Agenda Packet 4-13-20 Meeting - Laserfiche WebLink

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April 13, 2020, Meeting – Item 2C At this time, Cascade Manor would like to reissue $5,000,000 of the 2014 bonds. The reissuance would allow Cascade Manor to sell furniture, fixtures, and equipment (primarily appliances) that were originally financed or refinanced with proceeds of the 2014 bonds and to use the sale proceeds for new financeable assets (e.g., replacement appliances and capital improvements to real property). This action is required by the IRS due to the tax-exempt nature of the 2014 bond issue and requires the public hearing and council approval. Section 147(f) of the Internal Revenue Code of 1986, as amended, requires that 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). Council previously approved the prior financings for the CCRC. 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 are the Bonds 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 are 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. On Thursday, March 26, 2020, a public hearing was held by the Lane Council of Governments in Eugene pursuant to the provisions Section 147(f) of the Internal Revenue Code of 1986, as amended, for the purpose of hearing public comments on the request by Cascade Manor, Inc. to the Authority with respect to the reissuance of the Bonds over the period of approximately three years pursuant to a plan of finance in an aggregate principal amount not exceeding $5 million. A report on the hearing is included as Attachment A. The report also includes the text of the notice of public hearing that was published in the Register-Guard newspaper. The resolution authorizing the issuance of the Bonds fulfils the IRS requirement for approval of tax-exempt financing from the jurisdiction over the area in which the Project is located. PREVIOUS COUNCIL DIRECTION Previous resolutions were adopted as part of the Consent Calendar on the following dates: October 13, 2014 – Resolution Authorizing the Issuance of $40 million in Revenue Bonds May 22, 2006 – Resolution Authorizing the Issuance of up to $20 million in Revenue Bonds COUNCIL OPTIONS Council can approve or not approve this bond financing. If council does not approve the financing, the Borrower will not be able to proceed with the reissuance of the Bonds and will not be able to take advantage of recycling the proceeds of such sales to purchase new assets. CITY MANAGER’S RECOMMENDATION The City Manager recommends adoption of the resolution. CC Agenda - Page 36