Womble Carlyle Ecology Innovations, LLC
A New Approach to Business and the EnvironmentSM
The goal of Womble Carlyle Ecology Innovations, LLC* ("WCEI") is quite simple - to help owners of unused or underperforming land unlock revenue from their land by creating ecological credits for purchase and use by third parties.
WCEI assists landowners with developing ecological projects that produce ecological credits that are purchased and used by parties who are required to mitigate their destruction of ecological resources. Sites producing ecological credits are often referred to as mitigation banks. In exchange for helping establish a mitigation bank, WCEI receives a share of the ecological credit proceeds. Alternatively, instead of establishing a mitigation bank at the outset, WCEI may enter into a consulting contract with the landowners to advise them on how to best utilize their landholdings to meet ecological goals while maximizing revenue. This latter approach is particularly helpful to landowners not yet sure whether a mitigation bank or ecological project is appropriate for their property. WCEI can undertake these two separate but related functions for various types of landowners.
How does WCEI team with landowners to develop mitigation banks?
WCEI's expertise and resources enable landowners to convert land which is a potential liability into a revenue generating asset. First, WCEI conducts a site suitability review. WCEI's project development team starts that process by applying a proprietary 75-point site selection test designed to determine whether the parcel of land is suited to the production of ecological credits. Potential ecological credits include wetland and mitigation bank credits, stream restoration credits, water quality credits, habitat credits, reforestation credits and transfer development rights, among others. After determining whether the site is suited to the production of credits, the WCEI team then engages in a proprietary analysis of whether a mitigation bank or other ecological project is economically viable. This review includes an analysis of project costs and some 50 additional economic and practical factors.
If WCEI determines that a project is economically viable, WCEI will assume responsibility for obtaining regulatory approval for the ecological credits, site development, and the marketing and sale of credits. (Ecological credits are purchased by end-users for their own business purposes, typically in association with a particular property or permit, and not as an investment.) In consideration of its efforts, WCEI receives a share of credit sales proceeds.
Importantly, the interests of WCEI and the landowner are aligned in the development of an ecological project because WCEI is paid an agreed-to percentage of credit sales proceeds only when the landowner receives its share. The landowner can also be comforted that WCEI earns its fee through its efforts in gaining regulatory approval, design and development of the project, sale and marketing of credits, and other primary project tasks.
WCEI also undertakes this site suitability analysis on a fee basis for corporations and government agencies which have a portfolio of land assets. If some or all of the sites in the portfolio are determined to be economically viable for the generation of ecological credits, then WCEI and the landowner may enter into a contract to develop those sites as described above.
What types of landowners can work with WCEI?
WCEI will work with individuals, corporations or government entities who wish to monetize unused or underperforming land through the creation of ecological credits. For example, WCEI is presently working toward development of projects on farm land in the Northwest, recreation land in the Southeast, a site owned by a Fortune 100 company in the Midwest, and various sites throughout the country for a corporation that has extensive land holdings across the U.S. In addition, WCEI is exploring the development of numerous eco-opportunities throughout the United States on land owned by Federal and state agencies.
While the nature of the sites, their locations and their owners differ greatly, they all have one thing in common: each site presents the opportunity to be transformed into an ecological project that produces significant revenue.
What kind of land qualifies?
Many types of land qualify for WCEI eco-development projects. However, there are some generally applicable parameters that may generate substantial revenues.
To some extent, size matters because of economies of scale, although there are exceptions. Generally, parcels in excess of 100 acres that are near bodies of water or have high water tables are desirable wetland mitigation bank sites. However, WCEI will consider other sites. For example, smaller sites located near an urban area where land is at a premium and ecological credit demand is high may generate substantial revenues. In other instances, sites with high resource values such as those capable of providing habitat for threatened, endangered or valued species (salmon, for example) may be desirable.
Sites need not be located "in the middle of nowhere." Urban sites can provide necessary ecological buffers. Some sites can be produced in conjunction with other more traditional development projects such as those surrounding commercial or industrial uses, housing subdivisions, landfills, or even golf courses. Each site opportunity produces its own set of challenges and opportunities which the WCEI team is uniquely qualified to analyze.
The WCEI Team
WCEI creates a team that is comprised of hand-picked technical and other professionals from all over the United States. Most projects require the input of wetland biologists, engineers, legal professionals and a multitude of others depending on the individual site characteristics. In some instances, civil engineers are needed; some projects require the involvement of science professionals and others having unique knowledge of project site characteristics; in some cases, geotechnical professionals are called upon, while other projects may require significant input of hydrologists and individuals familiar with water law. In all instances, the WCEI team works comfortably as a cohesive group with the goal of maximizing the ecological and economic benefits from each project.
For further information, please contact Bob Sokolove, President, Womble Carlyle Ecology Innovations, LLC at 703-790-7921 or by e-mail at bob.sokolove@wcecoi.com.
WE CREATE ECOLOGICAL AND PROFITABLE SOLUTIONS FOR UNDERPERFORMING LAND.SM
*WCEI is not a law firm and is not qualified to practice law. WCEI is affiliated with the law firm of Womble Carlyle Sandridge & Rice, LLP. In situations where legal advice or representation is required, at the client’s request WCEI can assist the client in engaging Womble Carlyle Sandridge & Rice, LLP or another law firm or lawyer, which representation shall be subject to the specific terms of engagement entered into by the client and the applicable law firm or lawyer.