OSU-area hotel making $16M in energy efficiency upgrades with PACE financing

The Marriott Hotel & Residence Inn on Olentangy River Road near The Ohio State University main campus will get $16.3 million in energy efficiency upgrades funded through Commercial Property Assessed Clean Energy (C-PACE) financing, Columbus Business First reports. The financing, which was the largest publicly announced C-PACE transaction in the United States in 2018 (see our December 14, 2018 blog post), will fund “a comprehensive building envelope upgrade, lighting improvements and other efficiency measures,” according to the article. The upgrades “are expected to save significant energy costs for the hotel in coming years.” For more, read the full article.

Energy Efficiency, Project Finance

Twinsburg explores downtown redevelopment district to spur jobs and economic development

City officials in Twinsburg propose creating a downtown redevelopment district (DRD) that could generate about $2.3 million over a 10-year period to “rehabilitate historic buildings, create jobs and encourage economic development,” MyTownNEO reports. A 2016 state legislative act “allows a municipality to exempt up to 70 percent of the increased value of parcels in the DRD from property taxes, and requires parcel owners to make service payments,” according to the article. Twinsburg Director of Planning and Community Development Larry Finch said a 10-acre area around the historic First Congregational Church that includes older residences and commercial structures “would be the most likely area to create a DRD” because it “has great potential for redevelopment.” For more, read the full article.

Economic Development, Project Finance, State Updates

Summit County DFA explores plans for new financing tool

A new source of financing could be available for future Akron real estate development projects, if the Summit County Development Finance Authority (DFA) proceeds with plans for a community development financial institution (CDFI), Crain’s Cleveland reports. City and county officials “are encouraging” the DFA to pursue either creating or partnering with a CDFI, which would provide the organization with “access to more sources of capital, with fewer restrictions on where it could use that capital,” according to the article. DFA President Chris Burnham said CDFIs, which are supported by the Community Development Financial Institutions Fund within the U.S. Treasury Department, “can do the legwork for banks in terms of finding loan demand and credit-worthy borrowers in distressed and struggling communities.” For more, read the full article

Economic Development, Project Finance, State Updates

New $230M Crew SC stadium would be centerpiece of Confluence Village development

A proposal to keep the Columbus Crew SC in Columbus would not only build a $230-million stadium downtown, but also create a new “Confluence Village” west of Huntington Park and the Arena District, The Columbus Dispatch reports. The neighborhood would include the multilevel, 20,000-seat stadium with “30 suites and loge boxes and 1,900 ‘club seats,’” as well as residential buildings and 270,000 square feet of commercial and office space, “enough to accommodate 1,300 employees,” according to the article. Dr. Peter H. Edwards Jr. and family and Cleveland Browns owners Dee and Jimmy Haslam propose to buy the Crew for $150 million, and invest a total of $645 million to build the new stadium and Confluence Village, and to remodel Mapfre Stadium as a practice facility. Franklin County and the City of Columbus “are pledging $50 million each over 30 years” for site development and infrastructure. For more, read the full article

Economic Development, Project Finance, State Updates

Honda R&D Americas adding 175 new jobs at Ohio Center

JobsOhio and Honda R&D Americas recently announced a “partnership supporting a growing, high-tech workforce at Honda R&D Americas’s Ohio Center in Union County” that will create an additional 175 jobs, The Columbus Dispatch reports. Frank Paluch, president of Honda R&D Americas, said in a news release, “[a]s Honda takes on new challenges to meet the future needs of our customers, we continue to build a next-generation workforce by investing in our associates, our operations and our communities to promote the growing, high-tech presence here in Ohio.” JobsOhio will support the expansion with a $1.2M Workforce Grant, a JobsOhio R&D Center Grant, and JobsOhio Talent Acquisition Services. For more, read the full article.

Economic Development, Financial Incentives, Project Finance, State Updates

Largest C-PACE deal in U.S. for 2018: $16.3M for Columbus project

Petros PACE Finance, LLC announced “the closing of a $16.3 million Commercial Property Assessed Clean Energy (C-PACE) transaction in Columbus, Ohio with UPH Holdings, LLC, an affiliate of Continental Hospitality Group and Concord Hospitality Enterprises,” according to a Business Insider press release. The deal, which “will fund eligible upgrades to a 354-room dual branded Marriott Hotel & Residence Inn” near The Ohio State University, is “the largest publicly-announced C-PACE deal in the country to date in 2018,” according to the release. Continental secured the C-PACE financing through the Columbus Regional Energy Special Improvement District PACE program; Bricker & Eckler LLP served as PACE counsel for the project. For more, read the full press release.

Economic Development, Financial Incentives, Project Finance, State Updates

Forbes magazine says C-PACE financing is “Poised for Breakout”

Commercial Property Assessed Clean Energy (C-PACE) financing may still be “a well-kept secret,” but Forbes magazine reports that the “recent sale of a $103 million bond backed by C-PACE assets to institutional investors” may raise the program’s profile and lead to a breakout. Greg Saunders, CEO of CleanFund Commercial PACE Capital, the lender that originated the bond offering, “expects Wall Street’s acceptance of the deal to bring more attention to the tool and, ultimately, more securitizations,” according to the article. Saunders said C-PACE financing “has topped $700 million since inception and will surpass $1 billion by next year” as property owners increasingly find C-PACE “to be a superior long-term option for major upgrades.” For more, read the full article

Economic Development, Project Finance

PACE Financing Resource Center and whitepaper

Bricker's Economic Development team recently launched a collection of online resources highlighting the opportunities, challenges and mechanics of PACE financing. In addition to an interactive map identifying all of the state's PACE programs, the resource center also features a free, downloadable white paper describing the details of using this financing tool in Ohio.  

Economic Development, Energy Efficiency, Financial Incentives, Project Finance, State Updates

S&P Global upgrades Central Ohio Bond Fund to A- investment rating

Bricker & Eckler LLP congratulates the Columbus-Franklin County Finance Authority on its Central Ohio Bond Fund achieving an A- investment rating. 

In the authority’s news release, President Jean Carter Ryan said, “[a]long with our Financial Advisor, DiPerna Advisors, we’ve been able to provide creative financing solutions through our Central Ohio Regional Bond Fund to fund impactful projects in the region. With the rating upgrade, we’ll provide our clients a lower cost of funds on new and existing development projects in Central Ohio.” For more, read the full release.

Project Finance, State Updates

Lorain approves energy special improvement district

A project to rehabilitate The Broadway Building in Lorain will be eligible for a state energy direct loan, after Council members recently approved the creation of an energy special improvement district (ESID), The Chronicle reports. Developer Ariel on Broadway will be able to obtain a PACE (Property Assessed Clean Energy) loan of $1.6 million for energy improvements, a “crucial piece of financing,” according to Port Authority Director Tom Brown. Brown and attorney Caleb Bell of Bricker & Eckler LLP explained the ESID agreement to members of Council in a Committee of the Whole session. Bell explained that the $8 million project “will not have full financing” without the PACE loan. For more, read the full article

Economic Development, Energy Efficiency, Project Finance, State Updates
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