Old Copley Hospital Redevelopment Project Gets $3 Million For Clean Energy — Largest C-PACE Deal in Kane County
Kane County and Illinois Energy Conservation Authority officials announced a win-win for energy conservation and economic development this week in the form of a $3 million IECA funding deal that will provide energy-efficient upgrades in the Avalon Heights development, formerly the Old Copley Medical Hospital campus in Aurora.
The IECA — an Illinois tax-exempt 501(c)(3) nonprofit organization — describes the funding measure as the largest commercial Property Assessed Clean Energy financing deal in Kane County history.
The C-PACE capital will finance energy efficient upgrades in the Avalon Heights development, which is transforming the abandoned 9-acre campus of the Old Copley Medical Hospital in Aurora into sprawling community development effort spearheaded by Aurora-based Fox Valley Developers, LLC in collaboration with local architects, engineers and contractors.
According to an IECA news release, the old Copley Hospital is considered East Aurora’s largest and most significant community-centered investment in decades. The complex will include 102 senior housing units, 53 supportive living units, a pharmacy, healthcare facility, surgical center and 1.4 acres of landscaped walking paths and parks.
In addition, it will be home to the new East Aurora School District 131 Headquarters.
- Read more about the project on the Kluber Architects + Engineers website.
Kane County Board Madam Corinne Pierog applauded the project, which was made possible by Kane Energy Efficiency Program, Kane County’s version of C-PACE.
“KEEP not only furthers Kane County’s commitment to sustainability and energy efficiency, it provides actual capital for businesses to realize savings on energy costs and encourages reinvestment in vacant or underutilized commercial properties,” Pierog said.
District 3 Kane County County Board member Anita Lewis said the Avalon Heights initiative is a great example of forward-thinking, environmentally friendly economic development.
“This project is in my district and my direct neighborhood,” she said. “It is very important to the residents in our area as this old hospital structure sat vacant and open for vandalism for almost 20 years. Now we will have a beautiful new school service center, green space next to a school that was only blacktop, housing and services.”
IECA President Mark Pikus said Kane County is leading the way in smart energy conservation in new developments.
“Kane County was the first county in Illinois to adopt PACE financing in 2018 and sign on with the IECA,” he said. “We are thrilled to continue our relationship with the county and be a part of the historic Old Copley Medical Hospital transformation and the revitalization of the East Aurora community.”
Enhanced Capital, a national asset manager that invests capital into small businesses, renewable energy projects and historic real estate rehabilitation, partnered with Fox Valley Developers, LLC to help finance the historic project through the IECA program.
“We are excited to play a role in the campus’ adaptive reuse and in strengthening the community,” said Ian McCulley, director at Enhanced Capital. “This investment supports Enhanced Capital’s active mission of job creation, introducing PACE financing to new markets and making a positive impact.”
Introduced in Illinois in 2019, C-PACE is an innovative financing tool that provides long-term, fixed-rate funding to private building owners for energy efficiency, renewable energy, water conservation, electric vehicle charging and resiliency projects to be installed in both existing or new commercial properties.
C-PACE financing is available in 37 states, including the District of Columbia. From 2009 to 2018, C-PACE programs have funded 2,400 qualifying projects for a total of $1.538 billion, while also creating more than 17,900 jobs.
The IECA is uniquely positioned to assist the region in establishing successful C-PACE programs that will support greater economic development activity, as well as contribute to developing high performing buildings through installation of energy efficiency and clean energy technologies.
The IECA is a not-for-profit organization that was formed out of a commitment to bring C-PACE program administration to the Chicagoland area.
For more information on IECA visit www.iecaPACE.org.
About The Illinois Energy Conservation Authority
The Illinois Energy Conservation Authority NFP, IECA, is an Illinois tax-exempt 501(c)(3) nonprofit organization that was formed out of a commitment to bring innovative PACE program administration to the Chicagoland area.
The IECA has compiled a team of partners, advisors and consultants with deep ties to the region, and five decades of experience in serving the commercial real estate industry as well as nearly eight years of experience in PACE around the country.
The IECA is uniquely positioned to assist the Chicagoland area in establishing successful commercial PACE programs that will support greater economic development activity, as well as contribute to developing high performing buildings through installation of energy efficiency and clean energy technologies.
C-PACE BENEFITS FOR PROPERTY OWNERS
- Up to 100% financing of eligible PACE Project costs and soft costs necessary to design, engineer, install and finance the project.
- Long-term, fixed-interest rates, up to the estimated useful life of the improvements (up to 30 years).
- C-PACE Projects reduce operating costs and increase property value.
- Ability to generate net positive cash flow on certain improvements in the first year.
- No personal guarantees – non-recourse financing.
- C-PACE assessments “run with the land,” therefore C-PACE does not accelerate or
become due upon sale.
- Property owner may pass through C-PACE assessment payments to tenants
(if allowed by the lease agreement).
- C-PACE assessments transfer upon sale to the next property owner.
- Reduces capital expenditure budget – upgrades paid through operating savings.
- C-PACE may qualify for off balance sheet treatment (consult your accounting advisor).
- Eligible measures cover broad capital and facility improvement needs that enhance the occupant/tenant experience and extends building lifespan.
SOURCE: C-PACE news release