Barry County committee backs resolution of intent to create countywide PACE program, schedules public hearing

The Committee of the Whole on Feb. 18 recommended that the Barry County Board of Commissioners adopt Resolution 25-07, a resolution of intent to establish a countywide Property Assessed Clean Energy (PACE) financing program and to schedule a public hearing on the proposal.

The recommendation, moved by Commissioner Getty and supported by Commissioner Hatfield, passed on a voice vote; the clerk noted one nay during the roll call.

Why it matters: PACE lets commercial property owners arrange long-term, market-rate loans for energy, water-efficiency, resilience or hazardous-material remediation work and secures repayment through a special assessment on the property tax roll. Proponents said the program brings private capital and an optional financing tool to developers and building owners without requiring county funds; opponents and some commissioners raised questions about lien priority, resale/assumption of assessments and county administrative responsibilities.

Mary Freeman, identified in the meeting as an administrator for a Michigan PACE administrator, summarized how the program is structured under Michigan law (Public Act 270, 2010) and how the administrator and private lenders work with local governments. "The Property Assessed Clean Energy was established in Michigan in 2010 through the... Public Act 270," Freeman said, describing that PACE assessments become a tax-based lien on the parcel and that lenders use that lien as security to offer long-term financing. She said PACE loans typically run up to 25 years, cover eligible improvements such as HVAC, insulation, solar and hazardous-material mitigation, and can be paired with other financing.

Commissioners asked how a PACE assessment would affect mortgage lenders and future buyers. Freeman said mortgage holders must provide written consent to a PACE assessment and that lenders typically accept the arrangement because improvements can increase property value. "The mortgage holder has to provide written consent to the PACE loan to that property," she said. "We've had projects where the mortgage holder ultimately does approve the PACE assessment because it helps improve the property."

Several commissioners pressed practical and legal questions: what happens if an owner stops paying the tax-like assessment; whether the county’s 100% tax fund could be accessed; how frequently projects are likely to appear; whether the county would bear administrative costs or legal liability. Freeman and other presenters said payments go directly to lenders, the county would not handle receipts, the county attorney had reviewed program materials, and that defaults nationally and in Michigan have been rare. "There's no cost except for as much as you're listening to me right now," Freeman told the committee, noting the county's primary responsibility would be the standard tax-delinquency process if a property eventually entered receivership.

Commissioner Hatfield voiced support for adopting the resolution of intent: "I strongly endorse doing this... There is very, very little downside to this for us, and essentially no cost," he said. Several commissioners asked that the county preserve local review of individual projects and that staff notify municipalities and potential local partners.

What the resolution does next: The committee voted to recommend that the full Board adopt Resolution 25-07 and schedule a public hearing (the clerk noted March 11 as a possible hearing date). Establishing a PACE district does not obligate any property owner to use PACE; each PACE-financed project would require its own application, energy audit, lender underwriting and separate local approval. Freeman said administrators prepare the program documents and perform review work on behalf of the local government to limit county administrative burden.

The committee’s vote was a recommendation to the Board of Commissioners; the Board will consider the resolution, set the public hearing, and retain final approval authority.

Ending: Committee members said they will continue to gather information and suggested potential outreach to local cities and banks before the full Board considers the resolution.