SmartBuildings Detroit wrapping up three-year energy improvement initiative

SmartBuildings Detroit, a program of the Detroit Economic Development Corporation (DEGC), is wrapping up its three-year long initiative that launched in 2010 with a $10 million grant through the American Recovery and Reinvestment Act by the U.S. Department of Energy.
 
The program consisted of both a loan and grant component. The DEGC was able to allocate $8 million in incentivized energy improvement grants for commercial buildings.
 
SmartBuildings leveraged other incentives and energy optimization programs and required a 3-to-1 dollar match for up to a $100,000 grant. "We were to able to well exceed that," says Scott Veldhuis, Senior Project Manager for the Detroit Economic Growth Corporation. "For example, COBO far overleveraged our grant which allowed us to go out to smaller businesses."

Ultimately the DEGC was able to impact 84 buildings and over 15 million square feet of commercial space in the city, leveraging over $51 million in additional capital.
 
Buildings included office buildings and parking garages, multi-family homes and warehouses, small businesses and industrial projects, as well as high-visibility commercial developments like COBO Center, Shed #5 in the Eastern Market, Newberry Hall, Presbyterian Villages Rivertown Neighborhood, and the Woodward Theatre. Projects included window replacements, lighting retrofits, HVAC replacement, insulation projects, and other renovation work. Project costs ranged from as little as $2,000 to COBO's $2 million. The goal is to show a 15 percent energy savings in these buildings.
 
All funds for this program have been committed and all projects are currently underway. The DEGC must complete all projects by July 31 to receive reimbursement funds from Michigan Saves. The DEGC's next step is to look at the loan portion and how to program those dollars that are part of a loan loss reserve for energy projects.
 
Source: Scott Veldhuis, Senior Project Manager for the Detroit Economic Growth Corporation
Writer: Nicole Rupersburg

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