ATLANTA RISING TO THE CHALLENGE.
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- Avis Woods
- 8 years ago
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1 ATLANTA RISING TO THE CHALLENGE
2 Atlanta Better Buildings Challenge Background Atlanta s Goal: To engage the local community to reduce energy and water consumption by at least 20% in participating buildings across Atlanta s central business district by 2020 and become one of the country s top sustainable cities. 2 georgiatransitconnector.org
3 Atlanta Better Buildings Challenge Background National competition initiated by US Department of Energy Joined in June 2011 as one of 3 pilot cities: Los Angeles, Seattle and Atlanta Mayor Reed launched program locally in November 2011 Now over 40 Community Partners (cities, states, school districts) representing 2 billion square feet 3 georgiatransitconnector.org
4 Atlanta Better Buildings Challenge Community Engagement 4 georgiatransitconnector.org
5 Atlanta Better Buildings Challenge Our Progress Completed building assessments for 20+ million sq. ft. Completed showcase project Atlanta Civic Center Westside TAD Grant Program/Commercial PACE Current commitment More than100 buildings 65,000,000+ square feet National recognition for 9% energy savings and complete data for 37 million square feet Participants meeting the challenge: 13 have exceeded 20% energy savings 6 have exceeded 20% water savings 5 georgiatransitconnector.org
6 Atlanta Better Buildings Challenge Our Competition 6 georgiatransitconnector.org
7 Atlanta Better Buildings Challenge Innovative Funding Mechanisms Grants to Green Westside TAD Grant Program Commercial PACE Clean Energy Atlanta 7 georgiatransitconnector.org
8 Grants to Green Grants to Green is a collaborative initiative that provides metro Atlanta nonprofits with environmentally focused knowledge and funding to improve building energy efficiency. Grants to Green is a partnership between The Community Foundation, Southface and the Kendeda Fund. Assessment Award (service valued at $4,000) Energy and water use audit performed on existing buildings or design review for new construction Implementation Award Cash grant of up to $50,000 to fund facility renovations or upgrades; requires a financial match Must have annual operating budget of $250,000 Must own or lease building with at least five years remaining on the lease For complete eligibility guidelines and more information, please visit: Green.aspx
9 Westside Tax Allocation District Supports Atlanta Better Buildings Challenge August 2013
10 Invest Atlanta Economic Development Focus Invest Atlanta Serves as economic development agent for City of Atlanta Focuses on creating jobs and enhancing global competitiveness Provides financing to support revitalization efforts Tax Allocation District Funding: One of the City s most important economic incentive tools Commonly known as Tax increment financing (TIF) Atlanta has ten (10) Tax Allocation Districts TAD funding is derived from increases in property values when new development in a district increases tax revenue
11 City of Atlanta Tax Allocation Districts Atlanta has 10 tax allocation districts designated redevelopment areas Westside and Eastside TADs cover Downtown Atlanta $8 million in Westside TAD funds set aside to support Atlanta Better Buildings Challenge
12 Linking Energy Efficiency to Economic Development Invest Atlanta s goals for energy savings projects: Upgrade older buildings with new technology Attract tenants and decrease vacancy Create jobs Four diverse buildings selected as priorities for TAD funding: 1. Walton Building historic building being converted to hotel Peachtree 32-story office building 3. English Avenue Yards warehouse and industrial loft campus 4. American Cancer Center office building with interior atrium
13 Invest Atlanta Support for Atlanta Better Buildings Challenge Identify Priority Buildings Hire Firms for Energy Audits Grant Implementation Funds 13
14 Atlanta Better Buildings Challenge $8 million allocated from Westside Tax Allocation District Westside TAD Funding Amount Status as of Aug 2013 Atlanta Better Buildings Challenge $8.0 million Set aside to support program Energy Audits $0.5 million Used to audit 4 priority buildings Implementation Funding $1.2 million One grant awarded to date Amount Spent To Date $1.7 million Funds Remaining $6.3 million Reserved for priority buildings
15 Contact Dale Royal, Senior Project Manager
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17 HISTORY GROWING MODEL
18 YGRENE FUNDING VS. CONVENTIONAL FINANCING 100% FINANCING, 20-YEAR TERM With long repayment terms DOES NOT IMPACT CAPITAL BUDGET With company operations and capital projects CAN SOLVE SPLIT INCENTIVES PROBLEM Owner investment is passed straight through to tenant as property tax increases PROPERTY TAX, OFF BALANCE SHEET Valid under state law NEITHER COMPANY CASH NOR COMPANY DEBT CAPACITY REQUIRED
19 PROGRAM PROJECT FUNDING MARKETING & OUTREACH CONTRACTOR TRAINING DISTRICT MANAGEMENT SOFTWARE
20 PROGRAM NO COST TO CITY
21 PROGRAM
22 PROGRAM
23 PROGRAM
24 HOW IT WORKS
25 UNDERWRITING LOANS < 85% OF BUILDING VALUE
26 UNDERWRITING CURRENT ON PROPERTY TAXES FOR 3 YEARS CURRENT ON MORTGAGE FOR 3 YEARS NO BANKRUPTCY FOR 3 YEARS NOT BASED ON CREDIT
27 UNDERWRITING
28 FEES FEES for Projects Include: 3% Construction Fee on all projects $175 Application Fee Miscellaneous District Fees ($650) Prepayment Penalty Fee (owners) 3% All of these fees can be rolled into the funding as a soft cost (also includes architecture, engineering fees)
29 1 ST MORTGAGE HOLDER LENDER NOTIFICATION FORM TAX IS SENIOR TO MORTGAGE
30 IMPLEMENTATION MEASURES ENERGY EFFICIENCY GENERATION WATER CONSERVATION? OTHER CUSTOM MEASURES
31 ECONOMIC BENEFITS $100 MILLION IN PACE ACTIVITY YIELDS PROPERTY OWNERS Minimal out of pocket costs Lowers utility bills Increases property value Reduces CO 2 Frees up capital for other investments MUNICIPALITIES Creates jobs Meets environmental goals Zero general fund risk Financial Stimulus Permitting Fees
32 Questions QUESTIONS? Ben Taube
33 LAUREN DUFORT CENTRAL ATLANTA PROGRESS