Councilpersons Christie, Robinson and others asked questions about PACE to presenters Charlene Hydinger, Laura Spanjian, PACE Houston's Tim Crockett and several other interested parties.
The questions from Council centered on economic development with the council already having become familiar with the program. PACE 101 explains the program. While Tim spoke extemporaneously, the substance of his remarks addressed the benefit of PACE to the city and are reproduced below.
October 21, 2015
Houston City Council Public Hearing
PACE (Property Assessed Clean Energy)
Thank you Madame Chair and Councilmembers and City staff for the opportunity to speak today. I would like to recognize the countless foundational hours of hard work done by the Texas PACE Authority and HARC.
My name is Tim Crockett, a 35 year veteran of Houston’s commercial real estate industry. I am here today speaking in support of PACE and on behalf of my company, PACE Houston. We are an independent, private company that will work within the City and State’s guidelines to assist Property Owners to implement PACE improvement projects.
PACE will allow commercial property owners to gain access to a powerful financing tool already in use across 32 states.
PACE allows a property owner the opportunity, in an open market setting, to obtain long term, fixed rate, 100% private financing to make energy and water saving improvements.
PACE enables the property owner to decrease their operating cost, increase their cash flow and lower their CAP Rate. Having PACE included in the capital stack can also lower a property’s weighted average cost of capital.
PACE is the most significant new development I have seen in my 35 year real estate career. It is a real game changer for our city, another great example of a public – private partnership and a win-win opportunity.
I personally experienced capital limitations during the 10 year redevelopment of the Esperson Buildings. PACE would have addressed these limitations.
PACE extends the useful life of existing power generation and public water resources.
PACE and its energy conservation qualities will further enhance Houston’s image as the energy capital of the world.
PACE will improve the quality of our commercial real estate inventory and thus protect our tax base.
PACE represents an opportunity that reaches across the political aisle benefitting: big property owners and small tenants, business owners and environmentalists, energy providers and energy users and PACE provides job opportunities for the citizens of Houston.
In conclusion, I would like to express my personal support and the support of PACE Houston for this important program.