Simon to Give Ecology A Boost

Shopping center giant to upgrade facilities using loan program.

by Gary Dinges gdinges@statesman.com

Simon Property Group says it’s planning millions of dollars in eco-friendly upgrades at some of the dozens of shopping centers it operates nationwide, including several in Central Texas — and other commercial property owners likely aren’t far behind.
The work — everything from air conditioning upgrades to new roofs to water conservation measures — will largely be financed by a relatively new program being authorized by legislators in a growing number of states, following California’s lead.
In Texas, Travis County is the first county to implement the Property Assessed Clean Energy program, County Commissioner Brigid Shea said.
PACE allows property owners to obtain low-cost, longterm loans for certain kinds of upgrades. The loans are made by private-sector lenders and are secured by a senior lien placed by the PACE program. The county serves as a facilitator of sorts, sending assessments to the property owner with their property tax bill each year.
There is no government money involved.
“This is one of those cases where we get to say, ‘We’re from the government and we’re here to help’ and really mean it,” Shea said.
“I believe this program will allow us to convert our commercial buildings into some of the most energy efficient ones in the nation, if not the world.”
Shea, a Democrat, said she and fellow Commissioner Gerald Daugherty, a Republican, helped lead the push to get the PACE program on the books in Travis County.
“This is about pushing politics aside,” Daugherty said. “There are some things that just make sense.”
Simon Property Group’s Kristene Canady said the company has used PACE programs in several other states in recent years.
In Texas, it has already identified about $6 million in potential projects, with $4.5 million of those in Travis County.
Simon Property Group’s shopping centers in Central Texas include Barton Creek Square mall and the Domain.
“Simon has moved slowly and carefully and thoughtfully,” Canady said. “We see Texas as a great playground to do this.”
The PACE program is appealing to companies such as Simon because the loans can go as long as 20 years, according to Jonathon Blackburn with the Texas Pace Authority.
“A lot of these projects are very expensive and they take a long time before they pay for themselves,” Blackburn said.
“PACE allows you to get a much longer term. Your utility savings every year will more than offset what you’re paying on the loan.”