CenTrio
Summary
CenTrio is proud to announce a transformative long-term 50-year Public-Private Partnership (P3) with Eastern Michigan University. Eagle Energy Partners (“EEP”), as the Concessionaire, wholly owned by CenTrio will invest in, modernize, and manage the University’s utility infrastructure to maintain existing heating, cooling, and electric systems, and will implement innovative and sustainable energy solutions across the entire campus. This is the first collaboration of its kind that will see Gilbane Development Company, as the University’s Master Developer, supporting the Welcome Home 2025 Plan and CenTrio, as the energy partner, supporting the Comprehensive Energy Management program, both of which are progressive initiatives that enable EMU to focus on its core mission of academics and research while driving campus growth and increased sustainability.
"Along with Gilbane as our Campus Master Developer, we are excited to partner with CenTrio to advance our sustainable energy goals," said Mike Valdes, CFO of Eastern Michigan University. "This partnership with CenTrio allows us to modernize our energy infrastructure, reduce deferred maintenance, improve the efficiency and reliability of our systems, and enhance experiential learning at the campus while also providing upfront cash infusion to fund strategic initiatives on campus."
Throughout the duration of the agreement, CenTrio will be entrusted by the University with the task of modernizing, operating, and maintaining the electrical, heating, cooling, and domestic water systems on campus. EMU will continue to maintain ownership of its facilities and retain control over decisions pertaining to capital improvements.
This strategic partnership will yield numerous advantages including effective risk transfer, enhanced safety measures through operational excellence, and a significant reduction in energy consumption and GHG reduction by nearly 40% and water usage by an estimated 20% over time. Furthermore, this partnership is anticipated to deliver a positive impact on EMU's STARS (Sustainability Tracking, Assessment & Rating System) rating, emphasizing the university's unwavering dedication to sustainability and environmental stewardship.
"Sustainability is not just a trend for us at CenTrio, but an ingrained approach and commitment that guides the heart of our operations,” said Peggy Smyth, Chair of CenTrio. “We are thrilled with the founding of this partnership, supporting Eastern Michigan University in achieving its long-term strategic goals. By managing and modernizing the utilities for EMU, we empower the university to focus on its core business of academics and research, while ensuring the campus has access to reliable, efficient, and sustainable energy.”
Geoff Eisenacher, Senior Development Director at Gilbane, expressed excitement about the partnership, stating, "At Gilbane, we are committed to creating more modern and efficient developments that reduce our impact on the environment. The partnership with EMU and CenTrio allows us to leverage our expertise in sustainable development to contribute to a greener future for the university and the community."
In addition to the operational and financial benefits, the partnership with EMU offers academic collaboration and campus sustainability initiatives for continued student engagement. The sustainability platform produced through this partnership will provide opportunities for student curriculum enhancement, direct positive impact to university ratings, rankings, and accreditations, and enrichment of the health and well-being of its students, faculty, staff, and surrounding campus community. The partnership also emphasizes a strong social equity focus and commitment to project transparency, fostering a collaborative approach towards creating a more sustainable and inclusive campus.
“The RJA team has had the pleasure of working with EMU for nearly five years on a variety of campus initiatives and is excited to continue our long relationship as we identify the various aspects of this partnership that support not only the Welcome Home 2025 Initiative, but others that will generate impacts for stakeholders for decades to come,” said Richard Rieth, Principal, Rieth Jones Advisors.
Advising CenTrio on this transaction includes Société Générale as Financial Advisor, Mayer Brown as Legal Counsel, and Burns & McDonnell as Technical Advisor. Advising EMU includes Rieth Jones Advisors as Strategic Advisor, and Dickinson Wright as Legal Counsel. Gilbane is serving as Master Developer and design-builder of the Welcome Home 2025 plan and is also managing operations and maintenance of EMU’s student housing.
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