Item 2E: Resolution Authorizing Bonds for Cascade Manor

Home Browse Search

ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Adoption of Resolution 4874 Authorizing the Issuance and Sale of Revenue Bonds in an Aggregate Principal Amount Not to Exceed $20 Million for the Cascade Manor Project by the Hospital Facilities Authority of the City of Medford, Oregon Meeting Date: May 22, 2006 Agenda Item Number: 2E Department: Central Services Staff Contact: Sue Cutsogeorge www.eugene-or.gov Contact Telephone Number: 682-5589 ISSUE STATEMENT Pacific Retirement Services, Inc. (“PRS”) and its affiliate, Cascade Manor, Inc., are requesting the authority to proceed with the issuance of conduit or pass-through revenue bonds by the Hospital Facilities Authority of the City of Medford in an amount not to exceed $20 million for the benefit of Cascade Manor. The City of Eugene’s roles in this bond issue are determined by the IRS and by Oregon statutes, and include the following actions: (1) to provide an opportunity for citizens to comment on the issuance of tax-exempt debt, (2) to indicate its approval for the transaction, as required by the IRS, for the proposed financing, and (3) to approve intergovernmental cooperation provision under ORS for the issuance of the bonds. If the council agrees to this financing, Cascade Manor will be able to use less expensive tax-exempt financing for its projects. BACKGROUND Pacific Retirement Services, Inc., on behalf of its affiliate, Cascade Manor, Inc., each an Oregon non- profit 501(c)(3) corporation, is requesting that The Hospital Facilities Authority of the City of Medford, Oregon (the “Authority”) issue non-recourse revenue bonds for and on behalf of Cascade Manor in an aggregate principal amount not exceeding $20 million. Cascade Manor owns a continuing care retirement community located at 65 West 30th Avenue. The facility currently consists of 110 independent living units, 11 residential assisted living units and 22 health center beds. The original facility was built in the mid-1960s by a community-based, non-profit corporation formed by a number of local churches. In 1996, the Board of Directors of Cascade Manor, Inc., voted to merge into the Pacific Retirement Services, Inc. group of companies. In August 2005, Cascade Manor completed construction of 50 garden apartments to meet the demands of the market and to achieve greater economies of scale. In 2006, Cascade Manor will be undertaking renovations to its health center and will be moving its residential living units. The entire garden apartments project and a portion of the health center project will be financed and/or refinanced with the proceeds of the proposed tax-exempt bond offering. L:\CMO\2006 Council Agendas\M060522\S0605222E.doc