The DFA has closed its 5th bond fund deal of 2018 with the closing of Akron Rubber Development Laboratories PACE bond for $2.52M. ARDL represents the 3rd Property Assessed Clean Energy (PACE) bond that DFA has closed in 2018. This was the DFA’s first A- rated deal and closed at 4.38% rate fixed (taxable) over 15 years is which is great for our borrower. The project is located in the City of Barberton and consists of a new roof, electrical, lighting, controls, HVAC, cooling tower, exterior doors and windows, exterior wall insulation, and engineering costs constructed by Polymer Developments, Ltd. at its property located in the City. The Project and the Project Site are leased by Polymer Developments, Ltd. to Akron Rubber Development Laboratory, Incorporated for use in its business. The Project will qualify as an “energy efficiency improvement” under Chapter 1710 of the Revised Code, which will allow the Developer to finance the costs of the Project with special assessments on the Project Site and a Property Assessed Clean Energy (PACE) Bond.
The Authority will issue a series of bond fund bonds as a PACE Bond in a principal amount not to exceed $3,000,000 to finance the costs of the Project. The Developer, as construction agent to the Authority, will construct the Project. The Developer will petition the City and the Akron-Summit County Energy Special Improvement District, Inc. for the adoption of an improvement and services plan for the District, including the Project. The Developer will also petition the City to pass an ordinance levying special assessments on the Project Site to pay the costs of the Plan. The Special Assessments will be levied in an amount at least equal to the annual debt service and administrative amounts due and payable on the Bonds. To secure the Bonds, the City will assign the Special Assessments to the Issuer under a Cooperative Agreement, the Issuer will pledge the Special Assessments to the Trustee for the Bonds under the Indenture.