The largest C-PACE financing in history, and public safety benefit for the hospital.
PRESS RELEASE (May 23, 2017) — Today, CleanFund Commercial PACE Capital, Inc. announced the Commercial Property Assessed Clean Energy (“C-PACE”) funding of a $40 million seismic upgrade for the Seton Medical Center campus, the only acute care facility in Daly City, California. CleanFund provided $20 million of its own capital and brought in a partner, Petros PACE Finance, to provide an additional $20 million.
CleanFund worked with the leadership of Verity Health System to finance critical health and safety improvements. Seton Medical Center is a part of Verity Health. The proceeds will allow the hospital to make upgrades to meet California’s mandatory Hospital Facilities Seismic Safety Act (SB 1953).
The C-PACE industry finances projects that improve the welfare of the communities it serves. In addition to energy efficiency and renewable energy improvements, C-PACE financing can help fund projects that protect buildings and occupants against natural disasters such as hurricanes and earthquakes. C-PACE is flexible and diverse, but is unified by the commitment to enhance building efficiency and safety.
Since taking over the management of Seton in 2015, Verity Health has invested heavily in operations and capital improvements to provide the highest standard of patient care. In addition to traditional bond financing, Seton needed to raise further capital to fund the state-mandated seismic upgrades at the hospital. CleanFund provided the solution with C-PACE financing in the form of $20 million of its own capital. In addition to CleanFund’s own capital, its partnership with Petros enabled Seton to get 100% of the required financing. C-PACE is long-term, competitive, fixed-rate financing, similar to the traditional tax-exempt debt that hospitals often use for infrastructure investments. C-PACE financing simplifies the process, allowing Seton to make payments as a line item on their property tax bill.
Mitchell R. Creem, Verity’s Chief Administrative Officer, said, “Verity Health could not be more pleased with C-PACE being utilized to fund the life-saving seismic improvements required at Seton. These improvements will allow us to continue our focus on providing the safe, quality patient care and vital services to meet the needs of our community.”
Stephen Forney, Verity’s Chief Financial Officer commented, “C-PACE met both the requirements of obligations under the Master Trustee as well as our own financing criteria. We are pleased to have long-term financing in place for Seton’s seismic upgrades.”
This is the largest C-PACE financing in history, providing a significant public safety and health benefit for Seton Medical Center, ensuring local acute healthcare services to the community for years to come.