Glenwood Springs commercial building owner invests in energy upgrades and saves

Jason Fitzhugh, the owner of a commercial building in Glenwood Springs, knew it was time to upgrade. His heating and cooling systems were aging, maintenance and repair costs were mounting, and energy costs were out of sight.

The home of a Veterans’ Affairs (VA) clinic, Sunlight Dentistry and a few other wellness offices, the 11,000-square-foot building at 2345 South Grand Avenue is locally well known and well managed. But it was built in the mid-1970s, and when Fitzhugh bought it, nine years ago, he knew it would need to be modernized.

Jason Fitzhugh stands underneath his building's new high-efficiency heating and cooling units.

Last year the VA extended its lease for another 20 years, enabling him to pull the trigger on major renovations. Replacing the antiquated heating and cooling system – with free consulting from Garfield Clean Energy and rebates from the City of Glenwood Springs – was an essential part of the project.

The natural gas furnace, cooling equipment and ductwork were as old as the building, and increasingly temperamental. Tenants have a right to expect reliable HVAC, Fitzhugh says, but keeping the system going required frequent service calls, “and when you’re dealing with 50-year-old equipment obviously there’s a tremendous amount of maintenance cost in this valley.” He estimates he was spending $10,000 a year on repairs.

Looking for professional guidance, Fitzhugh contacted Garfield Clean Energy, which had helped him add insulation to the building a few years earlier. Heidi McCullough, buildings specialist for CLEER (the nonprofit that manages GCE’s programs), performed a site visit and provided a written report. 

Heidi’s most significant recommendation was to install new, more efficient rooftop units to supply both heating and cooling. Insulating the ducts was another high-bang-for-the-buck measure. She also recommended replacing old fluorescent tube lighting with LEDs and smart controls.

Meanwhile the roof needed replacing, so that was done first to accommodate the new units. Fitzhugh also followed Heidi’s advice to install LED lighting in the building’s public spaces.

Heidi says Fitzhugh made pragmatic, cost-effective investments that will greatly improve the building’s energy and financial performance for decades to come. 

“What this project demonstrates is that you don’t have to go huge to save energy,” she says. “You can go medium, and you can do it in phases.”

For his part, Fitzhugh credits Heidi with helping him realize cost savings that made the project pencil out even more profitably. Energy savings were part of the equation, since he pays all the building’s bills, and “even though there’s been a significant increase in [electricity] rates, we’re seeing a decrease in energy bills.”

Another financial incentive: the cooling system upgrade and duct sealing earned him a $7,500 rebate from the Glenwood Springs Sustainability Program (which CLEER also manages), and the lighting replacement was worth another $2,500.

Fitzhugh pronounces himself “very happy” with the outcome. Counting off the benefits on his fingers, he says he’s increased the value of his building, boosted tenant satisfaction, eliminated burdensome maintenance and repair costs, lowered his ongoing energy costs – “and getting ten grand for doing it, that was like icing on the cake. That makes me a fan.”

And that may not be the end of the story. Now that he’s got a new roof, he’s looking into installing solar panels. Having lowered the building’s energy consumption, why not become even more energy independent by generating some of its power onsite?

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