SessionSix

ACaseStudy:

TheOsoyoosIndianBandDevelopmentCorporation

DrManleyA.Begay,Jr

16November2019

Part1:Context

Part2:TheStory

Part3:ThePlayers

Part4:LessonsLearned

TheOsoyoosStory

TheOsoyoosIndianBandispartoftheOkanaganFirstNation.

SituatedinoneofCanada’spremieragriculturalandtourismregions,Osoyooshas32,000acreswhichofferopportunitiesinagriculture,eco‐tourism,commercial,industrial,andresidentialdevelopments.

Before1990,theOsoyoosIndianBand(OIB)lookedlikemanyotherIndigenousnations:

Fewcommunity‐ownedbusinesses,littleproductive

economicactivityontheirlands,fewjobs,highunemployment,etc.

Part1:Context

By1995,theBandhadtransformeditssituation.

InFY2006,itsbusinessesearned$14.7million(nowover$20

million),nearlyseventimestheamountofmoneyitreceivedfrom

theCanadiangovernment.

Part1:Context

Today,itsbusinessassetsareworthmorethan$21million.

Asaresult,theBandhasgeneratedmorejobsthanthereareBandmembersavailabletodo

thework– over1,000jobs.

Part1:Context(cont.)

HowDidThisHappen?

Itwasnotallsmoothsailing.Asrecentlyas1991,INACdeclared

OIBinsolvent.

Butovertheyears,OIBhasmadeaseriesofdecisionsandtakenaseriesofactionsthathave

transformeditsowneconomy.

TheOIBeconomywasbasedlargelyonBandOffice

employmentandsomeINAC‐controlledleasingtonon‐Indigenousoperators.

Butchangewasinthewind.

Part2:TheStory(1960sto1980s)

GettingItsFeetWetNewinitiatives– vineyardleases,

winery,golfcourse,Bandtakeoverofcampgroundmanagement,anda

constructioncompany– werethestartofanefforttogrowaproductive

economywiththeBanditselfinthedriver’sseat.

Part2:TheStory(1960sto1980s)(cont.)

EconomicActivity EmploymentinBandofficejobs Newlandleases(Brightswinery,golfcourse,campground,etc.) Vineyardoperationbegins(growinggrapesforAndresWinery) Bandlaunchesaconstructioncompanytobuildhousingontheirland

Part2:TheStory(1960sto1980s)(cont.)

PreparingforSustainableDevelopment

OIBbegantomovemoreaggressivelytotakeoverenterprisesonitslandsandidentifynew

businessopportunities.

Moreimportantly,andwithassistancefromINAC,itbegantoinvestinbuildingfinancialmanagementskillandcapacityandasharedcommunityvisionofthefutureitwantedto

create.

Part2:TheStory(mid1980stomid1990s)

EconomicActivity Strategicvisioning Tookovermanagementofgolfcourse Tookovertaxationofnon‐Indigenousleasesandbusinesses Formedeconomicdevelopmentcommittee Investedinskillsdevelopment Jointrealestateventurefailed,buttaughtgoodlessons

Part2:TheStory(mid1980stomid1990s)(cont.)

ManagingChallenge:NewStructuresandOrganizations

OIBcontinuedtoemphasizebusinessdevelopmentandenternewbusinesses.ButmostofitsbusinesseswereoperatedasdepartmentsofBandgovernment.

TheirbudgetswerepartoftheBandbudget.

Itwasdifficulttodistinguishfundedincomefromself‐generatedrevenueortokeepaclearfocusonbusiness

profits.

Aneworganizationalstructurewasneeded.

Part2:TheStory(mid‐1990stotoday)

TheBirthofOIBDCandtheGoalofSelf‐Sufficiency

In1998theBandreplaceditscommitteeoverseeingeconomicdevelopmentwith

theOsoyoosIndianBandDevelopmentCorporation(OIBDC),awhollyownedcorporationdesignedto

manageitsbusinesseswithaclearfocusonperformanceandprofits.

Thecorporation’sfinancesandmanagementareseparatefromOIBadministration.

Part2:TheStory(mid‐1990stotoday)

• Nk’MipCanyonDesertGolfCourse

• Nk’MipCampgroundandRVPark

• Nk’MipVineyards• Nk’MipConstruction• OsoyoosIndianBandHoldings

• Nk’MipConvenienceStore

• SpiritRidgeVineyardResortandSpa

• SonoraDunesGolfCourse

• OliverReadi‐Mix• Nk’MipCellars• Nk’MipDesertCulturalCenter…

Part2:TheStory(mid‐1990stotoday)

AnExplosionofEnterprises

…andmorebusinesses…

OsoyoosIndianBandDevelopmentCorporation

NIK’MIP

ConstructionVineyards

CellarsDaycare

OliverRedi‐MixSenkulmenBusinessPark

GasBar&ConvenienceStoresCampground&RVParkDesertCulturalCentreCanyonDesertResort

MountBaldySkiCorporationSonoraDunesGolfCourse

HoldingCorporationCanyonDesertGolfCourseGolfCourse

ConferenceCentreSpiritRidgeVineyardResort&Spa

NK’MIPVINEYARDS&CELLARS

NorthAmerica’sfirstAboriginalownedandoperatedwinery.

Nk’MipVineyardsisgrowingqualityfruitforawardwinningwines.OneofthelargestvineyardacreagesintheOkanaganValleywithover300acresofprimeviniferathatwerefirstplantedin1968.Varietalsinclude:CabernetSauvignon,Merlot,PinotNoir,PinotBlanc,PinotGris,CabernetFranc,SauvignonBlanc,andChardonnay.

Part3:

ThePlayers

“IproudlyintroducetheOsoyoosIndianBandDevelopmentCorporationanditsbusinesses.Visitourbusinessesandjoinusinstrengtheningtheeconomyandlifestyle

oftheSouthOkanagan.”

ChiefClarenceLouie,CEO

Part3:ThePlayers

Part3:ThePlayers(current)

ChiefandCouncilandCEO

Councillor–VeronicaMcGinnis

Councillor–NathanMcGinnis

Councillor–LeonaBapitise Councillor–

JustinHall

Councillor–SammyJoLouie

AWARDSJanuary2003 — ChiefClarenceLouielisted asoneofMacLean’sMagazine’s ”Top50CanadianstoWatch”.2002 AboriginalTourismBCawardedChiefLouiethe“InspirationalLeadershipAward”.2001—ChiefLouiewasappointedtotheAboriginalBusinessCanadaBoardandmostrecentlywasappointedViceChairofthisBoard.2000 — ClarencewaschosentojointheGovernorGeneralofCanadainthe2000leadershiptour.2000— theAdvancementofNativeDevelopmentOfficers(CANDO)namedChiefLouiethe“EconomicDeveloperoftheYear”.1999 — hereceivedtheAboriginalBusinessLeaderAward fromAllNationsTrustandDevelopmentCorporation.

ChiefLouie’seffortshavebeenwidelyrecognizedinCanadaandtheUnited

States.

AWARDS(cont.)December2011—ChiefLouiewasarecipientofthe2011BCAboriginalBusinessAwardforIndividualAchievementDecember2010—ChiefClarenceLouiewasnamedoneoftworecipientsofthe2011AboriginalBusinessHallofFame inTorontofromtheCanadianCouncilforAboriginalBusiness2008—ChiefClarenceLouiereceivedtheErnst&YoungawardforEntrepreneuroftheYearJune2006— ChiefLouiewaspresentedwiththeOrderofBritishColumbia,theprovince’shighesthonorforoutstandingachievement.April2004— theNationalAboriginalAchievementFoundationpresentedClarencewiththeawardfor“BusinessandCommunityDevelopment”.TheNationalAboriginalAchievementAwards representthehighesthonortheAboriginalCommunitybestowsuponitsownachievers.2003— theUSDepartmentofStateselectedClarenceas1of6FirstNationrepresentativestoparticipateina2‐weektour ofsuccessfulAmericanIndiantribes.

ChiefLouie’seffortshavebeenwidely

recognizedinCanadaandtheUnitedStates.

Whatarethemostimportanteventsinthisstory?

Aretheytheonesthatgetthemostpublicity?

Whendidtheimportantworkgetdone?

Part4:LessonsLearned

KeyEvents• AgradualshifttowardmanagingBand’sownresources

• Majorinvestmentsinimprovingfinancialmanagementskillsandsystems

• Top‐qualityoutsideadviceandconsultantswithprovensuccessinbusiness

• Avisioningexercisethatwoncommunitysupportforanentrepreneurialstrategytoimprovecommunitywelfare

• Financingbyleveraginglandassets• TheorganizationalshifttoOIBDC• Hiringfull‐time,experiencedCOOandCFO

Part4:LessonsLearned

WhatDidtheCreationofOIBDCAccomplish?

• RemovedbusinessesfromOIB’sadministrativestructure

• Gaveeachbusinessaseparatefinancialstructure,facilitatingtracking,accountability,transparency

• Gainedbettercontrolovermoneythroughbudget‐basedmanagementforeachbusiness

• MadeiteasierforoutsideinvestorstointeractwithOIB

• Helpedkeepfocusonprofits• Helpedinsulatebusinessfrompoliticalinterference

Part4:LessonsLearned

SomeKeystoOIB’sSuccess?

• TheStructureofGovernance– Checksandbalances– Aneffectivebureaucracy– TheorganizationofOIBDC– Clearvisionandmission

Part4:LessonsLearned

• Leadership– Vision– LongevityofChiefandCouncil– Councilwillingnesstotakeinformedrisks– Integrity

OSOYOOSINDIANBANDDEVELOPMENTCORPORATIONVisionStatement

Toachieveself‐reliancethrougheconomicdevelopmentandtopreservetheFirstNationculturethroughthecreationofjobs

onourlandsforfuturegenerations.

MissionStatementTheOsoyoosIndianBandiscommittedtobeoneofthemajoreconomicgeneratorsintheSouth OkanaganbyincreasingitsSelf‐GeneratedRevenueby50%to27‐30%millionperyear,

whilefurtherfocusingoncapacitybuildingintheDevelopmentCorporationandgeneralBand.TheOsoyoosIndianBandwillachievethisbybeingentrepreneurial,prudentinvestors,educators,andmentorstoitsmembershipoftheOsoyoos

IndianBandCommunityandBusinessCommunity,whilebeingviewedasprofessionalpractitioners,whoaregoodbusiness

peopleandhardworking.

PROPERTYTAXATION

In2001theChiefandCounciloftheOsoyoosIndianBand(OIB)enactedtaxjurisdictionoverOIBreservelandstherebytakinganimportantsteptowardsself‐reliance.In2006theFirstNationStatisticalManagementActwaspassedinParliament,thisFederallegislationallowstheFirstNationtobecometaxingauthorityforpropertyonReserve.ThisalsoallowstheOsoyoosIndianBandtoborrowfromissuingdebenturesintheopenfinancialmarketforpurposesofInfrastructuredevelopmentforsocialandeconomicdevelopmentneeds.

OIB’staxationdepartmentisresponsibleforthecollectionofpropertytaxesfromleasedlandsoccupiedbynon‐bandmembers.Taxrevenueisusedtopayfortheservicesprovidedtotheresidentsoncommercialproperties,suchasfireprotection,water&sewerinfrastructure,androadmaintenance.

ContributionsofQualityManagementtoOIB’sSuccess?

Part4:LessonsLearned

• Strategicalignmentwithoverallgoals

• Soundfinancialpractices

• Duediligenceandcarefulplanning

• Strategicuseofprofits

• Anunrestrictedsearchforexpertise

• ProfessionalEmployeerelations

• Willingnesstotakerisks

• Marketingandbranding

• Smartfinancing

CommunityRelationshipsatOIB

• Communityeducation• Gettingcommunityinput• Keepingcommunityinformedofbusinessfactsandfigures

• Linkingcitizenbenefitstobusinessperformance

• Engagementasequalswiththenon‐Indigenouscommunity

Part4:LessonsLearned

ButItNeverEnds…

OngoingChallengesatOIB

• Thebusiness‐politicsmixatbothcouncilandmanagementlevels

• Thechallengeofleadershipsuccession• Thechallengeofgrowingmanagers• Attitudesandentitlement

Part4:LessonsLearned

RecentBusinessActivitiesOIBHOLDINGSCORPORATION

(LandLeases)TheOsoyoosIndianBandownsover

32,000acresofsomeofthemostdesirableurbanindustrialcommerciallandinthe

SouthOkanagan.Corporations,entrepreneursandBandownedbusinessescapitalizeontheeconomicdevelopmentpotential.Establishedleasesinclude:

VincorInternational,SpiritRidgeVineyardResortandSpa,SonoraDunesGolfCourse,CherryGroveModularHomePark;aswellasagriculturalleasesinexcessof1,000acres,representingover20%ofthegrapeproductioninBC:VincorInternational

(Winery),MissionHillWinery,BurrowingOwlVineyards.

NK’MIPCORNER

BritishColumbia’slargestgasstation

andconveniencestoreownedandoperatedbytheOsoyoosIndian

Band.

CANYONDESERTRESORTAcommunityunlikeanyother,CanyonDesertResortwillbethefirstfullyintegrateddestinationresortintheOliverarea,with450residences,villasandsuites.Asafivephaseproject,thisyear‐roundvacationspotwillbebuiltaround

theexisting18‐holeNk’MipCanyonDesertGolfCourseand

willincludeBeachfrontResidences,GolfResidences,BeachLodgesandGolfLodges.ThesecondphaseoftheprojectwillincludetheCanyonDesert

Inn,afull‐servicesuiteshotelwithconferencefacilities,pool,spa,

restaurantandwinebar.

OsoyoosIndianBandwinsbidforfirstprovincialjailonreservelandMacleans.ca

PostedonSeptember17,2013byadmin

byaanationtalkonSeptember16,2013ChiefwantsmorejobstrainingforAboriginalinmates

September16,2013

In2007,ChiefClarenceLouie,theno‐nonsenseleaderofBritishColumbia’sOsoyoosIndianBand,wasappointedtoafive‐personfederalpanelreviewingtheoperationsoftheCorrectionalServiceofCanada.Therewasmuchthattroubledhim,ashetouredfederalpenitentiaries.Hewasdistressed,buthardlysurprised,bytheoverrepresentationofFirstNationsandotherAboriginaloffendersinprison.MostanyonefromaFirstNationscommunityhasafriendorrelativewhohasdonejailtime,hesaidinaninterview.Butwhatfrustratedhim,inthatcontext,wasthemushymorassofwell‐meaning“Aboriginal”programstohealandempower,ortofindone’sinnerwarrior.

“That’swhatpissedmeoff,whenIsawtheprogrammingtheyweredoing:sweathouse,sweathouse,sweathouse,allthathealingandculturalstuff,”hesays.“There’snothingwrongwithspiritualitytoadegree,buttheyweredoingtoomuchofitandnotenoughemploymentandtraining,likeweldersorcarpentersorelectricians.IwanttoseeFirstNationsprogramsbasedaroundjobs.”

Thestudywasnotedandfiledinthegrandtraditionoftaskforcereports.ButLouiehastakenhiscaseforreformagiantstepfurther.Heandthe500‐memberbandhavegoneintotheprisonbusiness.Thebandbeatoutseveralcontenderstowinprovincialapprovaltolocateanew378‐cellOkanaganCorrectionalCentreonitsreservelands.The$200‐millionprojectwillgeneratesome500directand500indirectjobs,onceconstructionbeginsnextyear.Thehigh‐securityprison,expectedtoopenin2016,willemploy240staffandcreatemanymorespinoffjobs.

“Rulesaremoreimportantthanresources”

AFirstNationwithsoundstructuresandgoodrulesof

governanceandfewresourceswilldobetter,inthelongrun,thanaFirstNationwithlotsofresourcesbutanineffectiveorincompetent

governancesystem.

“Economicdevelopmentisfirstandforemostapolitical

problem”

Untilthepoliticalchallengeofgovernanceissolved,economic

assetsandresourcesareunlikelytopayoff.

Inshort,botheconomicandcommunitydevelopmentarea

governance challenges.

TheTaskisNation‐Building