Item 2E: Resolution Authorizing Bonds for Cascade Manor

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ATTACHMENT B RESOLUTION NO. _______ A RESOLUTION 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 The City Council of the City of Eugene, Oregon, finds as follows: A. Cascade Manor, a nonprofit 501(c)(3) corporation that is an affiliate of Pacific Retirement Services, Inc., owns a continuing care retirement community located at 65 West 30th Avenue, Eugene, Oregon. 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. B. The Hospital Facilities Authority of the City of Medford, Oregon will consider providing tax-exempt conduit bond issuance authority of up to $20 million for the Cascade Manor project (the “Bonds”). Under Section 147(f) of the Internal Revenue Code of 1986, as amended, qualified 501(c)(3) bonds must be approved by the applicable elected representatives of (1) the governmental unit issuing such bonds (The Hospital Facilities Authority of the City of Medford, Oregon) and (2) the governmental unit having jurisdiction over the area in which the Project is located (the City of Eugene, Oregon). C. The principal and interest on the Bonds will not constitute a debt of the City of Eugene, Oregon, the City of Medford, Oregon or the Authority, nor shall the Bonds be payable from a tax of any nature levied upon any property within the City of Eugene nor any other political subdivision of the State of Oregon. The Bonds will be payable only from the revenues and resources of Cascade Manor pledged to the payment of the Bonds and any credit enhancement arranged for by Cascade Manor. D. On May 1, 2006, a notice of public hearing was published in the Register-Guard, a newspaper of general circulation within the City of Eugene. A Hearings Officer conducted a public hearing on Monday, May 15, 2006 at 2:00 p.m. with respect to the proposed issuance by The Hospital Facilities Authority of the City of Medford, Oregon of the Bonds. The Hearings Officer produced a Public Hearing Report setting out the results of the public hearing. No testimony was received at the Public Hearing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Eugene, a municipal corporation of the State of Oregon, as follows: Section 1.Bonds authorized. The City Council of the City of Eugene hereby approves the authorization, execution, sale and delivery by The Hospital Facilities Authority of the City of Medford, Oregon of bonds the Bonds in an amount not to exceed $20,000,000. US_WEST:260014460.1 42909-6