HomeMy WebLinkAboutOrdinance 2017 (851) Ordinance No. 851 (2017)
S0��, UNTy AN ORDINANCE CREATING CHAPTER 92 OF THE CODE OF
ORDINANCES OF ST. CROIX COUNTY ENTITLED
"PROPERTY ASSESSED CLEAN ENERGY FINANCING"
1 The St. Croix County Board of Supervisors of the County of St. Croix County, Wisconsin does
2 ordain as follows:
3
4 Section 1. Chapter 92 of the St. Croix County Code of Ordinances is created to read as follows:
5
6 CHAPTER 92
7
8 PROPERTY ASSESSED CLEAN ENERGY FINANCING
9
10 92.1 PURPOSE. St. Croix County finds that renovations or additions to premises located in the
11 County made to improve energy efficiency, improve water efficiency, and/or use renewable
12 resource applications, increase property values, stimulate local economic activity,provide local
13 and global environmental benefits, and promote the general welfare of St. Croix County
14 residents. The purpose of this ordinance is to facilitate loans arranged by property owners or
15 lessees to make such improvements by treating loan principal and interest, fees, and other
16 charges as special charges eligible for inclusion on the tax roll for these properties.
17
18 92.2 STATUTORY AUTHORITY. This ordinance is enacted pursuant to Wis. Stat. § 66.0627,
19 as amended, which authorizes a County to make a loan or enter into an agreement regarding loan
20 repayments to a 3rd party for owner-arranged or lessee-arranged financing, to an owner or a
21 lessee of a premises located in the County for making or installing an energy efficiency
22 improvement, a water efficiency improvement or a renewable resource application to a premises.
23
24 92.3 DEFINITIONS. In this ordinance:
25 (a) "Annual installment" means the portion of the PACE loan that is due and payable
26 for a particular year under the supplemental agreement.
27
28 (b) `Borrower" means the property owner or lessee of the subject property that
29 borrows the proceeds of a PACE loan.
30
31 (c) "Default loan balance" means the outstanding balance, whether or not due, of a
32 PACE loan at the time that St. Croix County receives foreclosure proceeds.
33
34 (d) "Foreclosure proceeds"means the proceeds received by St. Croix County from
35 the disposition of a subject property through an in rem property tax foreclosure.
36
37 (e) "Loan amount" means the principal, interest, administrative fees (including the
38 Program Administrator's fees) and other loan charges to be paid by the borrower
39 under the PACE loan.
40
41 (f) "PACE" means the acronym for property assessed clean energy.
42
43 (g) "PACE default provisions"means:
44 1. The delinquent annual installment(s) due when St. Croix County initiates the in
45 rem property tax foreclosure on the subject property;
46 2. Any additional annual installment(s) that become due between the time that St.
47 Croix County initiates in rem property tax foreclosure on the subject property and
48 the date St. Croix County receives the foreclosure proceeds;
49 3. Any default interest charges applied to unpaid annual installments referenced in
50 subs. (1.) and (2.) above, as provided in the supplemental agreement; and
51 4. Any default loan balance.
52
53 (h) "PACE lender"means any person that makes a PACE loan, and which may
54 include an affiliate of the borrower.
55
56 (i) "PACE loan" means a loan made by a PACE lender to a borrower under this
57 ordinance for energy efficiency improvements, water efficiency improvements, or
58 renewable resource applications made to or installed on a subject property.
59
60 (j) "Person" means any individual, association, firm, corporation,partnership,
61 limited liability company, trust,joint venture or other legal entity, or a political
62 subdivision as defined in Wis. Stat. § 66.0627.
63
64 (k) "Program Administrator"means the person retained by the Wisconsin PACE
65 Commission as provided in Section 92.5(b).
66
67 (1) "Subject property"means any premises located in St. Croix County on which an
68 energy efficiency improvements, water efficiency improvements, or renewable
69 resource applications are being or have been made and financed through an
70 outstanding PACE loan.
71
72 (m) "Supplemental agreement" means a written agreement among a borrower, a
73 PACE lender and the County, as provided for in Section 92.7.
74
75 (n) "Wisconsin PACE Commission" means the Wisconsin PACE Commission
76 formed under Wis. Stat. § 66.0301, as amended, by St. Croix County and one or
77 more other political subdivisions as defined in Wis. Stat. § 66.0627,pursuant to a
78 Joint Exercise of Powers Agreement relating to the Wisconsin PACE
79 Commission.
80
81 92.4 PACE LOANS AS SPECIAL CHARGES; DELINQUENT AMOUNTS AS LIENS.
82 Any PACE loan made and secured pursuant to this ordinance shall be considered a special
83 charge on the subject property. Any annual installment or portion of a PACE loan made and
84 secured pursuant to this ordinance that becomes delinquent according to the terms of the PACE
85 loan shall be a lien against the subject property and placed on the tax roll, as permitted pursuant
86 to Wis. Stat. §66.0627 as amended.
87
88 92.5 WISCONSIN PACE COMMISSION.
89 (a) Any of the powers and duties of St. Croix County under this ordinance, except for
90 those under Section 92.9, may (but are not required to)be delegated to the
91 Wisconsin PACE Commission.
92 (b) The Wisconsin PACE Commission is further authorized to retain a Program
93 Administrator to act as its agent and administer the PACE program, subject to
94 adherence with PACE program requirements set forth in this ordinance and in
95 Wis. Stat. § 66.0627 as amended.
96
97 92.6 LOAN APPROVAL.
98 (a) A prospective borrower applying for a PACE loan shall comply with the loan
99 application process set forth in the program manual approved by St. Croix
100 County.
101 (b) St. Croix County shall approve the financing arrangements between a borrower
102 and PACE lender.
103
104 92.7 SUPPLEMENTAL AGREEMENT.
105 (a) St. Croix County, the borrower and the PACE lender shall execute the
106 supplemental agreement which, without limitation:
107 1. Shall inform the participants that the PACE loan amount shall be imposed
108 as and considered a special charge, and each year's annual installment
109 may be included on the property tax roll of the subject property as a
110 special charge and an annual installment that is delinquent shall be a lien
111 against the subject property pursuant to Wis. Stat. § 66.0627, as amended;
112 2. Shall recite the amount and the term of the PACE loan;
113 3. Shall provide for the amount, or a method for determining the amount, of
114 the annual installment due each year;
115 4. Shall provide whether default interest may be applied to unpaid annual
116 installments;
117 5. Shall require the PACE lender and the borrower to comply with all
118 federal, state and local lending and disclosure requirements;
119 6. Shall provide for any fees payable to the County and/or Program
120 Administrator;
121 7. Shall recite that the supplemental agreement is a covenant that runs with
122 the land;
123 8. May provide for prepayments of annual installments by the borrower with
124 a resulting reduction in the special charge for the prepayment, subject to
125 any prepayment premium charged by the PACE lender, if any; and
126 9. May allow for amendment by the parties.
127 (b) Prior to executing the supplemental agreement, the owner of the subject property,
128 if different from the borrower, and any existing mortgage holder(s) on the subject
129 property must have executed a separate writing acknowledging the borrower's use
130 of PACE financing for the subject property and the special charge that will be
131 imposed under this ordinance and its consequences, including the remedies for
132 collecting the special charge.
133 (c) Each PACE loan shall be amortized over the term of the PACE loan as provided
134 in the supplemental agreement.
135 (d) The annual payments of a PACE loan may be payable in installments as
136 authorized by Wis. Stat. § 66.0627, as amended.
137
138 92.8 ANNUAL INSTALLMENTS ADDED TO TAX ROLLS. Upon the request of the
139 Program Administrator St. Croix County shall place each year's annual installment on the tax
140 roll for the subject property as permitted pursuant to Wis. Stat. § 66.0627, as amended.
141
142 92.9 REMITTANCE OF SPECIAL CHARGES. St. Croix County shall promptly remit to the
143 Wisconsin PACE Commission any payment(s) for a special charge imposed under this
144 Ordinance, including penalties and charges thereon, it may receive from any taxing district or the
145 St. Croix County treasurer pursuant to Wis. Stat. Ch. 74, as amended.
146
147 92.10 PROPERTY TAX FORECLOSURE PROCEDURES.
148 (a) St. Croix County elects to utilize the provisions of Wis. Stat. § 75.521, as
149 amended, for the purpose of enforcing tax liens if a subject property owner fails to
150 pay any special charges imposed on the subject property under this ordinance as
151 required.
152 (b) St. Croix County shall begin an in rem property tax foreclosure proceeding on the
153 subject property at the earliest time allowed under Wisconsin Statutes, unless St.
154 Croix County determines that subject property is a"brownfield" (as defined is
155 Wis. Stat. § 75.106, as amended) or that in rem property tax foreclosure is not in
156 the best interests of St. Croix County due to the condition of the property or for
157 other reasons.
158 (c) If St. Croix County has determined that it will not commence an in rem property
159 tax foreclosure proceeding, then the PACE lender may request that St. Croix
160 County,pursuant to Wis. Stat. § 75.106, as amended, assign St. Croix County's
161 right to take judgment against the subject property,provided that the PACE lender
162 and St. Croix County fully comply with all provisions of Wis. Stat. § 75.106, as
163 amended, concerning the subject property and the PACE lender agrees to pay the
164 amounts required by Wis. Stat. § 75.36(3)(a)1 and lm, as amended.
165
166 92.11 SALE OF FORECLOSED PROPERTY. If St. Croix County prevails in an in rem
167 property tax foreclosure action against a subject property, St. Croix County shall diligently
168 proceed to sell the subject property pursuant to the procedures set forth in Wis. Stat. § 75.69, as
169 amended.
170
171 92.12 DISTRIBUTION OF FORECLOSURE PROCEEDS. The St. Croix County treasurer
172 shall follow the procedures set forth in Wis. Stat. § 75.36, as amended, to distribute the proceeds
173 from the sale of a subject property.
174
175 Section 2. This Ordinance shall take effect the day after passage and publication as required by
176 law. (This section shall not be codified)
Legal—Fiscal—Administrative Approvals:
Legal Note:
Fiscal Impact: No Financial Impact
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04/19/17 Enacted
04/19/17 Administration Committee RECOMMENDED
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RESULT: RECOMMENDED [UNANIMOUS]
MOVER: Ron Kiesler, Supervisor
SECONDER: Jill Ann Berke, Vice Chair
AYES: Sjoberg, Bergren, Berke, Kiesler, Leibfried
Vote Confirmation.
Roy S1o1ae;g', uperui'sor 4/74/2017
SL Croix County Board of Supervisors Action:
Roll Call -Vote Requirement— Majority of Supervisors Present
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RESULT: ENACTED [UNANIMOUS]
MOVER: Roy Sjoberg, Supervisor
SECONDER: Dave Ostness, Vice Chair
AYES: Sicard, Ring, Babbitt, Coulter, Sjoberg, Long, Nelson, Berke, Ostness, Larson,
Hansen, Kiesler, Brinkman, Peterson, Anderson, Achterhof, Leibfried, Peavey
ABSENT: Laurie Bergren
This Ordinance was ENACTED by the St. Croix County Board of Supervisors on May 2, 2017
Cindy Campbell, County Clerk