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April 13, 2020, Meeting – Item 2C EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Action: Resolution Authorizing the Reissuance of Revenue Bonds by The Hospital Facilities Authority of the City of Medford, Oregon, in an Aggregate Principal Amount not to Exceed $5,000,000 for the Cascade Manor Continuing Care Retirement Community Located in Eugene, Oregon Meeting Date: April 13, 2020 Agenda Item Number: 2C Department: Central Services Staff Contact: Twylla Miller www.eugene-or.gov Contact Telephone Number: 541-682-8417 ISSUE STATEMENT Cascade Manor, Inc. is requesting the authority to proceed with the reissuance of conduit or pass through revenue bonds (the “Bonds”) by the Hospital Facilities Authority of the City of Medford (the “Authority”) in an aggregate principal amount not to exceed $5,000,000 for the benefit of Cascade Manor. The City of Eugene’s roles in this bond issue are determined by the IRS and by Oregon statues, and include the following actions: (1) to provide an opportunity for citizens to comment on the issuance of tax-exempt debt, and (2) to indicate its approval for the transaction, as required by the IRS for the proposed financing. If council agrees to this financing, Cascade Manor will be able to use less expensive tax-exempt financing for projects. BACKGROUND Cascade Manor, Inc., an Oregon nonprofit 501(c)(3) corporation, owns a continuing care retirement community (the “CCRC”) located in the vicinity of 65 West 30th Avenue. The CCRC located at the northwest corner of West 29th Place and Portland Street consists of 140 independent living units, 11 residential assisted living units, and 22 health center beds. In 2006, Cascade Manor undertook renovations to its health center and moved its residential living units. The entire garden apartments project and a portion of the health center project were financed and/or refinanced with the proceeds of a tax-exempt bond offering (the “2006” bonds). In 2010, the Authority issued tax-exempt revenue bonds (the “2010” bonds) for the benefit of Cascade Manor for the purpose of refinancing the 2006 Bonds in their entirety. In 2014, the Authority issued tax-exempt revenue bonds (the “2014 bonds”) to finance an expansion project on a site adjacent to the CCRC, a new dining venue, additional common areas and other capital improvements on the CCRC campus and to refinance the 2010 bonds. CC Agenda - Page 35