Celtic Bank announced that it recently funded a PACE bond with Los Angeles County in the amount of $6.68MM for the New Constance Hotel located in Pasadena, California. Funds for the New Constance Hotel will be used to install energy efficient improvements including new HVAC and controllers, LED lighting, elevator motors and controls, window treatments, water systems, and insulation.  These improvements are estimated to save 207,488 kWh per year in electricity usage and reduce water consumption by 3,200,000 gallons. The closing of the New Constance Hotel PACE bond brings the total amount of PACE fundings by Celtic Bank to $14,065,000.

"Most clean energy programs require taxpayer and government subsidies to make them economically viable. We are excited to participate in a program like PACE that utilizes private capital to fund clean energy improvements that actually increase the operating cash flow of the entity," said Jake Barney, Chief Financial Officer of Celtic Bank.    

PACE (Property Assessed Clean Energy) is a unique financing vehicle offered by local governments in states with PACE enabled legislation.  PACE allows property owners to finance 100% of the costs to make energy efficient upgrades or renewable energy updates to their buildings. Currently, 31 states, plus Washington D.C. have adopted PACE enabling legislation.  In states with PACE enabled legislation, local governments offer bonds to investors, then loan the proceeds from the bonds to consumers and businesses to make energy efficient upgrades or installations. The loan is then repaid over a specified period of time (up to 20 years) through a property tax assessment.

Structured Finance Associates, LLC worked with Celtic Bank to arrange funding for this transaction. 

Headquartered in Salt Lake City, Utah, Celtic Bank was named the 6th largest SBA lender in the nation for FY 2013.  Celtic Bank is a nationwide lender and leading provider of USDA loans, SBA 7(a) and 504 loans, express loans, asset-based loans, factoring services, residential and commercial real estate loans, and construction loans.