Council set to hear public‑hearing on Butterfield Trail Village revenue bonds issued via Public Facilities Board

At the agenda‑planning session, representatives of Butterfield Trail Village described a proposed assisted‑living expansion and explained a financing plan that would use the Fayetteville Public Facilities Board as a conduit issuer.

Kevin Spears, CEO of Butterfield Trail Village, told council members the project is a roughly 40,000‑square‑foot, 38‑room assisted‑living building intended to meet contractual obligations to current residents at the 44‑acre campus. "We house about 418 residents," Spears said, and the proposed expansion responds to a shortage of assisted‑living beds on their campus.

Sarah Giamo, bond counsel with Friday Eldridge & Clark, explained the financing structure: the Public Facilities Board would issue public facilities revenue bonds as conduit financing and Butterfield Trail Village would be the obligor repaying the bonds. "The entity that's actually responsible for repaying the debt is Butterfield Trail Village," Giamo said, adding that the bonds are a qualified 501(c)(3) issuance under the tax code.

Aaron Berg, chair of the Public Facilities Board, earlier described the board's statutory authority to participate in low‑ and moderate‑income residential housing, health care facilities, elderly care facilities, and to issue revenue bonds for certain projects; he said the board typically operates as a pass‑through and that, in past projects, the city has not been on the hook for repayment.

The council acknowledged that the item will be the subject of a public hearing at next week’s meeting and that staff will open the record then. No council vote occurred at the planning session. Bond counsel and facility representatives said staff will provide required public notice and documentation for the hearing.