New urbanist developments win energy financing

What is probably the biggest demonstration of alternative energy in new development projects in the US was made possible through $2 billion in tax free “green bond” financing for four projects — three of them examples of New Urbanism. About half of the financing, approved by Congress, is allocated to the three new urban projects: Atlantic Station in Atlanta, a brownfield site that is being developed into a new city sector; Belmar in Lakewood, Colorado (see related article); and the Georgetown Wire Mill redevelopment in Redding, Connecticut. The other half of the bonds will go to Destiny USA, a megamall in Syracuse, New York. Altogether, the four developers must reduce conventional power use by 150 megawatts through solar panels, fuel cells, and energy efficiency. They must install 900,000 square feet of solar panels, use at least 25 megawatts of fuel cell energy generation, and cut sulfur dioxide emissions by at least 10 tons per day. The developers have until 2009 to make use of the financing. Continuum Partners, developing Belmar, is eligible to use $200 million of those bonds, enough to pay for about a quarter of the project; this represents a significant savings in lower interest rates, principal Tom Gougeon told New Urban News. In exchange, the developer would install 5.2 megawatts of solar panels on rooftops on 10 to 12 acres of the 103-acre site. The panels would cost $47 million. Also, a 200-kilowatt fuel cell would be installed in a hotel at a cost of $800,000. Continuum has furthermore agreed to energy-efficiency measures — measures that are consistent with the standards that the firm is already trying to meet. The snag, Gougeon says, is a shortage now in photovoltaic manufacturing supply. “The photovoltaics market is temporarily out of whack,” he says. “Prices have skyrocketed, and there’s not a whole lot of supply. All of this year’s product is already allocated.” Continuum hopes new manufacturing capacity will bring the photovoltaic market into equilibrium in coming years — increasing the economic incentive to use the bonds.