Properties Magazine April 2017 : Page 29

VANTAGE POINT Experts weigh in on industry issues PACE & TIF: Tools for Urban Redevelopment lthough there are many financing tools that can be used to finance an urban redevelopment project, there are two that spring to mind: Property Accessed Clean Energy (PACE) and Tax Increment Financing (TIFs). A LORI PITTMAN HAAS HENRY BAILEY PACE financing is a tool employed by local governments to finance energy efficient and renewable energy improvements for eligible prop-erty owners through Energy Special Improvement Districts (ESIDs). Only certain energy improvements are eli-gible to be financed through PACE, such as solar paneling improvements, geothermal improvements, customer-generated energy projects, or other energy efficiency improvements (including energy efficiency technol-ogy, products, activities that reduce or support the reduction of energy consumption, allow for the reduction in demand, or support the production of clean, renewable energy and that are or will be permanently fixed to the real property). Typically, municipal bonds are issued equal to 100% of the amount of the energy improvements that are then repaid by the owner of the property through special assess-ments on the property paid over the projected useful life of the energy improvements. This allows property owners to make eligible energy systems upgrades on their properties without the burden of paying for those costs upfront. The assessed amount levied against the property will be paid over a period of years. It is important to note that in the event of default, the county treasurer has the right to prosecute foreclosure action against the property to collect all special assessments then due and owing. In a TIF, funds which would normally be paid by the developer for real estate taxes after completion of improvements may be redirected to payment of the costs of public infrastructure improve-ments. So, instead of paying real estate taxes, the developer is paying for public infrastructure which would not ordi-GRANITE | MARBLE | QUARTZ | FORMICA/LAMINATE | TILE | CORIAN A G M Arquilla Granite Mechanics LLC Family owned + operated, Arquilla Granite Mechanics provides installation of kitchen counters, vanities, showers, outdoor/indoor bars & grills, fireplaces + much more. We can modify and fabricate in the field to ensure a one-and-done experience. 4500 7th Street NW, North Canton, OH 44708 Mark 330.236.9599 | Lyn 330.481.9461 | 29

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