DATE: February 23, 2017
TO: Members of the Economic Development Authority
FROM: Chris Heineman, Community Planning & Development Director
Nate Carlson, Economic Development Coordinator
Title
Consideration of Property Assessed Clean Energy (PACE) Program
Body
SUMMARY AND ACTION REQUESTED:
Staff recommends EDA adoption of a motion to recommend City Council approval of a Joint Powers Agreement with the St. Paul Port Authority implementing the Property Assessed Clean Energy (PACE) Program in the City of Northfield.
BACKGROUND:
The PACE program implementation of this type of program would not be in lieu of any other type of financing a business could use, but would be an additional tool available.
In 2010, the Minnesota Legislature authorized cities to establish voluntary contractual assessment programs to fund energy and water conservation and renewable energy projects that improve local energy efficiency, lower business costs, and promote installation of such systems. The legislation authorized voluntary assessments to local businesses to finance the costs of these energy improvements.
As communities began to implement this program, it became known as the Property Assessed Clean Energy (PACE) program. The purpose of the PACE program is to provide financing for energy-saving improvement projects to commercial properties. When it was initially established, financing for this program had to be arranged through a third party with all costs borne by the business. This proved to be very costly and very few businesses were able to take advantage of this program.
In 2014, the St. Paul Port Authority issued bonds to provide a third party funding source for communities throughout Minnesota. MinnPACE was established as a division of the Saint Paul Port Authority and is now the largest provider of PACE financing in the State of Minnesota. Minnesota PACE financing is available statewide to commercial building owners interested in renewable energy and ener...
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