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State CPACE director briefs council on commercial PACE financing and how Payson can opt in
Summary
SRS director Sidi Chaprell described Utah's Commercial Property Assessed Clean Energy (CPACE) program, how it works, eligible improvements and the city's role in approving voluntary assessments tied to property parcels; staff said model documents could be on the next council agenda for adoption so a hotel project can proceed.
Sidi Chaprell, director of the Utah CPACE (Commercial Property Assessed Clean Energy) program and manager for Sustainable Real Estate Solutions (SRS), presented an overview of CPACE financing to the council at the May 21 meeting.
Chaprell explained CPACE allows commercial property owners to request a voluntary assessment placed on their parcel to finance energy efficiency, water conservation, renewable energy, EV charging, seismic retrofits and related soft costs. In Utah the program operates like a local assessment (similar to a water or sewer assessment) recorded against the property; repayment is attached to the parcel, not a personal guarantee. Chaprell said lenders registering with the program provide long‑term fixed‑rate, non‑recourse capital and that projects can be underwritten on measured building performance.
Chaprell described the administrator role SRS plays (validating technical eligibility, coordinating documents and presenting a complete package to the jurisdiction). She said the statute requires that if a project lies within a city’s corporate limits the city must approve placing a voluntary lien on the parcel and contemporaneously assign the lien to the third‑party lender; the city’s role is primarily review and assignment of the documents, and SRS said there is no cost to the jurisdiction. Chaprell said owners pay an administrative fee (3% of loan amount, capped) to support the program administrator.
Councilors asked whether CPACE would conflict with Payson’s status as a power city and whether available utility incentives (for example from Rocky Mountain Power in other jurisdictions) must be matched by the city. Chaprell said CPACE can be used in conjunction with utility incentives but CPACE does not require the city to provide matching incentives and the program is agnostic to local utility structure. She also said senior lenders must be aware and provide approvals, but lenders and owners have used CPACE alongside other financing structures in many states.
Payson staff told council the Fairfield Inn and Suites developer near Walmart had expressed interest and asked whether council wanted staff to bring formal adoption documents to the next council meeting. Council expressed general support and staff said a services agreement and model documents could be placed on the consent or regular agenda for adoption to allow the developer to move forward.
Ending: Council asked staff to place CPACE adoption documents on a future meeting agenda so interested developers may pursue CPACE financing; staff said the formal packet will include model forms, lender documentation and the services agreement with the program administrator.
