C-PACE Gets Council Approval
NEWINGTON - Newington business owners have been given the greenlight for Green Bank.

       The Town Council unanimously approved a Connecticut Property Assessed Clean Energy (C-PACE) program agreement that will provide state assistance to finance energy improvements to commercial buildings. All funding is paid back to the Connecticut Green Bank through the additional property taxes a business owner pays.

       Newington Economic Development Director Andy Brecher requested the deal’s approval two weeks prior to the Council’s Oct. 28 meeting, during which the motion was passed.

       Although Connecticut Green Bank is fronting the money, it is not considered a loan, Brecher said at the previous meeting.

       â€"Even though you’re borrowing the money, it’s a benefit assessment instead of a loan,” he said. â€"It allows companies more access to capital if this is considered something other than a loan.”

       That means better credit lines and more savings, Brecher said.

       â€"The property owners benefit because they get more favorable terms,” Brecher said. â€"They can go 20 years making their improvements.”

       That’s how much time the agreements can stretch for, and that’s twice as long as a typical bank loan, according to Brecher.

       The loans also do not bind the owner to the property, since the agreement can transfer to a new building if the business relocates, he said.

       Launched two years ago, the C-PACE program currently has 96 towns enrolled in it. Through the program, the Connecticut Green Bank has administered around $40 million in loans.

       The town would receive $500 per year in compensation for issuing the tax bills, collecting the payments, and transferring them to the Green Bank using a modified revenue collecting software, according to Brecher.

       Although Brecher did not specify as to which businesses are seeking the loans, he said that one is on North Mountain Road and the other resides on Willard Avenue.
MORE NEWINGTON NEWS  |  STORY BY MARK DIPAOLA  |  Nov 12 2014  |  COMMENTS?