The former ConCorde Inn on Gratiot in Clinton Township has been converted into a 157-unit premier senior living community called Parkdale Senior Living with the help of Property Assessed Clean Energy (PACE) financing. PACE is a financing tool that can be secured with the help of the Macomb County Department of Planning and Economic Development that enables a cash flow-positive investment in comprehensive energy efficiency, water efficiency, and renewable energy projects. By financing such projects through PACE, businesses can eliminate the need for upfront capital and spread the costs over up to 25 years, so that the savings generated from the project are greater than the annual PACE loan repayment – generating immediate positive cash flow. PACE financing allows a property owner to voluntarily enter into a special assessment agreement, which can be repaid over a period up to 25 years.
The MCPED role in the PACE project is similar to that of an abatement. PACE projects are vetted to make sure they qualify, and the environmental impact of the proposed project, in addition to investment and job creation is reviewed. MCPED assists in the preparation and review of the application and works with business and county officials to ensure all documents and a special assessment agreement are in place and are approved so that the business realizes the benefit of the incentive. PACE Equity’s $2.4 million loan went to four energy-conservation measures, including building envelope, LED lighting, HVAC, and low-flow water fixtures.
The $13.8-million project generated a savings to investment ratio of 1.06, and it is expected to save more than 11 million kilowatts of electricity and 6,006 metric tons of CO2, which is equivalent to eliminating 723 homes’ energy use for one year. Macomb County’s elected leaders created a countywide PACE district in October 2013 by joining the statewide Lean & Green Michigan PACE program. The Parkdale is the first PACE project at a senior living facility in Michigan and marks the third PACE project in Macomb County.
