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 local governments, building the regional economy. Consider:

  • To create a PACE district with Lean & Green Michigan, a municipality simply votes to join by passing a local resolution. What is more, Lean & Green Michigan can be tailored to incorporate the particular needs of each municipality.
  • By joining Lean & Green Michigan, municipalities allow their constituent property owners to gain access to private lenders that are part of the Lean & Green Michigan team.
  • Lean & Green Michigan represents the best kind of "shared services." Counties, cities and townships give up nothing, but by working together they create one statewide set of efficient and flexible PACE rules that really work for business, create the kind of common market that larger companies with multiple facilities need, save money, and avoid duplication and a blizzard of conflicting rules from place to place.

PACE is a great economic development tool that local governments can offer to commercial, non-profit, multifamily housing, and agricultural property owners. Property Assessed Clean Energy, or PACE, is a long-term financing tool for commercial property owners in Michigan to pay for energy efficiency, water efficiency, and renewable energy upgrades. Property owners receive 100% pre-funding for energy saving upgrades on their facilities. Local governments facilitate PACE financing by allowing commercial property owners to repay private lenders via a special assessment on their property tax bill. To take advantage of PACE financing, the property owner signs an agreement with a private lender and the local government, and the loan repayment is then added to the property owner's tax bill. Using such a tool, local governments can help reduce property owners' operating expenses, drive economic development, protect the environment, and increase property values.

Traditional PACE District vs. 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 $2,000,000 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. Legal fees are included in each project and are financed by the property owner, so the government pays nothing out of pocket.
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 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 lenders 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, lenders and contractors collaborate to create a large market for energy efficiency and renewable energy finance.

Participating Jurisdictions

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