CASE STUDY

Neil Kelly Building Energy and Seismic Makeover

PropertyFit financing enabled energy, water, and seismic improvements on existing office/retail

Background

Neil Kelly Company used PropertyFit commercial property assessed clean energy (CPACE) financing to implement a multitude of energy, water, and seismic improvements to its Portland, OR design center. The project solved existing structural issues and significantly reduced energy and water demand.

Project Overview

Plans to upgrade its design center inspired Neil Kelly Company to pursue a comprehensive renovation. The 70-year-old design/build home remodeling company is the first existing building retrofit to be financed through PropertyFit.

Neil Kelly’s design center, showrooms, and offices occupy a 22,000 square foot North Portland building acquired in 1978. The building has expanded over time through additions and remodels, but the original structure had been left nearly untouched. The company’s initial need for a new presentation kitchen snowballed into a bigger project that solved other building issues.

Nearly half of the total project cost is dedicated to the seismic upgrade, which includes updated shear walls and tie-downs, and the installation of structural reinforcement to improve safety and reduce impact in the event of an earthquake. Outdated fluorescent lighting will be upgraded to energy efficient LED technology with energy-saving control systems that will reduce lighting demand by more than 50%. Water efficiency improvements will reduce water use in the kitchen and lavatories, and HVAC upgrades will improve building comfort with an updated rooftop gas HVAC unit and a new ductless heat pump. Installation of a 30-kilowatt solar electric system is expected to offset approximately 20% of the building’s electrical use.

“These improvements are going to be transformational in the way the building works for us and significantly improve the safety and efficiency of the structure for our employees and clients.”

Tom Kelly, President, Neil Kelly Company

Neil Kelly used its own skilled team to do much of the construction work and engaged Verde Builds, a licensed general contractor that offers job opportunities and training for minorities and low-income people to manage the EV installation, lighting, and seismic retrofit work. Energy Trust of Oregon delivered technical services—including a solar feasibility analysis, and lighting and HVAC studies—to jumpstart the energy saving and generation analyses required for PropertyFit financing. Energy Trust also identified cash incentives to further offset project costs.

Neil Kelly turned to PropertyFit because of its long-term financing for energy efficiency, renewable energy, water conservation, and seismic projects, and the flexibility it offers property owners. Prosper Portland was able to finance the $290,000 project internally because the building is in the City of Portland’s Interstate Corridor Tax Increment District and meets Prosper Portland’s social equity goals for supporting minority contractors in agency-funded projects.