NEW: National Story Questions City Loan
Friday, September 09, 2011
A Wall Street Journal article questioning cities’ decisions to take out “green” loans hit newsstands this week and Providence was one of the cities featured.
Last November, then-Mayor and current Congressman David Cicilline initiated the efforts to take out a $35 million loan, the majority of which went to close last year’s budget deficit. The other $5 million went toward making city buildings more energy efficient.
The loan eventually was completed in January under Mayor Angel Taveras.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe company giving out the loans is Class Green Capital. On its website, the company features its Green Monetization Program, in which “Class Green acts as either principal or advisor (depending on the municipality’s specific needs) to:
Offer municipalities (or other entities) general or special-purpose, taxable or tax-exempt funding from $10 million to over $100 million per transaction
Use as the underlying collateral existing or to-be-constructed municipal-owned buildings (including office buildings, parking facilities, police and fire stations, schools, etc.) subject to a long-term municipal lease - though other structures are also available
Simultaneously invest in the environmental performance of the buildings, decreasing operating costs, reducing carbon emissions, and improving working conditions.”
Note: A previous version of this story incorrectly reported that the loan went through in November.
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