Granite County commissioners approve joining CPACE program; schedule first reading of resolution

Granite County commissioners voted 2–1 to approve moving forward with a resolution to opt the county into Montana—s commercial property assessed capital enhancements (CPACE) program, a state-designated financing option for privately owned commercial, industrial and agricultural properties.

Carolyn Jones, an employee of the Montana Facility Finance Authority, summarized CPACE during a public hearing and explained the financing mechanics. “CPACE is basically a financing system that is basically the security is an assessment lien on the property,” Jones said, adding that the county—s role is to accept the assessment mechanism while private lenders would provide the capital.

Why it matters: CPACE lets eligible building owners spread the cost of permanent energy-efficiency, water-conservation or renewable-energy improvements over the useful life of the upgrades and repay them as a line item on property tax bills. Proponents say the structure can make longer-term projects — solar panels, major HVAC or water systems, elevator upgrades — financially feasible by matching repayment terms to equipment life.

Under the program as described at the hearing, projects require an energy audit and an independent third-party review to confirm predicted savings. Jones said payments would appear as a special assessment on property tax bills and be due on the county—s regular collection schedule — typically twice a year in November and May. She also stressed that projects require consent from a property—s senior lender before proceeding.

Commissioner questions and public comment focused on scope and eligibility. Commissioner Paul Cholaski asked whether agricultural properties and ranches could participate; Jones said larger farms and ranches that are taxed and treated as commercial or agricultural property can qualify, but single-family residences and properties taxed as residential would not. Public commenter Elena Gagliano said she did not fully understand the program and asked that material be made available; Jones and county staff confirmed the county had posted prior explanatory materials and a PowerPoint on the county website.

A developer and potential buyer of the Stevens Hotel in Phillipsburg is known to be exploring CPACE as part of the financing stack, Jones said, but the project depends on the county formally opting into the program.

The commissioners— vote to move forward with the resolution was 2 in favor, 1 opposed; the transcript records the tally but does not attach full roll-call names for every vote. The board scheduled a first reading of the formal resolution for a subsequent meeting and indicated administrative details (for example, whether the county will add an administrative fee) can be set after further review.

The board and presenters emphasized the program is voluntary for property owners; only owners who apply and meet lender underwriting and program requirements would be assessed. Jones said CPACE is administered statewide under enabling legislation enacted in 2021 and that the Montana Facility Finance Authority is the program administrator.

What comes next: county staff will post the resolution materials for public review and bring the formal first-reading language back to the board at the next meeting. The board also asked staff to collect any additional written proxies or documents related to commissioners— attendance for the record.

Ending: County staff and Jones said they would be available to answer follow-up questions and that informational materials would remain online. The county will return to the item for a formal reading and potential final action at its next regular meeting.