The Michigan Strategic Fund (the “MSF”) will hold a public hearing at 9:00 a.m., prevailing Eastern Time, on May 20, 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”) on behalf of United Methodist Retirement Communities, Inc., 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 Twenty-Five Million Dollars ($25,000,000).
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 from the MSF, together with other available funds, to: (i) pay or reimburse the costs of the Project (as defined below); (ii) refund a portion of the outstanding Michigan Strategic Fund Limited Obligation Revenue Bonds (United Methodist Retirement Communities, Inc. Project), Series 2013 (the “Series 2013 Bonds”); (iii) fund a debt service reserve account for the Bonds; and (iv) pay the costs of issuing the Bonds.
Not to exceed $19,500,000 of the proceeds of the Bonds will be used to pay or reimburse the costs of the Project, which includes the following capital improvements on the Corporation’s Chelsea Retirement Community campus located in the City of Chelsea, County of Washtenaw, Michigan, with a street address of 805 West Middle Street, Chelsea, Michigan 48118 (the “CRC Campus”): (i) the expansion, renovation, furnishing and equipping of the Corporation’s existing skilled nursing facility, including the construction of private rooms/baths and upgrades to support space and dining space; (ii) the construction, furnishing and equipping of a new approximately 10,000 square-foot wellness center; and (iii) the renovation, furnishing and equipping of an approximately 20,000 square-foot office building to house administrative offices (the foregoing improvements are collectively referred to herein as the “Project”).
Not to exceed $5,500,000 of the proceeds of the Bonds will be used to refund a portion of the Series 2013 Bonds. The proceeds of the Series 2013 Bonds were used by the Corporation to: (i) pay the costs of constructing, furnishing and equipping of approximately 66 licensed assisted living resident rooms and related site improvements on the Corporation’s CRC Campus (the “2013 Project”); (ii) fund a debt service reserve account for the Series 2013 Bonds; and (iii) pay the costs of issuing the Series 2013 Bonds.
The Project and the 2013 Project will be owned and operated by the Corporation in furtherance of the Corporation’s charitable purpose as a nonprofit provider of long-term care facilities and other health and human services for seniors.
The Bonds will be limited obligations of the MSF, payable only from loan repayments to be made by the Corporation to the MSF. 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
Dated: May 10, 2019