Minneapolis, MN (PRWEB) June 25, 2014
Minnesota’s statewide commercial Property Assessed Clean Energy (PACE) financing program officially launched with the unanimous council approval of three PACE-funded energy efficiency and solar energy projects in the City of Minneapolis.
“PACE financing is a great tool that helps building owners make smart investments in their properties and cut their utility bills through energy efficiency and solar technologies,” said Eutectics CEO Jeremy Kalin, who helped build the PACE MN platform and facilitated its first PACE projects.
The City of Minneapolis has joined the list of communities across the country with approved Property Assessed Clean Energy (PACE) financing for solar and energy efficiency projects. The first three approved PACE project totaled $685,495 in energy improvements for a life sciences building, a neighborhood grocery store, and an industrial supplier and remanufacturer.
“PACE is not a subsidy, it’s simply good policy,” said Minneapolis Councilmember and Community Development Committee Chair Lisa Goodman, in urging her colleagues to support the first three PACE projects in the City.
Excelen – Center for Bone & Joint Research and Education in downtown Minneapolis invested in new mechanical equipment, upgrades and building controls. As a result of PACE financing, Excelen was able to double the total scope of energy efficiency and deferred maintenance projects in their building.
“PACE is an incredible tool for companies who want to complete energy-related projects – with 25% savings already showing up on our electric bill,” said Tim Mowbray, Excelen’s executive director.
Crankshaft Supply installed a 40-kilowatt solar system on the roof of their remanufacturing facility in North Minneapolis, with the help of Cedar Creek Energy.
“Cedar Creek’s goal is to help businesses become energy efficiency and go solar in a way that makes the most economic sense for that business,” stated Rob Appelhof, President of Cedar Creek Energy. “As precision manufacturers, Crankshaft already had a clean and efficient operation, so going solar was their natural next step – and without PACE it would not have happened.”
Longfellow Market, a family-owned grocery store in the southeast residential neighborhood of Minneapolis, used PACE financing to install new lighting systems and new energy-efficient mechanical systems.
About Property Assessed Clean Energy (PACE)
Property Assessed Clean Energy (PACE) financing allows property owners to finance energy-related improvements to their buildings with affordable, long-term capital. Minnesota state law allows local units of government to enter into joint powers agreements to create PACE programs. Under this innovative arrangement, commercial, industrial, nonprofit and multihousing property owners can take on voluntary special assessments to finance energy efficiency, renewable energy or electric vehicle infrastructure improvements to their properties. PACE allows companies the opportunity to maintain a positive cash flow while investing in energy upgrades at no cost to taxpayers.
PACE of Minnesota is a statewide PACE program administered by the St. Paul Port Authority. All Minnesota cities, counties and townships can join PACE of Minnesota by adopting a Joint Powers Agreement, after which PACE financing is available to all businesses, multifamily and non-profit property owners to fund energy efficiency, on-site renewable energy and electric vehicle infrastructure improvements to their property.
PACE of Minnesota financing is provided by the sale of revenue bonds to third-party capital providers, resulting in a public-private partnership that relies almost entirely on private capital. In 2012, Bremer Bank became the first community bank in the United States to fund a PACE project; Bremer Bank has since agreed to provide up to $10 million in PACE financing through PACE of Minnesota. Within programmatic limitations, up to 100% of a project cost can be financed via PACE.
More information about PACE financing in Minnesota can be found at MNPACE.org.
Eutectics is a mission-oriented, for-profit company based in Minneapolis that connects qualified clean energy projects with committed capital. Eutectics’ Main Street Model for clean energy financing enables the firm to identify and source the best financing options for each individual project and building owner, including PACE financing. By working with multiple financing tools, Eutectics keeps fees low and focuses on serving the needs of building owners to invest in their properties and improve both the bottom line and the environment.
PACENow is a non-profit foundation funded advocate for Property Assessed Clean Energy (PACE) financing. PACENow’s mission is to promote improved energy efficiency in buildings and use of PACE. Our strategy is to be a trusted source for information and resources to a growing coalition of PACE stakeholders that includes local governments, businesses, industry service providers, labor and trade organizations, environmental groups and private individuals nationwide.
PACENow is supporting and contributing to the efforts of the many groups and organizations that are making PACE an efficient and effective tool for implementing energy efficiency and renewable energy upgrades to buildings. PACENow is tracking and reporting industry’s progress through PACE Market Dashboard.