PROPERTY ASSESSMENT CLEAN ENERGY (PACE) WILL HELP DRIVE SOUTHFIELD ECONOMIC DEVELOPMENT
SOUTHFIELD TAKES THE LEAD
On June 25, 2012, the City of Southfield became the first jurisdiction to join Lean & Green Michigan™, one of America's first statewide Property Assessed Clean Energy (PACE) initiatives – and Michigan's marketplace for energy efficiency and renewable energy financing.
As the premier business address in Michigan, the City of Southfield continues to create new and better ways to provide opportunities for our community. The partnership with Lean & Green Michigan to establish a virtual energy office is a positive step for Southfield. The Lean & Green Michigan™ PACE plan will bring new economic development tools to entice reinvestment and redevelopment in our city while helping to green the community.
SOUTHFIELD CREATED A PACE DISTRICT TO ENTICE REINVESTMENT:
- All funding is provided by private sources
- Help property owners save money and make buildings more energy efficient
- Attract tenants as buildings are more comfortable, less expensive, and greener
- Raise tax base steadily over time
- No risk to the city
- Each $1M represents roughly 10 person years of work in Southfield
- PACE financing will increase value of each property involved, raising property tax revenue over time
- By saving companies money, PACE improves the business climate
- By helping companies go green, city gains potent economic development tool
- All of this makes Southfield a more attractive place to do business
Overview of PACE
Public Act 270 of 2010 (“Act 270”) authorizes local units of government to adopt Property Assessed Clean Energy (“PACE”) programs to promote the installation of energy efficiency improvements and renewable energy systems by owners of commercial or industrial property within a district designated by the local government. Act 270 provides for repayment to local governments through a voluntary property assessment. The property assessment remains with the property and has the same priority as other property tax and assessment liens in the event of foreclosure.
HOW PACE WORKS
Lean & Green Michigan™ enables commercial, industrial and multi-family property owners in Southfield to take on a voluntary special assessment with the city in order to achieve favorable terms and longer amortizations in financing energy efficiency, water efficiency and renewable energy projects. Property owners can eliminate waste and save money while greening the community and creating a more comfortable environment for their employees or tenants. Financing is available for virtually all types of commercial and industrial property for all private for-profit and private non-profit property owners.
Lean & Green Michigan™ is a public-private partnership that uses Michigan's new PACE statue to develop 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.
Property owners, contractors and financial institutions get a free market in which to arrange energy deals that pencil out for all concerned, using the PACE financing mechanism to lower the cost of capital and create positive cash flow from day one.
Find out more by visiting www.leanandgreenmi.com today!