ShoreBank Blog
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Archive for September, 2009
Tuesday, September 29th, 2009
A friend of mine in Northern Minnesota bikes to work year round, even in the cold and snow. Oddly I found this inspiring. So this summer, I bought a bike and began riding it to work. I was a bit hesitant at first, but a month into it I was hooked! I was reducing my carbon footprint, saving money on gas, losing a little weight, and discovering interesting new parts of the city. I sometimes passed Chicago celebrities like Oprah Winfrey or Jesse Jackson Jr. on the lakefront trail. Biking was good.
I discovered interesting new places within the city that I might have missed in a car, including a tiny Lebanese neighborhood (with a bakery selling the best pita bread I have ever tasted), an awesome Romanian restaurant (Little Bucharest—it has since become one of my favorites), and many more museums, businesses, and parks (which I still have yet to stop and explore). After this first month, I felt I was becoming “A real Chicago bicyclist.” Then part of me said: “So maybe it’s time for you to join the Active Transportation Alliance, huh?”
Although we did previously blog on the Active Transportation Alliance (ATA), if you’re not familiar, they are a nonprofit that advocates for bikes (and other non-motorized forms of transportation) in Chicagoland. They have programs promoting bicycle safety, and they lobby to ensure that bike lanes are included on city streets. They also sponsor international events like “World Carfree Day” (which occurred last Tuesday, September 22) to encourage commuters to experiment with going for one day without using a car.
But I balked. Part of me felt that bicyclists in Chicago already had it good… maybe even “too good.” You see, there are a few bad eggs in the Chicago bicycle community who never obey any rules of the road. Insanely, they think that just having a bicycle makes you above the law! (I used to imagine Chicago cops observing a bicyclist on a crime spree, and saying to one another, “I guess there’s nothing we can do; he’s got a bicycle.”) But biking overall was pretty easy where I was.
So I procrastinated. Then, the next weekend, I decided I would take my bike to run an errand in a less bike friendly region nearby.
Let’s just say I joined the Active Transportation Alliance the next day.
As I rode in this un-named area, the demeanor changed dramatically for the worse. First, there were no bike lanes, and it was a struggle to figure out where to ride. Then, remarkably, I had people slow down their cars and roll down their windows to yell at me just for riding a bicycle! If you rode on the street, people would yell at you to ride on the sidewalk. If you rode on the sidewalk, people would yell at you to get back on the street. And perhaps most disconcerting of all, there were no other bicyclists.
I was shocked. Suddenly, the value of the inroads made by groups like the ATA was all too clear. It was also clear that I had taken them for granted. My little test ride provided a vision of how horrible things might be for bicyclists without nonprofits like the ATA working hard to advocate for them.
Yes, it still annoys me when an arrogant Chicago bicyclist acts like he or she doesn’t need to obey traffic signals, but moreover, I’m just thankful for all that we do have here in Chicago. There are miles of paved paths just for bikes. There are bicycle safety awareness programs for motorists. There are bike lanes on the city streets. And if people do roll down their windows to yell at you, it’ll be for some transgression other than simply “being a bicyclist.”
Tags: community development, green banking, green transportation, ShoreBank, triple bottom line
Posted in Outreach | 1 Comment »
Tuesday, September 22nd, 2009
With easy access to the fresh produce that modern supermarkets make possible, it can be easy to forget that you can grow nutritious and delicious produce in your own yard – even if you live in the city. It took battling congestion and a trip to the suburbs for something as simple as a home-cooked meal to open my eyes about the benefits of cultivating an urban garden.
Many people may think of Victory Gardens when they hear the term “urban gardening.” During war time individuals across the country planted gardens in yards and on unused plots. Eleanor Roosevelt planted one at the White House during World War II. Today, however, gardens are back in the limelight – even the White House has one again.
The benefits of gardening in the city are many – and gardens can be even more important in neighborhoods that lack access to good and affordable produce even in stores (“food deserts”). A family garden provides a combination of increased nutrition and decreased cost (some estimate savings of $200 to $500 per year). It also adds a little fun in seeing plants grow.
But what if you don’t have a yard? Unused plots can also be converted into community gardens. Not only do they create a garden oasis, but they can also create an opportunity for neighbors to meet and cultivate a bit of the future together.
A local nonprofit, Growing Home, uses urban agriculture to cultivate lives at a whole different level, as a transitional job training program. Low income and formerly homeless individuals nurture plants in fully organic urban farms. Two of its sites, in fact, are in the middle of the city. Much of the produce is ultimately sold in farmers markets or through delivery, and 100% of the proceeds go back to supporting the program.
My dinner in the suburbs was great. The food I ate had excellent flavor and I was able to explore a tremendous garden. But I really didn’t have to go out of the city for that experience. Urban gardens, it turns out, are growing more than veggies right here.
Tags: community development, food deserts, green banking, ShoreBank, triple bottom line, urban gardens
Posted in Community | 2 Comments »
Tuesday, September 15th, 2009
Despite current economic conditions, many home improvement projects are holding their own. And the best way to get exactly what you want in your home is to customize its features. But “custom” doesn’t mean it has to be an expensive endeavor. Instead it just might mean saving money while protecting the planet. Here are a few ideas:
Tax Credits.
By incorporating sustainable materials and energy saving products in your home improvement project, you can recoup even more of your project costs and generate a social return. Thanks to President Obama’s America Recovery and Reinvestment Act of 2009 (ARRA) that was signed into law last February, tax credits have been extended and expanded for energy-saving improvements that had expired two years ago. This will save you money at tax time!
Tax credits are available in 2009 and 2010 for 30% of the cost of energy-efficient doors and windows, insulation, air conditioners, furnaces, heat pumps, and boilers for your primary home, up to a lifetime cap of $1,500. Plus you can include the cost of installation for these products. Starting this year, solar water heaters, geothermal heat pumps, and wind energy systems are also eligible for a tax credit of up to 30% of the cost and are available until 2016. More information about energy-efficient improvements and tax credits is available from the Alliance to Save Energy at www.ase.org.
Lower Utility Bills.
By conserving energy you lower your monthly utility bills by 25% to 45%. By including double-paned windows and extra insulation in the attic you can keep cool or warm air from escaping so the HVAC system doesn’t have to work as hard to maintain the right temperature.
Healthier Environment.
And the less electricity and water you use, the less of an impact you make on the earth’s resources while also reducing the amount of greenhouse gas emissions being emitted into the environment. By some estimates, one-third of all hazardous gases are emitted by homes. To discover the more than 40 categories of Environmental Protection Agency (EPA)-approved, home-improvement products and materials like insulation, appliances, windows, siding, and more, visit www.energystar.gov.
Make it Happen.
From our experience with ShoreBank’s Home Energy Conservation Loan Program, I suggest contacting a certified home energy auditor to arrange an in-home inspection of air leaks, insulation, and overall efficiency of mechanicals and appliances to help you determine which improvements offer the best value and environmental impact.
For more information, please visit, www.sbk.com.
Tags: community development, energy conservation loans, energy efficiency, Energy Tax Credits, green banking, ShoreBank, triple bottom line
Posted in Mortgage Lending | 3 Comments »
Tuesday, September 8th, 2009
It wasn’t long ago developers thought “green” design made sense only in upscale markets, not in the low to moderate income neighborhoods where we at ShoreBank focus. Thankfully, much has changed in the past few years.
When we began planning for our application for a New Markets Tax Credit allocation–a federal tax credit for commercial investments in low income communities–we had numerous discussions internally about how to use the program to promote green projects in Chicago, Detroit, and Cleveland. Eventually, we made the controversial decision to focus exclusively on financing/supporting projects involving green buildings, alternative energy installations, and energy efficiency retrofits. The assumption was that we could use the subsidy provided by the tax credits to incent borrowers to pursue LEED certification or capital intensive but cost effective green technologies and design features. We were convinced that we would have to tussle with potential investees about the requirements and hold fast to our commitments in the face of significant push-back from the project sponsors.
Interestingly, now that we have been awarded a $35 million allocation of the tax credits, we are discovering a vastly different landscape. Our growing pipeline of potential projects consists of a wide array of building types: retail, hotel, mixed-use, industrial, education, and office. Perhaps the only commonality among them is their intent to achieve at least a LEED Silver certification and inclusion of alternative energy systems and technologies. More telling, all of the sponsors were committed to achieving a LEED rating prior to reaching out to us about tapping our New Markets Tax Credits allocation. We did not have to push the developers or even initiate the conversation about choosing to build green. LEED certification was part and parcel of their plans from the outset.
There are a variety of reasons for the decisions to build green. In many cases, doing so is required for other types of public subsidy, such as TIF assistance, Enterprise Zone benefits, or allocations of low income housing tax credits. But reasons extend beyond these governmental requirements. In some cases, the developers believe “green” offers a competitive advantage. In other cases, sustainability is a fundamental component of the developers’ “triple bottom line” objectives. An example of the latter is the redevelopment project planned for a vacant commercial building on Chicago’s southeast side, not far from some of the planned Olympic venues. For the developer, this green project offers a profitable way to promote development in this very needy tract–the tract is under 20% of the area median income and has a poverty rate above 40%, making it one of poorest in the city. Yet, this project is about bringing not only 100 new jobs to this underserved community, but also healthy food options to residents of this food desert through the opening of an organic produce store.
We are pleased to see this progression in the marketplace and excited to help further the green economy by helping these great projects get off the ground (none could move forward without the subsidy provided by these tax credits). With developers more open to green requirements than we expected, we can push further by catalyzing creation of new types of financial modes involving third party ownership of alternative energy systems, being more stringent around energy efficiency requirements (as well as “green” design), and promoting greater opportunity for residents.
Tags: community development, energy efficiency, green banking, green building, ShoreBank, triple bottom line
Posted in Green Collar | No Comments »
Tuesday, September 1st, 2009
Last week my wife and I took a leisurely drive through Wisconsin to visit our son in Minneapolis. 
We avoided I-94, taking mostly state and US highways. We saw lots of cows and even more corn. It seemed an idyllic rural scene. But all is not well in farm country. Our hostess at a bed & breakfast in Reedsburg told of the woes of two recent guests. “We had two young women who just graduated as large-animal vets. It used to be that farm veterinarians could write their own tickets, but not anymore. They both were desperate to get jobs here. And dairy farmers are struggling too. I know one farmer who is borrowing $40,000 a month to stay afloat.”
The US Department of Agriculture confirms these on-the-ground observations. In a just-published report, the USDA projects 2009 farm profits will be 38% lower than last year. In dollar terms, income is projected to be $54 billion, compared to $87 billion in 2008.
The chart at left shows that total farm income will fall below its 10- year average. The culprit is falling prices caused by slack domestic and global demand. The recession strikes again. And, as we learned in Wisconsin, dairy has been particularly hard hit. Income from dairy products is expected to drop from $34.8 billion in 2008 to $23 billion this year. Many dairy farmers are being forced to cull their herds to reduce costs.
But the most interesting statistics I found digging through the USDA report, can be seen in the second chart: The average farm-owning family earns less than $6,000 a year from farming. According to the USDA, “In 2009, average family farm household income is forecast to be $75,895, down 5.2% from 2008, and 8% below the five-year average of 2004-08. In 2009, the average family farm is forecast to receive 7.6 percent of its household income from farm sources, with the rest from earned and unearned off-farm income.” Amazing!
Tags: community development, economic predictors, financial crisis, green banking, ShoreBank, triple bottom line
Posted in Banking Industry | No Comments »
