The G.J. Lofts building project in Downtown Bloomington has gained another economic boost with a funding deal for energy-efficient and water conservation improvements.
The Illinois Energy Conservation Authority, a program administered by Slipstream, announced that it closed a $5.8 million Commercial Property Assessed Clean Energy [C-PACE] loan deal, the first in McLean County.
The building, the former State Farm headquarters, is currently undergoing major renovations for conversion from an office complex to a mixed-use property with housing and retail space.
Phase one, scheduled for completion next summer, consists of 57 apartments and a top-floor restaurant in the barrel portion of the building's original boardroom, and the ground floor will include a food hall with a Starbucks and several other restaurants in the hall itself.
Amid the renovations, C-PACE funding finances upgrades to heating and air conditioning systems, energy control systems, high efficiency light fixtures and water conservation improvements. The funding is used to assist projects, such as G.J. Lofts, by offsetting the high cost of new and sustainable operations.
“We are pleased with this project and the opportunities made possible through the McLean County C-PACE program. The project's focus on both water and energy conservation showcases the versatility of this initiative and its potential to support innovative, sustainable investments throughout our community,” said McLean County Administrator Cassy Taylor.
C-PACE funding was first introduced in Illinois in 2019 and provides long-term, fixed-rate financing for such projects.
The loan for developer Urban Equity Properties [UEP] is funded by PACE Equity, a lender with prior handling of C-PACE funding, based in Milwaukee.
Taylor said there is no financial gain for the county, rather it just administers the framework set out by Slipstream, the program partner.
“The significance of this financing is primarily for the project sponsor, UEP. C-PACE provides an additional financing tool that can be incorporated into a project's capital stack, helping bridge funding gaps and support investments in energy and water efficiency improvements,” she said. “For projects such as this, access to C-PACE financing can improve overall project feasibility and long-term sustainability.”
It's not certain whether the improvements could be made without the funding, according to Taylor, but she said it is reasonable to assume the project would face further delay without it.
Taylor said the funding was not awarded in a competitive process, but McLean County likely stood out because of new construction and redevelopment projects in multiple sectors.
“The county's growing economy, strong business environment, commitment to infrastructure investment, and focus on sustainability create favorable conditions for innovative financing tools such as C-PACE,” she said, adding, “The availability of C-PACE financing provides developers and property owners with an additional resource to advance projects that benefit both the local economy and the community's long-term sustainability goals.”
“As more organizations seek opportunities to improve energy performance, reduce operating costs, and incorporate sustainable building practices, McLean County is well-positioned to support those efforts.”
The C-PACE funding also is considered a financial tool available to UEP because it can be added to the project’s overall capital stack.
