Crow Wing County authorizes participation in MN PACE program and certifies first project

The Crow Wing County Board of Commissioners on July 14 authorized the Saint Paul Port Authority to implement and administer the Minnesota Property Assessed Clean Energy (MN PACE) program in the county and certified a PACE special assessment for a project at 15 Washington Street.

Holly Houston, MN PACE program administrator with the Saint Paul Port Authority, explained the program's structure: the Port Authority administers applications and connects property owners with private capital providers; the county's role is limited to recording special assessments and collecting payments with property taxes. "The advantage of having the Saint Paul Port Authority at the helm is that we're grama. We know the rules so you don't have to have somebody at the county level that's your expert," Houston said, adding the program has completed hundreds of projects statewide.

Houston said there are no state taxpayer dollars required for PACE administration and that program administrative fees paid by property owners typically cover program administration. She also described underwriting and default procedures and noted only one default among approximately 485 projects in the state's program history.

Commissioners asked about interest rates, bank participation, county administrative costs and whether PACE would change property valuation. Houston said loan terms and interest rates vary by capital provider and that the program requires mortgage‑holder sign‑off; she said PACE assessments do not change property tax valuation for the county's purposes.

The board voted to authorize the joint powers agreement with the Saint Paul Port Authority and to certify the special assessment for the 15 Washington Street project. Staff noted the county could set administrative fees through its fee schedule if it chooses to recover collection costs.