Conference examines environmentally friendly development

The two-day conference was led by Kenneth W. Hubbard, executive vice president of Hines in New York City. It drew attendees from the building industry, the U.S. Environmental Protection Agency, the U.S. Green Building Council and public officials from across the country.

David Gottfried, founder of the U.S. Green Building Council, described his personal transformation from “greed to green” while attending a 1992 meeting of the American Institute of Architects on sustainable development. Soon after, he abandoned what he described as the “greed is good” approach applied to real estate development, and forming the U.S. Green Building Council in 1993.

Gottfried said the council’s model for environmentally conscious development practices is used in more than 12 countries today.

“Globally, we are waking up. We have an opportunity to change the course of history and that can be profitable,” Gottfried said in a July 12 news release.

Although the initial costs of green building can be higher than more traditional forms of development, Gottfried said that ultimately, there will be a return on the investment in environmentally conscious development.

For instance, he noted, green buildings can command higher rents and cut operating costs from one-third to one-half. He told conference attendees to “prepare for the day when you can’t get a loan without a green check list. It’s coming.”

Some cities, including New York, Chicago, Houston and Los Angeles, now require green buildings, said Gregory Kats, principal of Capital E in Washington, D.C., who makes the case for the value of building green. Kats said his company did a study two years ago of 40 green buildings that showed green features added a cost of $3 to $4 a square foot, or about 2 percent above normal construction costs. However, he said, energy costs are cut by one-third with a green building.

Green construction elements include water and energy efficiency, healthy paints and glues, all natural, undyed carpet made from 100 percent wool, recycled wood and building products. The greatest cost savings are gained with energy efficiency. In addition to the financial benefits of green building, Kats cited a study by the Natural Resources Defense Council that evaluated productivity and health benefits of green buildings and found a 7 percent increase in productivity of workers in green buildings. “The most important aspect of green building is caring about our employees,” he said.

Dan Winters, principal of Evolution Partners in Washington, D.C., said while there are no direct benefits provided by capital markets for green projects, there are hidden benefits in that the market translates green construction features into economic benefits. He said there is an initiative under way by a consortium of financial firms to translate “green” into an underwriting bonus by modifying the underwriting standards and providing a credit for green construction. “This is the tipping point,” Winters said.

Several best practices for building green were cited, including:

• working with a certified Leadership in Energy and Environmental Design architect. This certification refers to the U.S. Green Building Council’s LEED recognition program for environmentally conscious and sustainable building practices;

• starting with an integrated approach;

• understanding how and where to use solar energy; and

• picking a location that has existing infrastructure, and which is close to public transportation.

“The No. 1 lesson to take away is that you need high density where infrastructure exists,” said Jonathan Rose, president of Jonathan Rose Cos., LLC in Kotonah, N.Y. “If we are going to get people to live in dense communities, we have to make them really great places.”

The Urban Land Institute is a nonprofit education and research institute supported by its members. Its mission is to provide responsible leadership in the use of land in order to enhance the total environment.

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