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Delaware County approves up to $20 million in revenue bonds to refinance Ohio Living Powell loan
Summary
Delaware County commissioners unanimously approved a resolution authorizing up to $20 million in health-care facility revenue bonds to refinance a taxable loan taken to acquire Gantz Horn Suites, with county officials noting the county bears no repayment liability.
Delaware County commissioners voted unanimously to approve Resolution 26-264, authorizing the issuance of up to $20 million in health-care facility revenue bonds to refinance a taxable loan for Ohio Living Powell LLC.
Ben Kito, a partner at Ice Miller and bond counsel to Ohio Living Powell LLC, told the board the transaction would issue variable-rate bonds that are to be fixed with an interest-rate swap and purchased by West Banco. "The bonds are structured so that they are not a debt of the county," Kito said, adding that all repayment obligations would rest with Ohio Living Powell LLC.
Kito said the financing is a tax-exempt refinancing of a previously taxable loan used by an affiliate of Ohio Living Communities to acquire the Gantz Horn Suites. The structure, he said, is similar to a 2016 financing used for another local Ohio Living facility. Counsel told the commissioners the closing is proposed for the first half of May if the board approves the resolution.
Commissioner Merrell thanked counsel for making clear the county would not be liable for repayment. A commissioner asked whether any proceeds would be used for additions or new construction; Kito confirmed the transaction is strictly a refinancing and would not fund property expansion.
The board opened the hearing for public comment and received none. Afterward, Clerk Jennifer read the resolution language describing the authorization to issue and sell one or more series of health-care facility revenue bonds, to execute a base lease and related lease documents, and to enter a bond-purchase agreement and related financing documents.
The vote on Resolution 26-264 was recorded verbally: Commissioner Lewis, Commissioner Merrell and Commissioner Benton each answered "Aye," and the motion passed. The record shows the approved authorization would allow up to $20 million in aggregated principal for the Series 2026 Ohio Living Powell bonds.
After approving the resolution, the commissioners moved to enter executive session under Resolution 26-265 to consider appointment of a public official or public employees; that motion also carried by recorded voice votes.
The hearing record indicates no public opposition or comment was received at the public hearing; the petitioners said the financing would be used to convert a taxable loan to tax-exempt debt with expected interest-rate savings. The county chair and counsel emphasized on the record that the county is not a repayment obligor on the bonds.
