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Commission approves statement allowing Colorado Health Facilities Authority bond issuance tied to Covenant Living projects
Summary
The commission approved a resolution allowing the Colorado Health Facilities Authority to issue tax‑exempt bonds (up to $180 million aggregate) as a local jurisdiction approval required for certain 501(c)(3) financings; the city is not financially liable for the bonds.
The City Commission approved a resolution accommodating a proposed bond issuance by the Colorado Health Facilities Authority that would allow authority‑issued bonds to be loaned to Covenant Living Communities and Services for projects in multiple states, including a project at 2510 Lake Michigan Drive NW in Grand Rapids.
City staff described the action as a required local jurisdiction approval under the city code rather than a city debt or fiscal commitment. “This public hearing does not impose any liability financially, financial or otherwise, on the city,” staff said while explaining the accommodation is a formality necessary for certain 501(c)(3) bond qualifications.
City bond counsel and Covenant Living representatives were available during the hearing but the commission received no substantive fiscal questions from the public other than a resident who asked why an issuance would finance projects nationwide rather than exclusively within Michigan. Staff clarified that the resolution is part of the statutory process and that other jurisdictions have provided similar approvals for the same issuance.
The public record for the issuance shows an aggregate principal cap of up to $180,000,000 and that up to $38,500,000 of proceeds would be allocated to construction, renovation, equipment and the issuer’s issuance expenses. The commission voted in favor of the resolution by voice vote; no roll‑call tally was recorded in the meeting minutes.
