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RESOLUTION NO. 5294
<br />A RESOLUTION AUTHORIZING THE REISSUANCE OF REVENUE
<br />BONDS, BY THE HOSPITAL FACILITIES AUTHORITY OF THE CITY
<br />OF MEDFORD, OREGON, IN AN AGGREGATE PRINCIPAL AMOUNT
<br />NOT TO EXCEED $5,000,000 FOR THE CASCADE MANOR
<br />CONTINUING CARE RETIREMENT COMMUNITY LOCATED IN
<br />EUGENE,OREGON.
<br />The City Council of the City of Eugene, Oregon that:
<br />A. Cascade Manor, Inc., a nonprofit 501(c)(3) corporation (the `Borrower"), and an
<br />affiliate of Pacific Retirement Services, Inc., a nonprofit 501(c)(3) corporation, owns a
<br />continuing care retirement community (the "CCRC") located at 65 W 30t' Avenue, 74 W 29h'
<br />Avenue, 76 W 29"' Avenue, 78 W 29th Avenue, 70 W 29"' Place, 46 W 29"' Place, 2960 Portland
<br />Street, 2962 Portland Street, 2976 Portland Street, 45 W 29h' Place, 47 W 29h' Place, 53 W 29h'
<br />Place, 61 W 29t' Place, 65 W 29h' Place and 2926 Portland Street, all in Eugene, Oregon 97405.
<br />B. In October 2014, The Hospital Facilities Authority of the City of Medford,
<br />Oregon (the "Authority") previously issued tax-exempt conduit bonds in the aggregate principal
<br />amount of $33,842,000 (the "2014 Bonds"), for the benefit of the Borrower, which financed and
<br />refinanced all or a portion of the costs of constructing, renovating, improving, enlarging,
<br />furnishing and equipping senior housing units, community amenities and additional common
<br />areas, including furniture, fixtures and equipment ("FF&E") and other capital improvements at
<br />the Borrower's CCRC (such financed and refinanced assets, collectively, the "2014 Project").
<br />C. In connection with the issuance of the 2014 Bonds, the City Council of the City of
<br />Eugene held a public hearing and approved a Resolution approving the Project and the issuance
<br />of the 2014 Bonds by the Authority.
<br />D. When residential housing units at the Project are turned over for new residents to
<br />occupy, new FF&E is purchased for such units, but used FF&E in the residential housing units,
<br />which were financed with proceeds of the 2014 Bonds, may still have economic value and may
<br />be sold at fair market value, the cash proceeds of which (the "Sale Proceeds") may then be used
<br />to purchase the new FF&E or to make other capital improvements to the CCRC (the "Reissued
<br />2014 Bonds Project").
<br />E. The Authority has received a request from the Borrower to reissue, for tax
<br />purposes, one or more series of tax-exempt conduit bonds in an aggregate principal amount not
<br />to exceed $5,000,000 (the "Bonds"), pursuant to a plan of finance, under the federal tax remedial
<br />action rules in Treasury Regulation 1.141-12(e)(1) (the "Tax Regulations"), for the purpose of
<br />paying the costs of the Reissued 2014 Bonds Project. Under the Tax Regulations, the Authority
<br />may only use the Sale Proceeds to pay costs of the Reissued 2014 Bonds Project if the 2014
<br />Resolution -- Page 1 of 2
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