HomeMy WebLinkAboutOrdinance 060-17RECORD OF ORDINANCES
Dayton Legal Blank, Inc.
Ordinance No.
60 -17 (Amended)
Form No. 30043
Passed , 20
AN ORDINANCE DETERMINING TO PROCEED WITH THE
ACQUISITION, CONSTRUCTION, AND IMPROVEMENT OF
CERTAIN PUBLIC IMPROVEMENTS IN THE CITY OF
DUBLIN, OHIO IN COOPERATION WITH THE COLUMBUS
REGIONAL ENERGY SPECIAL IMPROVEMENT DISTRICT
WHEREAS, the Council ( "Council' } of the City of Dublin, Ohio (the "City'? duly adopted
Resolution No. 61 -17 on August 14, 2017 (the 'Resolution of Necessity', (i) declaring the
necessity of acquiring, constructing, and improving energy efficiency improvements,
including, without limitation, interior high- efficiency LED lighting upgrades, exterior high -
efficiency LED lighting upgrades, DDC controls, boiler upgrades, variable speed pumping,
and related improvements (the "Project," as more fully described in the Petition referenced
in this Ordinance) located on real property owned by Frantz Investments, LLB: (the
"Owner"? at 5500 Frantz Road within the City (the "Property ", as more fully described in
Exhibit A to the Petition); (ii) providing for the acquisition, construction, and improvement
of the Project by the Owner, as set forth in the Owner's Petition for Special Assessments
for Special Energy Improvement Projects and Affidavit (the "Petition'?, including by levying
and collecting special assessments to be assessed upon the Property (the "Special
Assessments' in an amount sufficient to pay the costs of the Project, which is estimated
to be $792,079.67, including other related costs of financing the Project, which may
include, without limitation, the payment of principal of and interest on nonprofit corporate
obligations issued to pay the costs of the Project and other interest, financing, credit
enhancement, and issuance expenses and ongoing trustee fees and Columbus Regional
Energy Special Improvement District ( "District'? administrative fees and expenses; and (iii)
determining that the Project will be treated as a special energy improvement project to be
undertaken cooperatively by the City and the District; and
WHEREAS, the claims for damages alleged to result from, and objections to, the Project
have been waived by one hundred percent (100 %). of the Owners, and following notice of
the adoption of the Resolution of Necessity which was personally delivered by the Clerk of
Council to the Owner on August 14, 2017, no claims for damages alleged to result from, or
objections to, the Project have been filed within the times prescribed by Sections 727.15
and 727.18 of the Ohio Revised Code;
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of
Ohio, r7 of the elected members concurring that:
Section 1. Each capitalized term not otherwise defined in this Ordinance or by reference
to another document shall have the meaning assigned to it in the Petition.
Section 2. This Council declares that its intention is to proceed or to cooperate with the
District to proceed with the acquisition, construction, and improvement of the Project
described in the Petition and the Resolution of Necessity. The Project shall be made in
accordance with the provisions of the Resolution of Necessity and with the plans,
specifications, profiles, and estimates of cost previously approved and now on file with the
Director of Finance and the Clerk of Council.
Section 3. The Special Assessments to pay costs of the Project, which are estimated to
be $792,079.67, including any and all architectural, engineering, legal, insurance,
consulting, energy auditing, planning, acquisition, installation, construction, surveying,
testing, and inspection costs; the amount of any damages resulting from the Project and
the interest on such damages; the costs incurred in connection with the preparation, levy
and collection of the special assessments; the cost of purchasing and otherwise acquiring
any real estate or interests in real estate; expenses of legal services; costs of labor and
material; trustee fees and other financing costs incurred in connection with the issuance,
sale, and servicing of securities, nonprofit corporate obligations, or other obligations issued
or incurred to provide a loan or to secure an advance of funds to the Owner or otherwise
to pay costs of the Project in anticipation of the receipt of the Special Assessments,
capitalized interest on, and financing reserve funds for, such securities, nonprofit corporate
obligations, or other obligations so issued or incurred, including any credit enhancement
fees, trustee fees, program administration fees, financing servicing fees, and District
administrative fees and expenses; an amount to reflect interest on unpaid Special
Assessments which shall be treated as part of the cost of the Project for which the Special
Assessments are made at an interest rate which shall be determined by the District or the
RECORD OF ORDINANCES
Dayton Legal Blank, Inc.
Form No. 30043
Ordinance No. 60 -17 (Amended) Passed Page 2 of 2 2
. 0
Columbus - Franklin County Finance Authority as its conduit financing entity to be
substantially equivalent to the fair market rate that would have been borne by notes or
bonds if notes or bonds had been issued by the District, the Columbus- Franklin County
Finance Authority, or another issuer of notes or bonds to pay the costs of the Project;
together with a l l other necessary expenditures, shall be assessed against the Property in
the manner and in the number of semi - annual installments provided in the Petition and the
Resolution of Necessity. Each semi - annual Special Assessment payment represents the
payment of a portion of any principal repayment and interest and administrative fees
payable with respect to the Project. The Special Assessments shall be assessed against
the Property commencing in tax year 2017 for collection in 2018 and shall continue through
tax year 2031 for collection in 2032; provided, however, if the proceedings relating to the
Special Assessments are completed at such time that the County Auditor of Franklin County,
Ohio determines that collections shall not commence in 2018, then the collection schedule
may be deferred by one year. In addition to the Special Assessments, the County Auditor
of Franklin County, Ohio may impose a special assessment collection fee with respect to
each semi - annual payment, which amount, if imposed, will be added to the Special
Assessments by the County Auditor of Franklin County, Ohio.
Section 4. The estimated Special Assessments for costs of the Project prepared and filed
in the office of the Clerk of Council and in the office of the Director of Finance, in accordance
with the Resolution of Necessity, are adopted.
Section 5. In compliance with Ohio Revised Code Section 319.61, the Clerk of Council is
directed to deliver a certified copy of this Ordinance to the County Auditor of Franklin
County, Ohio within 15 days after the date of its passage.
Section 6. All contracts for the construction of the Project will be let in accordance with
the Petition, the Program Plan, and the Supplemental Plan, and the costs of the Project
shall be financed as provided in the Resolution of Necessity.
Section 7. Council finds and determines that all formal actions of this Council concerning
and relating to the passage of this Ordinance were taken in an open meeting of this Council,
and that all deliberations of this Council and of any of its committees that resulted in such
formal action, were in meetings open to the public, in compliance with all legal
requirements including Ohio Revised Code Section 121.22.
Section 8. Under Section 4.04 of the Charter of the City, this Ordinance is an Ordinance
for improvements petitioned for by owners of the requisite majority (100 %) of the front
footage or the area of the property benefited and to be assessed, and declared to be an
emergency measure necess ry for the immediate preservation of the public peace, health,
safF'dinance r welfare of the , and for the further reason that this Ordinance is required to
be ediately effecti in order to facilitate the construction of the Project; wherefore,
thi shall full force and effect immediately upon its passage.
Si4i ied :
ayor — Pr#sidin(j QfficeF
Attest:
Clerk of Council
Passed: , 2017
Effective: , 2017
Ordinance 60-17Amended
To: Members of Dublin City Council
From,n Dana L. McDaniel City Manage
Date.* September 7, 2017
Initiated By: Colleen Gilger,, Director of Economic Development
Jeremiah Gracia, Economic Development Administrator
r�e.,, Ordinances 60-17, 61-17 and 62-17 -- for Property Assessed Clean Energy (PACE-)
Special Improvement for 5500 Frantz Road — Scioto Corporate Center
The Ordinance titles and minor language modifications have been updated to reflect the same and
presented for review and approval.
4*1
Staff recommends Council passage of Ordinances 60-17,, 61-17, and 62-17 as emergency on
September 11, 2017. Please feel free to contact Colleen Gilger or Jeremiah Gracia with question
Memo re. Ord. 60-17, 61-17 and 62-17 - PACE for 5500 Frantz Road
September 7, 2017
Page 2 of 2
01I
WHAT IS PACE?
Property Assessed Clean Energy (PACE) is a financing mechanism that enables
low-cost, long-term funding for energy efficiency, renewable energy and water
conservation projects- PACE financing is repaid as an assessment on the propetty"s
regular tax bill, and is processed the same way as other local public benefit
assessments (sidewalks, sewers) have been for decades. Depending on local
legislation, PACE can be used for commercial, nonprofit and residential pf oper6m.
HOW DOES IT WORK?
PACE is a national initiative-, but programs are established locally and tailored to meet
regional market needs. State legislation -15 passed Itat authorizes municipalities
to establish PACE programs, and local governments have developed a variety of
program models that have been Successfully implemented. Regardless of modal,
there are several keystones that hold true for every PACE program.
• PACE is voluntary for all pat-ties involved.
PACE can cower 100% of a project's hard and soft costs.
Long financing terms up to 20 years.
Can be combined with utility, local and federal incentive programs-
Erwrgy projects are permanently affixed to a property.
The PACE assessment is filed with the local municipality as a lien on the property.
WHY IS IT SO POPULAR?
Property owners love PACE because they can fund projects with no out-of-pocket
costs. Since PACE financing terms extend to 20 years, it's possible to undertake deep,
comprehensive retrofits that have meaningful energy savings and a significant
impact on the bottom line. The annual energy savings for a PACE project usually
exceeds the annual assessment payment, so property owners are cash now positive
immediately. That means there are increased dollars that can be spent on other
capital projects, budgetary -expenses, or business expansion_
Local governments love PACE because it's an Economic Development initiative that
lowers the cost of doing business in their community. It encourages new business
owners to invest in the area, and creates jobs using the local workforce. PACE
projects also have a positive impact of air quality, creating healthier, more livable
neighborhoods.
HOW CAN I GET PACE?
www.PACENation.us has all the tools and resources you need to get started with
PACE Check to see if your state has passed a PACE statute, and if your area has an
active program. It not, contact us to find out if there is a local initiative in development
and we may be able to put you in touch with a working coalition. We look forward
to hearing from you!
BENEFITS OF PACE
PACENation
PACENation li the rii:,Lmial,
nonprofit advocate tot PAL E
finanang. We W'ovwde leadership,
data• support and resources for-
the 9,towin-9 nwk et place..
www.paceftalporws
info@ pacenow.mg
I
11,, of he Ci Maager
City of Dublin 5200 Emertald Parkty way o n Dublin, OH 43017-1090
Phone: 614-410-4400 • Fax: 614-410-4490
To: Members of Dublin City Council
From: Dana L. McDaniel, City Man,
Date: August 24, 2017
Initiated By: Colleen Gilger, Director of Economic Development
Jeremiah Gracia, Economic Development Administrator
Re: Ordinances for Property Assessed Clean Energy (PACE) Special Improvement
for 5500 Frantz Road — Scioto Corporate Center (Ordinances 60-17, 61-17
and 62-17)
Background
The City of Dublin is focused on setting appropriate conditions to encourage investment and
economic development. City Council continues to support our strategies and tactics to ensure
Dublin's office space remains competitive in the market. One particular tool the economic
development team has brought to our existing building owners' attention is the use a favorable
financing tool for major building energy efficiency improvements.
Property Assessed Clean Energy (PACE) programs represent a great mechanism available for
financing energy efficiency and renewable energy improvement projects. PACE-enabling legislation
is active in 33 states plus the District of Columbia, and PACE programs are now active (launched
and operating) in 19 states plus DC. PACE allows qualifying energy improvements to be financed
through assessments on a property owner's real estate tax bill. A summary of PACE is provided as
an attachment to this memo.
PACE special assessments are used to secure local government bonds issued to fund the
improvements without requiring the borrower or the sponsoring local government to pledge its
credit. By allowing participating property owners to pay for energy improvements to their
properties via a bond issue tied to a special assessment on their property tax bill, PACE financing
enables property owners to reduce energy costs with no upfront investment.
Financing for PACE eligible projects in Central Ohio is provided by the Columbus-Franklin County
Finance Authority (Finance Authority). The Finance Authority established the Columbus Regional
Special Improvement District that allows for additional properties within the City of Columbus, Ohio
and within any municipal corporation or township that is adjacent to any other municipal
corporation or township to opt-in to the District. Projects between $200,000 - $6,000,000 may be
financed through the Finance Authority's bond fund. Eligible uses of funds include LED lighting,
energy management and controls that includes, HVAC and boiler replacement, building envelope,
and other improvements that result in bottom line operation savings for building owners and
tenants.
The building ownership at 5500 Frantz Road is requesting the use of PACE Financing for its energy
efficiency improvement project totaling $515,883. A signed PACE Project Development Agreement
Memo re. PACE for 5500 Frantz Road (Ordinances 60 -17, 61 -17 and 62-17)
August 24, 2017
Page 2of4
has been executed between the owner, Frantz Investments, LLC, and the project manager, Plug
Smart. The scope of work includes interior and exterior LED lighting upgrades, boiler replacement,
and other temperature control upgrades. In order to satisfy this request, the City of Dublin must
consider a series of Resolutions and Ordinances at the August 14 and August 28 Council meetings
to allow building ownership to petition to opt -in to the Regional Special Improvement District. The
City has no financial obligations with the establishment of a Special Improvement District for this
project.
Below is a summary of the current and future resolutions, ordinances, and special assessments
City Council will review at the August 14 and August 28 Council meetings. Timing is of the
essence for these documents so that the building owner may schedule a closing and complete the
necessary energy improvements to their office building.
August 14 Council Meeting:
1. A RESOLUTION APPROVING THE PETITION FOR SPECIAL ASSESSMENTS FOR
SPECIAL ENERGY IMPROVEMENT PROJECTS UNDER OHIO REVISED CODE
CHAPTER 1710 (5500 FRANTZ ROAD PROJECT)
2. A RESOLUTION APPROVING THE NECESSITY OF ACQUIRING, CONSTRUCTING,
AND IMPROVING CERTAIN PUBLIC IMPROVEMENTS IN THE CITY OF DUBLIN,
OHIO IN COOPERATION WITH THE COLUMBUS REGIONAL ENERGY
SPECIALIMPROVEMENT DISTRICT (5500 FRANTZ ROAD PROJECT)
August 28 Council Meeting:
1. AN ORDINANCE DETERMINING TO PROCEED WITH THE ACQUISITION,
CONSTRUCTION, AND IMPROVEMENT OF CERTAIN PUBLIC IMPROVEMENTS IN
THE CITY OF DUBLIN, OHIO IN COOPERATION WITH THE COLUMBUS REGIONAL
ENERGY SPECIAL IMPROVEMENT DISTRICT
2. AN ORDINANCE LEVYING SPECIAL ASSESSMENTS FOR THE PURPOSE OF
ACQUIRING, CONSTRUCTING, AND IMPROVING CERTAIN PUBLIC IMPROVEMENTS
IN THE CITY OF DUBLIN, OHIO IN COOPERATION WITH THE COLUMBUS
REGIONAL ENERGY SPECIAL IMPROVEMENT DISTRICT
3. AN ORDINANCE AUTHORIZING AND APPROVING AN ENERGY PROJECT
COOPERATIVE AGREEMENT BY AND BETWEEN THE CITY OF DUBLIN, OHIO, THE
COLUMBUS REGIONAL ENERGY SPECIAL IMPROVEMENT DISTRICT, FRANTZ
INVESTMENTS, LLC, AND THE COLUMBUS - FRANKLIN COUNTY FINANCE
AUTHORITY, A SPECIAL ASSESSMENT AGREEMENT BY AND BETWEEN THE CITY
OF DUBLIN, OHIO, THE COUNTY TREASURER OF FRANKLIN COUNTY, OHIO, THE
COLUMBUS REGIONAL ENERGY SPECIAL IMPROVEMENT DISTRICT, AND FRANTZ
INVESTMENTS, LLC, AND RELATED AGREEMENTS, ALL OF WHICH PROVIDE FOR
Memo re, PACE for 5500 Frantz Road (Ordinances 60-17, 61-17 and 62-17)
August 24, 2017
Page 3 of 4
THE FINANCING OF SPECIAL ENERGY IMPROVEMENTS PROJECTS (5500 FRANTZ
ROAD PROJECT)
a. Energy Project Cooperative Agreement
b. Special Assessment Agreement
I
Staff recommends Council passage of Ordinance 60-17, Ordinance 61-17, and Ordinance 62-17 at
their second reading/public hearing September 11, 2017. Staff also will recommend that Council
pass these ordinances by emergency (waiving the thirty-day waiting period) at the second reading
on September 11, 2017, Please also feel free to contact Colleen Gilger (410-4615) or Jeremiah
Gracia (410-4655) with questions.
Memo re. PACE for 5500 Frantz Road (Ordinances 60-17, 61-17 and 62-17)
August 24, 2017
Page 4 of 4
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CERTIFICATE
The undersigned Clerk of Council hereby certifies that the foregoing is a true copy of
Ordinance No. 60 -17 (Amended), duly adopted by the Council of the City of Dublin, Ohio on
2017, and that a true copy of such Ordinance was certified to the County
Auditor of Franklin County, Ohio within 15 days after its passage.
Clerk of the Council
City of Dublin, Ohio
RECEIPT OF COUNTY AUDITOR FOR
LEGISLATION DETERMINING TO
PROCEED WITH ACQUISITION, CONSTRUCTION,
AND IMPROVEMENT OF CERTAIN PUBLIC
IMPROVEMENTS IN THE CITY OF DUBLIN, OHIO
IN COOPERATION WITH THE COLUMBUS REGIONAL
ENERGY SPECIAL IMPROVEMENT DISTRICT
I, Clarence E. Mingo II, the duly elected, qualified, and acting Auditor in and for
Franklin County, Ohio hereby certify that a certified copy of Ordinance No. 60 -17
(Amended), duly adopted by the Council of the City of Dublin, Ohio on ,
determining to proceed with the acquisition, construction, and improvement of certain public
improvements in the City of Dublin, Ohio in cooperation with the Columbus Regional Energy
Special Improvement District, was filed in this office on , 2017.
WITNESS my hand and official seal at Columbus, Ohio on , 2017.
Auditor
[SEAL] Franklin County, Ohio