DEPARTMENT: Environmental Resources
FILE TYPE: Consent Action
TITLE
title
Certification Of Property Assessed Clean Energy Charges For Energy Improvements On Property In City Of Mendota Heights
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PURPOSE/ACTION REQUESTED
Certify Property Assessed Clean Energy (PACE) charges for an energy improvement project on the Landco Investments Mendota Heights, LLC property in the city of Mendota Heights.
SUMMARY
By Resolution No. 17-144 (March 21, 2017), the Dakota County Board of Commissioners approved a joint powers agreement (JPA) with the Port Authority of the City of Saint Paul (Port Authority) for the implementation of the PACE program within Dakota County. Through the JPA, the Port Authority is responsible for implementing and administering the PACE program in Dakota County and providing financing for energy improvements to eligible applicants. The County provides for the imposition of special assessments pursuant to Minn. Stats. §§ 216C.435 and 216C.436 and Chapter 429 as needed in connection with that program. To facilitate and encourage the financing of energy improvements on the property so benefitted, the Port Authority has approved the application of and has requested PACE special assessments on the following property (Attachment: Location Map) in Dakota County:
Property Owner: Landco Investments Mendota Heights, LLC
Parcel Number: 27-52250-01-040
Assessment: $3,500,000
Interest Rate: 8.29%
Finance Period: 29 years
Accrual Date: 1/1/2027
After the imposition of special assessments, the County will collect the assessment payments twice a year and remit them to the Port Authority for use in the repayment of the loan(s) or bond(s). The County 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. § 429.071, subd. 4.
The special assessment will be certified to the County Treasurer-Auditor and entered into the tax lists for the following year. The annual installment and interest will be collected at the same time and in the same manner as real property taxes. The special assessment, with accruing interest, is a lien upon the benefited property until paid.
The final interest rate may change at closing based on market conditions. If the rate changes, the Saint Paul Port Authority must notify the County after closing or on or before November 30, 2026, whichever occurs first. The Port Authority must also provide a memo with the updated rate, amortization schedule, term, and principal amount. If no changes are reported, the rate will remain as listed above.
RECOMMENDATION
recommendation
Staff recommends authorizing the Dakota County Treasurer-Auditor to extend the proposed special assessment plus accruing interest on the properties set forth and listed above.
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EXPLANATION OF FISCAL/FTE IMPACTS
☒ None ☐ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, the Dakota County Board of Commissioners approved the joint powers agreement (JPA) with the Port Authority of the City of Saint Paul (Port Authority) by Resolution No. 17-144 (March 21, 2017), designating the Port Authority to implement and administer Property Assessed Clean Energy (PACE) improvement financing on behalf of the County and providing for the impositions of special assessments pursuant to Minn. Stats. §§ 216C.435 and 216C.436 and Chapter 429 and as needed in connection with that program; and
WHEREAS, the County understands that the Port Authority will issue its PACE special assessment revenue bonds to finance the improvements and that the sole security for the bond will be special assessments imposed by the other cities and/or counties participating in PACE; and
WHEREAS, after imposition of the special assessments, the County will collect the assessment payments twice a year and remit them to the Port Authority for use in the repayment of the loan(s) or bond(s); and
WHEREAS, the County 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. § 429.071, subd. 4; and
WHEREAS, the special assessment will be certified to the County Treasurer-Auditor and entered into the tax lists for the following year; and
WHEREAS, the annual installment and interest for current and delinquent collections or payoffs will be collected and disbursed at the same time and in the same manner as real property taxes, in accordance with Minn. Stats. §§ 276.11 and 276.111; and
WHEREAS, the special assessment, with accruing interest, is a lien upon the benefited property until paid; and
WHEREAS, the county understands the final interest rate may change at closing based on market conditions and if the rate changes, the Saint Paul Port Authority must notify the County after closing or on or before November 30, 2026, whichever occurs first, with a memo including the updated rate, amortization schedule, term, and principal amount.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the County Treasurer-Auditor to extend the proposed special assessment plus accruing interest on the property set forth and listed below:
Property Owner: Landco Investments Mendota Heights, LLC
Parcel Number: 27-52250-01-040
Assessment: $3,500,000
Interest Rate: 8.29%
Finance Period: 29 years
Accrual Date: 1/1/2027
; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners authorizes the County Treasurer-Auditor to extend the proposed special assessment plus interest on the properties identified herein and record this assessment against the properties with the Dakota County Recorder.
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PREVIOUS BOARD ACTION
17-144; 3/21/17
ATTACHMENTS
Attachment: Location Map
BOARD GOALS
☐ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☒ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Nikki Stewart
Author: Nikki Stewart