Sonoma Mountain Village Press Release
Clean Fund Completes First Private Commercial PACE Financing
Innovative Finance Structure Gaining Momentum
SAN RAFAEL, California – September 7, 2011 – Codding Enterprises, developers of Sonoma Mountain Village in Rohnert Park, CA, announced they have received approval for $1.6 million in funding from Clean Fund LLC provided through the Sonoma County Energy Independence Program (SCEIP). The funds received will help pay for a second 1MW solar electric system, allowing Sonoma Mountain Village to cover 100% of its electric needs from on-site renewable power. The groundbreaking transaction was structured and financed by Clean Fund of San Rafael, CA.
The SCEIP was initially set up to provide Property Assessed Clean Energy (PACE) financing using the County’s Treasury funds. On March 1, 2011, the Sonoma County Board of Supervisors unanimously voted to extend the capital resources available to SCEIP and allow private financial institutions to fund projects through the Program. Clean Fund’s financing of the Sonoma Mountain Village project makes it the first PACE project to be privately financed. Most cities and counties contemplating PACE finance programs lack the ability to fund those programs themselves. The successful pairing of the PACE structure with private capital is a requirement for nation-wide PACE adoption.
Sonoma County is one of the United States’ pioneers in enabling local businesses and residents to finance energy efficiency and renewable generation improvements using the PACE structure. PACE programs provide long-term financing for energy improvements through special tax assessments. “Our Energy Independence Program is creating significant numbers of high quality local jobs while allowing us to make environmental progress in a business friendly way,” according to Efren Carrillo, Chairman of the Sonoma County Board of Supervisors. “It’s extremely satisfying to see the strong support this program has gained from across Sonoma County’s community.”
The Sonoma business community is an enthusiastic proponent for the SCEIP. “Long term PACE financing allows us to make energy investments that support our long term business goals” says Brad Baker, President and CEO of Codding. “Sonoma Mountain Village is the first One Planet Community in North America and has received LEED-ND Platinum status from the US Green Building Council for its project plan. This additional 1MW photovoltaic system allows us to generate 100% of our power needs for the planned community with on-site renewable energy.”
Sonoma Mountain Village is a 200 acre mixed-use, solar-powered, zero-waste community under development in Sonoma County, CA. The community currently has over 30 businesses and 800 employees in its existing commercial, office and industrial space. Plans for residential options including apartments, condominiums and single-family homes; and an array of hospitality, entertainment and athletic services are currently planned. In 2008, Sonoma Mountain Village was awarded California’s highest and most prestigious environmental honor – the Governor’s Environmental and Economic Leadership Award as a model for comprehensive land use planning.
“Sonoma Mountain Village delivers exactly the kind of environmental, economic and community benefits the PACE financing structure of the Sonoma County Energy Independence Program is designed to promote,” according to Donna Dunk, Auditor – Controller – Treasurer –Tax Collector of Sonoma County. “The complexity and large size of the Sonoma Mountain Village PACE project gave us the impetus we were looking for to bring the expertise and financing resources of private investment firms like Clean Fund into the SCEIP program.”
“Clean Fund would like to thank the folks at the Clinton Climate Initiative and Hannon Armstrong for leading the development of the owner-arranged PACE model” said John Kinney, CEO of Clean Fund. “It’s an honor for Clean Fund to provide the first proof of a concept designed to enable large scale private investment in improving the energy efficiency of commercial and industrial buildings worldwide.” The owner-arranged PACE structure that relies on private capital providers for project finance is the foundation of the commercial PACE programs being developed across the country, including the County of Los Angeles, the City of San Francisco and the District of Columbia.
About Clean Fund:
Clean Fund provides project finance for energy improvements to commercial and industrial properties. Clean Fund uses the Property Assessed Clean Energy (PACE) structure to provide 100%, long term, low interest financing that lets long payback energy improvements make economic sense today. For more information visit www.cleanfund.com or contact Derek Brown, Managing Director, derek.brown@cleanfund.com, (415) 256-8000 x102.
About Codding:
Codding is an investment holding company with investments in commercial real estate, commercial construction, alternative energy and a subsidiary that develops deeply sustainable mixed-use communities such as Sonoma Mountain Village. For more information visit www.codding.com and www.sonomamountainvillage.com or contact Tina Montgomery, tinam@codding.com, (707) 795-3550 x138.
About Sonoma County:
The Sonoma County Energy Independence Program provides financing for private property improvements to increase water and energy efficiency or produce renewable energy. More information is available at www.sonomacountyenergy.org or contact Diane Lesko, Assistant Program Manager, at (707) 565-6477.
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