Article by: SUSAN FEYDER , Star Tribune Updated: September 14, 2013 – 2:00 PM
The city of Eagan has entered into a partnership with the St. Paul Port Authority to offer a new form of financing to business property owners for energy efficiency and renewable energy improvements.
The program offers Property Assessed Clean Energy (PACE) loans, a financing option that’s an alternative to a traditional bank loan. The PACE loans create a voluntary special assessment, typically up to 15 years, that is added to the business owner’s property tax bill. The loans have a fixed interest rate that is typically below the market rate.
The port authority issues and sells bonds purchased by private investors to fund the energy efficient improvements. It also acts on the city’s behalf to review, underwrite and manage the improvement loans. The city collects the loan repayments via the special property tax assessments.
The Eagan City Council approved the program Aug. 6 on the recommendation of the city’s Energy & Environment Advisory Commission. Read more.