AGENDA DATE: 1/12/2022
TITLE:
Title
Approval of Westminster Canterbury of the Blue Ridge Request for Bond Issuance
BODY
SUBJECT/PROPOSAL/REQUEST: Approve by resolution the Economic Development Authority’s issuing of bonds for Westminster Canterbury of the Blue Ridge Bond to refinance debt and pay for capital projects
ITEM TYPE: Consent Action Item
STAFF CONTACT(S): Richardson, Kamptner, DeLoria, Johnson
PRESENTER (S): Richard DeLoria; Anne Curtis Saunders, Esq., Counsel for Westminster Canterbury; Gary Selmeczi, President and CEO of Westminster-Canterbury of the Blue Ridge
LEGAL REVIEW: Yes
REVIEWED BY: Jeffrey B. Richardson
BACKGROUND: Westminster-Canterbury of the Blue Ridge is a non-profit retirement community offering various services, such as independent and assisted living, and nursing and memory care. Westminster-Canterbury of the Blue Ridge is in the Pantops area of Albemarle County and is an accredited Type A Lifecare community. It focuses on improving the lives of its residents and, in the finding of the EDA, provides a public good. On December 14, 2021, the EDA held a public hearing in accordance with Virginia Code Sec. 15.2-4906 and voted to approve the bond issue request.
STRATEGIC PLAN: Thriving Development Areas - Attract quality employment, commercial, and high density residential uses into development areas by providing services and infrastructure that encourage redevelopment and private investment while protecting the quality of neighborhoods.
DISCUSSION: The Applicant requests the Board to approve the EDA issuing up to $73,000,000 of the Series 2022 Bonds:
1. to refinance the EDA’s Residential Care Facility Mortgage Revenue Bonds (Westminster-Canterbury of the Blue Ridge), Series 2012A (the "2012A Bonds"), proceeds of which were used to finance (a) certain capital improvements at the Community and (b) a debt service reserve fund, capitalized interest, and costs of issuance in connection with the issuance of the 2012A Bonds; and
2. to refinance the EDA’s Residential Care Facility Mortgage Revenue and Refunding Bond (Westminster-Canterbury of the Blue Ridge), Series 2016A and Residential Care Facility Mortgage Revenue Refunding Bond (Westminster-Canterbury of the Blue Ridge), Series 2016B (collectively, the "2016 Bonds"), proceeds of which were used to (a) finance certain capital improvements at the Community, (b) refinance existing debt of the Borrower that refinanced the costs of certain improvements at the Community, and (c) finance a debt service reserve fund, capitalized interest and costs of issuance in connection with the 2016 Bonds; and
3. to finance other capital projects at the Community all within the existing structures or existing parking facilities located at the Community and amounts required for reserves, working capital, capitalized interest, costs of issuance and other financing expenses related to the issuance of the Bonds.
The Series 2022 Bonds that the Applicant is requesting the EDA to issue would be "qualified 501(c)(3) bonds" under the Tax Code, which are a type of bonds that benefit from being issued as tax-exempt.
Public approval of the EDA’s decision is required through this Board, which must approve or disapprove of the financing within sixty calendar days of the EDA’s December 14 public hearing. Virginia Code Sec. 15.2-4906(C).
Adoption of the attached Resolution imposes no financial obligation to or pledge of credit from Albemarle County.
BUDGET IMPACT: There will be no budgetary impact by adopting the Resolution. However, the EDA will receive a recurring payment of annual fees in the amount of $750 per $1,000,000 of bonds issued.
RECOMMENDATION:
Recommendation
Staff recommends that the Board adopt the attached Resolution (Attachment B) approving the Resolution.
ATTACHMENTS:
A - EDA Inducement Resolution and Westminster Canterbury of the Blue Ridge Fiscal Impact Statement
B - Resolution Approving EDA Inducement Resolution