Back to Calendar
12. B. 12.
Amendment to the PACE Program Report
Jim Dyer, Corporation Counsel, Corporation Counsel
Resolved, that the Calhoun County Board of Commissioners does adopt the attached "Resolution Amending Resolution 80-2015, the Approval of the Calhoun County Property Assessed Clean Energy (PACE) Program," approves the attached Amended PACE Program Report, and authorizes the Calhoun County Administrator/Controller to sign all required amended and project specifc documents necessary to implement the PACE Program and future projects.
County Administration and the Corporation Counsel recomend adoption of the Proposed Resolution. In 2015, Calhoun County elected to participate in the PACE Program process, with approval of Resolution 80-2015. That resolution appointed Levin Energy Partners to act as the County's PACE Administrator, and authorized them to identify potential projects that could benefit by participating in the PACE program, find lenders that would finance such projects subject to the requirements of the PACE program, and administer those projects for the County through closing and beyond.
The changes proposed to the existing PACE Report are intended to update the process of review, approval and documentation of PACE projects, and to enhance the safeguards built into the program to protect Calhoun County as the facilitating govenmental entity for the PACE Program, taking into consideration experience gleaned during the four years since adoption of Calhoun County's original PACE Report. Other changes in the PACE Report are simply intended to reflect Levin Energy Partner's adoption of the name Lean and Green Michigan. ("LAGM")
The Property Assessed Clean Energy (PACE) program was created in Michigan through Act 270 of 2010 for the purpose of promoting renewable energy systems and energy efficient improvements for eligible local businesses. The program allows commercial, industrial, multifamily, non-profit and faith-based property owners throughout Calhoun County to take advantage of long-term, fixed-rate private financing solutions for energy efficiency, water efficiency and renewable energy upgrades. The energy project cost is repaid through a special tax assessment on the property, and so there is no required down payment. The savings generated from such projects exceed the PACE loan repayments, thereby generating immediate positive cash flow for property owners. In that sense, the PACE program is similar to the energy saving projects that the COunty has been in volved in over the years.
Though the PACE statute permits Calhoun County to fund PACE Project loans, the program adminstered by LAGM does not use County funded loans. Rather, LAGM matches project owners with lenders that are willing to use the PACE process, and accept the tax assesed on the project property as a payment guaranty. In this way Calhoun County facilitates this project loan, but no public funds are used to complete the project.
Having established the program in 2015, LAGM is proposing certain changes to the PACE Report the County originally adopted to provide enhanced protections to Calhoun County and reflect changes to the current method of documentating tax assessment funded loans as used by the PACE Program. While the PACE Report adopted in 2015 gives LAGM the exclusive authority to adopt amendments to the PACE Report, they have asked the Calhoun County Board of Commissioners to participate in reviewing and approving these amendments.
Finally, LAGM is proposing these changes to the PACE Report to facilitate a project currently under review to fund a PACE Project for the Battle Creek YMCA. Representatives of LAGM will be present at the meeting to discuss the proposed changes to the PACE Report and the details of the proposed YMCA Project.
The Board could choose not to adopt this Resolution. No changes to the PACE Report would occur, which might jeapordize the proposal currently under consideration, and reduce the change of proceeding with the currently proposed project.
County Administration recommends the Board of Commissioners adopt this Resolution to amend the PACE Report.
what is pace
Signature Copy of Amended Report
Amended Report Showing Changes
AgendaQuick©2005 - 2019 Destiny Software Inc., All Rights Reserved