Board approves PACE program after public hearing; amendment requires board review of final projects

The Barry County Board of Commissioners voted to establish a Property Assessed Clean Energy (PACE) program, adopting Resolution 25‑09 after a public hearing and a friendly amendment that requires final projects to return to the board for approval.

Why it matters: PACE programs let property owners finance energy‑efficiency and renewable‑energy improvements that are repaid via a special assessment. Supporters told commissioners PACE is a tool to encourage development and help finance projects that otherwise may be harder to build; opponents raised concerns about taxpayer exposure, lender conflicts and the need for limits and clearer language.

Public comment and staff clarifications Several members of the public urged tabling the request for more review. One speaker said the packet “places an unwanted burden on government, which is a burden on taxpayers,” questioned whether county staff time was being diverted to the EDA, and asked whether special assessments should be paid at sale and whether legal counsel had reviewed the documents. A different commenter asked for utility‑cost examples and said she read that lenders or contractors sometimes receive referral fees, which could be a conflict of interest.

Nicole Ike, speaking for the Barry County Chamber and EDA, addressed specific concerns and corrections in the contract packet. "Specifically, the section that you referenced there is actually a typo…none of those things are covered," Ike said, adding that projects must demonstrate cost savings under program rules and that the county can set maximum amounts. "It's a very structured program and very limited," she said.

Greg Taylor, of Copper Rock Construction, urged approval, saying higher construction costs and financing challenges make additional tools useful for developers. "Every possible tool that can be added to the toolbox for developers in Barry County, I think would be very helpful," Taylor said.

Mary (PACE representative) answered procedural questions: the state statute enabling PACE was passed in 2010 and the business model began operating in 2012. She said applications require an energy audit and an appraisal of the post‑project ("as completed") value to determine borrower limits. She told commissioners the statute requires primary lender consent: "There's a document that the primary lender has to sign… it's a requirement in the state statute that the lender consent to a PACE assessment."

Commissioner questions and amendment Commissioners pressed on oversight, dollar limits and whether each project would come back to the board. Mary said jurisdictions can set approval processes and that counties commonly designate an authorized official; commissioners said they wanted final project approvals to come before the full board. The board accepted a friendly amendment that “all final projects will come before the board of commissioners for final approval.”

Board action Commissioner Campbell moved to adopt Resolution 25‑09; Commissioner Getty supported the motion as amended. A roll call recorded ayes by the board: Tunison, Bassett, Carlton, Campbell, Getty, Hatfield, Smelker and Jackson. The chair declared the motion approved.

Clarifying details recorded at the hearing - Michigan statute enabling local PACE programs: passed 2010; PACE business activity in the state since 2012 (as stated by the PACE representative). - Lender consent: state statute requires primary lender consent to a PACE assessment. - Typical financing limit referenced: up to 25% of the "as completed" property value may be used in determining eligible PACE amounts; final approval and any county dollar caps are discretionary. - Process sequencing: energy audit and appraisal are completed prior to PACE funds disbursal; projects may start with other funds but PACE disbursal happens after required steps.

Discussion vs. decision: the resolution to establish a PACE district is a formal county decision. The board also amended program governance to require that each final project be presented to the board before PACE funds are approved for that project.

Next steps and materials: county staff and the PACE provider will incorporate the requested language into the final resolution text and provide clean copies. County counsel will finalize resolution wording before signatures.