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Revolving Fund Created to Conserve Great Lakes Shores FLINT, Michigan, January 28, 2002 (ENS) - Coastal and freshwater ecosystems within the U.S. part of the Great Lakes Basin under increasing development pressure will receive protection by means of a new revolving loan fund created this week. The Charles Stewart Mott Foundation of Flint, Michigan has made a $3.975 million grant to The Conservation Fund (TCF), a national environmental nonprofit organization based in Arlington, Virginia. TFC acts to protect wildlife habitat, landscapes and community open space by working in partnership with organizations, public agencies, foundations, corporations and individuals.
The Mott Foundation grant includes $3.75 million to establish the Great Lakes Revolving Loan Fund, with an additional $225,000 to underwrite costs of administering the fund. This is the largest environment grant in the foundation's 75 year history. The fund will be used to make short term loans to public agencies and nonprofit organizations that want to purchase lands and easements for conservation purposes. The foundation anticipates increasing its commitment to the revolving fund by up to another $3.75 million in the coming years. Revolving fund loans are repaid as public and private funds become available, and then the funds are re-invested in other conservation purchases. "The revolving loan fund provides a significant new tool for preserving coastal and freshwater features that are unique to the Great Lakes," said foundation president William White. "We are pleased that this grant will help conservation organizations and government agencies work with willing sellers to protect such places." The Great Lakes Basin, which in the United States includes the entire state of Michigan and portions of Minnesota, Wisconsin, Illinois, Indiana, Ohio, Pennsylvania and New York, is the world's largest freshwater ecosystem with 20 percent of the global supply of fresh surface water. The basin's sand dunes, coastal marshes, rocky shorelines, rivers, streams and wetlands support a rich diversity of wildlife. But ecologically significant areas within the region are under development pressure especially along the shorelines of the Great Lakes. One of the greatest challenges faced by land trusts and governmental agencies in their conservation efforts is the lack of capital to respond quickly to land purchase opportunities.
Under the provisions of the Great Lakes Revolving Loan Fund, short term loans will be made to public agencies and nonprofit land trusts for the conservation of coastal and freshwater sites of high ecological significance. Money will be made available for two primary types of transactions: direct loans to land trusts, and advance purchase of land or conservation easements on behalf of public agencies and/or nonprofits. Based on the initial grant from the Mott Foundation, the revolving fund is expected to protect $15 million worth of land value in the coming five years. After the foundation completes its commitment to the fund, the value of the land to be protected should increase to $25 million, The Conservation Fund says. The Conservation Fund will administer the revolving loan fund. Since 1990, TCF has managed $45 million in revolving loan funds that have been used for 400 land acquisitions, all without a single default on a loan. "This grant is a tremendous leap forward from what we have had available," said Peg Kohring, Midwest director for TCF. "Our conservation efforts can now move to a whole new level. We can look at larger blocks of land and be more systematic in the preservation of ecologically significant sites." The Great Lakes Revolving Loan Fund is already at work protecting 32 acres along the cobble shores of Seven Mile Point on Michigan's Keewenaw Peninsula.
Originally a commercial forest reserve on the shore of Lake Superior, the land was open to the public for hunting, fishing, picnicing and outdoor recreation. When the land changed hands, much of it was sold for development. The North Woods Conservancy, an all volunteer land trust, moved to purchase the last lot available, Seven Mile Point to keep it out of the hands of developers. But the purchase had to be done quickly - by the end of 2001. The North Woods Conservancy was able to raise 10 percent of the asking price locally, but needed two years to raise the balance. Seeking a bridge loan to allow them time for the necessary fund raising, the North Woods Conservancy approached The Conservation Fund. Using monies from the GLRLF, the North Woods Conservancy was able to purchase Seven Mile Point, and will pay back the loan by the end of 2003. The Mott Foundation has been active in funding environmental projects in the Great Lakes Basin, including protection of freshwater ecosystems, for nearly 20 years.
Charles Stewart Mott lived from 1875 to 1973. Born in Newark, New Jersey, Mott became superintendent of a small, wire wheel firm, the Weston-Mott Company. Under his direction, the company shifted to axle making and moved from Utica, New York, to Flint. The company went on to become the world's largest axle company and was purchased by General Motors (GM). Mott served as director of GM in 1913 and was vice-president from 1916 to 1937. He was mayor of Flint for three terms, and in 1926 formed the C.S. Mott Foundation. The Foundation, with year end assets of $2.47 billion, made 647 grants in all sectors totaling $130 million in 2001. Copyright Environment News Service (ENS) 2002. All rights reserved. |
Satellite image of the Great Lakes (Photo
courtesy 
Lake Superior, Minnesota (Photo by Dave
Hansen courtesy Minnesota Extension Service)
Seven Mile Point on Michigan's Keewenaw Peninsula
(Photo courtesy TCF)
Charles Stewart Mott (Photo courtesy 