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City adopts PACE.The City of Ludington approved the Property Assessed Clean Energy (PACE) special assessment agreement Monday after updates were made clarifying the respective roles of the city and Mason County in the tax foreclosure process since the topic was last discussed during the council meeting on April 13.According to packet information, the program would bring new economic tools to the city for businesses within the city.It relies solely on private capital, allowing commercial, industrial and multifamily property owners to invest in energy efficiency, water efficiency and renewable energy improvements while reducing operational costs and improving building performance.The packet information also states these improvements can increase property values, attract tenants and contribute to a stronger tax base over time with no financial risk to the city.Through Lean & Green Michigan, a range of private, for-profit and nonprofit business property owners may voluntarily opt in to the special assessment mechanism of the program, which reduces upfront costs, improves access to capital and supports projects such as modernizing facilities, reducing waste and creating a more comfortable environment for employees and tenants, according to the packet.The topic generated some response during public comment.Kristi Lucas-Zimmerman, economic development director with the Chamber Alliance of Mason County, urged the council to vote in favor of PACE.“PACE is a voluntary program that gives business owners and developers access to private financing for building improvements without using city tax dollars.It allows businesses like Great Lakes Castings and others to take out private financing for a longer time period, get equity up front to help close the construction cost gap and invest in energy efficiencies that will help the company be even more successful creating more jobs and continuing to be a legacy employer in Mason County.PACE has been in effect in Michigan for more than 15 years.It’s not a new program, but it would be a new tool for the city to help their existing businesses with expansion and support multifamily housing construction and business attraction,” she said in part of her public comment.Robert McMahon, chairman and president of Great Lakes Castings, said the business is investing in technology, which he noted is very expensive but mandatory for growth.“So, what I’m asking you this evening is to vote yes to accept this program because what I’ve done is talked with not only our advisers, but I’ve located three other companies that plan to move to Ludington, and they plan to support our growth as well.We plan to be a $100 million company in five years.It’s extremely aggressive.It also doubles the amount of headcount that we have.These other companies would be at roughly the same size as well.So there’s going to be a lot of revenue generated from this growth.But again, it is very important that we get financing at this level so that we can grow immediately, very quickly, and be very profitable and bring jobs to Ludington,” McMahon said in part of his public comment.In opposition, city resident Marco Iafrate said in part of his public comment that “the last time PACE tried to peddle something in our city, many citizens spoke against it, many of them.” He asked if there was any other reason the city would want the program.When PACE came up for a vote, Councilor-at-Large John Terzano spoke in favor.“This is just as Lucas-Zimmerman pointed out, this is just another tool in the toolbox not only for developers but for existing businesses,” he said.“Yes, it is a private lending institution and I would suggest that if any local financial institutions wanted to provide longer-term loans for specific environmental projects, they would be competing, but they don’t, and this allows, as I said, businesses and developers to do it.I’m excited about it because we just heard earlier tonight from an individual who says in five years he’s going to take his company to $100 million.Where have we ever heard that before in the city of Ludington?And this program allows him to do it because he can access the funds not at the back end but at the front end to help close the construction gaps in the process.Why wouldn’t you do that?Why wouldn’t you want to provide support for a company that’s going to be a $100 million Ludington company in five years?” Councilor Bulger said, “The nicest thing about this is we’re not giving up future tax revenue, which most of those other programs do.That’s the giveback for getting the development.So this is a whole different animal and allows us to provide support.” Councilor Michael Shaw, the only dissenting vote, explained why he is against the program.“So, as you know, I am opposed to this,” he said.“There’s already tax incentives for people to take advantage of energy efficiencies.I’m opposed to supporting a private enterprise lending institution, however you want to say it.I know the banks don’t want to touch it because it takes first place in front of a regular mortgage.I don’t think we have to declare ourselves energy efficient to be energy efficient.Everybody should be energy efficient.We should be doing a lot of things, simple things like turning off the light, closing the windows and if you need new windows and you need new doors, there’s tax advantages and there are mechanisms to get that money to do that.So to provide support for a private/public lending facility, I have a problem with that, so I will be voting no.” City Manager Kaitlyn Aldrich said the topic was placed on hold from the April meeting after Mason County Treasurer Andrew Kmetz reviewed draft PACE documents and raised concerns about language related to the foreclosure process.Aldrich said Kmetz wanted time to ensure that because the city utilizes the Mason County Treasurer’s Office and the county’s delinquent tax revolving fund in foreclosure proceedings, county funds and the county itself would not be involved in the PACE agreement.The language has since been updated accordingly.