We see that you have javascript disabled. Please enable javascript and refresh the page to continue reading local news. If you feel you have received this message in error, please contact the customer support team at 1-833-248-7801.

Sponsored By

Sponsored By
An organization or individual has paid for the creation of this work but did not approve or review it.

ADVERTISEMENT

ADVERTISEMENT

Heard on the Street: Downtown hotel project locks down $2.5 million in 'green' financing

We are part of The Trust Project.

Developers are using novel financing to lock down $2.5 million in funding for a $20 million Rochester hotel renovation project.

California-based EKN Development Groupannounced today that it has closed on Commercial Property Assessed Clean Energy (C-PACE) funding provided by CleanFund. CleanFund is also based in California.

C-PACE financing is a form of voluntary parcel tax assessment financing to fund improvements that reduce energy and water usage.

EKN, which has two other Rochester projects in the works, closed the 16-story downtown Holiday Innhotel at 220 S. Broadway last month to start a $20 million upgrade of the 49-year-old building.

The plan is to transform the "monolithic" complex into a modern, high-end property under the Indigohotel brand.

ADVERTISEMENT

The work is focused on the hotel portion of the 16-story building, floors two through eight. The street level of the hotel is comprised of separately owned business condos occupied by the Rochester Area Chamber of Commerceand the Smith Schafer & Associatesaccounting firm. Floors nine through 16 are residential condominiums with many individual owners.

The financing package by CleanFund included a 20-year term. The funding reportedly allows the redevelopment project to include environmental attributes, such as energy-efficient HVAC, upgraded windows for efficiency and sound proofing, LED lighting and low-flow water fixtures.

"CleanFund’s C-PACE financing lowered our weighted average cost of capital for the overall project, and allowed us to avoid any value-engineering that can sometimes pressure a project to cut back on green attributes. No doubt, it’s a better building with C-PACE," stated EKN’s Director of Finance Jason Bassin the announcement of the deal.

The plan is to complete the renovations of the 178-room complex and re-open it under the Hotel Indigo brand by mid-2019.

Related Topics: FINANCE
What to read next
Do you get a little bit cranky after a sleepless night? In this "Health Fusion" column, Viv Williams explores how sleep deprivation can do a lot more damage than just messing with your mornings. It may also make people less willing to help each other.
An early frost can mean a sudden end to the growing season. But there are ways to protect plants from dipping temperatures. In this episode of "Health Fusion," Viv Williams has tips on how to cover your flowers and vegetables so you can enjoy the health benefits of gardening longer into the fall season.
The disease, which is more common in colder climates, causes some areas of your body, to feel numb and cold and you may notice color changes in your skin in response to cold or stress.
Study found those who could not pass a simple test had twice the risk of mortality.