title
CC - CONSENT ITEM: Adoption of a Resolution Authorizing the California Statewide Communities Development Authority to Offer Property Assessed Clean Energy Financing to Redcar Properties at 3590-3620 Eastham Drive and 8432 Stellar Drive.
body
Meeting Date: October 28, 2024
Contact Person/Dept: Elaine Warner/Office of Economic and Cultural Development
Phone Number: (310) 253-5777
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (10/23/2024); RedCar Properties (10/23/2024) James Hamill, Managing Director of the California Statewide Communities Development Authority (10/23/2024)
Department Approval: Jesse Mays, Assistant City Manager (10/08/2024)
_____________________________________________________________________
RECOMMENDATION
Staff recommends the City Council adopt a Resolution to authorize the California Statewide Communities Development Authority (CSCDA) to offer their Property Assessed Clean Energy (“Open PACE”) program financing to Redcar Properties relative to 3590-3620 Eastham Drive and 8432 Stellar Drive.
BACKGROUND
CSCDA, the largest joint powers authority in California, was founded and sponsored by the League of California Cities and the California State Association of Counties. CSCDA has implemented Property Assessed Clean Energy (“PACE”) under the provisions of Chapter 29 of Division 7 of the Streets & Highways Code (“Chapter 29”) on behalf of its member counties and cities. Chapter 29 authorizes a legislative body to designate an area within which a public agency (including a joint powers authority like CSCDA) and property owners may enter into voluntary contractual assessments to finance and refinance the installation on real property of distributed generation renewable energy, energy efficiency, water efficiency and seismic strengthening improvements, electric vehicle charging infrastructure and such other improvements, infrastructure or work as may be authorized by law from time to time (collectively, the “Improvements”).
PACE has been approved and is available in over 460 cities and counties throughout the State.
CSCDA has established the CSCDA Open PACE Program to provide financing for Improvements under Chapter 29 and designated multiple third-party program administrators, including Nuveen Green Capital, to offer CSCDA’s members turn-key PACE solutions.
DISCUSSION
CSCDA contacted staff regarding an inquiry from Nuveen Green Capital, one of their Commercial PACE providers, regarding financing for two industrial properties in Culver City for Redcar Properties located at 3590-3620 Eastham Drive and 8432 Steller Drive. The financing would be approximately $24.8 million for the Eastham project and $15 million for the Steller project for energy efficiency, water conservation and related upgrades to the buildings. Similar to the financing approved for Southern California Hospital in 2019, the CSCDA is requesting the City Council consider the proposed resolution to allow Commercial PACE financing for these two project locations (Attachment 1). The resolution is to approve only the two properties noted, and no other projects in the City.
The CSCDA requires the City to adopt a Resolution to allow Redcar Properties to execute the loan agreement. The Resolution does not permit CSCDA to offer their Open PACE program to other property owners in the City.
FISCAL ANALYSIS
There is no direct fiscal impact to the City by adopting the proposed Resolution.
ATTACHMENT
1. 2024-10-28 - ATT_Proposed Resolution to Authorize the CSCDA Open PACE Program Relative to Specific Redcar Properties.
MOTION
That the City Council:
Adopt a Resolution authorizing the California Statewide Communities Development Authority to offer their Property Assessed Clean Energy program financing to Redcar Properties.