BELLEFONTE — Centre County approved its first project under the Commercial Property Assessed Clean Energy (C-PACE) program, clearing the way for nearly $2 million in financing to support energy-efficient features at the new Home2 Suites Hotel in College Township.

Approval of the Statement of Levy & Lien Assessment Agreement marks a milestone for Centre County’s participation in the Pennsylvania C-PACE program, which allows commercial property owners to access long-term, low-interest loans for clean energy and clean water projects that are repaid as property tax to benefit the community.

Shiloh Road Hotel, LCC’s $20 million development project at 1705 E. Trout Road, State College, will use $1.6 million in C-PACE financing from private capital provider Pace Equity, LLC, to add energy-saving features throughout the 65,000-square-foot, 115 guest-room property.

“It is new construction, so they are putting in eligible measures, which include the building envelope, electrical and lighting, HVAC and plumbing,” said Elaine Evosevic-Lozada, leader of the Sustainable Energy Fund’s commercial clean energy program. “Those are all coming in better than code to be eligible for C-PACE.”

To get financing through the C-PACE program, property owners must first develop a project and determine its scope, then identify a private capital provider, much like any other commercial loan. Then they may submit an application through the Sustainable Energy Fund’s portal, which checks with the county to ensure the project is eligible for C-PACE and complies with program requirements. The county then gives final approval before the Sustainable Energy Fund closes on the project.

With the commissioner’s unanimous approval Tuesday, the Home2 Suites Hotel is now slated to become the county’s first project to close financing through C-PACE when it does so in September.

The Centre County commissioners first adopted the C-PACE program on July 28, 2020, before expanding it in August 2022, following a state expansion which added multifamily housing, indoor air quality and resiliency measures to the list of eligible projects.

Evosevic-Lozada noted that the interest rate for the financing has not yet been determined, as it is set shortly before closing, which is expected next month. Figures on the project’s anticipated savings are also still forthcoming.

“When the project closes, we will have final numbers for what will be saved both from the environment and from a cost perspective,” she said.

Next, the Home2 Suites Hotel project will go before the county treasurer, Assessment Office and Tax Claim Office to coordinate their roles, since the project is tied to the property’s tax parcel.

Reacting to the approval, Commissioner Mark Higgins praised the C-PACE program: “It’s a great program that allows property owners to invest money in energy efficiency and not have to wait 40 years for that to be paid back in dribbles. You can get it right up front to help develop the project.”

Commissioner Amber Concepcion also expressed her excitement that the county is seeing a project move forward under the program.

“I hope that we can get the word out so that more projects can take advantage of this funding, because I think it’s a good opportunity to get financing that helps you provide for those energy efficiency features that will save money over the long term,” she said.

Developers interested in the Centre County’s C-PACE program can find information, including project guidelines and application materials, at www.pacpacecounties.org/county/centre-county/