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Council committee approves PACE financing for Erieview hotel after CPP conversion questions
Summary
The committee approved an emergency ordinance to add 1301 E. 9th St. to the Northeast Ohio Advanced Energy District and authorize up to $43.08 million in PACE financing for the Erieview Tower hotel; councilmembers pressed the developer to finalize a Cleveland Public Power agreement required by the project—s community benefits agreement.
Council committee members on Monday approved an emergency ordinance authorizing the addition of 1301 East 9th Street to the Northeast Ohio Advanced Energy District and the use of property‑assessed clean energy (PACE) financing for the hotel component of the Erieview Tower redevelopment.
Project presenters told the committee that Greenworks Lending would provide up to $43,081,864 in PACE financing amortized over 28 years to fund energy upgrades such as HVAC controls, building envelope improvements, lighting and water‑heating systems. The presenters said the funding would be repaid via a special assessment and estimated semiannual assessment payments up to about $1.9 million.
Why it matters: PACE puts the cost of energy upgrades on a special assessment attached to the property rather than on the city—s general fund, but it also creates a long‑term assessment obligation for property owners. Councilmembers said they support the environmental and economic aims of the project but pressed the developer on specific community commitments.
Councilman Brian Casey told the project team that a provision of the community benefits agreement (CBA) requires the use of Cleveland Public Power (CPP) where feasible and said he—s received mixed information on whether the conversion is happening. "That conversion is in progress," a project representative replied, adding that the conversion and the CPP power agreement are being negotiated and that the project "intends to honor the CBA" and expects completion "by the time the project is operational" and before issuance of a certificate of occupancy.
Council did not require a funding change before approving the ordinance in committee. The law department—s amendment changing technical assessment language was read into the record before the committee approved the measure and signed it as a committee of the whole.
What—s next: This measure advances out of committee; the council president reminded members to "sign on" as required for committee‑of‑the‑whole approvals. The project team and CPP must finalize the conversion and the power agreement ahead of building occupancy, per the project's public assurances.
