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Salt Lake City – Celtic Bank recently funded a PACE bond with Los Angeles County in the amount of $6,860,000 for the New Constance Hotel located in Pasadena, Calif. Funds for the hotel will be used to install energy efficient improvements, including new HVAC and controllers, LED lighting, elevator motors and controls, window treatments, water systems and insulation. These improvements are estimated to save 207,488 kilowatt-hours per year in electricity and reduce water consumption by 3.2 million gallons. The closing of the New Constance Hotel PACE bond brings the total amount of PACE funding by Celtic Bank to $14.065 million.
"Most clean energy programs require taxpayer and government subsidies to make them economically viable,” said Jake Barney, CFO of Celtic Bank. “We are excited to participate in a program like PACE that utilizes private capital to fund clean energy improvements that actually increase the operating cash flow of the entity.”
PACE (Property Assessed Clean Energy) is a financing vehicle offered by local governments in states with legislation allowing the program. PACE allows property owners to finance 100 percent of the costs to make energy efficient upgrades or renewable energy updates to their buildings. Currently, 31 states and Washington D.C. have adopted PACE enabling legislation. Local governments offer bonds to investors, then loan the proceeds from the bonds to consumers and businesses to make energy efficient upgrades or installations. The loan is then repaid over a specified period of time (up to 20 years) through a property tax assessment.