Winter Garden authorizes commercial PACE program

Owners of commercial properties within the city of Winter Garden will have the option going forward to take advantage of the Property Assessed Clean Energy program.

Winter Garden city leaders voted unanimously during the April 23 City Commission meeting to approve a resolution that would allow the commercial PACE program within city limits. 

The PACE model, according to the U.S. Department of Energy’s Office of Energy Efficiency & Renewable Energy, is a “mechanism for financing energy efficiency and renewable-energy improvements on private property.”

Essentially, PACE programs allow property owners to finance the up-front cost of energy and other eligible efficiency improvements on a property. Owners then pay the costs back over time through a voluntary assessment.

A PACE assessment is a debt of property, the U.S. Department of Energy’s Office states, meaning the debt is tied to the property rather than the property owner. The repayment obligation can transfer with property ownership if the buyer agrees to assume the obligation and allow it to remain on property.

More than 35 states and the District of Columbia have commercial PACE-enabling legislation, the department states, and more than $800 million in projects have been financed to date.

“Florida Statute 163.08 authorizes PACE financing to be repaid as a non-ad valorem special assessment on the property’s regular tax bill, which is processed the same way as other local public benefit assessments such as neighborhood improvement or special taxing districts,” according to city documents. 

The U.S. Department of Energy states advantages of PACE programs include the allowing secure financing of projects over a longer term; spreading repayment over many years and rarely requiring an upfront payment; can lead to lower interest rates due to high security of loan repayments attached to the property tax bill; and allowing municipalities to encourage energy efficiency and renewable energy without putting general funds at risk.

“PACE programming throughout the sate of Florida allows people to borrow money for items that are to create energy efficiency in buildings,” said City Manager Mike Bollhoefer. “What we’re recommending tonight is to do this program for just commercial property. In essence what this does is … it guarantees the loans being paid back, and by doing this the builders are able to get a lower interest rate than they borrowed the money to do their buildings to include items like HVAC systems, windows, shutters — all sorts of equipment in building falls under this. There is no risk to the city of Winter Garden.”

The resolution only includes authorization of the PACE program for commercial properties. The city is not authorizing properties with single-family or multi-family residential homes to participate in the program. 

NEW SWAT EQUIPMENT

Commissioners also approved a recommendation to distribute roughly $11,000 of awarded Edward Byrne Memorial Justice Assistant Grant Local Solicitation funds to buy entry tools for the Winter Garden Police Department’s SWAT team.

The grant was awarded for Fiscal Year 2019. The purchase of these specific entry tools will enhance the SWAT team’s capabilities to access areas during high-risk situations, according to city staff.

Equipment to be purchased includes a Stihl electric cutoff machine with battery and charger, hydraulic engineered tools for breaching — a door pusher, jamb spreader, bolt cutter, and low-profile spreader for window sills, gates and trunk lids — a hydraulic backpack carrying case for pump and engineered tools, and a 17-foot tactical ladder.