Committee moves proposed Shepherd of the Valley conduit bond to council; project in Salem ~ $60M, bond up to $120M

Council's Committee of the Whole heard a presentation on a proposed conduit bond for Shepherd of the Valley, with Aubrey Siri of Dinsmore & Shohl serving as bond counsel and Rich L., chief executive officer of Shepherd of the Valley, providing project details. According to the presentation, Chapter 140 of the Ohio Revised Code allows political subdivisions to issue tax-exempt bonds on behalf of nonprofit hospital or senior-living facilities, enabling nonprofits to borrow at lower interest rates by using the city as a conduit.

Committee members heard that the bonds are proposed in an amount not to exceed $120,000,000 and that the Salem portion of the project would be roughly $60,000,000. The presentation said the purpose of the financing is to construct a new senior living facility in Salem and to refinance some existing debt for Shepherd of the Valley facilities in Trumbull and Mahoning counties. Committee discussion included occupancy and market interest: the presenter reported about 80 people on an interest list and 5 commitments for condos out of an initial 12 in phase one; phase one occupancy is estimated to be complete by May 2026.

After discussion, the committee "moved and passed unanimously to move the issue to council," and the minutes record that a public hearing will be held at 6:45 p.m. prior to the council meeting (as stated in the committee minutes read into the record). No formal council-level approval of bonds occurred at the Nov. 5 regular meeting; the committee referral sends the proposal to council for a future decision.

This item was presented in committee with bond counsel and Shepherd of the Valley representatives present; further materials (detailed financing terms, final bond documents and a resolution or ordinance authorizing issuance) were not included in the portion of the record read at the Nov. 5 meeting.