Explanation
BACKGROUND: The Council of the City of Columbus previously adopted an ordinance levying property assessed clean energy (“PACE”) special assessments on certain property located at 3255 McKinley Avenue. The special assessments repay and secure financing for special energy improvement projects installed at the property. The financing was provided by Greenworks Lending LLC (“Greenworks”).
Under the authority granted by that ordinance, the City entered into an Energy Project Cooperative Agreement dated as of October 24, 2018 (the “Energy Project Cooperative Agreement”) with the Columbus Regional Energy Special Improvement District, Inc. (the “District”), Greenworks, and Belmont House LLC, an Ohio limited liability company (the “Owner”), and a Special Assessment Agreement dated as of October 24, 2018 (the “Special Assessment Agreement”) with the County Treasurer of Franklin County, Ohio, the District, Greenworks, and the Owner. Under the Energy Project Cooperative Agreement and Special Assessment Agreement, the City agreed to cooperate with the other parties to reduce the amount of the special assessments levied if all or a portion of the financing was prepaid.
Greenworks assigned its interest in the Energy Project Cooperative Agreement and the Special Assessment Agreement to its affiliate, PACEWell 1 LLC, a Delaware limited liability company, and PACEWell 1 LLC assigned those same interests to another Greenworks affiliate, PACEWell 3 LLC, a Delaware limited liability company,
The District and PACEWell 3 LLC, as assignee of Greenworks, have notified the City that the financing provided for the special energy improvement projects is to be 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.
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