GlobeSt.com: Tell me about your experiences with constructioncosts for a green project.

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Cook: On large construction projects, perhaps surprisingly, ifthe project is green it is not a big concern. A bank would want tosee roughly where [the additional costs] fall in the budget. But weare finding it to be not so much a premium as an item that rollsinto the budget.

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GlobeSt.com: What about for smaller-sized loans?

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Cook: Most of our projects are large, so I can't speak to that.But I have observed more scrutiny in smaller loans. But even thisdoes not appear to be a deal-breaker. A developer may need toprovide more back-up about the payback, the ROI, is myunderstanding.

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GlobeSt.com: Are there any signs or developments in the industryyou can point to as reason to hope financing might ease for thisparticular product?

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Cook: Yes, the Clinton Climate Initiative is working toestablish more creative financing options. What it is doing is veryexciting. (Rolled out last June, the CCI is, among other measures,partnering with ABN AMRO, Citi, Deutsche Bank, JPMorgan Chase andUBS, which have each committed $1 billion to financeenergy-efficient upgrades in 16 participating citieshttp://www.globest.com/news/934_934/more/161886-1.html).

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GlobeSt.com: Do you think the CCI has positively influencedlenders?Cook: It's hard to say. A lot of what the CCI hopes torealize is still very much in the works and the end goal may seemhazy to some. But there is movement and willingness on the part oflenders, from my vantage point in the market anyway, to createsomething that works.

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