Macomb County Establishes Michigan's Largest PACE Financing District
MT. CLEMENS (WWJ) -- The Macomb County Board of Commissioners passed a groundbreaking resolution creating the largest Property Assessed Clean Energy District in Michigan. Last week's unanimous vote was the culmination of a collaborative process between the Commission, the Macomb County Executive's Office, Treasurer's Office and Levin Energy Partners, LLC, which runs Lean & Green Michigan, administering the PACE program for participating local governments.
PACE has the potential to transform clean energy building finance because it eliminates the need to provide up front capital for energy efficiency and renewable energy projects. PACE allows commercial, industrial, multi-family and private nonprofit property owners to finance 100 percent of such projects over 10 to 20 years and repay them through a special tax assessment.
Business owners typically pay nothing down, and the energy savings involved must generate more money than their payments, meaning the entire experience is cash flow positive. Capital is provided by private lenders at competitive market interest rates.
"Lean & Green Michigan applauds the leaders of Macomb County for their vision in passing the PACE resolution and for their commitment to helping Macomb businesses become more energy efficient and realize significant cash savings by implementing energy efficiency measures through PACE, " said Andy Levin, President of Lean & Green Michigan.
PACE financing is an economic development tool that requires no taxpayer funding. Facility improvements may include energy and water efficiency improvements, renewable energy improvements, and new manufacturing equipment that saves energy or water.
"We've created the largest PACE district in the State of Michigan covering all of Macomb County to provide our businesses a strong tool to help them make energy efficiency investments in their properties and gain positive cash flow to put back in to operations," said Mark A. Hackel, Macomb County executive.
Macomb County Businesses will be able to apply for PACE financing through the Lean & Green Michigan website, www.leanandgreenmi.com. The program will work with a variety of project scopes and sizes.
Macomb County board chairman David Flynn called the move "a commitment toward facilitating growth and re-investment for Macomb County's existing business community."
Once a PACE loan is approved, payments on the loan become part of the tax assessment for the property and stay with the property if sold.
"We've been involved in reviewing the PACE Resolution for Macomb County over the past several months and feel that having the financing be part of a special assessment is a solid and seamless way to facilitate these types of loans for Macomb County businesses, " said Ted Wahby, Macomb County treasurer.
PACE districts are spreading quickly in Michigan. The cities of Southfield and Rochester Hills and Ingham County have already created districts with Lean & Green Michigan, and Saginaw County may finish the process of joining as early as next week. Many other local governments throughout the state are close behind.
"PACE financing gives commercial and industrial property owners an important tool to use to move forward with energy efficiency projects that will save them money and increase the value of their property," said Jennifer Mefford, dilecorical Contractors Association of therhood of Electrical Workers Local 58. "Brotherhood of Electrical Workers Local 58. "Brotherhood of Electrical Workers Local 58. "PACE projects will provide business opportunities for a variety of construction contractors and their skilled workforce."
For more information about PACE Financing and Lean & Green Michigan visit www.leanandgreenmi.com.
Lean & Green Michigan helps commercial, industrial and multi-family property owners finance energy projects, eliminate waste and save money through innovative financing solutions that make energy projects profitable for all parties -- property owners, contractors and financial institutions and even municipalities which experience a growing tax base.
Lean & Green Michigan is a public-private partnership that uses Michigan's new PACE statute but takes a market-based approach to energy finance and economic development. In essence, we leverage the PACE statute to maximum effect by bringing private capital to bear to solve companies' energy problems, to create work for contractors and jobs for workers, and to green our communities.
