Notice of public hearing - Jefferson's Ferry With Application

NOTICE IS HEREBY GIVEN that a public hearing pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”) will be held by the Town of Brookhaven Local Development Corporation (the “Issuer”) on the 17th day of June, 2020, at 9:30 a.m., local time, as described below, in connection with the following matters:

 

Active Retirement Community, Inc. d/b/a Jefferson’s Ferry, a New York not-for-profit corporation and an organization described in Section 501(c)(3) of the Code and exempt from federal income taxation pursuant to Section 501(a) of the Code (the “Institution”), has submitted a proposal to the Issuer, that the Issuer issue in one or more series as part of a plan of financing its Revenue Bonds, Series 2020 (Active Retirement Community, Inc. d/b/a Jefferson’s Ferry Project), as qualified 501(c)(3) bonds under Section 145 of the Code, in the aggregate principal amount presently expected to be $100,000,000 but not to exceed $125,000,000 (the “Series 2020 Bonds”), for the benefit of the Institution for the purpose of providing funds in an amount sufficient for:

 

(A) The financing or refinancing of the renovation, construction, and equipping of “Jefferson’s Ferry”, a New York State not-for-profit Continuing Care Retirement Community authorized under Article 46 of the New York Public Health Law, owned and operated by the Institution and located at One Jefferson Ferry Drive, South Setauket, New York 11720-2645 on an approximately 50-acre site (the “Land”), including, but not limited to: (i) the construction of a new, approximately 28,520 square foot building containing approximately twenty (20) assisted living memory care suites, (ii) the renovation of approximately 14,022 square feet of the existing approximately 46,267 square foot assisted living building, (iii) the construction of an approximately 4,917 square foot addition to, and the renovation of approximately 9,910 square feet of the existing approximately 35,626 square foot skilled nursing building, (iv) the construction of an approximately 22,802 square foot addition to, and the renovation of approximately 25,007 square feet of the existing 40,713 square foot community center, (v) the construction of an approximately 51,157 square foot addition to the existing 163,043 square foot independent living building located at the north side of the Facility (as defined below), (vi) the construction of an approximately 51,157 square foot addition to the existing 148,832 square foot independent living building located at the south side of the Facility, and (vii) the construction of a new, approximately 11,350 square foot independent living building to be located on the west side of the Facility, and (viii) the acquisition and installation of machinery and equipment in connection with the foregoing, for a total of approximately 169,903 square feet of new buildings and additions to existing buildings, and the renovation of approximately 48,939 square feet of space in the existing approximately 488,023 square foot continuing care retirement community for the benefit of eligible senior citizens, to consist (when completed) of approximately three-hundred twenty-one (321) independent living units (including two-hundred ninety-three (293) apartments and twenty-eight (28) cottages), sixty (60) assisted living apartments, sixty (60) skilled nursing facility beds, twenty (20) assisted living memory care suites, common areas, dining facilities, nurses’ stations, rehabilitation and treatment facilities, administrative offices and related infrastructure such as roads, sewers, utilities, parking lots, drainage areas, ponds and maintenance facilities (collectively, the “Facility”);

 

(B) the payment of all or a portion of the costs incidental to the issuance of the Series 2020 Bonds, including issuance costs of the Series 2020 Bonds, capitalized interest and any reserve funds as may be necessary to secure the Series 2020 Bonds ((A) and (B) are referred to collectively as, the “Project”).

 

 

The proceeds of the Series 2020 Bonds will be loaned by the Issuer to the Institution pursuant to the terms of a certain loan agreement (the “Loan Agreement”) between the Issuer and the Institution to pay the costs of the Project. The Institution will be initial owner and principal user of the Facility. The Series 2020 Bonds will be special obligations of the Issuer payable solely from loan payments made by the Institution to the Issuer pursuant to the Loan Agreement and certain other assets of the Institution pledged to the repayment of the Series 2020 Bonds. The Series 2020 Bonds shall not be a debt of the State of New York or any political subdivision thereof, including the Town of Brookhaven, and neither the State of New York nor any political subdivision thereof, including the Town of Brookhaven, shall be liable thereon.

 

In addition to the issuance of the Series 2020 Bonds, the Issuer contemplates that it will provide financial assistance to the Institution in connection with the Project in the form of exemptions from mortgage recording taxes in connection with the financing or subsequent refinancing of the Project, consistent with the policies of the Issuer, to be more particularly described in a Bond Resolution to be adopted by the Issuer prior to the issuance of the Series 2020 Bonds

 

Due to the Novel Coronavirus (COVID-19) Emergency, State and Federal bans on large meetings or gatherings and in accordance with Governor Cuomo’s Executive Order 202.1 issued on March 12, 2020, as amended by Executive Order 202.14, issued on April 7, 2020, suspending the Open Meetings Law, and Executive Order 202.15 issued on April 9, 2020, as extended by Executive Order 202.28 issued on May 7, 2020, permitting local governments to hold public hearings by telephone and video conference and/or similar device, the Issuer will hold a hearing remotely by telephone conference call on the proposed financing and transaction set forth above, at the date and time listed above. Interested members of the public are invited to participate in the conference call for the public hearing by dialing 1-877-870-5858 (Toll Free) and entering the following password: 3500483#. In order to facilitate registration of participants, it is requested that members of the public call the above number no later than five minutes before start time. If a member of the public is having difficulty accessing the telephone conference call, they should contact the LDC at (631) 451-6563 for assistance.

 

A representative of the Issuer will, at the above-stated time and place, hear and accept written comments from all persons with views in favor of or opposed to either the issuance of the Series 2020 Bonds, the granting of other financial assistance contemplated by the Issuer or the location or nature of the Project. For those members of the public desiring to review the application for financial assistance before the date of the hearing, copies of these materials will be made available at www.brookhavenldc.org. starting on or about June 10, 2020 at 9:00 a.m. Persons desiring to make a brief statement during the conference call regarding the proposed transactions should give prior notice to the Issuer by contacting The Town of Brookhaven Local Development Corporation no later than 5 p.m. the day before the hearing. Such notice of intention to make a brief statement and any written comments may be submitted to the Issuer at the following email addresses: BrookhavenIda@brookhavenny.gov and jlinse@brookhavenny.gov

 

Minutes of the hearing will be made available to Hon. Edward P. Romaine, Supervisor of the Town of Brookhaven. Approval of the issuance of the Series 2020 Bonds by the Town of Brookhaven, through Hon. Edward P. Romaine, is necessary in order for the interest on the Series 2020 Bonds to be excluded from gross income for federal income tax purposes.

 

Dated: June 9, 2020

TOWN OF BROOKHAVEN LOCAL DEVELOPMENT CORPORATION

By: Lisa MG Mulligan

Title: Chief Executive Officer