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Warren County commissioners approve inducement resolution for up to $8 million in hospital facility revenue bonds for Community First Solutions
Summary
Commissioners voted to indicate the county's intent to issue conduit hospital facilities improvement revenue bonds, not county debt, to finance Community First Solutions’ acquisition of a 41-unit assisted living facility in Mason; bond amount capped at $8 million.
The Warren County Board of Commissioners approved an inducement resolution indicating the county’s intent to issue hospital facilities improvement revenue bonds not to exceed $8,000,000 to finance Community First Solutions’ acquisition of an assisted-living facility on Reading Road in Mason.
Ally Kimbler, bond counsel with Dinsmore & Shohl, told commissioners the transaction would be issued through the county as a conduit issuer. "As a conduit issuer for these bonds, they are not general obligations or debt of the county, and no bondholders have the right to seek repayment on the bonds from the county or any taxpayer front funds. They are solely repayable by the borrower," Kimbler said.
Brian Krause, chief financial officer of Community First Solutions, attended the presentation with bond counsel and the law firm. Kimbler said the facility being acquired is a 41-unit assisted-living facility on about 3.2 acres.
Commissioners recorded their approval on the resolution during the work session. The inducement resolution authorizes staff and counsel to continue the bond process; it does not by itself issue bonds or create county debt. Commissioners and bond counsel said further documentation and later approvals will be required before bonds are sold.
No public speakers opposed or requested additional conditions during the portion of the meeting that covered the inducement resolution.
The county’s role as conduit issuer means bondholders’ recourse is against the borrower, Community First Solutions, rather than against Warren County taxpayers. Commissioners asked no substantive questions before taking the roll call approving the inducement resolution.
