7.24.2013 ann arbor pace big boy case study
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The owners of a Big Boy restaurant in Ann Arbor, Michigan were looking for a way to finance energy efficiency upgrades and new cooking equipment that would save on utility bills and reduce operating costs over 10 years. They used Property Assessed Clean Energy (PACE) financing, which offered low interest rates and long repayment terms. Energy assessments identified $88,488 in upgrades, financed through PACE at a fixed 4.75% rate over 10 years. The project is expected to reduce annual utility costs by 19% and save $8,300 per year.
7.24.2013 ann arbor pace big boy case study
- 1. The Challenge Home of the Original Double Decker - a famous Big Boy restaurant required some energy efficiencyupgrades.Propertyowners,JoeDiequezandJonathanMarsh,werelookingforan innovativewaytofinancebuildingimprovementsandreplaceinefficientcookingequipment. Likemanysmallbusinessowners,theywerelookingforalong-termfinancingsolutionthat would ensure that building improvements pay for themselves in 10 years. Project goals included: Improve overall building performance and comfort Upgrade kitchen equipment Reduce utility bills Reduce operating costs Improve the environment Case Study No. 2 Big Boy restaurant takes advantage of PACE financing. The Solution PACE was an obvious solution for the Big Boy owners. The program offered low-cost, low- risk capital and an opportunity to be good stewards of the environment. Sustainability is a City-wide priority in Ann Arbor. In fact, City of Ann Arbor Mayor John Hieftje is an avid supporteroftheprogram:OurcitysClimateActionPlancallsforreducinggreenhousegas emissions8percentfrom2000levelsby2015,andtheseprojectsandotherslikethemare animportantpartofhelpingAnnArborreachitssustainabilitygoals.Thefollowingunique advantages of PACE financing motivated Big Boy owners to act: Long-term financing (up to 10 years under Michigan PACE law) Low interest rates Greater long-term property value because of energy efficiency Preservation of borrowing capacity Project Success Experienced program administrators conducted a preliminary analysis of utility bills and building credentials and determined that the Big Boy property was an excellent candi- date for PACE financing. While the terms of the program required that a pre-qualified auditor perform the energy analysis, the property owners were free to use contractors of their choice to complete the project. Ann Arbors PACE program, administered by the Clean Energy Coalition, ensured that Big Boy owners, as all local business owners, received clear and effective education about energy efficiency improvements proposed by the auditor. Lender consent was a swift and simple process as the lender recognized the advantages of PACE. As a result of this project: Annual utility costs are expected to be reduced by 19% $8,300 in annual savings PACE in Ann Arbor Ann Arbors PACE program enablespropertyownersto save energy using a special propertyassessment.Ifyou want to update your build- ing at a low fixed interest rate with a 10-year term, contact the program. Contact Information Ann Arbors PACE Program 734.585.5720 x15 pace@a2gov.org www.a2energy.org Project Financing PACE Assessment: $88,488 Term: 10 years Rate: 4.75% fixed Building Details Size: 5,000 sq. ft. Year built:1981 Assessed Value: $500,000 Improvements Building controls system High efficiency HVAC Lighting system overhaul ENERGY STAR cooking equipment HVAC overhaul 息 2013 PACENow PACE