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Johnson City staff outlines PACER financing option for private development
Summary
Staff attorney Megan Bell described the PACER program, a financing framework enacted in 2021, and the council approved staff moving forward to set up a city portal and in-house program administration; the city would act as conduit and not borrow funds.
Megan Bell, a staff attorney in Johnson City’s legal department, told the council the legislature adopted the PACER act in 2021 and that the statute creates a mechanism for special tax assessments to finance permanent improvements for eligible private projects. "Well, I'm here to talk about the PACER program. It is, the legislature adopted the PACER act in 2021," Bell said.
Bell said the city plans to create a web portal where developers can see if projects are eligible and to offer an in-house program administrator to help set up financing. "The city anticipates that we have a portal on the websites for interested parties to go to, to determine if they have an eligible project, and then they can work with a program administrator, which would be in house to determine how to get set up," she said.
Bell described the city's role as a conduit rather than a borrower: "It's not like the city is not borrowing money. [The] city is just really creating the scenario which a builder could ... elect to take advantage" and said the enabling statute limits the city's liability for the financing.
After the presentation, Commissioner Collier moved to proceed with staff's recommendation to set up the PACER program portal and administration; a second was not specified on the record. The roll call that followed recorded affirmative votes and the motion passed. The motion directs staff to create the portal and offer in-house administration; no additional details about implementation steps, costs, or program rules were provided during the presentation.
Why it matters: PACER-style programs allow private developers to finance infrastructure and permanent improvements through special assessments tied to property, potentially speeding projects that need capital for public-facing infrastructure. Bell emphasized the city would not be the borrower and that the statute includes language to limit municipal liability.
What remains unclear or next steps: Staff did not provide a published schedule, cost estimate, or an ordinance or policy document that would define eligibility criteria, administration fees, or the process for council review of individual projects. Bell said interested parties will be able to use a planned portal to begin evaluation, and staff will serve as a program administrator if the city proceeds.
