The Michigan Strategic Fund (the “MSF”) will hold a public hearing at 10:00 a.m. on July 22, 2019, in the MSF’s offices located at 300 North Washington Square, 4th Floor, Lansing, Michigan, 48913, on the proposed issuance by the MSF of limited obligation revenue bonds (the “Bonds”) for the benefit of United States Steel Corporation, a Delaware corporation (“USS”). The Bonds are proposed to be issued in one or more series in the aggregate principal amount of not to exceed Twenty Six Million Dollars ($26,000,000), not more than Twenty Two Million Dollars ($22,000,000) of which will be used at USS’s Ecorse facility for the Project described below and not more than Five Million Dollars ($5,000,000) of which will be used at USS’s River Rouge facility for the Project described below.
The proceeds of the Bonds will be used by the MSF to make one or more loans to USS. USS will use the proceeds of the loan from the MSF, together with other available funds, to (a) pay the costs of the Project (as defined below), (b) pay capitalized interest on the Bonds, (c) fund a debt service reserve for the Bonds and (d) pay the costs of issuing the Bonds.
The proceeds of the Bonds will be used to finance or refinance the acquisition, construction, equipping and installation of certain pollution control (solid waste disposal) facilities at USS’s Ecorse and River Rouge facilities in order to better ensure compliance with environmental standards, and which financings will promote the economic welfare of the citizens of the State (the “Project”).
Additional details with respect to the Project to be financed with the proceeds of the Bonds is available upon request.
The Bonds shall be limited obligations of the MSF, payable only from loan repayments to be made by USS to the MSF and other security provided by USS. The Bonds will not be a general obligation of the MSF and will not be a debt of the State of Michigan (the “State”) or any political subdivision of the State. The MSF has no taxing power and the issuance of the Bonds will not obligate the State or any political subdivision of the State to levy or pledge any form of taxation for the Bonds or to make any appropriation for the payment of the bonds.
The hearing will provide a reasonable opportunity for expression of opinion, argument on the merits and introduction of documentary evidence pertaining to the proposed issuance of the Bonds. Written comments will be accepted by the MSF at 300 North Washington Square, Lansing, Michigan 48913, but must be received on or before the time and date of the hearing. The hearing site is handicapped accessible, including parking. Individuals with disabilities who need mobility, visual, hearing, and/or other assistance for effective participation should direct a request for assistance to Diane Cranmer at (517) 241-6750 in advance of the meeting.
Diane Cranmer, Loan Administrator
Michigan Strategic Fund
(517) 241-6750
Dated: July 9, 2019
The Michigan Strategic Fund (the "MSF") will hold a public hearing at 9:00 a.m., prevailing Eastern Time, on July 22, 2019 at the offices of the Michigan Economic Development Corporation located at 300 North Washington Square, 4th Floor, Lansing, Michigan 48913 on the proposed issuance by the MSF of limited obligation revenue and revenue refunding bonds (the "Bonds") for the benefit of Holland Home, a Michigan nonprofit corporation (the "Corporation"). The MSF proposes to issue the Bonds, in one or more series, in the aggregate principal amount of not to exceed Thirty-Five Million Dollars ($35,000,000).
The proceeds of the Bonds will be used by the MSF to make one or more loans to the Corporation. The Corporation will use the proceeds of the loan(s) from the MSF, together with other available funds, to: (i) pay or reimburse the costs of the Project (as defined below); (ii) currently refund all of the MSF's outstanding Variable Rate Demand Limited Obligation Revenue Bonds, Series 2004 (Holland Home Obligated Group) (the "Series 2004 Bonds") (not to exceed $10,050,000 of the Bonds); (iii) currently refund all of the MSF's outstanding Variable Rate Demand Limited Obligation Refunding Revenue Bonds, Series 2005A (Holland Home Obligated Group) (the "Series 2005A Bonds") (not to exceed $5,800,000 of the Bonds); (iv) currently refund all of the MSF's outstanding Variable Rate Demand Limited Obligation Refunding Revenue Bonds, Series 2005B (Holland Home Obligated Group) (the "Series 2005B Bonds") (not to exceed $4,250,000 of the Bonds); (v) fund a debt service reserve account for the Bonds; and (vi) pay the costs of issuing the Bonds.
Not to exceed $8,000,000 of the proceeds of the Bonds will be used to pay or reimburse the costs of the Project, which includes the following capital improvements: (i) construction, furnishing and equipping of a new 15-room, approximately 20,000 square foot assisted living facility to be located at 2495 and 2505 44th Street S.E. in the City of Kentwood, Kent County, Michigan, together with related site and other improvements (not to exceed $5,000,000 of the Bonds); (ii) renovation, furnishing and equipping of a portion of the existing approximately 30,700 square foot Breton Rehabilitation and Living Centre, a licensed adult foster care and skilled nursing facility, located at 2589 44th Street S.E. in the City of Kentwood, Kent County, Michigan (not to exceed $1,000,000 of the Bonds); (iii) renovation, furnishing and equipping of a portion of the existing approximately 159,000 square foot Raybrook Manor, a licensed home for the aged and skilled nursing facility, located at 2121 Raybrook Street, S.E. in the City of Grand Rapids, Kent County, Michigan, together with related site and other improvements (not to exceed $1,000,000 of the Bonds); and (iv) renovation, furnishing and equipping of a portion of the Corporation's approximately 51,600 square foot corporate office building located at 2100 Raybrook Street, S.E. in the City of Grand Rapids, Kent County, Michigan, together with related site and other improvements (not to exceed $1,000,000 of the Bonds) (the foregoing improvements are collectively referred to herein as the "Project").
The refunding of the Series 2004 Bonds, the Series 2005A Bonds and the Series 2005B Bonds will refinance costs of the acquisition of equipment and/or making of improvements to Fulton Manor, a licensed skilled nursing facility and home for the aged located at 1450 East Fulton in the City of Grand Rapids, Kent County, Michigan; the construction and equipping of an approximately 40,000 square foot addition to Raybrook Manor; the acquisition of land and the acquisition and renovation of a nursing home facility located at 2589 44th Street, S.E. in the City of Kentwood, Kent County, Michigan and home for the aged facilities, assisted living units and licensed nursing beds located at 2105-2121 Raybrook, S.E. and 1435-1450 East Fulton in the City of Grand Rapids, Kent County, Michigan.
All of the above described projects and facilities to be financed or refinanced with proceeds of the Bonds have been and will continue to be owned and operated by the Corporation or its affiliates for charitable purposes.
The Bonds will be limited obligations of the MSF, payable only from loan repayments to be made by the Corporation to the MSF and certain other security to be provided by the Corporation. The Bonds will not constitute an indebtedness of the MSF, the State of Michigan or any political subdivision thereof within the meaning of any constitutional or statutory provision and will not constitute or give rise to a charge against the general credit of the MSF or the credit or taxing power of the State of Michigan or any political subdivision thereof. The MSF has no taxing power. The hearing shall provide the fullest opportunity for expression of opinion, for arguments on the merits and for introduction of documentary evidence pertaining to the proposed issuance of the Bonds. Written comments will be accepted by the MSF at the address of the MSF set forth above, but must be received on or before the date and time of the hearing.
Diane Cranmer, Loan Administrator
Michigan Strategic Fund
(517) 241-6750
Dated: July 10, 2019
