The Garland City Council meeting on October 6, 2025, focused on the Property Assessed Clean Energy (PACE) program, a financing initiative aimed at promoting energy efficiency and renewable energy upgrades in commercial and multifamily buildings. This meeting followed a previous resolution adopted on September 16, which expressed the council's intent to explore the program further.
The PACE program, established in Texas in 2013, allows local governments to facilitate low-interest financing from private lenders for property owners seeking to make energy-efficient improvements. Key features of the program include a financing structure where the cost of improvements is aligned with the expected utility savings, ensuring that property owners do not face financial burdens. The loans are secured by property assessments, allowing repayment over the useful life of the improvements, which can range from 20 to 50 years.
During the meeting, city officials highlighted the benefits of the PACE program, including increased access to capital for property owners, enhanced property values, and improved energy and water conservation. The program is designed to modernize aging facilities, particularly in commercial and multifamily sectors, without utilizing public funds, thereby minimizing financial risk to the city.
The council discussed the procedural steps necessary for implementing the program, including obtaining third-party reviews of energy consumption and ensuring that property owners secure consent from existing lien holders before proceeding with financing. The meeting also addressed potential concerns from mortgage holders regarding their position in the event of a PACE loan, with discussions suggesting that improved property viability could ultimately benefit lenders.
Next steps involve finalizing a professional services agreement with an authorized representative, such as Lone Star PACE, to facilitate the program's rollout. Following a public hearing, the council is expected to vote on the resolution to officially adopt the PACE program, marking a significant step in Garland's economic development strategy.