Environmental Banks

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.

Objectives:

• 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.

Company Summary

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.

Company Ownership

O Corporation International is a Not-Just-For-Profit S-Corporation founded by Kevin Shea to purchase real property for ecological and community services.

Management Team

Kevin Shea, Chief Adventure Officer

Kevin Noon, consultant services

Raquel Gomez, Project Manager

Overall Schedule

Start-Up Summary

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.

Financial Plan

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.

Income-Expense Analysis

Costs to Create Bank Credits

 Revenue Forecast (awaiting feasibility studies)

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.

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