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HomeMy WebLinkAboutOrdinance 048-20BARRETT BROTHERS - DAYTON, OHIO Ordinance No. — RECORD OF ORDINANCES 48-20 (AMENDED) Passed , AN ORDINANCE DETERMINING TO PROCEED WITH THE ACQUISITION, CONSTRUCTION, AND IMPROVEMEKT OF 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, the Council ("CouncH") of the city of Dublin, Ohio (the "City') duly adopted Resolution No. 68-20 on November 16, 2020 (the "Resolution of Necessity"), (i) declaring the necessity of acquiring, constructing, improving, and installing energy efficiency improvements including, without limitation, building envelope improvements, LED lighting, H\IAC system improvements, plumbing fixtures, and related improvements (the "Project," as more fully described in the Petition referenced ir� this Ordinance) located on real property ownE�d by Dublin Witness, LLC (the "Owner") and identified by the County Auditor of 6 :ran1din County, Ohio as Parcel Nurnbers Z/3-001311-00 and 2/3r 0M704 00 wi lfi i n the City (the, "Property", as more fully described in i -)(hi bit A to th(� Petition); (ii) providing for the acquisition, construction, and improvement of the Project by the Owner, as set forth in the Owner's Pe ir;lon for Spec%7il Assessments for Special Energy Itnpro vement Projects and Affidavit (the "Petition"), including by levying and collecting special assessments to be asse.,sed upon the Property (the "Special Assessments") in an amount sufficient; to pay the costs of the Project, which is estimated to be $8f/3)_f416.80J including ether 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 ("Districts') 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 (1-00%) 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 November -1.8, 2020, no claims for damages alleged to result from, or objections to, the Project have been filed witNn the times prescribed by sections '12Y.16 and Y2 V.18 of the Ohio Revised Code, NOW, THEREFORE, State of Ohio, thata. BE IT ORDAINED by the Council of the City of Dublin, of the elected members concurring Section 1. (ach 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 coope...rate 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, an Frirm ADWM RECORD OF ORDINANCES BARRETT BROTHERS - DAYTON, OHIO Form 6220S 48-20 Ordinance No. Passed Page 2 of 3 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 $8,732,416.80, 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 reasonable 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 reasonable 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, 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 2021 for collection in 2022 and shall continue through tax year 2044 for col leiftion in 2045; 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 2022, 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. RECORD OF ORDINANCES BARRETT BROTHERS - DAYTON, OHIO Form 6220S Ordinance No. 48-20 Passed Page 3 of 3 , Section 7. Council finds and determines that all formal actions of this Council eoncinrning 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 comr itlees that resulted in such formal action, were in meetings open to the public, in compliance with all legal requirements including Ohio Revised Code Secdon 121.22. Section 8. Under Section 4.04 of the charter of the City, ;his ordinance is an Ordinance for improvements petitioned for by owners of the requisite majority (10011%) of the front footage or the area of the property benefited and to be assessed and shall be in full force and effect immediately upon its passage. �e Passed this 21211- day of ICU , 20 ., C� Mayor — Presiding Officer ATTEST: r� - �-L - Cleof Cou it (AC-li(1g) The unde" d Clerk of Council hereby certifies that the foregoing is a true copy of Ordinance No. 7.20 duly passed by the Councifl of the City of Dubfin, Ohio on 1-111" i 1 -p b 2021, and that a true copy of such Ordinance was certiffied to the County Auditor of Frank] I*A County, Ohio within 15 days after its passage. C re. rk.. Io ft- - h-- e- uncil i 'o C.I*t' f Dub in. 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, Michael Stinziano, the duly elected, qualified, and acting Auditor in and for Franklin County, Ohio hereby certify that a certified copy of Ordinance No. 48-20 duly passed by the Council of the City of Dublin, Ohio on February 22, 2021, 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 February 26, 2021. WITNESS my hand and official seal at Columbus, Ohio on a aof" . 2021. [SEAL] 156447410 Auditor -i Franklin County, 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: February 16, 2021 Initiated By: Colleen Gilger, CEcD, Director of Economic Development Sara O'Malley, Economic Development Administrator Re: Ordinances 48-20, 49-20, and 50-20 for Property Assessed Clean Energy (PACE) Special Improvement for 600 Metro Place North Background The building ownership for 600 Metro Place North requested 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. As part of this process, the two resolutions were approved at the City Council meeting on Nov. 16, 2020. The three ordinances were tabled, at the request of the applicant, at the second reading/public hearing on Dec. 7, 2020. At the Council Meeting on Feb. 8 2021, building ownership requested Ordinances 48-20, 49-20, and 50-20 be removed from the table and scheduled for second reading/public hearing on February 22, which was approved, in order to move forward with the PACE project. Process PACE allows qualifying energy improvements to be financed through special assessments on a property owner's real estate tax bill. To satisfy this request, Dublin City Council must pass a series of two resolutions and three ordinances: The first resolution approves the owner's petition to the City to levy special assessments. (Approved Nov. 16, 2020) The second resolution and two of the ordinances, provide for the steps set forth in the Ohio Revised Code for levying special assessments. (Resolutions approved Nov. 16, 2020; Ordinances were introduced) The last ordinance approves the transaction documents. (Introduced Nov. 16, 2020) This process, while detailed, follows the requirements of the Ohio Revised Code and City's Charter. The City has no financial obligations with any PACE project and serves only as a pass-through entity for financing. Recommendation Staff recommends Council approve Ordinances 48-20, 49-20, and 50-20 on Feb. 22, 2021. Please contact Sara O'Malley with any questions. 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... CIN won ,o" to Co years it snood, m.,demo¢ Men rel that has, meningil trial s,,N, and a Nil Imps on he tmtom Ane The annual energy wengs for a PACE pmts: usualy h1wk,d hearcuala Nothirprymmtsopmperywmmaree "io paNm ImmadateN rnm mese h,re,re No,ud ssaxp hn on b,.p,m on she, tepltalpgetsrs,IN, e. n or Is, fo.eyrmdon. wI govemmmn Iwe PACE teteux n's an Emi Cwelopment InNadve Not onvors rs to heaven mato! anng tuoness h IN greater In'I Jobs ratty ove Itmono¢new Nuhn¢ Nall we onto workforce. PACE platIst, she ve a Nese honest gwlttµ Nalrcrenm9 1,e11M1ler, Na, IMtk n,ghtohmh HOW CAN 1 GET PACE? an No Al h, rods and re,N,s sou nom h get of with PCE Ch c, m sea nfoto uh has Eased a PAR sfatme,and n pmarea has In Mpcgmm.nnee, ramaatus to fired Nor those, is,total Intel in Mnlonati and we,or os atk to No you In mush wMa mwng wli We Imk!.Noah mn„nrrgfmmymn BENEFITS OF PACE PACENation Intense Is the or ool fis.n.ng We d as u,P,nsing mrnawa m,