The Springfield Sangamon Growth Alliance (SSGA) is proud to announce the Sangamon County Board has approved a new financing incentive through the Illinois Finance Authority (IFA) that can help lower the total development costs for new and existing commercial real estate projects in the area. The Illinois Finance Authority PACE program, which is available to all Illinois counties and municipalities, is designed to reduce costs, improve service delivery, and create uniformity in Illinois’ Commercial Property Assessed Clean Energy (C-PACE) financing market.
C-PACE financing is an economic development tool that allows developers to fund portions of their commercial real estate projects (either new build or renovation) with long-term financing at a fixed interest rate. The financing of eligible project costs is secured by a special assessment tied to the land, much like property taxes, and can make new business or renovation projects more affordable for developers.
“The SSGA will continue to bring the best practices of economic development to our community,” said SSGA President and CEO Ryan McCrady. “Having tools like C-PACE financing available will help spur investment and show developers that we can provide innovative methods to make development both affordable and effective in our community. We appreciate the Sangamon County Board stepping forward as one of the first local governments in Illinois to implement this program.”
Several municipalities throughout the state have established property-assessed clean energy programs in collaboration with IFA, but Sangamon County is the first county in the state to establish the IFA PACE program as the administrator. Abby Powell, SSGA’s Director of Business Development, said collaborating with IFA to ensure Sangamon County has an independent, neutral program administrator will help streamline the process for the developers and investors, making it more affordable and efficient for developers to apply for and receive financing.
“Any meaningful development project takes a lot of different steps to make it a reality,” said Powell. “This financing incentive will be another tool we can access to help lower the total development costs on a project for a developer while also making improvements that move us towards a clean-energy state.”
C-PACE financing can be used by owners and developers to finance or refinance eligible improvements affixed to any privately-owned commercial, industrial, non-residential agricultural, or multi-family (of 5 or more units) property or any property owned by a not-for-profit in connection with renovations of existing buildings and new construction, in each case up to 25% of the value of the property. C-PACE financing does not accelerate upon a default (payment or otherwise), permits terms of up to a 40-year loan, and allows the financing of up to 100% of all project and closing costs.
The incentive can be used on any improvements intended for energy efficiency, renewable energy, resiliency or water use. Examples of eligible improvements include everything from high-efficiency heating, ventilating or air conditioning systems, solar panels, energy-saving fixtures, cooling towers and electric vehicle charging stations among others. The financing incentive is available for large commercial real estate projects such as office buildings, hotels and industrial facilities looking to build from the ground up or rehab their existing space.
“It’s exciting to know that Sangamon County is the first county in the state to use IFA as the administrator and provide this incentive,” said Sangamon County Board Chairman Andy Van Meter. “This will be an additional benefit we can utilize to help grow our county and continue bringing in new industry.”
For more information about IFA, visit www.IFApace.com.
The Springfield Sangamon Growth Alliance (SSGA) is committed to pursuing economic prosperity and growth for Sangamon County and the City of Springfield, Illinois. Founded in 2018, the public-private sector partnership is dedicated to advancing economic development efforts in Springfield and Sangamon County. Led by a volunteer, diverse, industry-driven board of directors, SSGA is helping create and market a financially sound community; able to attract new businesses and skilled talent, while retaining the innovative companies and local workforce who already make Sangamon County their home. For more information about SSGA, visit www.ThriveInSPI.org.
