Tzeachten First Nation is open for business
Many Canadians hold the misconception that First Nations are against any form of development or resource extraction within their traditional territories. But the truth is First Nations are very cognizant of the bigger picture and forward thinking in terms of sustainable development.
The Supreme Court of Canada has ruled that First Nations with unextinguished aboriginal title and rights, including treaty rights, must be consulted and accommodated if their lands and resources are to be impacted by proposed development. For First Nations, economic development must be both environmentally sound and sustainable.
Tzeachten ( chee- ack- ten) First Nation, in Chilliwack, is one of the shining examples of First Nations economic development success. Capitalizing on their premium location, Tzeachten has created a respectable real estate empire. The Vedder Crossing Plaza, developed by Tzeachten in 1996, is now home to such major retail chains as Save- On- Foods, Tim Hortons, Royal Bank, Panago Pizza, Booster Juice and other local businesses.
A First Nations Certificate of Possession ( CP) holder, supported by Tzeachten First Nation, entered the residential real- estate market in 2004 with the development of Halcyon Meadows, an adult- oriented gated community overlooking Mount Cheam. Analysts originally predicted it would take seven years for the 224 single- family detached units to sell out but only took Tzeachten two years. This was the beginning of the real estate boom for those who held CPs in Tzeachten, which accounts for approximately 90 per cent of the reserve land. These developments earn sustainable revenue for the First Nation and contribute greatly to the larger economy.
Mark Perry, a Vancouver realtor and executive director of the Englewood development, speaks highly of Tzeachten. Perry was recently quoted in the Chilliwack Progress: “I cannot overemphasize how harmonious the working relationship has been with Tzeachten. They have been incredible people to do business with.”
Such high praise from a respected businessman should dispel some of the myths and negative attitudes regarding First Nations economic development. Tzeachten continues to boom with the construction of Englewood Courtyard, a five- storey, woodframed, 156- unit premium condominium, in partnership with Perry.
Being certified for their financial administration by the First Nations Financial Management Board in accordance with international standards, sends a strong signal to investors that Tzeachten’s fiscal management is sound.
In addition to third- party validation of their financial administration systems, Tzeachten is now able to access below- prime financing from the First Nations Finance Authority ( FNFA). The FNFA functions much like a provincial Treasury Board and is modelled after the Municipal Finance Authority of British Columbia. FNFA president and CEO, Ernie Daniels explains it best: “One of the benefits of borrowing through the FNFA for First Nation communities is access to fixed interest rates, over longer amortization terms, up to 30 years, within a pooled borrowing environment. This results in a major reduction in their annual debt service requirements.”
Financing through the FNFA has allowed Tzeachten to break ground on more projects including their Sportsfield Multipurpose Building and sevenunit townhouse complex. According to Chief Glenda Campbell: “What we currently pay out to debt service a $ 1 million loan will leverage almost $ 3 million once refinanced, which makes it that much more affordable for us to complete the additional projects we have targeted this year.”
While many will see Tzeachten as the exception rather than the rule, the fact remains that great things become possible when the First Nations community and the Canadian business community get on the same page.