Self-storage facility in Huntley first in McHenry County to use Illinois Energy Conservation Authority refinancing program to fund improvements

A self-storage facility in Huntley received the first ever refinancing deal for a McHenry County business through an Illinois Energy Conservation Authority program, the nonprofit announced.

The business, the name of which was not disclosed by the organization, received a $345,000 Commercial Property Assessed Clean Energy, or C-PACE, refinancing loan to fund energy and water efficiency improvements, the nonprofit said through a spokeswoman.

The C-PACE program is an economic development tool that “helps commercial property owners reduce operating expenses and improve the efficiency and sustainability of their buildings and operations,” according to a news release.

“McHenry County businesses that want to go green now have a versatile tool with which to finance it,” McHenry County Board Chairman Mike Buehler said in the release. “We welcome yet another mechanism by which our business community can grow and thrive, and I hope that this project is the first of many in McHenry County.”

The county signed on with Illinois Energy Conservation Authority less than a year ago, the nonprofit’s president, Mark Pikus, said in the release. The program rolled out in Illinois in 2019, according to the release.

The program is open to certain commercial and industrial property owners in seven participating counties, including McHenry County, according to the Illinois Energy Conservation Authority. Eligible properties include existing and newly constructed commercial and industrial buildings as well as multi-family apartment buildings with at least five units.

Among the eligible types of buildings are office, retail, warehouse, industrial, hotels and motels, conference facilities, health care and labs, private educational facilities, data centers, agricultural facilities, and sports and entertainment, according to the Illinois Energy Conservation Authority.

The refinancing allowed the Huntley self-storage facility to install energy efficiency lighting, lighting controls, low-flow fixtures and building controls, according to the Illinois Energy Conservation Authority. Other types of improvements allowed through the program include renewable energy, water conservation and electric vehicle charging projects, according to the release.

The program helps property owners finance the replacement of equipment, retrofits, new construction and value-add or adaptive-reuse projects, according to the Illinois Energy Conservation Authority. They can also refinance eligible improvements completed within the past three years.

What makes the C-PACE program different than traditional project financing is that the loan is repaid over time through a voluntary tax assessment, which allows for longer-term financing and for the repayment obligations to be transferred to the next property owner, according to the release.