PLEASANT HOPE, Mo. — The Show Me PACE Clean Energy District has announced the completion of the largest agricultural PACE project in the country – a farm-to-plate hog processing facility in southwest Missouri which utilized $4 million in Property Assessed Clean Energy (PACE) financing for energy and water improvements.
The project is a unique blend of a commitment to healthy food production, sustainable farming and preservation of natural resources. The driving force of facility owner/operator Moon Ridge Foods, LLC is to produce the safest, highest-quality, best-tasting pork products possible while enhancing the lives of their workers, local communities and supplying farmers – all while being good stewards of the environment.
Moon Ridge Foods retrofitted a 75,000-sq.-ft. steel-framed facility in Pleasant Hope, Missouri to accommodate their progressive production and processing methods. PACE financing paid for HVAC upgrades, a high-efficiency boiler, a solar photovoltaic system, an energy-efficient hog harvesting system, an insulated roof upgrade, LED lighting and energy-efficient packaging equipment.
The energy measures are expected to save 2.1 million kwh/year. The energy, water, operation and maintenance costs expected to be avoided during the term of the PACE financing is approximately $4.1 million.
Twain Financial Partners of St. Louis was the PACE capital provider for this project, which is the largest PACE project completed in Missouri in the five years PACE has operated in the state. RAHILL Capital of St. Louis served as the PACE project consultant, working with the Moon Ridge Foods’ management team to identify and quantify eligible improvements, securing a PACE capital provider and facilitating the clean energy district application process.
Established by state statute, PACE uses private capital to pay for energy and water improvements to a property. The fixed interest rate loans are repaid through annual property tax assessments.
“This project is a great partnership – we were able to break the mold and finance the largest PACE Ag project in the country,” noted Andrew Meyer, vice-president at Twain Financial Partners. “This proves that PACE can work anywhere, including in agricultural and rural settings.”
“PACE provided a way for Moon Ridge Foods to implement its strategic plan to significantly reduce energy costs and its carbon footprint,” observed Rob Hill, chief investment officer at RAHILL Capital. “Moon Ridge Food’s goal is to be the most energy-efficient, eco-friendly food production system in North America.”
“PACE is very attractive to commercial property owners because it offers up to a 20-year fixed interest rate, requires energy savings to offset the cost of the loan and can be considered ‘off-book,’” explained Josh Campbell, chairman of Show Me PACE. “It’s a fiscally-responsible way for property owners and developers to pay for energy and water cost improvements, whether they’re retrofitting an existing building or building new – without commitment or risk to the local municipality.”
PACE was a good fit for the sustainability-conscious Moon Ridge Foods management. Their energy efficiency efforts complement their dedication to the safe, humane handling of hogs.
“We’ve developed strict heirloom standards for genetics and feed,” noted Russ Kremer, Moon Ridge Foods co-founder and CEO. “Our pork is from Duroc hogs raised on a vegetarian-based diet without the use of steroids, hormones and routine antibiotic usage.”
“Since we’ve secured arrangements with several large-scale customers for the purchase of our premium pork products, we hope to establish 50 new sustainable farms in the region,” he added.
Twain Financial Partners is a St. Louis-based capital provider dedicated to providing PACE financing for energy efficiency, renewable energy and water conservation projects. Twain’s vast network of lenders and energy contractors allows for an efficient, streamlined process for obtaining on-demand capital for commercial, agricultural and industrial PACE projects.
RAHILL Capital, a St. Louis-based PACE consultant, works with property owners and real estate developers nationwide to simplify and expedite the process of securing PACE funding. RAHILL’s scope of work includes energy engineering, PACE legislative issues, district PACE applications, and underwriting and term negotiation with PACE capital providers. The Moon Ridge Foods financing is RAHILL’s fifth successfully-closed PACE transaction in Missouri.
For more information, contact:
- Josh Campbell, Show Me PACE, 573-616-1046
- Russ Kremer, Moon Ridge Foods, 573-690-0428
- Andrew Meyer, Twain Financial Partners, 314-300-4196
- Rob Hill, RAHILL Capital, 314-884-1150