7.1 HRSR 04-07-2014 - Laserfiche WebLink

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thi. 4,...„....._E" Request for Action ver To Item Number Housing and Redevelopment Authority 7.1 Agenda Section Meeting Date Prepared by General Business April 7,2014 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 Council grant authorization to Sherburne County to enter into a Joint Powers Agreement with the St. Paul Port Authority (SPPA) 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 financial challenges that have hindered adoption of energy efficiency and related projects in buildings. It does this by providing low-cost,long-term financing for upfront costs,and making it easy for building owners to transfer repayment obligations to a new owner upon sale. Cities or Counties 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.While cities can form a joint powers agreement directly with the Port Authority, for economies of scale and simplicity, 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 Authority to administer the PACE program on behalf of the city. The PACE program saves consumers money on utility bills,it promotes local jobs,and has no exposure to the general fund. The program drives reinvestment and spending in local communities through the installation of energy efficient equipment and implementation of renewable energy measures. If the County is the partner in the Joint Powers Agreement with the SPPA, the City wouldn't be approving the application or the special assessment. The applicant applies directly to SPPA.The SPPA reviews the application and submits the request to the County to add a special assessment to the tax roll. P O I V E H E I 0 ! NATURE