COVINGTON, KY – On August 8, the Board of Commissioners authorized the execution of a Property Assessed Clean Energy (PACE) agreement with 501 Main property owner and developer Flaherty & Collins Properties for the newly titled RiverHaus project.
The developer, Flaherty & Collins Properties, has agreed to use PACE assessment financing to finance $4,032,936 in energy improvements and upgrades, pursuant to the City’s Energy Project Assessment District (EPAD) program. Specific upgrades include windows, LED lighting, heating and cooling systems, programmable thermostats, and insulation upgrades for the wall and roofing systems for the 501 Main development.
The agreement is the first new construction EPAD deal in the State of Kentucky.
Lead Project Developer for Flaherty & Collins Properties Deron Kintner stated, “PACE financing is a great fit for us, as we always build our projects in a high-quality, and environmentally-friendly, efficient manner.
“We are excited to get this project started and partner with Energize Kentucky, PACE Equity and the City of Covington.”
With no down payment required, the EPAD program allows property owners to utilize PACE financing to repay funds for an eligible energy project through a voluntary special improvement assessment on the property tax bill.
Energize Kentucky functions as the City’s program administrator for EPAD projects and PACE assessment financing.
To apply for PACE assessment financing, interested property owners submit their application to the Energize Kentucky for review. Energize Kentucky will then determine if the property compiles with all EPAD requirements.
Energize Kentucky Director of PACE Financing Chris Jones stated, “We are excited to be part of this exciting new construction development in Covington.
“With PACE financing, commercial property owners can now finance energy saving improvements with no down payment and the sole repayment is a special assessment added to the property’s tax bill.”
Energize Kentucky is a program administrator that works with property owners to secure PACE financing for qualified energy projects. It coordinates efforts with local governments and connects property owners with private PACE capital providers and contractors to ensure the successful funding and installation of energy projects.
In 2015, the City of Covington became the first community to establish an Energy Project Assessment District (EPAD). The City of Covington is also the first community in the state of Kentucky with a completed EPAD project and the first to have a new construction EPAD deal.
In December 2015, the Ivy Knoll Senior Retirement Community redevelopment project became the first project in Kentucky to benefit from the program financing $750,000 of energy improvements, including solar panels, LED lighting, efficient elevators, and heating and cooling improvements.
Located at 501 Main Street, the RiverHaus project is a high-end, residential development including 187 one and two bedroom units along with commercial space on the ground floor, and a parking garage.
Construction is scheduled to begin no sooner than September 1, 2017. Demolition of the existing 501 Main building may begin before September 1, 2017, but parking will not be impacted during demolition.