State of Illinois agencies occupied dozens of facilities that would benefit by energy retrofits. Energy savings contractors were willing to guarantee that replacement chillers, boilers and other HVAC components would pay for themselves over a 10-year period. However, the collateral value of the retrofit for each facility was insufficient to support a financing. The State turned to Norton Scott professionals for a solution. By pooling multiple projects into a master lease with the State and cross-collateralizing them, we were able to credit enhance the individual, appropriation-based leases to raise the necessary financing for the entire program. Monetizing the future guaranteed energy cost savings made the retrofit investments possible.
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