III.1. Update on Green Infrastructure Special Assessment Policy; Larson
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Mikala Larson, Sustainability Specialist
Date: October 15, 2024
Subject: Green Infrastructure Special Assessment Policy
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PURPOSE
To provide an update on an action step from the Strategic Plan and seek City Council
direction regarding developing a green infrastructure special assessment. No action is
needed at this time, but staff is seeking Council guidance.
INFORMATION
Developing a green infrastructure special assessment policy is an identified action step
in the 2024 Strategic Plan. A green infrastructure special assessment policy would
create a new financing program for voluntary energy improvements at existing
commercial and multifamily buildings in Hopkins.
Minnesota State Statute 429.021 allows the City to establish a policy for assessing the
cost of energy-related improvements to private property. The City of Hopkins can
consider adopting a green infrastructure special assessment policy to create this option
for property owners.
Staff anticipates that special assessments will address energy improvement projects
between $10,000 and $60,000; above that amount, funding mechanisms like Property
Assessed Clean Energy (PACE) financing are often available, and below that amount,
funding mechanisms including Center for Energy and Environment loans and Hopkins
Climate Solutions Fund rebates are often available. The new program would fill a gap in
financing options for projects that fall within this range. Per Minnesota State Statute,
eligible projects that may be specially assessed could be improvements to heating,
ventilation, and air conditioning equipment and building envelope and for the installation
of renewable energy systems.
Any excess funds at year end from the Hopkins Climate Solutions Fund may be utilized
to establish a green infrastructure special assessment program. Although the Hopkins
Climate Solutions Fund has seen a large increase in applications in 2024, depending on
public interest, staff anticipates there may be excess program funds.
SUPPORTING INFORMATION
• Minnesota State Statute 429.021 – available upon request
Engineering
FUTURE ACTION
Staff is seeking direction from City Council on how to proceed with the development of a
green infrastructure special assessment policy.