Finance & Cost

The project was financed via a partnership among the City of Muskegon, Grand Valley State University (GVSU), and the U.S. Department of Defense.

The struggling City of Muskegon was searching for means to attract new industry. A Muskegon economic development group decided to get their entire development of a prime piece of real estate along Lake Michigan appointed as a State of Michigan SmartZone. The innovative SmartZone program entices new business to move into blighted or developing regions. Through the Seidman School of Business, GVSU planned to develop an area of study based on “environmental issues.” GVSU intended to build the first integrated “building as a power plant.”

The City of Muskegon saw environmental products as a great opportunity for local business and therefore brought GVSU to the SmartZone by underwriting the cost of the building. GVSU financed the additional costs associated with making the building LEED certifiable. The Department of Defense issued a grant that helped pay for the fuel cell and system engineering.

Financing Mechanisms

• Procurement process: Design-build

Cost Data

Cost data in U.S. dollars as of date of completion.

• Total project cost (land excluded): $5,900,000

MAREC employs several green materials and systems that reduce operating costs by producing or saving energy. Daylighting and sensor-controlled lights, for example, reduce energy costs by ensuring that electric lighting is used only when necessary.

Compared to a traditional facility, MAREC is expected to save GVSU $156,000 in energy and $365,000 in other lifecycle costs over 15 years. The building's underfloor HVAC, electrical, and voice and data systems alone save upwards of 15-20% in energy costs, compared to conventional design.

The photovoltaic system saves money by reducing the building's need for peak energy from the local utility. The building also uses a fuel cell for electrochemical power generation. As long as fuel and air are supplied, the fuel cell produces electricity and heat with neither the combustion nor the pollutants associated with burning fuel.