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�� � REQUEST FOR COUNCIL ACTION Depart�ent .� ro��al Y� �� Item Description: St. Christopher Property Assessment Request BACKGROUND Date: May 11, 2015 Item No.: 8.d City Manager Approval � Earlier this year, the City Council entered into a joint powers agreement (JPA) with the St. Paul Port Autharity (SPPA) to allow Roseville business and nonprofit entities access to the SPPA's Property Assessed Clean Energy Program (PACE). The PACE program is a iinancing tool allowing for up-front, private capital to pay for building upgrades that facilitate clean energy improvements. Clean energy improvements can include building-related energy systems, mechanical systems, and renewable energy systems such as solar thermal and photovoltaic systems. The amount borrowed is repaid using a special � assessment on the property over a period of years. The special assessinent is requested and agreed to by the property owner. The Saint Paul Port Authority (SPPA) has created a program to administer PACE financing in the state of Minnesota, called PACEMN. The SPPA has authorized the issuance of up to $10 million in taxable revenue bonds to jumpstart the PACEMN program to provide capital for up- front financing for energy investments to be repaid by PACE special assessments. The PACE program is designed as a pass through program where the SPPA handles most of the paperworlc, underwrites the loan, supplies the funding, and bears any default financial risk. The SPPA currently has similar relationships with a large number of other cities. Normally, a property assessment requires a public hearing. However, since this is a property assessment initiated by the applicant, they have waived the public hearing process. The applicant is St. Christopher's Episcopal Church, located at 2300 Hamline Avenue. Our understanding is that this particular application is notable because it will be the first religious institution funded by PACE in the State of Minnesota. The cost of the proposed solar system is $211,324. The property assessment will be covering $ ll 9,000 of the installation cost. The remainder will be financed through the capitalized Federal tax credits and depreciation expense. The term of the assessment is ten years. POLICY OBJECTIVE The City of Roseville has a history of implementing policies and procedures related to the promotion of sustainability. The proposed action will promote increased energy sustainability. BUDGET IMPLICATIONS The cost of financing and financial risk is borne by the SPPA. A relatively small amount of City staff time is necessary to process the assessment. Page 1 of 2