Eco cities nondominium

Fostering Mutualisation of Goods & Services with Economic and Legal Frameworks

Eco Cities Conference - SF5

Chris Cook

Nantes 26th September 2013

“21st Century problems cannot be solved with 20th Century solutions”

Introduction - Resilience

Resilience - the enduring power of a body or bodies for transformation, renewal and recovery through the flux of interactions and flow of events

Resource Resilience – Natural Grid

Financial Resilience – Open Capital

Financial Resilience – Open Capital

Prepay – credit returnable in payment for value

Protocols – Contrats de Société/social agreements

Prepay

Tax

Tax Prepay

Tax Prepay – credit returnable in payment of taxes

Tax Return – 'stock' part of tally stick returned to Treasury

Rate of Return - rate over time at which stock is returnable for cancellation

eg Prepay £8 for £10 tax - £2 profit 25% pa rate of return

- not fixed - depends on existence & quantity of flow

Capital Partnership

Custodian(Community)Custodian(Community)

InvestorInvestor

UserUser

Prepay%

ManagerManager

Value

Capital Partnership

An agreement or Protocol: not an Organisation

A consensually negotiated framework agreement for self organisation to an agreed common purpose

Does not own anything; employ anyone; borrow anything; or contract with anyone

A Co-operative of Co-operatives or Partnership of Partnerships

Land Partnership

Custodian(Community)Custodian(Community)

InvestorInvestor

OccupierOccupier

RentalPrepay

%

%

ManagerManager

Rental

Land Prepay – the Value Proposition

Community

- sells rentals forward and locks in price

- interest-free loan until prepay unit returned vs rental

Occupier

- prepays rental and locks in price

Land Prepay – the Value Proposition

Investor

- direct 'inflation hedge' investment in land

- Occupiers buy prepay credits from Investors at best price below issue price & return against rental

Manager

- shares in gross rentals or production

- interests aligned with Investor

- no 'Principal/Agency' problem

Land Partnership - Outcomes

Contrat de Société - relationship-based not transaction-based - costs transformed to revenue shares

Neutral – removes ego and politics

Collaborative - stakeholder interests aligned

Sustainable - shared interest in minimising cost over time

21st Century Problem

Retiring Generation

-'long' of Property and 'short' of Care for themselves and their property

- poor returns on deposits (loans to banks)

Working Generation – burdened with bank property debt

Young Generation – long of Care but short of Property

21st Century Resolution

Retiring Generation

- exchange rental credits for care

- invests directly 'Peer to Asset' in rental credits

Working Generation – direct investment in rental credits replaces bank property debt

Young Generation – care exchanged for rental credits

21st Century problems cannot be solved with 20th century solutions.........

…....21st century solutions pre-date modern finance