The city of Eagan has entered into a partnership with the St. Paul Port Authority to offer a new form of financing to business property owners for energy efficiency and renewable energy improvements.
The program offers Property Assessed Clean Energy (PACE) loans, a financing option that’s an alternative to a traditional bank loan. The PACE loans create a voluntary special assessment, typically up to 15 years, that is added to the business owner’s property tax bill. The loans have a fixed interest rate that is typically below the market rate.
The port authority issues and sells bonds purchased by private investors to fund the energy efficient improvements. It also acts on the city’s behalf to review, underwrite and manage the improvement loans. The city collects the loan repayments via the special property tax assessments.
The Eagan City Council approved the program Aug. 6 on the recommendation of the city’s Energy & Environment Advisory Commission.
Energy improvements include more efficient lighting, motors, heating and air conditioning, windows and insulation, as well as solar, photovoltaic, wind and geothermal energy generation. An individual PACE-funded project cannot exceed 10 percent of the property’s assessed value.
For more information about the loan program, contact Peter Klein at the port authority at 651-204-6211 or firstname.lastname@example.org.
A buyer for West Side Lanes
West St. Paul has agreed to sell the former West Side Lanes building to a developer who has plans for a retail complex that would include an upscale health club.
The Economic Development Authority recently approved the sale of the building at 1625 Robert St. to Aurora Investments LLC for $1.3 million. That’s the same price the city paid to acquire the West Side Lanes out of foreclosure. The acquisition, which closed late last year, involved buying out two lenders and acquiring the property redemption rights of the bowling alley’s owners.
Aurora has agreed to pay the city an additional $52,500 to demolish the bowling alley. Construction of the 35,000-square-foot health club and 11,700 square feet of additional retail space is expected to begin by the end of this year.