8/14/2019 Hospitality Lawyer at The Hotel Developers Conference wiith Gary Golla of SERA

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SERA ARCHITECTS INC. 2008 The Nines: A Sustainable Hospitality Case Study

THE NINES: A STARWOOD LUXURY COLLECTION HOTEL SAGE HospitalityLEED Silver Target

8/14/2019 Hospitality Lawyer at The Hotel Developers Conference wiith Gary Golla of SERA

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SERA ARCHITECTS INC. 2008 The Nines: A Sustainable Hospitality Case Study

CREDITS (10 of 14 possible)Site Selection $ 0Development Density & Community Connectivity $ 0Brownfield Redevelopment $ 0Alternative Transportation, Public Transportation Access $ 0Alternative Transportation, Bicycle Storage & Changing Rooms $ 24,000Alternative Transportation, Fuel- Efficient Vehicles (operations cost per year) $ 2,000Alternative Transportation, Parking Capacity $ 0Heat Island Effect, Non-Roof $ 35,660

Heat Island, Roof $ 0Light Pollution Reduction $ 0Total Cost for Category $ 61,660

BENEFITSIncreased convenience for guests via car share program.Reduced impacts of transportation and associated carbon emissions.Mitigate on and off site environmental degradation.

SUSTAINABLE SITES

cost premium

above typical

8/14/2019 Hospitality Lawyer at The Hotel Developers Conference wiith Gary Golla of SERA

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SERA ARCHITECTS INC. 2008 The Nines: A Sustainable Hospitality Case Study

CREDITS (3 of 5 possible)Water Efficient Landscaping, reduce by 50% $ 0Water Efficient Landscaping, no potable use or no irrigation $ 0Water Use Reduction, 20% $ 32,300

Total Cost for Category $ 32,300

BENEFITSReduced water consumption by 28%.

Expected water utility cost savings for property of$7,854 per year.$280,963reduction of City System Development Charges for efficiencies.

WATER EFFICIENCY

cost premium

above typical

8/14/2019 Hospitality Lawyer at The Hotel Developers Conference wiith Gary Golla of SERA

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SERA ARCHITECTS INC. 2008 The Nines: A Sustainable Hospitality Case Study

CREDITS (8 of 17 possible)Prerequisite: Fundamental Commissioning (soft cost) $ 41,800Optimize Energy Performance, 25%(5 points) $ 281,750Enhanced Systems Commissioning (soft cost) $ 17,100

Ozone Depletion $ 10,000Green Power, 50% for 2 year contract (operations cost) $ 13,483Total Cost for Category $ 364,088

BENEFITSReduced energy consumption by 28%.Expected utility cost savings for property of$102,094per year.Verification that systems work as designed.

ENERGY & ATMOSPHERE

cost premium

above typical

8/14/2019 Hospitality Lawyer at The Hotel Developers Conference wiith Gary Golla of SERA

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SERA ARCHITECTS INC. 2008 The Nines: A Sustainable Hospitality Case Study

CREDITS (4 of 13 possible)Building Reuse, 50% & 75% of Existing Walls, Floors & Roof $ 0Construction Waste Management, Divert 75% from Landfill $ 100,000Recycled Content, 5% $ 0

Total Cost for Category $ 100,000

BENEFITSReuse of existing historic structure.

22 millionpounds of material diverted from landfill or720 truckloads.Reduced use of virgin material.

MATERIALS AND RESOURCES

cost premium

above typical

8/14/2019 Hospitality Lawyer at The Hotel Developers Conference wiith Gary Golla of SERA

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CREDITS (5 of 15 possible)Prerequisite: Fundamental Commissioning (soft cost) $ 10,000Low-Emitting Materials, Adhesives & Sealants $ 0Low-Emitting Materials, Paints & Coatings $ 0Low-Emitting Materials, Carpet Systems $ 0Indoor Chemical & Pollutant Source Control $ 7,000Thermal Comfort $ 15,000Total Cost for Category $ 32,000

BENEFITSComfortable & healthy indoor environment for guests and employees.

INDOOR ENVIRONMENTAL QUALITY

cost premium

above typical

8/14/2019 Hospitality Lawyer at The Hotel Developers Conference wiith Gary Golla of SERA

7/9SERA ARCHITECTS INC. 2008 The Nines: A Sustainable Hospitality Case Study

CREDITS (5 of 5 possible)Green Housekeeping Policy (operations cost) $ 800Guest Education $ 4,000100% Green Power for 2 years (operations cost) $ 9,854Car Share Program for Hotel Guests (operations cost) $ 0LEED Accredited Professional $ 0Total Cost for Category $ 14,654

BENEFITS

Healthy environment for guests and employees.Support of renewable energy.

TOTAL LEED CREDITS TARGETED (LEED Silver 33 to 38 points) 35TOTAL COST ABOVE TYPICAL BUILDING FOR SUSTAINABLE INITATIVES $ 604,702

TOTAL COST ABOVE TYPICAL BUILDING HARD COSTS ONLY $ 519,710

INNOVATION AND DESIGN

cost premium

above typical

8/14/2019 Hospitality Lawyer at The Hotel Developers Conference wiith Gary Golla of SERA

8/9SERA ARCHITECTS INC. 2008 The Nines: A Sustainable Hospitality Case Study

The Nines, A Starwood Luxury Collection Property, Portland, OR - LEED Silver Target Opening Summer 2008*Preliminary Numbers -Values specific to the Pacific NW

Soft CostsIncentive Registration $ 3,000LEED Registration Fee $ 9,000Commissioning $ 56,660Energy model $ 30,720LEED credit calculation $ 55,880LEED process management $ 55,000

Total Soft Costs $ 210,260

Hard Cost Premiums above typical to achieve sustainability goals

Sustainable Sites $ 59,660Water Efficiency $ 32,300Energy & Atmosphere $ 291,750Materials & Resources $ 100,000Indoor Environmental Quality $ 32,000

Innovation & Design $ 4,000Total Premiums $ 519,710

Soft & Hard Cost Premium 1.2% of cons. $ 729,970

Nationwide Resource for Incentives: Database of Incentives for Renewables & Efficiency www.dsireusa.org

COST FOR LEED / SUSTAINABILITY BENEFITS ANALYSIS

IncentivesState Grant Incentives $ 81,985State Tax Credit Incentives (pass through) $ 216,104Reduced City Development Charges $ 280,963

Total Incentives $ 579,052

Costs Premium Less Incentives $150,9180.25% of construction

Utility Cost Pay Backs & Operating ExpensesEnergy Cost Savings per year $ 102,094Water & Sewage Cost Savings per year $ 7,854Additional Ops Costs per year $ 2,800Green Power cost per year (2yrs) $ 11,646

ROI per years 1&2 $ 95,502

ROI per year 3 > $ 107,148TOTAL ROI 10 years $ 996,896

Pay Back Per iod to Cover Premium 19 Months

http://www.dsireusa.org/http://www.dsireusa.org/

8/14/2019 Hospitality Lawyer at The Hotel Developers Conference wiith Gary Golla of SERA

9/9SERA ARCHITECTS INC. 2008 The Nines: A Sustainable Hospitality Case Study

THE NINES: A STARWOOD LUXURY COLLECTION HOTEL SAGE HospitalityLEED Silver Target

energy & water efficiency - healthy indoor environment - ability to increase market share - 3rd party verification