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We need to examine the rest of
the Staff
Report that Mr Adkins has directed his staff to draft concerning a
grant agreement with Mike Allen Real Estate Holdings, LLC. Quote
in
blue:
BACKGROUND
and FINDINGS
Mike
Allen Real Estate Holdings, LLC dba BMW Motorcycles of Greater
Cincinnati is purchasing parcels Q6511011000034, Q6511014000060,
Q6511014000059, Q6511014000057, Q6511014000055 from the City of
Middletown for his project to renovate the old Middletown Senior
Center building located at 140 N. Verity Parkway and create a BMW
branded motorcycle dealership at that location. The dealership will
prove new and used motorcycles, parts, service, and general
merchandise to its customers. The project would include an investment
of $1.273 million dollars in construction and upgrades to the
facility, including separating all utilities from the City’s
municipal building, and will create twelve (12) new full-time jobs
and create $375,000 in new payroll. The project will start
construction during the first quarter of 2018 and be completed by
December 31, 2018. This
grant will go towards the cost of separating the HVAC, water,
electric, and gas utilities from the City Municipal Building. The
Developer will be participating in the newly formed PACE program to
assist with this transition and other energy efficiency upgrades. The
total cost of separating the utilities from the City is approximately
$200,000.
Note
that the “grant
will go towards the cost of separating the HVAC, water, electric, and
gas utilities from
the City Municipal Building.” Upon
a walk around
inspection of the property you will find a new gas meter has already
been installed; a large electric panel is there, ready to simply be
hooked up; and the city has agreed to “cap
off” the
water
line but they will probably just install a new water meter then and
there. So, what of these changes could possibly cost $200,000??
because
the
Staff Report says
“The total cost of separating
the utilities from the City
is approximately $200,000.” In
reality, all of this
“separating
the utilities”
is
quite ordinary and would cost perhaps $1000. Mr
Adkins and MARH need to explain
exactly what the additional $199,000
is installing/separating and what exactly
are the “other energy efficiency upgrades??
It
certainly would be very strange if the HVAC is connected to the city
building’s
HVAC. And,
historically,
that building was air conditioned as part of the original design by
HUD. Even
a new energy
efficient HVAC
isn’t worth $199.000.
And
the ESID and PACE program requires limiting investments
to high return in terms of gains in alternative or energy efficiency.
Mr
Adkins has chosen to keep crucial plans for the energy efficient
programs (if there are any) on file in the office of Economic
Development. Council
and the public should have ready access to these plans before a vote
on their adoption.
Mr
Adkins, do these plans exist? If so, why does their disclosure have
to be by special request at the city building according
to
your
Resolution
No. R2017-40 which states:
The
term “Improvements”, as used in the Agreement shall be deemed to
have reference to the improvements as provided and specified in the
Exhibit “B”.
When
you look up Exhibit B ….. it
says:
Exhibit
B (Plans) Exhibit B (Plans)
The
preliminary site plan proposals and all accompanying documents, which
constitute Exhibit “B” to this Agreement, are maintained on file
in the office of Economic Development.
So,
it
seems that neither
the council nor the public has had access to the plans, assuming that
they exist.
In
addition,
the Staff
Report says “The
Developer will be participating in the newly formed PACE program to
assist with this
transition
and other energy efficiency upgrades.” Here’s
the
purpose of
a
PACE program:
Published
on the internet by Lexology, a daily legal news feed service.
The
PACE policy framework described assessment-based financing as a known
public finance tool:
In
a typical assessment district a local government issues bonds to fund
projects with a public purpose such as streetlights, sewer systems or
underground utility lines.
In
other words, PACE was designed to extend market acceptance of known
security mechanisms such as property tax-based assessments and tax
lien status for unpaid assessments to facilitate alternative energy
and energy efficiency projects.
But
Mr Adkins can’t
issue bonds, so
he wants
to give away $200,000 in city funds thru a grant that he
will execute with the approval of city council.
That
isn’t really within the PACE policy framework of financial tools.
And
with the 12 year 100% tax abatement a tax-based assessment is not
possible.
In
the staff report no
mention was made as to what
“Developer will
be
participating
in”
would consist of or what
“the other energy efficiency upgrades” would be and at what cost,
IF
THEY EVER OCCUR.
And
if they don’t occur isn’t that fraud, especially
if the $200,000 grant
money disappears
and no energy efficient upgrades occur???
We
have no assurance of
any intention of Mike Allen Real Estate Holdings to participate in an
energy efficiency program ... after all the posturing,
smoke
blowing
and fund finagling!!
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"The only thing necessary for the triumph of evil, is for good men to do nothing" Edmond Burke
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