FARM FRESH FUNDING

In Business, May-June, 2006, Vol. 28, No. 3, p. 10

A rare example of how a community comes together to protect not only a valuable piece of land from development, but a way of life as well.

Lucy Brehm

SOCIALLY RESPONSIBLE investing is a popular cause these days, but does it really have a direct impact on your community? Often abbreviated SRI, socially responsible investing is a broad term used for the process of selecting investments and financial institutions based on an evaluation of social equity, economic issues, and increasingly, environmental criteria. People who wish to align their finances with their personal values may choose to invest in corporations displaying similar values and supporting causes they personally endorse. Portland, Oregon's Tryon Life Community Farm (TLC Farm), funded in part by ShoreBank Pacific, is a prime example of how SRI can benefit a local community through deposits with community banks.
Preserving green space is a worldwide concern, and Oregon is no exception. The most recent U.S. census report counts Oregon as one of the nation's top 10 fastest growing states, and land is in high demand. Nestled between the edges of Portland and Lake Oswego, Oregon, Tryon Creek State Natural Area occupies prime real estate in Oregon's most populous city and near the state's most affluent suburb. At 645 acres, Tryon Creek State Natural Area is the largest state park located within city limits in the nation. The park offers Portland metropolitan area residents, as well as students from nearby Lewis and Clark Law School, a quick escape from the confines of the city while also providing natural habitat for more than 50 species of birds and many small mammals, including beaver.
Bordering the Tryon Creek State Natural Area are seven privately-owned acres surrounded by public park on three sides. This private property was purchased in 1977 by a couple who had visions of turning the natural setting into a yoga retreat. After converting the old farmhouse and garage into apartments intended for yoga devotees, the dream stalled, and the apartments were inhabited by a series of renters while the owners lived in Seattle. Eventually, the property became home to a group of organic farming and natural building enthusiasts who formed Tryon Life Community Farm, a nonprofit sustainability education and demonstration center. TLC Farm became a steward of the property, protecting the nearby Tryon Creek watershed, and hatching plans to become a model for urban agricultural sustainability. The farm community also opened the site to environmental education visits and workshops.
In 2004, the land owners decided to sell the property, and a developer of high-end homes bought an option agreement (the right to purchase the property within a year). The developers intended to build 23 luxury homes on the land. After receiving an eviction notice, residents of the land and TLC Farm realized they needed to get the community involved and put up a fight to protect this natural jewel. They banded together with the community and approached the developer, who ultimately sold the option agreement to TLC Farm for $125,000 to cover his hard costs. This meant TLC Farm would then have approximately nine months to come up with $1.4 million to purchase the property to place in a land trust.

A LOT OF MONEY FOR A SMALL GROUP OF VOLUNTEERS
That's a lot of money for a small group of volunteers to raise in less than a year! Fortunately, the group shared a common passion, and one resident, Brenna Bell, could lend legal expertise since she happened to be an environmental attorney. Bell was able to help coordinate the legal hoops they'd need to go through, and she and other key TLC Farm members formulated a plan to get the community and City of Portland involved to help make the purchase a reality.
Local bank ShoreBank Pacific was approached by TLC Farm early in the purchase process and played an instrumental role in TLC Farm's success at raising the necessary funds. As the first commercial bank in the U.S. with a commitment to environmentally sustainable community development, ShoreBank Pacific was a logical financial institution for TLC Farm to approach for a loan. As a bank that encourages sustainable practices, ShoreBank Pacific believes that long-term community prosperity goes hand-in-hand with a healthy environment, and TLC Farm embodies this tenet. It was clear from the beginning, however, that this would be no typical loan.
Bell met with Director of Business Banking Randell Leach, who quickly recognized the TLC Farm as a viable way to preserve a natural resource while serving the community at large. Leach encouraged Bell and the TLC Farm to proceed with fundraising efforts with the knowledge that ShoreBank Pacific wanted to be kept in the loop and would do its best to help make the purchase possible.
“Tryon Life Community Farm is a rare example of a community coming together to protect not only a valuable piece of land from development, but a way of life,” said Leach.
TLC Farm formalized itself as a nonprofit entity and members busied themselves with winning community support. Community engagement spiraled out from the Farm's locale, with area neighbors and Friends of Tryon Creek State Park, the nonprofit overseeing educational programs for Tryon Creek State Natural Area, being the first partners. TLC Farm opened its doors to the public two days each week for self-guided tours to learn about the land and the TLC Farm vision. It also encouraged folks to try a hand at urban agriculture by participating in open work parties, and it hosted numerous educational workshops. TLC Farm canvassed the neighborhood, going door-to-door to nearly 700 homes to update people on the Farm's actions and what awaited the property if the TLC Farm's purchase attempt failed. They completed this canvas four times during the year of intense fundraising efforts. As people welcomed them into their homes, TLC Farm welcomed the neighbors in return, hosting picnics and barbecues during the summer and a wine & cheese event during the holiday season.
Once it had the endorsement of its neighbors, TLC Farm reached out to similar Portland organizations, contacting others involved in the sustainability movement and urban agriculture. They educated the general public through information tables at relevant events and by securing the interest of local media. The initial eviction notice for the 15 residents of TLC Farm was enough to pique reporters' interests, and they too were drawn in to the plight of purchasing the seven-acre property. TLC Farm made the most of this interest by regularly contacting these reporters and issuing press releases to keep people informed of the group's progress and goals yet to be achieved. This story resonated with people because of its immediate community impact and tangible goal.
“At a time when the world's looming problems seem so large, Tryon Life Community Farm's goal of integrating nature, agriculture and residences resonates with people,” said Bell. “This is a tangible thing we're doing here, educating the public about ways to live sustainably and nurture the land. Portlanders have really embraced our cause.”
Just as the community began to express its support of TLC Farm, so did the city of Portland, Metro, a regional government entity, and Oregon Parks and Recreation Department. Known to be a progressive city and hotspot for “cultural creatives,” the city recognized that preserving this property adjacent to Tryon Creek State Natural Area would offer important protection for a prominent watershed. Ultimately, these government entities contributed $400,000 to purchase a conservation easement on the land.

FRANTIC RACE TO FINISH LINE
As the January, 2006 deadline loomed, it was truly a frantic race to the finish. Leach and his lending team at ShoreBank Pacific worked through weekends and nearly around the clock to tie up loose ends and help ensure that all of the pieces were in place. The bank loaned TLC Farm $600,000, and this, combined with the government funds, private donations and grants, and other sources, allowed TLC Farm to complete the purchase just as the purchase option agreement was about to expire.
The land is officially held in trust by Oregon Sustainable Agricultural Land Trust, who owns the property and leases it back to TLC Farm.
“Philosophically, we were strong supporters of TLC Farm from the get go,” said Leach. “Our customers expect us to use their deposits to lend to healthy community projects such as TLC Farm. This case was very intricate in terms of financial transaction, and took five to 10 times more work for a loan this size than typical loans. Because there were so many stakeholders, the loan structure changed many times until the 11th hour.”
To date, TLC Farm has hosted a number of educational events and workshops, educating the public as well as students ranging from pre-school to university students, about natural building techniques, gardening and food preservation, permaculture farming, medicinal tinctures, social activism and more. Today the land is home to 15 adults and two children, and the nonprofit includes hundreds of members.
A compelling financial, social and environmental story, TLC Farm is a healthy example of socially responsible community investing and local organizations working together to benefit a common goal.

Tryon Life Community Farm is a 501(c)(3) organization that grows community learning in Portland, Oregon while preserving common green space, restoring native ecosystems, and demonstrating sustainable urban density living.
ShoreBank Pacific is headquartered in Ilwaco, Washington, with additional lending offices in Portland, Oregon and Federal Way, Washington.
Lucy Brehm is vice president and sustainability officer of ShoreBank Pacific. She has a JD from Lewis and Clark Law School in Portland, Oregon and enjoys running and walking in Tryon Creek State Natural Area.

Sidebar:

OTHER EXAMPLES OF COMMUNITY INVESTING AT SHOREBANK PACIFIC

METHOW VALLEY CREAMERY
ShoreBank Pacific has made available funds to allow creation and construction of a new organic creamery in Central Washington. Methow Valley Creamery will be a locally owned, family operated organic dairy farm that will provide fresh, quality products to its customers.
FOOD ALLIANCE
ShoreBank Pacific has made a line of credit available to Food Alliance to support its efforts to build a sustainable food system in the Pacific Northwest. Food Alliance, a nonprofit organization, provides certification of its members throughout the food production and distribution process. This ensures the consumer that they are getting a product that has been produced and processed in a manner that stands up to rigorous environmental and community standards.
BI-O-KLEEN
This Vancouver, Washington company manufactures, packages, and wholesales a variety of environmentally friendly household cleaning products ranging from soy-based toilet cleaners to tile cleaner made from grapefruit seed extract. These products are designed to replace some of the most toxic chemicals in a household with more effective and nontoxic products that leave hands, countertops, carpets, clothes, and even refrigerated vegetables clean and sanitary. Now sold in supermarkets and health food stores across the country, Bi-O-Kleen came to ShoreBank Pacific poised for growth, and received a term loan to purchase new equipment, and a line of credit to help with working capital.
RAINTREE NURSERY, INC.
RNI promotes a triple bottom line approach to the nursery business by maintaining excellent relationships with its customers, employees and the local community. The company is located in rural Morton, Washington, an area that suffers high unemployment and a depressed economy. By providing up to 35 jobs during the peak of the season, the company makes a significant contribution to the local economy. A number of people have been employed by RNI for over 15 years. Customers are very loyal because of the attention paid to customer service and the money back guarantee.
WILDCATCH™
This unique business markets fresh and frozen wild caught seafood, principally salmon and halibut, to grocery stores and specialty health food stores, generating a value added return to the fishers, mostly from Alaska.
ECODEPOSITS AND MORE
As part of its support for healthy community investing, ShoreBank provides an FDIC insured EcoDeposits® account to its customers, as well as EcoCash checking/debit account. Through its commercial loans and cash management program, ShoreBank offers access to bank sustainability and science staff for suggestions.
For more information about ShoreBank Pacific, call 1-877-326-4326, or visit www.shorebankpacific.com.

Copyright 2007, The JG Press, Inc.