Hospitality Attorney on green hotel development from the contractors view

8/14/2019 Hospitality Attorney on green hotel development from the contractors view

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$4 billion annuallyin Green Building

Expected to crest

10 billion/year by

2010


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Level of Corporate Green Building


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Vision for Corporate Sustainability over Next Three Years


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Whats gaining ground as adominant theme in urbandevelopment, though, isenvironmentally sustainable urbandevelopment. Green Building is

the next wave, and its here to stay.My pointis that the Green Building trend israpidly becoming ubiquitous.

- Kenneth D. Lewis

$20 Billion Commitment to Green


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$50 Billion Commitment to Green

This is not a wish list, but a realistic,achievable plan that services a critical

global need and responds to an emerginginvestment opportunity.

- Charles PrinceChief Executive

Established LEED Silver as standard for all new offices

and operation facilities around the world.

$10 billion to reduce own greenhouse gas emissions

$30 billion towards clean technology + renewables
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Corporate Americas Perspective


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Future-proofing

Source: REXplore http://members.aol.com/vrex/oil/price_forecast.htm
http://members.aol.com/vrex/oil/price_forecast.htmhttp://members.aol.com/vrex/oil/price_forecast.htmhttp://members.aol.com/vrex/oil/price_forecast.htm


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Lower Operating Costs

Minimize energy demand

A LEED Silver building uses 30% less energ

Energy Thoughtful Design:

Right-sized and high-efficiency systems

Commissioning!


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10/37CO2 by Sector

Global Influences


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Corporate Social Responsibility

Positive branding and good will

Recruit and retain employees(estimated cost to replace an employee is $50-$150K)

Triple Bottom Line profit, people,place


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U.S. BuildingImpacts:

12%Water Use 30%GreenhouseGas Emissions

65%WasteOutput

70%ElectricityConsumption


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AverageSavings ofGreenBuildings

ENERGY

SAVINGS30%

CARBONSAVINGS

35%

WATERUSE

SAVINGS

30-50%

WASTECOSTSAVINGS

50-90%

Source:

Capital E


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ImprovedBottomLine.

30-70%ENERGYSAVINGS

VERIFIEDPERFORMANCE

ENHANCEDPRODUCTIVITY

REDUCEDLIABILITY &

IMPROVEDRISK

MANAGEMENT

INCREASEDVALUE


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Over 70% reported these buildingsgenerated higher ROI than otherbuildings

91% believed that the health and well-beingof their building occupants is greater

Survey of 665 Building Industry Execs:

87% anticipate Green Building tokeep

increasing over the next three yearsMarket Barometer: Turner ConstructionNational Survey2005


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An effective Green Buildingprovides:

Healthy indoor environment

Reduced operation costs Favorable fiscal returns

Minimized construction,demolition &

operations impact on theenvironment= Performance Over Time

__________________________________

I d


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IncreasedProductivity.

IMPROVED TEST

PERFORMANCE

SCHOOLS

EARLIERDISCHARGE

HOSPITALS

INCREASEDPRODUCTION

FACTORIES

2-16%PRODUCTIVITY

INCREASE

OFFICES

INCREASEIN SALES PERSQUARE FOOT

RETAIL


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Life Cycle Cost

20yr NPV/sf

$49.90

($3.00)

$5.80

$0.50$8.50

$36.90

$52.90

Green Premium

Total 20yr NetBenefit/sf

Energy savings

Water savingsO&M savings

Productivity gains

Subtotal

Category

Capital E Analysi

20 yr term, $200/sf construction cost, 5% real interest rate, 1% productivity gaiAssumptions:


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U.S. Green Building Council

Formed in 1993

Mission:to mainstream high-performancebuilding

Non-profit coalition of member

organizations Utilize existing industry standards,

e.g. ASHRAE, IESNA, SMACNA

9000+ member organizations to date

63006300


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steady growthin the first 5 years

huge

growthin thelast 5years

19961996 19971997 19981998 19991999 20002000 20012001 20022002 20032003 20042004 20052005 20062006

61 102 158268

570

1137

2370

3532

4970

5832

63006300

TOTA

L

MEMBER

S

USGBCmembershipgrowth reflectsthe expansionof green

buildings inthe market


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LEED Rating System

Sustainable Sites 14Points

Prereq 1 Construction Activity PollutionPrevention Required

Credit 1 Site Selection 1

Credit 2 Development Density & CommunityConnectivity 1

Credit 3 Brownfield Redevelopment 1

Credit 4.1 Alternative Transportation, Public

Transportation Access 1Credit 4.2 Alternative Transportation, Bicycle

Storage & Changing Rooms 1

Credit 4.3 Alternative Transportation, LowEmitting & Fuel Efficient Vehicles 1

Credit 4.4 Alternative Transportation, ParkingCapacity 1

Credit 5.1 Site Development, Protect or RestoreHabitat 1

Credit 5.2 Site Development, Maximize OpenSpace 1

Credit 6.1 Stormwater Design, Quantity Control1

Credit 6.2 Stormwater Design, Quality Control 1

Credit 7.1 Heat Island Effect, Non-Roof 1

Credit 7.2 Heat Island Effect, Roof 1

Credit 8 Light Pollution Reduction

Water Efficiency 5 Points

Credit 1.1 Water Efficient Landscaping, Reduce by 50%1

Credit 1.2 Water Efficient Landscaping, No Potable Useor

No Irrigation 1

Credit 2 Innovative Wastewater Technologies 1

Credit 3.1 Water Use Reduction, 20% Reduction 1

Credit 3.2 Water Use Reduction, 30% Reduction 1

Energy & Atmosphere17 Points

Prereq 1 Fundamental Commissioning of the BuildingEnergy Systems Required

Prereq 2 Minimum Energy Performance RequiredPrereq 3 Fundamental Refrigerant Management

Required

Credit 1 Optimize Energy Performance 110

Credit 2 On-Site Renewable Energy 13

Credit 3 Enhanced Commissioning 1

Credit 4 Enhanced Refrigerant Management 1

Credit 5 Measurement & Verification 1

Credit 6 Green Power 1


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LEED Rating System

Materials &

Resources

13 Points

Prereq 1 Storage & Collection of RecyclablesRequired

Credit 1.1 Building Reuse, Maintain 75% ofExisting Walls, Floors & Roof 1

Credit 1.2 Building Reuse, Maintain 95% ofExisting Walls, Floors & Roof 1

Credit 1.3 Building Reuse, Maintain 50% ofInterior Non-Structural Elements 1

Credit 2.1 Construction Waste Management,Divert 50% from Disposal 1

Credit 2.2 Construction Waste Management,Divert 75% from Disposal 1

Credit 3.1 Materials Reuse, 5% 1

Credit 3.2 Materials Reuse, 10% 1

Credit 4.1 Recycled Content, 10% (post-consumer + 1/2 pre-consumer) 1

Credit 4.2 Recycled Content, 20% (post-consumer + 1/2 pre-consumer) 1

Credit 5.1 Regional Materials, 10% Extracted,Processed & Manufactured Regionally

1

Credit 5.2 Regional Materials, 20% Extracted,Processed & Manufactured Regionally

1Credit 6 Rapidly Renewable Materials 1

Indoor Env. Quality15 Points

Prereq 1 Minimum IAQ Performance Required

Prereq 2 Environmental Tobacco Smoke (ETS)Control Required

Credit 1 Outdoor Air Delivery Monitoring 1

Credit 2 Increased Ventilation 1

Credit 3.1 Construction IAQ Management Plan,During Construction 1

Credit 3.2 Construction IAQ Management Plan,Before Occupancy 1

Credit 4.1 Low-Emitting Materials, Adhesives &Sealants 1

Credit 4.2 Low-Emitting Materials, Paints &Coatings 1

Credit 4.3 Low-Emitting Materials, CarpetSystems

Credit 4.4 Low-Emitting Materials, Composite

Wood & Agrifiber Products 1Credit 5 Indoor Chemical & Pollutant SourceControl 1

Credit 6.1 Controllability of Systems, Lighting 1

Credit 6.2 Controllability of Systems, ThermalComfort 1

Credit 7.1 Thermal Comfort, Design 1

Credit 7.2 Thermal Comfort, Verification 1

Credit 8.1 Daylight & Views, Daylight 75% of

Spaces 1Credit 8.2 Daylight & Views, Views for 90% of


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LEED-NC Point Distribution

Water

Efficiency

8%Energy &

Atmosphere

27%

Materials &

Resources

20%

Sustainable

Sites

22%

Indoor

EnvironmentalQuality

23%

Five LEED credit categories

Increase


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2002:More than80 millionsquare feet.



2005:500 millionsquare feet.

Increasein LEEDProjects

2006:519 millionsquare feet.

$200 BILLION


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Estimated valueof new LEED forNew Constructionregistered projects

The value of U.S.construction startssignificantly declined byalmost half from 2000 to2003

2000 2001 2002 2003 2004

$792 MILLION

$3.24 BILLION

$3.81 BILLION

$5.76 BILLION

$7.73 BILLION

YTD2006

$10BILLION

$200 BILLIONPROJECTED


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LEED Certification Process

A three-step process:

Step 1: Project Registration ($450) Step 2: Technical Support

Reference Package

Credit Inquiries and Rulings (CIR)

Step 3: Building Certification($.026/sf)

Upon documentation submittal

and USGBC review


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LEED streamlined, refined

and online


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Four levels of LEED certification:

Certified Level 26 - 32 points

Silver Level 33 - 38 points

Gold Level 39 - 51 points

Platinum Level 52+ points (69

Technical Overview of LEED


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What does Green Building Cost?


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Results of the California

study_2


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Study of 45 buildings nationally:

LEED Silver 1.8% premium

Cost of Green Building

2004 Davis Langdon Study

2007 Davis Langdon Update:there is no significant difference inaverage costs for green buildings, ascompared to

non-green buildings.


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Marketing Green

Health we spend over 90% of our time indoors

Energy costs future proof against price spikes

Competitive advantage over brown projects


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Three keys to cost-effective Green Building

Go Green Early

Integrated/Whole Systems Design

Experienced Project Team


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Green building is the

future of real estate,companies well-positioned in themarketplace will

benefit.

Douglas Durst,

President

The Durst

OrganizationFour Times Square


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If youre starting a new development

project today, and youre not makingit as green as possible, it will befunctionally obsolete the day it opens

for business, and economicallydisadvantaged for its entire lifetime.

- Jerry

Y d l

Hospitality Attorney on green hotel development from the contractors view

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