LORAIN — Will “going green” boost the tenant rate at St. Joseph Community Center for the foreseeable future?

Thomas Kiser, president of Professional Supply Inc. of Freemont, thinks it will and pitched an investor-driven funding plan to finance the project to City Council’s Finance Committee Monday night.

Kiser and a partner company, SolarVision LLC, told Council they would find investors to foot the $8.9 million price tag to install various systems that will completely revamp the utilities in the center, which the city now manages. The result would be an annual savings of $572,560 a year on utility bills.

Some of the changes include installing a hot water system for heating instead of the current steam heat; installing a one-mega watt solar array for electricity; switching to LED exterior lighting; installing a modular chilled water system for cooling; and a “smart” control system that will know how many people are in a given room and adjust things like ventilation accordingly.

The changes would reduce 2009’s typical utility bills of $863,624 to an estimated $291,067, said PSI’s manager of engineering Eric Freimark, adding those figures are based on 100-percent occupancy. The center now has 30 percent occupancy. PSI and SolarVision would initially retain ownership of the green systems.

The city would sign a 10-year agreement in which they would be required to buy the energy from PSI at the $291,067 yearly price and give 80 percent of the $572,560 annual savings to PSI, who would then use that $400,000 to repay the original investors.

The remaining $100,000 in savings would go in the city’s coffers, Kiser said, adding the city also would have an opportunity to buy the entire system at fair market value after the 10 years are up, which would also mean the city would then pocket the $500,000 in savings.

Councilwoman Anne Molnar, D-at Large, said she liked the idea, but was worried about not filling the center with tenants before starting the project.

Councilman Tim Howard, D-3rd Ward, disagreed.

“There’s no way we can say ‘Let’s fill it up and then call for the project,’ ” he said. “I think this is a great first step.”

Service Director Robert Gilchrist told the committee that the first question he’s hearing from potential tenants is “What are the utilities?”

“That’s the number one challenge that we have to overcome,” Gilchrist said. “It will be easier to market that facility when entities know the efficiency will be greatly increased.”

The administration has about three months left in which to put together a plan to keep the center open. The city is on the hook for $700,000 in loans on the center and stands to lose $80,000 a year in income taxes if the center closes and the current tenants relocate outside the city, Mayor Tony Krasienko said.

Kiser said installing the system, including preliminary engineering, would take between nine months to a year.
Councilman Brian Gates, D-1st Ward, loved the idea.

“This sounds almost too good to be true,” he said. “My only concern is when is the other shoe is going to drop, but it hasn’t yet. I’d like to offer my encouragement.”

City Law Director Pat Riley agreed.

“This is a fantastic idea,” he said before grilling the company representatives on the city’s liability.

The contract does include a termination fee equal to the length of the contract. If St. Joe’s closed after five years, the city still would be on the hook for five years of energy purchasing, SolarVision President Donald Saul confirmed.

Krasienko said his administration already is considering using the green systems at other municipal locations should St. Joe’s not survive, thus avoiding a termination fee.

“We’d just buy the energy for some other building,” Krasienko said.

First-term Councilman Andy Drwal, D-2nd Ward, was impressed as well.

“This is probably some of the first good news I’ve heard,” he said of his months on council.

Contact Alicia Castelli at 329-7144 or acastelli@chroniclet.com.

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