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Approving assessment costs and setting the date of City Council public hearing to ratify the assessment for the PACE of MN improvement financing (File No. 19223, Assessment No. 177401)
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WHEREAS, the City of Saint Paul ("City") has an interest in promoting energy efficient construction within the City; and
WHEREAS, the Saint Paul City Council approved a Joint Powers Agreement with the Saint Paul Port Authority ("SPPA") on November 16, 2016 (RES 16-2000) designating the SPPA to implement and administer the Property Assessed Clean Energy (PACE of MN") improvement financing on behalf of the City, and providing for the imposition of special assessments pursuant to Minnesota Statutes Sections 216C.435 and 216C.436 and Chapter 429 (the "Act"); and as needed in connection with that program; and
WHEREAS, the City wishes to encourage commercial and industrial reinvestment, and to be proactive in preparing for applications and petitions for special assessments from owners of property located in Saint Paul desiring to participate in and receive financing pursuant to the Act; and
WHEREAS, GO WILD, LLC has submitted a PACE of MN application to SPPA, attached hereto as Exhibit A, for its property located at 400 Wabasha Street, Saint Paul, MN (PIN No. 06-28-22-12-0098), and is requesting that the City levy a special assessment of $6,740,000 (the "PACE Assessment"), and apply said assessment on its property tax bill over the next 20 years; and
WHEREAS, SPPA has reviewed the application and determined that the interested property owner meets all eligibility requirements under PACE of MN; and
WHEREAS, SPPA, on behalf of the property owner, requests that the City apply the PACE Assessment and collect payment on the property tax bill on behalf of the SPPA; and
WHEREAS, after imposition of the PACE Assessment, the City shall collect such assessment payments and remit them to the SPPA for use in the repayment of the Loan(s) or Bond(s) and the City will take all actions permitted by law to recover the assessments, including without limitation, reinstating the outstanding balance of assessments when the land returns to private ownership, in accordance with Minn Stat. Section 429.071, Subd. 4; and
WHEREAS, the PACE Assessment shall be payable in annual principal and interest installments extending over the term of the special assessment, the first of the installments to be payable with general property taxes in 2018, and shall bear interest at a rate of up to 8.0% per annum and anticipated interest start date of January 4, 2017, and to the first installment shall be added interest on the entire assessment from the interest start date until December 31 of the tax payable year to which the first installment will be extended, and to each subsequent installment, when due, shall be added interest for one year on all unpaid installments and to each installment shall also be added the special assessment administration fee required by M.S. 429.061, subd. 5; and
WHEREAS, the PACE Assessment shall be certified to Ramsey County and entered onto the property tax bill for the year and the annual installment, and interest shall be collected at the same time and in the same manner as real property taxes; and
WHEREAS, the Office of Financial Services Real Estate Section has prepared the attached Report of Completion of Assessment for the assessment of benefits, cost and expenses for improvements for the PACE of MN special assessment; and
WHEREAS, the Office of Financial Services Real Estate Section has prepared for the Council's consideration the attached Assessment Roll listing the benefited property, the property owner, the services provided and the charges for the service; and hereby submits the Assessment Roll for the City Council's consideration to adopt and levy the charges as an assessment against the benefited property; now, therefore be it
RESOLVED, that the Saint Paul City Council hereby accepts and approves said Report of Completion of Assessment and Assessment Roll; and be it further
RESOLVED, that a public hearing be had on said assessment on the 4th day of January, 2017 at 5:30 p.m., in the Council Chambers of the Court House and City Hall Building, in the City of Saint Paul; and that the Office of Financial Services Real Estate Section provide mailed and published notice of the same as required by law.