Cucamonga Valley Water District Frontier Project Sets Standard for Green Building, Conservation and Green Finance

RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--Cucamonga Valley Water District successfully closed a $410,000 Clean Renewable Energy Bond issue. When combined with an approximately $28 million revenue certificates of participation closed a month earlier, this completes this Southern California water district's public financing plans for a conservation and renewable energy demonstration facility called the Frontier Project. Water system improvements were also financed.

Additional funding for the Frontier Project will come from a $7,000,000 capital campaign seeking support from foundations, individuals and corporate partners. To date, $1,000,000 has been raised in private funding. Tax-deductible contributions are received through the Frontier Project Foundation, a 501(c)3 public charity.

Cucamonga Valley Water District's Frontier Project is designed to be a 14,000 square foot LEED® (Leadership in Energy and Environmental Design) Platinum demonstration building located on the District's administration and operations campus. The Frontier Project will serve the Inland Empire and Southern California as a resource featuring the latest technologies in residential and commercial water, energy and land conservation. The Frontier Project is expected to be open in November, 2009.

"The Frontier Project is an important component of our stewardship of a very valuable Southern California commodity, water. In addition, the Frontier Project serves as a focal point for residents and builders to gain important insight and information about the latest green building techniques that save both resources and money," said District’s General Manager/CEO Robert DeLoach. Board President, Randall James Reed, added, "The use of the innovative Clean Renewable Energy Bond in combination with a public campaign speaks to the District's leadership in resource conservation as well as fiscal responsibility."

The public phase of the financing plan includes an issue of Clean Renewable Energy Bonds (CREB). The authority for CREBs has recently been expanded in the American Recovery and Reinvestment Act. The CREB will serve as an interest-free loan to the District while the CREB investor realizes an annual income tax credit.

As a relatively new financial market instrument, it was a challenge to find an investor for the CREB. The investor purchased the tax credit bond after a thorough review of the Frontier Project Foundation's goals and the credit quality of the District's repayment promise.

“Stone & Youngberg is pleased we were able to place the CREB as well as underwrite the more conventional certificates of participation to provide the financial resources to the District for the Frontier Project," said Anna Van Degna, a vice president with bond underwriting firm, Stone & Youngberg.

Additional information about the Frontier Project can be found at www.frontierproject.org. Information about Cucamonga Valley Water District can be found at www.cvwdwater.com. Information about Stone & Youngberg, the investment bank responsible for structuring the financing program, can be found at www.syllc.com.