Minnesota C-PACE Financing
C-PACE financing is transforming communities by enabling commercial property owners to make their businesses more efficient and resilient. The unique finance structure allows for 100% financing (including hard and soft costs) with payments rolled into property taxes through a special assessment. Payments are lower than a typical loan with up to 20-year financing at a fixed interest rate. More importantly, these investments tend to be cash positive with utility savings exceeding payment obligations.
How MinnPACE Works
Through state legislation, the Saint Paul Port Authority is designated as the C-PACE program administrator with a statewide reach. Marketed as MinnPACE, the Port Authority works directly with Minnesota cities and counties to establish joint powers agreements. These agreements give MinnPACE the authority to place C-PACE assessments on properties where the owner has consented to the agreement.
The actual funds borrowed come from one of the following sources:
- TrillionBTU Loan Program. This is a Saint Paul Port Authority loan program that is available statewide.
- Local Credit Unions. Several credit unions across the state fund C-PACE transactions that are then administered through MinnPACE.
- National Funding Sources. There are numerous organizations that fund multi-million dollar C-PACE loans, including new construction projects.
To learn more about PACE financing nationwide, go to pacenation.org.
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Program Benefits
- Commercial property owners are able to invest in energy efficiency projects and solar or renewable energy upgrades with no upfront costs.
- Utility savings exceed payment obligations, making investments cash positive for commercial property owners and tenants.
- Payments are rolled into a special tax assessment made payable twice per year as part of the building owner’s property taxes; the first payment is due in May of the following year.
- The program is tax neutral with no financial exposure to cities or counties.
- Energy improving investments promote local jobs.