Transcript Document 7194090

Welcome
iPED Green Homes
and
Sustainable Communities 2007
The Annual National Symposium on
Green Affordable Housing & Community Development
San Francisco, California
July 19 & 20, 2007
What You’ll See Today
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Background
Who is United Fund Advisors
Funds
Green building
Energy
Case Studies
Benefits of Green Building
Portland, Oregon
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Governor Tom McCall
Bottle Bill
Urban Growth Boundary
Most LEED Buildings,
per capita, in US
• Higher-than-LEED green
building rating system:
PDX LEED
Portland, Oregon
• #1 Green City in America”
(“A Role Model for the
Nation”)
– How Green is Your City
• “Solar America City”
– US Dept. of Energy
• #1 for Biking to work
– US Census
• #3 Best Place to Live
– Sperling Report
Green Building in the Media
• “Some of the most prominent names in architecture
have turned green…” TIME Magazine
• “Capitalism and sustainability are deeply and
increasingly interrelated.” Wall Street Journal
• “…"green" architecture has encouraged architects,
developers and construction managers to consider
the effect their buildings have on the health of their
occupants and the environment.” NY Times
• “…and nowhere is this market (for green building)
being proven up like in Portland.” BetterBricks
Impact of Buildings
2030 Challenge
• Buildings are responsible for
48% of the energy use and
Greenhouse Gas (GHG)
emission in the US
• 76% of all power plantgenerated electricity is used by
buildings
• 50% of US energy comes from
coal – largest source of CO2
• China adding 1 coal-fired plant
per week – Technology Review
*Source: Architecture 2030; US Energy Information Administration
Triple bottom line mission
“To create opportunities for profitable
investments that enhance social and
environmental yields.”
Triple Bottom Line
Financial
Social
Environmental
3BL
What We Do
With our affiliate Portland Family of Funds, we:
• Manage real estate and energy
investment funds
• Structure and close transactions
• Source debt and equity
• Manage regulatory compliance
• Analyze community impacts
• Provide investor reporting services
Fund Management
• UFA created, capitalized and manages
$501.0 million in investment funds
• Actively pursuing opportunities to develop
and manage triple bottom line
investment funds
Fund: Portland New Markets Fund
• $100 million New
Markets Tax
Credits Fund;
• Will be fully
deployed on
10 projects by
Q3 2007
Fund: Global Green
Global Green (Santa
Monica, CA) recently
selected UFA
to
manage $100 to $200
million Green Building
Mezzanine and Equity
Fund
Fund: NYCEDC
The New York City
Economic Development
Corporation (New York,
NY) recently selected UFA
to structure financing for
key NYC cultural facilities
with a successful NMTC
application.
Green Buildings
• Expect to surpass $1 billion in total project cost by
Q3 07
• Of projects that we have participated in the
financing stack, $650 million are green buildings
including (reached and targeting):
Silver
Gold
Platinum
Living
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Gerding Theater at the Armory
19th century Armory
becomes sustainable
21st century theater
$36.1 mm project
Goals:
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Support of the Arts
Historic Preservation
Community hub
LEED Platinum
White Stag
University of Oregon
expands in Portland
$30.3 mm project
Goals:
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Support higher education in
Oregon
Sustainable Design Lab
Synergy between education
and sustainable businesses
LEED Gold/Platinum
targets
12W
Mixed-use project helps
fund Head Start
$137.8 mm project
Goals:
1) Job retention/creative
services
2) Workforce housing
3) “Carve-out”
4) LEED Gold target
Sunset & Gordon
Mixed-use, workforce
housing in Hollywood
$168.3 mm project
Goals:
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Mixed-use
Workforce housing, office,
retail, parking
Transit-oriented
LEED Gold target
The Civic
Green housing, condo
and retail
$98 mm project
Goals
1) Affordable Housing
2) Blight Reduction
3) Wealth Building Property
4) Low-income housing:
LEED Gold target
5) Condo: LEED Silver target
Vanport Square
Wealth-building in the
heart of MLK
$8.7 mm project
Goals:
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Wealth building through
commercial condos
Economic development
Jobs for local small
businesses
LEED Silver target
Meier & Frank/The Nines Hotel
Repurposing Portland’s
historic retail center
$117.0 mm project
Goals:
1) Historic preservation
2) Jobs and training
3) Invigorate key retail
anchor
4) Premium hotel rooms
5) LEED Silver target
Economic impacts:
UFA Real Estate, 2004-2006
1. Total closed
14
2. Project costs
~$915.7 million
3. Jobs created
~8,000
3. Fiscal impacts
~$528.8 million
4. Total economic
impacts – 10 years
~$3.8 billion
*Estimated direct, indirect and induced economic impacts of Construction and 10 years of Operations .
Renewable Energy
Solar
• Two solar projects aggregating 225kW
• Raising a $100 million Solar Fund
• MOU with SunEnergy Power
Corporation to jointly develop solar
projects
Wind
• 10MW Wind project under
development
• 300MW wind-firming solution
Bend Centennial Parking Plaza
200kW solar array
Featured Project: Skidmore Building
• Historic (1889)
• Deeply distressed census
tract
– HUB Zone, Enterprise Zone,
Urban Renewal Area
• NMTC, Historic, BETC
• Transit-oriented
• Part of “White Stag Project”
White Stag Project
• Collaborating with the
University of Oregon
School of Allied Arts and
Architecture
• Project anticipated to
reach LEED Gold
Skidmore Building
• Targeting LEED
Platinum Interiors
• 25 kW solar array on
roof
Skidmore Floor-by-Floor
4. UFA Office
3. Sustainable
Business Hub
2. Sustainable
Design Lab
1. U of O Library
Floor 3: Sustainable Business Hub
“Ecosystem” for sustainable design thought
leaders and practitioners, such as:
• Cascadia Green Building Council
• BlueSkye
• Nth Power
• Oregon Natural Step
Floor 2: Sustainable Design Lab
• State of the art presentation,
collaboration and data-mining
hardware and software
• High-bandwidth communications
• Focus on sustainable
development strategies,
technologies and solving
financing gaps with sustainable
design technologies
Convergence of Ideas
Sustainability
Design
Education
PDX
Center
Finance
Technology
Community
Collaboration
Featured project: 12W
Parking lot to new office, retail
and workforce housing
$137.8 mm project
$29 mm NMTC allocation
Components:
1) Office
2) Workforce housing
3) Retail
4) Underground parking
Fund: Portland New Markets Fund
Controlling entity: PDC
Community Wins
• Catalytic project in West End
• Creative services job retention
• “Carve-out” of approximately $1 million
net from the New Markets Tax Credits
– Albina Early Head Start, pre-K program for
underprivileged kids in northeast Portland
Albina Early Head Start
• 415 children ages 3, 4,and 5
• 44% of people below poverty level in the
county live in the service area of the
school
• 90% ethnic minorities
• Governor Kulongoski recently used the
school as backdrop to urge state
legislators to increase funding for pre-K
programs
Living Building?
• Exploring ways to make
Albina Early Head Start the
first “living school building”
in the US
• Cascadia Chapter of the
USGBC proposed the
Living Building Challenge
• Net Zero resource footprint
• “Portable” concept
Benefits of Green Building
ENVIRONMENTAL
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Reduce the impacts of pollution and natural resource consumption
Decreased transportation development
Decreased maintenance burden (roads)
Increased economic performance of mass transit systems.
HEALTH AND SAFETY
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Enhance occupant comfort and health
Reduce absenteeism and turnover
Increased productivity
COMMUNITY
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Minimize strain on local infrastructures
Improve quality of life
Mitigate social costs
Benefits: Commercial
DEVELOPER/OWNER
Increase property valuation
• Efficient systems more valuable
• Healthy, i.e. productive indoor environment – workers, visitors,
shoppers
Marketing (resale) advantages:
• Lease up faster
• Decrease vacancy
• Improve retention
• Improve occupant performance
• Higher visitor traffic
• Improved sales
Benefits: Residential
OWNER/RESIDENT
Reduce operating costs
• Utilities cost savings – energy, water – 20% - 50%
• Enhanced rental margins, especially triple net
• Utilities cost savings: 20% - 50%
• Higher resale value
Health
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Low VOC: Improved indoor air quality
Daylighting: More natural lighting, less cost
Natural ventilation: more comfortable
Increased density: more interaction
Green Building: “BRAND”
BRAND IDENTITY:
Cities and developments as “Green Magnets”
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500 mayors sign The U.S. Conference
of Mayors’ Climate Protection
Agreement
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Creative Class
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Knowledge workers
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Families
Growing industry sector
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21st Century version of “High-tech”
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High demand for expertise
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Highly “exportable”
Challenges to building green
• Higher costs, which increase depending on
LEED target (3% - 10%)
• Financial structuring challenges
• Non-mainstream technologies
• “Green” and “Historic” not compatible in all ways
(windows, facades)
• Education
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Consumers
Builders
Investors
Lenders
Legislators
Opportunities to building green
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Early in the curve
Increasing demand
Maximum impact – commercial buildings
Long term cost savings
Health benefits
Resource savings
Do Something Worthwhile
Thank you
iPED Green Homes
and
Sustainable Communities 2007
Contact: Norris Lozano
United Fund Advisors
(503) 226-1370
[email protected]