The Baileys Trail System Project: Case Study
Why did this project happen? Access to nature, outdoor recreation and participation in group activities has a strong connection to civic cohesion, mental wellness and overall health. Recognizing this, several funders in the Athens, OH region came together to open up access to natural resources.
The mission of the Baileys Trail System, which when completed will be an 88-mile mountain bike-optimized trail system on the Wayne National Forest in Athens County, Ohio, is to integrate conservation, outdoor recreation, and economic development to strengthen and inspire communities in Southeast Ohio. The trail system has been guided by some of the industry’s best designers, and while a portion of the trail has already been completed, the remaining construction is continued by professional trail builders
What existing assets did the project leverage? As an asset-based community and economic development project, Baileys Trail System “takes advantage of the natural resources we have here,” said Kerry Pigman, Executive Director of the Athens County Foundation. “For far too long, our region has been plagued by extractive industry, and this is [a project] that really builds on the natural and cultural assets that we have… it’s intended to lift up all of the communities that touch the trail system.”
This project exemplifies the collaborative efforts that AFN works to facilitate and encourage across its network. Baileys Trail System is supported by a revenue share investment fund that two AFN members, the Athens County Foundation and Sugarbush Valley Impact Investments put together, along with local impact investor Geoff Morgan, for the Baileys Trail System enterprise.
“One thing that’s so incredibly important for [AFN members] is that we have to be able to show examples of successful ways to invest locally, [so that] organizations, foundations with endowments and aligned family offices, and even national funders can invest locally with confidence,” said Eli Flournoy, Executive Director of Sugarbush Valley Impact Investments. “There is a ton of philosophical support for impact investing, and putting all of your assets to work in your local communities… in order to be able to do that, we have to have vehicles, partners, and entities that people can trust and be confident that by placing investments in these entities, they can feel like they are doing the fiscally responsible thing.”
How did the investment strategy work? This investment is structured as a working capital bridge loan so that the money can be used as it’s needed, not requiring all capital to be committed nor all interest paid from the start. The Athens County Foundation has provided the capital thus far, investing early on in two years of planning work, and Sugarbush Valley Impact Investments and Morgan will pay out later as the capital is needed, providing flexibility and longevity to the project.
Flournoy added, “the broader impact of [Baileys Trail System gaining state and national recognition was that] this project became a signature, branded project for everyone in the state of Ohio to point to and say this is exactly the kind of thing we want to do… we have the assets in place, and everyone rallied around it. The role that we were able to play [as investors] was to help accelerate and get the process ‘unstuck’ in the bureaucratic funding.”
In pursuit of a shared vision for stronger community cohesion, Pigman and Flournoy had previously co-founded the Impact Innovation Group, which serves Southeast Ohio and Southwest West Virginia. This entity became a council of advisors who want to support entrepreneurial investment and hear funding pitches from start up or expanding local businesses and social enterprises. One presentation was from the Athens Wayne Outdoor Asset Development Corporation, the nonprofit partner of the Outdoor Recreation Council of Appalachia (ORCA), a council of governments, about the Baileys Trail System project. This enabled the Baileys Trail System project to receive funding from these private investors and also manage future revenue-generating activities of the trail system project.
How does this relate to broader community improvement? Communities along the Baileys Trail System are seeing increased tourism, contributing to economic growth and improved environmental quality. The towns and villages that touch the trail system are seeing increases in grant and state investments to support infrastructure improvements because of the Baileys Trail System. Creating the trails and access points will also provide new job opportunities through additional expansion, maintenance, marketing, and events. This brings sustainable economic prosperity to the region, while keeping the ecological integrity of the area intact through restoration and protection.
The partners involved also anticipate, and will track metrics of, improved community cohesion as a result of the trail system that is easily accessible and has multiple entry points. Focusing on family friendly recreation, a significant section of the trail has been designed for beginning mountain bikers, trail runners, and hikers, along with a low-cost bike rental program for community members, reducing any financial barriers to this activity. Pigman went on to say that there is even talk of creating learning opportunities around the abandoned mine structures along the trail system.
How is the impact of this project measured? One of the biggest impacts of this project is not the money invested, but the symbolism of those within the community investing private dollars into this project. This commitment helped to leverage investment from the county. These early financial commitments demonstrated the community’s belief in this project, and through championing efforts by local government officials, Bailey’s Trail System then secured state and federal (ARC) funding.
When speaking of the long-term impact and sustainability of this project, Pigman said, “ORCA is envisioned to expand beyond the Baileys Trail system and beyond the current members of the council of governments. Conversations are happening around creating kayaking trails in surrounding communities, [as well as] hiking, biking, and running trails.”
ORCA is currently made up of representatives from the village of Chancey, the city of Athens, Athens County,and the city of Nelsonville, including the Mayor of the city of Athens, Steve Patterson, who is the president of ORCA and a champion of these projects. Along with these officials who supported this work, some crucial partners in this process include: Rural Action, ARC, Appalachian Investors Alliance, and many local actors including Athens Bicycle Club, Wayne National Forest, and other local advocacy groups and individuals.
“Baileys Trail is a cluster opportunity for the whole micro region… There's absolutely no reason why it shouldn’t be replicated in communities all across Central Appalachia. We’re really happy to have those relationships in place with [Invest Appalachia] and with others through the Appalachian Investors Alliance to see this kind of thing happen,” said Flournoy.