Opportunities for LEED in Delaware Downtown Development Districts Presenters: Karen Horton, Delaware State Housing Authority Michael Pavelsky, The Sheward Partnership, LLC Leah Wirgau, Delaware Valley Green Building Council
Agenda Introductions Overview of DDD Grant Program and LEED Grant Details LEED Overview, Potential Paths, and Process Benefits of LEED LEED Silver Case Studies Q&A
Downtown Development District Program Created to leverage state resources in a few designated areas in Delaware s cities and towns to: spur private investment; improve commercial vitality; and, build a stable community of long-term residents. Accomplished by designating Downtown Development Districts (Districts) and offering state and local incentives to investors who invest within the Districts.
Downtown Development Districts Eight Districts designated: Dover (2015) Seaford (2015) Wilmington (2015) Georgetown (2016) Harrington (2016) Laurel (2016) Milford (2016) Smyrna (2016) April 2016 Announcement of five new Districts Smyrna, DE
Downtown Development District Grant District Grant is administered by DSHA and is key incentive to support and further encourage investment within Districts. For investors making real property investments within designated District. Must be commercial, industrial, residential, or mixed-use Grant is up to 20% of Qualified Real Property Investments (QRPI) over minimum required investment Capital expenditures necessary for expansion, rehabilitation or new construction Only costs incurred after the property location is officially incorporated within the boundary of a designated District
Downtown Development District Grant Variety of Projects Small Projects - QRPI less than $250,000 and minimum investment > $15,000 Large Projects - QRPI more than $250,000 and minimum investment > $25,000 Grant Funds available for LEED Silver are for Large Projects Eligible Applicants Property owners One of multiple owners Developer Non-profits Local Government and Municipal Buildings are NOT eligible
Downtown Development District Grant Large Project Investors must apply for a Reservation Additional minimum requirements: Project must be substantially commenced within 1 year from date of Reservation Project must be completed in 3 years Must engage with a CPA to perform an Attestation of Costs after project is complete Grant range: Maximum DDD Grant is $1,500,000 per building or facility
LEED Grant Details DSHA received a Strategic Opportunity Fund for Adaptation (SOFA) grant from DNREC to pay for third-party costs associated with achieving the U.S. Green Building Council s Leadership in Energy and Environmental Design (LEED) Silver certification. Only applicants receiving a District grant are eligible. Costs are not eligible expenses under the District grant and will not double-dip District grant funds. Capped at $30,000 per building or facility regardless of third-party costs.
LEED Overview Leadership in Energy and Environmental Design, is changing the way we think about how buildings and communities are planned, constructed, maintained and operated. Leaders around the world have made LEED the most widely used third-party verification for green buildings, with around 1.85 million square feet being certified daily. LEED certified buildings are resource efficient. They use less water and energy and reduce greenhouse gas emissions. As an added bonus, they save money. All newly registered projects must achieve LEEDv4, prior to 2009.
Potential Paths- Rating Systems for v4 LEEDv4 for Neighborhood Development Plan Built Project LEEDv4 for Building Design and Construction New Construction Core and Shell Schools Retail Data Centers Warehouses and Distribution Centers Hospitality Healthcare LEEDv4 for Interior Design and Construction Commercial Interiors Retail Hospitality LEEDv4 for Homes Design and Construction Homes & Multifamily Low-rise Multifamily Mid-rise LEEDv4 for Building Operations & Maintenance Existing Buildings Schools Retail Data Centers Hospitality Warehouse and Distribution Centers Multifamily *DDD grant to be Commercial, Industrial, Residential or Mixed- Use Buildings- can apply to different LEED Rating Systems.
LEEDv4 for New Construction Integrative Process (1 point) Location & Transportation (16 points) Sustainable Sites (10 points) Water Efficiency (11 points) Energy & Atmosphere (33 points) Materials & Resources (13 points) Indoor Air Quality (16 points) Innovation (6 points) Regional Priority (4 points) Certified- 40-49 points Silver- 50-59 points Gold- 60-79 points Platinum- 80+ points
Benefits of LEED Buildings
Market Demand 33% The Business Case for Green Building (USGBC, February 2015)
Sustainability Matters LEED-certified buildings with lower operating costs and better IEQ are more attractive to a growing group of corporate, public and individual buyers. In a Nielsen global survey on corporate social responsibility, more than half (55%) said they are willing to pay extra for products and services produced or offered from companies that are committed to positive social and environmental impact. 61% of corporate leaders believe that sustainability leads to market differentiation and improved financial performance.
Tenant Attraction The new Class A office space is green. Lease-up rates for green buildings typically range from average to 20 percent above average. Owners of green buildings reported that their ROI improved by 19.2% on average for existing building green projects and 9.9% on average for new projects.
Happiness and Productivity Annual utility costs per employee in green facilities was $675.26 lower than in non-green facilities. Employees working in the LEED-certified branches of the same financial institution was found to be "more productive and engaged in their work." Health care costs: Building retrofits that improved the indoor environment of a building resulted in reductions of: communicable respiratory diseases of 9-20%; allergies and asthma of 18-25%; and non-specific health and discomfort effects of 20-50%.
Good for the Bottom Line LEED-certified buildings have been proven to use 25% less energy and a 19% reduction in aggregate operational costs in comparison to non-certified buildings. There are also a variety of tax benefits and incentives (like the Downtown Development District grant!) Residential market: 73% of single-family builders and 68% of multifamily builders say consumers will pay more for green homes.
Delaware Solid Waste Administration Building LEED-CIv2009 Certified Certification 4,400 Sq ft. renovation of existing building Over 40% Water Use Reduction Over 37% reduction in lighting power 78% construction waste diverted from landfill
Delaware City DMV Facility LEED NC v2009 Silver Certification 43,000 Sq ft. new construction building Over 40% Water Reduction No permanent irrigation used on-site Over 20% reduction in energy costs
Liberty III at Hunter s Green
Liberty III at Hunter s Green 36% energy savings (by cost) compared to similar code buildings Over 50% of materials contained recycled content extracted & manufactured within 500 miles of job site 94% of construction waste materials were diverted from landfills
Kendal at Longwood Expansion LEED for Homes Rating System ENERGY STAR for Homes Rating System 48 Units are LEED Gold Certified Homes Green construction and operations, assessment of site development strategies, LEED documentation, cost benefit analysis
LEED Process 1. Consult LEED Accredited Professional. 2. Register your project on LEED Online (project must meet all minimum LEED requirements) a. completing forms b. submitting payment 3. Apply for LEED Certification through LEED Online a. Submit LEED Design review credits b. Submit Construction review credits 4. Review. Your LEED application is reviewed by GBCI for a technical review. a. Preliminary Review b. Final Review c. Appeal Review (Optional, appeal fees apply) 5. Certify. Receive the certification decisions. *Projects can lose points during the LEED Certification Process. Certified- 40-49 points Silver- 50-59 points Gold- 60-79 points Platinum- 80+ points
LEED Grant Process Submit with Reservation Application A completed and signed LEED letter of intent A copy of the developer s contract with a LEED Accredited Professional (or LEED consultant) A copy of LEED Accredited Professional s certificate or list of experience Submitted during Development Process A copy of the LEED Scorecard A copy of the online Design Review printout comments and Construction review comments Documentation from USGBC of milestone LEED submissions A copy of their USGBC LEED Silver Certification when obtained Applicants can submit documentation of third-party costs along the design, development, and certification process. This separate funding is disbursed after the building is complete and the USGBC s LEED Silver certification is submitted.
DDD/LEED Grant Resources Office of State Planning Coordination Link to District, State, and Local Incentives Interactive Map of Designated Districts http://www.stateplanning.delaware.gov/ddd Delaware State Housing Authority DDD Grant Information LEED Grant Information http://www.destatehousing.com/ddd
Contacts Hillary Austin Delaware State Housing Authority Phone: 302-739-4263 Email: hillary@destatehousing.com Karen Horton, AICP Delaware State Housing Authority Phone: 302-739-4263 Email: karenh@destatehousing.com Michael Pavelsky, AIA, LEED AP BD+C The Sheward Partnership, LLC Phone: 215-751-9301 Email: mwp@tsparch.com Leah Wirgau, LEED Green Associate Delaware Valley Green Building Council Phone: 215-399-5798 Email: lwirgau@dvgbc.org