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Commissioners approve TEFRA hearing action for nonprofit continuing-care operator
Summary
Montgomery County approved a TEFRA-related resolution permitting issuance of an amended note up to $11.5 million for Axe Management Services, a nonprofit continuing-care retirement community operator, with county officials emphasizing no county credit or taxing authority is pledged.
Montgomery County commissioners authorized a TEFRA-related resolution on Feb. 19 that clears a refinancing transaction for Axe Management Services Incorporated, a not-for-profit operator of continuing-care retirement communities.
Steve Forster, the county’s director of commerce, presented the request: "Before you today is a request by Axe Management Services Incorporated, seeking a resolution approving the issuance of an amended note in an amount not to exceed $11,500,000," he said. Forster said the note amends a 2021 note and was approved by the local industrial development authority after a TEFRA hearing; because the borrower is based in Montgomery County, TEFRA requires approval by the county’s highest elected official for the county where funds are used.
Forster told commissioners the refinancing would benefit health, safety and welfare by strengthening the operator’s balance sheet, extending debt term and preserving jobs; he also stated the county's general credit and taxing authority would not be pledged and that the county assumes no financial obligation. Commissioners voted to approve the solicitor-drafted resolution.
The approval allows the refinancing to proceed through the issuer and borrower processes described in the TEFRA documentation; the county's role is the required approval step given the geographic location of the project.
