Developers of a planned $820 million resort project in southwestern Utah have received $153 million in financing through the federal commercial property assessed clean energy program, geared to energy efficiency in new projects and redevelopments.
Austin, Texas-based Petros PACE Finance said it arranged the financing on behalf of Alpine, Utah-developer Reef Capital Partners, which is building the multi-phase Black Desert Resort project in Ivins, Utah, about 10 miles northwest of St. George near Zion National Park.
Plans for the mixed-use development include 150 hotel rooms, 1,050 condominiums, trails, a wellness spa and approximately 46,000 square feet of retail and restaurant space. The first phase includes an 18-hole golf course now under construction and scheduled to open in November.
The development also includes a lakeside venue called 19th Hole, an amphitheater-style gathering space terraced into black lava at the project site, according to a statement from Troon, the project’s Scottsdale, Arizona-based golf course operator.
Petros officials said in a statement that the commercial financing is among the largest on record for the funding program better known as C-PACE, which uses borrowed capital to pay for upfront costs associated with energy efficiency or renewable energy projects. Capital is repaid over time through voluntary tax assessments on borrowers spelled out in financing arrangements, with requirements varying by state.
Petros said the financing deal for the Black Desert Resort project is approximately 50% larger than the previous record deal under the C-PACE program. “C-PACE has arrived as a mainstream financing tool of choice for large, complex integrated commercial construction and renovation project across the country,” Petros CEO Mansoor Ghori said in a statement.
According to the U.S. Department of Energy, private firms often participate in C-PACE as lenders, developers or contractors. The program has financed approximately $500 million in projects nationwide since its debut in 2008.