10 - Expansion of Property Assessed Clean Energy (PACE) Program Presentation & Discussion

Home Browse Search

Item No. 10 TO: City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: PRESENTATION AND DISCUSSION OF EXPANDING PROPERTY ASSESSED CLEAN ENERGY (PACE) PROGRAM TO PROJECTS THROUGHOUT THE CITY DATE: July 12, 2021 BACKGROUND: You will recall that in February and March of this year, Council adopted a PACE program. While the jurisdiction of the program was all properties inside the city limits, the program was set up for a single pilot project involving Paris Lakes. We now have a request from Harrison Walker and Harper (HWH) to expand the program to projects throughout the city so that HWH can take advantage of the program for energy efficient upgrades to various of its properties. As a refresher, and as background for Council Member Pankaj, Chapter 399 of the Texas Local Government Code (LGC) codifies the Property Assessed Clean Energy (PACE) Act. PACE financing is an alternative to traditional financing for energy efficiency, water conservation and renewable energy projects for privately -owned commercial and industrial properties. PACE makes it possible for commercial, industrial, and certain residential property owners: ■ to obtain low-cost, long-term financing ➢ to improve energy efficiency, generate renewable energy, and achieve other vital public benefits ➢ to increase the value of their property through improvements to lighting, roofing, HVAC systems, boilers and chillers, insulation, glazed windows, hot water heating systems, renewable energy systems, and more ■ to finance these projects in away that is cash-flow positive —payback terms of up to 30 years can result in yearly savings from energy improvements greater than annual PACE payments