MassDevelopment presents PACE program to boost clean energy investments in Massachusetts

The Town of Northborough held a Joint Economic Development Meeting on February 28, 2025, where key discussions centered around the impact of Tax Increment Financing (TIF) agreements and the introduction of the Property Assessed Clean Energy (PACE) program.

One of the most significant topics was the evaluation of a TIF agreement that had not yielded the expected job creation or occupancy for a newly constructed building. Despite the initial optimism surrounding the project, the building remained vacant, prompting the town to terminate the agreement. However, the termination was not without benefits; the city saw a substantial increase in property tax revenue from the building's valuation, which rose from $14,000 to an anticipated $668,215 annually. This situation highlighted the complexities of TIF agreements, where even unsuccessful projects can lead to increased tax revenue for the community.

The meeting also introduced the PACE program, aimed at facilitating clean energy improvements for property owners. This financing method allows property owners to make energy-efficient upgrades, such as installing solar panels or improving insulation, with the costs repaid through property tax bills. The program is designed to encourage sustainable development without placing financial burdens on the municipality, as it utilizes third-party financing.

Participants discussed the potential for PACE to attract outside investment and enhance the community's appeal to businesses focused on sustainability. The program requires only a vote from the select board to opt in, making it a straightforward addition to Northborough's economic development toolkit.

Overall, the meeting underscored the importance of adaptive economic strategies in Northborough, balancing the need for job creation with sustainable development initiatives. As the town considers these programs, the focus remains on fostering a vibrant local economy while addressing environmental concerns.