Resolution 6115 - Establishes CPACE Program in KalispellrA
RESOLUTION NO.6115
A RESOLUTION ESTABLISHING A COMMERCIAL PROPERTY ASSESSED
CAPITAL ENHANCEMENT (C-PACE) PROGRAM IN KALISPELL, MONTANA.
WHEREAS, in 2021, the Montana Legislature enacted the Commercial Property Assessed
Capital Enhancement Act of Montana, Montana Code Annotated, Title 90, Chapter
4, Part 13 (the "PACE Act'), which allows municipalities to designate a district
within which an authorized local government official and the record owners of a
privately owned commercial or industrial facility, covered multifamily housing
accommodation as defined in § 49-2-305(6), MCA, or agricultural property
("Eligible Properties") may enter into written contracts to impose assessments on
the property to repay the financing by the owners of Energy Conservation Projects
as defined in § 90-4-1302(5), MCA; and
WHEREAS, the installation or modification by property owners of qualified Energy
Conservation Projects in the City of Kalispell will further the goals of increasing
economic efficiency and energy conservation without cost to the public; and
WHEREAS, the City Council finds that financing Energy Conservation Projects through
contractual assessments ("PACE financing") furthers essential government
purposes, including but not limited to, economic development, reducing energy
consumption and costs, and conserving natural resources; and
WHEREAS, the City Council adopted Resolution 6114, a Resolution of Intent to establish a
PACE program for the City of Kalispell on December 19, 2022, including a
reference to the Montana Facility Finance Authority (the "MFFA") (the
"Authorized Representative") Program Plan prepared as required by § 90-4-
1306(1)(a)(iii), MCA, of the PACE Act and made the report available to the public
via a link to the MFFA website; and
WHEREAS, the public hearing required by § 90-4-1306(1)(b), MCA, of the PACE Act at which
the public could comment on the proposed program, including the MFFA Program
Plan available for public inspection as mentioned above occurred on January 3,
2023 at City Hall, 201 1 st Avenue East, for the City of Kalispell; and
WHEREAS, pursuant to the PACE Act, the City Council will delegate the administration of the
City of Kalispell PACE program to the MFFA that can administer the program at
no cost to the City of Kalispell. Administration by the MFFA will enable the
program to be administered without use of City of Kalispell resources, will assure
the objectives of impartiality and confidentiality of owner information, and will be
convenient and advantageous to the City of Kalispell.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION 1. The City of Kalispell hereby adopts this Resolution establishing the City of
Kalispell PACE Program and finds that financing qualified projects through
contractual assessments pursuant to the PACE Act is a valid public purpose
and is convenient and advantageous to Kalispell and its citizens. The
program will be called Kalispell Commercial Property Assessed Capital
Enhancement ("Kalispell PACE") and is herein called "the Program."
SECTION 2. The City of Kalispell will, at the property owner's request, impose
contractually agreed to special assessments on the property to repay PACE
financing for Energy Conservation Projects available to the record owners
of a privately owned commercial or industrial facility, covered multifamily
housing accommodation as defined in § 49-2-305(6), MCA, or agricultural
property.
SECTION 3. The following two types of projects are qualified projects for PACE
financing that may be subject to such contractual assessments:
1. "Energy Conservation Measures" means a permanent cost-effective energy
improvement fixed to real property, including new construction, and intended to
decrease energy or water consumption and demand, including a product, device, or
interacting group of products or devices on the customer's side of the meter that
uses energy technology to generate electricity, provide thermal energy, or regulate
temperature. The exemplary list of energy conservation measures codified at § 90-
4-1302(4), MCA, is incorporated by refence herein.
2. "Renewable Energy System" means a fixture, product, device, or interacting group
of fixtures, products, or devices on the customer's side of the meter that uses one or
more forms of renewable energy to generate electricity or to reduce the use of
nonrenewable energy. The term includes a biomass stove but does not include an
incinerator or a digester. "Renewable Energy" has the meaning provided in § 15-
24-3102, MCA.
SECTION 4. The boundaries of the entire geographic area within the City of Kalispell's
jurisdiction are the boundaries of the district where PACE financing and
assessments can occur.
SECTION 5. Financing for qualified projects under the PACE program will be provided
by qualified third -party lenders chosen by the owners. Such lenders will
execute written contracts with the City of Kalispell's representative to
service the assessments, as required by the PACE Act. The contracts will
provide for the lenders to determine the financial ability of owners to fulfill
the financial obligations to be repaid through assessments, advance the
funds to owners on such terms as are agreed between the lenders and the
owners for the installation or modification of qualified projects, and service
the debt secured by the assessments, directly or through a servicer, by
collecting payments from the owners pursuant to contracts executed
between the lenders and the owners. The lender contracts will provide that
the City of Kalispell will maintain and continue the assessments for the
benefit of such lenders and enforce the assessment lien for the benefit of a
lender in the event of a default by an owner. The City of Kalispell will not,
at this time, provide financing of any sort for the PACE program.
SECTION 6. The MFFA will be designated as the Authorized Representative with
authority to enter into written contracts with the record owners of real
property in the City of Kalispell, to provide notice of assessment levies
imposed by the City of Kalispell to the County assessor pursuant to the
PACE Act to repay the financing of qualified projects on the owners'
property, enter into written contracts with the parties that provide third -
party financing for such projects to service the debts through assessments,
and to receive assessment funds from the City of Kalispell for the purpose
of paying debt service due on such third -party financings secured by the
assessments. The City Manager or his/her designee will be the liaison with
the Authorized Representative.
SECTION 7. The City Council may amend the Program by resolution adopted after
public comment at a properly noticed regular public meeting.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 6TH DAY OF FEBRUARY, 2023.
ATTEST:
Ainjee Brunckhorst, CMC
City Clerk
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Mark Jo
Mayor