ATLANTA RISING TO THE CHALLENGE www.atlantabbc.com
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 www.atlantabbc.com
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 www.atlantabbc.com
Atlanta Better Buildings Challenge Community Engagement 4 georgiatransitconnector.org www.atlantabbc.com
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 www.atlantabbc.com
Atlanta Better Buildings Challenge Our Competition 6 georgiatransitconnector.org www.atlantabbc.com
Atlanta Better Buildings Challenge Innovative Funding Mechanisms Grants to Green Westside TAD Grant Program Commercial PACE Clean Energy Atlanta 7 georgiatransitconnector.org www.atlantabbc.com
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: http://www.cfgreateratlanta.org/community-initiatives/current-initiatives/grants-to- Green.aspx
Westside Tax Allocation District Supports Atlanta Better Buildings Challenge August 2013
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
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
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 2. 100 Peachtree 32-story office building 3. English Avenue Yards warehouse and industrial loft campus 4. American Cancer Center office building with interior atrium
Invest Atlanta Support for Atlanta Better Buildings Challenge Identify Priority Buildings Hire Firms for Energy Audits Grant Implementation Funds 13
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
Contact Dale Royal, Senior Project Manager 404-614-8336 droyal@investatlanta.com
HISTORY GROWING MODEL
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
PROGRAM PROJECT FUNDING MARKETING & OUTREACH CONTRACTOR TRAINING DISTRICT MANAGEMENT SOFTWARE
PROGRAM NO COST TO CITY
PROGRAM
PROGRAM
PROGRAM
HOW IT WORKS
UNDERWRITING LOANS < 85% OF BUILDING VALUE
UNDERWRITING CURRENT ON PROPERTY TAXES FOR 3 YEARS CURRENT ON MORTGAGE FOR 3 YEARS NO BANKRUPTCY FOR 3 YEARS NOT BASED ON CREDIT
UNDERWRITING
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)
1 ST MORTGAGE HOLDER LENDER NOTIFICATION FORM TAX IS SENIOR TO MORTGAGE
IMPLEMENTATION MEASURES ENERGY EFFICIENCY GENERATION WATER CONSERVATION? OTHER CUSTOM MEASURES
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
Questions QUESTIONS? Ben Taube Ben.taube@ygrene.us 404.931.1518
LAUREN DUFORT CENTRAL ATLANTA PROGRESS LDUFORT@ATLANTADOWNTOWN.COM www.atlantabbc.com