Battle Creek YMCA
Calhoun County's first PACE Project
The Battle Creek YMCA marks Calhoun County’s first PACE project. The Battle Creek YMCA PACE project will account for a 47% reduction in total electrical use. In addition to decreasing utility costs, upgraded lighting along the perimeter of the YMCA parking lot will also provide improved security measures for YMCA members and staff. The PACE project at the Battle Creek YMCA marks the 8th Michigan PACE project for Petros PACE Finance and the second nonprofit PACE project for Lean & Green Michigan. “PACE provided an affordable opportunity for the Battle Creek YMCA to replace our aging infrastructure in order to be able to continue serving our members and the community,” said Jill Hinde, CEO of the Battle Creek YMCA. With 100% financing for energy improvements, PACE makes it possible for nonprofits to generate cashflow positive utility cost-savings, allowing the nonprofit to invest more into its core mission.
Project Quick Stats
- Pace District: Calhoun County
- Property Owner: Y Center of Battle Creek
- PACE lender: Petros PACE Finance
- Amount Financed: $1,371,072
- Net Savings: $687,503
- Total Savings: $3,233,342
- Energy Conservation Measures:
- Pool dehumidification units
- Building Controls
- Rooftop Units (RTUs)
- Project Term: 22 years
Impact: The Battle Creek YMCA PACE project is projected to eliminate the equivalent of 37,786,593 miles driven by an average vehicle.
Lean & Green Michigan
Lean & Green MichiganTM helps commercial, industrial and multi-family property owners take advantage of PACE to finance energy projects, eliminate waste and save money through long-term financing solutions that make energy projects profitable. Lean & Green MichiganTM is a public-private partnership that works with local governments, contractors, property owners, and lenders to invigorate Michigan’s PACE statute with a market-based approach to energy finance and economic development.
Commercial building owners spend $200 billion per year on utilities, yet 30% of this is waste. The energy projects that could make these properties efficient often require significant up-front capital and take years to achieve profitability. Commercial loans typically have a tenor of 3-5 years, making the annual repayment greater than the energy savings. PACE changes all this by allowing property owners to finance energy efficiency and renewable energy projects via a property tax special assessment.
Calhoun County's elected leaders created a countywide PACE district in May 2015 by joining the statewide Lean & Green Michigan PACE program. Since the County will enforce the PACE assessment just like any other property tax obligation, lenders feel secure in providing fixed-interest loans with terms of up to 25 years. The result is 100% up front financing to facilitate energy-saving projects. In addition, these projects create good jobs, and communities upgrade their building stock, increasing the local tax base over time.