SECOND AND THIRD BOTTOM LINE IMPACTS:

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SECOND AND THIRD BOTTOM LINE IMPACTS
Measuring Results
Deborah J. La FranchiCEO Strategic Development
Solutions
June 10, 2008

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Double and Triple Bottom Line Funds

• 1st Bottom Line Risk-adjusted market-rate
  returns
• 2nd Bottom Line Positive social and community
  benefits (low-income community)
• 3rd Bottom Line Positive environmental impacts

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Funds Created by SDS and Economic Innovation
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Impact Reporting

• No Standard
• Challenges data collection
• Upfront Design collect upfront
• Reporting that Works for Investors
• Reporting that is Feasible for Developers /
  Fund Managers

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Second and Third Bottom LineImpact Report

• Goal Standardized reporting tool ease of use
  (investors) capture relevant data
• Process Compared 6 different reports reviewed
  Gary Pivos Delphi Method paper talking with
  investors
• Input Pension funds, banks, insurance
  companies, foundation endowments, RPI (David
  Wood/Gary Pivo), ICIC
• Current Status Template under development
  sample constructed
• Completion End of Summer
• Next Steps Finalize and share with industry

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One-Page Scorecard
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Sections

• Project Description
• Investment Overview
• Project and Area Profile
• Second Bottom Line Social and Economic Impacts
• Third Bottom Line Environmental Impacts

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Project Description
TBL World Headquarters
The TBL World Headquarters Project will
rehabilitate the historic four-story Hudson
Building, as well as construct a new building
extension and parking lot on an adjacent site.
This 38 million project includes 7.5 million in
National New Markets Fund tax credits to develop
over 80,000 sq. ft. of space to house the
administrative office of the global headquarters
for TBL World, to support its
humanitarian work addressing global poverty,
hunger, and conflict resolution in over 35
developing countries world-wide. The project
will also house TBL Worlds new interactive
public Action Center, community conference
facilities, and TBL World Northwests Small
Business Development Center. The facility will
also serve as the new headquarters of the Lemming
Foundation. The Action Center will serve as a
regional educational center and resource for area
schools and serve as a tourist attraction for
outside visitors, and the business development
center will assist low-income entrepreneurs who
want to create or expand small businesses. The
project also creates significant environmental
impacts through its LEED Gold Certified design,
though it is striving to achieve a platinum
designation upon completion.
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Investment Overview
INVESTMENT OVERVIEW INVESTMENT OVERVIEW INVESTMENT OVERVIEW
Project Timeframe Start Date 3/2008 End Date Fall 2009 Start Date 3/2008 End Date Fall 2009
Investment Date March 19, 2008 March 19, 2008
Asset Class Mixed-Use Office, Cultural Learning Center Mixed-Use Office, Cultural Learning Center
Type of Development Historic Rehab New Construction Historic Rehab New Construction
Developed Square Feet 80,000 (4-story facility) 80,000 (4-story facility)
Total Development Cost 39,000,000 39,000,000
NNMF Investment 7,500,000 7,500,000
Financing Sources Other Federal NMTCs 12.0MM
Federal Historic Tax Credits 3.3MM
Private Grants 2.9MM
Debt 13.3MM
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Project and Area Profile
PROJECT AND AREA PROFILE PROJECT AND AREA PROFILE
Location Portland, Oregon
Area Downtown (Old Town/Chinatown)
Site Status Underutilized 75 vacant
Previous Use/Operations Retail/Shopping Center Parking Lot
Degree of Blight Moderate to Significant Blight
Unemployment Rate 18
Area Median Income 68
Poverty Rate 45
Special Economic Zones Downtown Waterfront Urban
Renewal Area SBA HUB Zone
Barriers to Development High crime area historic building
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Second Bottom Line Social and Economic Impacts
2nd Bottom Line Social and Economic Impacts 2nd Bottom Line Social and Economic Impacts
Economic Output for Construction 23.24MM
Economic Output for Operations 10.96MM annually
Employee Compensation for Construction 6.10MM
Employee Compensation for Operations 6.61MM annually
Construction Tax Revenue 3.46MM
Operation Tax Revenue 2.28MM annually
Taxpayer Break Even 11MM/yr 5 (cumulative)
20 Year Cumulative Taxes 45MM
Taxpayer 20 Year ROI 310
Taxpayer Internal Rate of Return 18
Operating savings and program funds (X)
Consolidates business infrastructure
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Second Bottom Line Social and Economic Impacts,
Continued
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Second Bottom Line Social and Economic Impacts,
Continued
2nd Bottom Line Social and Economic Impacts
Jobs 420 Total (220 Construction 200 Permanent- 150 Existing/50New)
Creates new tourist attraction
Bolster foot traffic to support area businesses
Rehabilitates a historic property / Blight eradication
Outreaching to Women- and Minority-Owned Subcontractors
Increases regions nonprofit infrastructure
Transit-oriented development located on light-rail path
Working with Local WIB to hire low income workers
Finances real estate with flexible leases/rent
Retirement Benefits X
Health Insurance X
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Third Bottom Line Environmental Impacts
3rd Bottom Line Environmental Impacts 3rd Bottom Line Environmental Impacts
LEED Gold Certified (targeting Platinum) LEED Gold Certified (targeting Platinum)
CO2 Emissions reduction X CO2 Emissions reduction X
Energy 37 reduction in overall energy usage Energy 37 reduction in overall energy usage
Rooftop solar panels
Green roof installation
Mechanical system 50 more efficient than code
Energy efficient glass
Energy saving light fixtures
Potable water usage reduction 40 reduction in overall usage Potable water usage reduction 40 reduction in overall usage
Low-flow fixtures
Storm water filtration and management
Water resistant landscaping
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Third Bottom Line Environmental Impacts,
Continued
3rd Bottom Line Environmental Impacts 3rd Bottom Line Environmental Impacts
Recycling of materials Recycling of materials
Rehabs a historic building
95 of construction waste diverted from landfills
Building products of high recycled content
Promotes alternative transportation Promotes alternative transportation
Strategically situated on a Metro line
Parking for fuel efficient cars
Bike friendly amenities (storage, showers, changing areas)
Environmental and sustainable living education provided in Action Center Environmental and sustainable living education provided in Action Center
Reduced heat island effect through green roof and light colored roofing Reduced heat island effect through green roof and light colored roofing
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DBL Handbook

• Funded by the Ford Foundation
• Provides a comprehensive overview of the field of
  Double Bottom Line investment private-equity
  funds.
• The Handbook is available at
• www.sdsgroup.com

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