Council approves petition and assessment framework to enable NOPEC-backed financing for downtown hotel

Tiffin City Council on April 21 approved measures that clear the way for an Energy Special Improvement District (ESID) and a special-assessment financing tool tied to a proposed renovation of the Tiffin Boutique Hotel.

The actions follow a presentation by NOPEC representatives explaining how property-assessed clean energy (PACE) financing and NOPEC grant programs can fill financing gaps for local projects. NOPEC said the organization is “a council of governments organized under the Ohio Revised Code” that offers aggregated energy purchasing, grants and financing products for member communities.

Why it matters: The council voted to approve the petition to create the ESID, to proceed with the public-improvement work in cooperation with the Tiffin Energy Special Improvement District and to levy a special assessment that will repay investor financing over time. Supporters say the combination of PACE financing and NOPEC grants helped close the gap on the boutique hotel project and could be used by other projects inside the district.

NOPEC’s case to council focused on financing mechanics and local benefits. Aaron Markovi, NOPEC’s director of community investment and economic development, described how NOPEC provided “gap financing” and grants to support the hotel project and said NOPEC’s programs are funded by suppliers rather than directly from ratepayers. He added that NOPEC has returned grant dollars to Tiffin since the city joined in 2014: “Since you joined NOPEC in 02/2014 … you’ve received NEC grant dollars totaling $288,753,” according to the presentation.

City Law Director Zach Fowler and staff presented the required steps for the city to host an ESID and levy a special assessment. Law staff said the estimated total assessment for the Tiffin Boutique Hotel project is about $1,700,000, to be repaid over a 20-year period; city materials said the payment would appear on property tax bills twice a year and cited an estimated amount “about $43,000 basically with each tax bill.” The city will create a special-assessment fund to receive those payments and then remit them to the project’s investor.

Council action and next steps: Council voted to approve the enabling petition (Resolution 25-27) and then passed two ordinances to move the special-assessment process forward (Ordinance 25-42 to determine to proceed; Ordinance 25-43 to levy the special assessments). Council also approved a related appropriation ordinance (Ordinance 25-38) to accept a small NOPEC grant to the city administrator’s fund. All votes recorded at the meeting were unanimous among the six council members present.

Council members and staff said the ESID will remain available for other eligible projects in the district; as the law director explained, once the district is established, individual projects can seek financing without repeating the district-creation step. NOPEC staff emphasized that applicants still must meet underwriting and financing conditions before any assessments are levied.

The city law director and finance staff said additional implementing documents — including a special assessment agreement and project-specific agreements with investors — will be returned to council for required approvals before any assessment is placed on a property.

The NOPEC representatives who spoke also highlighted community benefits unrelated to the hotel financing: NOPEC told council that member communities receive occasional grants and event sponsorships (the city received $2,000 this year for its Fourth of July celebration) and reiterated that the organization carries out a gas/electric “anniversary” mailing required by the Public Utilities Commission of Ohio.

Councilmember Kevin Reisner moved the suspension of the reading rules and immediate passage for the ESID resolution; the motion carried and the enabling measures were adopted by unanimous recorded votes. Councilmembers reading as voting “yes” at roll-call votes were Aaron Jones, Kevin Reisner, Scott Snay, Kyle Dougherty, John Hayes and Ben Hartman.

Council and staff indicated further ordinances and agreements will come back for formal action when project specifics — including final financing documents and the city’s appropriation numbers — are ready for final council approval.