The Board Of County Commissioners met upstairs in the former Collins Ballroom to allow representatives from Creek County towns and cities to hear Nancy Graham, INCOG, (Indian Nation Council Of Governments) describe the C-PACE (Commercial Property Assessed Clean Energy) program.
The C-PACE program is a public-private partnership that enables financing for new construction of commercial property as well as renovations which make a facility more energy efficient.
“It is a type of financing, it’s not money, it’s not government money, it is simply a type of financing for commercial building. The financing is specific things that improve the building, make it more efficient, and make it cheaper to operate. It can include renewable energy,” said Ms.Graham.
The new construction or retrofitting of an existing facility must exceed the existing energy standards incorporated into Oklahoma building codes.
Oklahoma is one of over 30 states who participate in this Department of Energy program. Ms. Graham informed the Board that the way the legislation in Oklahoma is written, counties must opt into the program.
BOCC Chair Newt Stephens asked Ms.Graham if there were any “success stories” she could share with the Board. Graham said there have been six projects in Tulsa County worth $16 million since its inception in 2021.
According to OKLAHOMACPACE.ORG: “C-PACE facilitates financing between private capital providers and property owners located within the County. C-PACE is secured against the long-term asset value of the property, not the owner’s private credit.
The fixed-rate loan is paid in parallel with the County property tax system with payback extended through the average useful life of the improvements financed. The billing and loan collection is handled by the private C-PACE lender; and until repaid and released. The C-PACE assessment remains with the property and transfers to any future owner of the property.”
Graham explained the County’s role in the process, “There’s nothing administratively that Creek County would do, INCOG is your administrator. If the commercial property you are working to fund is fully eligible to the program…if the County has already agreed to opt into the program, I would contact whatever point of contact, usually in other counties, it is the Board of County Commissioners Chairman, and I would say you have an assessment, contract that’s about to close.”
She then stated that the contract is then signed by the Board of County Commissioners, the capital provider, and the property owner. “We as your administrator would then get it recorded into the county land record, so it is secured into the county and record, similar to a mortgage.” Ms. Graham went on to say that if there is a default, the county would get paid first.
Commissioner Leon Warner asked if there was a restriction on who could borrow the money and, more specifically, if a non-profit would be eligible. “A non-profit is fine, it just can’t be government property because it has to have a tax ID where property taxes are eligible to be paid,” replied Ms.Graham.
After listening to the presentation and asking questions, the Commissioners voted to move forward with the C-PACE program.
Any commercial property owner wishing to find out more information about C-PACE should contact Nancy Graham via email: Ngraham@INCOG.ORG, or call 918-579 9418.
