title
Resolution of Intent to Participate in the Commercial Property Assessed Capital Expenditure Program (“C-PACE”)
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Department: |
Public Works |
Meeting Date: |
February 4, 2025 |
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Contact Name: |
David Ingram |
Public Hearing: |
No |
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Contact Phone: |
910-341-1602 |
Advertising Date/Advertised By: |
N/A |
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Attachments: |
Attachment #1: Resolution Attachment #2: Senate Bill 802 Attachment #3: C-Pace Toolkit |
PURPOSE:
The purpose of this resolution is to declare the City of Wilmington’s future intent to participate in North Carolina’s Commercial Property Assessed Capital Expenditure (C-PACE) program to provide commercial property owners and developers a long-term financing mechanism for qualifying improvements to their property.
BACKGROUND:
In July 2024, the North Carolina State legislature passed Senate Bill 802 (Attachment #2), which authorized a statewide, voluntary C-PACE program. This program allows commercial property owners to finance energy efficiency, renewable energy, water conservation, and resiliency improvements through low-cost, long-term financing.
The program will be administered by the Economic Development Partnership of North Carolina (“EDPNC”) and will allow commercial property owners to finance 100% of qualifying building improvements, up to 35% of the value of the property. The result of the program will include energy savings, lower utility bills, building resiliency, increased property values, economic and job development, and reduced carbon emissions. See the attached C-PACE toolkit (Attachment #3) for further reference.
The program offers longer repayment terms (20-30 years) than traditional commercial loans, resulting in lower annual payments and positive cash flow. C-PACE is already implemented in 40 states and Washington, D.C. and is now available to commercial property owners in North Carolina.
Joining the statewide program does not expose the City of Wilmington to any financial or legal liability. EDPNC and private capital providers will assist interested commercial property owners to apply for C-PACE financing. Local governments that join the C-PACE program will be reimbursed for administrative costs associated with executing documents related to C-PACE assessments. Except for executing documents necessary for C-PACE financing, there is no other administrative involvement by the local government.
For the City of Wilmington to participate in the C-PACE program there is a voluntary 3-step process:
Step 1 - Approve this Resolution of Intent to formally adopt the program at a future date
Step 2 - Hold a public hearing on the adoption of the C-PACE program, scheduled for the City Council meeting on March 4, 2025.
Step 3 - A final resolution to formally join the program, scheduled for the City Council meeting on March 4, 2025.
Note that the resolution will be effective only with the concurrence of the governing body of the respective county (i.e. New Hanover County), which is currently also considering a Resolution of Intent to join the C-PACE program, with the item going before the Board of Commissioners at their agenda review on January 30th, and at their regular meeting on Monday, February 3, 2025.
budget
BUDGET IMPACT:
There is no budgetary impact to the City for participation in the C-PACE program.
recommendation
RECOMMENDATION / ACTION REQUESTED:
Passage of this resolution is recommended.