DEPARTMENT: Environmental Resources
FILE TYPE: Consent Action
TITLE
title
Authorization To Amend Resolution No. 25-180 For Certification Of Property Assessed Clean Energy Charges For Energy Improvements On Property In City Of Lakeville
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PURPOSE/ACTION REQUESTED
Amend certification of Property Assessed Clean Energy (PACE) charges for an energy improvement project owned by Likewise Lakeville 1, LLC Property, formerly owned by Lakeville Ind Acreage PRTNSHP, due to ownership and loan interest change and reapportionment of assessment following parcel division.
SUMMARY
By Resolution No. 25-180, the Dakota County Board of Commissioners approved a special assessment to secure repayment of a PACE loan administered by the St. Paul Port Authority (Port Authority) for property located in the City of Lakeville. Following approval of the Resolution, the property was sold to a new owner who subdivided the property affected by the special assessment (Attachment: Location Map). The Port Authority has also revised the interest rate payable for the loan, which affects the assessment imposed by the County. The Port Authority has requested that the County Board amend the prior assessment to identify the new property owner and lower interest rate. All other terms for this PACE loan remain the same.
The Port Authority has also informed staff that the new property owner asked that the County Board reapportion the assessment following the subdivision to place the assessment only on the improved parcel (22-44466-01-010) and not on the remaining unimproved parcel, as allowed under Minn. Stat. § 429.071, subd. 3. The reapportionment to the improved parcel is appropriate because the loan secured by the special assessment provides financing for energy improvements that will only be located on the improved parcel. In addition, the previously approved special assessment has not yet been added to the taxes payable for the property and will therefore not affect collection of the full assessment amount.
To facilitate updating this PACE loan, the special assessment previously imposed under Resolution 25-180 would be modified as follows:
Property Owner: Lakeville Ind Acreage PRTNSHP Likewise Lakeville 1, LLC
Parcel Number: 22-03600-07-011 22-44466-01-010
Assessment: $4,000,000
Interest Rate: 8.54% 7.98%
Finance Period: 28 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.
RECOMMENDATION
recommendation
Staff recommends that the special assessment imposed under Resolution 25-180 be modified and reapportioned as 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. Stat. § 216C.435 and 216C.436 and Chapter 429 and as needed in connection with that program; and
WHEREAS, at the Port Authority’s request, the County Board of Commissioners adopted Resolution 25-180, imposing a special assessment to secure a PACE loan to Lakeville Ind Acreage PRTNSHP in connection with energy improvements for Parcel 22-03600-07-011; and
WHEREAS, following the adoption of Resolution 25-180, the property affected by the special assessment was sold and subdivided, and the Port Authority finalized the PACE loan with the new owner with a lower interest rate; and
WHEREAS, the Port Authority has requested that the County Board amend the special assessment to identify the new owner and the revised PACE loan interest rate and reapportion the special assessment to place the special assessment only on the subdivided parcel that will be improved with the energy improvements financed with the PACE loan; and
WHEREAS, reapportioning the special assessment to the improved parcel (Parcel 22-44466-01-010) will not impair collection of the full amount of the original special assessment; 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. Stat. § 276.11 and § 276.111; and
WHEREAS, the special assessment, with accruing interest, is a lien upon the benefited property until paid.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the County Treasurer-Auditor to reapportion the full amount of the special assessment imposed under Resolution 25-180 to parcel 22-44466-01-010, extending the amended special assessment plus accruing interest on the property set forth and modified below:
Property Owner: Lakeville Ind Acreage PRTNSHP Likewise Lakeville 1, LLC
Parcel Number: 22-03600-07-011 22-44466-01-010
Assessment: $4,000,000
Interest Rate: 8.54% 7.98%
Finance Period: 28 years
Accrual Date: 1/1/2027
; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the County Treasurer-Auditor to extend the proposed special assessment plus interest on the property 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
25-180; 4/8/25
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