Potential for prosperity seen in land development

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Crucial elements are falling into place for Aboriginal communities to develop their land, according to delegates at the Aboriginal Real Estate and Resort Development conference, which took place on May 16 and 17 in Vancouver.

Although separate tourism and real estate conferences have been held for years, this year marks the first time the two aspects were combined in a comprehensive series of talks-complete with case studies-on the enormous potential for property development on First Nations land.

"It's starting to make more sense to integrate the two because we've seen a demographic trend of baby boomers wishing to buy real estate in a resort type of surrounding," explained Calvin Helin, CEO of the Native Investment and Trade Association, which organized the conference.

The event dealt with issues germane to today's real estate investment environment, including a shift in the attitude towards capitalizing on Aboriginal land.

"It's pretty apparent that Aboriginal people are going from grievance to development mode," said Helin. "Non-Aboriginals are also looking for opportunities to develop in some of the best land in Canada."

Another contributing factor is many First Nations' desire to break away from the control of the Department of Indian and Northern Affairs. "They're not business-friendly," said Osoyoos Indian Band Chief Clarence Louie, who shared with conference participants his experience heading the development of a golf course, vineyard and camp resort on the band's property.

"The archaic and chaotic processes they make you go through scares away investment," Louie added. "The procedures are cumbersome, costly and cause delays."

Despite the obstacles, Chief Louie said land development can create jobs and a steady income for band members, and with proper management, ensure the livelihood of the band.

"The majority of our members are hard-working people who want proper social programs and infrastructure," Louie added. "That means you have to develop some of the land either on your own or to lease it out."

Both Louie and Helin acknowledged that there is still some resistance towards developing ancestral land, but they believe that with good communication and proper management, individual nations can reach a comfortable balance where the majority of the members' needs are being met.

"The biggest problem with our community is a lack of capacity," Helin said. "Real estate development projects provide an opportunity for Aboriginal people to be properly trained and to manage their own land and taxation systems, to provide municipal-style services, and be on the delivery end of the management for tourism."

Waves of land development are already underway in some British Columbia First Nations. The Kamloops Indian Band now has a half-billion-dollar project under way where 2,000 residential units will be build on its land, based on a 99-year lease. The Burrard First Nation has already finished building 99 townhouses, with another 400 still under construction.

In both cases, band members are hired during construction; upon completion, municipal services and on-going resort management also create a significant number of jobs.

Helin said the real estate market is demanding exactly what the Aboriginal lands have to offer. "In today's more educated and wealthier baby-boomer market, you're selling a lifestyle experience," he explained.

"They're looking for an environmentally friendly development and a recreation experience-somewhere they can go boating, fishing and golfing. And they're prepared to spend their money where they see value."

When the right elements come together, some projects can even outperform the local development average.

"What we've learned is that a given a good location, certainty of the 99-year lease and good quality, the projects on Indian lands can sell at twice the rate of non-Indian developments," said Helin.

Because British Columbia's housing market is still going strong despie an economic downturn in other industries and because the province has a reputation as a premiere retirement destination, Aboriginal real estate and resort development holds great promise and presents a viable alternative for continued economic development.