Garland council sets public hearing on commercial PACE finance program

The Garland City Council voted 8-1 on Sept. 16 to adopt a resolution of intent to create a City of Garland commercial Property Assessed Clean Energy program (C-PACE) and to set a public hearing on Oct. 6.

"PACE stands for Property Assessed Clean Energy," Ayako Schuster, director of economic development, said in presenting the item. She told the council the Texas PACE Act was signed in 2013 and that Texas jurisdictions may establish C-PACE programs to provide private, long-term financing for renewable energy, energy-efficiency and water-efficiency upgrades on commercial properties.

Schuster said benefits for property owners include access to capital for improvements without large upfront costs, potential property-value enhancement and that the financing is tied to the property rather than as a personal guarantee. She said the city would gain an economic-development tool to improve building stock and conservation while incurring "no financial risk for the city" as presented.

Next steps outlined at the meeting include a public hearing on Oct. 6 and finalizing a professional services agreement with Lone Star PACE, a third-party administrator that Schuster said serves 28 other jurisdictions. Schuster said two city representatives will participate in the program administration: the director of economic development and the City's tax assessor-collector.

Councilmember Moore moved to adopt the resolution to hold the public hearing; the motion was seconded by Mayor Pro Tem Luck. The motion passed 8-1, with Councilmember Dutton recorded in opposition.

If the council approves C-PACE after the hearing and finalizes the professional services agreement, eligible commercial property owners would be able to seek private financing under the program and repay assessments via their property tax bill, consistent with Texas C-PACE mechanics. The ordinance and implementation documents will return to the council for final action after the Oct. 6 hearing.