Kalispell sets public hearing and gives preliminary approval for conduit bonds for Emmanuel Living at Buffalo Hill

The Kalispell City Council adopted a resolution of intent to consider issuing conduit revenue bonds to refinance previously issued bonds and to finance capital improvements for Emmanuel Living at Buffalo Hill, a nonprofit continuing‑care retirement community. The council set a public hearing for April 7 as part of the process.

Staff explained the resolution provides nonbinding preliminary approval and starts the statutory notice and public hearing process required under Montana law for conduit financings. City attorney John Prepple and staff said conduit revenue bonds are issued by the city as a conduit issuer and that, if structured as proposed, the bonds would be secured by the borrower’s revenues—Emmanuel Living—and would not constitute a general obligation or direct financial liability of the city. Staff also noted a three‑week notice requirement for the public hearing.

Councilor Hunter asked why Emmanuel Living was using the city as a conduit rather than seeking bank financing; staff replied that conduit issuance often produces more favorable pricing for borrowers because of the governmental issuer’s tax-exempt status and legal framework. Staff reiterated that the city’s role as conduit should not expose the city’s credit to loss if the borrower defaults.

The council voted unanimously to adopt Resolution 62-45, granting preliminary approval and scheduling the required public hearing. The resolution emphasizes that final issuance depends on subsequent council action after the public hearing and on compliance with statutory and Internal Revenue Code requirements.

Next steps: the city will publish statutory notice, hold the April 7 public hearing and then decide whether to give final approval to issue the conduit revenue bonds after reviewing bond counsel materials and the public record.