The Radisson Hotel
More than $2 million in energy & water upgrades
In October 2017, the Radisson Hotel at the Detroit airport notched the largest PACE project in Michigan to date — and the second in Wayne County in three months. Owner Jeff Katofsky and RKJ Hotel Management, LLC used more than $2 million in PACE financing to undertake many high-efficiency energy and water upgrades, making the Radisson and its 272 rooms a model of sustainability.
Using an energy audit from G-Energy, expert PACE guidance from RAHILL Capital, and 100% financing from Twain Financial, Michigan’s first PACE project at a hotel was also one of its most comprehensive. The “clean energy makeover” included LED lights, a reflective roof, low-flow faucets and toilets, HVAC systems and controls, pool dehumidification and more.
With these energy & water efficiency improvements, Mr. Katofsky and his team have created a hotel destination that is less costly to operate, more comfortable for guests, and a guidepost for other Michigan hotels and properties.
Project Quick Stats
- Pace District: Wayne County
- Property Owner: Jeff Katofsky
- PACE Contractor: G-Energy
- PACE lender: Twain Financial
- Amount Financed: $2,121,278.80
- Total Savings: $3,037,312.00
- Energy Conservation Measures:
- LED lights
- Low-flow faucets and toilets
- Reflective roof
- Efficient HVAC units and controls
- Pool dehumidification, walk-ins and coolers.
- Project Term: 20 years
Impact: The project will result in major reductions in energy consumption across multiple categories, eliminating over 372 metric tons of carbon output annually. That’s like taking 80 vehicles off the road each year!
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.
Wayne County's elected leaders created a countywide PACE district in December 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.