Terra State approves financing for $6.6 million green energy project

FREMONT — Volatile interest rates pushed Terra State Community College to act quickly Tuesday in approving a financing agreement for the college's new energy improvements.

The college's board approved a fixed rate bond authorization not to exceed $7 million with PNC Bank to finance Terra State's deferred maintenance agreement with Perrysburg-based Wadsworth Solutions.

Terra State plans several campus energy upgrades, including a proposed on-site 1.7-megawatt solar photovoltaic array.

President Ron Schumacher said the board had planned to vote on the financing at its May 25 regular meeting, but the daily rise in interest rates led him to ask for an emergency board meeting Tuesday.

62 banks contacted, 2 responded with proposals

Holding the vote on a bond agreement sooner enabled the board to lock in the lowest interest rate possible.

Mike Burns, a financial services managing director with Baird, told the Terra State board he had reached out to 62 banks about financing the deferred maintenance agreement.

Burns said two banks responded with proposals.

He recommended PNC Bank, which offered a seven year, fixed-interest rate of 3.548% for a 15-year bond.

After seven years, the college can decide whether to refinance the bond.

Burns said the annual payment on the bond would average $584,000.

Schumacher said after the board meeting the Ohio Attorney General's office still needs to approve the college's deferred maintenance agreement with Wadsworth.

If the agreement is approved, Terra State would commit to installing a solar array that would eventually power all of its campus buildings.

Lighting upgrades, temperature controls also planned

Other potential energy improvements include lighting upgrades, mechanical equipment replacements, water conservation measures and temperature control measures.

Jeff Feasby, Wadsworth's energy group general manager, said in April the upgrades' overall projected cost is more than $6.6 million, with the solar array accounting for about half that total.

Feasby said the college, if the Ohio Attorney General's office approves the agreement and financing can be secured, would install the solar array system on eight acres of property it owns just off of Ohio 53 north of Terra State's Landings at Terra Village student housing complex.

The solar array would generate an estimated $193,000 in electric bill savings annually for the college.

Feasby said there would be a 15-year cumulative energy savings of $3.6 million.

He said the array, which will include 4,000 solar panels, would generate 2,3 million kilowatt hours annually for Terra State.

The deferred maintenance agreement also proposes to upgrade all campus fixtures to LED lighting, except in Building A, with more than 2,800 fixtures replaced or upgraded.

dacarson@gannett.com

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