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Resolution Authorizing the City of Wilmington to Participate in the Commercial Property Assessed Capital Expenditure (C-PACE) Program
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Department: |
Public Works |
Meeting Date: |
3/4/2025 |
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Contact Name: |
David Ingram |
Public Hearing: |
Yes |
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Contact Phone: |
910-341-1602 |
Advertising Date/Advertised By: |
2/23/2025 - Star News |
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Attachments: |
Resolution Authorizing Participation; Resolution of Intent; C-PACE Toolkit |
PURPOSE:
This resolution formally authorizes the City of Wilmington to participate in the Commercial Property Assessed Capital Expenditure (“C-PACE”) Program to provide commercial property owners and developers a low-cost, long-term, financing mechanism for qualifying improvements to their property.
The item presented to Council covers the public hearing and resolution steps shown below for the City of Wilmington to participate in the C-PACE program. The steps have included:
Step 1 - Approve a Resolution of Intent, which City Council approved at the February 4, 2025 meeting.
Step 2 - Hold a public hearing, which was performed as part of today’s City Council meeting on March 4, 2025.
Step 3 - Adopt this Resolution authorizing participation in the C-PACE program
BACKGROUND:
In July 2024, the North Carolina State Legislature passed Senate Bill 802 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. City staff met with a developer in late 2024 who has interest in using the program to support the redevelopment of property within the city limits.
The program will be administered by the Economic Development Partnership of North Carolina (“EPDNC”), and will allow commercial property owners to finance 100% of qualifying building improvements up to 35% of the value of the property. Qualifying improvements include energy efficiency, renewable energy, resiliency, and water conservation, as well as improvements made to address safe drinking water. As a result, the program will provide several benefits including energy savings, lower utility bills, building resiliency, increased property values, economic and job development, and reduced carbon emissions.
The program offers longer repayment terms (20-30 years) than traditional commercial loans. This structure often results 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, and there are no budgetary impacts. EPDNC 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.
New Hanover County had a public hearing and passed a resolution to formally participate in the C-PACE program at their Board of Commissioners meeting on Monday, February 17, 2025.
budget
BUDGET IMPACT:
There are no budgetary impacts to participate in the C-PACE program.
recommendation
RECOMMENDATION / ACTION REQUESTED:
Passage of this Resolution is recommended.