Message to Potential Investors
The Consortium is ideally pursuing the possible financial support of
the federal government sources to provide funding for the project to
a maximum of 90%. However, the Consortium also recognizes that spending
constraints are such that government capital available for such projects
is in shore supply and may fall far short of this target.
The Consortium is
therefore willing to consider other options that may necessitate a joint
sharing of the project’s ownership, including the land base in
which the projects are to be situated.
Indian reserve land,
ordinarily, is restricted from encumbrance to a third party other than
an Indian, unless it is first surrendered to the Crown and subsequently
leased back to the Band or its designated lessee, in this case the Consortium.
Once the land has
been surrendered for lease, often for a period in excess of 40 years,
the land will assume a market value to the holder of the head lease.
Since the head lease may be transferable to someone other than an Indian,
it will in essence offer sufficient security to lenders should debt
financing be an option.
The target market can be broadly identified in terms of marital status,
age range, and income range. The target market will be married, between
the ages of 18 and 40, earning middle to upper level incomes. The analysis
also shows that this target market prefers non-physical activities,
lakes, and the wilderness.
Total market size is derived by first determining the population size
of the targeted regions in Northern and Central Alberta. Population
figures used in this study were obtained form the Department of Tourism.
The long term outlook for the project is very positive. It will provide
needed income to the community, offer long term employment opportunities
for the local population, and provide a training ground for local managers.
Because of unique circumstances, all three reserve communities do not
presently share in the affluence now enjoyed by most Albertans. Unemployment
is high, social problems associated with low self esteem and lower standards
of living are systemic and debilitating, educational levels are below
the national standards and very few opportunities exist for career development,
economic growth and wealth generation.
With the prospect of sustainable economic growth involving tourism development,
all three communities have reason to be optimistic that their tourism
projects will benefit their communities and will provide some remedy
to their present economic disparity.
The net benefit to the three reserve communities will be the creation
of more than 60 jobs in all areas of resort management, hospitality,
recreation and administration. Spin off opportunities will result for
the entrepreneurial sector to provide food services, fuel, souvenirs,
sporting goods and handicrafts.
that produce handicrafts and souvenirs will have a ready market and
local contractors will be utilized in all phases of construction. This
will allow for a greater circulation of wealth within the community
that will in itself net jobs and business opportunities for local reserve