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The project
Planet Traveller will be a 24-room hostel/hotel for young people. Extensive renovations are under way to turn the century-old structure in downtown Toronto into a cutting-edge "green" building by using technology that reduces the usual greenhouse gas emissions by about 80 per cent. Operating costs for energy — laundry, hot water, heating and cooling — are also expected to be about 70 to 80 per cent less compared to a regular hotel.
A key component, about 75 per cent, of that achievable reduction will come from Geothermal technology, to be used for heating and air conditioning. Geothermal essentially uses the ground beneath the building as a heat source. A heat pump does all the work, like a refrigerator in reverse. Other planned "green" technologies include LED lighting, good insulation and ventilation, solar thermal on the roof and a powerpipe (heat exhanger — it captures the heat in hot water as it comes down the shower drains).
Videos
On May 22nd, the Globe's business incubator panel gathered to discuss the pros and cons of Planet Traveller
For project manager and venture capitalist Tom Rand, the hotel's future rests largely in the hands of City Hall
Consultants - worth the investment?
If the city approves his geothermal plans, the hotel could serve as role model for other developments looking to go green
Extensive renovations are underway to turn this century-old building in downtown Toronto into a cutting-edge 'green' hotel
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The partners: Tom Rand and Anthony Aarts
Tom Rand: Project Manager for Planet Traveller
Tom Rand is a high-tech software entrepreneur and engineer. He is the director of VCi Green Funds, a private venture fund Rand started in 2005, dedicated to providing angel and venture capital to early stage companies developing technologies that reduce energy emissions. One of his first projects is Planet Traveler, Rand's way of becoming engaged in the war against climate change. He describes it as both an investment and a learning experience. As a businessman and an environmentalist, Rand wants to blaze a trail for the greater adoption of Geothermal technology by the public and developers. Rand has put his money where his mouth is, investing in Geothermal through VCi Green Funds. He is also a member of its Board of Directors. Rand says he's driven by a desire to understand the real estate sector by getting his hands dirty and to learn more about how energy use can be reduced in the operation of a building.
Anthony Aarts: General Contractor for Planet Traveller
Anthony Aarts is a Toronto real estate developer, mainly around the Kensington Market area, who is also working on his MBA. Aarts is a 50/50 partner with Tom Rand for the building and renovation, however, Aarts owns 100 per cent of the planned business. Once the project is complete, Aarts will lease the building from a holding company that he shares with Rand and be the one running Planet Traveller as a hostel/hotel. Currently, Aarts deals with the day-to-day problems in construction such as juggling timetables with contractors, on-site supervision and keeping the project on budget.
Investment
The total projected investment is approximately $2.4- to $3-million. So far, the amount invested is $1.5-million and renovations have just begun (the building cost over $1-million). Rand expects his half of the investment to reach $1.5-million.
The additional cost of making the building "green" is only $150,000 to $200,000 — about 10 to 20 per cent of the total budget. The cost of the Geothermal is about $60,000.
The building
The 7,500 sq. ft. building, located on College Street in Toronto, close to Kensington Market, was abandoned 10 years ago. The roof had collapsed and there was extensive fire and water damage throughout, so the first six months was spent cleaning it out. Since this is a retrofit, they are limited in what they can do compared to a new building.
When completed, there will be 24 rooms in total, a large recreation area in the basement and a café, garden and deck on the rooftop. Aarts says that they've replaced the whole rear of the building. The front is a really strong structure that was over-engineered to originally house a printing press. Every floor has 12 foot ceilings giving all the rooms a spacious feel.
The goal is to have the roof on by the end of May so that there is a safe, dry place to work. Aarts says it's difficult to name a long-term date for completion. The project still needs city approval to go ahead with the Geothermal.
Biggest challenge: City approval for the Geothermal holes
Currently, the project is waiting on city approval to dig the 15,300-foot holes needed to install the Geothermal pipes. The biggest problem is that the building takes up the whole footprint of the property so that there's no land to bury the pipes. Rand and Aarts have applied to dig the holes in the city-owned laneway next to the building. Most of the pipes would be angled in and buried under the building. They need to block off the laneway for about two weeks while the holes are dug, the pipes installed, the dirt hauled away and the laneway repaved. Rand says that there is a precedent as natural gas pipes are already buried there. If the city enables the gas companies to provide gas, Rand says, then why not him? He sees himself as his own utility and wants the same right to access the ground beneath the laneway.
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