Project Process and Timeline
The Property Owner identifies a potential new construction or renovation project and works with their contractor, architect, engineer, or energy services company to develop an audit or analysis that evaluates qualified energy efficiency or alternative energy technologies and expected savings.
- The Property Owner identifies and works with a lender to determine financing terms. Economic development staff can assist Property Owners with identifying lenders for a project.
- The Property Owner and economic development staff will work with the lender and the ESID’s legal counsel to draft deal documents, including a petition. These documents set forth the obligations and relationships of the parties, including how the Special Assessments will be processed. Legal fees incurred during this process are applied to the closings costs and total project costs assessed – there are no out of pocket fees.
- The Property Owner submits the petition and other deal documents to the city, village, or township where the property is located and to the ESID.
- The ESID reviews the petition and other deal documents during a public meeting and votes on whether to approve the petition and deal documents.
- The Relevant City or Village Council or Board of Township Trustees review the petition and deal documents by way of legislation during a public meeting. This legislation includes the formal action to levy the Special Assessments on the property. That legislation, once approved, is certified to the County Auditor to include the PACE special assessments on the property’s tax bill to be collected with all other property taxes and assessments.
- The Property Owner completes the Project and receives disbursements from the lender pursuant to the terms of the deal documents.
- The Property Owner must pay the special assessments that are included on their tax bill for the term of the loan.
A project can generally complete the process in approximately 3 months. However, projects that need to move quicker may be able to do so in certain circumstances with the assistance of economic development staff. If a Property Owner has identified a project that it must begin, and for which it must pay out of pocket costs, prior to closing the PACE financing, then the Property Owner should contact economic development staff prior to paying any out of pocket costs to inquire about whether an inducement letter is possible for the project. An inducement letter allows for the Property Owner to recoup these out of pocket costs of the project with proceeds from the PACE financing.