Tompkins County
New York

Resolution
2017-220

Resolution of the Tompkins County Legislature, as the Elected Legislative Body of Tompkins County, New York, in Accordance with Section 147(f) of the Internal Revenue Code of 1986, as Amended (the "Code"), Approving the Issuance by the Tompkins County Development Corporation of up to $13,500,000 Aggregate Principal Amount Tax-Exempt Revenue Bonds (Ithacare Center Service Company, Inc. [dba Longview]), Series 2017

Information

Department:Tompkins County Area DevelopmentSponsors:
Category:FiscalFunctions:Industrial Development Agency

Resolution/Document Body

              WHEREAS, the Tompkins County Legislature (the "Legislature"), as the elected legislative body of Tompkins County, New York (the "County"), has been advised by the Tompkins County Development Corporation (the "Issuer") that, in order to assist in the financing of a certain Project (as defined below) for the benefit of Ithacare Center Service Company, Inc.  (the "Company), a not-for-profit corporation and organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), the Issuer proposes to issue, contingent upon the adoption of this Resolution, its Tax-Exempt Revenue Bonds (Ithacare Center Service Company, Inc. Project), Series 2017 in one or more series, in an aggregate principal amount not to exceed $13,500,000 (the "Bonds"), and

 

WHEREAS, the project (the "Project") shall consist principally of financing all or a portion of the cost of:

 

(1) the refinancing of the outstanding principal amount $14,600,000 Tompkins County Industrial Development Agency (the "IDA") Variable Rate Demand Civic Facility Revenue Bonds (Ithacare Center Service Company, Inc. Project), Series 2008 (the "Series 2008 Bonds"), the proceeds of which were used to provide funds to the Company to undertake a certain project (the "Project"), consisting of: (A) the refunding of the IDA’s $11,350,000 original principal amount Civic Facility Revenue Bonds (FHA Insured Mortgage-Ithacare Center Service Company, Inc. Project), Series 1997 (the "1997 Bonds"), the proceeds of which were used to finance (i) the acquisition, construction, and equipping on approximately 28 acres of land located at 1 Bella Vista Drive (also known as 980 Danby Road), in the Town of Ithaca, Tompkins County, New York (the "Land") of an approximately 129,700 square-foot licensed adult home and HUD-approved assisted-living facility (the "Existing Improvements") and (ii) the acquisition and installation in and around the Existing Improvements of certain items of machinery, equipment, furniture, and other tangible personal property (the "Existing Equipment"); (B) the acquisition, construction, and equipping on the Land of an approximately 24,700 square-foot expansion to the Existing Improvements to house an additional thirty-two (32) residential care beds and related improvements (the "Improvements"); (C) the acquisition and installation in and around the Existing Improvements and Improvements of certain items of machinery, equipment, furniture, and other tangible personal property (the "Equipment"; and, collectively with the Land, the Existing Improvements and the Improvements, the "Facility"); (D) the funding of a debt service reserve fund to secure the 2008 Bonds; (E) the payment of certain costs and expenses incidental to the issuance of the 2008 Bonds (the costs associated with items (A) through (E) above being hereinafter collectively referred to as the "2008 Project Costs"); and (F) the lease (with an obligation to purchase) or sale of the facilities financed with the 2008 Bonds to the Company; and

 

(2) the  funding of a debt service reserve fund, if any and certain costs incidental to the issuance of the Bonds (the costs associated with items (A) and (B) being hereinafter collectively referred to as the "Project Costs"), and

 

WHEREAS, the Issuer proposes to assist in the financing of the Project by issuing the Bonds to (i) pay all or a substantial portion of the cost of financing the Project, and (ii) pay reserves and costs incidental to the issuance of the Bonds, and

 

              WHEREAS, pursuant to Section 147(f) of the Code, interest on the Bonds will not be excluded from gross income for Federal income tax purposes unless the issuance of the Bonds is approved by the Legislature after a public hearing to consider both the issuance of the Bonds and the nature and location of the facilities financed therewith has been conducted following reasonable public notice, and

 

WHEREAS, Wednesday, November 1, 2017, at the South Hill Business Campus, 950 Danby Road, Ithaca, New York 14850, the Issuer held such a public hearing upon proper notice in compliance with Section 147(f) of the Code, and

 

WHEREAS, to aid the Legislature in its deliberations, the Issuer has made available to the members of the Legislature prior to this meeting (a) the Company's application to the Issuer for financial assistance; (b) the notice of public hearing published by the Issuer in The Ithaca Journal on October 17, 2017, along with the affidavit of publication of such newspaper; and (c) the minutes of such public hearing held on November 1, 2017, and

 

WHEREAS, on November 2, 2017, the Tompkins County Planning, Development and Environmental Quality Committee recommended that the Legislature, as the "applicable elected representative" of Tompkins County, New York, within the meaning of Section 147(f)(2)(E) of the Code, approve the issuance of the Bonds, and

 

WHEREAS, the Legislature, after due consideration of the foregoing, as the "applicable elected representative" of Tompkins County, New York, within the meaning of Section 147(f)(2)(E) of the Code, desires to approve the issuance of the Bonds, provided the principal, premium, if any, and interest on the Bonds shall be special obligations of the Issuer and shall never be a debt of the State of New York (the "State") or any political subdivision thereof, including without limitation the County, and neither the State nor any political subdivision thereof, including without limitation the County, shall be liable thereon, now therefore be it

 

RESOLVED, on recommendation of the Planning, Development, and Environmental Quality Committee, and by the County Legislature of Tompkins County, That:

 

Section 1.              For the purpose of satisfying the approval requirement of Section 147(f) of the Code, on the prior recommendation of the Tompkins County Planning, Development and Environmental Quality Committee, the Legislature hereby gives its approval of the issuance by the Issuer of the Bonds and related acts to be taken by the Issuer as part of the Project, provided that the Bonds, and the premium (if any) and interest thereon, shall be special obligations of the Issuer and shall never be a debt of the State or any political subdivision thereof, including without limitation the County, and neither the State nor any political subdivision thereof, including without limitation the County, shall be liable thereon.  This approval is given pursuant to Section 147(f) of the Code for the sole purpose of qualifying the interest payable on the Bonds for exclusion from gross income for federal income tax purposes pursuant to the provisions of Sections 103 and 141-150 of the Code.

 

Section 2.              This Resolution shall be deemed to be made for the benefit of the holders of the Bonds.

 

Section 3.              This Resolution shall take effect immediately.

SEQR ACTION:  TYPE II-20

Meeting History

Nov 2, 2017 3:00 PM  Planning, Development, and Environmental Quality Committee Regular Meeting
draft Draft
RESULT:RECOMMENDED [UNANIMOUS]
MOVER:Michael Sigler, Member
SECONDER:David McKenna, Member
AYES:Martha Robertson, Dooley Kiefer, Michael Sigler, David McKenna, Carol Chock
Nov 9, 2017 5:30 PM Media Tompkins County Legislature Regular Meeting
draft Draft

This resolution was adopted by a roll call vote.

RESULT:ADOPTED [UNANIMOUS]
MOVER:Martha Robertson, Member
SECONDER:Anna Kelles, Member
AYES:Will Burbank, Carol Chock, James Dennis, Rich John, Anna Kelles, Dooley Kiefer, Daniel Klein, Michael Lane, Leslyn McBean-Clairborne, Martha Robertson, David McKenna, Glenn Morey, Shawna Black
EXCUSED:Michael Sigler