Keeping Up the PACE: Bricker & Eckler Serves as Bond Counsel for Ohio’s Third PACE Bond Transaction

MENTOR, Ohio … Bricker & Eckler served as bond counsel for Ohio’s third issuance of Property Assessed Clean Energy (PACE) bonds. On December 20, 2012, the Lake County Port Authority issued $3.375 million in bonds to assist the Great Lakes Mall in Mentor, Ohio, in financing energy efficiency improvements, including HVAC improvements and the installation of an energy efficient roof.

The Lake County Port Authority’s PACE bonds were owner-financed, meaning the bond investor was also the owner of the real property assessed. Great Lakes Mall was able to better manage its costs for the energy efficiency improvements, and was able to earn some interest rate return on its investment by using the PACE assessment to pass a portion of its costs through to tenants and others responsible for paying the property tax bills on the mall property.

PACE bonds are a financial tool used by property owners to fund energy efficiency improvements on their properties. Property owners who take advantage of PACE funding opportunities may use the money for a variety of projects, including installing energy efficiency improvements on existing office buildings or warehouses, or acquiring an alternative energy source like solar panels or wind turbines.

PACE is also a useful tool for municipalities, school districts, counties and townships. These types of governmental entities can use PACE funding for significant amounts of deferred maintenance or to update or supplement their power sources. A properly structured PACE financing transaction can provide up-front capital to public entities without impacting certain local debt limitations.

Bricker & Eckler is Ohio’s leader in PACE financing. Bricker attorneys can work with private property owners and governmental entities to create the special improvement district necessary to implement PACE financing, to levy assessments and to structure the financing arrangements necessary to fund the improvements.

For more information on PACE assessments and financing for you or your community, contact J. Caleb Bell at jbell@bricker.com.

For more information about the Lake County Port Authority, visit http://www.lcedc.org/.