6.2. EDSR 03-17-2014 - Laserfiche WebLink

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City of Elk - Request for Action River O. To Item Number Economic Development Authori 6.2 Agenda Section Meeting Date Prepared by General Business March 17, 2014 Brian Beeman,Director of Economic Development Item Description Reviewed by Property Assessed Clean Energy (PACE) Jeremy Barnhart,Deputy Director, CODD Reviewed by Action Requested Recommend,by motion,that the city grants authorization to Sherburne County to enter into a Joint Powers Agreement with the St. Paul Port Authority for the issuance of proposed Bonds by the Port Authority for the PACE of MN Project. Background/Discussion The Property Assessed Clean Energy (PACE) program is an innovative way to finance energy efficiency and renewable energy upgrades to buildings. Interested property owners evaluate measures that achieve energy savings and receive 100% financing, repaid as a property tax assessment, for up to 20 years. PACE overcomes challenges that have hindered adoption of energy efficiency and related projects in buildings. It does this by eliminating up-front costs,providing low-cost,long-term financing, and making it easy for building owners to transfer repayment obligations to a new owner upon sale. Local governments establish a PACE assessment based on the project costs; the property owner evaluates projects that reduce energy costs; the local government provides financing to the property owner for eligible projects and adds an assessment to the tax rolls; and the property owner repays the financing through the assessment for up to 20 years. The State Legislature has set up the PACE program through the Saint Paul Port Authority. The Port Authority serves as the conduit by which the state funds are filtered to counties and cities. Cities can form a joint powers agreement directly with the Port Authority, or cities can partner with the county and the county forms the joint powers agreement with the Port Authority. For economies of scale and simplicity, cities in Sherburne County are encouraged to allow Sherburne County work with the Port Authority. The PACE program saves consumers money on utility bills,it is tax neutral and has no exposure to the general fund, and it promotes local jobs. The program drives spending in local communities through the installation of energy efficient equipment and implementation of renewable energy measures. The county is requesting that all cities, boards,and commissions in Sherburne County authorize the County to enter into a joint powers agreement with the Saint Paul Port Authority to administer the PACE program on behalf of the city. Cities are allowed to enter into the agreement directly with the Port P O w E A E 0 6 Y UREJ