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Committee forwards $26 million conduit financing request for Luther Care to full council
Summary
The Finance Committee moved Resolution 49-20-25 to authorize tax-exempt conduit financing through Lancaster Municipal Authority for a $26 million Luther Care project; presenters emphasized the financing would be conduit debt, not an obligation of the city.
The Finance Committee on July 1 forwarded Administration Resolution 49-20-25 to the full Lancaster City Council. The resolution would authorize the Lancaster Municipal Authority to issue tax-exempt conduit financing of $26,000,000 for Luther Care to acquire and develop 37 homes and related capital improvements in Lititz and other related locations.
Aaron Hollis, solicitor for Lancaster Municipal Authority, explained the financing is conduit financing: the municipal authority’s name will appear on the issue but the city and the Lancaster Municipal Authority will not have direct financial obligation for the notes; the lender will bear the obligation. Hollis said approvals are also being sought in partner municipalities where portions of the project are located.
Committee members asked no substantive follow-up questions. Hollis confirmed the issuance does not obligate the city. No public speakers registered comments on the item during the committee session.
A committee member moved to forward Resolution 49-20-25 to full council; the committee recorded an affirmative voice vote. The resolution will appear on the full council agenda for formal approval and any additional disclosures or conditions that council may set.
