The Greening of a CEO
Jeanine Campbell is a progressive CEO who cut her teeth at conventional businesses before she found a way to incorporate her personal beliefs into a business devoted to sustainable construction projects.
The entrepreneur has embraced the sustainable building model as her own with the Mill Valley, Calif., company TLC Capital Solutions, a certified green business that bridges the gap between investors and developers for high-performance green projects.
She counts herself lucky that her passions parallel her profession. She is anxious to lure more construction projects over to the green side and believes that sustainable building practices will be the paradigm for builders everywhere. She puts her money where her opinions are, contributing a portion of her company’s profits to deserving environmental causes worldwide.
The mission statement of TLC (Trust Loyalty Commitment) is simple and to the point: “To contribute to the success of real estate developers committed to adopting cutting edge, sustainable business practices, materials, systems and technologies by providing uniquely targeted financial solutions and industry expertise.”
Campbell shared her ideas and opinions about green projects, resources and solutions with Green Building News.
Q: How do you want people to perceive green building?
A: We’re trying to show people that green is sexy; that green is more, not less; that we are not giving anything up to be environmentally friendly. People have to feel that sustainable building and green practices aren’t being forced on them — that’s when they are going to begin to ask for it. People think green is some foreign theory they don’t understand. The public needs to understand what are real sustainable practices and what are just paler shades of green marketing ploys.
Q: Where did you learn about construction financing?
A: I started in the lending business in the early ’80s. I went to Cal Poly to study different classes relating to the business — like underwriting and appraisal — but my real training came from being in the trenches.
Q: How did you get into the real estate business?
A: I worked with my uncle as a real estate loan processor. From there I was offered a position as an underwriter and moved up the ranks very quickly. I was a corporate underwriter at 21 years old. A couple of years later, I had underwritten over $1 billion in residential loans. In 1989, as the real estate business started to go into recession, I went to work for Letro Products, which manufactures pool cleaners, and Campbell Properties, a real estate holding company. That’s when I started my consulting firm, which concentrated on the more traditional side of real estate development.
Q: How did you get into the green real estate market?
A: I saw a need for change and wanted to get into the green market to make a difference. I was appalled at the way developers were developing land. It was simply a matter of money and business as usual. I didn’t feel that they were being responsible and respectful in the way they were using the land; they lacked consideration for animals. I started moving in the direction of doing old things in a new and friendly way, and I started to drive some of my profits from it into the non-profit sector.
Q: How do you attract investors to sustainable building?
A: The investors are starting to understand that green makes sense from the standpoint of dramatically lowering long-term operating costs. I recently met with one of the banks I do business with and was told that going green was overall a better investment because of lower operating costs, faster rental rotation, better marketability and healthier properties.
Q: How important is crunching the numbers and getting them to work?
A: I have a highly skilled team of analysts that look at costs to make sure that they are in line. The numbers have to work because banks and the investors are going to crunch my figures. We do a strict analysis on any investment, as well as a parallel look to insure that the green aspects are at a high level.
Q: Are you looking for investors?
A: Only those who are interested in doing a joint venture with green projects and who share the values of our clients. On our Web site, we have a place for accredited investors to register: www.tlccapitalsolutions.com.
Q: Do you find that an investor realizes a better return when selling a green property?
A: It’s a little early to track that because green has not been on the market long enough, but the market is definitely heading that way. In Europe, the market sees sustainability as the standard. The American market has not caught up with that thinking yet.
Q: In terms of a time frame, how long before we catch up?
A: That’s driven by the market demand. The marketplace will offer what the consumer wants. It’s a matter of the consumer becoming educated and creating demand. I think in the next two to three years we are going to see many more sustainable products. LEED already has three pilot programs created for the residential side. Look at San Francisco — all the city buildings are going to have to be LEED-certified. Sooner rather than later, LEED will be the industry standard.
Q: Why have you characterized TLC as an ‘ultra green’ company?
A: We try to achieve the highest level of energy efficiency and product sustainability, not just by offering the minimums, but by looking at how waste is processed. We buy carbon credits if necessary, or better yet, plan a carbon-neutral building.
Q: Isn’t using carbon credit borrowing from Peter to pay Paul?
A: There are many opinions about carbon credits. First, people should reduce energy use by buying more efficient products; second, recycle; and third, buy carbon credits to offset the carbon emissions of transportation and their home. I don’t think it’s a solution, but it’s a way of doing what you can when you can.
Q: What is the cost difference between green and traditional building techniques, and when will that gap close?
A: There could be no difference at all, or green buildings could cost up to 15 percent more. I think in two to five years, we will have this all figured out. All the green consultants I know are extremely busy. A really good consultant can drive the costs down and actually show where green can help pay off costs very fast. For example, they are finding that solar energy, with the rebates, can achieve payback within three years. We have specialists that do analysis and detail paybacks.
Q: Is your business getting easier now that people are becoming more aware of green methods of doing business?
A: It’s still a niche market. Many developers still use the old-school process of doing things. They have been doing ‘stick built’ for so long that they are not open to change. It’s a devolved laziness to do things the traditional easy way. But many builders are evolving, taking the initiative and have the desire to do things differently.
Q: What was your first project?
A: I worked with a company called Green Sandwich Technologies that manufactures a structural concrete insulating panel. They build walls that are foam on the inside and wire on the outside for concrete. They came to me to discuss a strategic alliance. That’s when I became interested in green. I realized that I could work on a project that was good for the environment and had a smart business aspect to it.
Q: What are you working on now?
A: We have a lot of irons in the fire. One of the most recent projects is with a family business, Campbell Properties. We have plans for a mixed development on the Sacramento River: a beautiful high-end project adjoining 121 acres of parks and trails. We’re in the planning stage of a LEED Platinum project that will be state-of-the-art and the first of its kind in Redding, Calif. We are also working on a green hotel and a green casino in Nevada, and a large ultra-green project in Oregon.
Q: How do you evaluate a possible client?
A: Most of our business is by referral; they generally have to know about me from other people. We have to make sure that their projects meet our criteria and that we can recommend the project to our investors. We do an analysis first because we aren’t a company that just raises money. We work as green coaches and consultants. We aren’t interested in doing business with contractors who green wash: who do as little as they can and call it green. We are interested in taking the project to a level of a certain standard, to achieve a LEED rating.
Q: TLC also has an altruistic vein. How does that work?
A: We have worked with low-income housing. We give back a certain amount of profits to environmental causes, such as is the Pachamama Alliance, which works with indigenous people to help protect their rain forest environment in Ecuador. I am a member of the advisory board of the Presidio School of Management, which is a college in San Francisco with a terrific MBA program in sustainable use. I’m in the process in setting up a donation and a grant program to help recruit and subsidize tuition for the school.
Q: What should everyone do to help sustain the environment?
A: What we need to do is slow down the carbon emission monster. We can’t stop it completely, but we have to make significant changes, from industry and cars, to buildings and the carbon footprint that is in every home. Our company, TLC is carbon-neutral. What I have heard from experts is that if we don’t make those changes, something drastic may happen. But if people become educated, aggressive and proactive, we can make positive changes.