This week, the Post Falls City Council unanimously decided to delve into the Commercial Property Assessed Clean Energy (C-PACE) financial initiative. Initially introduced in Coeur d’Alene, this program offers long-term loans spanning 20 to 30 years for new construction projects that integrate energy-efficient designs or upgrades to existing commercial buildings. The C-PACE framework enables developers in Post Falls to leverage property tax liens for financing projects focused on renewable energy and conservation.
City administrator Shelly Enderud highlighted that the C-PACE program poses no liability to the city, with all capital funds provided by lenders. Benefits include environmentally friendly buildings and a 1% service fee for the city. However, concerns arose over specific project approvals and whether multi-family residences should be included as commercial properties.
Potential Advantages of the C-PACE Program
The C-PACE program offers significant opportunities for sustainable development within Post Falls. By allowing developers to finance projects through property tax liens, the initiative supports energy-efficient designs and upgrades such as new roofing or HVAC improvements. This approach not only promotes environmental responsibility but also fosters economic growth by enabling longer-term loans for local developers. The city benefits from more eco-friendly structures and a dedicated application fee, enhancing its overall appeal.
Mayor Ron Jacobson emphasized the advantages of the C-PACE program, noting that it involves no municipal liability since all funding originates from lenders. Instead, the city collects an application fee while encouraging safer and greener buildings. For instance, a potential project like constructing a new roof for Buck Knives aligns perfectly with the program's objectives. Additionally, developers make direct payments to banks, streamlining the financial process and ensuring transparency.
Addressing Concerns and Clarifying Standards
Despite its promise, the C-PACE program raises questions about project approval standards and property classifications. Councilor Joe Malloy questioned whether leadership can evaluate projects on a case-by-case basis or if predefined criteria are necessary. Furthermore, Councilor Samantha Steigleder expressed reservations about including multi-family residences and condos as commercial properties, advocating for their exclusion to prevent unforeseen complications.
City attorney Field Herrington clarified that most reviews stem from the new state statute, although further investigation into permissible restrictions is warranted. This ensures that controversial uses, such as environmentally friendly strip clubs, align with the city’s values and objectives. Meanwhile, Councilor Randy Westlund praised the initiative for fostering economic development and potentially alleviating aquifer strain. Balancing innovation with caution remains crucial as Post Falls moves forward with implementing the C-PACE program.