HomeMy WebLinkAboutPolicy-ParticipationPACE-012218a
Authorizing the Town of Lexington to Participate in the Massachusetts Commercial
Property Assessed Clean Energy Program (PACE Massachusetts)
Date Approved: Siga re of Chairman
January 22, 2018 (1
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Pursuant to M.G.L. c. 23M (the "PACE Act"), the Commonwealth has established a commercial
sustainable energy program known as the Massachusetts Property Assessed Clean Energy Program
("PACE Massachusetts") to provide a financing mechanism to private owners of commercial and
industrial properties for certain qualifying commercial energy improvements ("improvements").
The PACE Massachusetts program is administered by the Massachusetts Development Finance
Agency ("MassDevelopment"), in consultation with the Massachusetts Department of Energy
Resources.
Under PACE Massachusetts, the owner of the commercial or industrial property benefitting from
the improvements (the "benefitted property") is required to repay the financing through the payment
of a betterment assessment (a "PACE betterment assessment") placed on such benefitted property
by the municipality in which the benefitted property is located. In order for an owner of
commercial or industrial property to participate in PACE Massachusetts, Section 2 of the PACE Act
requires that the municipality in which such property is located must elect to participate in PACE
Massachusetts.
The Lexington Board of Selectmen has determined that it is in the best interest of the Town to
participate in PACE Massachusetts as a "participating municipality" as provided in the PACE Act
to permit the owners of commercial and industrial properties located in the Municipality to access
financing for qualifying commercial energy improvements through PACE Massachusetts;
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The Board of Selectmen hereby approves the Town participating in PACE Massachusetts pursuant
to the PACE Act, and authorizes the Town Manager to enter into an agreement with
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MassDevelopment (the "PACE Administration Agreement") pursuant to which the Town will agree
to:
(a) levy and record PACE betterment assessments on benefitted properties located in the
Municipality, in the amounts determined by MassDevclopment to be sufficient to repay the
PACE Massachusetts financings;
® (b) assign the PACE betterment assessments and the related liens to MassDevelopment,
which MassDevelopment may in turn assign to the providers of the financing of the
improvements (each a "capital provider"), as collateral for and the source of repayment of
such financings;
• (c) bill the owners of the benefitted properties for the installment payments necessary to
repay the PACE betterment assessments, in the amounts determined by MassDevelopment;
and
(d) enforce, to the extent required by such agreement, such PACE betterment assessments;
such agreement to be in such form as the Town Manager may approve as being in the best
interest of the Town.
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The Treasurer/Collector of the Town or such other Town agency as may be designated in such
agreement is authorized to levy and record such PACE betterment assessments on behalf of the
Town without further authorization by the Board of Selectmen or Board of Assessors.
Notwithstanding any other provision of law to the contrary, officers and officials of the
Municipality, including, without limitation, municipal tax assessors and tax collectors, are not
personally liable to MassDevelopment or to any other person for claims, of whatever kind or nature,
Linder or related to PACE Massachusetts, including, without limitation, claims for or related to
uncollected PACE betterment assessments. Other than fulfillment of obligations specified in a
PACE Administration Agreement, the Town has no liability to the owner of the benefitted property
or to any capital provider for or related to improvements financed under PACE Massachusetts.
Adopted: January 22, 2018