June 20, 2012:  The City of Delray Beach has agreed to become a member of the Florida Green Energy Works Property Assessed Clean Energy (PACE) program by entering into an Interlocal Agreement with the Town of Lantana and the Florida Green Finance Authority. Becoming an active member in this new PACE program enables our City to continue its efforts as a green and sustainable community.  In addition, this new PACE program will serve as a sustainability incentive within the newly implemented Delray Beach Economic Development Fund that is utilized to stimulate economic development activity within the City of Delray Beach.

The City’s new voluntary PACE program gives commercial property owners, within the City, the opportunity to repay energy efficiency and water conservation improvement expenditures through a non ad-valorem assessment that will be included on their annual property tax bill. This program will enable existing, new and expanding businesses to make environmental improvements that will lead to lower monthly operating costs as well as to contribute to their efforts to go green and implement more sustainable operating practices.  In addition, there are a number of expected benefits to the City, including:

• Promotes green and sustainability within the community
• Promotes and funds economic development opportunities and activities citywide
• Increases jobs
• Raises City revenues through an increase in the number of building and constructions permits & fees
• Increases property valuations and ad-valorem revenues
• Increases Tax Increment Financing (TIF) funding
• Reduces environmental impacts (i.e., Greenhouse Gas Emissions)

Local property owners also benefit because it offers long term, safe financing to develop energy and water efficiency improvements for their properties that they may otherwise not be able to afford. Once an applicant is approved and receives financing, the property owner hires a contractor to implement the improvements. When the work is completed, the Palm Beach County Property Appraiser’s Office will levy a non ad-valorem assessment on the property to repay the financed amount. This assessment will be included in the annual property tax bill (up to 20 years). Even though the property owner’s taxes may increase from the voluntary non ad-valorem assessment, the property owner will realize a reduction in monthly utility bills that would assist in repaying/offsetting the financed amount. All costs are tied to the property, thus, if sold, the non-ad valorem assessment will continue with the property until all costs are re-paid.

There is no cost for the City to participate in the Florida Green Energy Works PACE program, provided that the City remains a member of the Florida Green Finance Authority for two (2) consecutive years. In addition, the City’s new PACE program will only be offered to commercial properties. Residential properties are expected to be eligible to apply for financing at a later date.

To learn more and/or to apply for funding under the City’s new PACE program, please visit the City of Delray Beach’s new website – www.mydelraybeach.com - and click on Economic Development on the Quick Links box on the right side of the home page.

For additional information on this new PACE program, contact Rich Reade, Sustainability Officer for the City of Delray Beach, at (561) 243-7190 or E-mail reade@mydelraybeach.com.

In 2010, the Florida Legislature authorized the creation of Property Assessed Clean Energy (PACE) programs, which authorizes local governments in the state of Florida to either form individually or in partnership with other local governments, to allow property owners to voluntarily finance the installation of renewable energy, energy efficiency and wind resistance improvements on residential, commercial and industrial buildings. By voluntarily participating in this program, property owners pay an assessment over the functional life of the improvement as an on-going assessment on property tax bills (up to 20 years).

This new PACE program will provide another financial incentive to new and expanding businesses and will be included within the Delray Beach Economic Development Fund that is utilized to promote and fund economic development activity with the City of Delray Beach.