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Event Details


Date:
October 18, 2021
Time:
7:00 PM
Location:

This meeting will take place virtually via Zoom.

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Public Hearing Notice: Durham City Council - October 18, 2021 at 7 p.m.

Monday, October 18, 2021

Public hearings will be held to discuss the following: City Council salary adjustments; Financing and refinancing of retirement facilities with the proceeds of tax-exempt bonds.

Public Participation

The meeting will be held virtually and can be accessed online using the Zoom virtual meeting platform. 


Budget & Management Services Department

#14970 - Public Hearing on City Council Salary Adjustments

A public hearing to receive comments on the proposed City Council salary adjustments.

Contact Information

For information about this hearing, contact John Allore, Interim Director of Budget and Management Services, by email or call 919-560-4111 ext. 20292.


Finance Department

#14951 - Public Hearing on Financing and Refinancing of Retirement Facilities with the Proceeds of Tax-exempt Bonds

Notice of a public hearing regarding the financing and refinancing of retirement facilities with the proceeds of tax-exempt bonds to be issued by the public finance authority on behalf of the United Methodist Retirement Homes, Incorporated.

Notice is hereby given that on October 18, 2021, a public hearing as required by Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), will be held by the City Council of the City of Durham, North Carolina (the “City Council”) with respect to the proposed issuance by the Public Finance Authority (the “Authority”) of its Retirement Facilities Revenue Bonds (The United Methodist Retirement Homes) (the “2021 Bonds”).  The maximum principal amount of 2021 Bonds to be issued is $60,000,000.  The hearing will commence at 7:00 p.m. or as soon thereafter as the matter can be heard, and will be held remotely via the Zoom platform and broadcast live for public viewing on the City’s website, Facebook, Twitter, YouTube channel, and on Durham Television Network.  Information regarding joining the meeting and commenting thereon can be found at https://durhamnc.gov/3012/Public-Hearings.  In addition, those wishing to participate may also call toll-free at 1-866-506-1420 (Passcode: 7043778393).

The 2021 Bonds are expected to be issued pursuant to Section 66.0304 of the Wisconsin Statutes, as amended, by the Authority, a commission organized under and pursuant to the provisions of Sections 66.0301, 66.0303 and 66.0304 of the Wisconsin Statutes, as amended. The proceeds from the sale of the 2021 Bonds will be loaned to The United Methodist Retirement Homes, Incorporated, a nonprofit corporation and organization described in Section 501(c)(3) of the Code (the “Borrower”).  The proceeds of the 2021 Bonds, which 2021 Bonds shall constitute “qualified 501(c)(3) bonds” within the meaning of Section 145(a) of the Code, will be used by the Borrower to (a) refund in advance of their maturity the Borrower’s obligations with respect to (i) a portion of the North Carolina Medical Care Commission’s (the “Commission”) Retirement Facilities First Mortgage Revenue Bonds (The United Methodist Retirement Homes), Series 2017B (the “2017B Bonds”) and (ii) a portion of the Commission’s Retirement Facilities First Mortgage Revenue Refunding Bonds (The United Methodist Retirement Homes), Series 2016A (the “2016A Bonds”); (b) finance the Current Project (as defined below); (c) fund a portion of interest accruing on the 2021 Bonds and a debt service reserve fund, as necessary, and (d) finance certain issuance costs to be incurred in connection with the 2021 Bonds.

The Current Project consists of acquiring, improving, constructing and equipping facilities at the Borrower’s continuing care retirement community known as Croasdaile Village, which is located at 2600 Croasdaile Farm Parkway, Durham, North Carolina (“Croasdaile Village”), including, without limitation, demolition of existing independent living units located in Heritage Hall and the construction and equipping of replacement independent living apartment facilities including 54 units, an office suite and commons areas.  The maximum principal amount of 2021 Bonds to be issued to finance the Current Project is $32,105,000.

The proceeds of the 2017B Bonds were used to 1) pay, or reimburse the Borrower for paying, a portion of the cost of acquiring, improving, constructing and equipping facilities at Croasdaile Village, including (a) constructing and equipping new independent living units, (b) constructing a new maintenance building, parking field and outdoor recreation field, (c) redeveloping the main entrance gate, (d) constructing and equipping a new two-story assisted living building and renovating current assisted living facilities, (e) constructing and equipping new physical therapy and occupational therapy suites, new auditorium, and new pool/aquatic center and (f) renovating the ambulatory clinic, kitchen/dining areas and various independent living common areas (collectively, the “2017 Project”); 2) pay a portion of the interest accruing on the 2017B Bonds and 3) pay certain expenses incurred in connection with the issuance of the 2017B Bonds by the Commission.

The proceeds of the 2016A Bonds were used to 1) refund the Commission’s Retirement Facilities First Mortgage Revenue Bonds (The United Methodist Retirement Homes Project), Series 2005A (the “2005A Bonds”), 2) refund the Commission’s Retirement Facilities First Mortgage Revenue Refunding Bonds (The United Methodist Retirement Homes Project), Series 2005C (the “2005C Bonds”), and 3) pay certain expenses incurred in connection with the issuance of the 2016A Bonds by the Commission.

The proceeds of the 2005A Bonds were used, together with other funds, to 1) pay a portion of the cost of the 2005 Project described below, 2) pay a portion of the interest on the 2005A Bonds, 3) fund a debt service reserve fund, and 4) pay certain expenses incurred in connection with the issuance of the 2005A Bonds by the Commission.  The proceeds of the 2005C Bonds were used, together with other funds, to 1) refund the Commission’s Variable Rate Demand Retirement Facilities Revenue Bonds (The United Methodist Retirement Homes 2000 Project) Series A (the “2000 Bonds”), 2) fund a debt service reserve fund, and 3) pay certain expenses incurred in connection with the issuance of the 2005C Bonds by the Commission.  The 2005 Project consisted of improvements to Croasdaile Village, including (a) the construction and equipping of new independent living units, (b) the renovation and expansion of dining areas, (c) the renovation and expansion of kitchen facilities and equipment, (d) the construction of a new library and conversion of the then existing library to a resident activity room, (e) the expansion of administrative areas, (f) the construction of a new laundry facility, (g) other facility and land improvements, and (h) certain marketing and other initial operating expenses (collectively, the “2005 Project”).

The proceeds of the 2000 Bonds were used for the purpose of 1) refunding a portion of outstanding taxable indebtedness, the proceeds of which were used to finance or refinance the costs of acquiring, constructing, equipping and furnishing Croasdaile Village (the “2000 Project” and, collectively with the 2005 Project, the 2017 Project and the Current Project, the “Project”), 2) paying a portion of the interest on, and letter of credit fees for, the 2000 Bonds, and 3) paying certain expenses incurred in connection with the issuance of the 2000 Bonds by the Commission. 

All of the facilities and equipment to be financed, refinanced or reimbursed with the proceeds of the 2021 Bonds are or will be owned and operated by the Borrower and are located at 2600 Croasdaile Farm Parkway in the City of Durham, North Carolina. 

The 2021 Bonds will be special limited obligations of the Authority payable solely from the loan repayments to be made by the Borrower to the Authority, and certain funds and accounts established by the bond documents for the 2021 Bonds.

NEITHER THE CITY OF DURHAM, NORTH CAROLINA, NOR THE STATE OF NORTH CAROLINA HAS ANY RESPONSIBILITY FOR THE PAYMENT OF THE PRINCIPAL OF, OR INTEREST ON, THE 2021 BONDS OR FOR ANY COSTS INCURRED BY THE BORROWER WITH RESPECT TO THE 2021 BOND OR THE PROJECTS TO BE FINANCED OR REFINANCED.  NEITHER THE CITY OF DURHAM, NORTH CAROLINA NOR THE STATE OF NORTH CAROLINA PLEDGES THEIR TAXING POWER OR REVENUES FOR THE 2021 BONDS.  THE CITY OF DURHAM, NORTH CAROLINA WILL HAVE NO RESPONSIBILITY WHATSOEVER FOR THE 2021 BONDS.

The public hearing will provide an opportunity for all interested persons to express their views, both orally and in writing, on the proposed issuance of the 2021 Bonds and the projects to be financed and refinanced. Any person interested in the issuance of the 2021 Bonds and the projects to be financed and refinanced may appear and be heard or submit written comments. Any person wishing to submit written comments regarding the proposed issuance of the 2021 Bonds and the projects to be financed and refinanced should do so prior to October 19, 2021, by mailing such written comments to the City Clerk’s Office, 101 City Hall Plaza Durham, North Carolina 27701.  This notice is given pursuant to the provisions of Section 147(f) of the Code, Section 66.0304(11)(a) of the Wisconsin Statutes and Section 4 of the Amended and Restated Joint Exercise of Powers Agreement Relating to the Authority. Additional information concerning the 2021 Bonds and the projects to be financed and refinanced may be obtained from Alice P. Adams, Esq., 101 N. Tryon Street, Suite 1900, Charlotte, NC 28246; Phone (704) 377-8393; Email Address: aadams@rbh.com

CITY OF DURHAM, NORTH CAROLINA

Contact Information

For information about this hearing, contact Emily Desiderio by email or call 919-560-4511.


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