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Committee approves PACE financing for Erieview Tower’s W hotel
Summary
A Cleveland council committee approved an ordinance authorizing Property Assessed Clean Energy (PACE) financing to cover energy upgrades for the W‑branded hotel portion of the Erieview Tower redevelopment: up to $43,881,864 over 28 years, to be repaid via a special assessment on the property tax bill.
A Cleveland City Council committee on a procedural vote approved an ordinance authorizing PACE (Property Assessed Clean Energy) financing for the hotel component of the Erieview Tower redevelopment.
Bobby Bruno, identified in the meeting as a project manager for the city, told the committee the financing would cover energy and efficiency improvements to the hotel — including HVAC controls, building envelope upgrades, water‑heating systems and lighting fixtures — and would be secured through a special assessment on the property tax bill. "This is financing on a property's tax assessment," Bruno said during the presentation. He said the loan would be provided through Greenworks Lending LLC and would run for 28 years, with the lending term expected to end in 2055.
Bruno said the financing being proposed covers the hotel component (floors described in the presentation as Floors 4 through 12) and that the hotel would be a 210‑room W‑branded property led by building owner Elias Kasuf. He told the committee the special assessment had been approved by the city's advanced energy district before coming to council and that the package would total up to $43,881,864; Bruno also stated the assessment would secure semiannual payments "just under $2,000,000."
Committee members questioned project consultants about layout and use. Rich Morehouse of KJK explained why hotel rooms were placed on lower floors rather than higher levels: hotel use tends to be more transient, so placing longer‑term occupants such as offices or apartments on upper floors yields greater value and view premiums.
Councilman Harsh moved technical amendments to the ordinance's certification and schedule language, the committee seconded the motion and approved the amendment by voice vote. The ordinance as amended was then approved by the committee.
The measure approved by the committee authorizes a PACE special assessment to secure the loan for the hotel component; the loan is to be provided by Greenworks Lending LLC and is limited to the hotel floors included in the project petition. The ordinance will move to the next stage of council consideration.
