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Open Market Program - Construction Improvements & Community Economic Development

PACE is an innovative way for owners to pay for building upgrades, providing cost-effective solutions for construction improvements and community economic development.

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Open Market Program - Construction Improvements & Community Economic Development

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  1. Open Market Program – Providing cost effective solutions for construction improvements & community economic development Josh Campbell josh@moenergy.org 573-616-1046 www.moenergy.org Josh McCarroll McCarroll@moenergy.org 573-616-1046 www.showmepace.org www.ShowMePace.org

  2. PACE SolutionWhat is PACE? • Property Assessed Clean Energy (PACE) is an innovative way for owners to pay for upgrades to buildings • PACE covers 100% of the improvement costs, up 30% of a buildings value, repaid through a tax assessment on the property for up to 20 years. • PACE is modeled after methods to fund public benefits such as roads, sidewalks, and fire departments. • PACE funding comes from private capital sources • Funding for 2015 expected to exceed $1B www.ShowMePace.org

  3. PACE SolutionWho benefits from PACE? PACE is a win/win for all stakeholders! • Property owners see an opportunity to save money and make their buildings more valuable. • Private market investors like PACE because assessment liens are a proven, strong credit. • Existing mortgage lenderssupport projects that increase the value of their collateral. • Contractorssupport PACE because it opens up new sales opportunities • Local governmentslike PACE because it creates jobs and helps meet conservation goals. • Taxpayerslike PACE because the city takes on no liability and gets a boost in the local economy. www.ShowMePace.org

  4. PACE SolutionBenefit to Owners • Key Benefits of PACE • No Personal Guarantees • No out of pocket costs or equity investment required on PACE funding • Annual savings exceed annual assessment = increases cash flow and the value of the building. • First payment is due 12-24 months after closing • Assessment does not have to be repaid upon sale – it transfers to the next owner www.ShowMePace.org

  5. PACE SolutionExample: Capital Stack for New Construction Value Proposition: • Cheaper capital than equity • Better Return on Project Investments • Less Burden to Raise Equity $10,000,000 New Hotel in your Community More Projects, Jobs and Revenue in your community www.ShowMePace.org

  6. PACE SolutionExample: Renovation to Existing Building Value Proposition: • Invest in buildings without impacting operating capital • Cash Flow Positive in Year 1 • Increase Building Value • No Personal Guarantees • Assessment transfers to next owner $1,000,000 for improvements to Roof, Lighting, Solar, and HVAC More Projects, Jobs and Revenue in your community www.ShowMePace.org

  7. PACE SolutionRole of Municipality www.ShowMePace.org

  8. PACE SolutionBoard of Directors The Show Me PACE board members are individuals with diverse background representing all key sectors impacted by PACE • Economic Development: • Ann Auer – Missouri Growth Association • Dan Mehan – Missouri Chamber of Commerce • Energy Efficiency • Josh Campbell – Missouri Energy Initiative • Utilities • Chuck Caisley – Kansas City Power & Light • Commercial Banking & Mortgage • Jim Murphy – Enterprise Bank & Trust www.ShowMePace.org

  9. PACE SolutionAdvisory Board Show Me Pace will create an Advisory Board with the responsibility for promoting PACE in the state of MO, providing guidance and input to the Board. Participating Municipalities will participate in this Advisory Board and select future board members. Advisory Board members include: Participating Cities Select Funding Partners Select Contractors who utilize PACE Select Building owners who utilize PACE Select Non Profit Energy Efficiency entities www.ShowMePace.org

  10. PACE SolutionAdministrator Missouri Energy Initiative is a nonprofit association of public and private-sector entities, united together with the sole purpose of enhancing and improving energy-related activities in Missouri.

  11. PACE SolutionGuiding Principles • Nonprofit driven low cost administration structure. • Market is open to all building owners, developers and finance providers. • The Clean Energy Board promotes community economic development and sustainability. • There is alignment with the interests of mortgage lenders such that every PACE assessment requires mortgage lender consent and institutional grade underwriting. www.ShowMePace.org

  12. PACE SolutionAdministrator Standard Fee Schedule www.ShowMePace.org

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