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Garfield Metro Building

Macomb County's First PACE Project

In July 2017, the Peleman family, owners of the Garfield Metro Building, became the first property owner to use PACE financing in Macomb County. The Pelemans are using PACE financing to install LED lighting, high efficiency heating and cooling systems, as well as system controls. Under the Lean & Green Michigan PACE program, the Peleman family, partnered with Newman Consulting Group and Petros PACE Finance, a national PACE lender, to make its 20,000 square foot office building more comfortable, cost-effective, and attractive to tenants.

BASS Controls and Bumler Mechanical identified the PACE opportunity for the Pelemans and partnered with Newman Consulting Group to develop the PACE project. BlueColt Lighting provided the lighting solution for the project. BASS Controls and Bumler Mechanical are members of the National Electrical Contractors Association (NECA) of Southeastern MI and partner with the highly skilled workforce of IBEW Local 58.

The PACE-financed upgrades are slated to break ground in August 2017 and will result in $733,133 in total savings and a net savings of $254,725 over 20 years. Through PACE, the Pelemans are not only saving money and eliminating energy waste, but also setting a sustainable example for small buildings across Macomb County and Michigan.

July 2017
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Project Quick Stats

  • Pace District: Macomb County
  • Property Owner: RMP, LLC
  • PACE Contractor: BASS Controls/Bumler Mechanical
  • PACE lender: Petros PACE Finance
  • Amount Financed: $249,000
  • Net Savings: $254,725.00
  • Total Savings: $733,133.00
  • Energy Conservation Measures:
    • Efficient Heating and Cooling Systems
    • LED Lighting
    • Networked Building Controls
  • Project Term: 20 years

Impact: Each year , the Garfield Metro Building PACE project will replace 119,118 kWh of electricity and 6120 therms of natural gas. That will result in, a carbon reduction of 96.5 metric tons annually.

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.

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PACE Financing

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.

Macomb County's elected leaders created a countywide PACE district in October 2013 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.