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HomeMy WebLinkAboutResolution 068-20RECORD OF RESOLUTIONS BARRETT BROTHERS - DAYTON, OHIO Resolution No. 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 (600 METRO PLACE NORTH, DUBLIN, OHIO 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") 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, Dublin Witness, 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, improving and installing energy efficiency improvements on its real property, including, without limitation, building envelope improvements, LED lighting, HVAC system improvements, plumbing fixtures, 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 o U- l C� , 2020 approved the Petition for Special Assessments for Special Energy Improvement Projects and Affidavit (the "Petition"), together with the Supplement to Plan for 600 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 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, by the Petition, the Owner requests that the Project be paid for by special assessments assessed upon the Property (the "Special Assessments") in 9 Form 6301 RECORD OF RESOLUTIONS BARRETT BROTHERS - DAYTON, OHIO Form 6301 Resolution No. 68-20 Passed Page 2 an amount sufficient to pay the costs of the Project, which is estimated to be $8,,732,,416.80, 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, 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 273-001311-00 and 273-001704-00 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 reasonable 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; reasonable 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 reasonable obligations so issued or incurred, including any credit enhancement fees, trustee fees, program administration fees, financing servicing fees, and reasonable District administrative fees and expenses; an amount to reflect interest on unpaid Special Assessments p p 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, a I I 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. RECORD OF RESOLUTIONS BARRETT BROTHERS . DAYTON, OHIO Form 6301 .-Resolution No. 68-20 Passed Page 3 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%) 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. 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 48 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 $8,732,416.80. 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 RECORD OF RESOLUTIONS BARRETT BROTHERS - DAYTON, OHIO Resolution No. 3i O Passed Page 4 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 11_ 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, including the right to consider the Special Assessments authorized ' by the Petition within the limitations contained in Ohio Revised Code Sections 727.03 and 727.06 applicable to the Special Assessments and any other special assessments properly levied now or in the future; (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 ('.'.'.ode 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; Form 6301 RECORD OF RESOLUTIONS BARRETT BROTHERS - DAYTON, OHIO Resolution No. 60-20 Passed Page 5 (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, including the right to consider the Special Assessments authorized by the Petition within the limitations contained in Ohio Revised Code Sections 727.03 and 727.06 applicable to the Special Assessments and any other special assessments properly levied now or in the future; (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. 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 requirements, including Ohio Revised Code Section 121.22, Section 16. This Resolution is effective upon passage as provided under Section 4.04(a) of the Revised Charter. Signed: � L" 4,--. S�- --- Mayor -- Presiding Officer Attest: Clerk of Council Passed: -12020 Effective: 0 , 2020 Form 6301 NOTICE TO PROPERTY OWNER OF SPECIAL ASSESSMENTS TO: Dublin Witness, LLC You are hereby notified that on , 2020, the City Council of the City of Dublin, Ohio, adopted Resolution No. -20 declaring it necessary, and a vital and essential public purpose of the City, to improve the Property, which is located at 600 Metro Place North in the City and having Franklin County Parcel Numbers 273-001311-00 and 273-001704-00, by providing for the acquisition, construction, and improvement of the Project bythe 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 estimates 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. The Resolution approves the plans, specifications, profiles and estimate of cost for the Project, which are now on file in the office of the Clerk of Council of the City, and provides that the entire cost of the Project shall be assessed against the Property. The estimated special assessments for the Project based on the estimate of cost are now on file in the office of the Clerk of Council of the City, and are available for inspection by any interested person. Objections 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 service of this notice. By order of the City Council of the City of Dublin, Ohio. Dated: .2020 Clerk of Council City of Dublin, Ohio IcityOffice of the City Manager of Dublin 5555 Perimeter Drive • Dublin, OH 43017-1090 Memo Phone: 614-410-4400 To: Members of Dublin City Council From: Dana L. McDaniel, City Manager Date: November 4, 2020 Initiated By: Colleen Gilger, CEcD, Director of Economic Development Sara O'Malley, Economic Development Administrator Re: Resolutions, Petition, and Ordinances for Property Assessed Clean Energy (PACE) Special Improvement for 600 Metro Place North Background The City of Dublin is focused on setting appropriate conditions to encourage investment and economic development. City Council continues to support the Economic Development Strategic Plan to ensure Dublin's office space remains competitive in the market. One particular tool the economic development team has brought to existing commercial building owners' attention is the use of the Property Assessed Clean Energy (PACE) program, a favorable financing tool for major energy efficiency improvements. This initiative directly relates to Strategy 1, Action 3 from the Economic Development Strategic Plan that identifies creating distinctive development nodes with vibrant physical space and focusing efforts to develop the Dublin Corporate Area/legacy office parks, as strategic goals. PACE is a simple and effective way to finance energy efficiency and renewable energy building improvements. PACE can pay for qualifying improvements for almost any type of property including commercial, retail, industrial, nonprofit, and multi -family. Property owners across the United States are using PACE because it not only saves money, but makes these aging properties more valuable to its owners and communities. Process PACE allows qualifying energy improvements to be financed through special assessments on a property owner's real estate tax bill. A summary of PACE is provided as an attachment to this memo. In order to satisfy this request, Dublin City Council must pass a series of two resolutions and three ordinances: The first resolution approves the property owner's petition to the City to levy the special assessments. The second resolution and two of the ordinances, provide for the steps set forth in the Ohio Revised Code for levying special assessments. The last ordinance approves the transaction documents. This process, while detailed, follows the requirements of the Ohio Revised Code and the City's Charter. The City has no financial obligations with the establishment of a Special Improvement District or for any PACE project. The City simply serves as a pass-through entity for the project financing. Memo re. PACE for 600 Metro Place North November 4, 2020 Page 2 of 3 Project The building ownership for 600 Metro Place North is requesting the use of PACE financing assessments totaling $8,732,416.80 for the retrofit and conversion of a former Crowne Plaza hotel into a DoubleTree hotel by Hilton. Unlike previous PACE projects that have utilized Ohio Air Quality Development Authority financing (OAQDA), this project is utilizing a private capital provider, therefore, there are no impacts to existing or future property tax collections due to related parties (school district, township, etc.) and those parties remain whole. The special assessments that the property owner is requesting will be in addition to the property taxes that would otherwise be collected on the parcels. The scope of work includes equipping the building with an energy efficient building envelope, LED lighting, high efficiency HVAC systems, and new plumbing fixtures that reduce the amount of energy necessary to heat water at the building. Recommendation Staff recommends Council approve Resolutions Nos. 67-20 and 68-20 on November 16, 2020 and Ordinances Nos. 48-20 through 50-20 on December 7, 2020. Please contact Sara O'Malley with any questions. Memo re. PACE for 600 Metro Place NOM November 4, 2020 Page of WHAT IS PACE? Petition, usesetl Clon Eregy IPACp 6 a financing meTnem that ¢nada bwe110 bnPrtrm fulling far energy alfiuenry rmm enegy and wart, on problem PAR finandy 6 reyld asap aeessani enc on N, PropadY• regular rn Nil, and Is processed to ume way as whet bast pueuc lunefir re, gWewalim xwersl N n for dedtt as. peMing o asst n NICE one Yusad for mmme uek Nonprofit and shelfprwpenles.I HOW DOES IT WORK? PACE 11 normal Inflation, felt programs are maNWNlaaNs and taibred to meet regbnala paled that autM1we mumtlpl l on establish PACE progrann,eand knal gonso mems one, hvoroped a variety of prcgnm mwdelnNt M1rve been successfully implemented. kegadless of model, thi xnral In tares that End trehoNeary PAR procram. Mary for At pact looMd No of a content's haul and oft rmts. • Long fi..... N arms unto sera, lide milltohe and Nalllmence hprogram,. • fntow ptolentsam Nmeanentia.Mud to a property • Th, PACE aaeamemtr i who heloal mumdfafM1y asa Ilan on the Not WHY IS IT SO POPULAR? Property woos Iwe PACE tete... they aan fund posers who no ou.Nsshcon PAR fi... 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