[2024-102 Advanced Energy District Exhibit A.pdf]
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NORTHEAST OHIO ADVANCED ENERGY DISTRICT ADVANCED ENERGY SPECIAL
IMPROVEMENT DISTRICT
(ADVANCED ENERGY DISTRICT)
COMMERCIAL-INDUSTRIAL PROGRAM
PROJECT PLAN
The amended pilot commercial — industrial property assessed clean energy (PACE) program
project plan of the Northeast Ohio Advanced Energy District Advanced Energy Special
Improvement District (“Advanced Energy District”) provides guidelines to property owners
desiring to develop special energy improvement projects as follows:
Thank you for your interest in learning more about the amended pilot commercial — industrial
property assessed clean energy (PACE) program of the Northeast Ohio Advanced Energy District
Advanced Energy Special Improvement District (“Advanced Energy District”). The Advanced
Energy District can provide for financing (“financing” or “funding”) for your special energy
improvement project or a mechanism to secure financing obtained elsewhere secured by special
assessment proceeds. If you (“the property owner(s)”) wish to apply for financing (“financing” or
“funding”) from the Advanced Energy District or utilize the assessment process as part of its
amended pilot commercial-industrial PACE program (“Commercial-Industrial Program”), you
should read and become familiar with the following terms and conditions for participation:
Participation in the Advanced Energy District’s Commercial Industrial Program is limited to
property owners who have agreed to add their real property to the Advanced Energy District and
who otherwise meet the terms and conditions of the Advanced Energy District Commercial-
Industrial Program. These terms and conditions are addressed in this Project Plan, a Services Plan,
a real property and company information verification form, an application or petition (Petition),
and the governing documents forming the Advanced Energy District (i.e. articles of incorporation,
code of regulations, and resolutions duly adopted by the board of directors of the Advanced Energy
District and the applicable resolutions and ordinances of the city where your real property is
located, such documents are hereinafter collectively referred to as “Governing Documents”), each
of which property owner(s) must have reviewed and as necessary have agreed to or executed prior
to participation. The Project Plan, the Services Plan, the Petition, the Governing Documents and
an Assessment Schedule to be executed by you to participate in the Commercial-Industrial
Program are hereinafter collectively referred to as the “Advanced Energy District Documents.”
The Advanced Energy District Documents establish the terms of the Commercial-Industrial
Program, including the addition of additional territory to the Advanced Energy District. You
should become familiar with and understand the provisions of the Advanced Energy District
Documents. By agreeing to or executing the Advanced Energy District Documents, you agree to
the terms of the Advanced Energy District’s Commercial-Industrial Program. Each participating
political subdivision in the Advanced Energy District and the Board of Directors of the Advanced
Energy District reserve the right to amend the Commercial-Industrial Program terms and
conditions from time to time as described in “Changes in the Commercial-Industrial Program
Terms; Severability” below.
I. Purpose of the Commercial-Industrial Program
The Commercial-Industrial Program is intended to assist property owners who own real property
within participating political subdivisions with the financing of the acquisition, installation and
improvement of special energy improvement projects, including, without limitation, solar
photovoltaic, solar thermal energy, geothermal energy, customer-generated energy, or energy
efficiency improvements, whether such real or personal property is publicly or privately owned,
and any other “special energy improvement projects” authorized under Ohio Revised Code
Chapter 1710, as the same may be amended from time to time (the “Authorized Improvements”),
which Authorized Improvement shall be undertaken in accordance with the Act and the Plan, and
by carrying out such other improvements and/or services in and for the benefit of the District as
the Board (defined below) may determine and funds may allow, all as set forth in the Plan. Each
participating political subdivision has approved the creation of the Advanced [nergy District to
provide the source of financing for the Commercial-Industrial Program. Special Assessment
Revenue Bonds will be issued on behalf of Advanced Energy District and proceeds from the sale
of the special assessment revenue bonds will be used to finance Authorized Improvements that
benefit properties within the District. Debt service on the special assessment revenue bonds and
the costs of administering the Commercial-Industrial Program will be paid through special
assessments levied by participating political subdivisions on real property in the Advanced Energy
District. Special Assessment payments will be due and payable by property owner(s) at the samc
time real property taxes are due.
There may be other types of financing available. Each participating political subdivision and
the Advanced Energy District do not guarantee that the Commercial-Industrial Program is
the best financing option for your situation. Please do your research and select the option
that is most appropriate for you.
Il. Advanced Energy District's} Commercial-Industrial
Program Process; Terms and Conditions; Services Plan;
Statutory Requirements
As discussed in more detail below, in order for you to receive financing and funding from the
Advanced Energy District’s Commercial-Industrial Program, the following steps must oceur!:
First: You must review the eligibility requirements for Advanced Energy District
Commercial-Industrial Property Assessed Clean Energy (PACE) program as set forth
below. In order to participate in the Commercial-Industrial Program, you must meet the
cligibility requirements. See “Eligibility” below.
Second: You must apply for a funding reservation from the Advanced Energy District’s
Commercial-Industrial Program as set forth in this Article I]. Property owners may apply
for the Advanced Energy District’s Commercial-Industrial Program by contacting any one
of the seventeen participating political subdivisions in the Advanced Energy District for an
application. The list of participating political subdivisions is listed under “Tligibility”
' These sieps are not necessary for Owners to secure other financing.
below. You will be required to fill out and complete a real property and company
information verification form provided to vou by the participating political subdivision.
You will also receive a copy of the Advanced nergy District Documents, including this
Project Plan, when you receive the real property and company information verification
form. Upon submission of the real property and company information verification form,
the participating political subdivision will forward your form to the Advanced Fnergy
District for processing.
Third: Upon submission of the real property and company information verification form,
the Advanced Energy District will verify your eligibility to participate in the Commercial-
Industrial Program and if your property is eligible, the Advanced Energy District will begin
working with you and one or more consultants, engineers or qualified installers that you
may choose to assist you in planning the development of your Authorized Improvement
and an estimated project cost. During this period of time, representatives of the Advanced
Energy District will work with you and your consultants, engineers and qualified installers
to assess the technical and economic feasibility of the Authorized Improvement project you
are considering, including working with Advanced Energy District financial advisors,
consultants and developers who will be available to offer guidance regarding special
assessment revenue bond financing costs, including expected and maximum interests rates
and expected and maximum estimated special assessments which the Advanced Energy
District expects to be payable by you as property owner(s) in connection with your
participation in the Commercial-Industrial Program. The costs of these services provided
by the Advanced Energy District, its advisors and agents in assisting you as well as the
costs of your consultants, engineers and qualificd installers in determining the technical
and economic feasibility of Authorized Improvements on your property may be included
as part of the cost of your Authorized Improvements. The costs of Authorized
Improvements will be eligible to be financed by special assessments paid by you for up to
twenty-five years.
Fourth: Upon your determining to proceed with a particular Authorized Improvement
project design and plan, you must request and receive the approval of the Board of
Directors of the Advanced Energy District that your project satisfies requirements of the
Advanced Energy District Documents and that the territory of the Advanced Energy
District should be increased to permit the addition of the territory which will be assessed
to pay costs of your Authorized Improvements. Upon receipt of approval of the Board of
Directors of the Advanced Energy District, you will then execute and file an application or
Petition with Mayor and City Council of the participating political subdivision where the
additional territory to the Advanced Energy District is proposed to be added. Advanced
Energy District financial advisors, consultants or developers will have provided to you by
that time the then currently anticipated interest rates on special assessment revenue bonds
or other obligations to be issued to pay costs of your Authorized Improvements as well as
the estimated special assessments to be paid by you for the financing of your Authorized
Improvements and participation in the Commercial-Industrial Program.
Fifth: With your executing and filing a Petition with the Mayor and City Council of the
participating political subdivision where your Project will be located, you as the property
owner have agreed to the levy and collection of special assessments against vour real
property to be added to the Advanced Energy District in accordance with the Petition and
the Advanced Energy District Documents. Special Assessments will be levied and
collected in any year however only in accordance with the Petition and only upon the sale
of special assessment revenue bonds or other financing, the proceeds of which will be used
to pay the costs of the Authorized Improvements. The timing for the sale of special
assessment revenue bonds to pay costs of Authorized Improvements under the
Commercial-Industrial Program will depend on the number of and size of Authorized
Improvements and market conditions.
Sixth: Afier your filing of the Petition and your compliance with the Advanced Energy
District Documents, the Advanced Energy District and its financial advisors, consultants
and developers will advise you as an owner of Property in the District of the
commencement of marketing of the special assessment revenue bonds, if applicable, or
other financing that will determine the actual interest rate(s) to be paid on special
assessment revenue bonds to pay costs of your Authorized Improvements. The Special
Assessments that will be payable by you annually as a property owner in the Advanced
Energy District as part of the Commercial-Industrial Program is calculated based upon (a)
the cost of the Authorized Improvement, (b) federal and state subsidies received by you as
owner of the Authorized Improvement, (c) the interest rates payable on the special
assessment revenue bonds and (d) administrative charges levied by the participating
political subdivision to pay administrative costs. See: The “Services Plan.”
No property owner participating in the Commercial-Industrial Program will be obligated
to pay any Special Assessments under the Commercial-Industrial Program unless the
property owner first executes an Assessment Schedule which will be prepared by the
Advanced Energy District or its agents and staff only after the pricing of special assessment
revenue bonds for the Commercial-Industrial Program. The Assessment Schedule will
include a schedule of your annual or semiannual payments for participating in the
Schedule, you will not be responsible to pay Special Assessments under the Commercial-
{Industrial Program. If you however execute the Assessment Schedule, you are agreeing to
the levy and collection of Special Assessments in accordance with the Advanced Energy
District Documents. If you do not execute the Assessment Schedule, you may be
responsible to pay certain administrative costs of the Advanced Energy District to remove
the lien of the Special Assessments from your property.
Seventh: The proceeds of the sale of special assessment revenue bonds will be deposited
with a qualified trustee. Disbursement of proceeds from such sale from the trustee held
construction fund to pay Authorized Improvement costs will require the signature of an
officer of the Advanced Energy District and the signature of an authorized officer of the
applicable property owner. A qualified installer must complete the installation of
Authorized Improvements on your property. See “Authorized Improvements; Qualified
Installers” below.
Eighth: This Plan provides that the participating political subdivision that has approved (i)
the addition to the territory of the Advanced Energy District and (ii) the Authorized
Improvements to be constructed on the applicable property in the District has done so on
behalf of the other participating political subdivisions in the Advanced Energy District.
‘The participating political subdivision where your property within the District is located
will be the initial owner of the Authorized Improvements. However, the Advanced Energy
District, acting as agent for and on behalf of this participating political subdivision may
transfer title to the Authorized Improvements to any taxpayer, including you as the property
owner, who may then apply for and receive federal and state grants and other tax benefits
associated with the ownership of the Authorized Improvements, including accelerated
depreciation. The property owner should consult its own tax advisor as to the merits of
owning the Authorized Improvements.
Ninth: As a property owner within the Advanced Energy District, you will be expected to
make special assessment payments in amounts and at the times as specified in the
Advanced Energy District Documents.
Submission and approval of a real property and company information verification
form or a Petition does not guarantee that you will receive financing or funding under the
Commercial-Industrial Program. The ability to proceed with financing or funding will be
dependent on the sale of special assessment revenue bonds or other obligations secured by
Special Assessments to pay costs of the Authorized Improvements under the Commercial-
Industrial Program. The sale of special assessment revenue bonds or other obligations will
depend on a number of factors including the number of and size of the Authorized
Improvements and market conditions.
If you proceed to incur costs with Authorized Improvements prior to executing an
Assessment Schedule, you risk incurring costs which may not be able to be financed as part
of the Advanced Energy District’s Commercial-Industrial Program. In addition,
disbursement of proceeds of special assessment revenue bonds or other obligations must be
accomplished in accordance with the trust indenture and other documents securing the
special assessment revenue bonds as well as the terms and conditions of the Advanced Energy
District Documents.
Special Assessments, You, as a property owner must pay any special assessments
levied against your property and certified for collection once an Assessment Schedule has
been executed regardless of personal financial circumstances, the condition of the property,
or the performance of the Authorized Lnprovements. Do not apply for financing if you are
not certain you can pay the special assessments. Just as with any property-based debt such
as a mortgage, the failure to pay your special assessments — in full or in part — will result
in financial repercussions, including penalties, interest and, eventually, foreclosure of your
property by Cuyahoga County.
[Ifyou use an escrow account to pay your semi-annual property taxes, you must notify your
escrow company of your special assessment payments. You will need to increase your monthly
ca
payments to the escrow account by an amount equivalent to your annual special assessments
divided by 12 months.
Services Plan. Vhe Board of the Advanced Energy District has also adopted a Services Plan
that is part of the Advanced Energy District Documents that property owner(s) must agree to prior
to participating in Advanced Energy District’s Commercial-Industrial Program. The Services Plan
details costs of administration of the Commercial-Industrial Program. The Board of the Advanced
Energy District is comprised of the duly appointed and designated persons who hold the office of
economic development director in each of the initial participating political subdivisions within the
Advanced Energy District. These Board members will approve an annual budget to administer the
Commercial-Industrial Program and the annual costs of services will be included in the special
assessments levied annually against each parcel of real property included within the Advanced
Energy District. ‘he amount levied for Advanced Energy District services rendered in any year as
to any parcel of real property in the Advanced Energy District will be in proportion to the cost of
the Authorized Improvements financed by special assessments on that parcel of real property to
the total cost of all Authorized Improvements financed by special assessments in the Commercial-
Industrial Program. ‘he Advanced Energy District may share information with any agents or other
third parties as necessary to administer the Commercial-Industrial Program. See “Disclosure of
Property Owner Information” below.
Renewable Energy Credits
The Board of the Advanced Energy District may adopt rules governing renewable energy credits
associated with Authorized Improvements financed with the proceeds of special assessment
revenue bonds.
Statutory Requirements
As provided in the Advanced Energy District Documents:
(A) Additional territory may be added to the Advanced Energy District. The Advanced
Energy District is formed for the purpose of developing the Authorized Improvements.
There will be designated at least one Authorized Improvement for each parcel of real
property included within such additional territory to be added to the Advanced Energy
District. If Additional Territory is to be added to the Advanced Energy District, such
addition will be in accordance with the Advanced Energy District Documents and the
owner(s) of 100% of the real property to be added to the Advanced Energy District will
petition the Mayor and Council of the participating political subdivision where the real
property is located for inclusion of such real property in the Advanced Energy District.
Prior to submission of the Petition, the Petition shall be approved by the Board of
Directors of the Advanced Energy District in accordance with rules established by the
Board for such purposes. The Petition necessary to add territory to the Advanced
Energy District need not be approved by the Mayor and City Council of other
participating political subdivisions in the Advanced [inergy District where such real
property is not located. Additional territory will be added to the Advanced Energy
District with the approval of the Board of Directors of the Advanced Energy District
(B)
(C)
(D)
(E)
and the participating political subdivision where the real property is located all in
accordance with the Advanced Energy District Documents and the Act.
The Advanced Energy District Documents may be amended with the majority vote of
the board of directors of the Advanced Energy District held at a meeting in accordance
with the Advanced Energy District Documents.
The board of directors of the Advanced Energy District possesses authority to
implement plans and amend plans for public improvements, including the Authorized
Improvements and public services in accordance with and as provided for in Sections
1710.02(F), 1710.02(G) and 1710.06(A) of the Ohio Revised Code.
The public improvements to be provided by the Advanced Energy District are the
Authorized Improvements included in each Petition; the area where the Authorized
Improvements will be developed will be the area identified in each Petition requesting
formation of the Advanced Energy District or requesting additional territory be added
to the Advanced Energy District and the method of assessment shall be in proportion
to the benefits that result from the Authorized Improvements, i.e. in proportion to the
cost of each Authorized Improvement financed by special assessments to the cost of all
Authorized Improvements financed by special assessments under the Commercial
Industrial Program.
For purpose of levying an assessment, the board of directors of the District may
combine levies for public services and Authorized Improvements into one special
assessment to be levied against each specially benefited property in the Advanced
Energy District.
Ill. Eligibility
In order to receive financing from the Advanced Energy District’s Commercial-Industrial Program
or request the levy of special assessments through the Advanced Energy District’s Commercial-
Industrial Program, a property owner must meet the following requirements, as the same may be
modified or amended by the Board of the District in its sole discretion:
a.
The property to be improved with the Authorized Improvements (the
“subject property”) must be located within one or more of the following
municipal corporations (each as “participating political subdivision”):
City of Beachwood, Ohio, City of Bedford, Ohio, City of Bedford Heights,
Ohio, City of Berea, Ohio, City of Brecksville, Ohio, City of Brook Park,
Ohio, City of Brooklyn, Ohio, City of Cleveland, Ohio, City of Cleveland
Heights, Ohio, City of East Cleveland, Ohio, City of Euclid, Ohio, City of
Fairview, Ohio, City of Garfield Heights, Ohio, City of Independence, Ohio,
City of Lakewood, Ohio, City of Maple Heights, Ohio, City of Middleburg
Heights, Ohio, Village of Moreland Hills, Ohio, City of Parma, Ohio, City of
Parma Heights, Ohio, City of Rocky River, Ohio, City of Seven Hills, Ohio
City of Shaker Heights, Ohio, City of Solon, Ohio, City of South Euclid, Ohio,
City of University Heights, Ohio or any other municipal corporation
which is or may become a participating political subdivision of the
Advanced Energy District under law.
The subject property must be used for commercial or industrial
purposes, which generally includes all non-residential purposes. A
multi-family apartment building will qualify as a commercial building.
The aggregate size of each of the Authorized Improvements to be
assessed against parcels of real property to be added to the Advanced
Energy District must result in energy improvement or efficiency gains
satisfactory to the Advanced Energy District
All owners of the fee simple title to the subject property must review,
sign and approve the Advanced Energy District Documents. Therefore,
before submitting an initial application, please ensure that all owners of
the fee simple title to the subject property wish to participate in the
Advanced Energy District Commercial-Industrial Program on the terms
set forth in Advanced Energy District Documents.
The Advanced Energy District recommends that the subject property
receive an “energy audit” prior to participation in the Commercial-
Industrial Program, but participation in the program will not require
fulfillment of any such energy audit.
The property owner(s) and/or the owners of the Authorized
Improvements must apply for the federal grant in lieu of tax credits
under the American Recovery and Reinvestment Act of 2009. The federal
grant in lieu of tax credit is equal to 30% of the qualified basis of the
Authorized Improvements. Property owners must also apply for any
available Ohio Energy Office grants. To the extent required by the
Advanced Energy District, the property owner must assign each of the
grants to the Advanced Energy District or its assigns in order to secure
the payment of debt service on special assessment revenue bonds or
other obligations issued to finance the property owner’s Authorized
Improvements.
The property owners(s) must agree to participate in surveys and
program evaluations directed by the Advanced Energy District.
The property owner(s) must not have declared bankruptcy in the past 7
years.
The property owners must be current in the payment of all obligations
secured by the subject property, including property taxes, assessments
and mortgages, and there must have been no notices of default filed on
the subject property within the past 3 years (or since you took title to the
subject property if it has been less than 3 years). The Advanced Energy
District may review public records, including the County real property
records, to verify compliance with this requirement.
i. The property owners must not have involuntary liens, defaults or
judgments applicable to the subject property in excess of $1,000. The
Advanced Energy District may review public records, including the
County real property records and court documents, to verify compliance
with this requirement.
j. Because the Commercial-Industrial Program may involve issuance of
special assessment revenue bonds or other obligations on behalf of the
Advanced Energy District, the Advanced Energy District is concerned
that property owners who participate in the program will pay their
special assessments in full on a timely basis. Therefore, the Advanced
Energy District reserves the right to request additional information,
including a credit check, in its sole discretion and to deny applications
based on any information that reflects on the likelihood that a property
owner may not pay special assessments.
IV. Authorized Improvements; Qualified Installers; Maximum Funding
Authorized Improvements. At this time, the Commercial-Indusirial Program may only be
uscd to finance or secure the financing of Authorized Improvement installations. You arc
responsible for the Authorized Improvements installed on your property. You will need to address
performance and other system-related issues directly with the installer according to the terms of
your contract with the installer. The Advanced Energy District and its Commercial-Industrial
Program is a financing program only. Neither the Advanced Energy District nor any of the
Advanced Energy District’s participating political subdivisions are responsible for the
system or its performance.
Qualified Installers. The Authorized Improvements must be installed by installers that are
registered with the State of Ohio. A list of State of Ohio registered installers is located at:
http://www.development.ohio.gov/cms/uploaded files/CDD/OEE/NOFA%20A ppendix%20F .pdf.
If you choose to work with an installer that is not registered with the State of Ohio, you are not
eligible for participation in the Commercial-Industrial Program.
By requiring that your installer be registered with the State of Ohio, the Advanced
Knergy District is not recommending a particular installer or warranting the reliability of
any such installer. The Advanced Energy District’s Commercial-Industrial Program is a
financing program only. Neither the Advanced Energy District nor the participating political
subdivisions will participate in the resolution of any dispute between you and vour installer.
Maximum Tunding. The Advanced Energy District will only approve applications for
funding in accordance with the Advanced Energy District Documents. As a gencral matter, the
Commercial Industrial Program will only finance Authorized Improvements that do not exceed
9
10% of the appraised value of the property to be assessed. The Advanced Energy District and
the Commercial-Industrial Program will not provide financing for any costs in excess of this
amount. The Advanced Energy District encourages you to do your research and receive bids
from multiple installers before signing a contract. The Advanced Energy District is not
responsible for determining the appropriate equipment, price or installer for your property.
V. Compliance with Existing Mortgages
The filing of the Petition and the adoption by the participating political subdivision of an ordinance
to proceed under Ohio Revised Code Section 727.25 will establish a lien on your property as
security for your obligation to pay special assessments in accordance with the Petition and the
Advanced Energy District Documents. The lien securing the obligation to pay special assessments
may be senior to all private liens, including your purchase mortgage(s). Many loan documents
limit the ability of a property owner to place liens upon property without the consent of the lender,
or authorize the lender to obligate you to prepay obligations. Please confirm with your lender(s)
that participation in the Commercial-Industrial Program will not adversely impact your
rights with respect to any existing loan documents, or obligate you to prepay your special
assessments.
VI. Transfer or Resale of the Subject Property
If you sell your property prior to the end of the special assessment period for your Authorized
Improvement, the new owner will assume the obligation to pay special assessments. Ownership of
any Authorized Improvements on the subject property will transfer to the new owner at the close
of the real estate sale.
VII. Grants and Tax Benefits
Please consult with your tax advisors with respect to the state and federal tax consequences of
participating in the Commercial-Industrial Program, including whether you will be eligible for
federal energy tax credits as a result of your participation in the Commercial-Industrial Program
and whether you can deduct the interest component of the special assessments from your state and
federal income taxes.
Neither the Advanced Energy District nor any participating political subdivision is
responsible for the state or federal tax consequences of participating in the Commercial-
Industrial Program.
VIIL. Changes in State and Federal Law
The ability to issue bonds to finance Commercial-Industrial Program Authorized Improvements is
subject to a variety of state and federal laws. If those laws were to change after you have made
application to the Advanced Energy District, the issuer of the special assessment revenue bonds or
other obligations may be unable to issue the bonds or other obligations and the Advanced Energy
District may be unable to fulfill your financing application. The Advanced Energy District shall
have no liability as a result of any such change in law.
IX. Releases and Indemnification
You acknowledge that the Advanced Energy District has been created with the approval of the
participating political subdivisions solely for the purpose of assisting the owners of property within
participating political subdivisions with the financing of Authorized Improvements, and that the
Advanced Energy District and any participating political subdivision shall have no responsibility
of any kind for, and shall have no liability arising out of, the installation, operation, financing,
refinancing or maintenance of the Authorized Improvements. You agree that you and your
successors in interest to fee simple title in the subject property shall be solely responsible for the
installation, operation, financing, refinancing and maintenance of the Authorized Improvements.
Participation in the program does not in any way obligate the Advanced Energy District or any
participating political subdivision to protecting access with respect to any proposed developments
that may shade the system. You hereby acknowledge that the subject property will be responsible
for payment of special assessments regardless of whether the Authorized Improvements are
properly installed or operate as expected.
You agree to release, defend, indemnify, and hold harmless the Advanced Energy District and the
participating political subdivisions, including their officers, directors, employees and agents, from
and against any claims, actions, demands, costs, damages or lawsuits, arising out of or connected
with your participation in the Advanced Energy District’s Commercial-Industrial Program.
X. Changes in the Advanced Energy District’s Commercial-Industrial Program
Terms; Severability
The Advanced Energy District reserves the right to change this Advanced Energy District
Commercial-Industrial Program Project Plan and the terms and conditions of the Advanced Energy
District Documents at any time without notice; however, no such change will affect your obligation
to pay special assessments as set forth in your petition and the Advanced Energy District
Documents. Your participation in the Commercial-Industrial Program will be subject to the
Advanced Energy District Document terms and conditions in effect from time to time during your
participation.
If any provision of the Advanced Energy District Documents is determined to be unlawful, void,
or for any reason unenforceable, then that provision shall be deemed severable from these
Advanced Energy District Documents and the Commercial-Industrial Program and shall not affect
the validity and enforceability of any remaining provisions.
XI. Disclosure of Property Owner Information
You agree that the Advanced Energy District and any participating political subdivision may
disclose your personal information to any agent of the Advanced Energy District or that
participating political subdivision and that the Advanced Energy District, participating political
subdivisions and its agents may disclose your information to third parties when such disclosure is
essential to the conduct of the Advanced Energy District’s business or to provide services to you,
including but not limited to where such disclosure is necessary to (i) comply with the law, legal
process or our regulators, (ii) enable the Advanced Energy District and participating political
subdivisions and their employees or consultants to provide services to you and to otherwise
perform their duties and (iii) obtain and provide credit reporting information. We do not provide
your personal information to third parties for telemarketing, e-mail or direct mail solicitation.
In order to receive funding for this program and to enable communication regarding the State of
Ohio’s energy programs, you consent to the release of your name and contact information to your
current electric utility. You further agree to the release of your name and contact information and
your property’s utility usage data to the Advanced Energy District, its grantors and designated
contractors for the purpose of conducting surveys and program evaluation of the Commercial-
Industrial Program.
12
NORTHEAST OHIO ADVANCED ENERGY DISTRICT ADVANCED ENERGY SPECIAL
IMPROVEMENT DISTRICT
(ADVANCED ENERGY DISTRICT)
COMMERCIAL-INDUSTRIAL SERVICES PLAN
The Northeast Ohio Advanced Energy District Advanced Energy Special Improvement District
(“Advanced Energy District”) intends to deliver services pursuant to this Commercial-Industrial
Services Plan (the "Services Plan"), in such manner as will be determined from time to time by the
District's board of directors (the "Board"). This Services Plan is designed to provide ongoing
services to the properties in the Advanced Energy District during the years 2010 to 2035. This
Services Plan may be amended by the Board. The Services Plan includes all terms and provisions
of the Advanced Energy District Documents, which are incorporated herein by reference as if fully
written herein. The services to be provided are as follows:
MARKETING AND PROMOTION SERVICES
Services to market Commercial-Industrial Program and promote the image of the region through
the following examples:
Development of Literature and Brochures
Sponsored Media campaigns
Public Relations
Data collection and information management
Cooperative programs with members
Electronic and printed marketing materials
Special Events
PROGRAM DESIGN SERVICES
Comprehensive design services to establish and maintain the strongest possible legal and
programmatic framework for the Commercial-Industrial PACE program.
PROGRAM ADMINISTRATION SERVICES
Provide community education, application acceptance, and real-time program tracking.
Administrative services include:
Education & Marketing
Application Processing
Property Underwriting
Project Verification
Quality Assurance
Customer Service
Origination and Closing Process
SPECIAL ASSESSMENT ADMINISTRATION SERVICES
Administrative services related to the Special Assessments are associated with the annual
determination of the Special Assessments to be collected from the subject properties of the
Advanced Energy District, management of bond funds and accounts relating to Special
Assessments, and providing public information. These services will be provided pursuant to a
Cooperative Agreement ("Cooperative Agreement") to be executed between each of the
participating political subdivisions, the issuer of the special assessment revenue bonds and the
District. These bond administration services may also be included as part of a separate
Administration Agreement and paid from assessment payments as provided in the Indenture
securing Bonds. If so, no separate special assessment for administration services for Bonds will be
included as part of the Services Plan, but rather will be included as part of the separate
Administration Agreement. Services include:
A. Calculate the Reduction of the Special Assessments for the Following Year
This task involves calculating the amount of the reduction of the Special Assessments to be
collected in the following year by each participating political subdivision and includes the
following sub-tasks:
(1) Determine Annual Bond Payments: Identify expenses of the special assessment revenue
bonds or other obligations secured by the Special Assessments (collectively, "Obligations"),
including annual debt service charges, administrative expenses, and other expenses as provided
for in the trust agreement securing he Obligations. This determination shall be made using the
definitions of "Annual Bond Payments" and other relevant defined terms and including any
contingencies permitted by the trust agreement as the same may appear in the trust agreement
securing the Obligations, a copy of which will be provided to the District at the closing of the
Obligations.
(2) Determine Annual Available Amounts: Prepare reconciliation, on dates as may be required,
to determine value of amounts held in funds established under the trust agreement, interest
earnings, and other credits which may be applied to pay debt service and other expenses under the
trust agreement. This determination shall be made using the definitions of "Annual Available
Amounts" and related definitions under the trust agreement.
(3) Calculate the Annual Required Assessments: Based on the estimates of annual expenses
and assets of Obligations incurred to pay costs of special energy improvement projects, including
annual debt service charges, administrative expenses and other expenses as provided for in the
Plan, the Petition and documents securing the Obligations, including any contingency required by
any trust agreement securing the Obligations, the District shall calculate the Annual Required
Assessments to be collected in the following year through the imposition of the Special
Assessments that will be collected by the applicable participating political subdivision levying the
Special Assessments. This determination shall be made using the definitions of "Annual Bond
Payments,” "Annual Available Amounts," "Annual Required Assessments" and related definitions
under the trust agreement securing the Obligations.
(4) Determine Special Assessments for the Assessed Properties: Based on the Annual Required
Assessment and the provisions of applicable Petitions and the Plan, the District shall determine
the Special Assessment to be imposed on each parcel within the District.
B. Prepare Certification of Special Assessments to the County Auditor
This task involves certifying the Special Assessments to be collected from each parcel within the
District to the County Auditor no later than the second Monday in September each year. The
District shall coordinate with each of the participating political subdivisions and the County
Auditor to provide the information required to certify the Special Assessments for inclusion on the
general tax list and duplicate and to be collected in semiannual installments.
C. Support Services Related to Billing of the Special Assessments
(1) Present Findings to the Board: The annual report about the Special Assessments prepared
by the District will be provided to the Board for its approval, and a copy of such report will be
provided to each of the participating political subdivisions.
(2) Approval of Special Assessments by the City Councils of each of the participating political
subdivisions: The certification of Special Assessments to be provided to the County Auditor will
be submitted to the City Council of each participating political subdivision for its approval prior
to its submission to the County Auditor.
(3) Certification to the County Auditor: Once approved by the City Council of each
participating political subdivision, the District will be responsible for submitting to the County
Auditor the District's annual certification of the total amount of the Special Assessment to be
collected each year, and of the Special Assessments to be collected from each parcel in semiannual
installments. Such annual certification of Special Assessments shall be provided to the County
Auditor no later than the second Monday in September. Assistance will be provided to each
participating political subdivision, the County Auditor, County Treasurer, or other officials of the
County as is necessary for the levy of Special Assessments.
(4) Supplemental Billing: The District shall assist the County with any supplemental billing
that should be necessary. Any Special Assessments rejected by the County Auditor (e.g., the tax
parcel number is no longer valid) will be corrected and resubmitted.
D. Dispute Resolution; Administrative Review of the Special Assessments and Other
Calculations
An owner of a parcel claiming that a calculation error has been made in the amount of the Special
Assessments to be collected from a parcel or in any other calculation required to be made hereunder
shall send a written notice describing the error to the Board of the Advanced Energy District (or
such other entity as may be designated by the Board of the Advanced Energy District to hear such
claims) not later than thirty (30) days after having paid the Special Assessment Installment
Payment in accordance with the Assessment Schedule which is alleged to have been calculated
incorrectly or within thirty (30) days of receiving notice of any other calculation, prior to seeking
any other remedy. The Board of the Advanced Energy District (or such other entity as may be
designated by the Board of the Advanced Energy District to hear such claims) shall promptly
review the notice, and if necessary, meet with the property owner, consider written and oral
evidence regarding the alleged error and decide whether, in fact, such a calculation error occurred.
[f the Board of the Advanced Energy District (or other entity designated by the Board) determines
that a calculation error did in fact occur that requires the Special Assessments to be modified or
changed in favor of the property owner, a cash refund shall not be made (except for the final year
during which Special Assessments shall be collected), but an adjustment may be made in the
amount of the Special Assessments to be paid in the following year. The decision of the Board of
the Advanced Energy District (or other entity designated by the Board) regarding an error in the
levy of the Special Assessments or any other calculation shall be conclusive as long as there is a
reasonable basis for the determination of the Board (or other entity designated by the Board).
Notwithstanding any other provision of the Advanced Energy District Documents to the contrary,
the undersigned agrees that it and its successors shall have only the remedies provided for in this
paragraph, and shall have no recourse to any participating political subdivision, the Advanced
Energy District, issuer of the special assessment revenue bonds for the Project or the Trustee in
respect of amounts levied or collected other than in accordance with the Advanced Energy
Documents.
DELINQUENCY MANAGEMENT
These services are provided only if the Special Assessments are levied and there are delinquencies
in the payment of the Special Assessments.
A. Delinquent Special Assessments Report
After the end of each collection period, the District will prepare for the Board a report which lists
each parcel delinquent in the payment of the Special Assessments and the corresponding amount
of delinquency, plus penalties. The District will also provide each participating political
subdivision with a copy of this report.
B. Delinquency Follow-Up
This task entails the preparation and mailing of demand letters to property owners with a
delinquent Special Assessments and is performed if requested by the issuer of the Obligations or
a participating political subdivision.
(1) Preparation and Mailing of Delinquency Letters
The District will assist each participating political subdivision with the collection
of Special Assessments. Unless otherwise directed by a participating political
subdivision, the issuer of the Obligations, or the trustee for the Obligations, the
District will send reminder letters to property owners with delinquent Special
Assessments. After thirty days, if the Special Assessments are still delinquent, a
payment demand letter will be mailed informing the property owner that the
property will be subject to a tax sale if the delinquency is not cured. The District
shall cooperate with and assist the applicable participating political subdivision(s),
the issuer of the Obligations, and the County Auditor in their efforts to collect any
delinquent Special Assessments.
(2) Coordination with Delinquent Property Owners
The District will coordinate with and answer questions from delinquent property
owners to whom demand letters were mailed.
(3) Inform the issuer of Obligations Regarding Special Circumstances
The District will keep the issuer of Obligations informed of special circumstances
that come to the attention of the District, such as bankruptcies and foreclosures.
(4) Preparation of Delinquency Report
The District will prepare a delinquency report which identifies all parcels for which
demand letters were sent, any payments received, the payment date, and any
amounts still delinquent as of January 31. The District will coordinate with the
County regarding the procedures related to a tax sale for delinquent Special
Assessments.
SUPPLEMENTAL SERVICES
To the extent that the Board may determine and funds may allow, the District may provide
supplemental services designed to increase appreciation for the District, strengthen the
cohesiveness of the District, and improve communication among members of the District and
public agencies, such as providing access to data and information collected by the District,
displaying informational banners in participating political subdivisions, and attending City
Council meetings of participating political subdivisions when issues are discussed relevant to the
District.
BUDGET
The portion of the cost of the Services Plan that will be assessed to property owners which will be
determined by the board of the Special Improvement District subject to increase as the number of
Authorized Improvements financed with District financing increases. The Board will determine
how to allocate funds among the services to be provided.
By March Ist of each year, the Treasurer of the Board, as directed by the Board, will produce or
cause to be produced and make available to the members of the District and the Board an annual
report describing the services delivered, revenues received, expenditures made, and other
information about the activities of the District.
By November Ist of each year or as soon thereafter as possible, the Treasurer of the Board, as
directed by the Board, will produce or cause to be produced an annual budget for the following
calendar year.
---
[2024-102 Advanced Energy District.pdf]
CITY OF NORTH OLMSTED
RESOLUTION NO. 2024 - 102
BY:
Mayor Jones
A
RESOLUTION
APPROVING
THE
NORTHEAST
OHIO
ADVANCED ENERGY DISTRICT COMMERCIAL-INDUSTRIAL
PROGRAM PROJECT PLAN AND THE NORTHEAST OHIO
ADVANCED ENERGY SPECIAL IMPROVEMENT DISTRICT
COMMERCIAL-INDUSTRIAL PROGRAM SERVICES PLAN.
WHEREAS, as set forth in Ohio Revised Code Chapter 1710, the Ohio General
Assembly has authorized property owners to include their properties within energy special
improvement districts (“ESIDs”) upon a petition to a municipal corporation or township; and
WHEREAS, ESIDs are voluntary organizations of municipal corporations, townships,
and property owners who undertake special energy improvement projects that benefit real
property and finance those special energy improvement projects through voluntary special
assessments; and
WHEREAS, the City of Beachwood, Ohio, City of Bedford, Ohio, City of Bedford
Heights, Ohio, City of Berea, Ohio, City of Brecksville, Ohio, City of Brook Park, Ohio, City of
Brooklyn, Ohio, City of Cleveland, Ohio, City of Cleveland Heights, Ohio, City of East
Cleveland, Ohio, City of Euclid, Ohio, City of Fairview Park, Ohio, City of Garfield Heights,
Ohio, City of Independence, Ohio, City of Lakewood, Ohio, City of Maple Heights, Ohio, City
of Middleburg Heights, Ohio, Village of Moreland Hills, Ohio City of Parma, Ohio, City of
Parma Heights, Ohio, City of Rocky River, Ohio, City of Seven Hills, Ohio, City of Shaker
Heights, Ohio, City of Solon, Ohio, City of South Euclid, Ohio, City of University Heights, Ohio
Advanced Energy Special Improvement District, Inc., D/B/A: Northeast Ohio Advanced Energy
District (the District) was created under Ohio Revised Code Chapters 1702 and 1710 as an ESID;
and
WHEREAS, the City has determined to develop the Northeast Ohio Advanced Energy
Special improvement District Commercial-Industrial Program Project Plan and the Northeast
Ohio Advanced Energy Special Improvement District Commercial-Industrial Program Services
Plan (together, and as amended and supplemented from time to time, the Program Plan) as a
proposed plan for public improvements and public services under Ohio Revised Code Chapter
1710, substantially in the form attached to and incorporated into this Ordinance as Exhibit A,
and any petitions by the owners of commercial real property located within the boundaries of the
City for special assessments to finance the costs of special energy improvement projects on their
properties shall be considered, and, if approved, implemented, under and subject to the terms and
conditions of the Program Plan; and
WHEREAS, the Program Plan sets forth the terms and conditions under which the City
and the District will facilitate the financing of special energy improvement projects on residential
real property located within the City and the District; and
2
WHEREAS, this Council has determined to approve the Program Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
NORTH OLMSTED, COUNTY OF CUYAHOGA, AND STATE OF OHIO:
SECTION 1: That this Council hereby approves the Program Plan attached to and
incorporated into this Resolution as Exhibit A.
SECTION 2: That any petitions by the owners of commercial real property located
within the boundaries of the City for special assessments to finance the costs of special energy
improvement projects on their properties shall be considered, and, if approved, implemented,
under and subject to the terms and conditions of the Program Plan.
SECTION 3: That 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 4: That this Resolution shall take effect and be in force from and after the
earliest period allowed by law upon its passage and approval by the Mayor.
PASSED:
First reading:
Second reading:
Third reading:
Committee:
ATTEST:
BEATRICE TAYLOR
LOUIS J. BROSSARD
Clerk of Council
President of Council
APPROVED:
APPROVED AS TO LEGAL FORM:
MAYOR NICOLE DAILEY JONES
MICHAEL R. GAREAU, JR.
Director of Law
EXHIBIT A
PROGRAM PLAN
(See Attached)
A-1l