NOTICE OF PUBLIC HEARING ON PROPOSED PROJECT AND FINANCIAL ASSISTANCE RELATING THERETO
Notice is hereby given by Chautauqua County Capital Resource Corporation (the “Issuer”) that a public hearing pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), and, as required by the Issuer’s certificate of incorporation, Section 859-a of the General Municipal Law of the State of New York will be held by the Issuer on the 22nd day of November, 2017 at 10:30 o’clock a.m. local time, 201 West 3rd Street, 2nd Floor Board Room in the City of Jamestown, Chautauqua County, New York, in connection with the following matters:
Lutheran Housing Administrative Services Group, Inc. d/b/a Lutheran Senior Housing, a New York not-for-profit corporation (the “Borrower”), has submitted an application (the “Application”) to the Issuer, a copy of which Application is on file at the office of the Issuer, which Application requested that the Issuer consider undertaking a project (the “Project”) for the benefit of the Borrower, said Project consisting of the following: (A)(1) the acquisition of an interest in multiple parcels of land located on Falconer Street (tax map numbers: 371.09-1-12, 371.09-1-11, 371.09-1-10 and 371.09-1-9) and Aldren Avenue (tax map numbers: 371.09-1-8, 371.09-1-13 and 371.09-1-2) in the City of Jamestown, Chautauqua County, New York (collectively, the “Land”), together with existing buildings located therein (collectively, the “Existing Facility”), (2) the demolition of a portion of the Existing Facility, the renovation of the remainder of the Existing Facility and the construction of an approximately 18,600 square foot building on the Land (the “New Facility” and collectively with the Existing Facility, as renovated and demolished, the “Facility”), (3) the making of other improvements therein, including, but not limited to, landscaping, parking and upgrades to technology systems, (collectively, the “Improvements”) and (4) the acquisition and installation thereon and therein of certain related furniture, fixtures, machinery and equipment (collectively, the “Equipment”) (the Land, the Facility and the Equipment hereinafter collectively referred to as the “Project Facility”), all of the foregoing to constitute an affordable/assistive senior living facility; (B) the refinancing of certain taxable financing used to pay costs of renovation and equipping of the Existing Facility; (C) the financing of all or a portion of the costs of the foregoing by the issuance of revenue bonds of the Issuer in one or more issues or series in an aggregate principal amount sufficient to pay the cost of undertaking the Project, together with necessary incidental costs in connection therewith, presently estimated to be approximately $7,300,000 (the “Obligations”); (D) paying a portion of the costs incidental to the issuance of the Obligations, including issuance costs of the Obligations and any reserve funds as may be necessary to secure the Obligations; and (E) the making of a loan (the “Loan”) of the proceeds of the Obligations to the Borrower or such other person as may be designated by the Borrower and agreed upon by the Issuer.
The Issuer is considering whether (A) to undertake the Project, (B) to finance the Project by issuing, from time to time, the Obligations, (C) to use the proceeds of the Obligations to pay the cost of undertaking the Project, together with necessary incidental costs in connection therewith, and (D) to provide certain exemptions from taxation with respect to the Project, including (1) exemption from mortgage recording taxes with respect to any documents, if any, recorded by the Issuer with respect to the Project in the office of the County Clerk of Chautauqua County, New York or elsewhere, and (2) exemption from deed transfer taxes on any real estate transfers with respect to the Project, if any.
If issuance of the Obligations is approved, interest on the Obligations will not be excludable from gross income for federal income tax purposes unless (A) pursuant to Section 147(f) of the Code and the regulations of the United States Treasury Department thereunder (the “Treasury Regulations”), the issuance of the Obligations is approved by the County Executive of Chautauqua County, New York after the Issuer has held a public hearing on the nature and location of the Project Facility and the issuance of the Obligations; and (B) pursuant to Section 145(a) of the Code, all property which is to be provided by the net proceeds of the Obligations is to be owned by a Section 501(c)(3) organization or a governmental unit and at least ninety-five percent (95%) of the net proceeds of the Obligations are used with respect to (1) state or local governmental units and/or (2) the activities of Section 501(c)(3) organizations which do not constitute “unrelated trades or businesses” (as defined in Section 513(a) of the Code) with respect to such Section 501(c)(3) organizations.
If the Issuer determines to proceed with the Project and the issuance of the Obligations, (A) the proceeds of the Obligations will be loaned by the Issuer to the Borrower pursuant to a loan agreement (the “Agreement”) requiring that the Borrower or its designee make payments equal to debt service on the Obligations and make certain other payments to the Issuer and (B) the Obligations will be a special obligation of the Issuer payable solely out of certain of the proceeds of the Agreement and certain other assets of the Issuer pledged to the repayment of the Obligations. THE OBLIGATIONS SHALL NOT BE A DEBT OF THE STATE OF NEW YORK OR CHAUTAUQUA COUNTY, NEW YORK, AND NEITHER THE STATE OF NEW YORK NOR CHAUTAUQUA COUNTY, NEW YORK SHALL BE LIABLE THEREON.
Pursuant to Article 8 of the Environmental Conservation Law, Chapter 43-B of the Consolidated Laws of New York, as amended (the “SEQR Act”) and the regulations (the “Regulations”) adopted pursuant thereto by the Department of Environmental Conservation of the State of New York (collectively with the SEQR Act, “SEQRA”), by resolution adopted by the members of the Issuer on October 26, 2017 (the “SEQR Resolution”), the Issuer determined (A) to conduct an uncoordinated review of the Project and (B) that the Project is an “Unlisted action” which will not have a significant effect on the environment and, therefore, that an environmental impact statement is not required to be prepared with respect to the Project, and (C) as a consequence of the foregoing, to prepare a negative declaration with respect to the Project.
The Issuer will at said time and place hear all persons with views on the location and nature of the proposed Project, the financial assistance being contemplated by the Issuer in connection with the proposed Project or the proposed plan of financing the proposed Project by the issuance from time to time of the Obligations. A copy of the Application filed by the Borrower with the Issuer with respect to the Project, including an analysis of the costs and benefits of the Project, is available for public inspection during business hours at the offices of the Issuer. A transcript or summary report of the hearing will be made available to the members of the board of directors of the Issuer and to the County Executive of Chautauqua County, New York. Approval of the issuance of the Obligations by Chautauqua County, New York, acting through its elected County Executive, is necessary in order for the interest on the Obligations to qualify for exemption from federal income taxation.
Additional information can be obtained from, and written comments may be addressed to: Kevin M. Sanvidge, Administrative Director/Chief Executive Officer, Chautauqua County Capital Resource Corporation, 201 W. Third Street, Jamestown, New York, 14701; Telephone: (716) 661-8900.
Dated: November 6, 2017.
CHAUTAUQUA COUNTY CAPITAL RESOURCE CORPORATION
BY: Richard E. Dixon,
Chief Financial Officer