Eaton County Treasurer, Bob Robinson, announced the redevelopment of the old Lansing State Journal facility under PACE (Property Assessed Clean Energy). Mr. Robinson said that “the PACE energy efficiency financing program has proven its value for promoting economic growth in Eaton County.” This is the second PACE project in the county.
ProVisions, LLC, a leading real estate and economic development firm headquartered in Troy, Michigan, working with Eaton County and Delta Twp. has redeveloped the 93,000 sq. ft. former Lansing State Journal printing and distribution facility (where I-96 and I-69 converge). Renamed the ‘Delta Business Center,’ the site is now available for commercial and industrial use and they expect many new jobs will be created in the near term.
Consistent with ProVisions corporate policy of sustainable and energy efficient facility management, they have replaced the 1980’s era HVAC and lighting systems with modern, energy efficient systems using digital controls. According to Jim Newman, of Newman Consulting Group LLC, “Thanks to ProVision’s forward-thinking policies, we’re projecting significant energy savings as required by the PACE financing program.”
WHAT IS PACE?
Property Assessed Clean Energy (PACE) is a financing mechanism that enables low-cost, long-term funding for energy efficiency, renewable energy, and water conservation projects. PACE financing is repaid as an assessment on the property’s regular tax bill, and is processed the same way as other local public benefit assessments (sidewalks, sewers) have been for decades. In Michigan, PACE can be used for commercial, nonprofit, and multi-unit residential properties.
HOW DOES IT WORK?
A national initiative, PACE programs are instituted locally and tailored to meet regional market needs. Michigan lawmakers have passed legislation that authorizes municipalities to establish PACE programs. Every PACE program starts with the same parameters.
Can cover 100% of a project’s hard and soft costs for study and implementation of Energy Conservation Measures
Long-term, low-cost financing up to 20 years
Can be combined with utility, local, and federal incentive programs
Guaranteed ‘cash flow positive’ results
Voluntary for all parties involved
WHY IS PACE SO POPULAR?
Property owners love PACE because they can fund capital-intensive energy improvements with no out-of-pocket costs. Since PACE financing terms extend to 20 years or more, it’s possible to undertake deep, comprehensive retrofits that have meaningful energy savings and a significant impact on the bottom line. The annual energy savings for a PACE project is guaranteed to exceed the annual assessment payment, so property owners are cash-flow positive immediately. That means there are increased dollars that can be spent on other capital projects, budgetary expenses, or business expansion.
Local governments love PACE because it’s an Economic Development initiative that lowers the cost of doing business in their community. It encourages new and existing business owners to invest in the area, and creates jobs using the local workforce. PACE projects also have a positive impact on air quality, creating healthier, more livable neighborhoods.
Project Stats:
PACE District: Eaton County
Property Owner: Delta Business Center, LLC
Project Developer: Newman Consulting Group
PACE Market: Lean & Green Michigan™
Construction Manager: Continuum Services
Amount Financed: $718,035
Energy Conservation Measures: HVAC systems, LED lighting, fans
Each year, the project will eliminate 503,954 kWh of traditional electricity and 2,800 MCF of natural gas.
Greenhouse Gas Reduction: 507 metric tons annually
That’s like taking more than 105 cars off the road!
Cost savings over 20 years: $1,822,313
Source: NCG