Vacaville Council considers PACE financing for Home2 Suites amid community concerns

The Vacaville City Council meeting on January 28, 2025, focused on the proposed financing for a new hotel project and raised significant concerns regarding the PACE (Property Assessed Clean Energy) program. The council discussed a resolution to opt into Solano County's existing PACE program, which would allow the Home 2 Suites hotel project to secure $9 million in financing for energy efficiency improvements.

Don Burris, the director of economic development services, presented the resolution, emphasizing that the financing was crucial for the hotel’s construction. He noted that without council approval, the financing package might not be approved, jeopardizing the project. The hotel, which is set to be the first Hilton in Vacaville, aims to provide 107 pet-friendly extended stay rooms near Kaiser Permanente.

However, the discussion was met with skepticism from some council members and community members regarding the implications of the PACE program, particularly concerning battery storage projects. Concerns were raised about the potential for commercial projects to bypass existing moratoriums on battery storage due to the financing options provided by PACE. A community member highlighted past issues in Los Angeles County, where the PACE program faced lawsuits due to inadequate oversight of private lenders.

John Kenny, the CEO of Clean Fund and PACE administrator for the California Enterprise Development Authority (CETA), clarified that the PACE program is strictly for financing approved projects and does not automatically grant permission for new developments. He reassured the council that the program is designed to support energy efficiency and does not open the door for unregulated battery storage projects.

The meeting also included public comments expressing concerns about the safety of battery storage facilities, particularly in light of recent incidents at similar facilities in California. Residents urged the council to consider the environmental and safety implications of allowing such projects in Vacaville.

In conclusion, the council voted to approve the resolution to opt into the PACE program, allowing the hotel project to move forward. The discussions highlighted the need for careful consideration of the implications of financing mechanisms like PACE, especially in relation to community safety and environmental concerns. The council's decision marks a significant step towards the development of the new hotel while also prompting ongoing dialogue about the future of energy projects in the area.