Lean & Green Michigan™ brings a break-through, shared-services model of economic development to Michigan's local governments.
Traditionally, in Michigan and around the country, municipalities had two ways to create PACE districts:
Either way, the local government faced significant financial and procedural hurdles. What is more, the only method municipalities had to fund property owners' PACE projects is by issuing bonds, which is a complex proposition.
Now, Lean & Green Michigan™ allows municipalities to create a PACE district at no cost, with no need for new government staff or lengthy RFP processes, with access to private capital -- and to do all of this cooperatively with other counties, cities and townships, building the regional economy. Consider:
|Go-it-Alone PACE District||Lean & Green Michigan™|
|Start-up||Municipality hires new staff or retains outside entity through RFP process||Municipality simply votes to join Lean & Green Michigan™ via its normal legislative process|
|Cost to municipality||Jurisdictions have paid anywhere from $150,000 to $750,000 to start a district||None. The cost of running Lean & Green Michigan™ is incorporated into the financing of each deal|
|Legal||Municipality must pay for legal counsel, whether inside or outside||Miller Canfield serves as municipality's PACE counsel with no charge to establish the PACE district|
|Funding||Municipality typically tries to issue "PACE bonds" to raise funds to finance property owners' energy projects. There is not a track record of success nationwide.||Lean & Green Michigan™ allows municipalities to bond, but it brings significant private capital to the table to fund energy projects on a free market basis|
|Regional cooperation||Each county, city or township creates its own rules and funding system, leading to a patchwork of districts that don't work together||Counties, cities and townships join together to create one efficient system that works for small and big companies alike and attracts big banks by creating a large pool of projects to finance|
|Overall model||Traditional model of each local government doing its own thing||Public-private partnership where local governments, property owners, banks and contractors collaborate to create a large market for energy efficiency and renewable energy finance|