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HomeMy WebLinkAboutResolution 009-19RECORD OF RESOLUTIONS BARRETT BROTHERS - DAYTON. OHIO Resolution No. 09-19 Passed 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 (BRIDGE PARK D BLOCK PROJECT) Y WHEREAS, Ohio Revised Code Section 1710.06(C) provides that apolitical 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") 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"). 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") 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, Scioto Tuller Acquisition, LLC and Creekside Acquisition Columbus Associates, LLC (collectively, 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, improving and installing energy efficiency improvements on its real property, including, without limitation, lighting retrofits, high -efficiency HVAC systems, building automation controls, energy efficient roofs, building insulation, energy efficient windows and doors, and related improvements (the "Project"); and WHEREAS, the City Council ("Council") of the City of Dublin, Ohio (the "City") has, by Resolution No. d , adopted on February l °, 2019 approved the Petition for Special Assessments for Special Energy Improvement Projects and Affidavit (the "Petition"), together with the Supplement to Plan for Bridge Park Block, Dublin, Ohio Project (the "Supplemental Plan") in accordance with Ohio Revised Code Section 1710.02; and WHEREAS, the Petition, which is on file 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, Bridge Park DBlock Commercial Investments, LLC, in anticipation of being the successor in interest of the Owner in the Property has consented to the filing of the Petition and the Supplemental Plan; 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 Form 6301 RECORD OF RESOLUTIONS BARRETT BROTHERS - DAYTON, OHIO Resolution No. 09-19 Passed Page 2 of 6 sufficient ' to pay the costs of the Project, which is estimated to be $31,221,830.28, 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, THER TRE, BE IT RESOLVED by the Council of the City of Dublin, State of Ohio, of the elected members 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. Section 2. This Council declares necessary, and a vital and essential public purpose of the City, to improve the Property, which has been identified by the County Auditor of Franklin County, Ohio as Parcel Numbers 273-013032, 273-013029, and 273-013030 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 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 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, construction, 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 Form 6301 RECORD OF RESOLUTIONS BARRETT BROTHERS - DAYTON, OHIO Resolution No. 09-19 Passed Page 3 of 6 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%) 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. 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. In the event that at any time following the date of this Resolution the Property is combined or subdivided into permanent parcels in the records of the County Auditor of Franklin County, Ohio (the "County Auditor") then the Owner has requested in the Petition that the Special Assessments be allocated among only the resulting parcels which will be classified for real property taxation purposes as any use other than residential real property, subject to the exceptions set forth in the following sentence ("Assessed Parcels"). No Special Assessments shall be allocated to any resulting parcels which will be classified for real property taxation purposes as residential real property or property on which a public parking garage or public market are constructed ("Non -Assessed Parcels"). The allocation among any resulting Assessed Parcels shall be equal to the quotient of the square footage of such Assessed Parcel divided by the aggregate square footage of all Assessed Parcels within the boundaries of any of the parcels specifically identified in the Petition (an "Original Parcel"). The Owner has certified, represented, and warranted to the District and the City in the Petition that the portion of the Special Assessments allocated to each resulting Assessed Parcel, and the fact that no Special Assessments will be allocated to any resulting Non -Assessed Parcel, all as described above, will cause each resulting Assessed Parcel to have Special Assessments allocated to it in proportion to, and not in excess of, the special benefits to be conferred on the resulting parcel or resulting parcels by the Project. This Council therefore hereby finds, determines, and resolves that in the event that at any time following the date of this Resolution, the Property is combined or subdivided into permanent parcels in the records of the County Auditor, the Special Assessments shall be allocated among only the resulting Assessed Parcels in proportion to the quotient of the square footage (as reported by the County Auditor) of such Assessed Parcel divided by the aggregate square footage (as reported by the County Auditor) of all Assessed Parcels within the boundaries of any Original Parcel, and no Special Assessments shall be allocated to any resulting Non -Assessed Parcel. The Council hereby finds and determines, based on the Owner's certification, representation, and warranty in the Petition, that such allocation method is in proportion to, and not in excess of, the special benefits to be conferred on the resulting parcel or resulting parcels by the Proj ect. 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 56 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. Form 6341 BARRETT BROTHERS - DAYTON, OHIO Resolution No. RECORD OF RESOLUTIONS 09-19 Passed__, _ e Page 4 of 6 . Form 6301 The aggregate amount of Special Assessments estimated to be necessary to pay the costs of the Project is $31,221,830.28. 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 rate 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 Proj ect 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 41 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; (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 RECORD OF RESOLUTIONS BARRETT BROTHERS - DAYTON, OHIO Form 6301 Resolution No. 09-19 _ Passed Page 5 of 6 (ix) Any and all procedural defects, errors, or omissions in the Special Assessment process. Section 15. This Council finds and determines that all formal actions of this Council concerning and relating to the passage of this Resolution were adopted in an open meeting of this Council, and that all deliberations of this Council and any of its committees that resulted in such formal action were in meetings open to the public in compliance with all legal requirern4ts, including Ohio Revised Code Section 121.22. Section This Resolut�*6n ' effective upon passage as provided under Section 4.04(a of the Revised 00rter Si2ded.- yor -Presiding Officer Attest: Clerk of Council Passed: February Ll, 2019 Effective: February A, 2019 To: Members of Dublin City Council From: Dana L. McDaniel, City Manage Date: February 5, 2019 Ink*lated By: Colleen Gilger, Director of Economic Development Jeremiah Gracia, Economic Development Administrator Ordinance Nos. 03-19, 04-19 and 05-19 Property Assessed Clean Energy (PACE) Special Improvement for Bridge Park Block D Property Assessed Clean Energy (PACE) programs represent a great mechanism available for financing energy efficiency and renewable energy improvement projects. 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.] 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. Staff recommends Council approve Resolution Nos. 08-19 and 09-19 on February 11,, 2019 and Ordinances Nos. 03-19, 04-19 and 05-19 on February 25, 2019. Please contact Jeremiah Gracia with any questions.