Creating Better Buildings with PACE Financing AGENDA PACE

Creating Better Buildings with PACE Financing

AGENDA • PACE – How To • Better Buildings Challenge • Portfolio Manager and Data Sharing • Questions 2

• Energy efficiency makes older cities more competitive • Investing in energy efficiency means: • • Local jobs Better Buildings Lower operating costs Better local air quality • Cities need economic development tools to support existing buildings, not just new development. • Reallocate budgets currently wasted on excess energy into building improvements that improve living conditions Why Energy Efficiency is Important 3

Business Program With PACE Financing and Partner Contractorsenergy efficiency projects are: EASY AFFORDABLE MAKE ECONOMIC SENSE PACE FINANCING

Property Assess Clean Energy (PACE) Financing provides loans to participating commercial building owners to make energy efficiency, water efficiency, and clean energy projects like: Business Program • • • New boilers New chillers Advanced building controls Solar Energy Lighting Other permanently fixed energy-saving improvements PACE FINANCING

PACE makes up to $100 million in loan capital to Milwaukee building owners via public/private partnership Business Program • Loans are provided by private investors • Payments for the improvements are collected from participating buildings by the City through a voluntarily- assumed municipal special charge • Special Charge is collected on the annual property tax bill Benefits to Building Owner, Tenants, and the

City of Milwaukee City remits payment to lender Payment via Property Tax bill $$$ to Owner Building Owner Energy Upgrades Performance Contract (Projects $250 k+) PACE Lender (Clean Fund, MEDC, others) Me 2 Participating Contractor PACE FINANCING- Square Dance 7

Traditional Capital Project Finance PACE Project • Financed by loan, budget • 20 year terms • 3 -7 year terms • Cash flow positive • Cash flow negative • Payback, life of equipment • Payback required, 3 -6 years • Upgrade over 5+ years • Upgrade whole building at once • Capital expense • No Down Payment • Financed by tax assessment • Operating expense (check with your accounting) • Pass through to tenants (check your lease terms) PACE FINANCING 8

ELIGIBILITY • Existing commercial building located in the City of Milwaukee • No property tax delinquencies in the past three years • No pending bankruptcy or administrative judgments • Max PACE project size: • 20% of Property Value (assessed value of current appraisal) for most commercial properties • 10% of Property Value for industrial or special use • Must use Participating Me 2 Commercial Contractor (listed at Smart. Energy. Pays. com/contractors) • Energy Savings Performance contract for projects $250, 000+ • Existing Lien Holder Acknowledgement PACE FINANCING 9

APPLICATION 1. Visit Smart. Energy. Pays. com for program information and list of Participating Contractors 2. Submit PACE Interest Form 3. Develop your project with Participating Me 2 Contractor 4. Submit PACE Application with defined project 5. Get lien holder(s) acknowledgement/consent 6. Close loan with City and Lender, such as Milwaukee Economic Development Corporation. PACE FINANCING 10

• Cut energy use by 20% by the year 2020 • Gain public recognition for your efforts • Attract tenants • Free tools to track and manage your energy use • PACE financing makes energy efficiency MAKE SENSE

10 pledges received, plus City government facilities 6. 5 million square feet city. milwaukee. gov/BBC

Better Buildings Challenge 13

Basic Information for Portfolio Manager Input Info • Benefits Property Address • Energy meter info (found on utility bill) • Building square footage • Building type • Optional info • Occupants • Number of PCs • Benchmark your performance against other buildings • Get Energy. Star® recognition • Manage a portfolio of buildings in one spot • FREE online training • Questions, contact Andrew Falkenburg at 286 -8317 Portfolio Manager Setup 14

Once on the contacts page click “Add Contact” Once you have found After logging into you account click “Contacts” the DOE-BBCMILWAUKEE Username click “Connect” Search for the Username “DOEBBCMILWAUKEE”

Choose “Read Only Access” then click “Share Property(ies)” Repeat Process for the City of Milwaukee, Username: “City-of-Milwaukee” Once you’ve connected to BBC you are Select the properties -DOE- to the BBC from the submitting Properties Menu. Choose MILWAUKEE, “BBC Account, Milwaukee” click the from your Contacts “Sharing” tab and “Share a

Erick Shambarger Deputy Director 414 -286 -8556 eshamb@milwaukee. gov city. milwaukee. gov/sustainability