Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Bonds topic
No spam. Unsubscribe anytime.
Wesley Village seeks $6.5M bond refinancing and assisted-living addition; city asked to act as conduit issuer
Summary
Wesley Village asked the Macomb committee to authorize the city to act as a conduit issuer for up to $6.5 million in tax-exempt, bank-qualified bonds to refinance $4.5M of existing debt, reimburse prior project costs and fund about $750,000 of new assisted-living construction (26 suites). Staff said council approval would be required and the item will go to the full council before year-end.
Wesley Village representatives presented a proposal on Nov. 10 asking the City of Macomb to act as a conduit issuer for tax-exempt, bank-qualified bonds to support an assisted-living expansion.
Jeff DeJody, counsel for Wesley Village, told the committee the city can issue up to $10 million in tax-exempt, bank-qualified bonds per calendar year and may serve as a conduit issuer for nonprofits without reducing the city's own bonding capacity. "We can either use those for our own use or we can be what's called a conduit issuer to other nonprofits," DeJody said, noting the city has done similar conduit issuances previously.
Shelley Martin, a Wesley Village representative, described the project as a $6.5 million bond plan: $4.5 million to refinance existing debt, roughly $1,000,000 to reimburse recent projects paid from the nonprofit's budget, and about $750,000 for new assisted-living construction to create a 26-suite assisted-living unit on the campus's second floor. Martin said Wesley Village has raised $465,000 toward a $600,000 fundraising goal, cited a bequest from the Felheimer Trust among donations and said the conversion would not displace current residents because about 15 apartments are vacant.
Committee members expressed support for the project and its alignment with community needs for assisted living. Chair and staff said the matter will be placed on the city council agenda for action, with the expectation it could come before council before the end of the year. No formal council vote occurred at the committee meeting.
If the council approves the city acting as conduit issuer, legal documentation will be reviewed by city counsel and bond counsel and the city would not be issuing bonds for its own purposes this calendar year, staff said.
