Committee of the Whole gives favorable recommendation for $7.5 million Collington bond for predevelopment costs

Prince George’s County Council Committee of the Whole on April 1, 2025, voted to give a favorable recommendation for resolution CR-39-2025, authorizing the issuance and sale of economic development revenue bonds in an aggregate principal amount not to exceed $7,500,000 to Collington Episcopal Life Care Community, Inc., a nonprofit life‑plan community in Mitchellville.

The county’s action would be conduit financing: the county would issue bonds on behalf of Collington, but Collington would be solely responsible for debt service and transaction costs, and the nonprofit has agreed to indemnify the county. The $7.5 million request is intended to cover predevelopment costs — architecture, planning and engineering — with any larger construction financing to be sought later, county staff said.

Nathaniel Tutt, a county staff member who presented the item, said Collington’s campus is about 125 acres at 10450 Locksford Road in Mitchellville and described the existing and proposed facilities. The community currently includes roughly 330 independent living units, about 41 assisted‑living beds and about 36 memory‑care beds, and the expansion discussed would add new cottages and villas, replace the existing Clayton Center with a health center and add apartments and additional assisted‑living beds.

Amy Castleberry, a financing adviser with Ziegler working with Collington, said most current Collington rates are market based and that the community does not have an “official affordable housing component,” but it operates a foundation that can assist residents who outlive their assets so they can remain at the community. Castleberry also confirmed the $7.5 million request is for initial predevelopment work and that a larger construction financing request would come later.

County staff and Collington’s counsel told the committee the county had previously acted as conduit issuer for Collington in 2017 (CR‑6‑2017), when the county issued tax‑exempt revenue bonds in an original principal amount of $63,995,000. The 2025 bonds would be taxable, staff said, in part because the $7.5 million is a relatively small, short‑term financing. Staff said the expected timetable is to issue the bonds in late April or early May, with a maturity schedule not to exceed the 30‑year legal maximum; staff expect a much shorter maturity and said a bank identified in Collington’s letter of intent had proposed a roughly 30‑month term under its term sheet.

A number of council members sought clarifications about liability, timing and constituent benefit. Staff emphasized the county would have no obligation to pay debt service or transaction costs on the bonds and that Collington had agreed to indemnify the county and to pay issuance fees. Staff estimated the county’s fee would be one‑eighth of 1 percent of the issuance amount.

Council debate included a brief procedural dispute over whether to hold the matter to allow an incoming District 5 council member additional time to engage; that motion to hold was made as a substitute but later withdrawn. Vice Chair Oriada abstained on final action and explained the abstention during roll call, saying she had concerns about how quickly some administrative processes move and that she had not had adequate time to digest materials before the meeting: “I have real concerns with how fast sometimes these processes move … I didn't have chance to digest it, and we're asked to do it in a day.”

The Committee of the Whole recorded a 6–0–1 result on the favorable recommendation (six ayes, one abstention). The committee’s favorable recommendation moves the item back to the full County Council for final consideration under the council’s normal schedule.

Clarifying details discussed at the meeting include the campus address (10450 Locksford Road, Mitchellville), campus size (about 125 acres), current and proposed unit/bed counts mentioned by staff, the intended use of proceeds (predevelopment: architects, planning, engineering), the requested issuance amount ($7,500,000), the expected issuance timing (late April/early May, with a target to close by April 30 if possible), the maximum legal maturity (30 years) and a proposed bank term sheet with a roughly 30‑month term. Staff said the county’s reimbursable issuer fee would be 0.125% (one‑eighth of 1%) of the issuance amount.

The committee hearing record shows the administration sought the favorable recommendation and brought staff from the Office of Finance and the Office of Law, Collington representatives and Collington’s financing adviser to answer questions. No formal changes to the resolution were made during the committee session.

The committee’s favorable recommendation does not itself obligate the county to any payment; final terms and any construction financing would be subject to later approvals and documentation.