Explanation
BACKGROUND: The Director of the Department of Development, as authorized by the Council of the City of Columbus, previously approved levying property assessed clean energy (“PACE”) special assessments on certain property located at 1275 Olentangy River Road and owned by 1275 Olentangy LLC. The special assessments repay and secure financing for special energy improvement projects installed at the property. The financing was provided by Greenworks Lending LLC (together with its successors and assigns, including, without limitation, PACEWell 3 LLC, “Greenworks”).
The Owner and Greenworks have notified the City that the financing provided for the special energy improvement projects has been prepaid in full and have requested that the City reduce the special assessments previously levied down to $0.00.
This legislation is to reduce the amount of the special assessments previously levied down to $0.00 and to cause the County Auditor to remove the special assessments from the tax bills for the property.
Emergency action is requested on this legislation to allow the reduction of the special assessments to be certified to the County Auditor before real property tax bills for tax year 2025 are prepared.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the removal of special assessments previously levied for certain public improvements in the City of Columbus, Ohio in cooperation with the Columbus Regional Energy Special Improvement District (1275 Olentangy LLC Project); and to declare an emergency. ($0.00)
Body
WHEREAS, this Council (the “Council”) of the City of Columbus, Ohio (the “City”) duly passed Ordinance 0311-2019 on June 24, 2019 (the “Assessing Ordinance”) authorized the Director of the Department of Development or a designee (the “Development Director) to receive and approval petitions for special energy improvement projects and for special assessments and plans or supplemental plans for public improvements or public services on behalf of the Council, which such approval constitutes the legislative approval of the Council under Ohio Revised Code Chapters 727 and 1710; and
WHEREAS, on November 21, 2019 the Development Director approved a Petition for Special Assessments for Special Energy Improvement Projects and Affidavit (the “Petition”) and the Columbus Regional Energy Special Improvement District Program Plan-Supplement to Plan for 1275 Olentangy River Road, Columbus, Ohio Project (the “Supplemental Plan”) from 1275 Olentangy LLC (the “Owner”) and levied special assessments for the purpose of acquiring, constructing, and improving certain public improvements at 1275 Olentangy River Road in the City in cooperation with the District as requested and described in the Petition and the Supplemental Plan (the “Special Assessments”); and
WHEREAS, Greenworks Lending LLC (together with its successors and assigns, including, without limitation, PACEWell 3 LLC, “Greenworks”) provided financing (the “Project Advance”) to the Owner under the Energy Project Cooperative Agreement dated as of January 31, 2020 (the “Energy Project Cooperative Agreement”) between the Owner, Greenworks, the District, and the City, for the purpose of paying and financing the costs of the special energy improvement projects described in the Petition and the Supplemental Plan; and
WHEREAS, as provided in the Energy Project Cooperative Agreement, the Owner has prepaid to Greenworks all amounts outstanding with respect to the Project Advance, and the Owner and Greenworks have notified the City that the remaining Special Assessments should be reduced to $0.00; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is necessary for this Ordinance to take effect at the earliest possible date in order to certify the appropriate reduction in the amount of the Special Assessments to the County Auditor in order to effect such reduction prior to the preparation of second-half real property tax bills for tax year 2025 (payment in calendar year 2026) and for the immediate preservation of public peace, property, health and safety; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That each capitalized term not otherwise defined in this Ordinance or by reference to another document shall have the meaning assigned to it in the Energy Project Cooperative Agreement.
SECTION 2. That under the Energy Project Cooperative Agreement the City agreed that in the event the Project Advance is prepaid, in whole or in part, it would, in cooperation with the Owner, and to the extent permitted by law, cause the aggregate lien of the Special Assessments to be no greater than the remaining principal of and interest, premium, and fees, if any, on the Project Advance through its final repayment.
Greenworks has notified the City that all Special Assessments levied by the City and certified to the City Auditor to the County Auditor pursuant to Ohio Revised Code Chapter 727.33, are to be reduced by the amount of the aggregate Special Assessments prepaid. The remaining principal of and interest, premium, and fees on the Project Advance will be $0.00, and the amount of Special Assessments necessary to pay principal of and interest, premium and fees on the Project Advance will be $0.00.
SECTION 3. That the aggregate Special Assessments previously levied by this Council and certified by the City Auditor to the County Auditor are hereby reduced to $0.00. The City Auditor and the Department of Development of the City are hereby authorized to take any actions as may be necessary in order to cause the County Auditor to reduce the amount of the Special Assessments to $0.00.
SECTION 4. That in compliance with Ohio Revised Code Section 319.61, the Clerk of the Council is directed to deliver a certified copy of this Ordinance to the County Auditor of Franklin County, Ohio within 20 days after its passage.
SECTION 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.