The PREA conference is still going strong at the Waldorf Hotel where yesterday (March 8) panelists discussing investment strategies were asked about their concerns about the energy crisis on the West Coast. All of the panelists make substantial investments in the real estate industry and responded that it is a concern and the potential spread of the crisis nationally weighs on their minds.
Timothy J. Hoeppner, managing director of real estate at the John D. and Catherine T. MacArthur Foundation, responded, "I run our energy portfolio as well and I haven't seen it trickle through the economy yet, but frankly I'm surprised we haven't seen more of an impact." He noted that the potential for economic repercussions in real estate and the economy in general are there and that he is concerned the situation could worsen.
The EDC's spokespeople indicate it anticipates approximately 200 free energy audits to industrial firms in the first round of the program to take place. The New York State Energy Research and Development Authority will conduct the audits jointly with the EDC.
"These audits will provide companies with recommendations on how to implement energy-efficient facility upgrades," said Deputy Mayor for Economic Development and Finance Robert M. Harding. "Such upgrades are a solid investment that may offer a pay-back period of as little as one to three years and can provide returns on investment in the range of 30-50%."
Mayor Giuliani and EDC president Michael G. Carey both agreed. "Next to rent, energy costs are the greatest operating expense businesses have," said Carey. "These free energy audits will allow companies to save money, helping companies to stay and expand in New York City." Mayor Giuliani added, "Cost effective conservation measures are a great way for businesses to reduce costs and improve their bottom lines. These free energy audits will help business owners decide which energy projects are best for them."
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