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Posted on Wed, Jul 18, 2012 : 5:57 a.m.

Big Boy, Bivouac among first businesses to apply for Ann Arbor's new energy program

By Lizzy Alfs

When Bivouac owner Ed Davidson applied for Ann Arbor’s new Property Assessed Clean Energy program, he had a specific goal in mind: save money on his electrical bills.

Davidson was one Ann Arbor’s first business owners to apply for the PACE program — which offers funds to business owners looking to make energy efficiency upgrades on their properties.

big_boy_restaurant_plymouth_road_red_roof_inn.jpg

The Big Boy restaurant on Plymouth Road, which is attached to a Red Roof Inn, is one of the first businesses to apply for Ann Arbor's new PACE program.

Angela Cesere | AnnArbor.com

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Ed Davidson, owner of Bivouac clothing store, applied to the PACE program for lighting upgrades.

AnnArbor.com file photo

Through the program, qualifying property owners are able to borrow money for energy efficiency projects ranging from $10,000 to $350,000 and then pay back the loans through special assessments added onto their tax bills for up to 10 years.

Officials said the program, which Ann Arbor City Council unanimously approved in 2011, would make an estimated $4 million available to property owners in its first phase.

Davidson, whose clothing store is located at 336 S. State St. in downtown Ann Arbor, applied for a lighting upgrade that will save an estimated 15 percent per year on energy usage.

“We’re doing this in phases with two loans since we have four storefronts,” Davidson said.

“We’ve instituted phase one and I’m already seeing a decrease in my electrical bill and we’re saving lots of energy,” he continued. “I applied for the second loan to capture all the rest of the lighting in the store.”

Joining Bivouac, the Big Boy restaurant on Plymouth Road in Ann Arbor also was one of the first businesses to apply for the program.

Big Boy’s improvements, according to city documents: Energy Star commercial appliances, lighting upgrades, replacement water heater and new high efficiency HVAC units.

The upgrades would save 22 percent per year in energy used plus maintenance costs, according to the documents.

Franchise owner Joe Diequez could not immediately be reached for comment.

Program administrator Wendy Barrott said PACE got off to a slow start, but the applications are now starting to roll in.

“We have other applications that are not quite complete, but will be going into the process shortly,” she said. “I’ve got five more besides these in my hand and then I have several multi-family (properties) and I’m trying to figure out how to get them into the fold.”

As for other projects at Bivouac, Davidson said upgrades such as furnace replacement and insulated windows are the landlord’s decision, but he’s pleased with the money he’ll save just on the lighting upgrades.

“I think it’s a great program,” Davidson said. “I am surprised everybody isn’t doing it.”

Read more about the PACE program here, or visit a2energy.org.

Lizzy Alfs is a business reporter for AnnArbor.com. Reach her at 734-623-2584 or email her at lizzyalfs@annarbor.com. Follow her on Twitter at http://twitter.com/lizzyalfs.

Comments

BobbyJohn

Wed, Jul 18, 2012 : 3:37 p.m.

Lighting upgrades have a very quick payback

PineyWoodsGuy

Wed, Jul 18, 2012 : 3:15 p.m.

The food at Big Boy is great. Goober, try the Brawny Lad, you can substitute a slice of tomato for the onion! This restaurant is the cleanest in the county.

Bob Tinker

Wed, Jul 18, 2012 : 2:02 p.m.

In order to participate in the PACE program, an energy audit on your building is required. My firms, Kelly-Tinker Architects & Archiopolis, conducted the audits for both of these facilities as well as a majority of the other initial applicants. There are federal tax credits and utility rebates also available to help fund commercial energy efficiency projects. We are a small long established firm in Ann Arbor. You can google us for contact information.

Goober

Wed, Jul 18, 2012 : 1:16 p.m.

I wonder if this will improve the food offered at Big Boy's?

Michigan Reader

Wed, Jul 18, 2012 : 10:12 p.m.

The food is already good there, no improvement needed. But, the hospitality industry has thin profit margins, and this will improve their bottom line.

xmo

Wed, Jul 18, 2012 : 12:55 p.m.

It will be interesting to see what the actual savings are? Hopefully they keep track of it! Maybe annarbor.com could keep this in the news so we know what is fact and what is fiction? "The upgrades would save 22 percent per year in energy used plus maintenance costs, according to the documents."