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South Bend Redevelopment Commission <br /> Regular Meeting—December 13, 2011 <br /> 6. NEW BUSINESS (CONT.) <br /> C. Airport Economic Development Area <br /> (2) continued... <br /> pretty substantial. The park is taking that <br /> away from them. The goal is you're looking <br /> at that upfront in your cost payback analysis. <br /> You're not just looking at the cost of the <br /> equipment. When you run the payback <br /> analysis you have to consider operations and <br /> maintenance in that entire total cost model. <br /> Mr. Varner questioned the source by which <br /> the city provides lower rent: it's the city <br /> subsidizing the rent by providing the <br /> ecosystem at its own expense. Mr. Lake <br /> replied that on the front end yes, but it <br /> becomes a revenue stream at a point as well. <br /> If it makes you money, it's sustainable. <br /> Mr. Miles added that the city could decide to <br /> recoup the 5-8 percent through a connection <br /> charge or by some other means. The city <br /> would make a business plan for <br /> sustainability. <br /> Mr. Lake noted that CCHP is an 80 percent <br /> efficient process where distributed energy <br /> from the utility companies is closer to 38 <br /> percent. Projecting rising electrical rates on <br /> an expected schedule of increases, the city <br /> could be expected to show annual revenue <br /> from the use of the Renewable Energy Center <br /> of at least $1.5 million. <br /> BSA has done initial cost/benefit calculations <br /> for the CCHP, but feels the city needs a full <br /> blown feasibility study to determine whether <br /> that is the way it should go, and has made a <br /> proposal to do such a feasibility study, <br /> 65 <br />