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I. Introduction

II. East Baltimore Revitalization Initiative

III. Ours to Own

IV.Questions

Webinar Overview

#caseychat

• Largest urban redevelopment

effort in Baltimore since the Inner

Harbor in the early 1980s

• 88-acre site next to Johns

Hopkins Medicine campus

• $1.8 billion initial budget

• Goal: Transform neighborhood

into a mixed-income community

East Baltimore Revitalization Initiative

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• Capitalize on

neighborhood strengths

– Proximity to major

biotechnology center

• Acquire land and responsibly

relocate residents

• Create opportunity

– 1,200 units of mixed-income

housing

– Job training for residents

– Land use and physical

infrastructure plan

Project Strategy

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Baltimore City

State of Maryland

Johns Hopkins

University and Hospital

Forest City Science

and Technology Group

Abell, Goldseker,

Weinberg and other

foundations

The community

East Baltimore

Development Inc. (EBDI)

The Annie E. Casey

Foundation

Public-Private Partners

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• Rationale

– Casey’s hometown

– Focus on major neighborhood

improvement initiatives

• Resources

– Human capital, not just

physical rebuilding

– Maximize assets in support

of mission

o 3 percent of endowment allocated

for social investments

Casey Foundation

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Attract resources from other

foundations and stakeholders

Casey’s Two-Pronged Strategy

Leverage Casey resources and

support investments

• $20 million grant commitment

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Project Realities

• Long-time horizon for

government appropriations

• Capital intensive

• Complex

Filling the Gap

Using New Markets Tax Credits

• Three transactions totaling more than $50 million

• Partially guaranteed by Casey assets

• Netted EBDI more than $13 million in equity

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Tax Credit Investor Risks

New Markets Tax Credit Details

Guarantees

Speculative

Project

New/

Unproven

Investee

Risk shared

by Casey,

Johns

Hopkins,

others

Recapture

Full

Guaranty

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• Site preparation for 31-acre

core area

– Acquisition, demolition

– Property maintenance

Use of Proceeds

• New elementary school

and early childhood

center development

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Casey’s Total Investment

More than $100 million

Loans, guarantees and bond purchases

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Leveraged more than $300 million in additional funding:

$200 million from public sources

$90 million in other philanthropic support

$40 million in new markets tax credits

Casey Investment Leverage

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Successful relocation of

742 households

New infrastructure costing

more than $35 million

New office and housing

construction

o 275,000-square-foot research

and laboratory building

o 235,000-square-foot state

public health laboratory

o 249 mixed-income housing

units

Results to Date

New public school campus

o 7-acre K-8 public school

o Early childhood center

o Community resource center

o Historical library

Retail amenities

Wide range of support

services and resources,

including job training and

leadership development

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Base innovative financing on the

evolving circumstances of the

project and market conditions

Federal and state tax credits and

local public financing are critical

Creditworthy institutions can

backstop transactions

Six Lessons

Foundation should seek high

return in social impact

Innovative financing requires

expert financial and legal analysis

Participants must understand

each other’s motivations and

constraints

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OURS TO OWN

A GROWING MOVEMENT OF PEOPLE INVESTING AS LITTLE AS $20 —

AND EARNING RETURNS — TO STRENGTHEN THE CITIES WE LOVE

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Calvert Foundation has Been Providing Innovative, Flexible

Financing for Social Good for Almost Two Decades

• Calvert Social Investment Foundation

was founded in 1988 to complement the

work of Calvert Investments by providing

a private debt solution to create more

direct impact on communities in the U.S.

and internationally.

• While Calvert Foundation has evolved

over the years, we have had a consistent

mission, to empower individuals to invest

in social good.

• Over the years, Calvert Foundation’s

capital has played a role in testing and

proving new sectors like CDFIs in the

U.S. and microfinance abroad.

• We are unique in our source of capital

and our approach, and are looking to

scale our work in communities.

Calvert Foundation’s History

We raise capital

from individual and

institutional

investors

That we lend into

communities lacking

access to flexible

capital

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Cities Work Began in Early 2013Work started with a listening tour supported by the Kresge Foundation to

understand the disconnect between available capital and community need

• We all know that nearly every community across the country is experiencing the fallout

of the 20th-century economy: a lagging employment market, a decline of social

services and an unaffordable housing stock, and that traditional sources are insufficient

to turn these communities around.

• We spoke with many close partners that explained that there was not sufficient capital

available with the right terms and the flexibility they needed to solve some of their

communities most pressing needs.

• Despite these challenges, we see daily examples of how communities are continuing to

create innovative ways to connect, communicate and share value, proving that no

matter the macroeconomic picture, individual Americans remain optimistic and

empowered to shape the world around them.

• We developed this initiative to leverage this entrepreneurial spirit by providing a way

for everyday Americans to use the power of their individual assets to rewrite their future.

• This campaign creates the mechanisms to build a greater connection between every

day citizens and the development of the communities where they live, work and play.

We have committed to launch the Ours to Own campaign in

five cities by the end of 2015, deploying at least $30 million in

responsive debt capital in these communities

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Initiative Goal: To Leverage the Power of Our Community

Investment Note to Connect Investors With Their

Communities

Ours to Own: This campaign is the container that holds all of the intermediation

that occurs between the retail investor and the impact on the ground

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Lifting the Profile of Community Development

Organizations and Drive New Sources of Capital into Local

Communities

Campaign Goals

• To educate individuals about the power of their individual assets to create the change in their communities that they want to see

• To lift up the profile of local community actors to drive attention and resources to their amazing work

• To provide new sources of private capital targeted to creating local value to augment existing public and philanthropic sources

• To create renewed excitement and collaboration across sectors in the communities we are serving

This Effort Leverages the Strengths of Multiple Actors, All Who

Are Aligned in Their Desire to Transform Their Communities

Players & Their

Strengths

Catalyze new

sources of

capital

Tell an effective

and inclusive

story

Spark direct

community

engagement

Activate an

enabling

infrastructure

Strengthen

communities

Goals of the

CampaignThe impact of this work is much greater when all organizations work together

Critical to achieve goals

Calvert

Foundation

National &

Local

Philanthropy

Developers/

CDFIs

Creative

Partner

Grassroots

Organizations

Local Political

Offices

Regional or

National

Banks

The impact of this work is much greater when all organizations work together

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Ours To Own: Currently Live in Denver and the Twin Cities;

Will Be Launched in Three More Cities by End of Next Year

Visit www.OursToOwn.org

to see the full site

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Flexing Our Marketing and Analytics Muscle for the First

Time with Partners to Reach More Diverse Investors

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We’re Excited to Expand This Work Across Many More

U.S. Cities Alongside National and Local Partners

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At www.aecf.org:

• Innovative Philanthropic Financing for Community Change

At www.OursToOwn.org:

• Ours to Own - Denver

• Ours to Own - Twin Cities

Resources

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For additional information:

media@aecf.org

partner@ourstoown.org

Questions?