M E M O R A N D U M
To: Honorable Mayor and Town Council
From: Rafael G. Casals, Town Manager
Date: November 20, 2013
Re: Alachua County Health Facilities Authority Revenue Bonds to Finance and Refinance Certain Capital Improvements for East Ridge Retirement Village Inc.
(Application No.: SP-2013-023)
REQUESTtitle
A RESOLUTION PROVIDING LIMITED APPROVAL TO THE ISSUANCE BY THE ALACHUA COUNTY HEALTH FACILITIES AUTHORITY (THE "AUTHORITY") OF ITS HEALTH FACILITIES REVENUE BONDS (EAST RIDGE RETIREMENT VILLAGE, INC. PROJECT) IN ONE OR MORE SERIES AND IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $79,500,000, WHICH WILL BE USED PRINCIPALLY TO FINANCE AND REFINANCE CERTAIN CAPITAL IMPROVEMENTS FOR EAST RIDGE RETIREMENT VILLAGE, INC. LOCATED IN THE TOWN OF CUTLER BAY, FLORIDA; AND PROVIDING AN EFFECTIVE DATE.
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APPLICANT
East Ridge Retirement Village, Inc.
LOCATION
Address: 19301 SW 87th Avenue
Folio Numbers: 36-6003-001-0240
Legal Description: 3 56 40 66.14 AC Perrine Grant Sub PB 4-10 Lots 13 & 14 IN NW1/4 & Lots 3 thru 6 IN NW ¼ of SW ¼ & PT Lot 7 in SW ¼ Beg NW COR E280 Ft. S 516 Ft. E385 Ft SWLY ALG WLY R/W/L
BACKGROUND AND ANALYSIS
On August 21, 2013, the Town Council adopted Resolution #13-67 approving the issuance of tax exempt Health Facilities Revenue Bonds in an amount not to exceed $69,000,000 by the Alachua County Health Facilities Authority (the “Authority”) to finance the proposed improvement at East Ridge Retirement Village. Following the August 21st meeting, there was a re-evaluation of the project construction cost estimates and it was determined that the original estimated $69,000,000 was not sufficient to finance the entire project (Attachment “A”). On October 29, 2013, the Authority held a public hearing and adopted a new resolution (2013-3) to increase the approved issue from $69,000,000 to $79,500,000. The new estimates will not modify the improvements approved by the Town Council as part the site plan modification. As indicated in the manager’s memorandum, dated August 21, 2013, the bond proceeds will be used to fund the following activities:
(A) Financing the cost of (or reimburse itself for prior expenditures for) (i) construction, acquisition and equipping of 90 new assisted living units, 31 new memory support units and 74 new skilled nursing beds to replace existing assisted living and skilled nursing units; (ii) improving certain roads, parking sites and landscaping; (iii) construction of new lobby area, roadway extension, courtyard, stormwater, sewer and utilities improvements, community common space for use of the residents, activity rooms and other common areas associated with the new assisted living, memory support and skilled nursing units, a new kitchen, and a new dining room for the existing independent living units; (iv) refurbishing existing common areas; (v) replacing utilities infrastructure; and (vi) various additional capital improvements and equipment.
(B) Pay costs and fund necessary reserves associated with the issuance of the bonds.
The sole and limited purpose of the Town's approval of the issuance of the bonds by the
Authority is to comply with the Federal tax laws under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). The Town will not issue, and will not be obligated on, the bonds. In other words, the Town has no liability with respect to the issuance of the bonds or the repayment of any debt service relating to such bonds. In order for East Ridge to obtain financing on a tax exempt basis, the TEFRA hearing must be completed by the legislative body in which the proposed project will be located. This means that the Town Council is required to hold a public hearing providing members of the Town the opportunity to speak for or against the proposed property being financed with tax exempt
bonds. Notice of the public hearing was published in the Miami Herald at least 14 days before the Town Council meeting.
RECOMMENDATION
Town staff recommends approval of the attached Resolution.