The Community Capital
Investment Initiative
and
The Bay Area Family of Funds
MetroBusinessNet
Miami, Florida – February 17-18, 2005
Elizabeth Y.A. Ferguson, Bay Area Council
Victor Hsi, Alliance for Community Development
Bay Area Council

Business civic organization of the 275 largest employers in the
Bay Area, represented by the CEO or highest ranking officer
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Business community encouraged Bay Area Council to sponsor
the Bay Area Family of Funds because:
Poverty in many neighborhoods is one of the major challenges to prosperity
Sustainable economic development requires engagement of the market since
funding from government and foundations is limited and not sustainable
 Smart Growth requires buy-in from current residents, which means current
residents need to share in wealth created
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Investors in the Bay Area Family of Funds are diverse:
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Banks, insurance companies, foundations, pension fund, corporations, and
individuals
Community Capital
Investment Initiative

Engages business, community, environmental, and
government leaders to collaborate in using market forces to
reduce poverty and promote smart growth

Encourages private investments in or near priority Bay Area
low- and moderate-income (LMI) neighborhoods – 80% or
less of county household median income
Bay Area Family of Funds

Bay Area Smart Growth Fund invests in mixed-use, mixedincome, transit-oriented real estate developments

Bay Area Equity Fund: A Double Bottom Line Fund invests in
businesses that create jobs and wealth in or near priority
neighborhoods

California Environmental Redevelopment Fund (CERF), statewide
environmental clean-up fund with 25% going to the Bay Area

Each fund invests in projects or companies located in or near
LMI neighborhoods

$175 Million raised, with $103.8 Million invested
Double Bottom Line

First bottom line: risk adjusted market rate of financial return

Second bottom line: substantial economic, social, and
environmental returns, including:
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Location: in or near a priority neighborhood
Job creation: particularly livable wage jobs for local LMI residents
Community benefits: such as affordable housing, joint ventures with community
developers, local and minority contracting, and supporting community groups
Economic development: stimulation of additional economic activity in the
neighborhood
Wealth creation: health care, employee ownership, financial education
Environmental performance: energy conservation, waste reduction, recycling,
pollution prevention, and green building
Community participation: such as internships, volunteer programs in schools
and neighborhoods
Priority Neighborhoods

Priority areas are
neighborhoods with
household median income at
80% or less of county
household median income
Partner Organizations

Community Capital Investment Initiative:

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Organized as a Business Council, a Community Council, and a Government
Advisory Council
Co-Chaired by Elizabeth Y. A. Ferguson, Executive Vice President of the Bay
Area Council and Juliet Ellis, Executive Director, Urban Habitat Program

Bay Area Council: the business-sponsored, CEO-led public
policy advocacy organization for the Bay Area

Alliance for Community Development: non-profit corporation
made up of leaders from community economic development
organizations and business associations
Structure
Community Capital Investment Initiative (CCII)
Community Council
National Economic Development & Law Center (NEDLC)
PolicyLink
Urban Habitat Program
Business Council
Bay Area Council
Government Advisory Council
State of California Business, Transportation & Housing Agency
Bay Area Family of Funds
Bay Area Council
Bay Area Smart Growth Fund
Sponsored by:
Bay Area Council
California Environmental Redevelopment Fund (CERF)
Bay Area Equity Fund
Sponsored by:
Bay Area Council, Federal Reserve Bank of San Francisco
& Los Angeles Chamber of Commerce
Sponsored by:
Alliance for Community Development
Bay Area Council
Bay Area Smart Growth Fund
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Sponsored by the Bay Area Council

Managed by Pacific Coast Capital Partners
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Raised $65.8 million
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Investing in community shopping centers,
affordable homeownership opportunities,
commercial and office developments in
redevelopment areas
Bay Area Smart Growth Fund
Investments
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Oakland Airport Business Park:
constructing an office park, with carpenters
union as lead tenant, $6.7 million
Ascend: rehabbing affordable infill housing,
$2.7 million
Casa del Prado Townhomes: converted 81
units of rental housing to affordable condos,
sold at 85% AMI, $4.1 million
Cinema Place: theater/commercial
development that is key to Hayward
revitalization, $4.3 million
Marin City Gateway Retail Center: joint
venture with the community to purchase and
revitalize a shopping center, $7.9 million
North Richmond Land: building 173 units
of affordable for sale housing, $2.7 million
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Pacific Cannery Lofts: constructing 161
units of affordable entry-level homes for sale
to 80% of AMI, $7.8 million
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Santa Clara Industrial Portfolio:
undertaking commercial reuse of 7 vacant
industrial buildings, $6 million
Story King Shopping Center: building a
community shopping center, $5 million
Vallejo Plaza: repositioning shopping center
to serve Asian neighborhood market,
$5.2
million
Waterstone Condominiums: rehabbing
180 condo units to affordable entry level
homes, premarketing sales at 68-83% of AMI,
$5.9 million
Marin City Gateway Retail Center
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Shopping Center in Marin City, a low
income neighborhood in Marin County
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Joint venture between Bay Area Smart
Growth Fund and community nonprofit – $7.9 million investment
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Preserved community ownership that
provides funding for affordable
housing and community services
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Created joint ventures between Marin
City and regional businesses to
provide security, painting,
landscaping, and maintenance
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Awarded real estate deal of the year in
its category, by S.F. Business Times
Alliance for Community
Development
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Co-Sponsor of the Bay Area Equity Fund, Special Limited
Partner, and member of the Advisory Committee
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Providing:
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Deal referrals
Business development assistance
Monitoring and evaluation of second bottom line returns
Interfacing with neighborhoods where business are located
Outreach: recent networking event featured the California Lieutenant Governor
and Deputy Insurance Commissioner
Bay Area Equity Fund: A Double
Bottom Line Fund
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Sponsored by the Bay Area Council and the Alliance for
Community Development, managed by JPMorgan H&Q
90% of the fund investing in emerging growth companies in technology, health
care, or specialty consumer
 10% of the fund in strategic equity companies that anchor communities
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Raised $75 million
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Target of creating 1,500 new jobs, with at least 750 jobs for lowand moderate-income residents
Accomplishing
The Second Bottom Line
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Assessment before investment is made to determine 2nd
bottom line potential
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Letter of agreement signed by company to develop/implement
2nd bottom line strategy, choosing from cafeteria plan of best
2nd bottom line practices
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Consultation to formulate enhanced strategy and action plan
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On-going joint implementation of the action plan
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Narrative Evaluations and Impact Reports for individual
companies and portfolio as a whole, addressing:
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Job creation/LMI job creation
Wealth creation
Community benefits
Environmental performance
Second Bottom Line Impact Report
Summer/Fall 04
Category
Projected
Actual
Winter/Spring 05
Projected
Actual
Summer/Fall 05
Projected
Actual
 New Jobs Created
 Low Income Employees Hired*
I. Job Creation
 Salary Range
 $25,000 - $34,999
 $35,000 - $44,999
 $45,000 - $54,999
 $55,000 – Above
 Retention/Promotion
 Low In. Employees Retained
 Low In. Employees Receiving Upgrade Training
 Low In. Employees Promoted
 Employee Benefits
II. Wealth Creation
 Employer Paid Health Care
 Retirement Plan
 Financial Management Training
 Profit Sharing Program
 Employee Stock Ownership Program
 Community Benefits
 Corporate Citizenship Program
III.
Environment
/Workplace
 Local, Women, and Minority Contractor/Supplier Program
 Bay Area Green Business Certification Program
 Green Building Plan (design, construction/retrofit, &
operations)
 Workplace Safety/Ergonomic Efficiency Plan
* Low-income employees are defined as individuals who had household incomes that were 80% of the county median income before the individuals were hired
Bay Area Equity Fund Investments
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Elephant Pharmacy: natural health
retailer providing both traditional and
alternative wellness solutions, $2.2 million
Reshape, Inc: Electronic Design
Automation software provider for integrated
circuit manufacturers, $1.8 million
Efficas: developer of nutritional bioactives
that maintain health in humans and animals,
$2.3 million
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Expression Diagnostics (XDx):
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Peninsula Pharmaceuticals:
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developer of a blood-based molecular
diagnostics test to detect rejection in
transplant patients for the heart and other
organs, $3 million
commercializing antibiotics to treat lifethreatening infections, $1 million
Five Prime Therapeutics: biotechnology
company-therapeutic proteins and
antibodies for oncology, immune disorders,
diabetes and regenerative medicine, $1
million
California Environmental
Redevelopment Fund (CERF)
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Sponsored by Bay Area Council, the Federal Reserve Bank of
San Francisco and the Los Angeles Chamber of Commerce
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Managed by Peter Hollingworth, President and CEO
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Raised $34.4 million
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Provider of Cal ReUSE funds
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Innovative, financing solutions for remediation of brownfields
throughout the Bay Area and California
CERF Debt & Equity Investments
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Curtis Park: Sacramento, remediation of
contaminated rail yard, $5 million
Bugatto: Santa Rosa, remediation for a
housing development, $0.8 million
Fairfield Independent Business: Fairfield,
rehabilitation of an independently owned
smog/autobody shop, $0.5 million
Pittsburg River Park, LLC: Pittsburg, site
acquisition & remediation for new single
family housing/retail use, $5 million
Habitat for Humanity-SF: San Francisco,
environmental remediation and new
condominium construction, $1 million
South County Housing: Gilroy, acquisition
& remediation of contaminated site for LMI
housing development, $1.9 million
SunQuest: Sun Valley, environmental
remediation, pre-development and grading,
$5 million
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Samir: San Bernadino, acquisition & cleanup of
gas station, $0.8 million
Samir: Colton, acquisition & cleanup of gas
station, $0.8 million
Surfas, Inc: Culver City, site/building
acquisition & facility improvements, $1.8 million
Surfas, Inc (II): Culver City, site/building
acquisition, site remediation & facility
improvements, $5 million
Nabil: Redlands, site acquisition and new
equipment purchase, $0.6 million
St. Clair: Norco, refinance/cleanup, housing
development , $7.3 million
Stanton: Orange County, site acquisition,
facility rehabilitation/equipment purchase for
business, $0.6 million
Conclusion

The success of CCII and the Bay Area Family of Funds
demonstrates the regional economic impact that business civic
organizations can have by initiating a double bottom line
initiative and fund family
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Based on their success in the Bay Area, the Bay Area Council
and the Alliance for Community Development have emerged as
national leaders in the emerging field of double bottom line
investing