5 criteria to help you choose the best development partner
For First Nations pursuing real estate and economic development opportunities, choosing the right development partner is one of the most important decisions you will make.
The right partner can bring experience, capital, relationships and expertise that help move a project forward while strengthening the Nation’s long-term position, and the wrong partner can do the opposite. They may prioritize speed versus due diligence, short-term returns over community interests, or their own objectives over the Nation’s vision. Once a partnership is in place, unwinding it can be difficult, costly and disruptive, so, what should First Nations look for when evaluating a potential development partner?
Alignment
A strong partner should be interested in understanding what the Nation wants to achieve and establish clear expectations from the beginning before talking about what they can offer.
That means asking questions such as:
What are the Nation’s long-term economic and community objectives?
What does success look like beyond financial returns?
How does the project fit within the Nation’s broader development strategy?
What does the Nation want to own, control or retain over the long term?
How will decisions be made throughout the project?
If a potential partner brings a pre-determined project to the table and tries to convince the Nation's leaders of its merits, there is a high probability they will not be open to the reciprocity of exchange required to develop a project that is not grounded in the Nation's interests.
Transparency
While real estate development involves significant financial, legal and operational complexity, a Nation should never have to piece together how a proposed partnership works.
A good development partner will openly discuss:
How the project will be financed
Who is contributing capital and how much
How risks and returns will be allocated
Who owns what
How decisions will be made
What fees and costs are involved
What happens if the project encounters challenges
What happens if one party wants to exit
If answers are vague, overly complicated or continually deferred, be cautious and ask for clarification. Transparency is an important part of protecting the Nation’s interests, but beyond that, it demonstrates that the partner accepts and embraces the Nation’s knowledge and vision.
A dedicated partner willingly comes to the table with their portion of the knowledge and information that will make the partnership a collaboration.
Relevant experience over general experience
A long list of completed projects can be impressive but more important is whether a prospective partner has experience that is relevant to your project and your circumstances.
Consider the following:
Have they worked on projects of a similar scale?
Have they navigated complex approvals, financing and construction?
Do they understand what it means to work with and for First Nations?
Have they worked respectfully within Indigenous governance structures?
Can they demonstrate what happened after the project was completed?
References should go beyond asking whether a partner completed the project and instead ask what it the lived experience of the project team was when working with them. Did they communicate openly when things became difficult, honour commitments and co-create solutions, set clear expectations, and respect the partner’s decision-making authority and style?
Past behaviour can tell you a great deal about future relationships.
Respect for governance is non-negotiable
For First Nations, development decisions exist within a broader governance context, and a development partner needs to understand that community leadership, economic development teams, legal advisors and other stakeholders may each have important roles to play.
A partner who sees governance as an obstacle to getting a deal done may create problems long before construction begins while a strong partner recognizes governance as part of the foundation of a successful project. They make room for community engagement and decision-making, understand that building trust takes time and do not pressure leadership to make decisions before the Nation has the information it needs and has followed the process that works for their community.
Red flags to watch for
It can be difficult to identify the below when working with partners that seek to cover up their intentions by presenting themselves as the ideal partner. Centering the Nation's values and community-based knowledge can help them see past the facade that some potential partners might try and create. A credible partner should not:
create urgency before understanding the opportunity
promise certainty in an uncertain business
limit questions
focus on what they can get from the Nation
give conflicting answers on what the Nation is asked to contribute and what it will receive in return
A development project may have a defined construction timeline, but an honest partnership can last much longer. That’s why being aware of compatibility is incredibly important.
In it for the long term
The best development partners bring a project to completion successfully but more than that, they are helping create an asset, opportunity or economic pathway that may have significance for the Nation for generations. That requires humility, transparency and trust, and respect for governance and community priorities.
We believe First Nations should not have to choose between economic opportunity and protecting their long-term interests - the right development partner can help them achieve both.