote to economic development projects involv- community, AMC is working to ensure that 1 Ann W. Acheson, Poverty in Maine 2010 (Orono, ing forestland and rural areas” and thus its efforts generate local benefits. Maine: University of Maine Margaret Chase Smith makes an especially good partner. In one example, AMC contributed its Policy Center, 2010), 50. See also www.outdoors. CEI describes its New Markets Tax mapmaking expertise to a new recreational org/mwi. Credits underwriting approach as mission- map issued by the local economic develop- oriented and focused on the “3-E Invest- ment council. It has been a sponsor of and This Communities & Banking article is copy- ing Perspective”—Economics, social Equi- partner in the annual 100-Mile Wilderness righted by the Federal Reserve Bank of Boston. ty, and Environment. According to Chief Sled Dog Race, a major spectator event for The views expressed are not necessarily those of the Bank or the Federal Reserve System. Copies Executive Officer Charles J. Spies III, CEI the town of Greenville. And it created the of articles may be downloaded without cost at Capital Management LLC was enthusias- Moosehead Area Schools Project, offering www.bostonfed.org/commdev/c&b/index.htm. tic about underwriting NMTC transactions free or low-cost outdoor learning experi- Communities & Banking 11.
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