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HomeMy WebLinkAboutResolution 037-18RECORD OF RESOLUTIONS Dayton Legal Blank, Inc., Form No. 30045 Resolution No. _ 37-18 Passed _ ___920 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 SPECIAL IMPROVEMENT DISTRICT (525 METRO PLACE NORTH PROJECT) WHEREAS, Ohio Revised Code Section 1710.06(C) provides that a political subdivision which has approved a petition for special assessments for public improvements in an energy special improvement district and a plan pursuant to Ohio Revised Code Sections 1710.02(F) and 1710.06 shall levy the requested special assessments pursuant to Ohio Revised Code Chapter 727; and WHEREAS, the Columbus Regional Energy Special Improvement District (the "District's was created under Ohio Revised Code Chapters 1702 and 1710 as an energy special improvement district and established pursuant to Resolution No. 0261X-2015 of the Council of the City of Columbus, Ohio approved on November 23, 2015 (the "Creation Resolution'; and WHEREAS, pursuant to the Creation Resolution, the Columbus Regional Energy Special Improvement District Program Plan (as amended and supplemented from time to time, the "Program Plan's was adopted as a plan for public improvements and public services under Ohio Revised Code Section 1710.02(F), which plan allows for additional properties within the City of Columbus, Ohio and within any municipal corporation or township which is adjacent to any other municipal corporation or township in which a portion of the District's territory is located to be added to the territory of the District; and WHEREAS, OH15 Dublin LLC (the "Owner"} petitioned to add property owned by it to the District pursuant to Ohio Revised Code Chapter 1710 in part in order to finance the costs of a special energy improvement project to be constructed on such property, which special energy improvement project consists of acquiring, constructing, equipping, improving, and installing energy efficiency improvements on its real property, including, without limitation, high -efficiency LED lighting upgrades, a high -efficiency natural gas boiler, a high -efficiency replacement cooling tower, variable flow upgrades, MUA unit upgrades, elevator upgrades, tridium controls, and related improvements (the "Project'7; and WHEREAS, the City Council ("Council's of the City of Dublin, Ohio (the "City's has, by Resolution No. 36-18, adopted on August 13, 2018 approved the Petition for Special Assessments for Special Energy Improvement Projects and Affidavit (the "Petition', together with the Supplement to Plan for 525 Metro Place North, Dublin, Ohio Project (the "Supplemental Plan") in accordance with Ohio Revised Code Section 1710.02; and WHEREAS, the Petition, which is on fiIE.1 with the Clerk of Council, has been signed by the Owner, as the owner of one hundred percent (100%) of the real property affected by the Petition (as Further described in Exhibit A to the Petition, the "Property', and proposes the necessity of acquiring, constructing, and improving the Project and financing the Project through the cooperation of the District; and WHEREAS, by the Petition, the Owner requests that the Project be paid for by special assessments assessed upon the Property (the "Special Assessments' in an amount sufficient to pay the costs of the Project, which is estimated to be $1,350,413.02, including the costs identified in Section 2 of this Resolution, and requests that the Project be undertaken cooperatively by the City, the District, and such other parties as the City may deem necessary or appropriate; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Dublin, State of Ohio, 17 of the elected members concurring that: Section 1. Each capitalized term not otherwise defined in this Resolution or by reference to another' document shall have the meaning assigned to it in the Petition. RECORD OF RESOLUTIONS Dayton Legal Blank, Inc., Form No. 30045 37-18 Resolution No. Page 2 of 4 Passed .20 Section 2. This Council declares necessary, and a vital and essential public purpose of the City, to improve the Property, which is located at 525 Metro Place North in the City, by providing for the acquisition, construction, and improvement of the Project by the Owner, as set forth in the Petition and the Supplemental Plan, and providing for the payment of the costs of the Project, 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 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 all other necessary expenditures, all as more fully described in the Petition, the Supplemental Plan, and profiles, specifications, and estimates of cost of the Project, all of which are on file with the Director of Finance and open to the inspection of all persons interested. Section 3. This Council determines that the Project's elements are so situated in relation to each other that in order to complete the acquisition and improvement of the Project's elements in the most practical and economical manner, they should be acquired and improved at the same time, with the same kind of materials, and in the same manner; and that the Project's elements shall be treated as a single improvement, pursuant to Ohio Revised Code Section 727.09, and the Project's elements shall be treated as a joint improvement to be undertaken cooperatively by the City and the District pursuant to Ohio Revised Code Section 9.482 and Ohio Revised Code Chapter 1710. Section 4. The plans and specifications and total cost of the Project now on file in the office of the Clerk of Council are approved, subject to changes as permitted by Ohio Revised Code Chapter 727. The Project shall be made in accordance with the plans, specifications, profiles, and estimate of costs for the Project. Section 5. This Council determines and declares that the Project is an essential and vital public, governmental purpose of the City as a Special Energy Improvement Project, as defined in Ohio Revised Code Section 1710.01(I); and that in order to fulfill that essential and vital public purpose of the City, it is necessary and proper to provide, in cooperation with the District, for the acquisition, construction, and improvement of the Project in the manner contemplated by the Petition and the Supplemental Plan. This Council determines and declares that the Project is conducive to the public peace, health, safety and welfare of the City and the inhabitants of the City. Section 6. Pursuant to and subject to the provisions of a valid Petition signed by the owners of one hundred percent (100©/0) of the Property, the entire cost of the Project shall be paid by the Special Assessments levied against the Property, which is the benefited property. The provisions of the Petition and the Supplemental Plan are ratified, adopted, approved and incorporated into this Resolution as if set forth in full in this Resolution. The portion of the costs of the Project allocable to the City will be zero percent (0%). The City does not intend to issue securities in anticipation of the levy or the collection of the Special Assessments. RECORD OF RESOLUTIONS Dayton Legal Blank, Inc., Form No. 30045 Resolution No. 37-18 Page 3 of 4 Passed .20 Section 7. The method of levying the Special Assessments shall be in proportion to the benefits received, allocated among the parcels constituting the Property as set forth in the Petition and the Supplemental Plan. Section 8. The lots or parcels of land to be assessed for the Project shall be the Property, described in Exhibit A to the Petition, all of which lots and lands are determined to be specially benefited by the Project. Section 9. The Special Assessments shall be levied and paid in 22 semi-annual installments pursuant to the list of estimated Special Assessments set forth in the Petition and the Supplemental Plan (which list is incorporated herein by reference), and the Owner has waived its option to pay the Special Assessment in cash within 30 days after the first publication of the notice of -the assessing ordinance. The aggregate amount of Special Assessments estimated to be necessary to pay the costs of the Project is $1,350,413.02. Each semi-annual Special Assessment payment represents payment of a portion of the principal of and interest on obligations issued or incurred to pay the costs of the Project and of administrative expenses. The interest portion of the Special Assessments, together with amounts used to pay administrative expenses, shall be treated as part of the cost of the Project for which the Special Assessments are made at an interest rage which shall be determined by the District to be substantially equivalent to the fair market rate that would have been borne by notes or bonds had notes or bonds been issued by the City or another issuer of notes or bonds to pay the costs of the Project. 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 will be added to the Special Assessments by the County Auditor of Franklin County, Ohio. Section 10. The Director of Finance or the Director of Finance"s designee is authorized and directed to prepare and file in the office of the Clerk of Council the estimated Special Assessments for the cost of the Project in accordance with the method of assessment set forth in the Petition, the Supplemental Plan, and this Resolution, showing the amount of the assessment against each lot or parcel of land to be assessed. Section 11. Notice of the adoption of this Resolution and the filing of the estimated Special Assessments upon the Owner of the Assessed Property as provided in Ohio Revised Code Section 727.13 shall be delivered by the Clerk of Council to the Owner promptly following adoption of this Resolution. Section 12. The Director of Finance or the Director of Finance's designee is authorized, pursuant to Ohio Revised Code Section 727.12, to cause the Special Assessments to be levied and collected at the earliest possible time including, if applicable, prior to the completion of the acquisition and construction of the Project. Section 13. The Special Assessments will be used by the City to pay the costs of the Project in cooperation with the District in any manner, including assigning the Special Assessments actually received by the City to the District or to another party the City deems appropriate, and the Special Assessments are appropriated for such purposes. Section 14. This council accepts and approves the waiver of all further notices, hearings, claims for damages, rights to appeal and other rights of property owners under the law, including but not limited to those specified in the Ohio Constitution, Ohio Revised Code Chapter 727, Ohio Revised Code Chapter 1710, and the Charter of the City of Dublin, Ohio, and consents to the immediate imposition of the Special Assessments upon the Property. This waiver encompasses, but is not limited to, waivers by the Owner of the following rights: (i) The right to notice of the adoption of the Resolution of Necessity under Ohio Revised Code Sections 727.13 and 727.14; RECORD OF RESOLUTIONS Dayton Legal Blank, Inc., Form No. 30045 37-18 Page 4 of 4 Resolution No. Passed , 20 (ii) The right to limit the amount of the Special Assessments under Ohio Revised Code Sections 727.03 and 727.06; (iii) The right to file an objection to the Special Assessments under Ohio Revised Code Section 727.15; (iv) The right to the establishment of, and any proceedings by and any notice from an Assessment Equalization Board under Ohio Revised Code Sections 727.16 and 727.17; (v) The right to file any claim for damages under Ohio Revised Code Sections 727.18 through 727.22 and Ohio Revised Code Section 727.43; (vi) The right to notice that bids or quotations for the Project may exceed estimates by 15%; (vii) The right to seek a deferral of payments of Special Assessments under Ohio Revised Code Section 727.251; (viii) The right to notice of the passage of the assessing Resolution under Ohio Revised Code Section 727.26; and (ix) Any and all procedural defects, errors, or omissions in the Special Assessment process, Section 15. The City is authorized to enter into agreements by and among the City, the District, and such other parties as the City may deem necessary or appropriate in order to provide the Authorized Improvements, and that the City Manager is authorized to execute, on the City's behalf, such agreements. - Section 16. This Council finds and determines that all formal actions of this Council concerning and relating to thepassage of this legislative resolution were adopted in an open meeting of this Counci , and that all deliberations of this Council and any of its committees that resulted i such formal action were in meetings open to the public in co li nce with all legal quirements, including Ohio Revised Code Section 121.22. yor — PrMidinglPlfficer Attest: Clerk of Council Passed: (amu 4 6451- `3 , 2018 Effective !� , 2018 NOTICE TO PROPERTY OWNER OF SPECIAL ASSESSM.E"NTS TO: 014, 15 Dublin LI_.0 You are hereby notified that on the City Council of the City of Dublin,, 2018 1 Ohio, adopted Resolution. No. 37-18 declariQ it necessary, and a vital and essential public purpose of the City,, to improve the Prop erty,which 'I's located at 525 Metro Place North in the City., by iding for the acquisition., con prov struction, and improvement of the Project by the Owner, as set forth in the Petition and the Supplemental Plan, and providing for the payment of the related costs of the Project, all. as more fully described in the Petition,, the Program Plan and the Supplemental Plan, and. the profiles, specifications, and estim-ates of cost of the Project, all of which are on file with the Clerk, - of Council and open to the inspection of all persons 'Interested. All defined terms used herein shall have the meaning set forth in the referenced Resolution. 'I"he Resolution approves the plans, speciffications, prof Ies and estimate of cost for the Prect, I which are now on file in the office of the Clerk of Council of the City, and provides that the entire cost of the PrQJect shall be assessed against the Property. The estimated special assessments f( -.)r the PrQJect. based on the estimate of cost are now on Me in. the office of the Clerk of Council. of th.e City, and are available for inspection by any interested person. O�jection.s to the special assessments or claims for damages must be -filed in writing in the office of the Clerk of Council of the City within two weeks from. the date of completion of the senor cc of this notice. By order of the City Council of the City of Dublin, Ohio. t.3 2018 Dated. - Clerk of Council. City of Dublin, Ohio AOL �1�! Office of the CIty ManagerNamAIM of DtiblYi� 5200 Emerald Parkway *Dublin, OH 43017-1090 AO%L Phone: 614-410-4400 614-410-4490 M M 41 Members of Dublin City Council From:, Dana L. McDaniel, City Mana Date: August 9, 2018 Initiated By: Colleen Gilger, Director of Economic Development Jeremiah Gracia, Economic Development Administrator Re: Res. 36-18 and 37-18 - Resolutions & Petition for Property Assessed Clean Energy (PACE) Special Improvement for 525 Metro Place North 0 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 exisifing building owners" ,2ttention is the use a favorable financing tool for major building energy efficiency improvements. PACE special assessments are used to secure local government bonds issued to fund the V improvements without requiring the borrower or the sponsoring local government to pledge its 0 credit. By allowing participating property owners to pay for energy I I mprovements 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. Pro . ects between $200,000 - $6,000,000 may be financed through the Finance Authorlty'$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 525 Metro Place North is requesting the use of PACE Financing for its energy efficiency improvement project totaling $902,198. A signed PACE Project Development Agreement has been executed between the owner, OH15 Dublin LLC, and the project manager, Memo re. Res. 36-18 and 37-18 - PACE for 525 Metro Place North August 9, 2018 Page 2 of 3 Plug Smart. The scope of work includes LED lighting upgrades, boiler replacement, cooling tower replacement, and other temperature control upgrades. In order to satisfy this request, the City of Dublin must pass a series of Resolutions on August 13, 2018 and Ordinances on August 27 and September 10, 2018 Council meetings. These Resolutions and Ordinances will allow building ownership to opt -in to the Regional Special Improvement District. Staff recommends Council passage of Resolution No. 36-18 and Resolution No. 37-18 on August 13, 2018. Please contact Jeremiah Gracia with any questions. Memo re. Res. 36-18 and 37-18 - PACE for 525 Metro Place North August 9, 2018 Page 3 of 3 WHAT IS PACT? rojj) C'rty- En n 1v ITACE) is i tin-allit.-Ina mechanism that c-nabfes lcv,v-oost, long-ternn funding for enj-%4qy ef-ficioncy, re,,-ne-wable enerfvy and watet cufisi�-rvation Pi0j('-'-ctS- PACE fir-jancing is repaid as an assessment on thc pror>etty)IS wgulaf tax b1 1, and- is procc-,,Ssead the Sar'ne Wt-ly as otfver local public berAefit h`aye bc-,en for decades, Depeqd A nq o n local le"'11slation, FRACE car) LT used tot cooirnoo rc i a 10, nonpir-ofil- and re'-sid-ential P(OpetlWlls. .V HOW DOES IT WORK? PACE" is a rtzi tional ito-ifiall ve, but ple,x, Sims ai'e e-st ab1ished locally and t'aifofcd to In t -Sed that authofize t 4 :�-s municip-alibes 14i""�fnial -malk-et nem"Js- sulte leqislatifxl ;S P'm� to establish JDA-CEE pri-.)qrams: rind Ity-al qovernmonts have dervelopt%d -a Variety of via be -e -n succe'ssfully implemented. Regal-ciless of 1110clel, proqrx-n models that )a 91-erlY, a -f -e se-4q---ial Wystwrws that hold true for e...'ery PACE pfograrn. F"ACE is volunzary tot all l.Aftios invof-vie d. *i v e -r 100% of a pfo t "s hard a n d sof t c0sts. PACE can ce Long financiag turtnis up to 20 Yeats. Can b -c cornbioed witotifilyU ve Proqr ani S.. I h I , lor-al &-nd fe ieral inctiritIi • lnverqy proje-cn, are 1) efma I'le tilt ly athxod to -a ptope(ty. Fie PACE assessment isfilted with Ibc, local mfunfic ipa lit, y- as alien of) the Propel ty. WHY IS IT 50 POPULAR? I Fltopoft"J� oylftt'-s love PACE Liecanise they can �ur'jd prolects with no out-of-pocket. COMP-101C115-1-ve rr:tlofifs that hmle meanin�jful em2�rqy savings and a significant -0,Ipjct or", the bott-ofn line. The, al-IrWal enefa .y savinq� fug a PACE project Usual(y #--xcettdf,':1-he ammal assessment payment, so ptopef ty owners are caSh flow positive inuviediately. That rnearis thwe arcs incieased. dollars that can be spent on other budgetal-Y expens-e-s, or busmass expallslon.. Loczji qcivertimerlts love FACE bimause -It"S at) Economic Development Inittahve. that 10"'Vers th-c' co: t cif doiliq bU55111OSS 41 VIC61 'COMMILInity. It encoufaqes ncw Uusirtess e"'.Volets to 11W.". at 01 the area. alld coates juts usiog the local wotkforce. PACE projQcts, ,1150 have a positive impact of 'ait quality, orating healthic.n., more llvabl(-� HOW CAN I GET PACE? 4 4. - W1,14-PACUNation.tithe s has all toois and res.,ow4esu need to get sta-fted With Check to �ieo if yout state hai p-assed a 10ACE statute, and if your area has an cli 'prOurd and 'air o n -o.,; bo able to put yciu touch a work-kif q co-afibon. M lo IN fur a d 0 hc-a I jr I q tr 0-'sn yo -U! BENEFITS OF PACE PACE