SETTING THE PACE 2.0 Session Moderator: Katrina Managan, Johnson Controls Speakers: Kristina Klimovich, PACENow Kevin Moyer, Toledo-Lucas County Port Authority Kerry O’Neill, CEFIA Russell Garcia, Johnson Controls ACEEE Finance Forum, May 13 th , 2014
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SETTING THE PACE 2Why Use PACE? 1. 100% funding –No upfront costs 2. Funding for up to 20 years 3. Immediate positive cashflow 4. No payoff on sale –PACE transfers to new owner
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SETTING THE PACE 2.0
Session Moderator: Katrina Managan, Johnson Controls
Speakers: Kristina Klimovich, PACENow
Kevin Moyer, Toledo-Lucas County Port Authority
Kerry O’Neill, CEFIA
Russell Garcia, Johnson Controls
ACEEE Finance Forum, May 13th, 2014
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What is PACE?
State passes enabling legislation
Local government creates benefit district
Building owner selects projects - voluntary
Mortgage lender gives consent for financing
PACE program arranges or provides financing
PACE assessment added to tax roll
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Why Use PACE?
1. 100% funding – No upfront costs
2. Funding for up to 20 years
3. Immediate positive cashflow
4. No payoff on sale – PACE transfers to new
owner
5. Possible off-balance-sheet treatment
6. Ability to pass payments through to tenants
4
Project Uses, Sizes and Building Types
44
Renewable Energy
28%
Energy Efficiency
62%
Mixed10%
$0
$20
$40
$60
$80
2009 2010 2011 2012 2013 Mar-2014
25%
6%
15% 13% 3%
4%
4%
8%
22%
Office
Multifamily
Retail
Services
Agriculture
Hotel
Industrial
Other
Government
PACE in 2011
Early stage PACE program development
PACE programs with funded projects
Launched PACE programs
PACE enabled
75 Projects Closed - $10 mil
Early stage PACE program development
PACE Today
218 Projects Closed - $72 mil - Pipeline of $220+ mil
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PACE programs with funded projects
Launched PACE programs
PACE enabled
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Featured Programs
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Best Practices
• Market education and sales support is essential to
generating and originating new projects
• The PACE process must be standardized and streamlined
for many owners
• A project leader should be clearly designated
• Uniformity is important across a service area
• PACE should be incorporated into the existing
commercial real estate ecosystem of lenders and
contractors
• Companies that administer program for municipalities
can work with motivated local building owners to expand