Philadelphia Regional & Independent StockExchange (PRAISE):Investing in Communityby Paul Glover

Everybody wants more money so they can enjoy life, send kids to college and retire well. To achievethese, over 40% of American households have invested in stocks and bonds.

But Wall Street is risky and even destructive. Bull markets lure the middle class to bet heavily then,often, their money dissolves. $1,000 worth of Nortel stock one year ago now yields $13.00. Enron's$1,000 is now $41; Worldcom lost $995 of the thousand. These tophat crooks can't be controlled: thewatchdog workload of the Securities & Exchange Commission grew by 80% between 1991­2000 whilestaff grew just 20%.

Even when the market's rising, only 3% of trading is essentials like food and fuel. Warmaking, prisons,traffic accidents and environmental depletion are profitable, while neighborhoods and family farms fail.

Where's a safer place to invest? Many now realize that unless the global economy is based on a world ofstable communities amid healthy environments, trading stable currencies, then bank accounts are justworthless big numbers. Getting reliably rich means investing in community.

So let the big boys shoot craps with their billions­­ we can bring our pensions and savings home torebuild America, starting in Ithaca. Local wealth will make our city an outstanding place to raise kids andretire, providing steady friends, child care and home care; vacations & fun; good healthy food, water &air; civic beauty; least crime. Investors large and small can systematically create a mutual enterprisesystem providing us retirement equity transferable to other communities with affiliated programs.

Creating these communities, to ensure our personal security within a safer world, requires new kinds ofinvestment, managed by people we trust and control­­ fellow Philadelphians whose homes and jobsdepend on PRAISE local business development. New programs are beginning which will retain wealthlocally, stimulate thousands of creative jobs, meet all basic needs, share power with lower­incomeresidents, repair the environment, and distinguish Ithaca as one of the most beautiful cities in theAmericas.

The price tag for these programs, $110 million,was to have been raised from my MegaLottowinnings (July 6), but that door did not open.

Where else does $110 million come from?Roughly, that's one percent of total annualwages & salaries earned in Tompkins County,times ten years. It's three times the City ofIthaca's budget. It's the County's budget. It's 3%of Cornell's endowment. It's the wealth BillGates has gained on a good day. It's twominutes of additional federal debt.

How could we raise this money without relyingon the lottery or taxes? The PhiladelphiaRegional and Independent Stock Exchange(PRAISE) will enable a wide range of privateinvestors to invest safely in Ithaca to buildgenuine wealth and security. Everyone, rich andpoor, has some type of capital required­­ skills,tools, time, topsoil, property, cash. PRAISEpools this capital, defines program RFPs, issuesbonds and negotiables, selects contractors,provides grants and loans to the businessesdescribed below, monitors program progress,redeems bonds by issuing business notes,

defines the transferability of bonds.

Here are the details: What are guiding principles? How is PRAISE different than aCommunity Development Corporation? What companies does it invest in? What do investors get? How is the corporation structured? Who manages it? How is community progress measured?

What are Philadelphia's new economic indicators? How related to government? Conclusion How do we begin?

GUIDING PRINCIPLES? This Mutual Enterprise System retains and expands wealth to provide jobsthat clean the environment. It converts capital into harmless and beneficial efforts. It provides basicbenefits for all, and special benefits for investors. It transfers technological and economic power tolower­income residents, building relevant skills. Public benefit is personal benefit, whether we're rich orpoor.

HOW IS PRAISE DIFFERENT than a standard stock market or Community DevelopmentCorporation? * investments may be made with other than dollars

* repays investors and donors * repays with regional bonds/notes redeemable for services and goods * pays half of interest in advance * elects seats on the Exchange by community rather than by purchase or appointment * businesses are selected which rely on technologies manageable by neighborhoods rather thancentralized expertise/machinery, and which reduce pollution * businesses are selected which transfer economic power to community v. agencies which help the poorstay poor * relies on community­based market indicators set by the Securities and Ecologies Commission (SEC)rather than narrower profit/loss measures * monetizes tools, skills, crops, soil, volunteer hours, labor hours, development rights transferred(incentive for buyer as well as seller), negawatts, restraint of childbirth, locally­made warranty * regulates transfers of negotiables/bonds among the PRAISE programs as services available.

WHAT DO INVESTORS GET? Transferable equity in community enterprises that provide securesources of food, fuel, housing. Interest earned is community interest, in order to provide investorsimmediate return, fun, food, health, housing, keys to city, gratitude, inheritance, retirement security, inthe form of negotiables, bonds, services, goods.

Credits issued are valued according to priorities set by PRAISE.

Investors gain ownership that's anchored to region to benefit a community which includes themselves.Stocks in such companies transferable benefits to affiliated companies elsewhere.

They receive community Interest in the form of discounts (in advance) & services (including municipalnon­utility), standard accrual, authority and honors. Largest investors are repaid not only directly by direct investment, but by the new markets rising fromenergy efficiency, discretionary spending, and ecotourism. Thus, ultimately, investors get to live well in a good community. They provide a heritage for theirchildren and grandchildren. They serve America and the world. EXAMPLE: Joe buys $500 of four­year PRAISE bonds. He receives immediate 8% CommunityInterest ($40) in the form of discount (>25%) coupons provided by local businesses which themselvesreceive long­term PRAISE bonds at half the value of the discount given. EXAMPLE: Jessie volunteers 50 hours installing insulation and receives $500 of PRAISE bonds.Interest and principal are repaid as above. EXAMPLE: Ephraim sells a building to PRAISE for $150,000 of PRAISE bonds. EXAMPLE: Elana transfers property development rights valued at $50,000 to PRAISE for a taxdeduction plus $10,000 of PRAISE bonds.

As PRAISE businesses develop and issue their own store notes (regulated by PRAISE), these investorsmay select to redeem some of their PRAISE bonds for store notes, or negawatts, or local currency, atprinciple + another 8% interest ($40). Total interest 16%.

The same applies to those who invest volunteer hours doing work needed by any PRAISE business.Hours of labor are paid with PRAISE bonds redeemable for PRAISE goods and services as available.

WHAT COMPANIES? Energy conservation is the foundation of economic development. Millions ofdollars yearly kept in Philadelphia, not paid to PECO, is money which can be spent here to stimulate newenterprises and jobs that serve our broader aims. Other basics, like food, water, housing, health care andtransportation are top priorities.

FUEL Insulation: countywide would cut our heating/cooling bills by over 80%, giving us discretionaryincome to support local businesses & farms, thus creating new jobs & strengthening local culture. Thefoundation of economic development. * Superwindows are translucent walls with R20 and higher. * Cogeneration uses nearly all of otherPRAISE wasted natural gas and heat. * Retrofit of wall and attics cuts heating/cooling bills by 80%. * Alt energy co­ops: solar, wind, hydro * Urban Woodlot/Forest * Depaving

FOOD growing locally and converting harvests into pasta, canned goods & dehydrated stock. * Food Processing Center: expands local agriculture by enabling farmers to grow for more than theseasonal market. * Bulk Food Center sells the above below commercial rates * Edible Parks and orchards invite free harvest.

WATER * Waterless Toilets: replace toxic sewage sludge w/clean, sweet­smelling fertilizer. No more poopinginto clean water. * Water Recharge Basins insulate us from drought.

TRANSPORT Trollies: connecting neighborhoods car­free. More than transportation, ultralight rail carscan be handcrafted w/inlay wood, stained glass, neon Liberty Bell, musicians on board. Big boost totourism & transit. * Bike lanes & paths would allow us to move safely without traffic jams & pollution. They permitemergency vehicles to move freely. * Bicycle HPUV manufacture * Street Reclamation

HOUSING: Ownership stabilizes neighborhoods, strengthens community participation. Co­housing &Retirement Co­ops: makes life less costly, more energy­efficient and more friendly.

JOBS & TRADE * Import Replacement Center: barter, trade, bank: connects regional skills & tools to create flexiblemanufacturing networks that capture contracts. * Re­Use Center & Warehouse capture useful goods and materials that would be tossed into dumps.

* Re­Manufacturing Center utilizes component parts from non­reusable items * Incubator for community­based ecological enterprises reduces operating costs for each enterprise * Retail outles for prototypes test markets the above * Dream Come True Job Center connects people to the regional resources that make our wildest hopesreal.

HEALTH CARE Alternative healing center rely on natural strength and remedies to promote wellness,prevent illness, and revive. * Health Fund allows us to self­insure, keeping $50 million/year insurance payments in this countyinstead of wasting it on HMOs. * Medical/dental clinic co­op/s provide free care for low­income residents.

EDUCATION * Teaching the above refines and spreads these processes * Community meeting spaces for congresses ensure fullest public participation

CULTURE/TOURISM Art: mosaics, murals * Theatre * Music * Poetry

HOW IS PRAISE STRUCTURED? Guided by elected board of directors subject to referenda initiated by investors or community.Management is organized so that community has direct intervention, expertise is rotated rather thanentrenched, new expertise develops reflecting ever­changing circumstances, main incentive is service. * each shareholder has one vote regardless of investment size * each community member has one vote * democratically elected boards * Celebrate citizens' right to referendum, recall and congress (special meetings). Constrains tendency ofany organization to become bureaucratized and ingrown, serving staff more than the public. Staff mustagree to set examples: to be paid regional credits, live simply, compensated by continual revolution * Local woodlots and wetland larger than 440ft.sq. have total 25% of votes on any proposal to cut ordrain them. They vote no on such proposals.

EACH BUSINESS AGREES TO THE FOLLOWING: 1. maximum salary 2 times lowest paid. Maximum pay 2 times livable wage. Management and staff aremotivated by mission, satisfied with right livelihood, paid in­kind & regional credits 2. employees must reside within the community 3. local sourcing: RFP for machines, raw materials, design, labor to maximum possible

4. adaptive re­use of buildings. No new footprint or paving expansion. 5. redeem PRAISE stock 6. one vote per resident stockholder 7. one vote per resident 8. board term limits: former voting members invited to remain as elders 9. subject to shareholder and community right to referendum 10. businesses can borrow against the general fund and repay it as donated in sequence or sell services 11. provide public accounting of credits issued 12. redistribute to PRAISE upon dissolution 13. links to related programs worldwide

Each business could operate with separate 501(c)3. But under PRAISE umbrella, they 1. coordinate skills, tools, staffs, urban land use 2. share grants, attract investors 3. issue/redeem credits interchangeably among themselves to broaden return on investment andattraction of bonds 4. gain greater cultural impact as part of larger process: 5. share powers of CDC in NYS

HOW IS COMMUNITY PROGRESS MEASURED? The SECURITIES AND ECOLOGIES COMMISSION (SEC) defines, valuates, and compilesindicators of local economic health, including such measures as: small farm base, soil depth & rainfall;shopping locally; population stability, birth rate & age distribution; insulation & fireproofing; solar, wind& hydro generation; bike & transit useage; employment & crime. Creates a monthly index based on theabove.

SEC ventures a specific formula for calculating an indexed increase or decline of sustainable localeconomy, based on these indicators. Valuations are weighted relative to one another according tolongrange communitywide impact. They are constantly adjusted to create a more full and balancedportrait of the local economy. The SEC database plugs in the numbers, calculates values, subtotals andtotal. Raw data are obtained by regular arrangement with relevant agencies or through FOIA. Some arefixed infrastructure calculations; others change monthly, quarterly, semiannually, annually or decenially.Best estimates may be sufficient. See Philadelphia's New Economic Indicators

SEC issues a biennial Seventh Generation report, projecting the impact of trends upon Philadelphians200 years hence. SEC submits suggested indicator revisions for public discussion.

The five members of the SEC are elected to three year terms. Values may be updated by local universityclasses, and other volunteers.

GOVERNMENT RELATIONS: gradually taking over certain government functions on a nonprofitdirect democratic basis; volunteers earning community equity replace taxes collected by force. To theextent govt approval has been mandated to establish, fund and regulate, it's essential to have publicofficials and staff who welcome changes of these types. PRAISE seeks to elect citizens who will providesupportive interface with state/federal.

CONCLUSION: Through PRAISE investment, Philadelphia becomes fully democratic intentionalcommunity where privacy and ownership are secured, while social spaces are plentiful. Most citizensparticipate as neighbors in mutual aid associations which entitle them to free and low cost health care,fresh local organic food, living in homes which are so well insulated that costs for heating and coolingare mild. Philadelphians are able to get around town on foot, by bike, trolley, buses. Streets safe and quiet

but for children playing. Mosaic sidewalks and murals. Cayuga Lake becomes so clean again that it's fullof fish for those who eat them.

Taken together, these will allow us to relax in a beautiful, exciting community, raising the standard ofliving while lowering the cost of living & setting examples for the whole country. Philadelphia willbecome a vast satisfaction to residents and powerful example to the world.

HOW DOES PRAISE BEGIN? * public meeting to form 501(c)3 to operate within Pennsylvania Associations Law and Federal SECregulations * create bylaws * elect board * solicit donations and investments * prioritize utilization of funds * issue RFPs to form new businesses * SEC public meetings elect first members and gather data

REQUESTS FOR PROPOSALS In all cases, priority to local workers and materials, local/regionalmanufacture, accepting regional/local credits:

ENERGY GENERATION & CONSERVATION to provide fuels w/out global warming: ­­­INSULATION * windows: >R19: standard & irregular sizes, export projections * walls: >R50: most durable yet biodegradable, lightweight, nontoxic, water­ & fire­resistant * attic: >R50: most durable yet biodegradable, lightweight, nontoxic, water­ & fire­resistant * heat exchangers ­­­SOLAR ELECTRIC (NISEG) RFP: photovoltaic arrays, collectors, shingles: maximum efficiency,durability, kwh cost, least toxic manufacture: inputs & wastes, installers ­­­WIND ELECTRIC ­­­WIND PUMPING ­­­HYDROELECTRIC ­­­COGENERATION: district/neighborhood/business/institutional HVAC ­­­NATURAL GAS IN CITY RFP: locate, define capacity, define quality, equipment for filtering,calculate 500­year supply ration, define distribution district for maximum efficiency

TROLLEY: More than transportation, ultralight rail cars would be handcrafted w/inlay wood, stainedglass, neon Liberty Bell, musicians on board. Big boost to tourism & transit. * RFP: installation and maintenance of standard guage trackage, installation and maintenance of electricwires, staff (conductors, repair, maintenance, promotion), garage & shop, tools & spare parts, signage,promotion, insurance, dedicated hydroelectric, cogeneration, district, elected Philadelphia TrolleyAuthority board: grants, referenda

FOOD ­­­FOOD PROCESSING CENTER RFP ­­­BULK FOOD CENTER RFP ­­­URBAN ORCHARDS RFP

COMPOST TOILETS * RFP: single family, duplex, apartment building w/NSF approval, piping & solar­powered venilators,installation, monitoring

WATER RECHARGE BASINS * RFP: locate, define capacity, design spreading systems: wells, pumps, EIS scope: stability of strata,salinity impact

CO­HOUSING RFP * retrofit design & costs to join adjacent houses, materials inventory: local materials, soundproofing,limited equity

SOUNDPROOFING enables people to live at greater density with less stress. * RFP: lightweight, ease of installation

IMPORT REPLACEMENT CENTER

Community currencies could donate local money at­cost to local government & nonprofits, enablingmillions of dollars of services to be provided without raising taxes & without paying interest on bonds.HOURS would be welcome everywhere when government agrees to accept them for tax payment.

PhilaHealthia

The author is a consultant for community economic development. Your comments and suggestions arewelcome: paul5glover@yahoo.com

HOME