HomeMy Public PortalAbout16-9176 Property Assessed Clean Energy Program and Joining the Clean Energy Green Program Sponsored By: City Manager
RESOLUTION NO. 16-9176
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF OPA-LOCKA, FLORIDA, CREATING A PROPERTY
ASSESSED CLEAN ENERGY PROGRAM AND JOINING THE
CLEAN ENERGY GREEN CORRIDOR PROGRAM IN
ACCORDANCE WITH SECTION 163.08. OF THE FLORIDA
STATUTES; ADOPTING AN INTERLOCAL AGREEMENT
PURSUANT TO SECTION 163.01 OF THE FLORIDA
STATUTES RELATING TO THE CORRIDOR; PROVIDING
FOR AUTHORIZATION; PROVIDING FOR
INCORPORATION OF RECITALS; AND PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, in 2010, the Florida Legislature adopted HB 7179 (Section 163.08, F.S.) (the
"Bill"), which allows local governments to create Property Assessed Clean Energy (PACE)
programs in order to provide the upfront financing for energy conservation and efficiency (i.e.
energy-efficient heating, cooling, or ventilation systems), renewable energy (i.e. solar panels), wind
resistance (i.e. impact resistant windows) and other improvements that are not inconsistent with state
law (the "Qualifying Improvements"); and
WHEREAS, PACE programs not only assist residents and business owners in reducing their
carbon footprint and energy costs, but also stimulate the local economy by the creation of needed
construction jobs; and
WHEREAS, the Bill authorizes local governments that create PACE programs to enter into
a partnership in order to provide more affordable financing for the installation of the Qualifying
Improvements; and
WHEREAS, given the wide spread energy and economic benefits of PACE programs, the
City Commission desires to join the Clean Energy Green Corridor PACE District in order to provide
the upfront financing to property owners for Qualifying Improvements and to enter into an interlocal
with the District for the purpose of financing such improvements; and
WHEREAS, the City Commission finds that this Resolution is in the best interest and
welfare of the residents of the City of Opa-locka.
Resolution No. 16-9176
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF OPA-LOCKA, FLORIDA, AS FOLLOWS:
Section 1. Recitals. The above recitals are true and correct and are incorporated
herein by this reference.
Section 2. Creation of PACE Program. The City Commission hereby creates a PACE
Program pursuant to Section 163.08, Florida, for the purpose of providing upfront financing to
property owners for Qualifying Improvements.
Section 3. Adoption of Interlocal Agreement. The City Commission hereby approves
an interlocal agreement pursuant to Section 163.01, Florida Statutes between the City of Opa-locka
and the Clean Energy Green Corridor District in substantially the form attached hereto as Exhibit
"A," relating to the Clean Energy Green Corridor (the "Interlocal Agreement").
Section 4. Authorization. The Opa-locka City Manager or designee is hereby
authorized to execute the Interlocal Agreement.
Section 5. Effective Date. This Resolution shall take effect immediately upon adoption.
PASSED and ADOPTED this 13th day of April, 2016.
'yra L. "aylor
ayor
Attest: Approved as to form and legal sufficiency:
A
( \
Inna Flores Vincent T. Brown, Esq.
Clerk The Brown Law Group,Y p,
City Attorney
Resolution No. 16-9176
Moved By: COMMISSIONER SANTIAGO
Seconded By: COMMISSIONER PINDER
FINAL VOTE AT ADOPTION: 4-0
Commissioner Pinder: YES
Commissioner Kelley: YES
Commissioner Santiago: YES
Vice Mayor Holmes: YES
Mayor Taylor: NOT PRESENT
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City of Opa-locka
Agenda Cover Memo
Commission Meeting Item Type: Resolution Ordinance Other
Date: April 13,2016 (Enter X in box) X
Yes No Ordinance Reading: 1st Reading 2°d Reading
Fiscal Impact: (Enter X in box) X
Public Hearing: Yes No Yes No
X (Enter X in box) X X
Funding Source: (N/A) Advertising Requirement: Yes No
N/A (Enter X in box) X
Contract/P.O. Required: Yes No
(Enter X in box) X RFP/RFQ/Bid#: N/A
Yes No Strategic Plan Priority Area: Strategic Plan ObjJStrategy:
Enhance Organizational D N/A
Strategic Plan Related Bus. &Economic Dev 1
(Enter X in box) X Public Safety D
Quality of Education D
Qual.of Life&City Image •
Communication D
Sponsor Name City Manager Department: Community Development
Short Title:
Resolution of the City Commission of the City of Opa-locka, Florida, to create a property assessed clean energy program and to
join the clean energy green corridor program in accordance with section 163.08 Florida Statutes and to adopt an interlocal
agreement persuant to section 163.01 Florida Statutes, in accordance with the Clean Energy Green Corridor Program; Providing
for authorization and providing for an effective date.
Staff Summary
The City Administration has had meetings with experts of the Property Assessed Clean Energy (PACE) program and
the Clean Energy Green Corridor Program. Through those meetings, City Administration has determined that local
governments that create PACE programs and join the Clean Energy Green Corridor PACE District, as provided in
Florida Legislature HB 7179, provides for more affordable upfront financing to property owners for the installation of
qualifying improvements. Those improvements include energy-efficient heating, cooling, or ventilation systems, and
Resolution PACE Program 03-29-16 1
renewable energy such as solar panels and wind resistance such as impact resistant windows and other improvements
that are consistent with state law. These improvements, afforded through the program, not only assist residents and
business owners in reducing their carbon footprint and energy costs, but also stimulate the local economy by the
creation of needed construction jobs. The qualifying improvements are financed through the program and the cost is
assessed to the property owner as a Non-Ad Valorem Tax to be repaid through yearly property tax payments within 20
years.
Proposed Action:
Staff recommends approval of this Resolution.
Attachments:
1. Exhibit"A" Green Corridor Program Guidelines
2. Supportive Legislation
3. Resolution Draft
4. Green Corridor PACE Proposal/Agreement
Resolution PACE Program 03-29-16 2
001°6(4
ry,•
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QAF'ORASEQ
Memorandum
TO: Myra L. Taylor, Mayor
Timothy Holmes, Vice Mayor
Terrence Pinder, Commissioner
Joseph L. Kelley, Commissioner
Luis B. Santiago, Commissioner
FROM: David Chiverton, City Manager
DATE: April 13, 2016
RE: RESOLUTION OF THE CITY COMMISSION OF THE CITY OF OPA-
LOCKA, FLORIDA, TO CREATE A PROPERTY ASSESSED CLEAN
ENERGY PROGRAM AND TO JOIN THE CLEAN ENERGY GREEN
CORRIDOR PROGRAM IN ACCORDANCE WITH THE CLEAN ENERGY
CORRIDOR PROGRAM
Request:
Resolution of the City Commission of the City of Opa-locka, Florida, to create a property assessed clean
energy program and to join the clean energy green corridor program in accordance with section 163.08
Florida Statutes and to adopt an interlocal agreement pursuant to section 163.01 Florida Statutes, in
accordance with the Clean Energy Green Corridor Program; Providing for authorization and providing for
an effective date.
Description:
The City Administration has had meetings with experts of the Property Assessed Clean Energy (PACE)
program and the Clean Energy Green Corridor Program. Through those meetings, City Administration has
determined that local governments that create PACE programs and join the Clean Energy Green Corridor
PACE District, as provided in Florida Legislature HB 7179, provides for more affordable upfront financing to
property owners for the installation of qualifying improvements. Those improvements include energy-
efficient heating, cooling, or ventilation systems, and renewable energy such as solar panels and wind
resistance such as impact resistant windows and other improvements that are consistent with state law.
These improvements, afforded through the program, not only assist residents and business owners in
reducing their carbon footprint and energy costs, but also stimulate the local economy by the creation of
needed construction jobs. The qualifying improvements are financed through the program and the cost is
assessed to the property owner as a Non-Ad Valorem Tax to be repaid through yearly property tax
payments within 20 years.
Financial Impact:
There is no financial impact to the City,
Resolution PACE Program 03-29-16 1
Implementation Time Line:
Immediately
Legislative History:
None
Planning Council Recommendation:
N/A
Staff Recommendation:
Staff recommends approval of this legislation.
Attachment(s)
1. Exhibit "A" Green Corridor Program Guidelines
2. Supportive Legislation
3. Resolution Draft
4. Green Corridor PACE Proposal/Agreement
Prepared By: Gerald Lee, Zoning Official
Gregory Gay, Director
Community Development Department
Resolution PACE Program 03-29-16 2
INTERLOCAL AGREEMENT BETWEEN THE GREEN CORRIDOR PROPERTY AS-
SESSMENT CLEAN ENERGY (PACE) DISTRICT AND THE CITY OF OPA-LOCKA
This Interlocal Agreement (the "Interlocal Agreement") is entered into this _day of
, 2016 by and between the Green Corridor Property Assessment Clean Energy (PACE) Dis-
trict, a public body corporate and politic (the "Green Corridor"), and City of Opa-locka, a Florida
municipal corporation (Collectively, the "Parties") for the purpose of providing a PACE program
within the City of Opa-locka.
RECITALS
WHEREAS, on August 6, 2012, the Green Corridor was created as a separate legal entity
pursuant to Section 163.01(7), Florida Statutes, to finance qualifying improvements in accordance
with Section 163.08, Florida Statutes; and
WHEREAS, on Date of Resolution, the City of Opa-locka adopted Resolution Reso Num-
ber agreeing to join the Green Corridor in an Non-Exclusive order to finance qualifying improve-
ments in the City of Opa-locka in accordance with Section 163.08, Florida Statutes; and
WHEREAS, the Parties have determined that entering into this Interlocal Agreement is in
the best interest and welfare of the property owners within the Green Corridor and the City of Opa-
locka.
NOW, THEREFORE, in consideration of the terms and conditions, promises and cove-
nants hereinafter set forth, the Parties agree as follows:
1. Recitals Incorporated. The above recitals are true and correct and incorporated
herein.
2. Amended and Restated Interlocal Agreement. Except as provided herein, The Par-
ties agree that the City of Opa-locka shall be subject to all terms, covenants, and
conditions of the Amended and Restated Interlocal Agreement recorded in the Offi-
cial Records of Miami-Dade County at Official Records Book 28217, Page 0312.
3. Voting Rights. The Parties agree that the City of Opa-locka shall be a nonvoting
member of the Green Corridor for the term of this Interlocal Agreement. The Muni-
cipality shall appoint one board member to serve as the nonvoting member of the
Green Corridor.
[Remainder of page intentionally left blank.]
IN WITNESS WHEREOF, the Parties hereto have made and executed this Interlocal
Agreement on this day of , 2016.
ATTEST: GREEN CORRIDOR PROPERTY AS-
SESSMENT CLEAN ENERGY
(PACE) DISTRICT
By: By:
District Secretary District Manager
APPROVED AS TO FORM
AND LEGAL SUFFICIENCY:
By:
Weiss SerotaHelfmanPastoriza Cole
And Boniske, P.L., District Attorney
ATTEST: MUNICIPALITY
By: By:
Joanna Flores, City Clerk David Chiverton, City Manager
APPROVED AS TO FORM
AND LEGAL SUFFICIENCY:
By:
Vincent Brown, City Attorney
CLEAN ENERGY: ''
GREEN CORRIDOR
CLEAN ENERGY GREEN CORRIDOR
PROGRAM GUIDELINES
www.CleanEnergyGreenCorridor.com
In order to apply for financing under the Clean Energy Green Corridor (the "District") Program (the
"Program") the property owner must read, accept, and comply with the terms provided herein (the
"Program Terms").
These Program Terms, along with the documents property owners execute in connection with the
Program (the "Program Documents"), establish the terms of the District Program. Property owners
should become familiar with and understand the provisions of the Program Terms. By executing the
Program Documents, the property owner agrees to all of the Program Terms. The District reserves the
right to amend these Program Terms from time to time as described below. The District has contracted
with Ygrene Energy Fund Florida, LLC (the "Administrator") to administer the program. The District will
share information with the Administrator and other third parties as necessary to administer the
Program.
1. Purpose of the Program
The Program is intended to assist property owners in the District in financing the installation of
energy efficiency, wind resistance and renewable energy improvements as defined in Section
163.08, Florida Statutes (the "Qualifying Improvements"). The financing and the costs of
administering the Program will be repaid through non-ad valorem special assessments added to the
property tax bills paid by only those property owners who voluntarily choose to participate in the
Program. There may be other types of financing available to property owners and the District does
not guarantee that the Program is the best financing option. Property owners should obtain help in
selecting the option that is most appropriate for their particular situation.
2. Summary of the Program Process
As discussed in more detail below, in order to receive funding from the Program, property owners
must complete the following steps for all property types:
a. Determine that they meet the eligibility requirements. (see "Eligibility" below).
b. Apply online or submit a paper application for the Program. (see "Application" below).
c. Agree to these Program Terms and pay an application fee as part of the application process.
d. At least 30 days before entering into a financing agreement (the "Financing Agreement"), the
property owner shall provide to the holders or loan servicers of any existing mortgages
encumbering or otherwise secured by the property a notice of the owner's intent to enter into a
Financing Agreement together with the maximum principal amount to be financed and the
maximum annual assessment necessary to repay that amount. The Program administrator will
supply the property owner with the necessary documents.
e. The Administrator must approve the completed application.
f. A contractor certified (the "Certified Contractor") through the Program must be selected by the
property owner to install the Qualifying Improvements. The Certified Contractor must submit a
bid for the installation of Qualifying Improvements on the property
g. The District will record the signed Finance Agreement or a summary memorandum of such
agreement within 5 days of signing. Upon disbursement of funds, the District will record an
addendum to the Financing Agreement indicating the final amount financed which will be
annually assessed (the "Settlement Statement").
h. The District will authorize the release of funds to the property owner after project completion.
Property owners may choose to assign payment directly to their Certified Contractor.
i. Pay the special assessments in the amounts and at the times specified in the Settlement
Statement.
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3. Eligibility
The Program is available to all privately owned property within the District. The financing terms and
conditions set forth in these Program Terms are applicable to financings for the installation of
Qualifying Improvements in residential and non-residential properties (as determined by guidelines
established by each member municipality of the District). In order to participate in the Program, a
property owner must meet and complete the following requirements and steps:
a. The property to be improved with the Qualifying Improvements must be located within the
District.
b. All holders of fee simple title to the subject property or, for corporate owners their designee(s),
must sign the Program Documents. Therefore, before submitting an application, property owners
must ensure that all property owners will agree to participate in the Program on the terms set
forth in these Program Terms.
c. In the case of renewable energy and energy efficiency retrofits, the property owner must agree to
provide the Certified Contractor or an energy auditor with access to the property's utility usage
history and information to enable the Program to analyze energy savings.
d. All property taxes and any other assessments levied on the same bill as property taxes must be
paid and have not been delinquent for the preceding 3 years or the property owner's period of
ownership, whichever is less. There shall be no involuntary liens, including, but not limited to,
construction liens on the property. There shall be no notices of default or other evidence of
property-based debt delinquency recorded during the preceding 3 years or the property owner's
period of ownership, whichever is less. The property owner must be current on all mortgage debt
on the property, with no more than one 30 day late payment in the past 12 months. Property
owner must not have any notices of bankruptcy for the past twelve months.
e. The total debt of the property, including mortgages and equity lines of credit, secured by the
property, must not exceed 90% of the fair market value of the property. The administrator will
provide you with the current fair market value of the property.
f. It is critical to the health of the Program that property owners pay their special assessments and
other property-related obligations in full on a timely basis. Consequently, the District reserves the
right, in its sole discretion, to request supplemental information from owners and to deny
applications based on any negative reports.
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4. Application
All property owners interested in applying to the Program must submit the initial application
documents listed below along with the required application fee. At the time of application, property
owners must agree to the Program Terms. Project applications will receive an administrative point of
contact from the Administrator, who will assist in the process.
a. Application Form, either submitted online or printed and signed, and application fee.
b. Upon review of the application by the Administrator, applicants will receive either a Notice of
Approval or a Notice of Denial.
c. Upon receipt of a Notice of Approval, applicants must obtain Lender Notification forms, available
either on-line or from the Administrator, and submit them to their lender(s). Property owners will
be required to provide to the Administrator a Proof of Mailing for Lender Notification forms. This
process can actually be done by the property owner before applying; however, this is left to the
discretion of the property owner. This is not required if the property is owned free and clear.
d. Upon receipt of a Notice of Approval, applicants can proceed to submit their proposed project for
approval (See "Project Approval" below).
e. Should an application be denied, the notice will include recommend remedial action that may be
available to the applicant.
5. Qualifying Improvements; Certified Contractors; Maximum Funding
The following general provisions apply to all projects submitted for funding under the Program:
a. Program financing may only be used to finance those improvements that are described in the
list of Qualifying Improvements (see appendix I). Property owners are responsible to ensure that
improvements installed on their property qualify under the program.
b. The Program is a financing program only. Neither the District nor the Administrator is
responsible for installation of the Qualifying Improvements or their performance.
c. The Qualifying Improvements must be affixed to the building or facility that is part of the property
and shall constitute an improvement to the building or facility or a fixture attached to the building
or facility. Appliances built-in to cabinetry qualify, but freestanding units do not. Built-in lighting
fixtures qualify, but replacement of light bulbs alone cannot be financed. Questions regarding
• Qualified Improvements should be directed to the Administrator.
d. Qualifying Improvements must be installed by Certified Contractors who meet the eligibility
criteria set forth for the specific category of work being financed, and who are listed on the
Certified Contractors list that may be obtained on-line or from the Administrator.
e. The Program requires a minimum funding request of$2,500.
f. The Program will approve maximum funding requests in an amount such that the aggregate
amount of any fixed assessment liens on the property and the amount of the proposed project to
be completed do not exceed 100% of the fair market value of the property. Maximum financing
is initially set at the lesser of 20% of the just value of the property as determined by the property
appraiser or 15% of the fair market value. For proposed commercial projects, the Certified
Contractor must submit evidence that the project provides either an SIR of one or greater or a
Benefits-to-Cost Ratio (BCR) of one or greater.
g. The Program Administrator can provide guidance and software to the Certified Contractor to
assist in calculating these ratios. The Program will not provide financing for any costs in excess
of the maximum amounts allowed under FL law.
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6. Project Approval
Upon receipt of a Notice of Approval of a Program application and following verification of lender
notification being sent, the property owner may proceed towards project funding. Following are the
steps required to obtain authorization for funding under the Program:
a. Select a Certified Contractor from the Certified Contractor List. This list is available on-line and/or
from the Administrator. Applicants may wish to obtain bids and advice from more than one
Certified Contractor.
b. Work with Certified Contractor(s) to determine the scope and cost of your project, and verify that
the proposed work qualifies for funding under the Program. Once Qualifying Improvements are
selected, obtain a formal bid from one or more Certified Contractors.
c. Following review of the project bid(s) select a Certified Contractor to coordinate the project with
the Program Administrator.
d. Upon review of the proposed project and the bid(s) submitted for the work, the Administrator will
issue either a Project Approval Letter or a Project Denial Letter. This communication will be
provided by email unless directed otherwise by the applicant.
e. Once the project is approved, applicants will be required to execute the Financing Agreement.
This is the contract that authorizes the Administrator and the District to record on the property tax
record the assessment that will secure the project financing. The Financing Agreement must be
recorded prior to commencement of construction.
f. Once the Financing Agreement is recorded, applicants will receive a Notice to Proceed. Upon
receipt of this notice, applicants can authorize commencement of the project. If construction
begins prior to receipt of a Notice to Proceed, applicants run the risk of not qualifying for
Program funding.
g. If the project is denied, the Project Denial Letter will outline remedial action that may be available
to the applicant.
7. Funding
a. Once the Certified Contractor has completed installation of the Qualifying Improvements,
property owners must submit a funding request and the project verification documents. Contact
the Administrator for a complete list of required forms and agreements. Property owner may
request that the Certified Contractor receive payment directly from the Administrator.
b. If the funding request is not submitted to the Administrator within 90 calendar days after the date
that appears on the Finance Agreement , the interest rate may be reset (See "Financing Costs;
Interest Rate below).
c. Upon review of the project record the Administrator will confirm its eligibility for funding and
calculate the final assessment details. Prior to the issuance of checks, the property owner must
approve and sign the final Settlement Proforma Statement.
d. In the event a property owner cancels financing after submitting a request for funding, all
expenses incurred by the Program for recording documents, preparing bond documents and
releasing any liens will be the responsibility of the property owner. Property owners may be
responsible for expenses incurred by Certified Contractors according to their contracts. The
District has no responsibility to release funds to property owners or Certified Contractors for work
that has not been completed for any reason.
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8. Financing Costs; Interest Rate
a. In order to receive funding, property owners agree to pay special assessments in an amount
equal to (i) the principal amount received from the Program, (ii) interest on the principal amount
received from the Program and (iii) initial and on-going administrative expenses (see Appendix
II).
b. Principal. This is the total of all financed project costs. These may include costs associated with
implementing the project such as closing fees, permits, audit expenses, application fees and
capitalized interest (see "Capitalized Interest" below).
c. Interest Rate. The rate of interest charged on the amount funded will be fixed for the full term of
the assessment. The rate will be set for 90 days on the date that the Finance Agreement is
prepared by the Administrator. Property owners can monitor interest rates on the Program
website or by contacting the Administrator.
d. Capitalized Interest. Because of administrative delays involved in placing assessments on
County tax rolls, capitalized interest will be added to the assessment for the time period between
funding of the project and the first day of the year in which the bond for each project is issued.
9. Repayment Terms; Special Assessments
a. Repayment Terms. Following placement of the assessment on the tax roll, the property owner
will be obligated to pay the special assessments specified in the Project Approval.
b. Prepayment Terms: The Special Assessment can be paid off at any time. There is a 5%
prepayment penalty which will be owed on any outstanding principal balance at the moment the
prepayment is made.
c. Special Assessments. A property owner must pay the agreed-upon special assessment
regardless of personal financial circumstances, the condition of the property, or the performance
of the Qualifying Improvements. Property owners should not apply for financing if they are not
certain they can meet the assessment obligations. The failure to pay property taxes in full or
in part will result in financial repercussions including penalties, interest, the sale of a tax
certificate on the property, and possible loss of the property. If property owners use an
escrow account to pay their property taxes, they must notify the escrow company of the special
assessment. In such cases, property owners will need to increase monthly payments to the
escrow account by an amount equivalent to the annual assessment payments, divided by 12
months.
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10. Compliance with Existing Mortgages
Recordation of the assessment on the tax roll will establish a continuing lien as security for the
obligation to pay the special assessments. In accordance with Florida law, the lien securing the
obligation to pay the special assessments will be senior to all private liens, including existing
mortgage(s). Many mortgage and loan documents limit the ability of a property owner to place senior
liens on property without the consent of the lender, or authorize the lender to obligate borrowers to
prepay the senior obligation. Recently, the Federal Housing Finance Agency has issued policy
guidelines that question the validity and assessment status of PACE assessments. Program
participants should confirm with their lender(s) that participation in the Program does not adversely
impact their rights with respect to any existing loan documents. Property owners are required to
notify their lenders prior to a funding request and to provide the Administrator with a copy of the
letter and proof of mailing. The Administrator will provide required forms for lender notification,
but ultimate responsibility for addressing issues with existing lenders remains with property
owners.
11. Transfer or Resale of the Subject Property
Special Assessments run with the property. In the event of a sale, unless other arrangements are
made prior to closing, the annual payments will appear on the new owner's tax bill. The property
owner must be aware of the fact that the Federal Housing Finance Agency has made a statement
indicating that they will not give a mortgage to a potential buyer of a residential property if the
property has a PACE special assessment recorded against it. If this is the case, the assessment
can be prepaid at the time of sale (see "Repayment Terms; Special Assessments" above).
Ownership of any funded Qualifying Improvements (including light bulbs) transfer to the new owner.
and may not be removed from the property. Program participants agree to make all legally required
disclosures regarding the existence of the assessment lien on the property in connection with any
sale.
At or before the time a purchaser executes a contract for the sale and purchase of any property for
which a non-ad valorem assessment has been levied and has an unpaid balance due, the seller
shall give the prospective purchaser a written disclosure statement in the following form, which shall
be set forth in the contract or in a separate writing:
QUALIFYING IMPROVEMENTS FOR ENERGY EFFICIENCY, RENEWABLE ENERGY, OR WIND
RESISTANCE.—The property being purchased is located within the jurisdiction of a local
government that has placed an assessment on the property pursuant to s. 163.08, Florida Statutes.
The assessment is for a qualifying improvement to the property relating to energy efficiency,
renewable energy, or wind resistance, and is not based on the value of property. You are
encouraged to contact the county property appraiser's office to learn more about this and other
assessments that may be provided by law.
12. Rebates and Taxes
Participation in this Program does not reduce rebates available through federal, state, utility
sponsored and District rebate programs. More information on available programs can be found on-
line or through Certified Contractors and other vendors. Participants should consult with their tax
advisors with respect to the state and federal tax benefits and consequences of participating in the
Program. Neither the District nor the Administrator is responsible for the tax considerations of
participating in the Program.
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13. Changes in State and Federal Law
The District's ability to continue to finance the Program is subject to a variety of state and federal
laws. If those laws or the judicial interpretation thereof changes after a property owner applies for the
Program, but before the District fulfills the funding request, the District may be unable to fulfill the
request. In such event, the District shall have no liability as a result of any such change in law or
judicial interpretation.
14. Changes in Program Terms
The District reserves the right to change the Program Terms at any time without notice. However, no
such change will affect a participant's obligation to pay special assessments as set forth in the
Settlement Statement. Participation in the Program will be subject to the Program Terms in effect
from time to time.
APPENDIX I
QUALIFYING IMPROVEMENTS
The following list represents improvements that will be Qualifying Improvements under the District
PACE Program. Additional and/or alternative measures may be approved on a case-by-case basis
and/or as the list is modified from time to time in compliance with State Law or instructions from the
District.
1. Energy Efficiency
a. Air Sealing and Ventilation
• Air Filtration
• Building Envelope
• Duct Leakage and Sealing
• Bathroom, ceiling, attic, and whole house fans
b. Insulation
• Defect Correction
• Attic, floor, walls, roof, ducts
c. Weather-Stripping
d. Home Sealing
e. Geothermal Exchange Heat Pumps
f. HVAC Systems
g. Evaporative Coolers
• Cooler must have a separate ducting system from air conditioning and heating ducting
system
h. Natural gas storage water heater
• Energy Star listed
i. Tankless water heater
j. Solar water heater system
k. Reflective insulation or radiant barriers
I. Cool roof
m. Windows and glass doors
• U value of 0.40 or less and solar heat gain coefficient of 0.40 or less
n. Window filming
o. Skylights
p. Solar tubes
q. Additional building openings to provide addition natural light
r. Lighting
• Energy Star listed (only retrofits)
s. Pool equipment
• Pool circulating pumps
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2. Other Non-Residential Building Measures
The following measures are allowed for commercial and non-residential buildings, in addition to all
applicable energy efficiency measures listed above:
a. Occupancy-Sensor Lighting Fixtures
• SMART Parking Lot Bi-Level Fixture
• SMART Parking Garage Bi-Level Fixtures
• SMART Pathway Lighting
• SMART Wall Pack Fixtures
b. Task Ambient Office Lighting
c. Classroom Lighting
d. Refrigerator Case LED Lighting with Occupancy Sensors
e. Wireless, daylight lighting controls
f. Kitchen Exhaust Variable Air Volume Controls
g. Wireless HVAC Controls & Fault Detection
3. Solar Equipment
a. Solar thermal hot water systems
b. Solar thermal systems for pool heating
c. Photovoltaic systems (electricity)
d. Emerging technologies—following the Custom Measures Track
4. Wind Resistance Measures
a. Wind hardening measures can be deployed through this Program. The measures described
qualify.
b. Improving the strength of the roof deck and foundation attachment.
c. Creating a secondary water barrier to prevent water intrusion.
d. Installing wind-resistant shingles or other roofing.
e. Installing gable-end bracing.
f. Reinforcing roof-to-wall connections.
g. Installing storm shutters.
h. Installing perimeter-opening protections.
i. Raising building elevations.
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5. Custom Measures
The Custom Measures Track is a process by which the Energy Center Manager and/or staff can
evaluate and approve funding for projects that are not `off the shelf" improvements listed in the
Qualifying measures. These custom projects may involve large scale industrial or commercial energy
efficiency improvements; processing or industrial mechanical systems; and renewable energy
generation from sources such as geothermal and fuel cells. The following are examples of custom
measures that will be considered for Clean Energy Green Corridor funding:
a. Custom Energy Efficiency Measures
• Building energy management controls
• HVAC duct zoning control systems
• Irrigation pumps and controls
• Lighting controls
• Industrial and process equipment motors and controls
• Electric Vehicle Charging Equipment
b. Custom Energy Generation Measures
• Fuel Cells
• Wind turbine power system
• Natural gas
• Hydrogen fuel
• Other fuel sources (emerging technologies)
• Co-generation (heat and energy)
10
APPENDIX II
ADMINISTRATIVE FEES AND CLOSING COSTS*
RESIDENTIAL
Application Fee $50.00
Processing&Underwriting Fee $125.00
Jurisdiction Cost Recovery Fee** See Table 1
Recording& Dispersement Fee $100.00
Escrow Fee $90.00
Energy Pro Fee $50.00
COMMERCIAL
Application Fee $250.00
Processing& Underwriting Fee $250.00
Jurisdiction Cost Recovery Fee** See Table 1
Recording&Dispersement Fee $250.00
Escrow Fee $90.00
Energy Pro Fee See Table 2
Table 1
JURISDICTION COST RECOVERY FEE**
Project Size Fee
RESIDENTIAL < $62,500 $125.00
$62,500 $75+(.0008 x Project Size)
COMMERCIAL <$250,000 $225.00
>_$250,000 $75+(.0008 x Project Size)
Table 2
ENERGY PRO-COMMERCIAL PROJECTS
Project Size Fee
<_$100,000 $450.00
$100,001 -$200,000 $600.00
$200,001 -$300,000 $750.00
$300,001+ $900.00
*A$37 administrative fee will be added to the assessment in relation to tax collection, and in Miami-Dade
County,the tax collector may add a 1%collection fee along with the special assessment.
* Fees may vary based on current market conditions
11
IN THE CIRCUIT COURT OF THE
SECOND JUDICIAL CIRCUIT IN AND
FOR LEON COUNTY,FLORIDA
GREEN CORRIDOR PROPERTY CIVIL ACTION NO. 2012 CA 002897
ASSESSMENT CLEAN ENERGY (PACE)
DISTRICT, a public body corporate and
politic, VALIDATION OF NOT TO EXCEED
$500,000,000 GREEN CORRIDOR
Plaintiff, PROPERTY ASSESSMENT CLEAN
ENERGY (PACE) DISTRICT REVENUE
vs. BONDS,VARIOUS SERIES
THE STATE OF FLORIDA, AND ALL OF
THE SEVERAL PROPERTY OWNERS,
TAXPAYERS AND CITIZENS OF THE
STATE OF FLORIDA, INCLUDING NON-
RESIDENTS OWNING PROPERTY OR
SUBJECT TO TAXATION THEREIN AND
ALL OTHERS HAVING OR CLAIMING
ANY RIGHT, TITLE OR INTEREST IN
PROPERTY TO BE AFFECTED BY THE
ISSUANCE OF THE BONDS HEREIN
DESCRIBED, OR TO BE AFFECTED
THEREBY, INCLUDING BUT NOT
LIMITED TO THOSE OF THE TOWN OF
CUTLER BAY, FLORIDA, THE VILLAGE
OF PALMETTO BAY, FLORIDA, THE
VILLAGE OF PINECREST, FLORIDA,
THE CITY OF SOUTH MIAMI, FLORIDA,
THE CITY OF CORAL GABLES,
FLORIDA, MIAMI SHORES VILLAGE,
FLORIDA, THE CITY OF MIAMI,
FLORIDA AND MIAMI-DADE COUNTY,
FLORIDA,
Defendants.
FINAL JUDGMENT
The above and foregoing cause has come to final hearing on the date and at the time and
place set forth in the Order to Show Cause heretofore issued by this Court on the Complaint for
Validation of Bonds Pursuant to Chapter 75 and Chapter 163, Part I, Florida Statutes
Final Judgment
Case No. 2012 CA 002897
("Complaint") filed by Plaintiff Green Corridor Property Assessment Clean Energy (PACE)
District against the State of Florida and the property owners, taxpayers and citizens thereof,
including those of the Town of Cutler Bay, Florida, the Village of Palmetto Bay, Florida, the
Village of Pinecrest, Florida,the City of South Miami,Florida, the City of Coral Gables, Florida,
Miami Shores Village, Florida, the City of Miami, Florida and Miami-Dade County, Florida,
including non-residents owning property or subject to taxation therein and all others having or
claiming any right title or interest in property to be affected by the Plaintiff's issuance of not
exceeding$500,000,000 in aggregate principal amount at any one time outstanding of the Green
Corridor Property Assessment Clean Energy (PACE) District Revenue Bonds, in various series
(the "Bonds"),hereinafter described, or to be affected in any way thereby, and said cause having
duly come on for fmal hearing, and the Court having considered the same and heard the evidence
and being fully advised in the premises, finds as follows:
JURISDICTION AND VENUE
FIRST. The Plaintiff is authorized under Chapter 75, Florida Statutes, and Chapter 163,
Part I, Florida Statutes, including Sections 163.01(7)(d), 163.01(7)(g)(9), and 163.08(7), Florida
Statutes,to file its Complaint in this Court to determine the validity of the Bonds, the pledge of
revenues for the payment thereof, the validity of the non-ad valorem assessments which shall
comprise all or in substantial part the revenues pledged, the proceedings relating to the issuance
thereof and all matters connected therewith.' All actions and proceedings of the Plaintiff in this
I The Court takes judicial notice that the Court recently validated bonds involving virtually
identical factual circumstances and legal issues. See Final Judgment in Florida PACE Funding
Agency v. State of Florida,Civil Action No. 2011-CA-1834,filed August 25,2011.
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Case No. 2012 CA 002897
cause are in accordance with Chapter 75, Florida Statutes, and Chapter 163, Part I, Florida
Statutes,each as amended.
SECOND. The parties named as Defendants in this Complaint are the proper parties
under the provisions of Section 75.02,Florida Statutes.
THIRD. Venue in the Circuit Court of the Second Judicial Circuit in and for Leon
County, Florida is proper under the provisions of Sections 163.01(7)(d) and 163.01(7)(g)(9),
Florida Statutes.
THE PLAINTIFF IS A PROPER PARTY TO BRING THIS ACTION UNDER THE
TERMS OF THE INTERLOCAL AGREEMENT
FOURTH. The Plaintiff is a valid and legally existing public body corporate and politic
within the State of Florida created pursuant to the Florida Interlocal Cooperation Act of 1969,
Chapter 163, Part I, Florida Statutes, as amended (the "Interlocal Act") and pursuant to the
provisions of a certain Interlocal Agreement filed in the public records of Miami-Dade County
on August 6, 2012 at OR Book 28217, pages 0312-0333, and effective as of such date (the
"Interlocal Agreement')initially among the Town of Cutler Bay, Florida,the Village of Palmetto
Bay, Florida, the Village of Pinecrest, Florida, the City of South Miami, Florida, the City of
Coral Gables,Florida,Miami Shores Village, Florida and the City of Miami,Florida(the "Initial
Members"), and subsequently among any additional counties or municipalities joining the
Plaintiff as a member. As the context requires, the term "Members" as used herein shall
collectively include the Initial Members and any additional counties or municipalities joining the
Plaintiff as a member. A copy of the Interlocal Agreement is attached to the Complaint as
Exhibit"1".
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Case No. 2012 CA 002897
FIFTH. Execution of the Interlocal Agreement was authorized by resolutions of the
Initial Members adopted on April 24, 2012 with respect to the Town of Cutler Bay, July 23,2012
with respect to the Village of Palmetto Bay, June 12, 2012 with respect to the Village of
Pinecrest,July 24,2012 with respect to the City of South Miami, June 6,2012 with respect to the
City of Coral Gables, Florida, December 6, 2011 with respect to the Miami Shores Village and
April 12, 2012 with respect to the City of Miami (collectively, the "Joint Resolutions"). Copies
of the Joint Resolutions are attached to the Complaint as Exhibit"2".
SIXTH. The Interlocal Agreement is authorized by the Joint Resolutions, the Interlocal
Act and Section 163.08(5), Florida Statutes, has been lawfully entered into and executed by the
Initial Members and constitutes a legal, valid and binding agreement of each of the Initial
Members.
SEVENTH. The Interlocal Agreement is a lawful means to provide for (a) the authority
of the Plaintiff to act, provide its services, and conduct its affairs within each Member's
jurisdiction; (b) the Plaintiff to facilitate the voluntary acquisition, delivery, installation,
financing or any other manner of provision of (i) energy conservation and efficiency
improvements, (ii) renewable energy improvements, and (iii) wind resistance improvements,
which are"qualifying improvements"as defined in Section 163.08(2)(b),Florida Statutes (herein
"Qualifying Improvements") to property owners desiring such improvements who are willing to
enter into financing agreements ("Financing Agreements") with the Plaintiff as provided for in
Section 163.08, Florida Statutes (the "Supplemental Act") and agree to impose non-ad valorem
assessments which shall run with the land on their respective properties; (c) the District to levy,
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Case No. 2012 CA 002897
impose and collect non-ad valorem assessments pursuant to such Financing Agreements; (d) the
issuance of bonds of the Plaintiff to fund and finance the Qualifying Improvements; (e) the
proceeds of such non-ad valorem assessments to be timely and faithfully paid to the Plaintiff; (f)
the withdrawal from, discontinuance of or termination of the Interlocal Agreement by any party
upon ten days' notice; (g) such disclosures, consents or waivers reasonably necessary to use or
employ the services and activities of the Plaintiff; and (h) such other covenants or provisions
deemed necessary and mutually agreed to by the parties to carry out the purpose and mission of
the Plaintiff.
EIGHTH. The Interlocal Agreement provides a lawful and enforceable means to
evidence the express authority and concurrent transfer of all necessary powers to the Plaintiff,
and the covenant to cooperate by the Members thereof, so that the Plaintiff may facilitate,
administer, implement and assist in providing Qualifying Improvements, execute Financing
Agreements and impose non-ad valorem assessments only on properties subjected to same by the
owners thereof, develop markets, structures and procedures to finance same, and to take any
actions associated therewith or necessarily resulting therefrom, as contemplated by the
Supplemental Act.
NINTH. No Member is prohibited from enacting, implementing and operating a non-ad
valorem assessment program to finance Qualifying Improvements under the Supplemental Act
by any provision of any agreement between the Plaintiff or any Member and a public or private
power or energy provider or, other utility provider, since any provision of such agreements are
5
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Case No. 2012 CA 002897
rendered unenforceable if used to limit or prohibit any local government from exercising its
authority to operate a program under the Supplemental Act.
THE PLAINTIFF HAS AUTHORITY TO ISSUE THE BONDS
TENTH. Authority is conferred upon the Plaintiff, under and by virtue of the laws of the
State of Florida, particularly Chapter 166, Part II, Florida Statutes, Chapter 159, Part I, Florida
Statutes, Chapter 125, Part I, Florida Statutes, Chapter 163, Part I, Florida Statutes, and other
applicable provisions of law to issue its revenue bonds or other debt obligations and use the
proceeds thereof for purposes of"financing Qualifying Improvements within the jurisdiction of
any Florida "local government" as defined by Section 163.08(2)(a), Florida Statutes, which
becomes a Member of the Plaintiff by signing the Interlocal Agreement.
ELEVENTH. The Bonds or other debt obligations will be issued by the Plaintiff
pursuant to a Master Bond Resolution. A copy of the Master Bond Resolution is attached to the
Complaint as Exhibit"3".
THE PLAINTIFF IS ACTING IN COMPLIANCE WITH THE SUPPLEMENTAL ACT
TWELFTH. The Bonds, or other debt obligations issued by the Plaintiff, enable the
Plaintiff to lawfully create and administer financing programs related to the provision of
Qualifying Improvements. The Bonds may be solely secured by the proceeds derived from
special assessments in the form of non-ad valorem assessments imposed by the local
governments, upon the voluntary agreement of the record owners of the affected property as
authorized by the Supplemental Act. In order to pay the costs of Qualifying Improvements, the
Supplemental Act expressly authorizes the imposition and collection of "non-ad valorem
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Case No. 2012 CA 002897
assessments' as defined in Section 197.3632(1)(d), Florida Statutes, which constitute a lien
against the affected property, including homestead property, as permitted by Article X, Section 4
of the Florida Constitution.
THIRTEENTH. The Supplemental Act authorizes local governments, which includes
the Plaintiff (a) to finance Qualifying Improvements through the execution of Financing
Agreements and the related imposition of non-ad valorem assessments, (b) to incur debt for
purposes of providing such Qualifying Improvements,payable from revenues received from such
non-ad valorem assessments or any other available revenue source authorized by law, (c)to enter
into a partnership with one or more local governments for purposes of providing and financing
Qualifying Improvements, and (d) to administer, or allow for the administration of, a Qualifying
Improvement program by a for-profit entity or a not-for-profit entity. A copy of the
Supplemental Act is attached to the Complaint as Exhibit"4".
FOURTEENTH. The Supplemental Act is additional and supplemental to county and
municipal home rule authority and is not in derogation of such authority or a limitation upon
such authority.
FIFTEENTH.The Supplemental Act includes the following legislative determinations:
(A) In chapter 2008-227, Laws of Florida,the Legislature amended the energy goal of
the state comprehensive plan to provide, in part, that the state shall reduce its energy
requirements through enhanced conservation and efficiency measures in all end-use sectors and
reduce atmospheric carbon dioxide by promoting an increased use of renewable energy
resources.
7
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Case No. 2012 CA 002897
(B) That act also declared it the public policy of the state to play a leading role in
developing and instituting energy management programs that promote energy conservation,
energy security and the reduction of greenhouse gases.
(C) In chapter 2008-191, Laws of Florida, the Legislature adopted new energy
conservation and greenhouse gas reduction comprehensive planning requirements for local
governments.
(D) The Legislature fmds that all energy-consuming improved properties that are not
using energy conservation strategies contribute to the, burden affecting all improved property
resulting from fossil fuel energy production.
(E) Improved property that has been retrofitted with energy-related Qualifying
Improvements receives the special benefit of alleviating the property's burden from energy
consumption.
(F) All improved properties not protected from wind damage by wind resistance
Qualifying Improvements contribute to the burden affecting all improved property resulting from
potential wind damage. Improved property that has been retrofitted with wind resistance
Qualifying Improvements receives the special benefit of reducing the property's burden from
potential wind damage.
(G) The installation and operation of Qualifying Improvements not only benefit the
affected properties for which the improvements are made, but also assist in fulfilling the goals of
the state's energy and hurricane mitigation policies.
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Case No. 2012 CA 002897
(H) In order to make Qualifying Improvements more affordable and assist property
owners who wish to undertake such improvements, the Legislature finds that there is a
compelling state interest in enabling property owners to voluntarily finance such improvements
with local government assistance.
THE PLAINTIFF HAS AUTHORITY TO ENTER INTO THE FINANCING
AGREEMENTS AND TO IMPOSE NON-AD VALOREM ASSESSMENTS
SIXTEENTH. The Legislature determined that the actions authorized under the
Supplemental Act, including, but not limited to, the financing of Qualifying Improvements
through the execution of Financing Agreements between property owners and local governments
and the resulting imposition of voluntary non-ad valorem assessments are reasonable and
necessary to serve and achieve a compelling state interest and are necessary for the prosperity
and welfare of the state and its property owners and inhabitants. To that end, the District will
enter into a Financing Agreement with each property owner that desires to obtain financing
under the District's program. A copy of the form of fmancing agreement is attached to the
Complaint as Exhibit"5".
SEVENTEENTH. The non-ad valorem assessments imposed pursuant to the
Supplemental Act (a) are only imposed with the written consent of the affected property owners,
(b) are evidenced by a Financing Agreement as provided for in the Supplemental Act which
comports with and evidences the provision of due process to every affected property owner, (c)
constitute valid and enforceable liens permitted by Article X, Section 4 of the Florida
Constitution, of equal dignity to taxes and other non-ad valorem assessments and are paramount
to all other titles, liens or mortgages not otherwise on parity with the lien for taxes and non-ad
9
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Case No. 2012 CA 002897
valorem assessments, which lien runs with, touches and concerns the affected property, and (d)
are used to pay the costs of Qualifying Improvements necessary to achieve the public purposes
articulated by the Supplemental Act. As such, the non-ad valorem assessments imposed pursuant
to the Supplemental Act are indistinguishable from and fully equivalent to all other non-ad
valorem assessments providing for the payment of costs of capital projects, improvements,
and/or essential services (e.g., infrastructure and services related to roads, stormwater, water,
sewer, garbage removal/disposal, etc.) which benefit property or relieve a burden created by
property in furtherance of a public purpose.
EIGHTEENTH. Florida law provides that the amount of any given non-ad valorem
assessment may not exceed the benefit conferred on the land, nor may it exceed the cost for the
improvement and necessary incidental expenses. Non-ad valorem assessments imposed pursuant
to the Supplemental Act are no different than any other non-ad valorem assessment imposed by a
local government and therefore may not exceed the cost of the improvement and necessary
incidental expenses.
NINETEENTH. Non-ad valorem assessments imposed pursuant to the Supplemental
Act, among other things, meet and comply with the well-settled case law requirements of a
special benefit and fair apportionment required for a valid special or non-ad valorem assessment.
TWENTIETH. Any non-ad valorem assessments levied and imposed against affected
real property must be collected pursuant to the uniform collection method set forth in Section
197.3632,Florida Statutes, pursuant to which non-ad valorem assessments are collected annually
over a period of years on the same bill as property taxes.
10
Final Judgment
Case No. 2012 CA 002897
TWENTY-FIRST. Non-ad valorem assessments imposed pursuant to the Supplemental
Act are not subject to discount for early payment. Avoiding discounts for early payment of non-
ad valorem assessments actually lowers the costs of annual collection paid by the affected
property owners.
TWENTY-SECOND. The Supplemental Act expressly clarifies and distinguishes the
relationship of prior contractual obligations or covenants of a property owner which allow for
unilateral acceleration of payment of a mortgage, note or lien or other unilateral modification
with the action of a property owner entering into a Financing Agreement pursuant to the
Supplemental Act. The Supplemental Act lawfully recognizes the Financing Agreement required
therein as the means to evidence a non-ad valorem assessment and renders unenforceable any
provision in any agreement between a mortgagee or other lien holder and a property owner
which allows for the acceleration of payment of a mortgage, note, lien or other unilateral
modification solely as a result of entering to Financing Agreement pursuant to the Supplemental
Act which establishes a non-ad valorem assessment. This provision of the Supplemental Act
does not result in a contractual impairment of the mortgage or similar lien, as the assessment
established by a Financing Agreement is no different from any other lawful non-ad valorem
assessment, and does not impair the value of the prior contract(e.g. mortgagee's interest).
TWENTY-THIRD. Even if the Financing Agreement is deemed to result in an
impairment of contract as a result of the Supplemental Act, such impairment is not substantial
nor does it constitute an intolerable impairment, and as such does not warrant overturning the
Supplemental Act as there is an overriding necessity for the Supplemental Act. The
11
Final Judgment
Case No. 2012 CA 002897
Supplemental Act requires that any mortgage lien holder on a participating property must be
provided not less than 30 days prior notice of the property owner's intent to enter into a
Financing Agreement together with the maximum principal amount of the non-ad valorem
assessment and the maximum annual assessment amount. The Supplemental Act does not limit
the authority of the mortgage holder or loan servicer to increase or require monthly escrow
payments in an amount necessary to annually pay the Qualifying Improvement assessment. The
Supplemental Act additionally requires as a condition precedent to the effectiveness of a non-ad
valorem assessment (i) a reasonable determination of timely payment of property taxes and
assessments during the preceding three (3) years, (ii)the absence of any current involuntary liens
on the property, (iii) the absence of any property-based debt delinquencies during the preceding
three (3) years, (iv) verification that the property owner is current on all mortgage debt on the
property, (v) that, without the consent of the mortgage holder or loan servicer, the total amount
of any non-ad valorem assessment for Qualifying Improvements not exceed twenty percent
(20%) of the just value of the property, except that energy conservation and efficiency
improvements and renewable energy improvements are not subject to the twenty percent (20%)
of just value limit if such improvements are supported by an energy audit which demonstrates
that annual energy savings from the improvements equal or exceed the annual repayment of the
non-ad valorem assessment, and (vi) that any work requiring a license under any applicable law
to make the Qualifying Improvement be performed by a properly certified or licensed contractor.
Finally, each Financing Agreement (or a memorandum thereof) must be recorded in the public
records of the county where the property is located promptly after the execution thereof. The
12
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Case No. 2012 CA 002897
Supplemental Act (i) was enacted to deal with broad generalized economic or social problems,
(ii) is based on historical principles of law in existence before any affected mortgage or other
debt instrument was entered into and operates and will be administered in an area of intense
governmental regulation and public scrutiny, and (iii) is, or provides for conditions which are,
tolerable in light of covenants contained in mortgage and other debt instruments which may
otherwise allow for unilateral acceleration.
TWENTY-FOURTH. The Qualifying Improvements and all costs associated therewith
funded with the proceeds of the non-ad valorem assessments evidenced by any Financing
Agreement pursuant to the Supplemental Act must convey a special benefit to the real property
subject to the assessment and the cost of the service or improvement must be fairly and
reasonably apportioned among such real property. The special benefit necessary to support the
imposition of a non-ad valorem assessment may consist of the relief or mitigation of a burden
created by the affected real property.
TWENTY-FIFTH. Qualifying Improvements address the public purpose of reducing,
mitigating or alleviating the affected properties' burdens relating to energy consumption
resulting from use of fossil fuel energy and/or reduce burdens or demands of affected properties
that might otherwise result from potential wind, storm or hurricane events or damage.
TWENTY-SIXTH. The voluntary application for funding to finance a Qualifying
•Improvement and entry into a written Financing Agreement as required by and pursuant to the
Supplemental Act provides direct, competent and substantial evidence that each affected
property owner has determined and acknowledged that the cost of Qualifying Improvement is
13
Final Judgment
Case No. 2012 CA 002897
equal to or less than the benefits received or burdens relieved or mitigated as to any affected
property and has been provided and received substantive and procedural due process in the
imposition of the resulting non-ad valorem assessments.
TWENTY-SEVENTH. The unique and specific procedures required by the
Supplemental Act provide written and publicly recorded evidence that no affected property
owner will be deprived of due process in the imposition of the non-ad valorem assessments or
subsequent constructive notice that the assessment has been imposed.
THE PLAINTIFF HAS AUTHORITY TO ISSUE THE BONDS THROUGH ADOPTION
OF THE MASTER BOND RESOLUTION
TWENTY-EIGHTH. The Master Bond Resolution authorizes Plaintiff's issuance of not
exceeding $500,000,000 in aggregate principal amount at any one time outstanding of Green
Corridor Property Assessment Clean Energy (PACE) District Revenue Bonds, in various series,
in order to provide funds with which to administer an energy and wind resistance improvement
finance program to facilitate the provision, funding and financing of Qualifying Improvements,
thereby advancing the Plaintiff's mission to undertake, cause and/or perform all such acts as
shall be necessary to provide a uniform and efficient local platform capable of securing
economies of scale and implementation on a state-wide basis if and when individual local
governments execute the Interlocal Agreement.
TWENTY-NINETH. The Master Bond Resolution provides that the Bonds will be
issued in such amounts,at such time or times,be designated as such series,be dated such date or
dates, mature at such time or times, be subject to tender at such times and in such manner,
contain such redemption provisions, bear interest at such rates not to exceed the maximum
14
• Final Judgment
Case No. 2012 CA 002897
permitted by Florida law, including variable and fixed rates, and be payable on such dates as
provided in the various trust indentures to be entered into by and between the Plaintiff and one or
more national banking associations or trust companies authorized to exercise trust services in
Florida,to be determined by a resolution of the Plaintiff to be adopted prior to the issuance of the
Bonds(the"Indentures").
THE PLAINTIFF HAS PROVIDED A MECHANISM TO SECURE THE BONDS
THIRTIETH. The Master Bond Resolution provides that the principal of, premium, if
any, and interest on the Bonds shall be payable solely from the proceeds of non-ad valorem
assessments imposed by local governments pursuant to Financing Agreements with affected
property owners as provided for in the Supplemental Act, and the funds and accounts described
in and as pledged and as limited under the Indentures (the"Pledged Revenues').
THIRTY-FIRST. The Pledged Revenues pledged to one series of Bonds may be
different than the Pledged Revenues pledged to other series of Bonds.
THIRTY-SECOND. Bonds issued pursuant to the Master Bond Resolution to redeem
and/or refund any bonds or other indebtedness of the Plaintiff shall be deemed to be a
continuation of the debt refunded or redeemed and shall not be considered to be an issuance of
an additional principal amount of debt chargeable against the amount originally validated in this
proceeding and authorized to be issued.
THIRTY-THIRD. The Bonds and any series thereof may be issued such that the interest
thereon shalt not be excluded from gross income of the holders thereof for purposes of federal
15
Final Judgment
Case No. 2012 CA 002897
income taxation, or may be issued such that the interest thereon shall be excluded from gross
income of the holders thereof for purposes of federal income taxation.
THIRTY-FOURTH. The Bonds and any series thereof may be issued such that the
Bonds are or are not further secured by one or more bond insurance policies, letters of credit,
surety bonds or other form of credit support.
THIRTY-FIFTH. The Master Bond Resolution requires the use of Financing
Agreements in establishing any non-ad valorem assessment in the manner provided for in the
Supplemental Act.
THIRTY-SIXTH. The Master Bond Resolution provides that the Bonds and the
obligations and covenants of the Plaintiff under the Indentures, the Interlocal Agreement, the
Financing Agreements and other documents (collectively, the "Program Documents") shall not
be or constitute a debt, liability, or general obligation of the Plaintiff, the Members, the State of
Florida, or any political subdivision or municipality thereof, nor a pledge of the full faith and
credit or any taxing power of the Plaintiff,the Members,the State or any political subdivision or
municipality thereof, but shall constitute special obligations of the Plaintiff payable solely from
the non-ad valorem assessments as evidenced by the Financing Agreements and secured under
the Indentures, in the manner provided therein. The holders of the Bonds shall not have the right
to require or compel any exercise of the taxing power of the Plaintiff, the Members, the State of
Florida or of any political subdivision thereof to pay the principal of,premium, if any, or interest
on the Bonds or to make any other payments provided for under the Program Documents. The
issuance of the Bonds shall not directly, indirectly, or contingently obligate the Plaintiff, the
16
Final Judgment
Case No. 2012 CA 002897
Members,the State of Florida or any political subdivision or municipality thereof(excluding the
District with respect to the levy of the non-ad valorem assessments) to levy or to pledge any
form of taxation or assessments whatsoever therefor.
THE PLAINTIFF'S AND THE MEMBERS' LIABILITIES UNDER THE INTERLOCAL
ACT AND THE SUPPLEMENTAL ACT ARE LIMITED
THIRTY-SEVENTH. Plaintiff and the Members are and shall be subject to Sections
768.28 and 163.01(9)(c), Florida Statutes, and any other provisions of Florida law governing
sovereign immunity.
THIRTY-EIGHTH. Plaintiff is a legal entity separate and distinct from the Members,
and neither of the Initial Members, nor any subsequent local government Member of the
Plaintiff, shall in any manner be obligated to pay any debts, obligations or liabilities arising as a
result of any actions of the Plaintiff, its Board of Directors or any other agents, employees,
officers or officials of the Plaintiff, and neither the Plaintiff, its Board of Directors nor any other
agents, employees, officers or officials of the Plaintiff have any authority or power to otherwise
obligate either of the Initial Members or any subsequent Member of the Plaintiff in any manner.
THE PLAINTIFF HAS COMPLIED WITH ALL CONSTITUTIONAL AND
STATUTORY CONDITIONS PRECEDENT TO THE ISSUANCE OF THE BONDS
THIRTY-NINETH. All requirements of the Constitution and laws of the State of
Florida pertaining to the issuance of the Bonds and the adoption of the proceedings of the
Plaintiff have been complied with.
NOW, THEREFORE, IT IS ORDERED AND ADJUDGED that the Bonds, the
Interlocal Agreement, the Financing Agreements, the Supplemental Act, the matters set forth in
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Case No. 2012 CA 002897
each of the preceding numbered paragraphs including, but not limited to,the proceedings related
thereto, the Master Bond Resolution and the adoption thereof, the revenues pledged or
covenanted for the repayment of the Bonds, the validity of the Financing Agreements entered
into and the non-ad valorem assessments imposed pursuant to the Supplemental Act which shall
evidence and comprise all or in substantial part the revenues pledged, are hereby validated and
confirmed, are for proper, legal and paramount public purposes and are fully authorized by law,
and that this Final Judgment validates and confirms the authority of the Plaintiff to issue the
Bonds and the legality of all proceedings in connection therewith.
There shall be stamped or written on the back of each of the Bonds a statement in
substantially the following form
"This Bond was validated by judgment of the Circuit Court for Leon County, Florida
rendered on ,2012.
[Officer, Green Corridor Property Assessment
Clean Energy(PACE) District]"
provided that such statement or certificate shall not be affixed within thirty (30) days after the
date of this judgment and unless no appeal be filed in this cause.
DONE AND ORDERED at the Leon County Courthouse in Tallahassee, Florida, this
�.3 day of _Anato , 2012. ,•ray: `' �ti
CIRCUIT COURT JUDGE
Copies to: All counsel on attached Service List
18
SERVICE LIST
Green Corridor Property Assessment Clean Energy (PACE)District
v.
The State of Florida, et al.
Case No.2012 CA 002897
VALIDATION OF NOT TO EXCEED $500,000,000 GREEN CORRIDOR
PROPERTY ASSESSMENT CLEAN ENERGY (PACE) DISTRICT REVENUE
BONDS,VARIOUS SERIES
Mitchell J. Burnstein Georgia A. Cappleman
Jeffrey D.DeCarlo Assistant State Attorney
Weiss Serota Helfman Second Judicial Circuit
Pastoriza Cole&Boniske, P.L. 301 S. Monroe St., Suite 475
2525 Ponce de Leon Blvd., Suite 700 Tallahassee, FL 32301-1861
Coral Gables, FL 33134 Telephone: 850-606-6062
Telephone: 305-854-0800 Facsimile: 850-606-6001
Facsimile: 305-854-2323
Email: mburnstein@wsh-law.com(primary) Email: capplemang@leoncountyfl.gov
lbrewlev@wsh-law.com(secondary)
jdecarlo@wsh-law.com(primary)
grawlins@a,wsh-law.corn(secondary)
Counsel for Plaintiff Green Corridor Property Counsel for Defendant State of Florida
Assessment Clean Energy (PACE)District
Joel D.Rosenblatt
Assistant State Attorney
Eleventh Judicial Circuit
1350 N.W. 12 Ave., #S-543
Miami,FL 33136-2102
Telephone: 305-547-0860
Facsimile: 305-547-0572
Counsel for Defendant State of Florida
Email: eService@MiamiSAO.com
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