Global warming and related catastrophes, continued use of fossil fuels, deforestation for biofuel manufacturing, mineral mining, toxins in the water, wars, loss of natural open space and wetlands, and the destruction of the endangered species are all examples of current events that will continue. The application of the environmental banking concept is being developed to deal with each issue.
Develop the first environmental banks within the Ostional region. Each onsite project is separate and dependent on the site conditions, regulations, and the landowners contribution.
Identify onsite potential sites within viable markets and create environmental banks in the most appropriate locations that offer the best promise of economic return. Identification of the sites minimizing development costs wil insure maximum profit from their development into banks. The best sites have minimal negative environmental impact and the environmental characteristics of the site are appropriate for creating a bank for long-term consideration.
Offer bank partnerships in the form of simple limited partnerships. Investors can "buy" a percentage of ownership in as many new banks as they desire. Then sell shares in the bank through the internet worldwide. When enough shares are sold, the bank development process would begin (obtaining certification, building the bank, and selling the credits). Investors would have a negotiable shares worth an equal percentage to their investment. O would serve as an internet broker (including buying back shares and selling) and remove all hurdles from the concerns of the investors.
Ostional Private Wildlife Reserve (O), is a property holding company and manages the property it owns for development of environmental banks and for the long-term sale of resource compensation credit.
O Corporation International is a Not-Just-For-Profit S-Corporation founded by Kevin Shea to purchase real property for ecological and community services.
Kevin Shea, Chief Adventure Officer
Kevin Noon, consultant services
Raquel Gomez, Project Manager
Start-up expenses of the company will include initial restoration of the property. Once the bank prospectus is approved by the bank review team, O will commence development of the property and be the creditor for any mortgage debt balance.
O is a not-just-for-profit oriented environmental banking business. The company will identify, develop, and market the following opportunities:
Develop credit habitat conditions that are in the highest demand.
Contract with local, regional, and national agencies to be their sole source of compensation regarding environmental banking.
Partner with different local, regional, and national agencies to develop banks to satisfy their needs.
Identify potential bank customers before the bank sites are approved.
Generate additional income by creating a floral commercial nursery. The seed stock from the nursery could be used to plant in other bank sites, thus reducing construction costs, and/or be sold to others, creating compensations throughout the world.
Supplement cash flow through fees for hunting, ecotourism, education, and bird-watching on the environmental bank sites.
Costs to Create Bank Credits
Cost (Avg range)
| Freasibility, Certification, & Managment Costs|
| Feasibility Study||$20,000 to 100,000|
|Preliminary site analysis||S3000|
| Topography Map||$3500 (paid)|
|Hydrology well monitoring||$3000 to $10,000|
| Monitoring (per year)||$1000 to $5,000|
| Certification Process:|
|Special studies and surveys||$5000 to $50,000|
| Preliminary application meetings|| $0 to $10,000|
|Bank prospectus and bank instrument|| $10,000 to 90,000|
| Construction documents||$20,000 to $50,000|
|Travel|| $10,000 to $30,000|
| Management and marketing (per year)||$3000 to $50,000|
| Legal fees|| $20,000 to $100,000|
| Total feasibility, certification, and management costs|| $98,500 to $501,500|
|Property Purchase and Modification Costs |
| Property purchase|| 200,000 (paid)|
| Construction work||$50,000 to $500,000|
| Total property purchase and modification costs||$250,000 to $700,000|
|Average Total Creation Costs for a 46-Acre Bank|| $350,000 to 1.2 million (or $760 to $26,000 per acre)|
Revenue Forecast (awaiting feasibility studies)
| Type of Environmental Bank||Credit||Estimated Price per credit ||Credits (quantity)||Income |
| Wetland Bank|| Credit Acre|
| Endangered Species Conservation Bank||Conservation Credit|
| Carbon Bank|| Carbon Credit, emission reduction credit|
| Energy Bank|| Energy Credit, tradable renewable certificate|
|Water Bank|| Volume of water|
|Water Quality Bank|| Water pollution credit, reduction credit certificate|
| Land Development Rights Bank|| Development density credit|
Assumptions to Pro Forma Analysis
The proforma is based primarily on bank certification or establishment costs, initial and capital costs for land purchase and construction, and perpetual management costs to maintain the bank conditions. These may include sales, cost of sales, advertising, sales commission (calculated at 6% of gross sale with base salary of $2,000 per month), marketing collateral, and travel.
General and Administrative Expenses
To be determined is the general overhead expenses associated with maintaining an organizational structure. This would include: accounting and legal fees, equipment, office rental, income taxes, B and O taxes, print and postage, depreciation, telephone insurance, payroll burden, bonuses, and other expenses.
Bank Site Operating Expenses
To be determined is the following related expenses: construction cost, site maintenance, site physical barrier cost (fencing/signage), site monitoring, field equipment, heavy equipment, site insurance.
References:Environmental Banking Information
http://criticalhabitats.com/ (environmental banking)
http://www.environmentbank.com/ (environmental banking)
http://www.envtn.org/docs/USDA_Policy.pdf (Secretary's Memorandum)
Land Development Rights Banking
American Farmland Trust (general & sample documents)
State Environmental Resource Center (review of state policies)
Pace Law School, Land Use Law Center (laws for land use database)
Recent Trends in TDR (article)
TDR Programs: using the Market for Compensation and Preservation
Sustainable environments, LLC
Endangered Species Banking
Environmental Defense with Sustainable Conservation (how to)
Water Quality Banking
Progressive Policy Institute. "Water Quality Trading".
US EPA Water Quality Trading Policy