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HomeMy WebLinkAboutOrdinance 049-18Davton Legal Blank. Inc. Ordinance No. 49-18 RECORD OF ORDINANCES Form No. 30043 Passed , 20. AN ORDINANCE DETERMINING TO PROCEED WITH THE ACQUISITION, CONSTRUCTION, AND IMPROVEMENT OF CERYAIN PUBLIC IMPROVEMENTS IN THE CITY OF DUBLIN, OHIO IN COOPERATION WITH THE COLUMBUS REGIONAL ENERGY SPECIAL IMPROVEMENT DISTRICT, AND DECLARING AN EMERGENCY WHEREAS, the Council ("Council's of the City of Dublin, Ohio (the "City'? duly adopted Resolution No. 39-18 on .July 2, 2018 (the "Resolution of Necessity"), (i) declaring the necessity of acquiring, constructing, and improving energy efficiency improvements, including, without limitation, high -efficiency LED lighting upgrades, HVAC and DDC control upgrades, and related improvements (the "Project," as more fully described in the Petition referenced in this Ordinance) located on real property owned by Omni Blazer, LLC (the "Owner's at 4860 through 5000 Blazer Parkway 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 $1,345,914.48, 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's 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 July 2, 2018, 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. N W, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, of the elected members concurring that: Section 1. Each capitalized term not othE,rwise 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 $1,345,914.48 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 SpElcial 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 Columbus -Franklin County Finance Authority as its Davton LeLyal Blank. Inc. Ordinance No. 49-18 RECORD OF ORDINANCES Form No. 30043 Passed Page 2 of 4 20 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 all 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 2018 for collection in 2019 and shall continue through tax year 2034 for collection in 2035; 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 2019, 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 121.2,2:. 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 necessary for the immiate preservation of the public peace, health, safety, or welfare pf the City and for the her reason that this Ordinance is required to be immediately effe `tuiv ' in order to facilitat e construction of the Project; wherefore, this Ordinance shall be fn f II force and effect Jrr)m ed i ate ly upon its passage. f -.:11 Malyor —Presiding Officer est: Clerk of Council Passed: ;�r7 , 2018 Effective: , 2018 The undersigned Clerk of Council hereby certifies that the foregoing is a true copy of nce No. 49-18 duly adopted by the Council of the City of Dublin, Ohio on = Aq- _,a 0 1 V _-, and that a true copy of such Ordinance was certified to the County Abdito� of Franklinw County, Ohio within 15 days after its passage. 0'400-0- ff�' lu 11111liq 1171111 111 1111111qi �� 141,102 11211i'1111 I - 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. 49-18 duly adopted by the Council of the City of Dublin, Ohio on August 27, 2018, 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 , 2018. WITNESS my hand and official seal at Columbus, Ohio on , 2018. Auditor [SEAL] Franklin County, Ohio Ord 49-18 Cid of Dublin office of the City Manager 5200 Emerald Parkway ® Dublin, OH 43017-1090 Phone, 614-410-4400 s Fax; 614-410-4490 —Memo To: Members of Dublin City Council i From; Dana L, McDaniel, City Mana Date; August 9, 2018 Initiated By, Colleen Gilger, Director of Economic Development Jeremiah Gracia, Economic Development Administrator Rachel Ray, Economic Development Administrator Re., Ordinances 49-18, 50-18 and 51-18 - RE: Property Assessed Clean Energy (PACE) Special Improvement for 4860-5000 Blazer Parkway 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 as supported by the Dublin Corporate Area Plan, One particular tool the economic development team has brought to 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 little to 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 4860-5000 Blazer Parkway is requesting the use of PACE Financing for its energy efficiency improvement project totaling $816,630, A signed PACE Project Development Memo re, Ord, 49-18, 50-18 and 51-18 m PACE for 4860.5000 Blazer Parkway August 9, 2018 Page 2 of 3 Agreement has been executed between the owner, Omni Blazer LLC, and the project manager, Plug Smart, The scope of work includes LED lighting upgrades, HVAC Upgrades, and other temperature control upgrades. In order to satisfy this request, the City of Dublin must pass a series of Resolutions and Ordinances, These Resolutions and Ordinances allow building ownership 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, The City simply serves as a pass through entity for the project financing, Therefore, these Ordinances set for reading on August 13 and 27 are titled as emergencies to allow for closing to take place following the second reading on August 27, 2018, 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. Recommendation Staff recommends Council passage of Ordinance Nos, 49-18, 50.18 and 51-18 by emergency at the second reading/public hearing on August 27, 2018. Please feel free to contact Jeremiah Gracia or Rachel Ray with any questions, Memo re, Ord, 49.18, 50.18 at 5Id8 • PACE for 4860.5000 Blazer Parkway August 9, 2018 Page 3 of 3 111 WHAT IS PACE? Property Assessed Clean Energy IPACEI k a hnancmq meahannm That mabits Irnvcasl long-term hridim for energy elhciemy, ancwable energy and water Conservation prge(t5 call hmmcing is repaid as anasseunenl on the propnlys regular lax NII, and n processed the same way as other local public benehl assessments (sidewalks, sewersl It been la dxadeL Depending on local legislation PACE can be used Ci commeroal, nonprohtand residential preperhK HOW DOES IT WORK? PACT is anadmalinioatiwe, but programs areeslablshed Iocallyand taiks red tomeet regional market needs, Slate IerpsWuon a passed that althoriaes municipal to tell PACE programs, and local grnernments have dewbped a variety of Irrogmm models that have been lucCesslully Implemented. Regardless of model, there are several keystones that hold uxfor every PACE until PACE is votumaryfor all parties uwolwd, PACE can Cavin ll a prgafs hard and soft costs. tong financing terms up to 20 years (an be combined with utility, tical and federal Intel programs, Energy projects are pnnwnently affixed to a properly. The PACEasseument is fr edwith the local nwnklpalhyasa lbnonthepmpeny, WHY IS IT SO POPULAR? Property owNrs love PACE because they can rued pmM[Is with no oW-abpaMet costs .SilPACE financing termsintend tol0years, IfspossibletouMntaEedeep, cnnphehensfve se la (hal haw meaningful energy savings and a spnlhaanl impact on the bottom IIx, The annual energy s usrgs for a PACE pho ect usually exceedstheannual assessment payment sopmpertyownes5are cast, flow Costive immedlatehy. Thal means there are increased dollars flat Can be spent on other capital pralects, budgetary expenses, or budness expamlon. Localgovemmenls love PACE because ll'sm Ctonen idhwiopment no auve that lowers the cost of doing business in Iheh canmumtyit encourages new business owners to Invest in the area, and Coates jobs using the dotal worlrgm. PAC[ projects also have a pool impact of all quality, crealing healthel more livabee nctghItAounit HOW CAN I GET PACE? wwA..PAC[Natimnus has all llw loads and resources you Ned to qct staAed with PACE, Check to see if your Rate has passed a PACE slalule, and it your area has an a If I Ve program d AOL Contact u s Wool Ouul t here er a local initial I vein dew lot and we may be All to put you in hooch with a waking coaltlon. We look forward to headnq from you' BENEFITS OF PACE