20 - Intent to Establish the City of Paris Texas Property Assessed Clean Energy (PACE) Program

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REPORT FOR PROPOSED PACE PROGRAM REPORT REQUIRED BY TEXAS LOCAL GOVERNMENT CODE SECTION 399.009 FOR PROPOSED THE CITY OF PARIS, TX PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM This Report is adopted by the City Council for the City of Paris, Texas ("City") Property Assessed Clean Energy (PACE) Program (the "PACE Program") in accordance with the requirements of the Property Assessed Clean Energy Act (the "PACE Act") as set forth in Texas Local Government Code Chapter 399. City and its constituents benefit when existing buildings are modified and new buildings on developed lots are built with new technology and equipment that increases energy efficiency and reduces water consumption. As described in this Report, City is establishing the commercial PACE Program to encourage private sector investment in energy efficiency and water conservation. The PACE Program will be offered to property owners on a strictly voluntary basis and will minimize the use of any public funds or resources. Authorized under the PACE Act enacted in 2013, the PACE Program is an innovative financing program that enables private sector owners of privately owned commercial, industrial, and multifamily residential properties with five or more dwelling units to obtain low-cost, long-term loans to pay for water conservation, energy -efficiency improvements, and renewable energy retrofits. PACE loans provide up to 100% financing of all project costs, with little or no up -front out-of-pocket cost to the owner. The 2015 legislative session streamlined the process. Loans made under the PACE Program will be secured by assessments on the property that are voluntarily imposed by the owner. Assessments may be amortized over the projected life of the improvements. The annual utility cost savings derived from improvements financed with PACE loans are intended to exceed the amount of the annual assessment payments. When successful, these improvements are able to generate positive cash flow upon installation because the debt service will be less than the savings. PACE assessments are tied to the property and follow title from one owner to the next. Each owner is responsible only for payment of the assessments accruing during its period of ownership. When the property is sold, the payment obligation for the remaining balance of the assessment is transferred automatically to the next owner. As a result, the program will help property owners overcome market barriers which often discourage investment in energy efficiency and water conservation improvements. City intends to begin its PACE Program with a pilot project in connection with the development of the Paris Lakes Medical Center (the "Pilot Project"). The Pilot Project is expected to include a new five -story, 114 -bed hospital containing approximately 198,000 square feet of space featuring (a) a surgical suite with six operating rooms supported by an 18 -bed prep and post - anesthesia care unit, (b) 80 medical/surgical patient beds, (c) a cardiac catheterization lab suite with two catheterization labs supported by 18 preparation and recovery rooms, and 14 critical cardiac, coronary, or cardiovascular unit beds, (d) an eight -bed critical care unit, and (e) an imaging