HomeMy WebLinkAboutResolution No. 5294NO. 5294
A 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.
PASSED: 8:0
RE.IECTED:
OPPOSED:
ABSENT:
CONSIDERED: Apr0 13, 2020
0
RESOLUTION NO. 5294
A 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.
The City Council of the City of Eugene, Oregon that:
A. Cascade Manor, Inc., a nonprofit 501(c)(3) corporation (the `Borrower"), and an
affiliate of Pacific Retirement Services, Inc., a nonprofit 501(c)(3) corporation, owns a
continuing care retirement community (the "CCRC") located at 65 W 30t' Avenue, 74 W 29h'
Avenue, 76 W 29"' Avenue, 78 W 29th Avenue, 70 W 29"' Place, 46 W 29"' Place, 2960 Portland
Street, 2962 Portland Street, 2976 Portland Street, 45 W 29h' Place, 47 W 29h' Place, 53 W 29h'
Place, 61 W 29t' Place, 65 W 29h' Place and 2926 Portland Street, all in Eugene, Oregon 97405.
B. In October 2014, The Hospital Facilities Authority of the City of Medford,
Oregon (the "Authority") previously issued tax-exempt conduit bonds in the aggregate principal
amount of $33,842,000 (the "2014 Bonds"), for the benefit of the Borrower, which financed and
refinanced all or a portion of the costs of constructing, renovating, improving, enlarging,
furnishing and equipping senior housing units, community amenities and additional common
areas, including furniture, fixtures and equipment ("FF&E") and other capital improvements at
the Borrower's CCRC (such financed and refinanced assets, collectively, the "2014 Project").
C. In connection with the issuance of the 2014 Bonds, the City Council of the City of
Eugene held a public hearing and approved a Resolution approving the Project and the issuance
of the 2014 Bonds by the Authority.
D. When residential housing units at the Project are turned over for new residents to
occupy, new FF&E is purchased for such units, but used FF&E in the residential housing units,
which were financed with proceeds of the 2014 Bonds, may still have economic value and may
be sold at fair market value, the cash proceeds of which (the "Sale Proceeds") may then be used
to purchase the new FF&E or to make other capital improvements to the CCRC (the "Reissued
2014 Bonds Project").
E. The Authority has received a request from the Borrower to reissue, for tax
purposes, one or more series of tax-exempt conduit bonds in an aggregate principal amount not
to exceed $5,000,000 (the "Bonds"), pursuant to a plan of finance, under the federal tax remedial
action rules in Treasury Regulation 1.141-12(e)(1) (the "Tax Regulations"), for the purpose of
paying the costs of the Reissued 2014 Bonds Project. Under the Tax Regulations, the Authority
may only use the Sale Proceeds to pay costs of the Reissued 2014 Bonds Project if the 2014
Resolution -- Page 1 of 2
Bonds are treated as reissued for federal tax purposes and all requirements for the issuance of
tax-exempt debt are met with respect to the Reissued 2014 Bonds.
F. Under Section 147(f) of the Internal Revenue Code of 1986, as amended,
qualified 501(c)(3) bonds, such as the Reissued 2014 Bonds, must be approved by the applicable
elected representatives of (i) the governmental unit issuing such bonds (the Authority) and (ii)
the governmental unit having jurisdiction over the area in which the Project is located (the City
of Eugene, Oregon).
G. The principal and interest on the Reissued 2014 Bonds will not constitute a debt
of the City of Eugene, Oregon, the City of Medford, Oregon or the Authority, nor shall the
Reissued 2014 Bonds be payable from any funds of the City of Eugene, including 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 Reissued 2014 Bonds will be payable only from the
revenues and resources of the Borrower pledged to the payment of the Reissued 2014 Bonds.
H. On March 19, 2020, a notice of public hearing was published in the Register -
Guard newspaper. A Hearings Officer conducted a public hearing on Thursday, March 26, 2020
at 9:03 a.m. with respect to the proposed reissuance by the Authority of the Bonds. The
Hearings Officer produced a Public Hearing Report setting out the results of 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 and reissuance by The Hospital Facilities Authority of the City of
Medford, Oregon of the Bonds in an amount not to exceed $5,000,000.
Section 2. Effective Date. This Resolution shall take effect immediately upon
adoption.
The foregoing Resolution adopted this 13th day of April, 2020.
City Recorder -OeP
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